Artemis Short-Duration Strategic Bond Fund

The fund aims to generate a return that exceeds the Markit iBoxx 1-5 year £ Collateralised & Corporates Index, after fees, over rolling three-year periods.

A core allocation to investment-grade corporate bonds is supplemented by flexible allocations to government and high-yield bonds. By shifting between different types of bonds as the economic cycle turns and as market conditions change, the managers aim to preserve capital in difficult times and to profit when conditions improve. 

• Short duration: this fund invests in ‘short duration’ bonds (typical duration range of -2 to +4 years).
• Low volatility: shorter duration bonds are significantly less volatile than their longer-dated equivalents.
• An attractive source of income: the yields generated by short-dated bonds beat returns on cash and the regular cashflows generated when they mature provide a natural stream of income. 
• Experienced team: Managed by Stephen Snowden, Liam O'Donnell and Jack Holmes. Each manager is an expert in his field and draws upon the expertise of Artemis’ wider fixed-income team, which has a strong record of delivering outperformance across the bond market. 
• Flexible approach: short-dated investment-grade bonds form the fund’s core but its managers diversify risk and generate returns across government, investment-grade and high-yield bond markets.
• Diversified, low-risk access to fixed income the fund is diversified by sector, by market and by quality. The managers have the flexibility to use derivatives (such as credit default swaps or futures) with the aim of enhancing performance, reducing risk and managing the fund’s duration.

Fund in 5ive

Fund manager Stephen Snowden looks at the fund from 5 angles including the asset class and investment process and why he believes investors are now looking for more flexible short-duration exposure.