Artemis’ Global High Yield Bond Fund adopts a more flexible investment policy
Our press enquiries team
Artemis Funds (Lux) – Global High Yield Bond is changing its name and broadening its investment policy.
From 28 April 2026, the fund will be known as Artemis Funds (Lux) – Global High Yield Opportunities, reflecting three changes to its investment policy. It will have the flexibility to: increase net exposure beyond 100%; express relative single-name views in a long/short bucket; and use credit options and credit total return swaps to express investment views.
The fund aims to increase the value of shareholders’ investments through a combination of income and capital growth.
Broadening the investment policy will allow the fund’s managers, David Ennett and Jack Holmes, to take advantage of ongoing tactical opportunities in the high-yield market. The managers believe this will allow them to offer investors greater opportunities for long-term outperformance, particularly through taking advantage of volatility and mispricing.
The changes will also help to further differentiate the fund from another strategy run by the two managers, Artemis Funds (Lux) – Short-Dated Global High Yield Bond. This fund aims to generate a return greater than the benchmark, after the deduction of costs and charges, over rolling three-year periods, through a combination of income and capital growth.
Fund manager David Ennett commented: “Having the ability to express long/short views in a market-neutral fashion within the fund will allow us to provide investors with another source of alpha from the efficiencies prevalent within the high-yield market. This can help provide a source of returns independent of the stage in the market cycle.”
Fund manager Jack Holmes added: “Having the ability to deviate from 100% net exposure provides us with greater ability to tailor our exposure through different stages of the cycle – moving away from being fully invested at times when valuations are less attractive and leaning into the market when valuations become more compelling.”
The Global High Yield Bond Fund was launched in November 2019 and has been managed by Ennett and Holmes since inception. Its benchmark1 – the ICE BofA Global High Yield Constrained index – remains the same following the changes.
Notes and references
1 The benchmark is a point of reference against which the performance of the fund may be measured. Management of the fund is not restricted by this benchmark. The deviation from the benchmark may be significant and the portfolio of the fund may at times bear little or no resemblance to its benchmark. The benchmark does not take into account environmental and/or social characteristics promoted by the fund.
Risks specific to Artemis Funds (Lux) – Global High Yield Opportunities
- Market volatility risk The value of the fund and any income from it can fall or rise because of movements in stockmarkets, currencies and interest rates, each of which can move irrationally and be affected unpredictably by diverse factors, including political and economic events.
- Currency hedging risk The fund hedges with the aim of protecting against unwanted changes in foreign exchange rates. The fund is still subject to market risks, may not be completely protected from all currency fluctuations and may not be fully hedged at all times. The transaction costs of hedging may also negatively impact the fund’s returns.
- Bond liquidity risk The fund holds bonds which could prove difficult to sell. As a result, the fund may have to lower the selling price, sell other investments or forego more appealing investment opportunities.
- Higher-yielding bonds risk The fund may invest in higher-yielding bonds, which may increase the risk to capital. Investing in these types of assets (which are also known as sub-investment grade bonds) can produce a higher yield but also brings an increased risk of default, which would affect the capital value of the fund.
- Credit risk Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.
- Derivatives risk The fund may invest in derivatives with the aim of profiting from falling (‘shorting’) as well as rising prices. Should the asset’s value vary in an unexpected way, the fund value could reduce.
- Leverage risk The fund may operate with a significant amount of leverage. Leverage occurs when the economic exposure created by the use of derivatives is greater than the amount invested. A leveraged portfolio may result in large fluctuations in its value and therefore entails a high degree of risk including the risk that losses may be substantial.
- Charges from capital risk Where charges are taken wholly or partly out of a fund's capital, distributable income may be increased at the expense of capital, which may constrain or erode capital growth.
- Emerging markets risk Compared to more established economies, investments in emerging markets may be subject to greater volatility due to differences in generally accepted accounting principles, less governed standards or from economic or political instability. Under certain market conditions assets may be difficult to sell.
- Income risk The payment of income and its level is not guaranteed.
- Counterparty risk Investments such as derivatives are made using financial contracts with third parties. Those third parties may fail to meet their obligations to the fund due to events beyond the fund's control. The fund's value could fall because of loss of monies owed by the counterparty and/or the cost of replacement financial contracts.
- ESG risk The fund may select, sell or exclude investments based on ESG criteria; this may lead to the fund underperforming the broader market or other funds that do not apply ESG criteria. If sold based on ESG criteria rather than solely on financial considerations, the price obtained might be lower than that which could have been obtained had the sale not been required.
