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Private investors

Artemis Global Energy 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 achieve long-term capital growth primarily from a portfolio of companies engaged in the oil and gas sector, energy generation and transmission. Additionally, the fund may invest in companies seeking to develop and exploit new energy technologies, and companies that service the energy sector

Current prices and yield
(class R)

As at noon, 30 March 2017
Bid price (acc units)31.75p
Offer price (acc units)33.68p
Historic yield (acc units)0.38%

Investment information
(class R)

Minimum lump sum investment£1,000
Ongoing charge (acc units)1.77%

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

Share prices across the energy sector gave back some of their recent gains in February and the fund fell by slightly more than its benchmark. Headline returns, however, disguised the tensions in oil and gas markets. Over recent months, we have increased the fund’s weighting in selected major oil companies. This has allowed the fund to avoid the worst of the volatility and outperform its benchmark over the three, six and 12 months to the end of February. Markets are tense because the effect of Opec’s cuts in January has yet to translate to a fall in inventories in the US: Opec’s imports to the US are still looking high. That it takes 50 to 60 days for oil produced by Opec to be shipped to US markets means we need to wait until March to see the effects.

Markets are tense because the effect of Opec’s cuts in January has yet to translate to a fall in inventories in the US …

In the meantime, full-year and fourth quarter results from oil companies have been under extreme scrutiny. Markets seem to have been looking for flat to rising production at no extra cost, which is impossible. Within our mid-cap US exploration and production (E&P) holdings, Concho, Newfield, EOG Resources and Continental all talked about higher capital expenditure than markets were expecting and all subsequently underperformed. Oasis, Pioneer and Conoco announced more modest spending with flatter production. In our view, this is hair-splitting. None of the companies raised their plans for spending very aggressively and most portfolios of assets looked intact and able to grow with oil prices trending upwards.

Of greater interest to us this month was our re-analysis of the major oil companies, breaking each down to individual countries and fields to analyse cashflows out as far as 2030. We were also able spend time with the management of our preferred integrated oil companies: BP, Total and Shell. The major oil companies have had to change the way they operate. It’s not just about cutting staff and renegotiating rig rates. The big oil companies need new methods, new organisations and new values. BP is going the furthest in our view. So we are holding onto our top positions, slotting in new ideas like SDX Energy but mostly deriving value from ‘best in class’ integrated oil and E&P.

21 December 2016

Richard Hulf: Interpreting Opec …

Richard Hulf, manager of the Artemis Global Energy Fund, talks to Artemis’ Vik Heerah about Opec’s recent agreement and its likely effect on the oil price.

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 April 2011. 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 December64.0%-30.1%-27.1%-5.5%1.7%
20172016201520142013
12 months to 28 February56.7%-25.9%-28.3%-14.5%-5.3%
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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Richard Hulf: Interpreting Opec …





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About the fund

The Artemis Global Energy Fund pursues long-term capital growth by investing in companies in the oil and gas sector, as well as in companies that generate and transmit energy. It has a bias towards younger and more promising energy companies.

  • Diversification: the fund is able to invest in companies across the world and across the energy spectrum – from oil & gas exploration companies to large integrated energy companies, refiners, transmission companies and their suppliers.
  • A focused approach: from a universe of around 2,000 stocks, the managers pick around 40 that they believe will reward investors over the medium and longer term.
  • ‘Thematic’ and ‘basin’ investing: the managers use two approaches to source stock ideas. A ‘thematic’ approach involves looking at broad trends in the energy sector and the investment opportunities that result. ‘Basin’ investing focuses on existing and potential energy-producing hotspots and on the companies operating in those areas.
  • Specialist insight: the fund combines the stock-picking skill of John Dodd with the petroleum engineering background of Richard Hulf. Their detailed technical and financial analysis underpins the portfolio.

Reasons to consider

The fund may be suitable for investors looking for:

  • direct exposure to global energy stocks
  • a higher risk investment than a broader global equity fund, but one with the potential for high returns
  • a management team with energy industry experience

Introducing the fund

Richard Hulf introduces the Artemis Global Energy Fund and outlines how he and fellow manager John Dodd make investment decisions.

Risk considerations

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

  • This is a focused fund, holding a relatively small portfolio of companies that the managers believe offer significant growth opportunities.
  • The energy industry can be unpredictable, as can be seen from recent oil price volatility. Unforeseeable political events can have a significant impact on share prices.
  • Some of the fund’s investments are in newly established businesses, in smaller companies and in less-stable countries. This can mean your capital is more vulnerable to financial or business failure.
  • The fund's focus on energy stocks makes it riskier than a fund investing across a wider spread of industries. The opportunity is greater – but so is the possibility of losing money. And you might experience significant ups and downs along the way.
  • 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 fund may have a concentrated portfolio of investments. This can be more risky than spreading investments over a larger number of companies.

The fund may be subject to additional risks peculiar to the energy sector, in addition to those associated with investing in the stockmarket. For example, the value of the fund may be influenced by fluctuations in energy and commodity prices. Energy prices can, in turn, be affected by changes in inflation, exchange rates and interest rates as well as by political, economic or financial events. There is no guarantee that the investment manager will be able to mitigate these risks.

The fund may invest in the shares of small and medium-sized companies. Shares in smaller companies carry more risk than larger, more established companies because they are often more volatile and, under some circumstances, harder to sell. In addition, information for reliably determining the value of smaller companies – and the risks that owning them entails – can be harder to come by.

The fund may invest in emerging markets, which can involve greater risk than investing in developed markets. In particular, more volatility (sharper rises and falls in unit prices) can be expected.

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.

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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