Fund Manager's Comment
Data as at 31 October 2008
Central banks and governments seem to have stopped the collapse of the banking system. But now other problems are unfolding - namely the collapse in economic activity. As an example, for some time now, each quarter Volvo has taken new orders for between 22,000 and 48,000 trucks. In the three months to 30 September 2008, it took orders for 115 trucks. In similar vein, the cost of renting a container ship fell by 74% during October – taking it back to the lowest levels seen in 20 years. The root cause is the complete drying up of bank lending to businesses. Such statistics are likely to be a precursor to quite some recession.
This has not gone unnoticed by financial markets with European equity indices falling by almost 15%, oil prices by 33% and the euro by 10% versus the dollar - all in just one month. Our ‘steady-as-she-goes’ approach to buying stocks with good growth/value/upgrades remains out of sync with the markets. In effect acting calmly when markets are panicking might seem odd. Nevertheless, we observe that central banks are easing policy, that director buying has surged and that the risk aversion of investors is very high. Going into this environment has been very painful. Coming out of it should be quite good for the fund.
Visit the Artemis Film Club to listen to Philip Wolstencroft talking about the European Growth Fund.
Awards
European Growth PDFKey Facts
| IMA Sector | Europe (ex UK) |
|---|---|
| Sedol Number | 0660084 |
| Fund Size (Offer basis) | £644.1m |
| Historic Yield | 1.4% |
| Unit Offer Price | 135.12p |
| Unit Bid Price | 127.97p |
| Valuation | 12 noon daily (UK business days) |
| Min. lump sum investment | £1,000 |
|---|---|
| Min. monthly investment | £50 |
| Launch | 7 March 2001 |
| Launch price | 100p |
| Initial charge | 5.25% |
| Annual Management Charge | 1.5% |
| Unit type | Accumulation |
| Accumulation date | 31 May |
Data as at 31 October 2008.
Performance
| Since Launch* | 5 years | 3 years | 1 year | 6 months | |
|---|---|---|---|---|---|
| European Growth Fund (TR) † | 34.7 | 18.4 | -21.9 | -49.4 | -43.1 |
| FTSE Europe ex UK (TR) † | 3.1 | 40.8 | 1.1 | -33.1 | -31.3 |
| Sector Average † | -5.2 | 29.9 | -5.7 | -35.9 | -33.1 |
| Position in Sector | 4 | 66 | 92 | 103 | 106 |
| Funds in Sector | 70 | 85 | 93 | 105 | 110 |
| Quartile | 1 | 4 | 4 | 4 | 4 |
Please remember that past performance is not a guide to
the future.
*Data from 7 March 2001. 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 Europe (ex UK).
Percentage Growth
Artemis European Growth Fund 12 Months to 30 September
| 2008 | 2007 | 2006 | 2005 | 2004 |
|---|---|---|---|---|
| -33.6 | 24.3 | 13.1 | 40.6 | 21.9 |
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 7 March 2001. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 31 October 2008. All figures show total returns.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| Adidas-Salomon | 4.9% |
|---|---|
| Gaz de France | 4.3% |
| Novartis | 4.3% |
| RWE | 3.9% |
| E.ON | 3.6% |
| Nestle | 3.4% |
| Zurich | 3.1% |
| Syngenta | 2.7% |
| Grifols | 2.6% |
| CNP Assurance | 2.5% |
* Without cash.
Source: Internal.
Market Sector Split*
| Pharmaceuticals & Biotechnology | 12.7% |
|---|---|
| Gas, Water & Multi-Utilities | 12.4% |
| Banks | 11.7% |
| Non-Life Insurance | 8.2% |
| Chemicals | 6.3% |
| Industrial Engineering | 5.7% |
| Electricity | 5.1% |
| Personal Goods | 4.9% |
| Food Producers | 4.1% |
| Other | 28.9% |
* 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.
