Artemis High Income Fund
Fund Manager's Comment
Data as at 30 June 2010
There were few transactions over the month, the principal one being the purchase of BP 2013 dollar bonds giving a yield to maturity of 8%. Overall the performance of the fund was primarily affected by our equity weighting. But the components of the equity weighting are almost wholly companies with above average yields, dividend growth and defensive characteristics and so we are not proposing to make any change to this exposure. Markets were generally thin with little liquidity, and issuance was subdued.
Fund Manager
Adrian Frost
Manager of the Artemis High Income Fund Fund since 9 September 2002
Co-Fund Manager
Adrian Gosden
Co-Manager of the Artemis High Income Fund Fund since 1 October 2003
Awards
High Income Fund PDFKey Facts
| IMA Sector | £ Strategic Bond |
|---|---|
| Sedol Number | 0683809 |
| Fund Size (offer basis) | £578.0m |
| Distribution yield | 8.60% |
| Underlying yield | 7.40% |
| Unit offer price | 70.55p |
| Unit bid price | 65.35p |
| 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 | 1.33% |
Data as at 30 June 2010.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| High Income Fund (TR)† | 245.9 | 13.4 | -3.9 | 24.8 | 1.9 |
| FTSE-A British Govt All Stocks (TR)**† | 110.9 | 28.9 | 28.0 | 6.7 | 5.7 |
| Sector Average | 164.8 | 10.9 | 7.5 | 17.8 | 3.6 |
| Position in Sector | 1 | 15 | 51 | 17 | 57 |
| Funds in Sector | 8 | 42 | 53 | 64 | 65 |
| Quartile | 1 | 2 | 4 | 2 | 4 |
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 June 2010. 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
| 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|
| 24.8 | -16.8 | -7.6 | 7.8 | 9.5 |
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 26 May 1995. 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*
| GlaxoSmithKline | 3.1% |
|---|---|
| First Hydro Finance | 2.9% |
| Converium Holdings | 2.5% |
| Glencore Finance | 2.3% |
| Henderson Group | 2.3% |
| Tullett Prebon | 2.3% |
| Aberdeen Asset Management | 2.2% |
| United Utilities | 2.1% |
| Asset Repackaging Trust | 2.0% |
| Cable & Wireless | 2.0% |
* Without cash.
Source: Internal.
Market Sector Split*
| Financial Services | 28.2% |
|---|---|
| Insurance | 19.9% |
| Banks | 13.7% |
| Utilities | 11.0% |
| Telecommunications | 6.1% |
| Healthcare | 5.2% |
| Industrial Goods & Services | 4.1% |
| Media | 2.2% |
| Basic Resources | 1.9% |
| Other | 7.7% |
* 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.
