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Artemis Income Inclusive - Class R - Income (GBP)

Sell: 208.75pBuy: 221.12p0.92p (0.44%)

Prices as at 18 September 2014

* Please note that there can be occasions when the Selling price shown may be temporarily higher than the Buying price. This can sometimes happen when the stock market is closed but it can also happen at other times for a variety of reasons. However, when the stock market is open and you place a trade, the selling price available to you will never be higher than the buying price. Live prices will be available when you place a deal with us during market hours. Please check these and contact us if you are unable to deal online.

Our view on this Fund

This fund features on our Wealth 150 list of what we believe are the best funds in each sector.

We rate Adrian Frost and Adrian Gosden highly. They have significant experience managing equity income funds and a long history of outperforming. Their approach has been consistent throughout and a focus on cash-generative companies with the ability to reliably increase dividends has served them well. We believe this fund could be a great core long-term holding within an equity income portfolio.

Our view on the sector

Equity income investing has long been popular with our clients and we have been highlighting our favourite funds to investors for over 30 years. Funds in this sector tend to focus on generating an attractive income for investors along with some capital growth over the long term. The level of income will vary from fund to fund. Some managers aim to produce a consistently high level of income with less scope for growth, while others will look to grow dividends over the long term. While some investors will choose to have the income from their investments paid to their bank account, equity income funds can also be considered by those looking to grow their wealth. This can be achieved by reinvesting the income or by purchasing 'accumulation units' where any income is rolled up into the price of the units on your behalf, rather than being paid out. Over the long term both these options can make a significant difference to the value of your investment. We therefore believe carefully chosen equity income funds can form the cornerstone of virtually any portfolio and all our favourites feature on the Wealth 150.

Performance Analysis

The managers have added significant value over time in excess of the FTSE All Share, but as they tend to focus on unloved areas of the market performance can suffer over shorter periods. This was highlighted during the technology boom of the late 1990's when they lagged the market. Following the fallout from the credit crisis during 2008 and early 2009 the fund performed exceptionally. The portfolio of larger companies with high cash flow was in favour during this period.

Investment Philosophy

The value of a stock is a reflection of the future profits, cash flows or dividends a company will generate.

Process and Portfolio Construction

The managers have the flexibility to invest across the entire UK stock market, but will tend to focus on larger and medium-sized companies in the FTSE 100 and FTSE 250.

An emphasis is placed on cash generation with the managers seeking companies already generating high cash flow and those able to grow it over the long term. This helps them build a portfolio with a higher dividend yield than the market which is currently growing dividends at a faster rate than the market overall. They look for stocks yielding 10% more than the FTSE All Share, although this is not exclusive as the managers hold stocks with varying yields.

Individual stock positions can be a maximum of 5% of the portfolio and a maximum of 4% higher or lower than the stocks weight in the FTSE All Share. At a sector level positions can be 7% either side of the benchmark. When the managers invest in stocks listed overseas any currency exposure is hedged back to sterling as they do not want currency movements to be the overriding influence on a stock's performance.

Manager Track Record Based on HL Quantitative Research question mark

This information is currently unavailable.

Fund Track Record

19/09/09 to 19/09/10 19/09/10 to 19/09/11 19/09/11 to 19/09/12 19/09/12 to 19/09/13 19/09/13 to 19/09/14
Annual return 12.91% -0.69% 17.3% 21.5% 8.02%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Managers Track Record

The graph highlights the Fund Manager's career track record incorporating previous funds they have been responsible for. Each fund is shown as a different colour. In addition we have selected the most appropriate benchmark for comparison. This may incorporate different indices, which again are highlighted in different colour. Performance is shown on a bid to bid basis with net income reinvested. Source: Hargreaves Lansdown, Lipper for Investment Management, Datastream.

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Fund Management Group Comment

Artemis was formed in 1997 and offers a range of funds invested in the UK, Europe and around the world. The Artemis philosophy is that a fund's primary aim is to beat the market and generally the fund managers are free to pursue their best ideas in order to achieve this.

Artemis is home to some of the market's leading fund managers who are required to invest their own money into their funds, and therefore success for them is success for their investors. We feel this is a great incentive for them to continue striving for good performance.

Information about the fund

Fund manager biography

manager photo
Manager Name: Adrian Frost
Manager start date: 1 January 2002 Manager located in: London

After Jesus College, Cambridge, Adrian joined Deutsche Asset Management (Morgan Grenfell) in 1983. He was appointed a director in 1990 and head of UK equities in 1996. Adrian joined Artemis in December 2001 and took over the management of the Artemis Income Fund in January 2002. He has also managed the Artemis High Income Fund since September 2002.

manager photo
Manager Name: Adrian Gosden
Manager start date: 1 October 2003 Manager located in: London

After graduating from Oxford, Adrian started his investment career with Andersen Consulting as a strategic consultant specialising in the telecoms sector. In 1996, he joined Fleming Investment Management as an analyst and assistant fund manager for UK equities until 1998, when he moved to Société Générale Asset Management. There he co-managed the UK Income Fund and several higher income institutional and charity mandates. Adrian joined the Artemis UK equity team in October 2003. Now he manages the Artemis Income Fund and High Income Fund with Adrian Frost.

Benchmark data provided subject to this disclaimer.

You can buy or sell holdings in this fund through a NISA, SIPP or Fund & Share Account

Wealth 150 fund

The Wealth 150 is a list of what we believe are the best funds in all the main sectors. For a fund to be selected for the Wealth 150 it must pass a rigorous selection process, and we continually monitor the list to ensure it only contains the best funds.

Wealth 150+ fund

The Wealth 150 is a list of what we believe are the best funds in all the main sectors. For a fund to be selected for the Wealth 150 it must pass a rigorous selection process, and we continually monitor the list to ensure it only contains the best funds.

As investment returns depend on two factors - performance and charges - we have identified from the Wealth 150, the funds we believe offer the very best combination of outstanding performance potential and the best prices. These are the Wealth150+ funds. In many cases these super-low charges are only available through the Vantage Service - a unique benefit to Hargreaves Lansdown clients.

Core Tracker fund

The Core Trackers list represents what we believe are the very best trackers in each of the main sectors. We analysed each fund's management, process and performance to find the best combination of quality and cost. We want to ensure that the fund has not only tracked its index closely in the past, but that it has the best potential to track well in the future. In many cases these super-low charges are only available through the Vantage Service - a unique benefit to Hargreaves Lansdown clients.

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