Artemis Fund Managers’ first Assessment of Value (AoV) report has prompted the asset manager to consider a series of changes to its fund range, including fund mergers and the appointment of a new co-portfolio manager.
The firm's first AoV report follows a number of firms that have already published their first examples, following the action taken by the Financial Conduct Authority (FCA) in the wake of its 2018 Asset Management Market Study.
Its first report found that the Artemis Pan-European Absolute Return fund, which is down 4.3% over three years to December 2019, "has not achieved its objective", and Artemis is therefore considering its options regarding the fund.
The board explained: "Although the fund outperformed its cash benchmark in the three years prior to 2018, the fund has not since achieved its primary objective of positive returns.
"Performance has been volatile, with repeated periods of sudden, significant downside volatility.
"Given the small size of the fund (£7m)… due to performance and redemptions, we have undertaken an assessment on the ongoing viability of the fund. This included its future prospects and options for increasing its size and scale through gaining new clients".
Next steps for the fund, Artemis said, would be communicated with clients in "due course, which is expected to be by mid-2020".
Similarly, subject to regulatory and shareholder approval, Artemis Global Equity Income, which delivers "value overall to clients" is set to merge with the Global Income unit trust in the third quarter of this year. This was owing to "a reduction in the size of the fund due to client redemptions in later 2019 and early 2020".
Meanwhile, the merger of Artemis US Equity with Artemis US Select will take place in efforts to "pass on economies of scale and continue to deliver very good value to clients".
In addition, Artemis Strategic Assets, which again was found to deliver "value overall", will see Kartik Kumar appointed as co-manager as the "the fund's performance would benefit from broader-based decision making". Kumar has been working on the fund since 2013, having joined the firm the year before.