Fund Manager's Comment
Data as at 31st July 2008
A negative month for the market. But the fact that mining shares actually underperformed the market was notable, given our lack of exposure. More important is the fact that much of the portfolio is doing its job on the dividend front. For companies such as Centrica, BP, Shell, UBM, BAT, Aviva, KPN and Pearson, it is not a case of just maintaining the payout. They have all announced material increases. This reflects the strength of their financial position and business.
Still nothing to report in terms of the “character” of the portfolio. Over the month we purchased BAE Systems for the usual reasons: strong balance sheet, good visibility and low valuation. Sales included BNP, Sage and Drax.
Visit the Artemis Film Club to listen to Adrian Frost talking about the Income Fund.
Awards
- Adrian Frost
- Adrian Gosden
Income PDFKey Facts
| IMA Sector | UK Equity Income |
|---|---|
| Sedol Number | 0657246 |
| Fund Size (Offer basis) | £2,254.4m |
| Historic Yield | 5.2% |
| Unit Offer Price (dist) | 163.25p |
| Unit Bid Price (dist) | 153.63p |
| Unit Offer Price (acc) | 200.35p |
| Unit Bid Price (acc) | 188.54p |
| Valuation | 12 noon daily (UK business days) |
| Min. lump sum investment | £1,000 |
|---|---|
| Min. monthly investment | £50 |
| Launch | 6th June 2000 |
| Launch price | 100p |
| Initial charge | 5.25% |
| Annual Management Charge | 1.5% p.a. |
| Unit type | Distribution, Accumulation |
| Distribution dates | 30th June, 31st December |
Data as at 31st July 2008.
Performance
| Since Launch* | 5 years | 3 years | 1 year | 6 months | |
|---|---|---|---|---|---|
| Income Fund (TR) † | 113.6 | 65.9 | 13.2 | -13.5 | -4.6 |
| FTSE 100 (TR) † | 7.4 | 54.9 | 13.8 | -11.6 | -5.7 |
| FTSE All-Share (TR) † | 14.0 | 58.6 | 14.9 | -13.3 | -6.2 |
| Sector Average † | 26.6 | 45.2 | 5.1 | -18.0 | -7.9 |
| Position in Sector | 3 | 8 | 16 | 22 | 12 |
| Funds in Sector | 61 | 71 | 82 | 91 | 92 |
| Quartile | 1 | 1 | 1 | 1 | 1 |
Please remember that past performance is not a guide to
the future.
* Data from 6th June 2000. Source: Lipper Limited, bid to bid in sterling
with net income reinvested to 31st July 2008. All figures show
total returns. † Percentage Growth. Sector is IMA UK Equity Income.
Percentage Growth
Artemis Income Fund 12 Months to 30th June
| 2008 | 2007 | 2006 | 2005 | 2004 |
|---|---|---|---|---|
| -16.5 | 20.1 | 17.2 | 22.4 | 19.7 |
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 31st July 2008
Data from 6th June 2000. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 31st July 2008. All figures show total returns.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| Royal Dutch Shell 'B' | 5.8% |
|---|---|
| BP | 4.9% |
| Vodafone | 4.7% |
| GlaxoSmithKline | 4.6% |
| Centrica | 3.8% |
| AstraZeneca | 3.4% |
| HSBC | 3.0% |
| RSA Insurance | 2.7% |
| Scottish & Southern Energy | 2.5% |
| British American Tobacco | 2.4% |
* Without cash.
Source: Internal.
Market Sector Split*
| Oil & Gas Producers | 16.8% |
|---|---|
| Electricity | 9.3% |
| Pharmaceuticals & Biotechnology | 8.2% |
| Banks | 7.7% |
| Travel & Leisure | 6.6% |
| Gas, Water & Multi-Utilities | 5.8% |
| Fixed Line Telecommunications | 5.7% |
| Media | 5.3% |
| Mobile Telecommunications | 4.7% |
| Other | 29.9% |
* Without cash.
Source: Internal.
% Variance†
| Centrica | 3.1% |
|---|---|
| Royal Dutch Shell 'B' | 2.5% |
| RSA Insurance | 2.4% |
| Total | 2.3% |
| Vivendi | 2.2% |
| KPN | 2.1% |
| Enel | 1.8% |
| Arriva | 1.7% |
| Scottish & Southern Energy | 1.7% |
| ENI | 1.7% |
† Positive variance between stock % held in the Fund versus FTSE All-Share.
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.
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. The Fund’s annual Management Charge is charged to capital. This has the effect of increasing the distribution(s) for the year by 1.5% and constraining the fund’s capital performance to an equivalent extent.
