TICKER | CUSIP AXSIX | 05465G101 AXONIC STRATEGIC INCOME FUND managed by Axonic Capital LCC

Axonic Capital Overview

BUSINESS OUR COMPETITIVE EDGE Axonic Capital (“Axonic”) is an independent financial Axonic Capital’s investment philosophy centers on services firm headquartered in New York City offering asset rigorous . Investment decisions management services across structured credit, systematic aremadebasedontheprofileoffuturecashflows fixed income and commercial lending. Our business model is associated with asset-backed securities. The Firm’s providing opportunistic investment solutions from an belief is that the most informed, sophisticated and experienced team with expertise in creating unique knowledgeable investors have an advantage over other advantages through sourcing and asset allocation. market participants. The Firm seeks to constantly Founded in 20101, Axonic manages approximately $3.92 create or improve an edge over other market billion. participants through a comprehensive understanding of security structure and underlying collateral Axonic invests in structured credit instruments, including performance. commercial mortgage-backed securities and loans, non- agency residential mortgage-backed securities, agency Axonic’s investment professionals are experienced in credit risk transfers, private debt, mortgage and real estate- many facets of the market, including sourcing, related credit and equities, and various single-name and structuring and trading of structured credit securities. index credit default swaps. Axonic believes that integrating its extensive networks Axonic strives to protect and compound client capital into individual investment processes creates a through superior investment due diligence, robust use of significant investment edge. technology analytics and opportunistic themes.

History of Axonic Capital

Axonic has a decade of structured credit, fixed income and commercial real estate experience offered through a variety of investment vehicles.

Axonic founded in 2010 Launched ABS with ~110m1 business Split Level Launched the LLC founded Launched CMBS Alternative Income March 2009; business Fund (AAIDX), a predecessor AXSIX surpasses closed-end interval to Axonic $900mm in fund Capital LLC AUM

2009–2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Axonic began Launched Special Launched Axonic operations in Firm reached Firm reached Strategic Income $2B in AUM Opportunities SBL January 2011 $1B in AUM Strategy Fund (AXSIX)

Launched RMBS business

1. Axonic began trading in 2009 through Split Level LLC, Axonic’ s predecessor. The Firm officially began operations as Axonic Capital in January 2011. 2. Estimated as of March 31, 2021 3. As of December 31, 2010

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Investment Process The primary objective of the Axonic Strategic Income Fund is to seek to maximize total return, through a combination of current income and capital appreciation.

Idea Security Asset Portfolio Risk Asset Generation Analysis Allocation Construction Management Management and Sourcing

Surveillance & Fundamental Compatible Trading & Repeatable Risk Budget Re- & Data Driven Cash Flow Hedging Themes Framework Underwriting

Advantages of Investing in Structured Credit

. The Axonic Strategic Income Fund (AXSIX) can allow individual investors to pursue an institutional- style investment in alternative assets that may help to build a diversified portfolio. We believe by investing in a range of non-correlated assets, an investor can generate higher potential income and total returns. . Investing in structured credit can provide individual investors access to differentiated, cash-flow generating assets which may have risk-mitigation qualities to many underlying macro-economic factors. . Axonic has an investment process which is centered around sound, fundamental credit underwriting. Axonic targets an interest-rate neutral portfolio by placing an emphasis on Libor-based, floating-rate securities.

Market Opportunity

. Axonic’s core principle is the fundamental analysis of cash flows of the underlying assets. We are particularly well suited to discover medium term duration and lower risk sources of return . Recent market volatility related to the COVID-19 virus has led to indiscriminate selling across credit markets. The selling has been driven by redemptions and margin calls for levered vehicles such as mortgage REITs and mutual funds. . As a result of selling pressures, we believe residential mortgage assets, commercial mortgage assets and asset backed securities offer a compelling risk return profile as compared to other areas of the credit market. . We believe the below market dislocations are offering compelling yield profiles given their current discount to par prices.

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Organizational Structure

Clay DeGiacinto Managing Partner Chief Investment Officer

Jamshed Engineer Matthew Weinstein Peter Carey Partner Partner Partner Co-Head of Credit Co-Head of Credit Head of Business Development

Investment Teams Business Development / Investor Relations Operations

Sterling Donnelly Chris Hughes Credit Investment Team Managing Director Chief Operations Officer Joel Maizel Brendan McCormick Jonathan Salter Managing Director Anthony Faltorusso Portfolio Manager Portfolio Manager Travis Printz Director of Portfolio Financing & Tyler Kimball Nick Pajwani Managing Director Treasury Director Portfolio Manager Melissa Parvis Eric Vaughn Michael Constas Simon Sominsky Managing Director Director Director Portfolio Manager Cameron Kirby Peter Weithers Ben Bernstein Eric Kaufman Managing Director Associate Director Director Robert Duggan Thomas Tubridy Jack O’Brien Frank Garcia Managing Director Analyst Associate Director Christopher Greenwell Camille Corum Stéphane Durand Gary Yu Managing Director Executive Assistant Associate Director Dalton Hernandez Pravesh Subramanian Erik Nygaard2 Director Director of Software Engineering Associate General Annamarie Gonzalez Anand Kochar Counsel Associate Senior Software Developer Systematic Investment Team Hannah Holliday Aqeel Ahmad Assistant IT Support Specialist Arnaud De Bevy Deniz Cicek Lauren Pizzi Principal Portfolio Manager Office Manager Siré Sidibé Office Administration

Finance Risk Legal / Compliance

John Kelly Lu Chang Joseph Grogan Chief Financial Officer Chief Risk Officer Chief Compliance Officer Jess Saypoff Anna Zhang, CPA Michelle Cheng General Counsel Controller Risk Manager Erik Nygaard2 Amanda Favorite, CPA Associate General Counsel Controller Konrad Szymala, CPA Controller Human Resources Paul Cheung Director of Tax Meredith Infurchia Director of Human Capital Caroline Ng Assistant Controller Robert DeMasi Associate

1.As of March 31, 2021. 2.Erik Nygaard has a dual role working with the CRE investment team and General Counsel

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Management Team Clayton DeGiacinto Managing Partner, Chief Investment Officer Prior to forming Axonic in 2010, Mr. DeGiacinto was responsible for building out the mortgage investment platform at Tower Research Capital LLC and was the Senior Portfolio Manager for Split Level LLC, the predecessor fund to the Axonic Credit Opportunities Funds. He previously led a mortgage trading desk in the Fixed Income, Currency and Commodities division at Goldman Sachs & Co. Mr. DeGiacinto’s duties included the and retention of bonds backed by adjustable- rate and negatively amortizing residential mortgages. He was also responsible for running the RMBS credit book for all prime, alt-A and negatively amortizing structures. Mr. DeGiacinto previously served as a Captain in the U.S. Army in the 25th Infantry Division (Hawaii) after completing the U.S. Army Ranger School, Airborne School and Air Assault Course. He is a graduate of the United States Military Academy at West Point and holds an M.B.A. from the Wharton School at the University of Pennsylvania.

Jamshed Engineer Partner, Co-Head of Credit Mr. Engineer has been with Axonic since inception and leads our residential and asset backed securities strategies. Prior to joining Axonic, Mr. Engineer worked at Tower Research Capital as Vice President of Mortgage Trading. Prior to Tower, he worked in the Fixed Income, Currency and Commodities group at Goldman Sachs & Co. with responsibilities including structuring, valuing and advising on diverse securitization products for both principal and third party transactions. Prior to Goldman, Mr. Engineer was at KPMG where he structured various securitization transactions in the structured products group. Mr. Engineer was previously employed at Tata TD Waterhouse and Tata Finance in Mumbai. Mr. Engineer received his Bachelor of Commerce in Finance and Accounting from University of Mumbai and holds an M.B.A. in Finance from the University of Southern California.

Matthew Weinstein Partner, Co-Head of Credit Mr. Weinstein joined Axonic in 2012 and oversees the Firm’s CRE and CMBS investment teams. Mr. Weinstein is also the head of the CRE investment committee. Prior to joining the Firm, Mr. Weinstein was a Vice President at Macquarie Capital where he managed a Commercial Mortgage Backed Securities (CMBS) principal investment strategy from 2010 through 2012. From 2003 to 2008, he was an Associate Director in the CMBS group at Bear Stearns & Co. Mr. Weinstein received his MBA in Finance at the New York University Stern School of Business and graduated from Cornell University with a BS in Industrial Labor Relations.

Peter Carey Head of Business Development Mr. Carey joined Axonic in May 2018 to lead the firm’s Business Development team. Mr. Carey has over 17 years of experience in the industry and joined Axonic from Archview Investment Group, where he served as Head of Business Development, leading the firm’s institutional marketing efforts. Prior to joining Archview Mr. Carey was a Managing Director at SkyBridge Capital where he led the firm’s fund solutions business. Prior to SkyBridge, Mr. Carey was a Senior Investment Officer and Director of Strategies at the New York State Common Retirement Fund, where he led the successful restructuring of the Fund's $5 billion portfolio. Earlier in his career Mr. Carey worked on the Institutional Fixed Income sales desk at Bear Stearns. Mr. Carey is a graduate of the United States Military Academy at West Point and served as an Infantry officer in the US Army. He holds an MBA in Finance from the University of Southern California.

Axonic Capital Attn: Business Development and Investor Relations 520 Madison Avenue, 42nd Floor New York, NY 10022

[email protected] Phone (212) 259-0430

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Disclosures An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call (212) 259-0430 or download the file from www.AxonicFunds.com. Please read the prospectus carefully before you invest.

ALPS Distributors, Inc. is the distributor of the Axonic Strategic Income Fund (ALPS Distributors, Inc. 1290 Broadway, Suite 1000, Denver, CO 80203). Axonic Capital LLC and ALPS are not affiliated.

Risk Factors:

Residential Mortgage-Backed Securities Risks Collateral underlying RMBS generally consists of mortgage loans secured by residential real estate or other RMBS. In addition to the risks associated with other asset-backed securities as described above, mortgage-backed securities are subject to the general risks associated with investing in real estate securities; that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In addition, the rate of prepayments on underlying mortgages affects the price and volatility of a mortgage-backed security and may have the effect of shortening or extending the effective maturity beyond what was anticipated.

REIT Risk Investments in REITS and in securities of other companies principally engaged in the real estate industry subject the Fund to, among other things, risks similar to those of direct investments in real estate and the real estate industry in general. These include risks related to general and local economic conditions, possible lack of availability of financing and changes in interest rates or property values.

Commercial Mortgage-Backed Securities Risks Collateral underlying CMBS generally consists of mortgage loans secured by income-producing property or other CMBS. Performance of a commercial mortgage loan and the market value of a commercial property both depend primarily on the net income generated by the underlying mortgaged property and performance of the related business (including property management). As a result, income generation will affect both the likelihood of default and the severity of losses with respect to a commercial mortgage loan. Issues associated with managing a commercial property may impact both performance and market value. The value of commercial real estate is also subject to limitations on remedies imposed by bankruptcy laws and state laws regarding foreclosure and rights of redemption. In addition, the unavailability of real estate financing may lead to default of mortgage loans on commercial properties, and there is no recourse against the borrower’s assets other than the collateral except in the case of borrowers acting fraudulently or otherwise illegally. As a result, payments on the CMBS may be adversely affected in such cases.

Derivatives Risks Credit derivatives are contracts that transfer price, spread and/or default risks of debt and other instruments from one party to another. Such instruments may be illiquid or less liquid, volatile, difficult to price and leveraged so that small changes in the value of the underlying instruments may produce disproportionate losses to the Fund. In addition, the Fund is subject to the credit risk associated with the underlying assets of a derivatives contract as well as the risk of counterparty default. As a result, the Fund’s use of derivatives could result in losses, which could be significant.

The Fund is classified as “non-diversified” under the 1940 Act. A non-diversified fund is not limited by the 1940 Act with regard to the percentage of its assets that may be invested in the securities of a single issuer. Consequently, the securities of a particular issuer or a small number of issuers may constitute a significant portion of the Fund’s investment portfolio. This may adversely affect the Fund’s performance or subjectthe Fund’s NAV to greater volatility than that experienced by more diversified investment companies.

Definitions:

Asset Backed Securities are a financial security collateralized by a pool of assets such as loans, leases, credit card debt, royalties or receivables. Cash-Flow Generating Assets typically return either a principal and/or interest component on a regular, consistent basis. Commercial Mortgage-Backed Securities (CMBS) are secured by mortgages on commercial properties rather than on residential real estate. Floating Rate Securities are fixed income instruments which have a coupon that is calculated from a floating-rate index such as LIBOR. Libor-based securities have a coupon based on the London Inter-bank Offered Rate (LIBOR) . Mortgage-backed securities (MBS) are bonds which are secured by real estate loans. They are created when a number of these loans, usually with similar characteristics, are pooled together and redistributed into tranches. Net Asset Value (NAV) represents the net value of an entity and is calculated as the total value of the entity’s assets minus the total value of its liabilities. Non-Correlated Assets perform irrespective to changes in another market (i.e. the S&P500); the price movement in one asset has no effect on the price movement in another. Public Offering Price (POP) is the price at which new issues of stock are offered to the public by an underwriter. Residential Mortgage-Backed Securities (RMBS) are a form of debt-based securities which are backed by the principal and interest payments on loans for residences. Structured Credit applies broadly to the asset class associated with pooling debt obligations into channels which can then be distributed to different risk appetites.

AXS000149

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