Artemis High Income Fund
Fund Manager's Comment
Data as at 30 October 2009
A positive month - but it is difficult to escape the feeling that markets have run quite hard and are more vulnerable to negative news, or at least need to pause and get their bearings. We continued to sell some of our lower yielding assets, e.g. Allied Domeq, Ladbroke and Reed, and took some profits in ITV. We sold some of our Lloyds exposure into strength. But notwithstanding their meteoric rise, these bonds have risen further as a result of the capital raising. On the equity side we took profit in Tate & Lyle, added to Drax and bought some Standard Life. We are fully invested, and will be raising some cash from here.
Awards
High Incom PDFKey Facts
| IMA Sector | £ Strategic Bond |
|---|---|
| Sedol Number | 0683809 |
| Fund Size (offer basis) | £640.1m |
| Distribution yield | 7.70% |
| Underlying yield | 6.40% |
| Unit offer price | 71.23p |
| Unit bid price | 65.58p |
| Valuation (UK business days) | 12:00 |
| Minimum lump sum investment | £1,000 |
|---|---|
| Minimum monthly investment | £50 |
| Launch | 26 May 1995 |
| Launch price | 50p |
| Preliminary charge | 5.25% |
| Annual Management Fee | 1.25% |
| Unit type | Income |
| Distribution pay dates | 7 April, 7 July, 7 October, 7 January |
| Total Expense Ratio | 1.34% |
Data as at 30 October 2009.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| High Income Fund (TR)† | 231.7 | 20.0 | -5.3 | 25.4 | 34.2 |
| FTSE-A British Govt All Stocks (TR)**† | 103.2 | 32.4 | 18.2 | 10.6 | 2.8 |
| Sector Average | 153.3 | 12.4 | 1.4 | 20.4 | 21.6 |
| Position in Sector | 1 | 7 | 41 | 22 | 9 |
| Funds in Sector | 7 | 37 | 45 | 59 | 63 |
| Quartile | 1 | 1 | 4 | 2 | 1 |
Please remember that past performance is not a guide to the future.
* Data from 26 May 1995. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 30 October 2009. All figures show total returns. ** As FTSE A Brit Govt All Stocks TR data is not available prior to Nov 1998 we have used CR figures up until 30 Nov 1998. †Percentage Growth. Sector is IMA £ Strategic Bond.
Percentage Growth
Artemis High Income Fund Fund 12 Months to 31 December 2009
| 2009 | 2008 | 2007 | 2006 | 2005 |
|---|---|---|---|---|
| 6.6 | -14.7 | 2.4 | 10.0 | 16.9 |
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 26 May 1995. 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 | 3.8% |
|---|---|
| First Hydro Finance | 2.5% |
| Converium Holdings | 2.2% |
| Asset Repackaging Trust | 2.0% |
| Aberdeen Asset Management | 1.9% |
| Glencore Finance Europe | 1.9% |
| F&C Finance | 1.8% |
| Nordic Telephone Company | 1.8% |
| RSA Insurance | 1.8% |
| Cable & Wireless | 1.8% |
* Without cash.
Source: Internal.
Market Sector Split*
| Financial Services | 23.9% |
|---|---|
| Insurance | 15.9% |
| Banks | 10.5% |
| Utilities | 9.8% |
| Industrial Goods & Services | 8.0% |
| Telecommunications | 6.1% |
| Healthcare | 5.5% |
| Oil & Gas | 2.8% |
| Media | 2.6% |
| Other | 14.9% |
* Without cash.
Sector classification: FTSE Acturaries
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 a result of market and currency valuations and you may not get back the amount originally invested. A proportion of the Fund may be invested in higher yielding bonds. This may increase the risk to your capital due to a higher likelihood of default by the bond issuer. Changes to market conditions and interest rate levels can have a larger effect on the values of higher yielding bonds than other bonds. In the interests of providing a level of income consistent with the aims of the Artemis High 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 distribution yield reflects the amounts that may be distributed over the next twelve months as a percentage of the mid-market unit price of the Fund as at the date shown. It does not include any preliminary charge and investors may be subject to tax on distributions. The distribution yield is higher than the underlying yield because the fund’s annual Management Charge is charged to capital. This has the effect of increasing the distributions for the year by 1.25% and constraining the fund’s capital performance to an equivalent extent.
