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Private investors

Artemis Alpha Trust plc

All data as at 30 June 2016 except where specified
  • Summary
  • Performance
  • Composition
  • Key facts
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The fund’s aims

The fund aims to achieve above average rates of total return over the longer term and to achieve a growing dividend stream.

Investment policy

The company's investment portfolio comprises mainly UK and selected international equities, with the potential for investment in limited liability hedge funds, cash and bonds, unquoted investments, derivative instruments and other investments and securities as appropriate.

Current prices

Share price (ordinary)214.00p
Share price (subscription)4.00p
Dividend yield1.7%

Fund manager review

Market movements in June were dominated by the perceived implications of Brexit: a sustained period of ultra-low interest rates in the UK, the possibility of a recession and a prolonged period of uncertainty. Of these the last is certain, but the first two assume the worst. This has divided the market sharply. After the referendum, the large-cap stocks of the FTSE 100 index, many of whom make the bulk of their earnings overseas, found no shortage of willing buyers. The surge into the handful of stocks that pay their dividends in dollars, such as Royal Dutch Shell, BP, GlaxoSmithKline and HSBC, was particularly pronounced. On the other side, however, there was a rush away from stocks exposed to the domestic economy, pushing down the mid- and small-cap indices. Given the Company’s clear preference for smaller, rapidly growing companies, neither trend was helpful. Its net asset value fell by 5.3% while the FTSE All-Share ended the month 2.8% higher. That the FTSE Small-Cap index also fell by 5.3% illustrates the divergence between mega-caps and the domestic stocks, and suggests why the Company’s portfolio struggled in this environment.

Since 24 June, courtesy of the market’s and sterling’s weakness, UK assets are considerably cheaper for US investors than they were.

We are inclined to think this disparity is overdone. There is a case for switching from expensive defensives and international stocks into companies that have been swept along in the domestic negativity - yet which have the characteristics and options at their disposal to outstay such conditions. In time the market will focus on where risk is discounted - as opposed to concentrating on areas into which money has flown unthinkingly. For example, pharmaceuticals will soon find themselves in the eye of the US electoral uncertainty. Although no-one likes an investment opportunity where the good news is less bad news, that could be a basis on which the market recovers its poise. Since 24 June, courtesy of the market’s and sterling’s weakness, UK assets are considerably cheaper for US investors than they were. Finally, the old truism is true: volatility means opportunity. As stockpickers, we believe that the weeks and months ahead should prove fruitful for your Company.

Value of £100 invested at launch to 30 June 2016

Value of £100 invested at launch to 30 June 2016

Relative performance, value of £100 invested on 30 May 2003, the date Artemis was appointed as investment manager.
Source: Artemis/Lipper Limited, bid to bid in sterling with dividends reinvested. All figures show total returns. Past performance is not a guide to future performance.

Asset allocation

Asset allocation

Without cash. The figures above include adjustments to the unquoted investment holdings made after the period end. Source: Artemis as at 30 June 2016. Please note figures may not add up to 100% due to rounding.

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Risk warnings

This information does not constitute an offer, invitation or solicitation to deal in securities.

The value of shares in Artemis Alpha Trust PLC, and any income from them, can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Stockmarket prices, currencies and interest rates can move irrationally and can be affected unpredictably by diverse factors, including political and economic events.

How the shares have performed in the past is not a guide to how they will perform in the future.

A proportion of the investment trust may be invested in emerging markets. Investment in emerging markets can involve greater risk than is customarily associated with more mature markets meaning above average price movements both positive and negative can be expected.

The investment trust may invest in the securities of smaller and/or medium sized companies. This can involve greater risk than is customarily associated with investment in larger, more established companies. The market for securities in smaller companies is often less liquid than that for securities in larger companies, meaning above average price movements both positive and negative can be expected.

The investment trust may borrow money in order to make further investments, which is known as 'gearing'. This can enhance investment returns in rising markets but conversely may reduce returns in falling markets.

FTSE International Limited (“FTSE”) © FTSE 2015. “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.

This information is issued by Artemis Fund Managers Limited which is authorised and regulated by the Financial Conduct Authority.

Financial advisers and retail investors

The Company currently conducts its affairs so that the ordinary and subscription shares in issue can be recommended by financial advisers to ordinary retail investors in accordance with the Financial Conduct Authority’s (“FCA’s”) rules in relation to non-mainstream investment products and intends to do so for the foreseeable future. The ordinary and subscription shares are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are shares in an investment trust.

UK personal investors

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