Investment Process

The investment team seeks to generate appealing risk-adjusted returns, investing along the corporate capital structure in bonds, loans and other securities of leveraged corporate issuers. The team’s aim is to take advantage of the illiquidity premium and the asymmetric risk profile in credit investments.

Business Quality

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

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 30 June 2024 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Advisor Class: APDFX 1.21 2.57 11.22 2.90 5.66 5.94 6.02
ICE BofA US High Yield Index 1.09 2.62 10.45 1.65 3.73 4.21 4.38
As of 30 June 2024 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Advisor Class: APDFX 1.21 2.57 11.22 2.90 5.66 5.94 6.02
ICE BofA US High Yield Index 1.09 2.62 10.45 1.65 3.73 4.21 4.38

Calendar Year Returns (%)

2019 2020 2021 2022 2023
Advisor Class: APDFX 14.10 10.20 6.29 -9.68 15.87
ICE BofA US High Yield Index 14.41 6.17 5.36 -11.22 13.46
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. Unlike the Index, Artisan High Income Fund may hold loans and other security types. At times, this causes material differences in relative performance. 

Expense Ratio

Semi-Annual Report 31 March 2024 0.78%
Prospectus 30 September 2023 0.80%

Expense Ratio Disclosure

See prospectus for further details. Semi-Annual Report Figure(s): Unaudited, annualized for the six-month period. 

Top 10 Holdings
(% of total portfolio as of 30 June 2024)
The Ardonagh Group 4.4
Charter Communications Inc 4.2
Carnival Corp 3.7
NCL Corp Ltd 3.6
Virgin Media Secured Finance PLC 3.0
VistaJet Ltd 3.0
Medline Industries Inc 2.9
TKC Holdings Inc 2.8
Acrisure LLC 2.7
Altice France 2.0
Total 32.3%
View Full Holdings Historical Holdings
Portfolio Statistics
(as of 30 June 2024)
Number of Holdings 244
Number of Issuers 128
30-Day SEC Subsidized Yield (APDFX) 8.17%
30-Day SEC Unsubsidized Yield (APDFX) 8.17%
View Supplemental Statistics
Portfolio Composition
(% of total portfolio as of 30 June 2024)
Portfolio Composition chart
Corporate Bonds 74.0
Bank Loans 16.4
Equities 0.1
Cash and Cash Equivalents 9.5
Total 100.0%
Ratings Distribution
(% as of 30 June 2024)
BBB 3.5
BB 31.3
B 42.9
CCC and Below 21.4
Unrated 0.9
Total 100.0%
Maturity Distribution
(% of fixed income securities as of 30 June 2024)
< 1 year 1.5
1 - <3 years 10.3
3 - <5 years 37.8
5 - <7 years 37.4
7 - <10 years 11.4
10+ years 1.6
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
  • 24Years Investment
  • Investing Across the Credit Spectrum Podcast feat. Bryan Krug
  • Listen Now
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. 

Closed to most new investors. For eligibility requirements see statutory prospectus.

Performance Source: Artisan Partners/ICE BofA. Data & Statistics Sources: Artisan Partners/Bloomberg. Unless otherwise indicated, percentages shown are of total fixed income securities in the portfolio. Annual turnover is reported as of the Fund’s fiscal year end. 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. 

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. Maturity Distribution represents the weighted average of the maturity dates of the securities held in the Portfolio. Free Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. Treasury futures represented net notional exposure of 0.00% of net assets. 

ICE BofA US High Yield Index measures the performance of below investment grade $US-denominated corporate bonds publicly issued in the US market. The index(es) are unmanaged; include net reinvested dividends; do not reflect fees or expenses; and are not available for direct investment. 

Source ICE Data Indices, LLC is used with permission. ICE® is a registered trademark of ICE Data Indices, LLC or its affiliates and BofA® is a registered trademark of Bank of America Corporation licensed by Bank of America Corporation and its affiliates ("BofA"), and may not be used without BofA's prior written approval. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and, along with the ICE BofA trademarks, has been licensed for use by Artisan Partners Limited Partnership. ICE Data and its Third Party Suppliers accept no liability in connection with the use of such index data or marks. See for a full copy of the Disclaimer.