skip to content.

Advisers and wealth managers

Artemis Global Income Fund

All data as at 28 February 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, 22 March 2017
Bid price (acc units)122.00p
Bid price (dist units)93.98p
Offer price (acc units)128.85p
Offer price (dist units)99.26p
Historic yield (acc units)2.90%
Historic yield (dist units)2.98%

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 powerful rally in cyclical ‘value’ stocks and financials seen in the second half of last year - and which carried over into January - paused for breath in February. Although global equity indices crept higher, the gains tended to be led by more defensive areas. In this, the equity market seemed to be following the more cautious mood evident in the bond market. Having risen sharply since the summer, yields on safe-haven government bonds, including 10-year US Treasuries, fell slightly on the month. Yields on two-year German government bunds, meanwhile, hit new lows. On first view, that seems counter-intuitive: economic data from around the world remains strong and there are signs of inflation after a decade’s absence. In Europe, for instance, the composite PMI hit its highest level since 2011 and inflation in Germany picked up. Yet despite this, bond investors aren’t fully buying into the vision of a world of stronger, more consistent economic growth and higher inflation.

The unpredictability of President Trump’s administration caused political risk premia to increase.

How to account for this fall in yields? More importantly, should equity investors worry? All the structural factors that support bond prices, such as the regulations enacted in the wake of the financial crisis obliging financial institutions to buy them - and the fear of investing in volatile assets - remain. At the same time, there is a sense that the balance of political risks has changed. The unpredictability of President Trump’s administration caused political risk premia to increase. A similar dynamic was also at work in Europe. Although the prospect of Marine Le Pen becoming the next president of France (and endangering the future of the eurozone) remains somewhat remote, the struggles of her opponents have added to that risk, even if only at the margin. So we don’t necessarily interpret lower bond yields as a sign of a slowdown in the economy. Instead we see them as a function of a shortage of ‘safe’ assets. German government bunds, for instance, are not traded on valuation but being held as insurance against negative ‘tail risk’ outcomes in Europe.

Paradoxically, it could also be the case that strong data on the US economy is contributing to fears of a slowdown. Might the US economy be in danger of overheating when (or if) Trump’s fiscal stimulus is applied? Strong data releases on the US economy - the number of Americans applying for first-time unemployment benefits recently touched a 44-year low - meant the market has increasingly come to accept not only that the Federal Reserve (Fed) would likely increase base rates in March but that another two increases are possible this year. Has the risk of the Fed making a policy mistake - encouraging it to act too aggressively to pre-empt inflation - increased? While a 50 basis point increase still seems rather unlikely, it is no longer beyond the realms of possibility. The mood has changed.

From the fund’s perspective, that economically sensitive ‘value’ stocks fell slightly out favour meant that it lagged the market’s rise in February, snapping a strong run of outperformance reaching back to last summer. On a stock level, however, news from many of our holdings was excellent. For example, mining companies tended to report sharp increases in earnings. BHP Billiton, one of our top-10 holdings, reported a 65% increase in underlying earnings and, signalling management’s confidence, increased its dividend. Yet the market greeted this news - and news like it - with little more than a shrug. In part, this may be a case of reality belatedly catching up with the transformation in expectations that took place in the second half of last year. At the same time, there does seem to be a feeling in some quarters that this might be ‘as good as it gets’ for the global economy. Lower bond yields are helping to reinforce that notion and making some investors pause before committing more capital to more cyclical areas.

Our response has been measured. We acknowledge that the synchronised expansion across all regions of the global economy won’t last forever. We also see a risk the Fed moves too fast on rates - and we admit we have no idea what President Trump might do next. A technical term for being afraid of politicians’ actions is ‘policy risk’. We now have monetary policy risk (that the Fed tightens too much or too quickly), fiscal policy risk (that Trump’s fiscal irresponsibility leads to higher bond yields) and geopolitical risks (as Trump changes US military imperatives, dangerous situations are emerging in Asia and in the Middle East). At the same time, data shows strong growth continuing while news from our (still somewhat cheap) cyclical stocks remains extremely positive. So we are seeking to manage the balance of risks in the portfolio. It seems wise not to be positioned too narrowly for any one particular outcome. At the time of writing, some of the fund’s largest holdings are stocks geared into stronger global growth such as General Motors, Western Digital and BHP Billiton. Offsetting that, however, we do own a number of less economically sensitive European infrastructure assets such as Euskaltel, INWIT, Rai Way and EI Towers. Meanwhile, after a strong run higher in late 2016 we have lowered the fund’s exposure to financials a little. So while we acknowledge that political and economic conditions remain uncertain, we think the fund - with its below-market p/e and above-average dividend yield - is still well-placed to prosper.

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 28 February 2017

Value of £1,000 invested at launch to 28 February 2017

Data from 19 July 2010. Source Lipper Limited,distribution units, bid to bid in sterling to 28 February 2017. All figures show total returns with dividends reinvested.

Asset allocation

Asset allocation

Source: Artemis as at 28 February 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 28 February29.9%-3.1%18.2%14.8%25.2%
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.

Email this article:

Jacob de Tusch-Lec: Macro matters …





CAPTCHA Image
Refresh
Security Code

Artemis Global Income Fund

  • Proven performance, returning 171.3%* since launch compared to a sector average of 104.5%*
  • 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 £6.5bn† 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 28 February 2017 (%)

 

Since launch*

5 years

3 years

1 year

Artemis Global Income

171.3

121.3

52.1

30.4

Sector average

104.5

74.6

41.4

28.6

Position in sector

1/13

1/20

8/29

9/34

Quartile

1

1

2

2

* Data from 19 July 2010. Source: Lipper Limited, class I distribution units, bid to bid in sterling to 28 February 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 28 February 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 28 February 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.

Our latest update

Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, talks about recent developments and how the fund is positioned.

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 28 February 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 28 February 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.

UK financial advisers and wealth managers

I confirm that I am a UK financial adviser or wealth manager and that I agree to and will comply with the terms and conditions of use of this website.

The information contained in these pages should not be used or relied upon by private investors.