Artemis UK Growth Fund
Fund Manager's Comment
Data as at 30 June 2010
The importance of owning companies that have conservative accounts was made in June when Connaught’s shares did a good impersonation of a high cliff diver from Acapulco. They lost two-thirds of their value as a result of a profit warning and worries about some of the company’s accounting policies. We will see how bad this is when Deloittes, the accountants, report on them in the near future. But two CEOs and one FD have already paid the price. We owned none of these shares and we have said for some time that it was best to avoid them. By side-stepping stocks like these, the fund outperformed the market again by 2.4% although in absolute terms we fell by 2.4%. I would prefer to say that we are making you absolute money. But in a market that falls, this is difficult to do in a fund such as this.
Once again it was our large underweight position in BP and indeed Barclays that helped us outperform in June. The other contributors to the outperformance were our investments in companies that do the vast majority of their business outside the UK. Weir Group, a supplier of pumps to the mining industry, and Aggreko, a provider of power to countries which are short of it, all did well. So did Croda, a specialist chemical company with clients all around the world. In general terms I am bearish about retailers but we have two in the portfolio – Halfords and Majestic Wine – and they are both doing rather well.
Fund Manager
Tim Steer
Manager of the Artemis UK Growth Fund Fund since 1 July 2009
Awards
UK Growth PDFKey Facts
| IMA Sector | UK All Companies |
|---|---|
| Sedol Number | 0258326 |
| Fund Size (offer basis) | £291.6m |
| Historic yield | 1.50% |
| Unit offer price | 237.85p |
| Unit bid price | 223.64p |
| Valuation (UK business days) | 12:00 |
| Minimum lump sum investment | £1,000 |
|---|---|
| Minimum monthly investment | £50 |
| Launch | 3 April 1998 |
| Launch price | 100p |
| Preliminary charge | 5.00% |
| Annual Management Fee | 1.50% |
| Unit type | Accumulation |
| Accumulation date | 28 February |
| Total Expense Ratio | 1.60% |
Data as at 30 June 2010.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| UK Growth Fund (TR)† | 134.8 | 5.6 | -25.9 | 17.1 | -0.8 |
| FTSE All-Share (TR)† | 31.8 | 18.7 | -16.2 | 21.1 | -6.2 |
| FTSE 100 (TR)† | 20.0 | 15.8 | -16.2 | 19.8 | -7.4 |
| Sector Average | 31.7 | 13.6 | -18.8 | 19.7 | -4.3 |
| Position in Sector | 4 | 188 | 240 | 213 | 42 |
| Funds in Sector | 123 | 235 | 278 | 301 | 305 |
| Quartile | 1 | 4 | 4 | 3 | 1 |
Please remember that past performance is not a guide to the future.
* Data from 3 April 1998. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 30 June 2010. All figures show total returns. †Percentage Growth. Sector is IMA UK All Companies.
Percentage Growth
Artemis UK Growth Fund Fund 12 Months to 31 December 2009
| 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|
| 17.1 | -20.2 | -20.7 | 19.8 | 19.0 |
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 June 2010.
Data from 3 April 1998. Source Lipper Limited, bid to bid in sterling with net income reinvested to 30 June 2010.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| HSBC | 5.6% |
|---|---|
| Weir Group | 4.6% |
| Babcock International | 4.4% |
| Rio Tinto | 3.9% |
| Halfords | 3.4% |
| Rolls Royce | 3.1% |
| Petrofac | 3.1% |
| BHP Billiton | 3.0% |
| Vodafone | 3.0% |
| Standard Chartered | 2.6% |
* Without cash.
Source: Internal.
Market Sector Split*
| Industrial Goods & Services | 24.3% |
|---|---|
| Basic Resources | 11.9% |
| Retail | 10.0% |
| Banks | 9.2% |
| Oil & Gas | 7.5% |
| Technology | 6.6% |
| Healthcare | 6.5% |
| Travel & Leisure | 5.9% |
| Personal & Household Goods | 4.3% |
| Other | 13.8% |
* Without cash.
Sector classification: FTSE Acturaries
Source: Internal.
% Variance†*
| Weir Group | 4.5% |
|---|---|
| Babcock International | 4.3% |
| Halfords | 3.4% |
| Petrofac | 2.9% |
| Majestic Wine | 2.5% |
| Rolls Royce | 2.4% |
| Sportingbet | 2.4% |
| Croda | 2.4% |
| Spirent Communications | 2.3% |
| easyJet | 2.2% |
† Positive variance between stock % held in the Fund versus FTSE All-Share.
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. Investment in the securities of smaller and/or medium sized companies can involve greater risk than is customarily associated with investment in larger, more established companies. The market for securities in smaller companies is often less liquid than that for securities in larger companies, 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.
