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Advisers and wealth managers

Artemis 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 produce a rising income with capital growth from a portfolio primarily made up of investments in the UK including ordinary shares, convertibles and fixed interest securities.

Current prices and yield
(class R)

As at noon, 30 March 2017
Bid price (acc units)394.79p
Bid price (dist units)221.54p
Offer price (acc units)418.43p
Offer price (dist units)234.80p
Historic yield (acc units)3.91%
Historic yield (dist units)4.03%

Investment information
(class R)

Minimum lump sum investment£1,000
Ongoing charge (acc units)1.54%
Ongoing charge (dist units)1.54%

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 UK equity market shrugged off its torpid start to the year by registering a gain of 3.1% in February. During the month bond yields fell back and there was some rotation back towards to defensives, supported by the surprising - but short-lived - bid for Unilever. It is difficult not to wonder if something is amiss in the world of consumer staples. Initiatives on costs and margins are to the fore and yet trends in sales look lacklustre at best. A cynic might say that M&A and leverage are being seen as panaceas by an industry that has perhaps leant too heavily on price over volume. Time will tell.

It is difficult not to wonder if something is amiss in the world of consumer staples.

For our insurance holdings, the Lord Chancellor’s decision on the Ogden bodily injury discount rate (a way of calculating compensation for personal injury) was unexpected and negative but this setback looks to be short term in nature. Elsewhere results from RELX and Wolters Kluwer reaffirmed their long-term credentials.

The only transaction of note was the purchase of Nordea (a Swedish financial services group operating in the Nordic and Baltic region). It has an attractive yield and we see the current negative interest rates as anomalous with the underlying inflation and growth rates in the region. Nordea has already generated decent returns but higher interest rates would be a significant help.

14 February 2017

Adrian Frost: In inflationary times …

For the first time in a decade, investors face the prospect of rising inflation. At the same time, many industries are going through structural changes. Adrian Frost, manager of the Artemis Income Fund, talks to Artemis’ Ross Leckie about stockpicking in interesting times.

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

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

Data from 6 June 2000. 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)

12 months to 31 December9.7%4.4%3.5%23.7%14.0%
12 months to 28 February15.2%-4.3%7.4%16.5%17.5%
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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Adrian Frost: In inflationary times …

Security Code

About the fund

The Artemis Income Fund is one of the UK’s largest equity income funds. Its aim is simple – to provide investors with a steady and growing income along with long-term capital growth.

The fund mainly invests in companies listed in the UK, but it does have the flexibility to invest overseas when attractive opportunities arise. Its holdings tend to be stable, well-established businesses with the financial strength to pay solid dividends to their shareholders.

  • Regular income: the managers look for companies with a strong free cashflow and that are likely to produce a good dividend yield.
  • Reliable returns: the companies in which the fund invests tend to be large, secure, financially stable and well-established businesses.
  • A safe pair of hands: managers Adrian Frost and Nick Shenton have many years’ experience of managing income funds.
  • Well-diversified: the fund holds a well-diversified portfolio of between 60 and 100 stocks and is not overly exposed to any one industry or company. Position sizes in the fund reflect the upside potential in a stock and the managers’ level of conviction – not a company’s weighting in the index.

Introducing the fund

Adrian Frost and Nick Shenton introduce the Artemis Income Fund and outline how they make investment decisions.

Reasons to consider

The fund may be suitable for investors looking for:

  • a regular income
  • exposure to leading companies, primarily in the UK
  • an experienced team of fund managers with an excellent performance record

The fund’s current SRRI rating is 5.

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.
FTSE International Limited (“FTSE”) © FTSE 2017. “FTSE®” is a trademark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE data is permitted without FTSE’s express written consent.
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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