Artemis Target Return Bond Fund – Changes – 14/02/2024

Dear client,

We have been notified of the below upcoming changes to the Artemis Target Return Bond Fund.

The proposed changes to the fund are:

1. Change the name to ‘Artemis Short Duration Strategic Bond Fund’

2. Change the investment objective:

From:    “To achieve a positive return of at least 2.5% above the Bank of England (BOE) base rate, after fees, on an annualised basis over rolling three-year periods.”

To:          “To generate a return that exceeds the Markit iBoxx 1-5 year £ Collateralised & Corporates Index, after fees, over rolling three-year periods, through a combination of income and capital growth, by investing in a portfolio of global debt and debt-related securities whilst maintaining an aggregate portfolio duration of below 4 years (duration is a measure of the sensitivity of the prices of bonds to changes in interest rates).”

3. Change the target benchmark from ‘Bank of England base rate’ to ‘Markit iBoxx 1-5 year £ Collateralised & Corporates Index’

4. Amend the investment policy and strategy wording to align with other Artemis fixed income funds, specifically:

• amend the wording on the Fund holding B- rated bonds to clarify that the restriction applies to the purchase of B- rated bonds. Bonds that are downgraded below this credit rating after purchase would not have to be compulsorily sold; and
• delete the restrictions on exposures to non-government issuers of investment grade securities, individual issuers of below investment grade securities or emerging market issuers.

Otherwise, the fund’s limits/restrictions remain unchanged.

5. Apply to enter the fund into the IA £ Strategic Bond sector

EGM to approve the changes:      5th March (10am, at Artemis office in London)

Effective date of changes:            18th March (if approved)

Please see attached circular for further information. 

Kind regards

Corporate Actions Team