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Artemis Monthly Distribution

Elite Rated by FundCalibre

This fund invests in both bonds and equities from around the world in pursuit of an attractive monthly income, as well as capital growth. The ratio between these two asset classes will be varied to suit market conditions. Strong stock picking skills have enabled the managers to create a portfolio of reliable and diversified income sources.

Company Description

UK-based fund manager Artemis was founded in 1997. A recipient of the Elite Provider for Equities Rating in both 2016 and 2017, the business has retained its manager-centric, innovative and supportive culture despite changing ownership several times, which has helped it to attract and retain talented investors.

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Fund Manager

Jacob de Tusch-Lec manages the equities portion of this fund and James Foster the fixed income. Jacob has been in the industry since 1998 and has been a fund manager since 2005. He is also manager of the Elite Rated Artemis Global Income fund. James has more than 20 years’ experience in fixed income and joined Artemis in 2005 from F&C Asset Management, where he was head of credit. They have run the fund together since its launch in 2012.

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In managing the fund, we tread a tightrope, moving forward by seeking the right balance between risk and reward.

James Foster - Fund Manager

The Investment Process

Picking the right stocks and holding the right proportions of each asset class are key. The fund’s natural split is 60% bonds and 40% equity, although it can shift quite significantly, depending on how the managers feel about global economies, stock markets and companies. When choosing investments, James and Jacob focus on fundamental analysis of company accounts and how effectively a business uses its cash. Within the bond portion of the portfolio, James may vary his weighting between government, investment grade and high yield bonds, as factors such as interest rates and inflation alter the outlook. The fund typically has around 150 to 200 holdings.

Risk

This fund is designed to have lower volatility than equities, but higher returns than bonds. The two asset classes help to naturally diversify the fund’s income stream, with bonds offering some capital protection from equity market falls – although this can drag on performance when the market rises. Limits as to how much can be invested in a single stock, sector or country reduce the risk of one area’s underperformance impacting the entire portfolio.

Our Opinion

While many multi-asset funds combine bonds and equities, we particularly like James and Jacob’s highly active approach to managing allocation, which means the fund can respond effectively to changing market environments. With two of our favourite stock pickers in charge, the fund’s diverse portfolio and monthly payment mandate may make it an excellent ‘all weather’ option for income-focused investors.

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©2014 FundCalibre Limited. All Rights Reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not ,guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating.