AXS Sustainable Income Fund
Class I: AXSKX
A diversified high yield strategy that invests primarily in U.S. dollar denominated, below-investment-grade corporate bonds utilizing an investment process based on fundamental analysis that integrates environmental, social and governance (“ESG”) factors.
Integrates sustainability factors to invest in companies that aim to minimize environmental degradation and controversial activities.
Proven, women-led institutional manager that offers specialized ESG-focused high yield income strategies.
Alternative source of income with the potential to preserve principal and lower volatility over a full market cycle.
Inception Date: 2/1/2013
Distribution Frequency: Annual
Management Fees: 0.70%
Total Operating Expense: 1.01%
Net Expense**: 0.99%
** The Fund’s investment advisor has contractually agreed to reduce its fees and/or absorb expenses of the Fund, to ensure that the Fund’s total annual operating expenses do not exceed on an annual basis 0.99% of the Fund’s average daily net assets, effective until January 31, 2022. Please review the Fund’s Prospectus or Summary Prospectus for additional expense detail.
SKY Harbor Capital Management is an independent SEC-registered investment management firm focused on the management of portfolios of U.S. high yield bonds and leveraged loans for global institutional investors and private wealth advisors. The firm’s senior team has invested together continuously for nearly three decades, consistently applying their investment process through diverse market cycles.
As one of the earliest high yield asset managers to adopt environmental, social and governance (ESG) factors into its analysis, SKY Harbor has years of expertise in identifying business models that are sustainable and resilient. The firm believes in incorporating not only sustainability risks but also sustainability values. SKY Harbor is a member of the SASB Alliance (Sustainable Accounting Standards Board) and a signatory to the following global initiatives dedicated to corporate sustainability:
- Principles for Responsible Investment (PRI)
- UN Global Compact
- Thirty Percent Coalition
- Task Force on Climate Related Financial Disclosure
David Kinsley, CFA
Senior Portfolio Manager and
Head of Investing
Ryan Carrington, CFA
Senior Portfolio Manager
Michael Salice, CFA
Senior Portfolio Manager and
Director of Investment Strategy
* AXS Sustainable Income Fund was named a Finalist in the Best Socially Responsible Investing (SRI) / Impact Investing category for the 2021 WealthManagement.com Industry Awards, which recognize outstanding organizations that support financial advisor success. A panel of independent judges composed of industry leaders selected the winners from among 900 entries from 340 companies. The honorees in each category were chosen based on quantitative measures of their initiatives, such as scope, scale, adoption and features, as well as qualitative measures, such as innovation, creativity and new distribution methods.
There is no assurance that the Fund will achieve its investment objective.
The market price of a security may decline due to general market conditions that are not specifically related to a particular company, changes in the general outlook for corporate earnings, changes in interest or currency rates, or adverse investor sentiment. The prices of fixed income securities respond to economic developments as well as to changes in an issuer’s credit rating or market perceptions about the creditworthiness of an issuer. High yield bonds are debt securities rated below investment grade and are speculative, involve greater risks of default, downgrade or price declines and are more volatile and tend to be less liquid than investment-grade securities. If an issuer of a debt security held by the Fund defaults or is downgraded, or if the value of the assets underlying a security declines, the value of the Fund’s portfolio will typically decline. Generally fixed income securities decrease in value if interest rates rise and increase in value if interest rates fall, with longer-term securities being more sensitive than shorter-term securities. While the Sub-Adviser believes that the integration of ESG analysis as part of the investment process contributes to its risk management approach, the Fund’s consideration of ESG criteria in making its investment decisions may affect the Fund’s exposure to risks associated with certain issuers, industries and sectors, which may impact the Fund’s investment performance.