Artemis Corporate Bond Class I - Accumulation (GBP)

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, the fund has a relatively short track record, but our conviction lies with the fund manager who has a very long track record. Since launch, Snowden has continued his good record and the fund has outperformed, although 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.

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.

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. 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.