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Private investors

Artemis Global Energy Fund

All data as at 31 January 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, 24 February 2017
Bid price (acc units)32.28p
Offer price (acc units)34.16p
Historic yield (acc units)0.37%

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

The energy sector had a subdued start to the year. This is typical for January, when global refineries reconfigure and crude demand tends to dip. In addition, there was a ‘post truth’ story circulating that production in the US would ramp up following Opec’s cuts. This will not be the case: the US is struggling to make up for two years of under-investment and shale production is too slow to respond to current drilling. Royal Dutch Shell’s CEO, Ben van Beurden, agrees. As he put in a recent conversation with us: “US shale may meet demand growth but it cannot cover supply shrinkage as well”. We suspect politics are playing a part here. Let’s just stick to the facts. Oil prices look underpinned in 2017 but there are some unknowns in 2018.

Oil prices look underpinned in 2017 but there are some unknowns in 2018.

Negative sentiment pulled the oil sector down in January. Weak fourth-quarter results from Exxon and Chevron - due mainly to lower refining margins - added to the gloom. ENI was the poorest performer of the integrated companies because of short-term newsflow. But we expect 2017 to be a positive year for new projects. We added to our holding in Total but Shell remains our favourite integrated oil company.

Last month’s purchases, of Antero and Magellan, held up well. Enterprise Products was also a good performer on the back of positive action by President Trump on American pipeline and infrastructure businesses. That our other high-quality exploration and production holdings - Lukoil, Lundin, EOG and Conoco - were either flat or underperformed was entirely due to seasonal negativity. We bought new positions in Painted Pony, Continental and SDX Energy and sold Premier Oil, Carrizo and Schlumberger.

Assuming OPEC, (the Organization of the Petroleum Exporting Countries), reports good compliance with agreed cuts we expect sentiment towards the sector to improve. This will drive what we believe to be a very well-optimised portfolio, configured both defensively and offensively for 2017.

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 31 January 2017

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

Data from 21 April 2011. Source Lipper Limited, accumulation units, bid to bid in sterling to 31 January 2017. All figures show total returns with dividends reinvested.

Asset allocation

Asset allocation

Source: Artemis as at 31 January 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 31 January65.4%-27.1%-27.2%-16.7%-0.1%
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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