Artemis UK Special Situations Fund
Fund Manager's Comment
Data as at 30 October 2009
Recent underperformance in the retail sector has provided us with the opportunity to establish holdings in this area. To be clear, this is not because we expect a consumer boom, but a result of our focus on significant self-help situations. While we already owned Debenhams, we have established positions in HMV and WH Smith where management are re-invigorating tired formats. Valuations and expectations in these stocks remain low. Elsewhere we have taken profits in our holding in Cadburys. The shares have been sitting at a significant premium to Kraft’s bid for some time. And while we expect a higher offer for the company, the risks are that the higher offer does not quite meet investors’ expectations.
A sector we have had a significant underweight in is banking. Recent underperformance and, more importantly, increased clarity (if only a bit more) on the sector’s financial situation has resulted in us dusting down some research. While we don’t anticipate a material move, you might see an increase in the fund’s exposure.
Co-Fund Manager
Ruth Keattch
Co-Manager of the Artemis UK Special Situations Fund Fund since 1 December 2008
Awards
UK Special Situations PDFKey Facts
| IMA Sector | UK All Companies |
|---|---|
| Sedol Number | 0219226 |
| Fund Size (offer basis) | £1065.4m |
| Historic yield | 2.00% |
| Unit offer price | 320.21p |
| Unit bid price | 299.47p |
| Valuation (UK business days) | 12:00 |
| Minimum lump sum investment | £1,000 |
|---|---|
| Minimum monthly investment | £50 |
| Launch | 9 March 2000 |
| Launch price | 100p |
| Preliminary charge | 5.25% |
| Annual Management Fee | 1.50% |
| Unit type | Accumulation |
| Accumulation date | 28 February |
| Total Expense Ratio | 1.57% |
Data as at 30 October 2009.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| UK Special Situations Fund (TR)† | 215.2 | 41.2 | -1.6 | 30.2 | 18.4 |
| FTSE All-Share (TR)† | 12.7 | 34.2 | -7.9 | 23.5 | 21.2 |
| FTSE 100 (TR)† | 6.6 | 31.2 | -7.5 | 20.4 | 21.2 |
| Sector Average | 7.6 | 28.9 | -10.1 | 30.7 | 21.7 |
| Position in Sector | 1 | 52 | 51 | 125 | 258 |
| Funds in Sector | 162 | 239 | 278 | 308 | 316 |
| Quartile | 1 | 1 | 1 | 2 | 4 |
Please remember that past performance is not a guide to the future.
* Data from 9 March 2000. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 30 October 2009. All figures show total returns. †Percentage Growth. Sector is IMA UK All Companies.
Percentage Growth
Artemis UK Special Situations Fund Fund 12 Months to 31 December 2009
| 2009 | 2008 | 2007 | 2006 | 2005 |
|---|---|---|---|---|
| 15.2 | -23.2 | 15.2 | 12.1 | 27.5 |
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 October 2009.
Data from 9 March 2000. Source Lipper Limited, bid to bid in sterling with net income reinvested to 30 October 2009.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| GlaxoSmithKline | 4.7% |
|---|---|
| HSBC | 4.0% |
| Unilever | 3.6% |
| Royal Dutch Shell 'B' | 3.5% |
| Vodafone | 3.2% |
| AstraZeneca | 3.2% |
| Booker Group | 3.2% |
| London Stock Exchange | 2.9% |
| BG Group | 2.4% |
| Provident Financial | 2.4% |
* Without cash.
Source: Internal.
Market Sector Split*
| Oil & Gas | 15.3% |
|---|---|
| Financial Services | 13.0% |
| Industrial Goods & Services | 12.7% |
| Healthcare | 10.9% |
| Retail | 9.6% |
| Travel & Leisure | 5.9% |
| Food & Beverage | 5.7% |
| Banks | 5.0% |
| Technology | 4.4% |
| Other | 17.5% |
* Without cash.
Source: Internal.
% Variance†*
| Booker Group | 3.1% |
|---|---|
| London Stock Exchange | 2.8% |
| Provident Financial | 2.3% |
| Close Brothers | 2.1% |
| Unilever | 2.1% |
| Compass Group | 1.9% |
| Salamander Energy | 1.9% |
| Debenhams | 1.8% |
| Ashtead Group | 1.8% |
| 3I Group | 1.7% |
† 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.
