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Artemis Global Income Fund

All data as at 31 January 2017 except where specified
  • Summary
  • About the fund
  • Performance (class R)
  • Performance (class I)
  • Composition
  • Key facts
  • Investment insights
  • Literature
  • Contact us


The fund’s aims

The fund aims to achieve a rising income combined with capital growth from a wide range of investments. The fund will mainly invest in global equities but may have exposures to fixed interest securities. We will not be restricted in our choice of investments, regardless of size of the company, the industry it trades in or the geographical split of the portfolio.

Current prices and yield
(class R)

As at noon, 24 February 2017
Bid price (acc units)121.14p
Bid price (dist units)93.32p
Offer price (acc units)127.86p
Offer price (dist units)98.50p
Historic yield (acc units)2.93%
Historic yield (dist units)3.00%

Investment information
(class R)

Minimum lump sum investment£1,000
Ongoing charge (acc units)1.56%
Ongoing charge (dist units)1.56%

The initial charge is currently waived. The ongoing charge includes the annual management charge of 1.5% and is shown as at the date of the Key Investor Information Document (KIID), where a full explanation of the fund's charges can be found.

Fund managers’ update

The global economy remains in a sweet spot for equities. Growth is robust, interest rates are still at (or near) record lows and we are about to get a bout of fiscal stimulus in the US (and perhaps even in Europe). Purchasing managers’ indices are above 50 (signalling expansion) in the three major regions of the global economy, unemployment is falling and commodity prices are picking up. Ordinarily, our satisfaction with all this would be tempered by looking ahead to what might happen in 12 months’ time. Markets are priced with reference to expectations for the future and although the current strength of the global economy is unmistakable, the inevitable question is when the next recession will hit. We believe the probability of a recession this year is diminishing (the caveat being political risks) yet there is a huge amount of scepticism towards the trends unfolding in equity markets.

Although we are not complacent, and acknowledge that the global economy will slow at some point, we believe the rehabilitation of cyclical areas of the market still has further to go.

A year ago, it was not uncommon to find investors who believed China was on the brink of collapse and that a period of recession and deflation in the global economy beckoned. By last July, things had improved dramatically and bond yields had bottomed out. Yet the earlier scepticism lingered. Today, the argument of pessimists has moved on: they now insist that this is ‘as good as it gets’. Clearly, there will be a slowdown at some point, but there is great reluctance in some quarters to acknowledge the health of the global economy. With economic data all pointing in a positive direction, large areas of the stockmarket are becoming ‘investible’ once again: buying financials, mining companies or even banks is no longer unthinkable. The magnitude of the gains in these areas is not just a consequence of their earnings recovery (although that has helped) - it also reflects their rediscovered investibility. After a long period of neglect, these areas are attracting capital. That creates positive share-price momentum, enhancing their credentials and so creating a self-reinforcing trend. And as these cheap areas are rehabilitated, they are draining capital away from areas - safe havens and bond proxies - where valuations had risen to stratospheric levels in response to unsustainably low yields on government bonds.

Our fund is benefiting from that process. Not only does it have less exposure to the expensive, safe-haven areas of the market from which capital is ebbing away, it also has more exposure to ‘value’. Furthermore, our value stocks tend not to be the most distressed stocks that led the early stages of last year’s recovery, such as, for instance, Brazilian mining companies. Such investments tend not to be suitable investments for an income fund like ours, with our focus on sustainable cashflows. Instead, we often find value in less obvious places. These include mid caps, stocks that are cheap due to political uncertainty (the fund is overweight in Europe) along with idiosyncratic turnaround or recovery situations. As the rally in ‘value’ broadens out, these second-order beneficiaries are attracting capital.

So that the fund outperformed in January was not only due to its overweight position in basic material stocks (although our exposure there helped). It was also because holdings that were overlooked last year for not belonging to either of the extremes that led the market at different times (expensive, high-quality defensives in the first part of the year; cheap-but-troubled recovery stocks in the summer) began to receive more attention. Although we are not complacent, and acknowledge that the global economy will slow at some point, we believe the rehabilitation of cyclical areas of the market still has further to go. Moreover, we believe that our fund is well placed to perform as the rally in value continues to broaden.

04 November 2016

Jacob de Tusch-Lec: Macro matters …

As politics and central bankers’ actions continue to drive global markets, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, discusses some of the risks and opportunities.

Value of £1,000 invested at launch to 31 January 2017

Value of £1,000 invested at launch to 31 January 2017

Data from 19 July 2010. Source Lipper Limited,distribution units, bid to bid in sterling to 31 January 2017. All figures show total returns with dividends reinvested.

Asset allocation

Asset allocation

Source: Artemis as at 31 January 2017. Please note figures may not add up to 100% due to rounding.

Percentage growth (class R)

20162015201420132012
12 months to 31 December21.6%5.7%12.1%32.7%14.7%
20172016201520142013
12 months to 31 January31.9%-4.9%21.4%16.4%23.3%
Please remember that past performance is not a guide to the future. Source: Lipper Limited, distribution units, bid to bid in sterling. All figures show total returns with dividends reinvested.

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Jacob de Tusch-Lec: Macro matters …





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Artemis Global Income Fund

  • Proven performance, returning 165.5%* since launch compared to a sector average of 99.1%*
  • Invests in unrecognised opportunities, favouring large-cap rather than mega-cap companies, giving greater potential for yield and capital growth
  • Flexible approach, adapting to changing economic conditions by shifting investments between high-yielding quality, cyclical and value stocks
  • Complements UK equity-income holdings – the fund is designed to complement rather than replicate investors’ existing UK equity-income holdings
  • An extension of Artemis’ successful equity-income process, focusing on free cashflow-generating companies, employed to great success in the Artemis Income Fund

Investment strategy

Equity income has long been a staple choice for investors; the attraction of a steady income and the potential for capital growth is clear. UK investors have tended to favour UK-focused income funds but are increasingly recognising the benefits of a global approach. The reason? Diversification…

The Artemis Global Income Fund has exposure to the growth prospects of 26 countries and 16 different currencies and little exposure to the UK. This makes it a good option for investors looking for a complementary fund to sit alongside a UK equity income fund.

Managed by Jacob de Tusch-Lec, the fund employs the same tried and tested approach to investing for income used by Adrian Frost in the £6.3bn† Artemis Income Fund. The portfolio of around 100 stocks worldwide offers a focused approach – given the investment universe of 5,000 stocks. Importantly, the manager looks for companies that can grow and sustain their dividends over time.

In short, the fund aims to offer investors a good, steady and rising income, as well as prospects for capital gain, from ‘best of breed’ companies – right around the world.

Jacob de Tusch-Lec explains how he manages the Artemis Global Income Fund

First quartile since launch

Performance to 31 January 2017 (%)

 

Since launch*

5 years

3 years

1 year

Artemis Global Income

165.5

126.5

55.6

32.9

Sector average

99.1

76.5

42.5

29.2

Position in sector

1/13

1/20

4/29

11/34

Quartile

1

1

1

2

* Data from 19 July 2010. Source: Lipper Limited, class I distribution units, bid to bid in sterling to 31 January 2017. All figures show total returns with dividends reinvested. Sector from 1 January 2012 is IA Global Equity Income NR, universe of funds is those reporting net of UK taxes.

Value of £1,000 invested at launch to 31 January 2017

Value of £1,000 invested at launch

* Data from 19 July 2010. Source: Lipper Limited, class I distribution units, bid to bid in sterling to 31 January 2017. All figures show total returns with dividends reinvested. Sector from 1 January 2012 is IA Global Equity Income NR, universe of funds is those reporting net of UK taxes.

Where to find income in 2016?

As global economies desynchronise, Artemis Global Income manager Jacob de Tusch-Lec identifies how he is positioning his portfolio for 2016 in the search for income.

The manager

Jacob de Tusch-Lec

 

Jacob de Tusch-Lec

Jacob’s career in investment management began in 1998 at Copenhagen-based BankInvest, one of the largest independent fund managers in Scandinavia, where he was a portfolio manager on the Central and Eastern European/ Russia Equity Unit Trust. In 2002 he joined Merrill Lynch’s global equity macro research department as vice president of pan-European equity strategy.

Jacob holds a BA and an MSc in economics from the University of Copenhagen; and an MBA from the Stern School of Business at New York University (NYU), specialising in international economics and finance. During his time at NYU he was a teaching assistant under the internationally acclaimed economist, Professor Nouriel Roubini.

He returned to managing money in 2005 when he joined Artemis. He managed the Artemis Capital Fund from January 2006 until June 2010; and has managed the Artemis Global Income Fund since its launch in July 2010. He has also managed, with James Foster, the Artemis Monthly Distribution Fund since its launch in May 2012.

Reasons to consider

The fund may be suitable for investors looking for:

  • regular and growing income alongside the potential for capital growth
  • exposure to the growth potential of companies from around the world
  • the same tried and tested approach to investing for income used in the Artemis Income Fund
  • a complement to a UK equity income fund

Further information

Find out about the fund's current positioning, performance and composition:

Or contact the Artemis Sales Support team on:

         

 

Morningstar Bronze award Raymond Spencer Mills rated fund The Adviser Centre recommended fund Lipper Fund Awards 2014 Square Mile award

Citywire plus - Jacob de Tusch-Lec

Jacob de Tusch-Lec

†Source: Artemis. Data as at 31 January 2017.

Citywire rating: source and copyright Citywire. Jacob de Tusch-Lec is rated by Citywire for his risk-adjusted performance for the three years to 31 January 2017. Third party endorsements are not a recommendation to buy.

Risk warnings

THIS INFORMATION IS FOR PROFESSIONAL ADVISERS ONLY and should not be relied upon by retail investors.
The fund's annual management charge is taken from capital. The fund may invest in emerging markets. The fund may invest in the shares of small and medium sized companies.
Any research and analysis in this communication has been obtained by Artemis for its own use. Although this communication is based on sources of information that Artemis believes to be reliable, no guarantee is given as to its accuracy or completeness.
Any forward-looking statements are based on Artemis’ current expectations and projections and are subject to change without notice.
Issued by Artemis Fund Managers Ltd which is authorised and regulated by the Financial Conduct Authority.

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