Artemis High Income Fund I Inc

Sterling Bonds

Rated Fund 2016-2018. Assesses a company's bonds and shares

This fund was highly commended in the Larger Sterling Bond Fund category

of Money Observer's 2015 awards. Morningstar rates it a �compelling' long-term offering for investors looking for a high

income fund. It yields more than 5 per cent and offers the choice of a quarterly or monthly income.

Although it invests primarily in bonds, which must make up at least 80 per cent of the portfolio to qualify for inclusion in a bond sector, it also invests in shares to give it greater growth potential. Alex Ralph, a bond specialist, has been lead manager since 2015. On the equity allocation, she is supported by Artemis' income team.

The team carry out their own research, analysing companies from both an equity and a bond perspective. Rather than relying on credit-rating agencies, they make their own assessments of each bond, focusing on the issuing company's free cash flow and its ability to service its debt and refinance itself. For equities, they analyse how companies are investing for the future, paying particular attention to the outlook for dividends.

This dual perspective gives the team a more complete understanding of a company's capital structure than is available to a bond or equity specialist alone. It allows them to assess whether a company's shares represent a more attractive claim on its future cash flows than its bonds, or vice versa.

One of Ralph's aims is to find bonds that have been mispriced due to a lack of broker coverage or thin trading. This can result in attractive yields and a potentially strong total return.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Artemis High Income Fund I Inc
Artemis Fund Managers Limited
Unit Trust
£ Strategic Bond
0.69 %
Risk Rating
3 Year Sharpe
6.1 %
IA £ Strategic Bond
The OMW Artemis High Income fund invests solely in the Artemis High Income fund, a UK authorised Unit Trust, managed by Artemis Fund Managers Limited. The underlying fund aims to achieve a higher than average initial yield, combined with the prospect of rising income and some capital growth over the long-term. The emphasis of the underlying fund will be investment in UK fixed-interest instruments and preference shares, however, the underlying manager has the flexibility to invest in all economic sectors worldwide and in equities. The underlying fund may be denominated in or hold assets in a currency other than Sterling. The performance of the fund may therefore rise and fall as a result of exchange rate fluctuations. The underlying fund invests in non-investment grade high-yielding bonds. The high yield reflects a higher risk of capital loss through default. The underlying fund invests in bonds or money market instruments (including deposits with banks or other financial institutions).
Holding %
United Kingdom of Great Britain and Northern Ireland 0.75% 3.74 %
United Kingdom of Great Britain and Northern Ireland 1.75% 2.35 %
Euro BUND Future Dec18 2.15 %
PGH Capital PLC 6.62% 1.37 %
RBS Capital Trust II 6.42% 1.33 %
Sanofi SA 1.08 %
RWE AG 7% 1.07 %
America Movil S.A.B. de C.V. 6.38% 1.04 %
NGG Finance plc 5.62% 1.04 %
Royal Dutch Shell PLC Class A 1.04 %
Region %
United Kingdom 49.91 %
Eurozone 38.17 %
Europe - ex Euro 11.75 %
Sector %
Consumer Cyclical 21.53 %
Consumer Defensive 15.95 %
Energy 11.95 %
Industrials 10.67 %
Communication Services 10.47 %
Financial Services 9.85 %
Healthcare 7.09 %
Utilities 6.38 %
Artemis Fund Managers Limited
SW1A 1LD, London, United Kingdom
Legal Structure
Unit Trust


Chris Ellis
Joined 03/31/2014
Alex Ralph
Joined 02/01/2014

Alex runs the Artemis Strategic Bond Fund alongside James Foster and is the manager of the Artemis High Income Fund. She graduated in 2000 from the London School of Economics and joined Royal Sun Alliance, as a credit analyst. In 2002, Alex moved into managing retail bond funds with ISIS, initially specialising in the high-yield market but later adding duration and investment-grade positioning. Alex joined Artemis in April 2005 and is a CFA charterholder.

Data provided by Morningstar.

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