Artemis Funds (Lux) – Global High Yield Opportunities

To increase the value of Shareholders’ investments through a combination of income and capital growth.

There is no guarantee that the fund will achieve a positive return over a five-year period or any other time period and your capital is at risk.

The Fund may invest in the bonds of any type of issuer (for example government or corporates) with no restriction on economic or geographic areas (including emerging markets).

The Fund will invest at least 80% in high yield bonds, which either (a) have been given a credit rating of either: (i) Ba1 or lower by Moody’s; (ii) BB+ or lower by Standard & Poor’s; or (iii) BB+ or lower by Fitch; or (b) have not been rated but which the Investment Manager believes would, if they were rated, be given a comparable credit rating.

Corporate bonds (held either directly or indirectly via derivatives) issued by companies involved in the following are automatically excluded:

• Tobacco: companies which derive any revenue from tobacco production;
• Nuclear power: companies which derive more than 5% revenue from:
  • nuclear power plant ownership or operation;
  • manufacturing of nuclear-specific essential components;
  • uranium mining; or
  • nuclear energy based power generation;
• Weapons: companies:
  • involved in the production of controversial weapons (including cluster munitions, landmines, biological and chemical weapons)
• Fossil fuels: companies which:
  • derive more than 10% revenue from thermal coal-based power generation; or
  • derive more than 5% revenue from thermal coal mining or sale, oil sands, fracking or arctic drilling;
• Companies that the Investment Manager determines to be in breach of the United Nations Global Compact principles on human rights, labour rights, the environment and anti-corruption.

The Fund promotes environmental and/or social characteristics within the meaning of Article 8 of SFDR. This is achieved through (i) operating exclusions lists, as detailed above, based on industries where the Investment Manager assesses there to be fundamental ESG-related concerns, (ii) taking into consideration ESG risks and opportunities, which may additionally influence the bonds selected depending on the outcome of the ESG evaluation, and (iii) favouring investment in issuers with low or reducing carbon intensity, with the Investment Manager aiming for the Fund’s carbon intensity (as measured by scope 1 & 2 emissions) to be below that of the ICE BoAML Global High Yield Constrained Index. Further information is contained in the product level SFDR sustainability disclosures found in the ‘Sustainability & Stewardship’ section of our Fund Literature page.

The environmental social and governance (ESG) evaluation of individual securities is determined by the Investment Manager using information provided by the companies (for example company sustainability reports) and third-party data focusing on individual factors and metrics that the Investment Manager considers to be relevant.

More information about the environmental or social characteristics for this Fund is available in the pre-contractual disclosure for financial products referred to in Article 8 under SFDR which follow the Fund’s details and which form an integral part of this Prospectus.

In addition to purchasing high yield bonds, The Fund may use derivatives and other techniques for investment, hedging and for efficient portfolio management purposes. The Fund's derivatives may include, but are not limited to, futures, forward currency contracts, credit default swaps (single name and indices), total return swaps (single name and indices)and interest rate swaps. In particular, the Investment Manager intends to hedge the Fund’s Base Currency against the currencies in which the underlying assets of the Fund are denominated. There may be certain currency exposures where it is impractical or not cost effective to apply the portfolio hedge, but the intention is that the Fund will operate a target hedge ratio of 100%.

The Fund may make use of derivatives for investment purposes to take both long and short positions. At times, the Fund may also use index futures and/or options (long or short) in order to vary the level of volatility and/or market exposure in the Fund.

Total derivatives (longs and shorts) will typically lie in a range of 50-150% of Net Asset Value but which may potentially be as high as 200%. The Investment Manager uses derivatives to select bonds that may benefit from falling, as well as rising, prices.

The Fund’s net exposure will typically lie in the range of 60-175% (longs minus shorts) depending on market conditions.

The Fund intends to use the ability to add net exposure beyond 100% and to hold short positions only when market conditions and the Investment Managers beliefs over the future path of returns make it suitable. There is no obligation for either of these elements of the Fund to be implemented should either of these conditions not be met.

In the event that any bonds held by the Fund are subject to a restructuring process, the Fund will be permitted to invest in new bonds or equity securities issued as part of the reorganisation process.

The Fund may invest up to 10% of its assets in each of the following:

• asset-backed securities and mortgage-backed securities;
• distressed/defaulted bonds; and
• other collective investment schemes.

The Fund may invest up to a 20% net position of its assets in each of the following:

• contingent convertible bonds; and
• more speculative high yield bonds, where they carry a credit rating from Moody's, Standard & Poor's or Fitch, that have been given ratings whereby none are at or above B- (for Standard & Poor's and Fitch) or B3 (for Moody's) not qualifying as distressed/defaulted bonds at the time of purchase.

Subject to the limits set out in the Investment Restrictions, the Fund may also hold ancillary liquid assets for treasury purposes.

Subject to the limits set out in the Investment Restrictions, the Fund may also invest in bank deposits, money market instruments and money market funds in order to achieve its investment goals, for treasury purposes and in case of unfavourable market conditions.

ICE BofA Global HY Constrained Index

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.