Artemis European Growth Fund
Fund Manager's Comment
Data as at 30 June 2010
Signs of weaker economic activity continue to attract attention; and commodity prices are softening. On the back of this we have reduced further our exposure to the basic resource sector and invested some of the proceeds in the utility sector. In general, the utility sector is cheap and economically defensive – but suffering from pressure on margins. Nevertheless, there are some areas of strength and we have increased our exposure to the Greek and Italian electricity companies, Public Power and Enel.
Slowing economic growth is often associated with value stocks struggling. This occasion is no exception. When growth disappoints, profit warnings become more abundant and stocks that appear abnormally cheap often have a knack of getting cheaper. Nevertheless, if cheap companies deliver pleasant surprises, then maybe we should give them the benefit of the doubt. As an example, in the past month in the bank sector we have taken profits in the strongly performing Svenska Handelsbank and Bank Zachodni and simultaneously put money to work in Société Générale where the share price has been weak. It trades on a prospective p/e of 6.3x, yields 5% and this month’s trading update revealed that strong cost-cutting means that analysts profit forecasts are too low.
Fund Manager
Philip Wolstencroft
Manager of the Artemis European Growth Fund Fund since launch
Co-Fund Manager
Peter Saacke
Co-Manager of the Artemis European Growth Fund Fund since 1 December 2002
Awards
European Growth PDFKey Facts
| IMA Sector | Europe Excluding UK |
|---|---|
| Sedol Number | 0660084 |
| Fund Size (offer basis) | £322.8m |
| Historic yield | 1.50% |
| Unit offer price | 154.55p |
| Unit bid price | 146.37p |
| Valuation (UK business days) | 12:00 |
| Minimum lump sum investment | £1,000 |
|---|---|
| Minimum monthly investment | £50 |
| Launch | 7 March 2001 |
| Launch price | 100p |
| Preliminary charge | 5.25% |
| Annual Management Fee | 1.50% |
| Unit type | Accumulation |
| Accumulation date | 31 May |
| Total Expense Ratio | 1.60% |
Data as at 30 June 2010.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| European Growth Fund (TR)† | 54.1 | -3.3 | -40.0 | 11.6 | -11.2 |
| FTSE Europe ex UK (TR)† | 26.2 | 31.7 | -15.6 | 15.9 | -11.0 |
| Sector Average | 19.7 | 26.6 | -17.5 | 14.4 | -10.2 |
| Position in Sector | 5 | 81 | 90 | 74 | 54 |
| Funds in Sector | 63 | 82 | 91 | 107 | 110 |
| Quartile | 1 | 4 | 4 | 3 | 2 |
Please remember that past performance is not a guide to the future.
*Data from 7 March 2001. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 30 June 2010. All figures show total returns. †Percentage Growth. Sector is IMA Europe (ex UK).
Percentage Growth
Artemis European Growth Fund Fund 12 Months to 31 December 2009
| 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|
| 11.6 | -36.5 | -15.3 | 25.6 | 28.3 |
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 June 2010.
Data from 7 March 2001. Source Lipper Limited, bid to bid in sterling with net income reinvested to 30 June 2010.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| Clariant | 4.0% |
|---|---|
| BASF | 3.1% |
| Koninklijke Philips Electron | 3.0% |
| BNP Paribas | 2.8% |
| Lanxess | 2.7% |
| AstraZeneca | 2.3% |
| Acergy | 2.2% |
| Societe Generale | 2.2% |
| UBS | 2.1% |
| CSM | 2.1% |
* Without cash.
Source: Internal.
Market Sector Split*
| Banks | 17.7% |
|---|---|
| Chemicals | 14.0% |
| Industrial Goods & Services | 9.4% |
| Personal & Household Goods | 8.8% |
| Automobiles & Parts | 7.8% |
| Basic Resources | 6.9% |
| Oil & Gas | 5.1% |
| Food & Beverage | 4.9% |
| Retail | 4.8% |
| Other | 20.6% |
* 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.
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.
