Following our further research, we are reinstating the Artemis High Income and Artemis Monthly Distribution funds to our Recommended list.

As communicated in our bulletin of 10 September 2021, James Foster, co-manager of the Artemis Strategic Bond fund and co-manager of the Artemis Monthly Distribution fund, retired at the end of 2021.  Alex Ralph, co-manager of the Artemis Strategic Bond fund and lead manager of the Artemis High Income fund, left the firm.

Stephen Snowden, who joined Artemis in 2019, became the firm’s Head of Fixed Income.  Artemis announced a new team structure and fund responsibilities.

Artemis High Income

The fund is co-managed by David Ennett, Jack Holmes and Ed Legget.  Messrs Ennett and Holmes are high yield bond specialists.  Mr Legget selects the stocks for the equity portion of the fund and leads the firm’s ‘UK Select’ strategy.  We have known Messrs Ennett and Holmes for several years, having recommended their funds at Kames Capital and Standard Life Investments.  Mr Legget’s UK Select strategy also features on our Recommended list.

Under their stewardship, there is no change to the fund’s objective and established strategy, which is to deliver an attractive level of income from a large credit allocation, alongside a capital growth element from the equity portion.  Since being appointed managers, Messrs Ennett and Holmes have broadened the fund’s fixed income exposures from mainly pan-European higher yielding bonds to global higher yielding bonds.

As a reminder, the managers’ primary focus is on income, with the fund typically having a meaningful exposure to higher yielding bonds, as well as up to 20% in equities.  Therefore, the fund has a structural bias towards higher risk assets when compared to many funds in the IA £ Strategic Bond sector (see our IA Sector Overview for further information).

The fund is suitable for investors seeking a higher income strategy and for investors who are comfortable with the risks associated with higher yielding bonds and equities.

To view our full factsheet, please visit the fund page.

Artemis Monthly Distribution

The fund is co-managed by Stephen Baines, Jacob de Tusch-Lec and James Davidson.  Stephen Baines is responsible for the fixed income component of the fund (typically a 55% allocation), while Messrs de Tusch-Lec and Davidson are responsible for the equity portion (typically a 45% allocation).  Messrs de Tusch-Lec and Davidson co-manage the Artemis Global Income fund, which we also recommend.

The managers have not changed the fund’s objective and philosophy, which is to deliver an attractive ‘natural’ rate of income from this mixed portfolio.  They understand the importance of an integrated approach, with the underlying bond and equity exposures managed in a holistic way.  Since being appointed a manager, Mr Baines has broadened the fund’s fixed income exposures from mainly pan-European bonds to global bonds.

As a reminder, the managers aim to generate an attractive income (paid monthly for investors in the distribution units) which is in keeping with the prevailing environment.    In seeking to achieve this objective, they think carefully about the balance between capital growth and security of income.  The fund resides in the IA Mixed Investment 20-60% Shares sector.

We regard this as a well-conceived fund for investors seeking an income-orientated approach within a cautiously managed, mixed asset vehicle.

To view our full factsheet, please visit the fund page.