Fund Manager's Comment
Data as at 27 February 2009
February was a difficult month as we suffered from a series of negative announcements. Neuropharm have, in recent years, been advancing their treatment for autism through the US clinical trial process. But unfortunately, despite encouraging earlier trial results, phase 3 trials showed no statistically significant improvement over placebo — effectively ending the opportunity. Meanwhile a decision not to reimburse colonography for colon cancer screening has blighted the market opportunity for Medicsight, leading to their shares being sold off heavily. Outside the medical area, we received a disappointing update from Accsys Technologies as the economic backdrop affects the construction of plants by their licensees.
Investment Objective
The Company’s objective is to achieve long-term capital and income growth and to generate tax free capital and income distributions.
Investment Policy
The Company’s policy is to invest in a diversified portfolio of growth orientated companies across a broad range of industries, with a particular emphasis on companies whose shares are traded on AIM. Investments will also be in companies whose shares are traded on PLUS Markets and unquoted companies.
| Directors | Registered Office | Registrars |
|---|---|---|
| F E Wollocombe (Chairman)
R A Field E D Murray C M Paterson |
42 Melville Street Edinburgh EH3 7HA Company No: SC270952 |
Equiniti 1st Floor, 34 South Gyle Crescent, South Gyle Business Park, Edinburgh EH12 9EB |
Key Facts
| Fund size (Net assets) |
£21.0m |
|---|---|
| Fund size (Market cap) |
£19.4m |
| NAV | 58.47p |
| Share Price | 54.00p |
| (Discount)/Premium | (7.6)% |
| Shares in issue | 35,928,504 |
| Management Fee | 1.4% (on net asset value) |
| Sedol Number | B02WQ94 |
|---|---|
| ISIN | GB00B02WQ947 |
| Ticker | AAM/LON |
| Launch | December 2004 |
Data as at 27 February 2009
Performance†
| Since Launch*** | 3 Years | 1 Year | 6 Months | 1 Month | |
|---|---|---|---|---|---|
| Artemis AiM VCT 2 NAV* | -35.4 | -39.8 | -28.9 | -26.8 | -6.4 |
| Artemis AiM VCT 2 Share Price** | -46.0 | -38.2 | -15.0 | -24.5 | -2.3 |
| FTSE AiM Index* | -63.9 | -65.7 | -61.3 | -51.1 | -3.8 |
| FTSE All-Share Index* | -10.6 | -27.2 | -33.0 | -31.4 |
-6.5 |
All data as at 27 February 2009. All figures show total returns.
†Percentage growth. * Source: Internal.
** Source: Lipper Limited. The FTSE AiM is a recognised index of companies, however, as the Company is managed as a venture capital trust, not all index constituents will be suitable investments for its portfolio. In addition, the Company has the ability to invest in certain companies not included in the index. As a result there may be some divergence between the Company's performance and that of the index. *** Data from 24 March 2005, the close of the offer period. Past performance is not a guide to future performance
Percentage Growth 12 Months to 31 December
| 2004 | 2005 | 2006 | 2007 | 2008 |
|---|---|---|---|---|
| n/a | n/a | -13.0 | 3.1 | -30.7 |
Source: Lipper Limited. All figures show total returns and are based on the performance of the share price.
Share Price and NAV Performance (in pence)
Data from 24 March 2005, the close of the offer period. Source: Internal as at 27 February 2009.
Top Ten Holdings*
| Company | Business Activity | % Fund |
|---|---|---|
| Earthport | International Electronic Payment Services | 10.0 |
| Craneware | Healthcare Revenue Management Software | 8.4 |
| Healthcare Locums | Healthcare Recruitment Services | 7.2 |
| Abcam | Producer of Research Grade Antibodies | 6.1 |
| Accsys Technologies | Wood Acetylation Processes | 5.8 |
| Ilika | New Materials Research | 5.2 |
| Brulines | Licensed Trade Monitoring Equipment | 4.3 |
| iQUR | Hepatitis C Detection & Treatment | 4.1 |
| Concateno | Drug Testing & Screening Services | 3.4 |
| Independent Resources | Italian Underground Gas Storage | 3.4 |
Source: Internal. Without Cash.
Market Sector Split*
% Fund |
|
|---|---|
| Software & Computer Services | 26.5 |
| Pharmaceuticals & Biotechnology | 24.1 |
| Support Services | 11.9 |
| General Industrials | 11.0 |
| Electronic & Electrical Equipment | 5.4 |
| Investment Companies | 4.4 |
| Oil & Gas Producers | 3.4 |
| Aerospace & Defence | 3.4 |
| Leisure & Hotels | 3.3 |
| Other | 6.6 |
* Source: Internal. Without Cash.
Other Information
Artemis AiM VCT plc Company Announcements External Site (opens in a new window) Company Announcements External Site (opens in a new window) View Artemis AiM VCT plc EGM2 Proxy Voting (31 March 2009) View Artemis AiM VCT2 plc AGM Proxy Voting (20 March 2009) View Artemis AiM VCT plc EGM1 Proxy Voting (20 March 2009) View Artemis AiM VCT2 plc EGM Proxy Voting (20 March 2009) Articles of Association (28 January 2009) View Interim Management Statement (31 December 2008) 2008 Annual Report & Accounts (30 September 2008) 2007 Annual Report & Accounts (30 September 2007) 2006 Annual Report & Accounts (30 September 2006) 2005 Annual Report & Accounts (30 September 2005) 2008 Interim Report & Accounts (31 March 2008) 2007 Interim Report & Accounts (31 March 2007) 2006 Interim Report & Accounts (31 March 2006) Risk Warning
This factsheet has been issued by Artemis Investment Management Ltd, which is authorised and regulated by the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS. It does not constitute an offer, invitation or solicitation to deal in securities. The value of shares in a VCT, and any income from them, can fall as well as rise and you may not get back the amount originally invested. Investment in a VCT carries a higher risk than many other forms of investment and potential investors are strongly advised to seek professional advice. In particular, a VCT's shares although listed may be difficult to realise and a VCT's underlying investments in the securities of smaller or unquoted companies and in companies in specialist sectors can involve greater risk than investment in larger, more established firms. Existing tax levels and reliefs may change and the value of reliefs depends on individual circumstances. If a VCT loses its H M Revenue & Customs approval tax reliefs previously obtained may be lost.
