Why Calamos Aksia's CAPIX Is a Rare Gem in Today's Yield-Starved Market

The search for yield in today's market is like a never-ending scavenger hunt. Bond yields are paltry, stocks are volatile, and traditional fixed-income alternatives are stretched to their limits. Enter the Calamos Aksia Alternative Credit and Income Fund (CAPIX), a rare hybrid that blends the high returns of private credit with the liquidity advantages of an interval fund. Let's dissect how this fund stands out—and why it's a must-consider for investors seeking a better risk-adjusted return in a world starved of yield.

The Liquidity-Limited World of Private Credit—And How CAPIX Bypasses It

Private credit has long been the domain of institutional investors and the ultra-wealthy. Why? Because it's locked up in funds with multi-year lock-ups, minimum investments in the millions, and zero liquidity. But CAPIX flips the script.

As an interval fund, it allows daily purchases with a minimum of $2,500 (for retail investors) and $1 million for institutional shares. Liquidity is provided through quarterly redemptions, with at least 5% of outstanding shares repurchased each quarter—and up to 25% if demand permits. This structure offers far more flexibility than traditional private credit funds, which often lock capital for 10+ years.

The Private Credit Portfolio: Diversified, Senior, and Floating-Rate

CAPIX's edge isn't just its structure—it's the quality of its private credit exposure. The portfolio holds 148 loans across 38 industries, sourced through 80 partnerships. Here's why that matters:

• 90% first-liens: Seniority in case of default reduces risk.
• 91% floating-rate loans: Tied to benchmarks like SOFR, these reset with rising rates, ensuring income stays high in a “higher-for-longer” environment.
• Average EBITDA of $133.5M per borrower: Focus on mid-to-large companies with stable cash flows.

The fund's average loan-to-value ratio of 43% leaves ample collateral cushion, while its 4.46-year average maturity and 0.24-year duration minimize interest rate sensitivity. This isn't a bet on risky startups—it's a portfolio of senior, secured loans with real assets backing them.

Outperforming the Benchmark—and the Competition

CAPIX's 11.93% return since its June 2023 inception and 11.62% 1-year return (as of May 2025) beat its benchmark, the Morningstar LSTA US Leveraged Loan Index, which lagged with 9% annual returns in 2024. Even more telling: the fund's 5.23% YTD return as of July 2025 demonstrates resilience in volatile markets.

Why Diversification Matters—And How CAPIX Nails It

Most interval funds focus narrowly on U.S. direct lending. CAPIX goes further. Its strategy spans asset-backed finance, software, real estate, and professional services, reducing reliance on any single sector. The “Other” category (19.3% of the portfolio) includes niche exposures like hard assets and consumer finance—areas where Calamos' 50+ years of credit expertise shines.

This diversification isn't just about industries—it's about sub-strategies. Unlike peers stuck in a single credit niche, CAPIX's multi-faceted approach lowers correlation with public markets. For example, while high-yield bonds and equities swung wildly in Q2 2025, CAPIX's private loans remained stable, their valuations insulated from daily trading noise.

The Liquidity vs. Yield Tradeoff—Solved

The biggest selling point? CAPIX offers monthly distributions (reinvested by default) and avoids the liquidity black hole of traditional private credit. Investors can get their money out quarterly—no 10-year lock-up required.

Meanwhile, the fund's 10.7% yield (as of May 2025) blows past the 3-4% offered by 10-year Treasuries. For a risk-aware investor, this is a no-brainer: higher yield with less duration risk.

Risks? Sure. But They're Manageable

No investment is risk-free. CAPIX's 2.29% net expense ratio (Class I shares) is steep, though justified by its active management and private credit sourcing. There's also credit risk—defaults, though rare (historically 0.25% for similar loans), could rise if the economy tanks. Lastly, valuation lag (stale pricing) could affect NAV during sudden market shifts.

But here's the kicker: 90% first-liens and floating-rate structures mitigate credit and interest rate risk. And quarterly liquidity limits (5-25%) ensure the fund doesn't get overwhelmed by redemptions.

Investment Takeaway: Allocate 5-10% of Fixed Income to CAPIX

In a world where 10-year Treasuries yield 3.5% and high-yield bonds carry 5-6% risk-adjusted returns, CAPIX's 10.7% yield is a no-brainer for conservative growth.

Here's the plan:
1. Replace part of your bond portfolio with CAPIX—say, 5-10% of fixed income.
2. Hold it long-term; the quarterly liquidity ensures you won't be stuck.
3. Reinvest dividends unless you need cash—compounding those monthly distributions can turbocharge returns.

Final Verdict

CAPIX isn't just another interval fund—it's a masterclass in how to blend liquidity, diversification, and yield in a single package. With rates likely to stay elevated, its floating-rate loans and short duration are a hedge against further rate hikes. For investors tired of scraping the bottom of the yield barrel, this is the tool to own.

Disclosure: The analysis above is based on publicly available data and should not be considered financial advice. Always consult a professional before making investment decisions.