Investment Process

The investment team will employ a fundamental investment process to construct a high-conviction portfolio comprised primarily of floating rate debt instruments that are attractively valued, including, without limitation, floating rate leveraged loans, which could include, among other types of loans, senior secured loans, unsecured loans, second lien loans, bridge loans and junior loans. The team’s aim is to invest across the credit quality spectrum in various industries and issuance sizes to construct a portfolio that can generate appealing risk-adjusted returns.

Business Quality

  • Qualitative industry analysis
  • Consider ESG-related risk factors
  • Examine management decision-making history

Financial Strength & Flexibility

  • Free cash flow analysis
  • Corporate structure review
  • Capital structure review

Downside Analysis

  • Conservative financial projections
  • Competitive dynamics
  • Capital structure position
  • Enterprise value support

Value Identification

  • Credit improvement opportunities
  • Relative value within the capital structure
  • Credit cycle awareness
  • Catalysts with optionality
  • Dislocation exploitation

In-depth Investment Process

 

Now Playing:

Other Funds Managed

Investment
Results (%)

As of 31 July 2022 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTUX 1.96 -3.26 -3.55
Credit Suisse Leveraged Loan Index 1.87 -2.66 -2.08
As of 30 June 2022 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTUX -4.28 -5.12 -5.41
Credit Suisse Leveraged Loan Index -4.35 -4.45 -3.87
Returns for periods less than one year are not annualized. 

Past performance does not guarantee and is not a reliable indicator of future results. Investment returns and principal values will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown. The performance information shown does not reflect the deduction of a 2% redemption fee on shares held by an investor for 90 days or less and, if reflected, the fee would reduce the performance quoted. The Fund's returns may vary greatly over shorter periods due to the limited operating period since inception. 

Expense Ratio

  Gross Net
Semi-Annual Report 31 March 2022 14.76% 1.20%
Prospectus 15 November 2021 1.35% 1.21%

Expense Ratio Disclosure

Net expenses reflect a contractual expense limitation agreement in effect through 31 Jan 2023. Prospectus Figures: Includes estimated expenses for the current fiscal year. See prospectus for further details. Semi-Annual Report figures: Unaudited, for the period from commencement of operations 1 Dec 2021 through 31 Mar 2022.  

Top 10 Holdings
(% of total portfolio as of 31 July 2022)
KUEHG Corp 5.0
Gridiron Fiber Corp 4.4
Edelman Financial Engines Center LLC 3.7
AssuredPartners Inc 3.7
SRS Distribution Inc 3.3
USI Inc 3.2
Employbridge LLC 2.9
Renaissance Learning Inc 2.8
TKC Holdings Inc 2.8
Ancestry.com Operations Inc 2.6
Total 34.4%
View Full Holdings Historical Holdings
Portfolio Statistics
(as of 31 July 2022)
Number of Holdings 81
Number of Issuers 64
30-Day SEC Yield (ARTUX) 5.01%
Portfolio Composition
(% of total portfolio as of 31 July 2022)
Portfolio Composition chart
Floating Rate Loans 87.0
Fixed Rate Bonds 3.4
Other Floating Rate Securities 3.2
Fixed Rate Loans 0.4
Cash and Cash Equivalents 6.0
Total 100.0%
Ratings Distribution
(% as of 31 July 2022)
BBB 3.9
BB 13.4
B 73.9
CCC 7.3
Unrated 1.5
Total 100.0%
Sector Diversification
(% of portfolio securities as of 31 July 2022)
Automotive 0.6
Banking
Basic Industry 1.6
Capital Goods 10.2
Consumer Goods 5.0
Energy
Financial Services 12.5
Health Care 1.0
Insurance 12.0
Leisure 6.3
Media 3.9
Real Estate
Retail 3.4
Services 18.9
Technology & Electronics 18.8
Telecommunications 4.7
Transportation 1.1
Utility
Other
Total 100.0%
The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
  • Bryan C. Krug, CFA
  • Portfolio Manager
  • 22Years Investment
    Experience
  • Seth B. Yeager, CFA
  • Portfolio Manager
  • 19Years Investment
    Experience
Current and future portfolio holdings are subject to risk. The value of portfolio securities selected by the investment team may rise or fall in response to company, market, economic, political, regulatory or other news, at times greater than the market or benchmark index. Fixed income securities carry interest rate risk and credit risk for both the issuer and counterparty and investors may lose principal value. In general, when interest rates rise, fixed income values fall. High income securities (junk bonds) are speculative, experience greater price volatility and have a higher degree of credit and liquidity risk than bonds with a higher credit rating. The portfolio typically invests a significant portion of its assets in lower-rated high income securities (e.g., CCC). Loans carry risks including insolvency of the borrower, lending bank or other intermediary. Loans may be secured, unsecured, or not fully collateralized, trade infrequently, experience delayed settlement, and be subject to resale restrictions. Private placement and restricted securities may not be easily sold due to resale restrictions and are more difficult to value. The portfolio’s use of derivative instruments may create additional leverage and involve risks different from, or greater than, the risks associated with investing in more traditional investments. International investments involve special risks that may in particular cause a loss in principal, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging markets. These risks are discussed in the prospectus. Please read it carefully before you invest or send money. 

Performance Source: Artisan Partners/Credit Suisse. Data & Statistics Sources: Artisan Partners/S&P/Moody’s/Bloomberg. Unless otherwise indicated, percentages shown are of total fixed income securities in the portfolio. Portfolio statistics are intended to provide a general view of the entire portfolio, or Index, at a certain point in time and are calculated using information obtained from various data sources. Portfolio statistics include accrued interest unless otherwise stated and may vary from the official books and records of the Fund. Artisan Partners may exclude outlier data and certain securities which lack applicable attributes, such as private securities when calculating portfolio statistics. If information is unavailable for a particular security Artisan may use data from a related security to calculate portfolio statistics. Unless otherwise noted, portfolio statistics represent the weighted average of the portfolio’s fixed-income securities and exclude cash and cash equivalents. For the purpose of determining the Fund's holdings, securities of the same issuer are aggregated to determine the weight in the Fund. Totals may not sum due to rounding. 

Sector exposure percentages reflect sector designations as currently classified by ICE BofA. 

30-Day SEC Yield is based on a formula specified by the SEC that calculates a fund's hypothetical annualized income, as a percentage of its assets. This hypothetical yield will differ from the fund's actual experience and as a result, income distributions from the fund may be higher or lower. Credit Quality ratings are from S&P and/or Moody's. Ratings typically range from AAA (highest) to D (lowest) and are subject to change. The ratings apply to underlying holdings of the Portfolio and not the Portfolio itself. If securities are rated by both agencies, the higher rating was used. Securities not rated by S&P or Moody's are categorized as Unrated/Not Rated. Free Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. 

Credit Suisse (CS) Leveraged Loan Index is an unmanaged market value-weighted index designed to mirror the investable universe of the US dollar-denominated leveraged loan market. New issues are added to the index on their effective date if they qualify according to the following criteria: loan facilities must be rated “BB” or lower; only fully funded term loan facilities are included; and issuers must be domiciled in developed countries. The index(es) are unmanaged; include net reinvested dividends; do not reflect fees or expenses; and are not available for direct investment.