Artisan Floating Rate Fund Advisor Shares (APDUX)

Overview

The fund is strategically focused on investing a significant portion of its assets in floating rate debt instruments alongside other investments that replicate or enable the achievement of a floating rate income. With a mandate to allocate no less than 80% of its net assets, plus any borrowings for investment purposes, into such financial instruments, the fund aims to capitalize on the floating rate's adaptive nature to interest rate variations. Primarily targeting instruments rated below investment grade, familiarly referred to as "junk bonds," the fund navigates the higher yield, higher risk segment of the debt market, seeking to optimize returns for investors willing to engage with riskier assets.

Products and Services

• Floating Rate Debt Instruments

  These are the core investments of the fund, comprising loans and bonds with variable interest rates that adjust in alignment with market interest rates. By investing in floating rate debt, the fund aims to mitigate the impact of rising interest rates on the portfolio's value, offering a potentially safer haven against inflationary periods compared to fixed-rate debt instruments.

• Junk Bonds

  Refers to high-yield or non-investment grade bonds that carry a higher risk of default but offer higher potential returns as compensation. These bonds, integral to the fund's investment strategy, are targeted for their potential to deliver above-market returns, capitalizing on the fund’s appetite for higher-risk, higher-reward assets.

• Economic Equivalents of Floating Rate Debt Instruments

  This category includes derivatives and other financial instruments that mimic the characteristics and behavior of floating rate debt, enabling the fund to achieve a floating rate of income through alternative investment avenues. This diversification strategy is designed to enhance the fund’s ability to capture income while managing risk associated with credit and interest rate fluctuations.