Artemis High Income R

Invests approx. 75% in corporate bonds with the balance in UK equities and convertibles.

  • 75.16p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.25% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.25%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.33%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 4.80%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 13 December 2019, fund data last updated 25 November 2011

A hybrid fund investing predominantly (75%) in corporate bonds with the balance invested across equities and convertibles. The investment objective is to provide a higher than average yield, combined with the prospect of rising income and some capital growth over the long term. The yield offered is higher than for equity income funds, but the potential for capital appreciation is lower. Good quality stocks are selected with the manager favouring companies with sustainable cash flow.

Fund summary

Sector £ Strategic Bond
Structure UNIT TRUST
Launched May, 1995
Size £1,202m
Yield 4.80%
Charging basis Capital
Dividends paid 7 Jan, 7 Apr, 7 Jul, 7 Oct

Charges

Standard initial charge 5.25%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.33%

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Investment process

The emphasis of the fund is investment in UK fixed interest investments and preference shares. However manager Adrian Frost has the flexibility to invest in all economic sectors worldwide and in equities. Frost also manages Artemis' flagship Income fund, which purchases equities only. His investment philosophy can be described as being split 70/30 between stock specific drivers and top down macro economic factors (i.e. global trends). The manager looks to achieve the highest yield possible whilst maintaining confidence that the issuer can maintain its coupons and meet its redemption payment. They look to take advantage of anomalies caused by credit ratings - many funds can only buy bonds above a certain rating - and through the lack of research in certain high yield issues. Within the equity portion of the fund the manager looks for safe, high yields. The weighting in equities will depend on the levels of yield and risk compared to bonds.

Fund manager Adrian Frost is highly rated by Bestinvest on the flagship Artemis Income fund (5 stars), but that fund has a different mandate, investing predominantly in equities and this is where we believe Frost's real strengths lie. Therefore Bestinvest has not rated this fund.

Manager research

Average monthly relative returns

  • 14/15 -0.02%
  • 15/16 -0.01%
  • 16/17 0.39%
  • 17/18 0.12%
  • 18/19 -0.31%

Bestinvest MRI

  • 3 years 0.07%
  • 5 years 0.03%
  • Career 0.04%
  • 3 years 85.80%
  • 5 years 82.10%
  • Career 85.50%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Alex Ralph

Ralph 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. Ralph joined Artemis in April 2005 and is a CFA charterholder.

Track record

Alex Ralph has 5.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.04%. During the worst period of relative performance (from April 2018 - August 2019) there was a decline of 5% relative to the index. The worst absolute loss has been 7%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 86%.

Periods of worst performance

Absolute -7.00% (May 2015 - February 2016)
Relative -5.00% (April 2018 - August 2019)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 31 July 2019

5.4301% United States Of Amer Treas Bills 3.125% Nts 15/11/28 Usd100
4.197% United States Of Amer Treas Bills 2.625% Tb 15/02/29 Usd100
1.4854% Phoenix Group Hldgs Plc 6.625% Gtd Sub Nts 18/12/25 Gbp100000
1.3235% Edf 6% Undated Nts Gbp100000
1.2657% Argentum Netherlands Bv Frn 15/08/50 Usd200000
1.2183% Burford Capital Finance Llc 6.125% Gtd Bds 12/08/25 Usd100
1.2025% Rbs Capital Trust Ii 6.425% Bds Perp Usd1000
1.1748% Credit Suisse Group Ag 6.25% Undated Bds Usd200000
1.1452% America Movil Sab De Cv 6.375% Bds 06/09/73 Gbp1000
1.1216% Orange Sa 5.875% Undated Bds Gbp100000
Source: Trustnet

Sector breakdown

Banks 17.00%
Government Bonds 10.00%
Financials 8.00%
Life Insurance 7.00%
Insurance 6.00%
Oil & Gas Exploration & Production 6.00%
Telecommunications 5.00%
Travel 5.00%
Wireless & Mobile Communications 5.00%
Electricity Supply 4.00%

Portfolio

130-160 positions.

Constraints

Typical initial position of 0.5%, maximum weighting of 3% in any one company. Max 15% in any one industry.

Key Investor Information

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