Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. 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 Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter