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Private investors

Artemis Strategic Assets 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 objective of the fund is to achieve long-term growth through investment in a portfolio of UK and international assets. The fund will take a broadly ‘multi-asset’ approach with the intention to perform well when markets are favourable, and preserve capital when markets are poor. It therefore aims to provide longer term positive returns under most market conditions, outperforming both cash and equities over rolling three-year periods.

Current prices and yield
(class R)

As at noon, 30 March 2017
Bid price (acc units)83.37p
Offer price (acc units)88.17p
Historic yield (acc units)0.00%

Investment information
(class R)

Minimum lump sum investment£1,000
Ongoing charge (acc units)1.61%

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 fund fell by 0.1% which compares with a rise of 3.1% in the FTSE All-Share index. Our precious metals made a positive contribution of 0.6% and our equities added 0.5%. But these were offset by our bond shorts which made losses of 1.1%.

Equity markets were strong again, responding to improving economic data in the developed world.

Equity markets were strong again, responding to improving economic data in the developed world. Unemployment in America, Japan and the UK has been low for some time now. In most areas of these countries jobs are available for those that want them. Job vacancies are at multi-year highs and stories abound of skills shortages. Wage growth is picking up and likely to rise further if economic growth remains good. Even in Europe there are signs of life. Unemployment is falling and surveys suggest that businesses and consumers are becoming more confident.

Inflation is also rising. In America CPI is now 2.5% and the core measure (which excludes food and energy) is 2.3%. German inflation has crept up to 2.2% and in the UK it is 1.8%. The eurozone purchasing managers’ index (PMI) for both services and manufacturing has reached 69-month highs. PMI figures in America are at similar levels, the highest since 2014.

Despite this strong data, bond yields fell in February. Bond bulls believe that much of the increase in inflation is due to the rising oil price and is transitory. The equity market foresees further economic growth ahead and is relaxed at gently rising inflation. However, if economic growth continues to rise, it becomes harder for central banks to justify zero interest rates, let alone quantitative easing. American interest rates are expected to increase this year. Other central bankers might have to suspend their money printing programmes. I would be surprised if markets respond favourably to such outcomes.

24 March 2017

In the business of bonds …

Bond yields remain very low (or negative) despite strong economic data and signs of inflation. So William Littlewood is maintaining his short in government bonds.

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

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

Data from 26 May 2009. Source: Lipper Limited, accumulation units, bid to bid in sterling to 28 February 2017. All figures show total returns with dividends reinvested.

Percentage growth (class R)

12 months to 31 December15.8%-2.8%-1.7%14.4%10.2%
12 months to 28 February19.5%-7.2%2.0%5.4%11.4%
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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In the business of bonds …

Security Code

About the fund

The Artemis Strategic Assets Fund has a simple objective: to perform well when markets are favourable and to safeguard capital when conditions are poor.

To do this, it invests in a variety of asset classes. Equities are the fund’s mainstay but it will also hold bonds, commodities and currencies when appropriate, their proportions changing as economic and market conditions evolve.

  • Aims to safeguard capital: the fund’s manager, William Littlewood, believes that an actively managed, multi-asset fund can generate positive returns over the long term, while also aiming to limit the impact of falls in challenging times. 
  • Aware of the wider economic situation: William considers the economic factors that will affect the performance of different assets over the long term.
  • Flexibility: the fund aims to outperform both cash and equities over the longer term. In pursuit of that goal, the manager has the flexibility to move between higher and lower holdings of equities, depending on economic and market conditions. 
  • All-weather portfolio: while some funds are restricted to buying assets whose value they believe will increase, the Artemis Strategic Assets Fund employs techniques that allows it to profit from falling prices, known as ‘shorting’.
  • A spread of investments: the fund’s multi-asset portfolio offers investors instant diversification. In addition to a core portfolio of high-quality equities, it has the flexibility to spread its holdings across fixed interest markets, commodities and currencies.

Reasons to consider

The fund may be suitable for investors looking for:

  • the potential for long-term capital growth
  • the prospect of some protection against falling markets
  • a highly experienced manager
  • a fund which uses complex and technical investment instruments to achieve its objectives

Introducing the fund

William Littlewood introduces the Artemis Strategic Assets 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.

  • The manager invests in different types of assets, including more complex and risky financial instruments, and in emerging markets, which can be more volatile than mature markets.
  • The fund aims to preserve investors’ capital should markets fall (though this can’t be guaranteed). This caution means that the fund may not reap the full benefit when equity markets rise.
  • 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

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 use derivatives (financial instruments whose value is linked to the expected price movements of an underlying asset) for investment purposes, including taking long and short positions, and may use borrowing from time to time. It may also invest in derivatives to protect the value of the fund, reduce costs and/or generate additional income. Investing in derivatives also carries risks, however. In the case of a ‘short’ position, for example, if the price of the underlying asset rises in value, the fund will lose money.

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 fund may invest in fixed-interest securities. These are issued by governments, companies and other entities and pay a fixed level of income or interest. These payments (including repayment of capital) are subject to credit risks. Meanwhile, the market value of these assets will be particularly influenced by movements in interest rates and by changes in interest-rate expectations.

The fund may invest in higher yielding bonds, which may increase the risk to your capital. Investing in these types of assets (which are also known as sub-investment grade bonds) can produce a higher yield but also brings an increased risk of default, which would affect the capital value of your investment.

The fund may hold large cash deposits with the aim of protecting the value of the fund. This can mean that, when markets are rising, the return on your investment will be less than if it were fully invested in other types of asset.

The fund may invest in exchange-traded funds (ETFs). These investments track an index, a commodity or a basket of assets much like an index fund, but they trade on an exchange like a company share. The price of an ETF may, at times, deviate from the value of the underlying investments.

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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