Artemis Global Growth Fund
Fund Manager's Comment
Data as at 30 December 2011
2011 was a poor year for global equities and an indifferent one for our fund. The fund’s net asset value fell by 7.2% compared with a 6.6% decline in its benchmark, the MSCI World AC index. Of particular note were the significant variations in regional performance, with emerging market equities down 20%, Europe down 14% but US equities roughly unchanged.
This pattern of regional performance was a significant headwind for the fund: on average the fund was around 15% underweight North American equities and overweight emerging markets by a similar amount. Fortunately, our fund had its usual batch of significant stock-specific winners to offset this negative asset allocation contribution almost entirely. This was particularly true in US equities, where the strong performance of our holdings in companies like retailer Macy’s, biotech company Biogen Idec, Frontier Oil, Goodyear Tire & Rubber, US Bancorp (and many others) boosted performance materially. Unsurprisingly, the list of significant detractors from performance is littered with emerging market stocks (e.g. CNOOC, China Yurun, China Mengniu Dairy and Vale).
In spite of much talk of doom and gloom in emerging markets in general and China in particular, we continue to find a large number of attractive stock ideas in this part of the market. As a result we have used the poor price action to boost our emerging market exposure to 28%, in particular in countries like China, Turkey and Thailand. At 25% our exposure to Europe is in line with its benchmark weighting. That is because the negatives of an impending recession and unresolved peripheral European public finance are offset by cheap valuations and severe investor neglect. A third of the fund remains invested in North America, a 17% underweight, but in our opinion a fair reflection of the proportion of today’s best investment ideas available in this region.
In conclusion we are encouraged that in a year of significant natural and man-made disasters and recurring market turmoil it was possible to find a good spread of stock-specific winners. And whilst many economic issues remain unresolved, we see no evidence that focussing on individual companies’ financial characteristics should not be effective.
Fund Manager
Peter Saacke
Manager of the Artemis Global Growth Fund Fund since 1 January 2004
Awards
Global Growth PDFKey Facts
| IMA Sector | Global Growth |
|---|---|
| Sedol Number | 0679574 |
| Fund Size (offer basis) | £118.9m |
| Historic yield | 0.10% |
| Unit offer price | 107.63p |
| Unit bid price | 101.72p |
| Valuation (UK business days) | 12:00 |
| Minimum lump sum investment | £1,000 |
|---|---|
| Minimum monthly investment | £50 |
| Launch | 29 June 1990 |
| Launch price | 50p |
| Preliminary charge | 5.25% |
| Annual Management Fee | 1.50% |
| Unit type | Accumulation |
| Accumulation date | 7 June |
| Total Expense Ratio | 1.64% |
Data as at 30 December 2011.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| Global Growth Fund (TR)† | 114.2 | -4.1 | 22.5 | -7.2 | -10.1 |
| MSCI AC World NR GBP†*** | 261.5** | 9.6** | 24.5** | -6.7 | -8.6 |
| Sector Average | 238.6 | 5.8 | 28.5 | -9.4 | -9.7 |
| Position in Sector | 39 | 119 | 125 | 46 | 105 |
| Funds in Sector | 40 | 145 | 179 | 197 | 207 |
| Quartile | 4 | 4 | 3 | 1 | 3 |
Please remember that past performance is not a guide to the future.
* Data from 29 June 1990. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 30 December 2011. All figures show total returns. †Percentage Growth. Sector is IMA Global Growth.
Percentage Growth
Artemis Global Growth Fund Fund 12 Months to 31 December 2009
| 2011 | 2010 | 2009 | 2008 | 2007 |
|---|---|---|---|---|
| -7.2 | 21.8 | 8.3 | -36.3 | 22.8 |
Source: Lipper Limited, bid to bid in sterling with net income reinvested. All figures show total returns.
Value of £1,000 invested at Launch to 30 December 2011.
Data from 29 June 1990. Source Lipper Limited, bid to bid in sterling with net income reinvested to 30 December 2011.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| Betsson | 2.4% |
|---|---|
| US Bancorp | 2.2% |
| Industrial and Commercial Bank of China | 2.0% |
| Macys | 1.8% |
| China Construction Bank | 1.8% |
| China Mobile | 1.8% |
| Wal-Mart | 1.6% |
| Novartis | 1.5% |
| Gazprom | 1.5% |
| McKesson | 1.4% |
* Without cash.
Source: Internal.
Market Sector Split*
| Banks | 11.9% |
|---|---|
| Energy | 9.4% |
| Telecommunication Services | 8.7% |
| Pharmaceuticals, Biotechnology & Life Sciences | 8.5% |
| Utilities | 7.1% |
| Materials | 6.5% |
| Capital Goods | 5.8% |
| Consumer Services | 5.1% |
| Retailing | 4.6% |
| Other | 32.4% |
* Without cash.
Source: Internal.
Risk Warning
Issued by Artemis Fund Managers Ltd which is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk), 25 The North Colonnade, Canary Wharf, London E14 5HS and is a member of the IMA. Artemis Fund Managers Ltd is a member of the Artemis Marketing Group. We only market our own unit trusts. The value of an investment, and any income from it, can fall as well as rise as result of market and currency fluctuations and you may not get back the amount originally invested.
A significant proportion of the Fund may be invested in emerging markets. Investments in emerging markets can involve greater risk than is customarily associated with more mature markets meaning above average price movements both positive and negative can be expected.
All data is sourced internally unless otherwise stated.
The historic yield reflects distributions declared over the past twelve months as a percentage of the mid-market unit price, as at the date shown. It does not include any preliminary charge and investors may be subject to tax on their distributions.
