Artemis Unit Trust Managers is to launch an Isa on 1 May for its fund range, writes Jane Wallace. Cu...
Artemis Unit Trust Managers is to launch an Isa on 1 May for its fund range, writes Jane Wallace.
Currently there are only two retail onshore unit trusts which would be appropriate: Artemis UK Growth and Artemis UK Smaller Companies. They are run by Mark Tyndall and John Dodd respectively. The pair were previously responsible for running Ivory & Sime's investment trusts, UK Smaller Companies and Isis.
Accompanying the launch will be a 1% discount off the initial charge of 5%. The annual management fee will be 1%. Commission for IFAs is 3% initial and 0.5% trail. The two funds share the same investment approach, which focuses on stock-picking and running concentrated portfolios of about 50 stocks to maximise the benefits from the best-performing holdings.
The investment philosophy is that the key to outperformance is re-rating rather than earnings, namely what drives institutional buying of stocks. Artemis believes that smaller companies have a higher earnings rate, so earnings do play a bigger part in the movement of their share price than in larger stocks.
Since launch both funds have performed strongly Artemis UK Growth is ranked 10 out of 260 funds over the year to 8 March with a return of 68.1%, offer to bid net income reinvested, according to figures from S&P Micropal. Artemis UK Smaller Companies was ranked second out of 74 funds over the same period with a return of 255.8%.
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