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High Yield Corps Artisan High Income Fund 12/31/2017 Fact Sheet ARTFX High yield bond yields and spreads compressed approximately 40bps in December. Since the mid-February peak in spreads, high yield bond yields are nearly 4 percentage points lower and spreads are roughly 450bps tighter. There was no bigger driver this year for credit markets than improving fundamentals in the commodity sectors. In December, the energy sector received an additional boost from OPEC’s agreement to curtail production. Non-investment grade credit is clearly richer than it was coming into 2016 given the robust returns and degree of spread tightening that occurred. However, we believe the risk/reward opportunity in the asset class is still superior to most other areas of fixed income where yields remain quite low and possess greater interest rate risk. In that type of environment, we believe the idiosyncratic and focused nature of our portfolio is well positioned.
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FACT SHEET | DECEMBER 31, 2016
Non-Agency RMBS 43.68%
Tax-ExemptMunicipal 24.99%
Taxable Municipal 11.24%
CMBS 10.09%
CLOs 4.28%
Cash 2.14%
U.S.Treasuries 1.88%
Corporates 1.70%
http://ptiafunds.com/documents/ptiax_factsheet.pdf
No current commentary available as of 1/13/2017
High Yield Corps
Artisan High Income Fund 12/31/2017 Fact Sheet ARTFX
High yield bond yields and spreads compressed approximately 40bps in December. Since the mid-February peak in spreads, high yield bond yields are nearly 4 percentage points lower and spreads are roughly 450bps tighter. There was no bigger driver this year for credit markets than improving fundamentals in the commodity sectors. In December, the energy sector received an additional boost from OPEC’s agreement to curtail production.
Non-investment grade credit is clearly richer than it was coming into 2016 given the robust returns and degree of spread tightening that occurred. However, we believe the risk/reward opportunity in the asset class is still superior to most other areas of fixed income where yields remain quite low and possess greater interest rate risk. In that type of environment, we believe the idiosyncratic and focused nature of our portfolio is well positioned.
Corporate Bonds 74.9
Bank Loans 20.0
Equities 0.6
Cash and Equivalents 4.5
https://www.artisanpartners.com/content/dam/documents/monthly-commentary/vr/2016/dec/ARTFX-APDFX-MCommentary-1216-vR.pdf