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23rd July 2026

Artemis: High Yield Happenings: The pragmatic way to boost returns from your cash allocation

Last time, I discussed one of the ways in which short-dated high yield can act as a great diversifier to a balanced portfolio of equities and longer-dated bonds.

This time, I’m going to talk about a different approach: using short-dated high yield as a boost to a cash allocation. The obvious use case for this is where cash is a structural part of a portfolio and where long-term returns matter. In this scenario, adding some short-dated high yield can have powerful results.

The chart below compares the returns from a 100% cash with those from a combined 80% cash + 20% short-dated high-yield portfolio since 1996 (when index data began). While there is obviously some additional volatility, the additional returns are substantial – and the combined portfolio still has an annualised volatility of just 1.4%.

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