Artemis Capital R

A UK equity fund with a large cap bias run using a quant based screening system.

  • 1611.13p Price (Inc)
  • - Price (Acc)
  • 5.00% 0.00% Initial charge
  • 1.50% Annual management charge
  • 1.64% Ongoing charges
  • 3.10% Yield

Prices as at 06 December 2019, fund data last updated 23 December 2015

The Fund aims to achieve long term capital growth mainly by investing in large cap UK stocks, though the portfolio also includes mid cap and overseas companies. The process is primarily based on a quantitative stock ranking system (SmartGARP) developed by named manager Philip Wolstencroft. SmartGARP seeks to exploit the behavioural biases of investors by acting more objectively and systematically.

Fund summary

Sector UK All Companies
Structure UNIT TRUST
Launched December, 1986
Size £275m
Yield 3.10%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.64%

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Investment process

The fund mainly invests in large and mid cap UK stocks, but has the flexibility to invest up to 20% in overseas companies. The investment process is based around a quantitative filter known as SmartGARP, also used on the Artemis European Growth and Global Growth funds. SmartGARP analyses around 400 stocks using over 100 data items split into seven factors the managers have identified as driving stock prices. At its core the fund looks for companies that are mispriced based on valuation and projected growth; the other factors include momentum, accruals, earnings revisions and quality of earnings. The process also includes macro-economic data to avoid stocks that are cheap for a reason. The final two factors, momentum and investor sentiment, aid in market timing - average holding period is around six months. Stocks are graded on a scale of 0 to 100 with stocks scoring above 90 being considered for inclusion in the Fund. Though the process is primarily quantitative, the manager authenticates the SmartGARP data using such factors as a company’s news flow and any non-operational issues or other company specific information that may be skewing a company’s SmartGARP characteristics (e.g. accounting changes, acquisitions and disposals). The manager will also take account of diversification in forming the portfolio.

Like other quant-based funds this one suffered in the years following the financial crisis, as the stock market patterns on which it relies came unwound. SmartGARP tends to operate best where there are market themes or trends to exploit; underperformance usually occurs at market turning points. In 2010 its management was passed to Philip Wolstencroft, originator of the SmartGARP process. The fund recovered strongly in 2012/2013.

Manager research

Average monthly relative returns

  • 14/15 -0.19%
  • 15/16 0.26%
  • 16/17 0.27%
  • 17/18 -0.79%
  • 18/19 -0.24%

Bestinvest MRI

  • 3 years -0.25%
  • 5 years -0.14%
  • Career 0.12%
  • 3 years 24.20%
  • 5 years 35.90%
  • Career 96.10%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Philip Wolstencroft

A 1985 Economics graduate, Wolstencroft's career began as an analyst with the British Rail Pension Fund. He moved to WorldInvest in 1986 where his fund manager career started. From 1989-91, he was Global Strategist for County NatWest and in 1991 he moved to Smith NewCourt (Merrill Lynch from 1995), initially as Head of UK Equity Strategy, and later he became head of Pan European Equity Strategy, where he was rated as one of the top analysts in his field. He joined Artemis in early 2001 and created SmartGARP, the Artemis quantitative investment process. He was later joined by Peter Saacke, who he worked with for some of his time at Merrill Lynch.

Track record

Philip Wolstencroft has 18.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.12%. During the worst period of relative performance (from April 2006 - August 2012) there was a decline of 33% relative to the index. The worst absolute loss has been 53%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 96%.

Periods of worst performance

Absolute -53.00% (October 2007 - February 2009)
Relative -33.00% (April 2006 - August 2012)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 31 July 2019

5.3638% Anglo American
5.1679% Bp
4.6033% Lukoil Pjsc
4.3849% Ashtead Group
4.1781% Legal & General Group
4.1195% Rio Tinto
4.0488% Royal Dutch Shell
3.5812% Gazprom Pjsc
3.3802% Imperial Brands Plc
2.9929% Lloyds Banking Group Plc
Source: Trustnet

Sector breakdown

Oil & Gas Exploration & Production 21.00%
Mineral Extraction 14.00%
Banks 11.00%
Life Insurance 8.00%
Financials 7.00%
Travel 6.00%
Tobacco 5.00%
Support Services 5.00%
Household Goods 5.00%
Pharmaceuticals 5.00%

Portfolio

70-100 stocks, weighted according to their SmartGARP score

Constraints

Minimum 60% in FTSE 100 companies, maximum 10% in smaller companies. Sector exposures within +/- 10% of benchmark. Style tilts (e.g. towards Growth, Value, Revisions, Top down etc.) should not be negative for any significant length of time. Max 5% in one stock.

Key Investor Information

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