Artisan Floating Rate Fund Institutional Shares (APHUX)

Overview

The fund is designed to cater to investors seeking exposure to floating rate debt instruments, specifically focusing on generating income from investments that have a variable interest rate. It is committed to investing a substantial portion of its assets in these financial instruments, ensuring a significant degree of its portfolio is aligned with its core investment objective. To achieve its aim, the fund strategically targets investments in floating rate debt and related instruments that offer an equivalent economic benefit or facilitate the attainment of a floating interest rate income stream. A distinct feature of the fund is its preference for assets that are classified as below investment grade at the time of purchase. These assets, often referred to as "junk bonds," are considered riskier than investment-grade securities but may offer higher yields, aligning with the fund's income-generating goals.

Products and Services

• Floating Rate Debt Instruments

These are the primary vehicles through which the fund seeks to generate income. Floating rate debt instruments are loans or bonds that have a variable interest rate, which can lead to changes in payout returns in response to shifts in market interest rates. This quality makes them an attractive option for income-seeking investors in varying interest rate environments.

• Junk Bonds (Below Investment Grade Bonds)

The fund focuses significantly on investing in bonds that are rated below investment grade, often referred to as "junk bonds." Despite their higher risk due to the lower credit quality of the issuers, these bonds can provide higher yields compared to safer, investment-grade bonds. This investment strategy is aimed at investors who are willing to accept higher risks for the potential of higher returns. By purchasing these lower-rated assets, the fund positions itself to achieve a floating rate of income, albeit with a careful consideration of the associated risk-return trade-off.