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Private investors

Artemis Global Income 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 a rising income combined with capital growth from a wide range of investments. The fund will mainly invest in global equities but may have exposures to fixed interest securities. We will not be restricted in our choice of investments, regardless of size of the company, the industry it trades in or the geographical split of the portfolio.

Current prices and yield
(class R)

As at noon, 24 February 2017
Bid price (acc units)121.14p
Bid price (dist units)93.32p
Offer price (acc units)127.86p
Offer price (dist units)98.50p
Historic yield (acc units)2.93%
Historic yield (dist units)3.00%

Investment information
(class R)

Minimum lump sum investment£1,000
Ongoing charge (acc units)1.56%
Ongoing charge (dist units)1.56%

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 global economy remains in a sweet spot for equities. Growth is robust, interest rates are still at (or near) record lows and we are about to get a bout of fiscal stimulus in the US (and perhaps even in Europe). Purchasing managers’ indices are above 50 (signalling expansion) in the three major regions of the global economy, unemployment is falling and commodity prices are picking up. Ordinarily, our satisfaction with all this would be tempered by looking ahead to what might happen in 12 months’ time. Markets are priced with reference to expectations for the future and although the current strength of the global economy is unmistakable, the inevitable question is when the next recession will hit. We believe the probability of a recession this year is diminishing (the caveat being political risks) yet there is a huge amount of scepticism towards the trends unfolding in equity markets.

Although we are not complacent, and acknowledge that the global economy will slow at some point, we believe the rehabilitation of cyclical areas of the market still has further to go.

A year ago, it was not uncommon to find investors who believed China was on the brink of collapse and that a period of recession and deflation in the global economy beckoned. By last July, things had improved dramatically and bond yields had bottomed out. Yet the earlier scepticism lingered. Today, the argument of pessimists has moved on: they now insist that this is ‘as good as it gets’. Clearly, there will be a slowdown at some point, but there is great reluctance in some quarters to acknowledge the health of the global economy. With economic data all pointing in a positive direction, large areas of the stockmarket are becoming ‘investible’ once again: buying financials, mining companies or even banks is no longer unthinkable. The magnitude of the gains in these areas is not just a consequence of their earnings recovery (although that has helped) - it also reflects their rediscovered investibility. After a long period of neglect, these areas are attracting capital. That creates positive share-price momentum, enhancing their credentials and so creating a self-reinforcing trend. And as these cheap areas are rehabilitated, they are draining capital away from areas - safe havens and bond proxies - where valuations had risen to stratospheric levels in response to unsustainably low yields on government bonds.

Our fund is benefiting from that process. Not only does it have less exposure to the expensive, safe-haven areas of the market from which capital is ebbing away, it also has more exposure to ‘value’. Furthermore, our value stocks tend not to be the most distressed stocks that led the early stages of last year’s recovery, such as, for instance, Brazilian mining companies. Such investments tend not to be suitable investments for an income fund like ours, with our focus on sustainable cashflows. Instead, we often find value in less obvious places. These include mid caps, stocks that are cheap due to political uncertainty (the fund is overweight in Europe) along with idiosyncratic turnaround or recovery situations. As the rally in ‘value’ broadens out, these second-order beneficiaries are attracting capital.

So that the fund outperformed in January was not only due to its overweight position in basic material stocks (although our exposure there helped). It was also because holdings that were overlooked last year for not belonging to either of the extremes that led the market at different times (expensive, high-quality defensives in the first part of the year; cheap-but-troubled recovery stocks in the summer) began to receive more attention. Although we are not complacent, and acknowledge that the global economy will slow at some point, we believe the rehabilitation of cyclical areas of the market still has further to go. Moreover, we believe that our fund is well placed to perform as the rally in value continues to broaden.

04 November 2016

Jacob de Tusch-Lec: Macro matters …

As politics and central bankers’ actions continue to drive global markets, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, discusses some of the risks and opportunities.

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

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

Data from 19 July 2010. Source Lipper Limited,distribution 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 December21.6%5.7%12.1%32.7%14.7%
20172016201520142013
12 months to 31 January31.9%-4.9%21.4%16.4%23.3%
Please remember that past performance is not a guide to the future. Source: Lipper Limited, distribution units, bid to bid in sterling. All figures show total returns with dividends reinvested.

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Jacob de Tusch-Lec: Macro matters …





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About the fund

The Artemis Global Income Fund aims to offer investors a good, steady and rising income, as well as prospects for capital gain, by investing in dividend-paying companies worldwide.

  • Invests in unrecognised opportunities: thorough company research results in a portfolio that favours large rather than extra-large companies, giving it greater potential for yield and capital growth.
  • Focused approach: the portfolio of around 90 stocks worldwide offers a focused approach – given the investment universe of 5,000 stocks. Importantly, the manager looks for companies that can keep growing their dividends over time.
  • Flexibility: the manager adapts to changing economic conditions by shifting investments between high-yielding quality, cyclical and value stocks.
  • Complements UK equity-income holdings – the fund is designed to complement rather than replicate investors’ existing UK equity-income holdings
  • An extension of Artemis’ successful equity-income process: the fund focuses on companies generating positive cashflows, an approach employed to great success in the Artemis Income Fund.

Reasons to consider

The fund may be suitable for investors looking for:

  • steady income along with the potential for capital growth
  • exposure to the growth potential of companies from around the world
  • the same tried and tested approach to investing for income used in the Artemis Income Fund
  • a fund that complements, rather than replicates, existing holdings in a UK equity income fund

Introducing the fund

Jacob de Tusch-Lec introduces the Artemis Global Income Fund and outlines how he makes investment decisions.

Risk considerations

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

  • This fund invests primarily in large, stable companies. The manager carefully scrutinises companies before investing, looking for those cashflows to support dividend payments and the ability to generate good capital returns over the longer term.
  • The fund also has the flexibility to invest in smaller and more recently established companies that the manager believes have strong growth potential. These types of businesses can be more vulnerable to financial or operational failure.
  • Investors should be aware that the usual risks of investing in stocks and shares apply – companies and stockmarkets can go through periods of turbulence and the value of your investment can go up and down.
  • In addition, a proportion of the fund’s investments may be in emerging markets, which can be more volatile than mature markets.
  • This fund’s ‘SRRI’ risk rating, a measure of how volatile the fund’s performance has been over time, is currently 5, 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.

Because one of the key objectives of the fund is to provide income, the annual management charge is taken from capital rather than income. This can reduce the potential for capital growth.

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 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 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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