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Private investors

Artemis Income 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 produce a rising income with capital growth from a portfolio primarily made up of investments in the UK including ordinary shares, convertibles and fixed interest securities.

Current prices and yield
(class R)

As at noon, 30 March 2017
Bid price (acc units)394.79p
Bid price (dist units)221.54p
Offer price (acc units)418.43p
Offer price (dist units)234.80p
Historic yield (acc units)3.91%
Historic yield (dist units)4.03%

Investment information
(class R)

Minimum lump sum investment£1,000
Ongoing charge (acc units)1.54%
Ongoing charge (dist units)1.54%

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 UK equity market shrugged off its torpid start to the year by registering a gain of 3.1% in February. During the month bond yields fell back and there was some rotation back towards to defensives, supported by the surprising - but short-lived - bid for Unilever. It is difficult not to wonder if something is amiss in the world of consumer staples. Initiatives on costs and margins are to the fore and yet trends in sales look lacklustre at best. A cynic might say that M&A and leverage are being seen as panaceas by an industry that has perhaps leant too heavily on price over volume. Time will tell.

It is difficult not to wonder if something is amiss in the world of consumer staples.

For our insurance holdings, the Lord Chancellor’s decision on the Ogden bodily injury discount rate (a way of calculating compensation for personal injury) was unexpected and negative but this setback looks to be short term in nature. Elsewhere results from RELX and Wolters Kluwer reaffirmed their long-term credentials.

The only transaction of note was the purchase of Nordea (a Swedish financial services group operating in the Nordic and Baltic region). It has an attractive yield and we see the current negative interest rates as anomalous with the underlying inflation and growth rates in the region. Nordea has already generated decent returns but higher interest rates would be a significant help.

14 February 2017

Adrian Frost: In inflationary times …

For the first time in a decade, investors face the prospect of rising inflation. At the same time, many industries are going through structural changes. Adrian Frost, manager of the Artemis Income Fund, talks to Artemis’ Ross Leckie about stockpicking in interesting times.

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

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

Data from 6 June 2000. Source Lipper Limited, distribution 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 December9.7%4.4%3.5%23.7%14.0%
20172016201520142013
12 months to 28 February15.2%-4.3%7.4%16.5%17.5%
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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Adrian Frost: In inflationary times …





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About the fund

The Artemis Income Fund is one of the UK’s largest equity income funds. Its aim is simple – to provide investors with a steady and growing income along with long-term capital growth.

The fund mainly invests in companies listed in the UK, but it does have the flexibility to invest overseas when attractive opportunities arise. Its holdings tend to be stable, well-established businesses with the financial strength to pay solid dividends to their shareholders.

  • Regular income: the managers look for companies with strong positive cashflows and that are likely to produce a good dividend yield.
  • Reliable returns: the companies in which the fund invests tend to be large, secure, financially stable and well-established businesses, and therefore usually more reliable in producing returns.
  • A safe pair of hands: managers Adrian Frost and Nick Shenton have many years’ experience of managing income funds.
  • Well-diversified: the fund holds a well-diversified portfolio of between 60 and 100 stocks and is not overly exposed to any one industry or company. Holdings in the fund reflect the level of expected return from a stock and the managers’ confidence in the company – not the company’s weighting in the index.

Reasons to consider

The fund may be suitable for investors looking for:

  • the prospect of a regular income
  • exposure to leading companies, primarily in the UK
  • an experienced team of fund managers with an excellent performance record

Introducing the fund

Adrian Frost introduces the Artemis Income Fund and outlines how he and co-manager Nick Shenton make 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 mostly in larger UK (and some overseas) companies, primarily substantial stable businesses. The managers carefully scrutinise companies before investing, looking for those that are likely to deliver regular dividends each year and good returns over the longer term.
  • Investors should be aware, though, 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 fall.
  • 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 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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