- According to Holmes, one of the key differentiators of the Artemis Monthly Distribution Fund involves looking beyond the “usual suspects” for alternative ways it seeks to generate income within the equity and bond spaces. For example, while many peers are still reliant on government bonds for balance, the fund recognises equities and sovereigns now move much more closely together, while duration exposure has been replaced with short-dated, high-quality high-yield bonds to deliver income with low-rate sensitivity.
- The result is a fund which Passmore said is the most value-orientated among its peers, focused on financials within its equity allocation and industrials on the corporate bond side. This contrasts to the growth-heavy tech and consumer staples sectors that dominate the portfolios of other funds within the peer group.
- “This fund is not managed by committees, which means that when needed we can make very quick decisions,” said Passmore. “For example, in early 2022 when interest rates rose, we were able to shift the portfolio around and preserve capital in a way that most of our peers could not. We’re also more curious, looking where others might not when looking for income and total return.”
- While the fund does not invest in commodities as an alternative asset class to bonds and equities, allocations to gold miners and commodity-linked stocks provide a non-correlated return source and protection against inflation, which Holmes noted is rare amongst its peers.
Since launch in 2012 the fund has generated an income of about 4% per year, which Holmes believes is compelling for investors in the current environment.
Historic yield
Source: Artemis as at 31 December 2025.