Artemis Global Growth Fund
Fund Manager's Comment
Data as at 30 September 2010
Global equities rebounded sharply in September from their summer lows. The Federal Reserve Bank’s admission that a second round of quantitative easing was more a question of when, not whether, and the Bank of Japan’s intervention to weaken the yen were seen as reflationary impulses that will in time push up the value of real assets, be they equities, commodities or precious metals. Equities rose on average by almost 10%, with European markets leading (Sweden up 19%, France +15%) while Japan lagged (+5%).
With its bias towards companies that are geared into a cyclical recovery (e.g. chemicals, autos and travel & leisure) this proved a helpful environment for the fund. Our large positions in Germany’s Lanxess and France’s Rhodia proved advantageous, as did our more recent purchase of Brazilian miner, Vale. Over the course of the month we added to our overweight in autos, topping up our positions in the likes of Daimler, where August’s sell-off had been in particularly sharp contrast to continued positive corporate newsflow. We are also slowly warming to the construction sector (buying Germany’s Bilfinger Berger and Chicago Bridge and Iron Co) as valuations are good, cheap financing conditions are helpful and gradually an increasing number of companies are delivering positive surprises.
We financed these purchases by sales in banks and technology. We took some profits in Turkey’s Akbank and India’s Punjab National Bank, but also sold our holdings in China’s Bank of Communications and Bank of China, on the back of deteriorating newsflow. These transactions leave us with significant overweights in autos, chemicals and banks. Our biggest underweights remain tech, healthcare and food & beverages. Regionally, we still like Emerging markets, but also now have a small overweight in Europe.
Awards
Global Growth PDFKey Facts
| IMA Sector | Global Growth |
|---|---|
| Sedol Number | 0679574 |
| Fund Size (offer basis) | £148.5m |
| Historic yield | 0.60% |
| Unit offer price | 100.86p |
| Unit bid price | 95.46p |
| Valuation (UK business days) | 12:00 |
| Minimum lump sum investment | £1,000 |
|---|---|
| Minimum monthly investment | £50 |
| Launch | 29 June 1990 |
| Launch price | 50p |
| Preliminary charge | 5.25% |
| 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 | |
|---|---|---|---|---|---|
| Global Growth Fund (TR)† | 101.0 | 7.6 | -25.6 | 10.8 | -3.5 |
| MSCI World-Net $ (TR)† | 253.1 | 19.8 | -0.3 | 8.4 | -4.4 |
| Sector Average | 238.7 | 20.8 | -2.2 | 8.4 | -3.2 |
| Position in Sector | 41 | 120 | 158 | 46 | 101 |
| Funds in Sector | 41 | 136 | 160 | 188 | 193 |
| Quartile | 4 | 4 | 4 | 1 | 3 |
Please remember that past performance is not a guide to the future.
* Data from 29 June 1990. 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 Global Growth.
Percentage Growth
Artemis Global Growth Fund Fund 12 Months to 31 December 2009
| 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|
| 10.8 | -10.3 | -25.2 | 36.3 | 6.1 |
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 29 June 1990. 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*
| Chevron | 2.6% |
|---|---|
| CNOOC | 2.1% |
| BNP Paribas | 2.1% |
| Rhodia | 1.9% |
| Companhia Vale Do Rio Doce | 1.9% |
| Lanxess | 1.6% |
| Wells Fargo & Co. | 1.4% |
| BCE | 1.2% |
| AstraZeneca | 1.2% |
| Turikye Halk Bankasi | 1.2% |
* Without cash.
Source: Internal.
Market Sector Split*
| Materials | 19.2% |
|---|---|
| Banks | 14.9% |
| Automobiles & Components | 12.4% |
| Capital Goods | 8.1% |
| Energy | 6.7% |
| Technology Hardware & Equipment | 6.1% |
| Telecommunication Services | 6.0% |
| Retailing | 5.5% |
| Transportation | 3.9% |
| Other | 17.2% |
* 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.
A significant proportion of the Fund may be invested in emerging markets. Investments in emerging markets can involve greater risk than is customarily associated with more mature markets 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.
