Artemis UK Smaller Companies R

A pragmatic approach to small cap investing.

  • 1756.55p Price (Inc)
  • - Price (Acc)
  • 5.00% 0.00% Initial charge
  • 1.50% Annual management charge
  • 1.59% Ongoing charges
  • 1.30% Yield

Prices as at 06 December 2019, fund data last updated 13 May 2014

The Fund aims for long-term capital growth. The Fund manager, Mark Niznik, has an emphasis on smaller companies listed, quoted and/or traded in the UK and in smaller companies which have a significant part of their activities in the UK which are quoted on a regulated market outside the UK. The fund focuses on companies with a sustainable business franchise trading at an attractive valuation point in their business cycle. The Fund will invest in all company types and industry sectors, having no biases or exclusions. The manager is benchmark agnostic and the performance can, therefore, deviate quite substantially.

Fund summary

Sector UK Smaller Companies
Structure UNIT TRUST
Launched April, 1998
Size £433m
Yield 1.30%
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 1.59%

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Investment process

Investment ideas come from a network of brokers and consultants as well as extensive company meetings in the industry and the other managers at Artemis. The fund manager, Mark Niznik, will not be restricted to a house style or process at Artemis. His focus is on companies’ competitive advantage, visibility of earnings, growth in market share, cash dynamics of the business, diversity of customers and suppliers and critically the quality and depth of management. The manager aims to identify companies where there is a catalyst for share price appreciation, such as a favourable supply/demand balance, new technology breakthroughs or innovation. A company’s valuation is the last factor to be considered and is critical to the decision-making process. The fund manager’s valuation metrics include the P/E ratio, yield, free cash flow and asset backing (physical or intellectual property). The Fund’s capital is allocated on the basis of perceived share price upside and conviction and is not a function of their weighting in the index. Niznik’s buy/sell discipline reflects the share price potential of new investments compared with existing holdings. He is able to leverage off eight other UK equity specialists, many of whom have a bias towards small / mid cap companies.

Mark Niznik took full responsibility of the fund in 2011, following a four year tenure as a co-manager along John Dodd. Formerly this fund had a large proportion of its assets in natural resources stocks, particularly oil companies, which has been reduced under the new manager resulting in a more balanced fund. A large proportion of the fund is invested in industrials, media and technology and has a strong growth style bias. The Fund tends to outperform during downmarkets and performance has recently been steadier given the cyclical market rally.

Manager research

Average monthly relative returns

  • 14/15 0.14%
  • 15/16 0.39%
  • 16/17 0.73%
  • 17/18 0.66%
  • 18/19 0.13%

Bestinvest MRI

  • 3 years 0.51%
  • 5 years 0.41%
  • Career 0.24%
  • 3 years 97.50%
  • 5 years 98.50%
  • Career 96.10%

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

Mark Niznik

Born in 1967, Niznik is an associate member of the Institute of Investment Management and Research and the Securities Institute and a Portfolio Manager & Sector Analyst for UK Smaller Companies. He began his investment career with Legal & General in 1985, before joining Greig Middleton & Co Limited where he was a private client fund manager. In 1992 he moved to Perpetual where he was a member of the UK Smaller Companies team and became a lead fund manager in 2001. In 2002 he joined Standard Life Investments as a small/mid cap fund manager, running their UK Opportunity Fund from its launch in November 2002; and in-house small cap pension funds. Niznik joined Artemis in October 2007 and is part of the small cap team.

Track record

Mark Niznik has 9.3 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.24%. During the worst period of relative performance (from September 2011 - February 2015) there was a decline of 17% relative to the index. The worst absolute loss has been 26%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 96%.

Periods of worst performance

Absolute -26.00% (June 2001 - September 2001)
Relative -17.00% (September 2011 - February 2015)

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

3.8466% Tarsus Group Plc
3.4207% Computacenter
2.9326% Ifg Group
2.8336% Mears Group
2.7444% Rm Plc
2.7201% Restore Plc
2.7044%4 imprint Group Plc
2.6893% Volution Group Plc
2.6103% Goco Group Plc
2.4324% Brooks Macdonald Group
Source: Trustnet

Sector breakdown

Media 16.00%
Financials 13.00%
Software 12.00%
Support Services 11.00%
Building & Construction 8.00%
Travel 5.00%
Healthcare & Medical Products 4.00%
Industrials 4.00%
Electronic & Electrical Equipment 3.00%
Money Market 3.00%

Portfolio

60 – 80 holdings. Minimum holdings are 0.5% with no stock representing more than 5% of the fund. Top 10 usually 20 – 30%.

Constraints

There are no formal sector or stock limits.

Key Investor Information

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