Fund Manager's Comment
Data as at 31 October 2008
The tone for October was set by industry bellwether SAP in the early days of the month. They reported customers holding back on IT spend in the second half of September. This was followed shortly after by supply chain software provider Kewill which reported a similar experience: customers’ decision cycles lengthening. With both companies reporting robust pipelines, the jury is out on whether this is simply a short-term timing issue, or whether a sustained fall-off in demand is underway.
As a general rule the companies themselves tend towards the former. Investors fear the latter, with the truth likely to lie somewhere in between. What we do know is that the presence of high levels of debt makes the cost of failure high. So scrutiny of balance sheets and cashflow remains a priority for us.
That’s not to say it’s been all doom and gloom. There have been positive updates from the likes of Endace, who develop and sell network monitoring equipment, and SDL, provider of translation software. We also note with interest sizeable director buying in both Fidessa and Amino Technologies.
Visit the Artemis Film Club to listen to Lindsay Whitelaw talking about the New Enterprises Fund.
Awards
New Enterprises PDFKey Facts
| IMA Sector | Technology & Telecoms |
|---|---|
| Sedol Number | 0657406 |
| Fund Size (Offer basis) | £25.7m |
| Historic Yield | 0.00% |
| Unit Offer Price | 77.49p |
| Unit Bid Price | 71.56p |
| Valuation | 12 noon daily (UK business days) |
| Min. lump sum investment | £1,000 |
|---|---|
| Min. monthly investment | £50 |
| Launch | 6 June 2000 |
| Launch price | 100p |
| Initial charge | 5.25% |
| Annual Management Charge | 1.5% |
| Unit type | Accumulation |
| Accumulation date | 30 April |
Data as at 31 October 2008.
Performance
| Since Launch* | 5 years | 3 years | 1 year | 6 months | |
|---|---|---|---|---|---|
| New Enterprises Fund† | -24.7 | -0.1 | -10.5 | -33.1 | -15.8 |
| FTSE-techMark 100 (CR) † | -67.4 | 16.0 | -6.1 | -32.9 | -25.4 |
| FTSE All Share (CR) † | -29.8 | 2.7 | -18.0 | -36.8 | -29.6 |
| Sector Average † | -71.6 | -10.3 | -13.0 | -28.6 | -19.5 |
| Position in Sector | 1 | 2 | 7 | 10 | 2 |
| Funds in Sector | 9 | 12 | 12 | 12 | 12 |
| Quartile | 1 | 1 | 3 | 4 | 1 |
Please remember that past performance is not a guide to
the future.
* Data from 6 June 2000. Source: Lipper Limited, bid to bid in sterling
to 31 October 2008. All figures show capital return. †Percentage
Growth. Sector is IMA Technology & Telecoms.
Percentage Growth
Artemis New Enterprises Fund 12 Months to 30 September
| 2008 | 2007 | 2006 | 2005 | 2004 |
|---|---|---|---|---|
| -22.1 | 29.5 | -3.3 | 13.8 | 13.3 |
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 6 June 2000. Source: Lipper Limited, bid to bid in sterling with net income reinvested to 31 October 2008. All figures show capital returns.
Asset Allocation*
*Without cash. Source: Internal
Top Ten Holdings*
| System C Healthcare | 6.1% |
|---|---|
| Micro Focus International | 5.0% |
| Craneware | 4.9% |
| NCC Group | 4.1% |
| Accenture | 4.0% |
| Cobham | 4.0% |
| SAP | 3.7% |
| Sage Group | 3.7% |
| Vodafone | 3.5% |
| Hewlett-Packard | 3.3% |
* Without cash.
Source: Internal.
Market Sector Split*
| Software & Computer Services | 52.0% |
|---|---|
| Technology Hardware & Equipment | 15.5% |
| Aerospace & Defence | 6.9% |
| Electronic & Electrical Equipment | 6.4% |
| Support Services | 4.0% |
| Mobile Telecommunications | 3.5% |
| General Industrials | 3.2% |
| Fixed Line Telecommunications | 3.0% |
| Media | 1.8% |
| Other | 3.7% |
* 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 a result of market and currency fluctuations and you may not get back the amount originally invested. The Fund invests in technology related stocks which can be more volatile than investment in more established companies, meaning above average price movements both positive and negative can be expected.
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.
