Artemis Income Fund
Fund Manager's Comment
Data as at 30 September 2010
The market registered a strong month. But despite widespread enthusiasm for the attraction of dividend yields, cyclicals and “risk-on” assets dominated the performance, leaving income looking somewhat leaden-footed. Although economic news was less bad than feared, investors seemed intent on seeing the sunny side of life. For example the possible return of quantitative easing was heralded as a positive, rather than as raising a question mark over the ability of economies to grow unaided in an environment of very low interest rates.
We suspect that certain areas of the market are “ahead of the economy”. Our activity was low. Most notable were additions to HSBC and BP, the sale of Prudential and a reduction in Lloyds after its recent good run.
Awards
Income PDFKey Facts
| IMA Sector | UK Equity Income |
|---|---|
| Sedol Number | 0657246 |
| Fund Size (offer basis) | £3376.4m |
| Historic yield | 4.4% |
| Unit offer price (distribution units) | 170.45p |
| Unit bid price (distribution units) | 160.47p |
| Unit offer price (accumulation units) | 231.80p |
| Unit bid price (accumulation units) | 218.22p |
| Valuation (UK business days) | 12:00 |
| Minimum lump sum investment | £1,000 |
|---|---|
| Minimum monthly investment | £50 |
| Launch | 6 June 2000 |
| Launch price | 100p |
| Preliminary charge | 5.25% |
| Annual Management Fee | 1.50% |
| Unit type | Distribution & Accumulation |
| Dividend pay dates | 31 December, 30 June |
| Total Expense Ratio | 1.55% |
Data as at 30 September 2010.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| Income Fund (TR)† | 147.1 | 26.0 | -1.2 | 11.4 | 2.1 |
| FTSE All-Share (TR)† | 29.4 | 24.7 | -3.1 | 12.5 | 0.2 |
| FTSE 100 (TR)† | 20.2 | 21.9 | -3.5 | 11.8 | -0.6 |
| Sector Average | 41.9 | 13.6 | -8.1 | 9.8 | 1.8 |
| Position in Sector | 3 | 21 | 18 | 32 | 41 |
| Funds in Sector | 54 | 77 | 88 | 100 | 101 |
| Quartile | 1 | 2 | 1 | 2 | 2 |
Please remember that past performance is not a guide to the future.
* Data from 6 June 2000. 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 Equity Income.
Percentage Growth
Artemis Income Fund Fund 12 Months to 31 December 2009
| 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|
| 11.4 | 9.7 | -19.1 | 10.4 | 15.5 |
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 6 June 2000. 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*
| Vodafone | 4.7% |
|---|---|
| GlaxoSmithKline | 4.6% |
| HSBC | 4.2% |
| Centrica | 4.1% |
| Royal Dutch Shell 'B' | 3.9% |
| Merck & Co. | 3.6% |
| AstraZeneca | 3.4% |
| BP | 3.4% |
| BG Group | 2.7% |
| National Grid | 2.6% |
* Without cash.
Source: Internal.
Market Sector Split*
| Healthcare | 15.0% |
|---|---|
| Oil & Gas | 13.5% |
| Utilities | 11.9% |
| Industrial Goods & Services | 11.0% |
| Telecommunications | 8.1% |
| Banks | 6.7% |
| Personal & Household Goods | 6.0% |
| Financial Services | 5.8% |
| Insurance | 5.2% |
| Other | 16.8% |
* Without cash.
Source: Internal.
% Variance†*
| Merck & Co. | 3.6% |
|---|---|
| Centrica | 3.1% |
| Novartis | 2.4% |
| Altria | 2.1% |
| RSA Insurance | 2.0% |
| Standard Life | 1.8% |
| Total | 1.8% |
| Chevron | 1.7% |
| IG Group | 1.6% |
| National Grid | 1.5% |
† 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.
In the interest of providing a level of income consistent with the aims of the Artemis Income Fund the periodic management charges are taken from capital. The effect of this will be to constrain ultimate capital growth over time and may lead to capital erosion.
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. The Fund’s annual Management Charge is charged to capital. This has the effect of increasing the distribution(s) for the year by 1.5% and constraining the fund’s capital performance to an equivalent extent.
