Artemis has announced plans to transfer management of their Global Energy Fund to Guinness Asset Management.
The fund will be managed by Tim Guinness, Jonathan Waghorn and Will Riley in the same way as they manage their existing Guinness Global Energy Fund. Richard Hulf, who's been a manager on the Artemis Global Energy Fund since launch in 2011, will act as a consultant.
This transfer will take place automatically on 31 July 2019 and the fund will be renamed 'TB Guinness Global Energy'.
There will be no cost to investors and no change to the fund's ongoing charge as a result of this transfer.
Why is the transfer happening?
Artemis Global Energy is a specialist fund focusing on a niche area of the stock market. But Artemis feel they can add more value in other areas of the market.
They considered a number of options for the fund's future including changing its investment objective and closing the fund altogether. But they concluded that most investors would want to retain exposure to the global energy sector. They therefore decided to transfer the fund to Guinness Investment Management, who already run a successful global energy fund.
The fund will invest in companies involved in the exploration, production, or distribution of oil, gas and other energy sources. The managers will alter where the fund invests depending on their outlook for commodity prices. They'll also consider the financial strength and valuation of the companies they invest in.
The fund will invest in a relatively small number of companies. This means each one has the potential to contribute strongly to returns, but it's a higher-risk approach. It will also have the flexibility to invest in higher-risk areas like emerging markets and smaller companies.