Artemis High Income Fund

The Artemis High Income Fund invests predominantly in bonds but also holds company shares. It aims to achieve a high level of income and capital growth, before fees, over rolling five-year periods. The managers define a high level of income as equal to, or in excess of, the average yield of the funds in the fund’s Investment Association peer group, the Strategic Bond sector.

The value of the investments selected by the manager may fall as well as rise with movements in bond and stock markets or owing to factors specific to individual companies. This could mean investors may not get back the amount they originally invested. There is a risk that the issuer of a bond may default on its regular payments or not pay back the initial value of the bond at the end of the payment term.

• Aims to provide a high income: the fund typically invests in high-yield bonds. High-yield bonds have lower credit ratings than some other types of bond and are considered to have a higher risk of default. They tend to pay a higher rate of interest to compensate investors for this risk.
• Balancing risk and reward: by analysing the prospects of companies that issue high-yield bonds, the manager seeks to identify quality companies that are stable and less likely to default on interest payments. This analysis allows the manager to seek the right balance between risk and reward.
• A collective approach: managers David Ennett, Ed Leggett and Jack Holmes have many years of experience. They work closely with other colleagues in Artemis’ fixed income team.
• ESG integration: the managers incorporate analysis of environmental, social and governance factors to insulate against emerging risks to the value of the fund’s holdings. They use a combination of external research and their own assessment tool to assess the scale of the risk and the company’s response, alongside the financial case.