Artemis Income Fund
Fund Manager's Comment
Data as at 30 April 2012
Equity markets had a lacklustre month. The UK was more resilient, falling only very slightly, while in Europe the decline was more marked. Investors now have to witness how politics and elections will impact the euro crisis, an uncertainty that will persist for some time. Thankfully the US is providing more encouragement to counter this. We think the US is re-asserting its competitive advantage via cheaper and abundant energy and labour.
In general, companies are positioned for uncertainty and have worked hard to minimise expectations. The financial strength of companies remains unspent and under-appreciated; and similarly investors remain risk-averse and cashed up.
Moves of note were a reduction in our tobacco weighting. It has had a flawless decade of re-rating and is now regarded as immortal. Few are bearish and threats are seen as impotent. No need to panic, but profit-taking seems sensible. Against this we added to HSBC and AstraZeneca. We also purchased some BHP, anticipating recent suggestions that capital expenditure will reduce which may leave the dividend better regarded. The mining companies’ failure to recognise dividends as a ‘rent for risk’ has been a longstanding bugbear for us.
Fund Manager
Adrian Frost
Manager of the Artemis Income Fund Fund since 1 January 2002
Co-Fund Manager
Adrian Gosden
Co-Manager of the Artemis Income Fund Fund since 1 October 2003
Awards
Income PDFKey Facts
| IMA Sector | UK Equity Income |
|---|---|
| Sedol Number | 0657246 |
| Fund Size (offer basis) | £4204.9m |
| Historic yield | 4.6% |
| Unit offer price (distribution units) | 176.22p |
| Unit bid price (distribution units) | 166.01p |
| Unit offer price (accumulation units) | 255.93p |
| Unit bid price (accumulation units) | 241.09p |
| Valuation (UK business days) | 12:00 |
| Minimum lump sum investment | £1,000 |
|---|---|
| Minimum monthly investment | £50 |
| Launch | 6 June 2000 |
| Launch price | 100p |
| Preliminary charge | 5.25% |
| Annual Management Fee | 1.50% |
| Unit type | Distribution & Accumulation |
| Dividend pay dates | 31 December, 30 June |
| Total Expense Ratio | 1.55% |
Data as at 30 April 2012.
Performance
| Since Launch* | 5 Years | 3 Years | 1 Year | 6 Months | |
|---|---|---|---|---|---|
| Income Fund (TR)† | 173.3 | 5.5 | 46.2 | 1.2 | 5.2 |
| FTSE All-Share (TR)† | 41.9 | 6.5 | 52.2 | -2.0 | 6.3 |
| FTSE 100 (TR)† | 31.2 | 7.2 | 50.4 | -2.0 | 5.5 |
| Sector Average | 54.8 | -4.1 | 45.2 | -1.4 | 4.0 |
| Position in Sector | 3 | 24 | 46 | 27 | 35 |
| Funds in Sector | 50 | 80 | 91 | 99 | 104 |
| Quartile | 1 | 2 | 2 | 2 | 2 |
Please remember that past performance is not a guide to the future.
* Data from 6 June 2000. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 30 April 2012. All figures show total returns. †Percentage Growth. Sector is IMA UK Equity Income.
Percentage Growth
Artemis Income Fund Fund 12 Months to 31 December 2009
| 2012 | 2011 | 2010 | 2009 | 2008 |
|---|---|---|---|---|
| 5.2 | 8.0 | 42.5 | -22.2 | -12.6 |
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 April 2012.
Data from 6 June 2000. Source Lipper Limited, bid to bid in sterling with net income reinvested to 30 April 2012.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| GlaxoSmithKline | 5.2% |
|---|---|
| Royal Dutch Shell 'B' | 5.0% |
| BP | 4.9% |
| Vodafone | 4.2% |
| HSBC | 3.7% |
| AstraZeneca | 3.2% |
| BG Group | 3.0% |
| Centrica | 2.9% |
| BT Group | 2.8% |
| Reed Elsevier | 2.3% |
* Without cash.
Source: Internal.
Market Sector Split*
| Healthcare | 16.9% |
|---|---|
| Oil & Gas | 13.9% |
| Industrial Goods & Services | 12.5% |
| Telecommunications | 8.3% |
| Utilities | 7.6% |
| Travel & Leisure | 5.9% |
| Insurance | 5.7% |
| Media | 5.2% |
| Food & Beverage | 4.4% |
| Other | 19.6% |
* Without cash.
Source: Internal.
% Variance†*
† Positive variance between stock % held in the Fund versus FTSE All-Share.
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.
In the interest of providing a level of income consistent with the aims of the Artemis 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 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. The Fund’s annual Management Charge is charged to capital. This has the effect of increasing the distribution(s) for the year by 1.5% and constraining the fund’s capital performance to an equivalent extent.
