Change to name, investment objective, policy and strategy, and benchmark of the Artemis Target Return Bond Fund
On 18 March 2024, changes were made to the name, investment objective, policy and strategy, and benchmark of Artemis Target Return Bond Fund. From 18 March 2024, the fund is named Artemis Short-Duration Strategic Bond Fund.
Updated 18 March 2024
On 18 March 2024, changes were made to the name, investment objective, policy and strategy, and benchmark of Artemis Target Return Bond Fund:
1: changed the name of the Fund to ‘Artemis Short-Duration Strategic Bond Fund’;
2: changed the Fund’s investment objective from:
“To achieve a positive return of at least 2.5% above the Bank of England (BOE) base rate, after fees, on an annualised basis over rolling three-year periods.”
To:
“To generate a return that exceeds the Markit iBoxx 1-5 year £ Collateralised & Corporates Index, after fees, over rolling three-year periods, through a combination of income and capital growth, by investing in a portfolio of global debt and debt-related securities whilst maintaining an aggregate portfolio duration of below 4 years (duration is a measure of the sensitivity of the prices of bonds to changes in interest rates).”
3: changed the target benchmark from ‘Bank of England base rate’ to ‘Markit iBoxx 1-5 year £ Collateralised & Corporates Index’ ;
4: changed the Fund’s investment policy and strategy wording to align with other Artemis fixed income funds, specifically:
- amend the wording on the Fund holding B- rated bonds to clarify that the restriction applies to the purchase of B- rated bonds. Bonds that are downgraded below this credit rating after purchase would not have to be compulsorily sold; and
- delete the restrictions on exposures to non-government issuers of investment grade securities, individual issuers of below investment grade securities or emerging market issuers.
Otherwise, the Fund’s limits/restrictions remain unchanged.
The Fund’s prospectus has been updated to reflect that the global exposure of the Fund will now be calculated using a relative VaR risk management approach, with the Markit iBoxx 1-5 year £ Collateralised & Corporates Index as the reference portfolio. Previously, absolute VaR was the risk management approach applied.
Related documents
- Letter to shareholders dated 5 February 2024 (PDF opens in new window)
- Results of shareholder EGM convened on 5 March 2024 (PDF opens in new window)
Affected share classes
Artemis Target Return Bond Fund
- Class F Accumulation GBP (ISIN: GB00BJXPPK95)
- Class F Distribution GBP (ISIN: GB00BJXPPL03)
- Class I Accumulation GBP (ISIN: GB00BJXPPH66)
- Class I Distribution GBP (ISIN: GB00BJXPPJ80)