Artemis is in the process of drawing up plans for a higher yield income fund, to be managed by Adria...
Artemis is in the process of drawing up plans for a higher yield income fund, to be managed by Adrian Frost.
Frost, who joined the investment boutique from Deutsche where he managed £5bn worth of assets, is considering a June launch date for the fund, which will be Artemis' second income offering. The product would consist of a mixed portfolio of equities and corporate bonds.
Artemis is offering a 2% discount on all Pep and Isa transfers to the Artemis Income fund, managed by Frost, up until 1 March 2002. Following Frost's takeover of the Income fund from Derek Stuart, he has incorporated a facility, allowing him to increase the portfolio's diversity in the event that current weak economic conditions persist. At present, the portfolio consists of 55 stocks but Frost has written to unitholders warning that should such circumstances arise, he may seek to increase the number of holdings in the fund to 65.
He said: 'When you run a portfolio of 55 stocks in an income fund, if a company fails to pay a dividend then you can be very badly affected. Increasing the portfolio's size can help negate the impact this may have on the fund's income stream.'
Another significant change is Frost's intention to utilise some of Artemis' European research to help identify possible European alternatives to UK companies, should the case for holding them prove convincing.
Despite improved risk appetite
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Ceremony will take place 13 November