Fund Manager's Comment
Data as at 31 October 2008
Despite the sharp falls and moves in the market we didn’t make any large changes to the Fund, although we continue to de-risk. A few names, however, contributed strongly to the negative performance. Cookson (steel and cyclical with high financial gearing), International Personal Finance, Game Group, HBOS and Charter (industrial with exposure to the collapsed shipbuilding sector) were all a drag to performance. Not being in a number of hiding places such as Vodafone and Glaxo also hurt us. Our underweight in food & beverages (which we still see as a very expensive, low-growth place to be) was also negative for performance.
The deleveraging process and consequences of the implosion of the credit bubble has triggered some huge moves which we might never see again: markets down, volatility up, almost all asset classes falling sharply. October itself was unprecedented: peak-to-trough was 24%, then markets bounced 14%.
Value is always an elusive measure and not good as a timing tool. But the UK market is on a p/e ratio of 8x, a level not seen since the early 1980s. This is no guarantee of a bull market around the corner. But present conditions suggest there is proper value and that we are seeing some measurable level of “capitulation” in markets. That is usually not a bad time for equity buyers.
Visit the Artemis Film Club to listen to Jacob de Tusch-Lec talking about the Artemis Capital Fund.
Awards
Capital PDFKey Facts
| IMA Sector | UK All Companies |
|---|---|
| Sedol Number | 0679552 |
| Fund Size (Offer basis) | £460.1m |
| Historic Yield | 2.3% |
| Unit Offer Price | 573.03p |
| Unit Bid Price | 541.62p |
| Valuation | 12 noon daily (UK business days) |
| Min. lump sum investment | £1,000 |
|---|---|
| Min. monthly investment | £50 |
| Launch | 23 December 1986 |
| Launch price | 50p |
| Initial charge | 5% |
| Annual Managemnt Charge | 1.5% |
| Unit type | Accumulation |
| Accumulation date | 7 June |
Data as at 31 October 2008.
Performance
| Since Launch* | 5 years | 3 years | 1 year | 6 months | |
|---|---|---|---|---|---|
| Capital Fund (TR) † | 1040.3 | 11.4 | -23.6 | -45.7 | -35.4 |
| FTSE All-Share (TR) † | 491.5 | 21.3 | -9.3 | -34.4 | -28.2 |
| FTSE 100 (TR) † | 501.5 | 21.5 | -8.4 | -32.3 | -26.7 |
| Sector Average † | 392.4 | 8.8 | -16.2 |
-38.5 | -31.7 |
| Position in Sector | 3 | 125 | 237 | 286 | 269 |
| Funds in Sector | 52 | 252 | 281 | 326 | 331 |
| Quartile | 1 | 2 | 4 | 4 | 4 |
Please remember that past performance is not a guide to
the future.
* Data from 23 December 1986. Source: Lipper Limited, bid to bid in sterling
with net income reinvested to 31 October 2008. All figures show
total returns. †Percentage Growth. Sector is IMA UK All Companies.
Percentage Growth
Artemis Capital Fund 12 Months to 30 September
| 2008 | 2007 | 2006 | 2005 | 2004 |
|---|---|---|---|---|
| -34.1 | 11.8 | 15.8 | 26.4 | 23.8 |
Further Discrete Performance periods.
Source: Lipper Limited, bid to bid in sterling with net income reinvested. All figures show total returns.
Value of £1,000 invested at Launch to 31 October 2008
Data from 23 December 1986. Source Lipper Limited, bid to bid in sterling with net income reinvested to 31 October 2008.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| Royal Dutch Shell 'B' | 8.6% |
|---|---|
| BP | 7.3% |
| AstraZeneca | 5.6% |
| Scottish & Southern Energy | 4.2% |
| HSBC | 4.1% |
| Man Group | 3.4% |
| RWE | 3.2% |
| BAE Systems | 3.0% |
| Pfizer | 2.6% |
| IG Group | 2.4% |
* Without cash.
Source: Internal.
Market Sector Split*
| Oil & Gas Producers | 18.6% |
|---|---|
| Pharmaceuticals & Biotechnology | 10.8% |
| General Financial | 10.2% |
| Banks | 10.1% |
| Gas, Water & Multi-Utilities | 7.5% |
| Aerospace & Defence | 4.3% |
| Electricity | 4.2% |
| Mining | 4.0% |
| Media | 3.9% |
| Other | 26.4% |
* Without cash.
Sector Classification: FTSE Actuaries.
Source: Internal.
% Variance†*
| Royal Dutch Shell 'B' | 4.9% |
|---|---|
| Scottish & Southern Energy | 3.3% |
| RWE | 3.2% |
| Man Group | 2.9% |
| Pfizer | 2.6% |
| AstraZeneca | 2.5% |
| IG Group | 2.3% |
| E.ON | 2.1% |
| BAE Systems | 2.0% |
| RSA Insurance | 1.9% |
† Positive variance between stock % held in the Fund versus FTSE All-Share.
* Without cash. Source: Internal.
Risk Warning
Issued by Artemis Fund Managers Ltd which is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk), 25 The North Colonnade, Canary Wharf, London E14 5HS and is a member of the IMA. Artemis Fund Managers Ltd is a member of the Artemis Marketing Group. We only market our own unit trusts. The value of an investment, and any income from it, can fall as well as rise as result of market and currency fluctuations and you may not get back the amount originally invested.
All data is sourced internally unless otherwise stated.
The historic yield reflects distributions declared over the past twelve months as a percentage of the mid-market unit price, as at the date shown. It does not include any preliminary charge and investors may be subject to tax on their distributions.
