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Artemis Strategic Bond Class QI - Accumulation (GBP)

Sell:108.33p Buy:108.33p Change: 0.44p (0.41%)
Prices as at 12 August 2020
Sell:108.33p
Buy:108.33p
Change: 0.44p (0.41%)
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 2020
Sell:108.33p
Buy:108.33p
Change: 0.44p (0.41%)
Prices as at 12 August 2020
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.

The experienced team of James Foster and Alex Ralph can invest across all parts of the bond market. So they have plenty of opportunities at their fingertips. The emphasis is on paying income, but they also aim to grow your investment over the long-term. They want this to be a balanced fund too, with the potential to perform well in a variety of economic conditions. We think they've done an excellent job over the long-term. But a willingness to invest quite a lot in higher-risk high yield bonds means we view it as a more adventurous option.

Our view on the sector

Strategic bond funds have the freedom to invest across the fixed-interest spectrum, from traditional government and corporate bonds to higher-risk high-yield bonds. They can also invest up to 20% of the fund overseas and potentially benefit from currency movements. But this relies on the skill of the fund manager in making the right calls. Given the huge flexibility fund managers in this sector have, each fund should be judged on its own merits. Some focus on generating an income while others try to grow investors' money, or shelter it when times get tougher.

Performance Analysis

The managers have an excellent long-term track record. The higher-risk nature of the fund was demonstrated during the financial crisis though, when the fund fell to a greater extent than peers. It's since rebounded strongly and while it might not hold up as well as some other funds in tougher conditions, we think the managers will do a great job for long-term investors. Please remember past performance isn't a guide to the future.

Investment Philosophy

The managers aim to provide income as well as growth in your investment. To do this they shift the fund between different areas of the bond market, moving between government bonds, investment-grade bonds, and higher-risk high-yield bonds as conditions change. They aim to have a good mix of investments across a variety of sectors to reduce the risk of one area dominating performance.

Process and Portfolio Construction

The fund's positioning is determined by the managers' views on where we are in the economic cycle combined with an analysis of the prospects for individual companies and governments. The fund has tended to invest in a mix of higher-risk high-yield bonds, investment grade corporate bonds, and government bonds.

When they're concerned about the economy, they're likely to invest more in lower-risk government bonds and less in high-yield bonds. They'll do the opposite when they think the outlook's positive.

The fund invests in UK and overseas bonds. The managers can also use derivatives which can increase risk. They'll typically hold between 100 and 130 investments across bonds in different sectors and with different credit ratings and lengths of time until the bond is repaid. This gives the fund a good level of diversification so there isn't overreliance on one specific area.

question mark Manager Track Record Based on HL Quantitative Research

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Fund Track Record

11/08/15 to 11/08/16 11/08/16 to 11/08/17 11/08/17 to 11/08/18 11/08/18 to 11/08/19 11/08/19 to 11/08/20
Annual return 6.28% 6.67% 1.46% 4.46% 3.79%

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.

Fund Management Group Comment

Artemis was formed in 1997 and offers a range of funds invested in the UK, Europe and around the world. The Artemis philosophy is that a fund's primary aim is to beat the market and generally the fund managers are free to pursue their best ideas in order to achieve this.

Artemis is home to some of the market's leading fund managers who are required to invest their own money into their funds, and therefore success for them is success for their investors. We feel this is a great incentive for them to continue striving for good performance.

Information about the fund

Fund manager biography

manager photo
Manager Name: James Foster
Manager start date: 30 June 2005
Manager located in: London

James joined Artemis in April 2005 and manages the Artemis Strategic Bond Fund and the Artemis Monthly Distribution Fund which were launched in June 2005 and May 2012 respectively. He has over 25 years' experience of managing bonds including gilt, index-linked and corporate bond funds. His career started at Sun Alliance Investment Management in 1989 where he went on to become a pioneer of retail bond funds in the UK, launching one of the first mainstream retail unit trusts in the asset class. Before joining Artemis, James also worked at Royal Sun Alliance Investment Management, Isis Asset Management and F&C Asset Management.

manager photo
Manager Name: Alex Ralph
Manager start date: 30 June 2005
Manager located in: London

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 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