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Artemis Short-Dated Global High Yield Bond

June 10, 2024
Harvest News
Bellevue Healthcare Trust

This months Fund in Focus is Artemis Short-Dated Global High Yield Bond. The funds main objective is 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. The fund does this by investing in high-yield bonds that are close to maturity. The funds target duration is 0-2 years. The distribution yield on this fund is currently a little over 6%, with the fund paying out quarterly distributions.

Points to Note:

  • The fund avoids the largest, over-covered, index-dominated names and focuses mainly on the wider market, exploiting the under-covered and inefficiently priced “tail”.
  • Fund Managers David Emmett and Jack Holmes believe that high yield is now offering attractive longer-term pricing and as monetary policy tailwinds evaporate, an active approach to the high yield market is vital.
  • It is also worth highlighting the strategy’s resilience to current market volatility. Over the course of the April, the fund’s distribution yield increased from 7.4% to 7.7% in USD terms as yields generally rose across the board.
  • A majority of the larger companies on the portfolio are BB rated. Investing in the highest quality part of the market reduces chance of large default cycle in high yield.

As always, you should only consider the investment views contained in this Artemis Short-Dated Global High Yield Bond update in the context of your own attitude to risk and how such choices might impact your Asset Allocation model. Should you wish to discuss your investment portfolio, please contact Harvest Financial Services on 01 2375500 or email justask@harvestfinancial.ie.

This marketing information has been provided for discussion purposes only. It is not advice and does not take into account the investment needs and objectives, financial position, risk attitude, liquidity needs, capital security needs and/or capacity for loss of any particular person. It should not be relied upon to make investment decisions.
Warning: The return may increase or decrease as a result of currency fluctuations.
Warning: The figures refer to the past. Past performance is not a reliable indicator of future results.
Warning: The value of your investment may go down as well as up. You may get back less than you invest.
Warning: The income you get from this investment may go down as well as up.