Artemis High Income Fund I Inc
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
|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 %|
|United Kingdom||86.56 %|
|Europe - ex Euro||8.44 %|
|Financial Services||45.80 %|
|Communication Services||19.38 %|
|Consumer Cyclical||9.78 %|
|Consumer Defensive||6.72 %|
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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