Artemis Capital Fund
Fund Manager's Comment
Data as at 30 September 2010
As the year has worn on, the rehabilitation of banks' balance sheets has become more evident. The Royal Bank of Scotland issued its first covered bonds (for risk averse investors) earlier in the year, sold about £800m of corporate loans in August and in September issued its first tranche of mortgage-backed securities (£4.7b of them) since the financial crisis began. Reflecting these improved balance sheets, the yield on bank bonds has been trending down. With Lloyds, HSBC and Royal Bank of Scotland all in our top 10 holdings, we feel the fund should benefit from this improved backdrop. In the meantime, markets have been regarding glasses as half full, rather than half empty, and so many of our mid-cap industrial stocks have been helping performance. With valuations on these stocks still quite low, we are inclined to keep hold of these positions.
Awards
Capital PDFKey Facts
| IMA Sector | UK All Companies |
|---|---|
| Sedol Number | 0679552 |
| Fund Size (offer basis) | £388.4m |
| Historic yield | 1.20% |
| Unit offer price | 773.07p |
| Unit bid price | 731.23p |
| Valuation (UK business days) | 12:00 |
| Minimum lump sum investment | £1,000 |
|---|---|
| Minimum monthly investment | £50 |
| Launch | 23 December 1986 |
| Launch price | 50p |
| Preliminary charge | 5.00% |
| Annual Management Fee | 1.50% |
| Unit type | Accumulation |
| Accumulation date | 7 June |
| Total Expense Ratio | 1.66% |
Data as at 30 September 2010.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| Capital Fund (TR)† | 1439.4 | -1.2 | -23.7 | 11.6 | -0.8 |
| FTSE All-Share (TR)† | 736.8 | 24.7 | -3.1 | 12.5 | 0.2 |
| FTSE 100 (TR)† | 723.7 | 21.9 | -3.5 | 11.8 | -0.6 |
| Sector Average | 628.3 | 19.5 | -5.3 | 11.9 | 2.2 |
| Position in Sector | 4 | 223 | 268 | 123 | 250 |
| Funds in Sector | 43 | 235 | 279 | 300 | 303 |
| Quartile | 1 | 4 | 4 | 2 | 4 |
Please remember that past performance is not a guide to the future.
* Data from 23 December 1986. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 30 September 2010. All figures show total returns. †Percentage Growth. Sector is IMA UK All Companies.
Percentage Growth
Artemis Capital Fund Fund 12 Months to 31 December 2009
| 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|
| 11.6 | 3.7 | -34.1 | 11.8 | 15.8 |
Further Discrete Performance periods.
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 September 2010.
Data from 23 December 1986. Source Lipper Limited, bid to bid in sterling with net income reinvested to 30 September 2010.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| BP | 7.3% |
|---|---|
| Lloyds Banking Group | 6.6% |
| HSBC | 6.2% |
| GKN | 5.5% |
| BT Group | 4.3% |
| Cookson Group | 4.2% |
| Royal Bank of Scotland | 3.8% |
| AstraZeneca | 3.6% |
| IMI | 3.2% |
| IG Group | 3.0% |
* Without cash.
Source: Internal.
Market Sector Split*
| Banks | 19.1% |
|---|---|
| Industrial Goods & Services | 12.8% |
| Oil & Gas | 12.1% |
| Financial Services | 8.1% |
| Media | 7.7% |
| Basic Resources | 6.4% |
| Automobiles & Parts | 6.0% |
| Telecommunications | 4.9% |
| Healthcare | 3.7% |
| Other | 19.2% |
* Without cash.
Sector classification: FTSE Acturaries
Source: Internal.
% Variance†*
| GKN | 5.3% |
|---|---|
| Lloyds Banking Group | 4.8% |
| Cookson Group | 4.1% |
| BT | 3.6% |
| Royal Bank of Scotland | 3.4% |
| IMI | 3.1% |
| IG Group | 2.9% |
| BP | 2.5% |
| Total | 2.5% |
| International Personal Finance | 2.1% |
† Positive variance between stock % held in the Fund versus FTSE All-Share. 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.
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.
