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Fund of the Week: Artemis Strategic Assets

This high profile 'multi asset' fund has had a hard time betting against UK government bonds but fund manager William Littlewood is convinced gilts remain a no-go area.

Fund of the Week: Artemis Strategic Assets

The Artemis Strategic Assets fund is a multi asset fund, investing in equities, bonds, currencies and also a small amount directly held in commodities. Shorting techniques are also used so the manager can try to  profit from falling prices. This means the fund should be able to offer a level of capital protection when markets are down, but also allows it to benefit from rising markets.

Due to his negative view on Western government bonds he currently has a major short position on them, although these have held the fund back in periods of risk aversion, as they’ve rallied.

But Littlewood is undeterred as he thinks western government spending, which is higher than the revenues they raise, is a game that can’t go on forever. As we all know, central banks are happy to hit the printing presses to roll out further QE programmes and the US has made it clear that it will carry on with such measures until unemployment drops to their target level. Littlewood thinks this is a surefire way to create inflation.

On the equities side, positions have generally been reduced when the market is going up, and  added to when it dips. He currently has a few short positions on some American stocks that are on high valuations as well as some defensive companies that no longer look compelling.

You can do more research on this and our Citywire Selection picks by following the link below.

5 comments so far. Why not have your say?

Mickey

Oct 12, 2012 at 18:22

Eventually a recommendation for this fund myst come good :-)

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SJT via mobile

Oct 12, 2012 at 22:03

This fund probably isn't as well diversified as most people think. Being short gilts and long equities (mainly) is basically the same pro risk position. There isn't enough to protect on the downside

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rosalind cortes i

Oct 13, 2012 at 17:12

I hold artemis strategis assets, and I have herad ducks break wind before, as Mr Littlewood as been doing for some time now. I will be switching my holding into a fund that is better placed. My patience as worn thin with the same repeated comments. Also a number of Artemis funds have fallen badly away, who at one time were deemed good, European, UK Special Sits, and UK Growth.

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Tony via mobile

Oct 17, 2012 at 00:11

The fund was sold to the unsuspecting public with the impossible dream of beating the market when it goes up and preserving capital when it goes down - instead the fund underperforms when the market goes up and falls when the market goes down.

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paladin

Dec 06, 2012 at 13:00

I have been disappointed in the fund's ability to protect capital and it is little more than a glorified FTSE tracker. My entire holding has been sold and I have reinvested the proceeds into Vodafone and BG Group last month. Not sure that's the best way to go but better than paying management fees for no added value...

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