Artemis Income R

  • 198.30p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 418.19p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.25% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.54%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 4.40%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 23 November 2020, fund data last updated 04 January 2016

The fund’s objective is to achieve a growing income level as well as capital growth – target yield is at least 10% above the UK stockmarket. The bulk of the portfolio is made up of large and mid-sized UK companies, but managers Adrian Frost and Adrian Gosden also take advantage of the freedom to invest up to 20% overseas. Stock selection is mainly bottom-up with a focus on companies’ free cash flow, but the managers also take account of the economic environment in their analysis.

Fund summary

Sector UK Equity Income
Structure UNIT TRUST
Launched
Size £4,131m
Yield 4.40%
Charging basis Capital
Dividends paid 30 Jun, 31 Dec

Charges

Standard initial charge 5.25%
Initial charge via Bestinvest 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.54%

Allocation

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Investment process

The fund invests predominantly in FTSE 100 and to a lesser extent FTSE 250 UK equities. The managers will also invest up to 20% in non-UK equities. Exposure to small caps is minimal. The investment process is split 70/30 between stock specific drivers and macro-economic factors. The predominant valuation measure used is a company’s free cash flow yield – its profits per share after tax, interest and capital expenditure. This measure is generally reflected in its dividends and dividend growth. Attractive companies are subjected to fundamental analysis, which may include company meetings and use of the Artemis in-house quantitative tool SmartGARP. This analysis is used to assess the direction, volatility and sustainability of the cashflow, and whether company management will allocate capital wisely. Portfolio companies are weighted according to valuation, security of cashflow/yield and growth in cashflow/yield.

This is a core fund for equity income investors managed by two experienced investors, who are also able to draw upon the experience of the wider Artemis investment team. The fund's success has led to a higher level of assets under management, meaning there is now a greater focus on larger companies at the expense of small and mid-cap stocks. As a result returns have moderated in recent years, but this also makes the fund a more cautious option in the peer group. As with many income funds this typically provides a degree of protection from falling markets, but it can lag fast rising markets.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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.

Allocation

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Sector breakdown

Financials 14.00%
Media 11.00%
Life Insurance 9.00%
Pharmaceuticals 8.00%
Mineral Extraction 7.00%
Property Shares 6.00%
Banks 5.00%
General Industrials 4.00%
Food & Drug Retailers 4.00%
Tobacco 4.00%

Portfolio

60-100 holdings. Corporate bonds (up to 10%) may be held where they prove a more attractive alternative to the underlying equity.

Key Investor Information - Income

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Key Investor Information - Accumulation

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