Artemis merges global equity funds after 95% fall in AUM
Follows AoV report
Artemis' Global Equity Income fund will become part of its larger Global Income fund in the third quarter of this year, following a 95% fall in its assets under management from £131m to just £6m over the last three years.
Artemis Global Equity Income, which has been managed since its launch in 2015 by Jacob de Tusch-Lec, and by co-managers Sam Morley and James Davidson since 2015 and 2016 respectively, has been the 47th worst-performing fund in the 49-strong IA Global Equity Income sector over the last three years with a loss of 12.1%, according to data from FE fundinfo.
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It also has the third-worst maximum drawdown - which measures the most money investors would have lost had they bought and sold at the worst possible times - over the same time period at 27.7%.
The fund has also struggled over shorter time frames, having underperformed its sector average and MSCI AC World benchmark over the last year, as well as the last one, three and six months.
The decision was taken following Artemis' first Assessment of Value report, which found that while the fund "delivers overall value to clients" and "performed as expected given market conditions", a merger with the Global Income fund was necessary following client redemptions in "late 2019 and early 2020".
The fund's board said: "We have considered a number of options, including securing more investments.
"We have concluded that it would be in the best interest of our clients to merge this fund into the Global Income unit trust.
"That is a large fund, and will mean cost savings for clients."
The Artemis Global Income fund, which is also co-managed by the trio but was launched in 2010, is £1.6bn in size and has also lost investors money over one and three years, as well as over one, three and six months.
It has achieved a positive return over five years of 9%, but this is a significant underperformance of its average peer and MSCI AC World benchmark's respective gains of 26.4% and 53.4%.
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While the Global Equity Income fund has been described as a ‘sub fund' the top ten holdings between portfolios differ. In the Global Equity Income fund, the top largest holdings in order are Sanofi at 5.7%, General Motors at 3.6%, Blackstone Group at 3.3%, China Conch Venture at 3.2% Bristol-Myers Squibb with at 3.2%.
In contrast, the Global Income funds largest holdings are Rai Way at 6.3%, Sanofi at 6.1%, General Motors at 3.6%, Blackstone Group at 3.6% and INWIT 3.6%.
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