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Artemis Monthly Distribution 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 an income in addition to capital growth through an actively managed combination of global equities, bonds and cash.

Current prices and yield
(class R)

As at noon, 22 March 2017
Bid price (acc units)87.42p
Bid price (dist units)72.04p
Offer price (acc units)92.66p
Offer price (dist units)76.36p
Historic yield (acc units)3.80%
Historic yield (dist units)3.96%

Investment information
(class R)

Minimum lump sum investment£10,000
Ongoing charge (acc units)1.64%
Ongoing charge (dist units)1.64%

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

Government bonds were surprisingly strong in February. Gilts seemed to rally in anticipation of a weaker economy associated with Brexit. The fear of a breakup of the eurozone, meanwhile, forced naturally pessimistic bond investors to seek the safest of havens - so German bunds witnessed strong demand despite their substantially negative yields. Because we continue to run a short gilt position, this flight to safety has been unhelpful for the fund’s short-term performance.

The fear of a breakup of the eurozone, meanwhile, forced naturally pessimistic bond investors to seek the safest of havens…

On the other hand, our overweight position in financial bonds - especially those junior bonds known as ‘cocos’­ - helped. These bonds count towards a bank’s capital and offer relatively high yields but can be converted into equity or written off entirely should the issuing bank’s capital drop below a certain level. Because the steepening yield curves and higher interest rates (especially in the US) are expected to boost banks’ profitability, they have rallied strongly. Furthermore, banking regulation is likely to be loosened somewhat under Trump’s presidency and the Department of Justice’s fines are nearing their conclusion.

Further, the fund’s weighting to high-yield bonds has been helpful. Demand for the asset class has been strong - so much so that yields for some short-call bonds are negative. We have sold these. We were fortunate that technical issues mean our RWE bonds will no longer count as capital. This means they are effectively becoming senior bonds and a re-rating has taken place. This has helped their performance.

In equities, the powerful rally in cyclical ‘value’ stocks seen in the second half of last year paused for breath in February. So the fund’s best performers tended to be more defensive holdings such as Rai Way (an Italian infrastructure company) and Imperial Brands. For now, the equity market seems to be following the more cautious mood evident in the bond market. The outlook for government bonds, however, continues to look difficult. We have been slightly surprised by recent fall in yields and continue to believe that sustained economic growth, higher inflation and higher global interest rates will push yields higher in time.

The main danger, of course, lies in politics. Given the unpredictability of recent election results, the imminent French elections are making bond markets nervous. Although a win for Marine Le Pen remains highly unlikely, it would be a disaster for the euro.

We have been pleased with the outperformance of our bank bonds and feel this has further to run. Despite their good performance, yields remain attractive. Meanwhile, capital levels are higher and fines for misconduct are becoming a thing of the past - so banks are becoming ever more bond-friendly. Further, we think our hybrid and high-yield bonds still have room to outperform. The fundamentals remain positive and supply is dwindling, especially in sterling. In equities, we retain exposure to more economically sensitive areas. Although sentiment is against them, news from our holdings in this area remains very strong. BHP Billiton, for instance, reported a 65% increase in underlying earnings and, signalling management’s confidence, increased its dividend.

16 September 2016

James Foster: Issues of antithesis …

Maintaining the optimum yield from the Artemis Monthly Distribution Fund remains the managers’ priority, says James Foster.

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

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

Data from 21 May 2012. 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 December17.1%7.1%8.3%17.1%n/a
12 months to 28 February23.7%-0.9%11.8%11.2%n/a
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. As the fund was launched on 21 May 2012, complete five year performance data is not yet available.

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James Foster: Issues of antithesis …

Security Code

Artemis Global Select Fund

An introduction to the Artemis Monthly Distribution Fund



Actively managed

Proven performer

A focus on income

Option for retirement

Fund Managers James and Jacob

General Performance Illustration


 MDF Globe

Actively managed by two experienced specialists; James Foster of the Artemis Strategic Bond Fund, and Jacob de Tusch-Lec of the Artemis Global Income Fund.

 Since launch in May 2012, it is the top performing fund in the IA Mixed Investment 20-60% Shares sector, returning 90.1% compared to a sector average of 41.6%*.

The managers are aware that yields may change and so are prudent in their search for income, balancing risk and reward.

The fund provides global diversification with exposure to equities and bonds. It may be suitable to provide income in retirement.

Investment insights

1 Nov 2016
In the press
RSMR: Why we rate the Artemis Monthly Distribution Fund
7 Feb 2017
Artemis Monthly Distribution Fund: Focusing on fundamentals…
Politics will remain to the fore in 2017. However, James Foster and Jacob de Tusch-Lec, co-managers of the fund, discuss how they will continue to concentrate on economic fundamentals.
17 Nov 2016
… risks & potential solutions
We explain the risks that individuals should consider – and, importantly, the strategies that could help mitigate those risks.



The Adviser Centre Recommended Rating Dynamic Planner 5

Citywire plus - Jacob de Tusch-Lec
Jacob de Tusch-Lec

Morning Star Bronze

FE Crown 5 

Citywire ratings: source and copyright Citywire, Jacob de Tusch-Lec is rated by Citywire for his risk adjusted performance for the 3 years to 28 February 2017. Third party endorsements are not a recommendation to buy.


Further information ...

Fund factsheet

Reasons to invest

Latest report and accounts


*Data from 21 May 2012. 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 is IA Mixed Investment 20-60% Shares NR, universe of funds is those reporting net of UK taxes.**Source: Artemis. Yield quoted is the historic class I distribution yield as at 28 February 2017.

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 use derivatives to meet its investment objective, to protect the value of the fund, to reduce costs and with the aim of profiting from falling prices.
The fund may invest in emerging markets.
The fund may invest in fixed interest securities.
The fund may invest in higher yielding bonds.
The fund holds bonds which could prove difficult to sell. As a result, the fund may have to lower the selling price, sell other investments or forego more appealing investment opportunities.
The additional expenses of the fund are currently capped at 0.14%. This has the effect of capping the ongoing charge for the class I units issued by the fund at 0.89% and for class R units at 1.64%. Artemis reserves the right to remove the cap without notice.
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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