Artemis Strategic Bond Class QI - Income (GBP)

The managers' investment style of being prepared to invest quite differently to peers and the consensus market view means that performance for this fund can be quite different to other funds in the IA £ Strategic Bond sector.

The fund has a very large investible universe and the managers change their positioning depending on their views of the world. Therefore performance is reliant on the managers' making the right decisions as opposed to being based on a specific investment style that will come in and out of favour over time.

The managers believe that bond markets are inefficient, which can allow active managers with the flexibility to invest across the market to take advantage.

They are gradually taking ESG issues into account more when analysing companies for this fund. Along with the wider team, they engage with companies on sustainability issues and vote on key issues. That said, this is not an ESG labelled fund and the risk-return profile of the bonds they invest in remains the most important thing.

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.

The fund's investment process blends 'top down' macro-economic research with 'bottom up' fundamental analysis of individual companies' bonds. The managers shift between different areas of the bond market, moving between government bonds, investment-grade corporate bonds, and higher-risk high-yield bonds as market and economic conditions change.

The fund's positioning is determined by the managers combined views on where we are in the economic cycle combined with their analysis of the prospects for individual companies and governments. O'Donnell leads on wider economic views about things like interest rates. Ennett leads on credit selection within the high yield area of the market, while Le leads on credit selection within the investment grade space.

When they're concerned about economic prospects, they're likely to invest more in lower-risk government bonds and less in high-yield bonds. They'll do the opposite and be more adventurous when they think the outlook's positive. They aim to have a good mix of investments across a variety of sectors, credit ratings (the quality of the bond) and maturities (the length of time until the bond matures) to reduce the risk of one area dominating performance. The managers want the fund to be balanced, with the potential to perform well in a variety of economic conditions.