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Artemis Corporate Bond Class I - Income (GBP)

Sell:95.94p Buy:95.94p Change: 0.38p (0.40%)
Prices as at 12 August 2022
Change: 0.38p (0.40%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 12 August 2022
Change: 0.38p (0.40%)
Prices as at 12 August 2022
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Stephen Snowden is a seasoned corporate bond investor and has over 20 years' experience. This means Snowden has navigated the corporate bond market through a range of economic conditions. He's delivered strong returns for investors over the long term, outperforming the corporate bond peer group with funds he's previously managed. We like Snowden's clear, disciplined investment process which we think could be a driver of returns over the long term.

The fund aims to generate a combination of income and growth over the long-term and could form part of a diversified bond portfolio, or diversify an equity-focused portfolio. We think the fund could be more volatile than some other bond funds but is a good choice as part of a portfolio invested for the long term.

Our view on the sector

Funds in this sector invest mainly in 'investment grade bonds'. These are issued by companies that are more likely to be able to repay their debts to bondholders. As such, they tend to offer lower yields than bonds issued by companies that are less likely to be able to pay off their debts. Corporate bonds have generally performed well since the 2008 financial crisis. With interest rates on cash so low, they've appealed to income investors. This has pushed up bond prices, but means their yields have also fallen. Some suggest there is now less value in this area of the market. We think that with interest rates likely to stay lower for longer, a corporate bond fund could be a good addition to a diversified portfolio invested to generate income.

Performance Analysis

Stephen Snowden has delivered strong performance over the long term. Over his career, Snowden has outperformed across the funds he previously managed compared to the IA Corporate Bond peer group. His performance suffered during the financial crisis, but he bounced back reasonably well after. Please remember past performance is not a guide to future returns.

As the Artemis corporate bond fund was launched in October 2019, it's currently not possible to provide annual performance figures. The fund has a short record, but our conviction lies with the fund manager who has a very long track record. This is a new fund however, and there are no guarantees his previous performance will be replicated. Past performance isn't a guide to the future. All investments can fall as well as rise in value so you could get back less than you invest.

Investment Philosophy

Snowden believes that the corporate bond market is inefficient which can allow active managers with the flexibility to invest across the market to take advantage.

Snowden believes environmental, social and governance (ESG) considerations have become issues investors and companies can't ignore. And that in the future, companies that encounter issues and perform poorly in these areas are likely to be viewed negatively by more and more investors and as such, have the potential to be value traps - investments that are cheap for a reason.

We think Artemis provides an attractive environment for fund managers, allowing them the freedom to run money how they see fit without imposing a house view on them. It's also a collegiate atmosphere, with managers supporting and challenging each other.

Process and Portfolio Construction

The fund's investment process blends 'top down' macro-economic research with 'bottom up' fundamental analysis of individual companies' bonds. The macro analysis involves building up a picture of where countries are in the economic cycle as well as considering the implications of monetary and fiscal policy for key indicators like inflation and interest rates. This helps Snowden evaluate which sectors and areas of the economy could benefit from any trends or shifts that might be occurring.

This macro-economic research is combined with 'bottom up' analysis of bond-issuing companies. This helps Snowden to determine which bonds are attractively priced and offer the most compelling opportunities to generate returns. Snowden also spends time meeting company management to assess both their quality and their strategy for the business. It's important for him to dig deeper into the company strategy to understand what they're trying to achieve, its implications and to ensure that it isn't likely to disadvantage bondholders. At least 80% of the fund is invested in investment grade bonds (those with a credit rating of BBB or above) that are issued in sterling or hedged back to sterling from other currencies, like the Euro or the Dollar. The fund may also invest in derivatives and high yield bonds which can add risk.

Snowden achieves diversification by owning bonds issued by a range of different companies. There are currently 125 bonds in the fund, but this number can be anywhere between 75 and 150 at any one time. Some of these bonds may be more illiquid than others, which could make them more difficult to sell.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

12/08/17 to 12/08/18 12/08/18 to 12/08/19 12/08/19 to 12/08/20 12/08/20 to 12/08/21 12/08/21 to 12/08/22
Annual return n/a n/a n/a 6.99% -11.33%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

Manager Name: Stephen Snowden
Manager start date: 30 October 2019
Manager located in: Edinburgh

With a BSc and a MSc in Finance from Queen's University, Belfast, in 1994 Stephen started his career at Aegon Asset Management (now Kames Capital) as a US equity analyst and fund manager. In 1998 he moved to fixed income, becoming manager of Kames' Sterling Corporate Bond Fund in June 2000. Stephen then joined Old Mutual Asset Managers and managed their Corporate Bond Fund from 2004 - 2011, when he returned to Kames. There, as co-head of fixed income, he was co-manager of the Kames Investment Grade Bond Fund, the Investment Grade Global Bond Fund and the Absolute Return Bond Fund until November 2018. In May 2019 Stephen joined Artemis as a partner, to lead our Edinburgh-based fixed income team.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account