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Private investors

Artemis Capital 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
  • How to invest


The fund’s aims

The fund aims to provide investors with a balanced spread of investments for long-term capital appreciation by seeking well-managed companies, primarily in the UK, where we believe there is superior potential for earnings growth.

Current prices and yield
(class R)

As at noon, 30 March 2017
Bid price (acc units)1474.01p
Offer price (acc units)1556.23p
Historic yield (acc units)1.43%

Investment information
(class R)

Minimum lump sum investment£1,000
Ongoing charge (acc units)1.67%

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 manager’s update

From a low of $50 per tonne in the middle of 2016, the price of iron ore climbed to $80 by the end of last year, to $83 by the end of January and to $90 by the end of February. This is the biggest source of profits for Rio Tinto, Anglo American and BHP Billiton - so it has been a helpful dynamic and their shares have performed well over the last six months. Nevertheless, reflecting a mini rotation into ‘safe’ assets, the mining sector weakened during February. But because the economic backdrop does not seem to have deteriorated we continue to be overweight here. The rising price of iron ore probably reflects a strong world economy: 2016 was a good year globally - particularly away from the developed countries - and this is typically associated with rising commodity prices. The fact that other commodities such as copper, lead, lumber, cobalt and foodstuffs have also been firm suggests this trend should not be ignored. We like the materials sector because it is good value, profit forecasts are being upgraded yet it remains under-owned by fund managers.

The fact that other commodities such as copper, lead, lumber, cobalt and foodstuffs have also been firm suggests this trend should not be ignored.

With the results season upon us, we took the opportunity of reviewing the positioning of the portfolio. In general, our stocks saw more upgrades to profit forecasts than the wider market. This suggests we are in a good place: housebuilders, resource stocks and some of the banks delivered good results and saw subsequent upgrades to forecasts. We are happy to remain holders. Where there were disappointments we cut our positions and rotated into more attractive areas. To be more specific, we sold HSBC, Wizz Air, BNP and BP and invested the proceeds in Lloyds Bank, GlaxoSmithKline, FirstGroup and Tate & Lyle.

21 December 2016

Update on Artemis Capital Fund

 

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

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

Data from 9 September 2002, when Artemis took over management of the fund. Source Lipper Limited, accumulation 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)

20162015201420132012
12 months to 31 December8.1%11.0%-0.6%34.8%20.0%
20172016201520142013
12 months to 28 February18.9%-3.4%-0.4%28.8%26.4%
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.

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Update on Artemis Capital Fund





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About the fund

The Artemis Capital Fund seeks long-term capital growth by investing in attractively valued companies, mainly in the UK. It draws on SmartGARP®, Artemis’ in-house software tool that screens companies finances to identify potential winners and promotes timely and objective decision-making.

  • Rigorous stock screening: SmartGARP combats ‘information overload’ by focusing the fund manager’s attention on the stocks with the most attractive financial characteristics.
  • UK-focused: the fund invests predominately in larger companies, many of which are members of the FTSE 100 index. But it also has some exposure to smaller and medium-sized companies along with the flexibility to invest up to 20% in overseas companies.
  • Objective clarity: SmartGARP provides a fact-based framework for comparing the relative attractions of stocks in different markets and sectors around the world. It also promotes timely – and often against-the-trend – decision-making.
  • Human insight: before investing, the manager carries out detailed research to ensure that the investment story behind a SmartGARP recommendation is real.
  • Best ideas: in parallel with assessing potential new holdings, SmartGARP subjects the fund’s existing holdings to constant scrutiny.  By sending a clear signal when a holding’s financial situation appears to be deteriorating, it ensures only the very best ideas remain in the fund, leading to a concentrated portfolio of around 70 to 80 stocks.

Reasons to consider

The Artemis Capital Fund may be suitable for investors seeking:

  • long-term capital growth
  • exposure to the growth potential of  UK-listed companies
  • an objective, systematic approach to investment
  • an experienced fund manager with a proven performance record

Introducing the fund

Philip Wolstencroft introduces the Artemis Capital Fund and outlines his investment approach.

Risk considerations

Before making an investment, investors should consider the level of risk they’re comfortable taking with their money.

  • This fund invests mostly in larger UK companies, primarily large, stable businesses. The manager carefully scrutinises companies before investing, looking for those that will deliver good returns over the longer term.
  • Investors should be aware, though, that the usual risks of investing in shares apply. Companies and stockmarkets can go through periods of turbulence and the value of your investment can fall.
  • This fund’s ‘SRRI’ risk rating, a measure of how volatile the fund’s performance has been over time, is currently 6, in a range of 1 (lower risk) to 7 (higher risk).

More detailed information on fund risks is included in the ‘risk warnings’ section below.

Risk warnings

To ensure you understand whether this fund is suitable for you, please read the Key Investor Information Document, which is available, along with the fund’s Prospectus, from artemis.co.uk.

The value of any investment, and any income from it, can rise and fall with movements in stockmarkets, currencies and interest rates. These can move irrationally and can be affected unpredictably by diverse factors, including political and economic events. This could mean that you won’t get back the amount you originally invested.

The fund’s past performance should not be considered a guide to future returns.

The historic yield reflects distribution payments declared by the fund over the previous year as a percentage of its mid-market unit price. It does not include any preliminary charge. Investors may be subject to tax on the distribution payments that they receive.
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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