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
Name
Artemis High Income Fund I Inc
Manager
Artemis Fund Managers Limited
Type
Unit Trust
ISIN
GB00B2PLJN71
Sector
£ Strategic Bond
Launched
07/03/2008
OCF
0.69 %
Risk Rating
4
3 Year Sharpe
1.08
Yield
5.7 %
Benchmark
Not Benchmarked
The fund aims to achieve an above average level of income together with the prospect of rising income and some capital growth over the longer term.
Holding %
United Kingdom of Great Britain and Northern Ireland 1.75% SNR PIDI BDS 22/ 5.92 %
Direct Line Insurance Group PLC 2.36 %
Legal & General Group PLC 2.06 %
US 10 Year Note (CBT) June18 2.01 %
BT Group PLC 1.57 %
PGH Capital PLC 6.625% SUB PIDI BDS 18/12/2025 GBP (REGS) 1.46 %
RBS Capital Trust II FXD-FRN PERP PIDI TST CERT USD 1.26 %
Nordea Bank AB 1.20 %
Vodafone Group PLC 1.13 %
BP PLC 1.12 %
Region %
United Kingdom 86.56 %
Europe - ex Euro 8.44 %
Sector %
Financial Services 45.80 %
Communication Services 19.38 %
Consumer Cyclical 9.78 %
Energy 8.01 %
Consumer Defensive 6.72 %
Technology 5.73 %
Name
Artemis Fund Managers Limited
Address
SW1A 1LD, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

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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