Fund Manager's Comment
Data as at 28 November 2008
Another volatile month with sentiment remaining firmly against micro cap stocks. Whilst there is undoubtedly value in many stocks the funding environment does raise the risk for those companies struggling under too much debt or with near term cash requirements. Despite robust trading these financial fears have driven the share prices of companies such as Glisten and Assetco. Both have levels of debt that we feel are manageable but investors concerns are such that both now trade on p/e ratios of 4x. We retain a healthy cash balance leaving us well positioned to take advantage of any deal flow as and when it returns.
Investment Objective
The objective is to achieve long-term capital and income growth and to generate tax-free capital and income distributions.
Investment Policy
The investment policy is that at least 70 per cent of the Company’s funds are invested in qualifying holdings (within three years of being raised) in a spread of AIM, PLUS and unquoted companies with the majority of the holdings comprising AIM-traded stocks. Subject to maintaining a prudent margin of safety over this 70 per cent level, the balance of the Company’s funds may be invested in liquid assets (such as cash or short-term money market deposits), fixed interest securities, smaller companies listed on the Official List of the UK Listing Authority and traded on London Stock Exchange plc's market for listed securities whose market capitalisations meet the criteria of the Hoare Govett Smaller Companies Index (excluding investment companies), as well as AIM and PLUS-traded and unquoted companies.
| Directors | Registered Office | Registrars |
|---|---|---|
| R A Field (Chairman) Sir Bill Gammell C M Paterson R A M Ramsay |
42 Melville Street Edinburgh EH3 7HA Company No: SC214871 |
Equiniti Aspect House Spencer Road Lancing West Sussex BN99 6ZR |
Key Facts
| Fund Size (Net assets) |
£20.2m |
|---|---|
| Fund Size (Market cap) |
£17.8m |
| NAV | 49.41p |
| Share Price | 43.50p |
| (Discount)/Premium | (11.96)% |
| Shares in issue | 41,026,198 |
| Management Fee | 2% + VAT (of net assets) |
| Sedol Number | 3016703 |
|---|---|
| ISIN | GB00030167034 |
| Ticker | AAV/LON |
| Launch | February 2001 |
Data as at 28 November 2008
Performance†
| Since Launch*** | 3 Years | 1 Year | 6 Months | 1 Month | |
|---|---|---|---|---|---|
| Artemis AiM VCT NAV* | -38.7 | -37.7 | -36.2 | -25.5 | -4.2 |
| Artemis AiM VCT Share Price** | -44.4 | -38.5 | -40.2 | -35.1 | -7.5 |
| FTSE AiM Index* | -69.2 | -58.8 | -61.1 | -60.4 | -9.3 |
| FTSE All Share Index* | -6.0 | -13.6 | -32.2 | -29.3 | -1.7 |
All data as at 28 November 2008. All figures show total returns.
†Percentage growth. * Source: Internal.
** Source: Lipper Limited. The Company measures itself against FTSE AiM. The FTSE AiM is a recognised index of companies, however, as the Company is managed as a venture capital trust, not all index constituents will be suitable investments for its portfolio. In addition, the Company has the ability to invest in certain companies not included in the index. As a result there may be some divergence between the Company's performance and that of the index.
*** Data from February 2001.
Past performance is not a guide to future performance
Percentage Growth 12 Months to 30 September
| 2004 | 2005 | 2006 | 2007 | 2008 |
|---|---|---|---|---|
| 21.4 | 4.7 | -6.8 | 17.9 | -32.4 |
Source: Lipper Limited. All figures show total returns and are based on the performance of the share price.
Share Price and NAV Performance (in pence)
Data from February 2001. Source: Internal as at 28 November 2008.
Top Ten Holdings*
| Company | Business Activity | % Fund |
|---|---|---|
| Advanced Medical Solutions | Advanced Wound Care Solutions | 9.1 |
| Synergy Healthcare | Decontamination & Sterilisation Services | 7.3 |
| Eurovestech | Development Capital Fund | 6.2 |
| Diamond Wood China | Wood Construction Materials | 5.3 |
| Glisten | Confectionery & Snack Foods | 4.9 |
| Mclaren Software | Engineering Software | 4.8 |
| Ilika Technologies | Materials Research | 4.7 |
| Sphere Medical Holdings | Clinical Monitoring Equipment | 4.2 |
| Amino Technologies | IPTV Systems & Software | 3.6 |
| FFastFill | Application Services for Electronic Markets | 3.4 |
*Source: Internal. Without Cash.
Market Sector Split
% Fund |
|
|---|---|
| Health Care Equipment & Services | 24.3 |
| Software & Computer Services | 10.6 |
| General Industrials | 10.2 |
| Pharmaceuticals & Biotechnology | 9.9 |
| Electronic & Electrical Equipment | 8.0 |
| General Financial | 6.9 |
| Media | 5.2 |
| Support Services | 5.0 |
| Food Producers | 4.9 |
| Other | 15.1 |
Other Information
Company Announcements External Site (opens in a new window) View AGM Proxy Voting (13 June 2008) View Interim Management Statement (30 April 2007) 2008 Annual Report & Accounts (31 January 2008) 2007 Annual Report & Accounts (31 January 2007) 2006 Annual Report & Accounts (31 January 2006) Interim Report & Accounts (31 July 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 a VCT, and any income from them, can fall as well as rise and you may not get back the amount originally invested. Investment in a VCT carries a higher risk than many other forms of investment and potential investors are strongly advised to seek professional advice. In particular, a VCT's shares although listed may be difficult to realise and a VCT's underlying investments in the securities of smaller or unquoted companies and in companies in specialist sectors can involve greater risk than investment in larger, more established firms. Existing tax levels and reliefs may change and the value of reliefs depends on individual circumstances. If a VCT loses its HM Revenue & Customs approval tax reliefs previously obtained may be lost.
