Artisan High Income Fund (APDFX)

Overview

The company operates in the financial sector, with a particular focus on investment services tailored towards high-yield, high-risk bonds. These financial instruments are typically classified as "junk bonds," which offer higher interest rates in return for a greater risk of default. The company's investment strategy is to target bonds that are rated below investment grade by major rating agencies such as Standard & Poor's Rating Services (S&P), Fitch, Inc., or Moody's Investors Service, Inc. This signifies that the fund primarily aims to invest in bonds that are rated below BBB- by S&P or Fitch, or below Baa3 by Moody's. Additionally, it can also include instruments that, although unrated, are deemed by Artisan Partners to possess a comparable level of quality to those officially rated. This strategy inherently involves assuming a higher level of risk in anticipation of potentially higher returns, targeting investors who are more comfortable with such an investment profile.

Products and Services

The company specializes in offering investment opportunities primarily centered around high-yield, high-risk bonds. Below is a listing of the types of financial instruments it focuses on, alongside explanations for each:

• Below Investment Grade Bonds: The fund primarily invests in bonds that are rated below investment grade. These are bonds rated below BBB- by S&P or Fitch, or below Baa3 by Moody's. These bonds carry a higher risk of default but offer higher yields to compensate investors for the increased risk.
• Unrated Instruments of Comparable Quality: In addition to rated instruments, the fund also considers investing in unrated bonds that Artisan Partners determines to be of similar quality to the rated ones. These instruments may not have an official rating by a National Recognized Statistical Rating Organization (NRSRO), but they are assessed internally to ensure they meet the fund’s investment quality criteria.