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



Other Funds Managed

Results (%)

As of 31 May 2024 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTUX 0.88 3.04 12.39 5.51
Credit Suisse Leveraged Loan Index 1.59 4.16 13.22 6.57
As of 31 March 2024 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTUX 2.15 2.15 12.34 5.52
Credit Suisse Leveraged Loan Index 2.52 2.52 12.40 6.33

Calendar Year
Returns (%)

2019 2020 2021 2022 2023
Investor Class: ARTUX -2.02 13.57
Credit Suisse Leveraged Loan Index -1.06 13.04
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. 

Expense Ratio

  Gross Net
Semi-Annual Report 31 March 2024 1.74% 1.20%
Prospectus 30 September 2023 2.76% 1.22%

Expense Ratio Disclosure

Net expenses reflect a contractual expense limitation agreement in effect through 31 Jan 2025. See prospectus for further details. Semi-Annual Report Figure(s): Unaudited, annualized for the six-month period. Excludes Acquired Fund Fees and Expenses as described in the prospectus. 

Top 10 Holdings
(% of total portfolio as of 31 May 2024)
Delta Topco Inc 5.4
Nexus Buyer LLC 4.7
TKC Holdings Inc 2.9
Ultimate Software Group Inc 2.9
Applied Systems Inc 2.3
Fogo De Chao Inc 2.1
Surgery Center Holdings Inc 2.0
BroadStreet Partners Inc 2.0
Acrisure LLC 1.9
Amynta Agency Borrower Inc 1.9
Total 28.1%
View Full Holdings Historical Holdings
Portfolio Statistics
(as of 31 May 2024)
Number of Holdings 98
Number of Issuers 72
30-Day SEC Subsidized Yield (ARTUX) 8.23%
30-Day SEC Unsubsidized Yield (ARTUX) 7.53%
View Supplemental Statistics
Portfolio Composition
(% of total portfolio as of 31 May 2024)
Portfolio Composition chart
Floating Rate Loans 84.6
Fixed Rate Bonds 4.1
Other Floating Rate Securities 0.8
Fixed Rate Loans 0.2
Cash and Cash Equivalents 10.3
Total 100.0%
Ratings Distribution
(% as of 31 May 2024)
BBB 1.0
BB 12.4
B 71.0
CCC 11.2
D 0.8
Unrated 3.6
Total 100.0%
Sector Diversification
(% of portfolio securities as of 31 May 2024)
Basic Industry 2.2
Capital Goods 5.0
Consumer Goods 5.4
Financial Services 11.4
Health Care 5.4
Insurance 20.0
Leisure 5.9
Media 4.0
Real Estate 0.5
Retail 8.4
Services 9.5
Technology & Electronics 18.8
Telecommunications 3.5
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
  • 23Years Investment
  • Seth B. Yeager, CFA
  • Portfolio Manager
  • 21Years Investment
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. A portfolio’s environmental, social and governance (“ESG”) considerations may limit the investment opportunities available and, as a result, the portfolio may forgo certain investment opportunities and underperform portfolios that do not consider ESG factors. 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. Use of derivatives may create investment leverage and increase the likelihood of volatility and risk of loss in excess of the amount invested. International investments involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging and less developed markets, including frontier 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/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 categorizations for portfolio securities are based on ICE BofA classifications and are subject to reclassification at the investment team’s discretion.

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 determined by Artisan Partners based on ratings from S&P and/or Moody's, which typically range from AAA (highest) to D (lowest). For securities rated by both S&P and Moody's, the higher of the two ratings was used, and those not rated by either agency have been categorized as Unrated/Not Rated. Ratings are applicable to the underlying portfolio securities, but not the portfolio itself, and are subject to change. 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.