Axiom European Financial Debt Fund ‘s board has been reviewing the options for the fund’s future. It believes that the regulatory transition that the investment objective was designed to exploit since the fund’s IPO is now drawing to a close. The board is also conscious of the fund’s persistent discount and the limited liquidity in its shares. This despite a decent NAV performance track record; in the 3- and 5-year periods to 15 August 2022, the fund was by a substantial margin the best in the AIC Debt – Loans & Bonds sector at 6.85% p.a. and 5.23% p.a. respectively.
Consequently, and in the light of feedback from a significant proportion of shareholders, the board has determined that it would not be in shareholders’ best interests to continue the company in its present form.
The board was encouraged by the positive feedback it received from shareholders in respect of the strategy and the potential for it to be evolved to provide attractive returns into the future. The board also notes that the investment manager, Axiom Alternative Investments SARL already manages a range of other funds which follow similar strategies with success and which have seen substantial inflows of investor capital over the past two or three years.
Accordingly, due to the challenges noted above, the Board intends to offer shareholders the option of receiving cash at NAV (less costs, including any portfolio realisation expenses) for some or all of their shareholding and/or to continue their investment in an open-ended vehicle managed by Axiom. The existing company will be liquidated.
The board, Axiom and the broker, Winterflood Securities Limited are working on formal proposals and will make a further announcement with details in due course. The board’s aim is for the proposals to be put to shareholders early in 2023 and, assuming approval is received, for the transaction to be completed as soon as reasonably practicable thereafter.
AXI : Time’s up for Axiom European Financial Debt