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Artemis Monthly Distribution Fund

All data as at 31 March 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, 21 April 2017
Bid price (acc units)87.30p
Bid price (dist units)71.66p
Offer price (acc units)92.46p
Offer price (dist units)75.89p
Historic yield (acc units)3.91%
Historic yield (dist units)4.06%

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

The strength of government bonds continues to surprise us. Interest rates in the US are rising, although the tone of statements from the Fed has grown more cautious. The UK’s decision to invoke Article 50, meanwhile, seems to have focused attention on the prospect of the economy slowing down as exit negotiations begin.

Looking ahead, expectations for growth and inflation are rising.

Investment-grade bonds have continued to perform well. Within that area of the market, our focus is on bonds issued by insurers and banks. Fortunately, these have outperformed.

It is, however, high-yield bonds that form the core of the portfolio. Weaker prices of commodities, particularly oil, have prompted some to disinvest from the asset class, especially in the US. Because they are less focused on bonds issued by energy companies, high-yield markets in Europe and the UK have been more resilient.

In equities, some of the biggest contributions in March came from our holdings in three Italian telecoms and TV ‘tower’ companies: INWIT, Rai Way and EI Towers. These are stable infrastructure assets with long-term contracts with telecom providers (such as Vodafone and Telecom Italia) and broadcasters such as RAI and Silvio Berlusconi’s Mediaset empire. These have begun to perform well as investors returned to Europe to buy ‘mis-priced’ assets. In addition, there are signs the Italian broadcast and telecoms tower sector will gain blessing from regulators to consolidate, leading to synergies and cost savings. This has prompted a very strong rally in all three stocks, which we think are perfect holdings for an income fund.

Looking ahead, expectations for growth and inflation are rising. We believe the fundamentals will prevail in time and that government bonds will come under pressure. In the short term, however, our short gilt position has hindered performance somewhat.

Meanwhile in the UK, the corporate bond-buying programmes are reaching their conclusion. We believe that traditional corporate bonds are expensive due to buying by the central banks in the UK and Europe. We have been focusing on the more attractive financial bonds, insurance bonds and high-yield bonds that have not been part of these programmes. New issues in the last month have been a helpful means of deploying the cashflows coming into the fund. We have been buying Gazprom, Danske Bank (in a small way as we prefer the equity) and adding to our existing positions.

24 March 2017

Update on the Artemis Monthly Distribution Fund


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

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

Data from 21 May 2012. Source Lipper Limited, distribution units, bid to bid in sterling to 31 March 2017. All figures show total returns with dividends reinvested.

Asset allocation

Asset allocation

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

Percentage growth (class R)

12 months to 31 March21.2%0.4%11.8%10.8%n/a
12 months to 31 March21.2%0.4%11.8%10.8%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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Update on the Artemis Monthly Distribution Fund

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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