Artemis Funds (Lux) – Short-Dated Global High Yield Bond

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.

There is no guarantee that the fund will achieve a positive return over a three-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 short-dated high yield bonds, which:

• have a residual maturity of less than five and a half years; and
• 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 coalbased 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 a methodology statement available on the Artemis website at www.artemisfunds.com/methodology-statement. 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 the Prospectus.

The Investment Manager shall target an average duration, across all of the bonds held by the Fund, between zero and two years in normal market circumstances; however there may be times (for example in periods of high volatility or market disruption) when average duration will be above two years. In these circumstances, the Investment Manager shall endeavour to return the portfolio to an average duration between zero and two years as soon as practicable taking into account the best interests of Shareholders.

The Fund may use derivatives and other techniques for investment, hedging and for efficient portfolio management. The Fund's derivatives may include, but are not limited to, futures, forward currency contracts, credit default 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%. 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;
• 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; and
• other collective investment schemes.

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

Secured Overnight Financing Rate (SOFR)

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 and therefore characteristics such as volatility will vary between the fund and the benchmark.

The benchmark does not take into account environmental and/or social characteristics promoted by the fund.