Fund Manager's Comment
Data as at 31st July 2008
Some long term trends reversed sharply during the month as the price of oil and other commodities fell. We have also seen some very indiscriminate selling pressure affecting our holding in New Britain Palm Oil, which fell nearly 30% in the month. We believe the long term attractions are still in place and this level of share price is overdone. All our quoted holdings in Energy, such as Solana and Valiant Resources, fell. The former did so when it announced that it is in takeover talks. We expect the deal to be finalised soon. This is a trend we expect to continue in the Oil Exploration sector as corporate investors seek alternatives in building up reserves. We did see a modest uplift in the carrying value of Vostok Energy, following a further funding round and a report on improved reserves.
Given the many geopolitical uncertainties that may affect the oil price, the decision to sell out of the sector is a difficult call. Given the deteriorating economic environment, we still believe it is too early to buy the UK banks and House-builders. We still have a large exposure to the Fund Management sector. It will benefit if the UK stockmarket recovers in the next quarter.
Investment Policy
The Company's investment portfolio comprises mainly UK and selected international equities, with the potential for investment in limited liability hedge funds, cash and bonds, unquoted investments, derivative instruments and other investments and securities as appropriate.
| Directors | Registered Office | Registrars |
|---|---|---|
| S E C Miller (Chairman) D J Barron T Cross Brown A D Dalrymple C E W Peel |
Cassini House 57 St James's Street London SW1A 1LD Company No:253644 |
Capita Registrars The Registry 34 Beckenham Road Beckenham Kent BR3 4TU |
Alpha Trust PDFKey Facts
| Portfolio Yield | 1.20% |
|---|---|
| Gross Dividend Yield | 1.00% |
| Net Gearing | £3.0m |
| Fund Size (Net Assets) | £83.0m |
| Fund Size (Market Cap) | £62.9m |
| NAV - Basic | 254.08p |
| NAV - Diluted | 231.63p |
| Share Price | 192.50p |
| (Discount)/Premium | (16.9%) |
| Sedol number | 0435594 |
|---|---|
| ISIN | GB0004355946 |
| Ticker | ATS/LON |
| Launch | 16th October 1998 |
| No. of Shares in issue | 32,668,488 |
| Management Fee | 0.75% + VAT on market cap |
Data as at 31st July 2008
Performance†
| Since Launch*** | 3 Years | 1 Year | 6 Months | 1 Month | |
|---|---|---|---|---|---|
| Artemis Alpha Trust NAV* | 272.7 | 41.7 | 3.8 | 10.1 | -8.1 |
| Artemis Alpha Trust Share Price** | 146.5 | 8.0 | -9.1 | -4.7 | -17.8 |
| FTSE All Share Index** | 56.9 | 14.9 | -13.3 | -6.2 | -3.6 |
All data as at 31st July 2008. All figures show total returns. † Percentage Growth. * Source: Internal. ** Lipper Limited. The comparative index changed when Artemis took over the management of the Trust on 1st June 2003. *** Data from 19th October 1998.
Percentage Growth - 12 Months to 30th June
| 2004 | 2005 | 2006 | 2007 | 2008 |
|---|---|---|---|---|
| 79.7 | 42.4 | 7.3 | 16.6 | 1.5 |
Source: Lipper Limited, bid to bid in sterling with net income reinvested. All figures show total returns. Past Performance is not a guide to future performance.
Share Price and NAV Performance (in pence)
* Data from 19th October 1998. Source: Internal as at 31st July 2008.
% Growth (over the month)
* Data from 30th June 2008 to 31st July 2008. Source: Internal.
Asset Allocation*
Top Ten Holdings*
| Company | Business Activity | % Fund |
|---|---|---|
| Artemis Investment Management | Investment Management | 12.8 |
| Vostok Energy | Kazakhstan based Oil & Gas Exploration | 9.4 |
| New Britain Palm Oil | Palm Oil Cultivation & Production | 6.3 |
| Salamander Energy | South East Asian based Oil & Gas Exploration | 5.2 |
| Solana Resources | Columbian based Oil & Gas Exploration | 4.3 |
| Hurricane Exploration | North Sea based Oil & Gas Exploration | 4.0 |
| Aricom | Russian Mineral Production | 3.7 |
| Revus Energy | Norwegian Oil & Gas Exploration | 3.2 |
| REA Holdings | Palm Oil Cultivation & Production | 3.2 |
| Geopark Holdings | Latin American Oil & Gas Exploration | 2.9 |
* Source: Internal. Without Cash.
Market Sector Split*
| Oil & Gas Producers | 35.7% |
|---|---|
| General Financial | 23.7% |
| Food Producers | 9.5% |
| Mining | 7.6% |
| Electronic & Electrical Equipment | 3.3% |
| Aerospace & Defence | 3.3% |
| Travel & Leisure | 2.6% |
| Pharmaceuticals & Biotechnology | 2.4% |
| Software & Computer Services | 2.1% |
| Other | 9.8% |
* Source: Internal. Without Cash.
Geographical Breakdown*
| UK | 71.5% |
|---|---|
| Canada | 7.1% |
| Papua New Guinea | 6.3% |
| Norway | 3.2% |
| Bermuda | 2.9% |
| USA | 1.9% |
| Denmark | 1.7% |
| Indonesia | 1.7% |
| Cyprus | 1.2% |
| Other | 2.5% |
* Source: Internal. Without Cash.
Other Information
New Articles of Association Amendment to Article 100 Company Announcements External Site (opens in a new window) View AGM Proxy Voting (6 September 2007) View Interim Management Statement (31st July 2007) Annual Report & Accounts (30th April 2008) Interim Report & Accounts (31st October 2007) Risk Warning
This factsheet has been issued by Artemis Investment Management Ltd, which is authorised and regulated by the Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS. It does not constitute an offer, invitation or solicitation to deal in securities. The value of shares in an investment trust, and any income from them, can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Investments in the securities of smaller companies and in companies in specialist sectors can involve greater risk than investment in larger, more established firms. Likewise investments in emerging markets may be considered higher risk than those in established markets. Investment trusts may borrow money in order to make further investments, which is known as 'gearing'. This can enhance investment returns in rising markets but conversely may reduce returns in falling markets. All data internal unless otherwise stated.
