Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Artemis rejects sector switch for Frost and Gosden’s star fund

Artemis rejects sector switch for Frost and Gosden’s star fund

The £798 million Artemis High Income fund, managed by the Citywire A-rated pair of Adrian Frost and Adrian Gosden, will not be switching its IMA category despite changes to the sector’s rules.

A recent overhaul of the IMA’s fixed income classifications will potentially put High Income in breach of its Sterling Strategic Bond sector’s requirements. Its constituents will no longer be able to treat hybrid assets – such as convertibles, preference shares and permanent interest bearing shares – as part of their minimum allocation of 80% to fixed interest securities. Funds have until 31 March to comply with the new regulations.

As at 31 December High Income held 16.5% of its assets in equities and 6.2% in convertibles and preference shares, pushing it below the 80% threshold.

Artemis confirmed for Wealth Manager that it had consequently considered moving High Income into a different sector.

A spokesperson said: ‘Artemis recognises the importance of the IMA sector classifications from both an adviser’s and consumer’s perspective. We recently concluded a review of the sector positioning of the Artemis High Income fund. This included, quite rightly, consultation with a number of unit-holders and advisers that had recommended the fund to their clients. In light of our findings there will be no change.’

Frost (pictured) and Gosden’s willingness to go beyond traditional bonds has propelled their fund to the top of the sector. Over the past three years, it is the absolute best in the 54-strong category with a return of 35.6% compared with a peer-group average 18.1%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Neil Gregson: gold is prettiest in ugly contest

Neil Gregson: gold is prettiest in ugly contest

The JP Morgan Natural Resource fund manager talks about the prospects for gold with plenty of uncertainty in the global economy.

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Gutteridge puts the heat on Odey's asset allocation maestro with a couple of tough questions.

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter