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Artemis Pan-European Absolute Return Fund

All data as at 31 March 2017 except where specified
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The fund’s aims

The fund aims to achieve a positive return over the longer term, notwithstanding changing market conditions, investing principally in the shares of companies listed, quoted or traded in Europe, including the UK.

Current prices and yield
(class I)

As at noon, 21 April 2017
Mid price (GBP hedged acc shares)121.53p
Historic yield (GBP hedged acc shares)0.00%

Investment information
(class I)

Minimum lump sum investment£250,000
Ongoing charge (GBP acc hedged shares)1.00%

The initial charge is currently waived. The ongoing charge includes the annual management charge of 0.75% and is shown as at the date of the Key Investor Information Document (KIID). A performance fee is charged as 20% of any outperformance of the share class against the greater of the LIBOR 3 month index (in the relevant currency) or zero. A full explanation of the fund's charges can be found in the KIID.

Fund manager’s update

European equities rose in March and the fund gained 2.5%. Government bond markets were quiet, with only German bunds seeing a notable rise in 10-year yields (albeit from very low levels). The oil price was fairly stable despite bearish comments on US inventories - we regard this as encouraging.

Banks made the biggest contribution to the fund’s performance in the month.

Banks made the biggest contribution to the fund’s performance in the month. They are also among our larger net long positions. We have been steadily building this exposure through the second half of 2016 and into 2017. Rising expectations for inflation tend to presage higher interest rates and a steeper yield curve. This is a healthy environment for banks. The tapering of quantitative easing - first in the US and soon in Europe - will support this further. With this improving backdrop, many banks currently trading below book value no longer deserve to do so. Our consumer discretionary holdings also did well, particularly ITV, Mediaset Espana and Swatch. Losers (none of which were individually large) tended to be concentrated in the short book.

Wood Group’s bid for Amec Foster Wheeler boosted our holdings in oil services. While it is always nice to have one of our positions bid for (at least on the long side), we have mixed feelings about this deal. Put simply, Wood Group is getting it too cheaply, paying a price that does not reflect the potential for Amec’s earnings to recover. Fortunately, it is paying in shares so we will simply hold on and take the benefit through the larger vehicle.

With the never-ending cycle of the reporting season almost upon us, newsflow has temporarily ebbed. This won’t last long and we are looking forward to scrutinising companies’ results for further evidence of what seems to be a globally-synchronised economic recovery.

14 September 2016

Paul Casson: Opportunities abound …

Central banks continue to dominate markets. Underneath that, though, there is considerable rotation between sectors in Europe, says Paul Casson.

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

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

Data from 14 July 2014. Source Lipper Limited, class I GBP hedged accumulation shares, mid to mid in sterling to 31 March 2017. All figures show total returns with dividends reinvested.

Net sector exposure

Percentage growth (class I)

20172016201520142013
12 months to 31 March8.7%8.6%n/an/an/a
20172016201520142013
12 months to 31 March8.7%8.6%n/an/an/a
Please remember that past performance is not a guide to the future. Source: Lipper Limited, accumulation units, bid to bid in sterling. All figures show total returns with dividends reinvested. As the fund was launched on 14 July 2014, complete five year performance data is not yet available.

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Paul Casson: Opportunities abound …





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Risk warnings

THIS INFORMATION IS FOR PROFESSIONAL ADVISERS ONLY and should not be relied upon by retail investors.

There is no guarantee that the fund will achieve a positive return over the longer term or any other time period and investors' capital is at risk.

The fund will 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 hold large cash deposits.

The costs and benefits of currency hedging transactions will apply to hedged shares.

Artemis Fund Managers Limited is entitled to a performance fee per share.

The additional expenses of the fund are currently capped at 0.25%. This has the effect of capping the ongoing charge for the class I shares issued by the fund at 1%. 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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