Fund Manager's Comment
Data as at 28 November 2008
With newsflow deteriorating across a range of sectors and sentiment remaining firmly against micro-cap stocks, November was another volatile month. Despite this we did see encouraging updates from FFastFill and Craneware, along with maiden results from Advanced Computer Software who are well funded and continue to seek acquisitions in the healthcare sector. November also saw the completion of the take-over of Eclipse Energy by Swedish utility Vattenfall. This leaves us with a healthy cash balance and well positioned to take advantage of deal flow when it returns.
Investment Objective
The Company's investment objective is to achieve long-term capital and income growth and to generate tax-free distributions through an investment policy of focusing on AiM and, to a lesser extent, companies traded on PLUS and unquoted companies.
Investment Policy
The Company's investment policy is to invest in a diversified portfolio of companies with a particular emphasis on companies whose shares will be traded on AiM. It is anticipated that ultimately approximately 75 per cent of the Company's qualifying holdings will be shares traded on AiM although this is subject to the availability of suitable investment opportunities and market conditions.
| Directors | Registered Office | Registrars |
|---|---|---|
| P K Arthur (Chairman) R A Field E D Murray F E Wollocombe |
42 Melville Street Edinburgh EH3 7HA Company No: SC270952 |
Equiniti Aspect House Spencer Road Lancing West Sussex BN99 6ZR |
Key Facts
| Fund size (Net assets) |
£22.0m |
|---|---|
| Fund size (Market cap) |
£20.8m |
| NAV | 61.32p |
| Share Price | 58.00p |
| (Discount)/Premium | (5.4)% |
| Shares in issue | 35,928,504 |
| Management Fee | 1.75% + VAT (on market cap) |
| Sedol Number | B02WQ94 |
|---|---|
| ISIN | GB00B02WQ947 |
| Ticker | AAM/LON |
| Launch | December 2004 |
Data as at 28 November 2008
Performance†
| Since Launch*** | 3 Years | 1 Year | 6 Months | 1 Month | |
|---|---|---|---|---|---|
| Artemis AiM VCT 2 NAV* | -32.3 | -35.2 | -29.3 | -30.3 | -6.8 |
| Artemis AiM VCT 2 Share Price** | -42.1 | -35.3 | -32.5 | -26.1 | -2.5 |
| FTSE AiM Index* | -62.7 | -58.8 | -61.1 | -60.4 | -9.3 |
| FTSE All-Share Index* | -2.0 | -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 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 24 March 2005, the close of the offer period. Past performance is not a guide to future performance
Percentage Growth 12 Months to 30 September
| 2004 | 2005 | 2006 | 2007 | 2008 |
|---|---|---|---|---|
| n/a | n/a | -13.2 | 9.8 | -21.0 |
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 24 March 2005, the close of the offer period. Source: Internal as at 28 November 2008.
Top Ten Holdings*
| Company | Business Activity | % Fund |
|---|---|---|
| Earthport | International Electronic Payment Services | 7.7 |
| Accsys Technologies | Wood Acetylation Processes | 7.5 |
| Craneware | Healthcare Revenue Management Software | 6.7 |
| Healthcare Locums | Healthcare Recruitment Services | 5.5 |
| Abcam | Producer of Research Grade Antibodies | 4.9 |
| Ilika | New Materials Research | 4.4 |
| Brulines | Licensed Trade Monitoring Equipment | 4.2 |
| iQUR | Hepatitis C Detection & Treatment | 3.4 |
| Concateno | Drug Testing & Screening Services | 3.2 |
| TMO Renewables | Biomass Fuels | 2.8 |
Source: Internal. Without Cash.
Market Sector Split*
% Fund |
|
|---|---|
| Pharmaceuticals & Biotechnology | 24.6 |
| Software & Computer Services | 24.1 |
| General Industrials | 13.1 |
| Support Services | 12.4 |
| Electronic & Electrical Equipment | 6.0 |
| Investment Companies | 3.7 |
| Aerospace & Defence | 3.5 |
| Leisure & Hotels | 2.9 |
| Oil & Gas Producers | 2.8 |
| Other | 6.9 |
* Source: Internal. Without Cash.
Other Information
Company Announcements External Site (opens in a new window) View AGM Proxy Voting (28 February 2008) View Interim Management Statement (31 January 2008) 2007 Annual Report & Accounts (30 September 2007) 2006 Annual Report & Accounts (30 September 2006) Interim Report & Accounts (31 March 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 H M Revenue & Customs approval tax reliefs previously obtained may be lost.
