We are delighted to have appointed Edison as research provider for the Axiom European Financial Debt Fund (LSE: AXI).
You can find Edison‘s AXI research note via the following link: AXI – Capital opportunities
If you wish to receive future updates, please use the “Follow this company” button on the top right corner of the AXI Edison page.
AXI is a closed-end fund that invests in European financials. If a bank’s operations and equity position are robust enough to withstand shock asset losses, these instruments can be a way to earn a premium return. The fund seeks opportunities from regulatory changes that lead banks to redeem their legacy instruments that no longer have the same capital rating under stricter rules. This is a niche space where it is important to be familiar with not only the banks, but also regulation, local legislation and even politics.
The portfolio has a 5.9% running yield; 7.3% to perpetuity. The stock is trading on a 6.5% dividend, 9% below NAV as at the end of March, 2021.
AXI has returned; 6.1% YTD and 33.1% over 1 year, as at the end of March, 2021.
We remain available should you need further information.