Artemis has added a further equity fund to its retail range with a UK Special Situations unit trust,...
Artemis has added a further equity fund to its retail range with a UK Special Situations unit trust, writes Robert Stock.
The fund, which runs with a concentrated portfolio of around 30 stocks, will be listed in the UK All Companies sector and can invest in special situations in the FTSE 100, FTSE 250, small-cap situations, Ofex, Easdaq, and unit trust-authorised Aim stocks.
This is a rebranding of a private unit trust launched on
9 March 2000, the Artemis Holyrood Special Situations Fund. Until last week it had monthly pricing and a minimum investment level of £50,000.
For the retail launch the minimum investment has been dropped to £1,000 or £100 per month. The initial charge on the fund, which is managed by Derek Stuart, is 5.25% and it carries a 1.5% annual management charge. IFA commission is 3% and it is available with a 1% discount through a Pep or Isa.
According to Lipper, since launch the fund has achieved offer to bid returns with net income reinvested of 62.81% to 6 February, 2001. Over the same period the UK All Companies sector has achieved a return of 7.15% and the UK smaller companies sector produced a return of -20.53%.
Stuart, who also manages the Artemis Income Fund, was one of Artemis's four founding partners from Ivory & Sime. He said: "This fund establishes the Artemis product range in the UK and this is the final area of the market that we had not actually covered. It complements the growth, small cap, new enterprises and income products.
"It will be run in exactly the same manner using the same Artemis philosophy of sector momentum and stock re-rating as the other funds but it will be focused on more esoteric investments and higher risk profile investments than we may have had in the mainstream funds."
The fund invests in stocks that are not seen as mainstream investments. Stuart will concentrates on companies where new management teams are coming in or businesses are being
transformed. He will target
businesses with unrecognised assets or price potential, and companies with a UK quote but a large part of their business overseas.
There are some cross-holdings with the other Artemis UK portfolios and the fund incorporates ideas from the other members of the Artemis UK team.
Artemis also pays 0.5% commission to small, specialist regional brokers which often means, Stuart said, that it is able to invest in special situations type investments before the London brokers and fund managers hear of them.
The fund, which is benchmarked against the FTSE All Share, has a great deal of flexibility in the areas of the market it invests, but currently is 80% invested in small cap companies with 20% in large or mid-caps.
Stuart said: "The FTSE has been flat for three years, but within that there are areas of the market that you can make money in."
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