Artemis UK Smaller Companies Fund
Fund Manager's Comment
Data as at 30 September 2010
September saw the return of a rampant stockmarket, especially in smaller companies, as the corporate reporting season generally saw results ahead of expectations. While the fund rose 6%, this lagged the benchmark index somewhat. The worst performers in the month were our unquoted resources holdings, Vostok Energy and Hurricane Exploration, where their static valuation acted as a drag on performance. Our holdings of Axis Shield and Cranswick also lagged the market.
The best performances were from Domino Printing and Craneware, following better than expected results. It was a busy month on the dealing front as we reinvested the proceeds from the previous takeovers of our Scott Wilson and Chloride holdings. We also continued to take more profits in our large holdings of Abcam and SDL. We started several new holdings including GlobeOp, a rapidly growing company which administers the assets of hedge funds and is building a high quality stream of annuity cashflows. We bought a new investment in Games Workshop, a company which sells fantasy toy soldier games to a niche collector market using a vertically integrated business model with high margins and returns on capital. We also increased our holding in Brooks MacDonald, a private client personal pensions manager where we see huge growth opportunities as people realize that state pension provision is unlikely to be sufficient to provide for them in retirement.
Co-Fund Manager
Mark Niznik
Co-Manager of the Artemis UK Smaller Companies Fund Fund since 22 October 2007
Awards
UK Smaller Companies PDFKey Facts
| IMA Sector | UK Smaller Companies |
|---|---|
| Sedol Number | 0258359 |
| Fund Size (offer basis) | £323.3m |
| Historic yield | 0.20% |
| Unit offer price | 650.24p |
| Unit bid price | 604.20p |
| 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 | 1.62% |
Data as at 30 September 2010.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| UK Smaller Companies Fund (TR)† | 534.4 | -2.1 | -24.0 | 18.0 | 10.7 |
| Hoare Govett ex IT (TR)† | 146.6 | 40.2 | 3.3 | 16.0 | 6.5 |
| Sector Average | 113.6 | 22.9 | -5.7 | 16.1 | 10.9 |
| Position in Sector | 2 | 38 | 51 | 26 | 31 |
| Funds in Sector | 34 | 46 | 55 | 58 | 58 |
| Quartile | 1 | 4 | 4 | 2 | 3 |
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 September 2010. All figures show total returns. †Percentage Growth. Sector is IMA UK Smaller Companies.
Percentage Growth
Artemis UK Smaller Companies Fund Fund 12 Months to 31 December 2009
| 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|
| 18.0 | -2.5 | -34.0 | 20.3 | 7.1 |
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 3 April 1998. 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*
| Vostok Energy | 8.0% |
|---|---|
| Domino Printing Sciences | 3.4% |
| Mears Group | 3.3% |
| REA Holdings | 3.2% |
| Hurricane Exploration | 3.1% |
| H&T Group | 3.0% |
| Abcam | 2.7% |
| Alterian | 2.6% |
| Group NBT | 2.6% |
| Cranswick | 2.6% |
* Without cash.
Source: Internal.
Market Sector Split*
| Industrial Goods & Services | 25.1% |
|---|---|
| Oil & Gas | 14.9% |
| Technology | 14.0% |
| Financial Services | 7.6% |
| Food & Beverage | 7.3% |
| Retail | 6.9% |
| Media | 6.4% |
| Healthcare | 6.3% |
| Real Estate | 3.9% |
| Other | 7.6% |
* 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. 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.
