The exit of co-managers Juan Valenzuela (pictured, left) and Rebecca Young (pictured, right) from Artemis has prompted a mixed response among fund selectors, who are generally optimistic about the fixed income team’s prospects following the manager overhaul.
The changes to the team of the £1bn Artemis Strategic Bond fund was announced on Wednesday, shifting management of the strategy to investment managers Grace Le and David Ennett, as well as Liam O’Donnell who joins from Abrdn.
See also: £1bn Artemis Strategic Bond co-managers exit as fixed income team sees overhaul
Ben Yearsley, investment director at Fairview Investing, said: “It’s a very good team at Artemis. Head of the team Stephen Snowden is excellent. This fund hasn’t really been firing since the new managers took over a couple of years ago and so change was probably needed to be honest.”
Kelly Prior, investment manager at Columbia Threadneedle, added: “Given the effort that Artemis has put into marketing this pairing as the replacement portfolio leads over the last two years it was a surprise to see them depart.
“This was not a strategy that we have been invested in, but we have been monitoring how the team have been working and the positioning of their portfolio, and they have made some good calls over those two years, with performance being reasonable relative to the peer group over that time.”
Darius McDermott, managing director of FundCalibre said there are no plans to change the strategy’s Elite rating.
“Juan Valenzuela was one of several fixed income team members who left Kames to join Artemis in 2019, McDermoot said. “He has added another layer of experience to the fixed income team that runs the Elite Rated Artemis Target Return Bond fund, but Steve Snowden has always been front of house on the strategy and lead manager.
“Snowden is one of the UK’s most experienced fixed income managers with an impressive long-term track record. We are also encouraged that Artemis has brought Liam O’Donnell in as a new addition to the fixed income team with responsibility for rates and macro.”
“Both O’Donnell and Jack Holmes, who currently co-manages the Elite Radar Artemis Global High Yield Bond fund, will join Snowden in managing Target Return Bond significantly bolstering the team. O’Donnell brings another dimension to the fund in what is a complex and challenging macro environment – and Holmes will deepen the team’s experience and perspective.
“Overall, we support the changes and retain the Elite Rating on the fund. This is an excellent strategy for those who dislike volatility but want a better return than cash. It has a solid, flexible process combined with a tight risk management framework.”
