Artemis Strategic Bond QI

A less constrained hybrid bond portfolio focusing on the pan European debt markets.

  • 88.38p
    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.

  • 111.57p
    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?

  • 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!

  • 0.50%
    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).

  • 0.59%
    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.

  • 2.30%
    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 15 January 2021

The fund aims to maximise risk adjusted returns over a credit cycle through astute asset allocation and credit selection calls. The fund carries no specific yield target, instead the emphasis is very much on achieving a total return whether through capital appreciation or income. To achieve the fund's objective the manager tends to focus on pan european credit and UK gilts. The fund is available in two share classes paying dividends monthly (M) or quarterly (Q). Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.

Fund summary

Sector £ Strategic Bond
Structure UNIT TRUST
Launched March, 2008
Size £1,812m
Yield 2.30%
Charging basis
Dividends paid 31 Jan, 30 Apr, 31 Jul, 31 Oct

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.50%
Ongoing charges figure 0.59%

Allocation

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Investment process

This fund has minimal structural constraints providing the manager with the flexibility to invest across the spectrum of investment grade and high yield bonds, apply high yield/corporate bond allocations according to his perception of the credit cycle and hedge interest rate risk if required. Top down and bottom up strategies will primarily be played through sterling and euro denominated credits and gilts. The fund may also take small positions in euro denominated emerging market debt. The manager will not normally invest in convertible bonds, preference shares or unrated debt. All non sterling currency exposure is hedged. Derivatives may be used for managing portfolio exposures, these could include futures to manage interest rate risk and credit default swaps to manage credit exposures. These are intended to be used as hedging tools only, as opposed to a means of arbitrage trading.

Whilst the team is small, their focus is on just this one mandate. The lead manager has one of the longest track records managing what we would loosely define as strategic bond mandates; he also adopts a more focused higher conviction approach to fixed income investing. The fund is often positioned fairly aggressively from a credit perspective, and at the same time the manager is more wary of the long term outlook for gilts.

Manager research

Average monthly relative returns

  • 16/17 -0.10%
  • 17/18 0.04%
  • 18/19 0.13%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.17%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 27.40%

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

James Foster

Foster started his investment career with RSA Investments in 1989 after graduating with a degree in Economics. In 1993 he assumed responsibility for all sterling unitised fixed interest funds and in 1997 was appointed credit fund manager for all of the group's fixed interest funds. In 2002 he assumed responsibility for the credit portfolios of ISIS Asset Management. In July 2004 he went on sabbatical following the merger of ISIS with Foreign & Colonial, and in October 2004 it was announced he had resigned from ISIS. He joined Artemis in April 2005.

Track record

James Foster has 6.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.17%. During the worst period of relative performance (from February 1996 - January 1999) there was a decline of 15% relative to the index. The worst absolute loss has been 3%.

Periods of worst performance

Absolute -3.00% (February 1999 - September 1999)
Relative -15.00% (February 1996 - January 1999)

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.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

13.3472% United States Of Amer Treas Bills 1.5% Tb 31/08/24 Usd100
3.1313% United States Of Amer Treas Notes 1.5% Nts 15/02/30 Usd100
2.8543% United States Of Amer Treas Bills 1.75% Tb 30/09/26 Usd100
1.0093% Bnp Paribas Sa 1.875% Snr Npf 14/12/27 Gbp1000
1.0029% La Poste 3.125% Undated Bds Eur100000
.9328% Comcast Corp(New) 1.5% Bds 20/02/29 Gbp1000
.9015% Tesco 6.15% Snr Nts 15/11/37 Usd100000 `144a`
.8769% Edf 6% Undated Nts Gbp100000
.8737% Wells Fargo & Co 2.5% Nts 02/05/29 Gbp100000
.8713% Hsbc Bank Plc Undated Fltg Rate Prim Cap Nts Usd Jun85
Source: Trustnet

Sector breakdown

Government Bonds 19.00%
Insurance 11.00%
Banks 9.00%
Utilities 9.00%
Telecommunications Utilities 7.00%
Financials 7.00%
Money Market 6.00%
Energy 5.00%
Materials 4.00%
Biotechnology/Medical 2.00%

Portfolio

- Current duration of the fund is 4.3 years

Constraints

Maximum weighting to individual investment grade credits approx 4%, high yield credits 3%. The fund will usually be diversified across approximately 65 names.

Key Investor Information - Income

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Key Investor Information - Accumulation

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