Artemis Income Retail Inc

Party_Animal

I was looking to buy some shares. Read various articles and this one was recommended in the Telegraph. I'm not that clued up but the performance looks good. I'll be 66 shortly so not looking very long term but I won't need to access the money and would hope to leave it in for at least 5 years. I was looking to invest a lump sum, maybe £5000 to start and I could top it up from time to time. I don't want something that's high risk though I'm prepared to accept some risk and realise the value could drop. I was going to stick with HL and pay their charges. Has anyone experience of Artemis and can anyone advise the best way forward. No technical terms please as I'm a newbie. Thanks in advance

dunstonh

It is a fund that is really meant to be held in a portfolio of funds covering the different sectors. Not held in isolation.

I don't want something that's high risk though I'm prepared to accept some risk and realise the value could drop.

Going single sector increases the risk. Any reason you want to put your eggs all in one basket?

talexuser

As long as you are aware of the risks and the timescale needed to make returns it is a good core income fund. I have had it for some years and my father had Lazard Income which was run by the same manager many years ago. Frost's long term record is good. Never much at the top of the table, but consistently in the top 5 or 10 funds for the sector, which I think is more important.

Compounding the income for some years before taking it is certainly advantageous. Also look at the HL charges compared to a full rebate intermediary like Cavendish online, since every little counts in the long term.

Mr_K

Great minds think alike, I've put some in the Artemis Income Fund today. It was going to the IP Income fund but I'm holding on investing anymore in that.

Party_Animal

dunstonh wrote: »

It is a fund that is really meant to be held in a portfolio of funds covering the different sectors. Not held in isolation.



Going single sector increases the risk. Any reason you want to put your eggs all in one basket?

Thanks, I'm naive. I thought this was a portfolio. There looked to be a lot of shares spread across various sectors.

Party_Animal

Thanks, just looked at Artemis funds on the Cavendish site. There must be at least 30 different ones. How do you choose from so many? Maybe I'm looking at the wrong one?

dunstonh

Party_Animal wrote: »

Thanks, I'm naive. I thought this was a portfolio. There looked to be a lot of shares spread across various sectors.

It is single sector in that it is UK equity. No europe, US, Japan, Asia, Emerging markets, fixed interest securities, property, global bonds etc. it is single asset. UK shares.

As a single investment fund in isolation, we would have that as risk 9 out of 10 on our scale (1 being cash and 10 being the highest risk unit linked options). If you are a new investor (i.e. no other investments) then going straight in at risk 9 would be something we would put you off. Now, that doesnt mean you shouldnt do it. When you DIY you decide for yourself what to do and you may feel that whilst it is generally considered poor investing to go single sector/single asset, that is what you want to do. You may have a hundred thousand in cash savings and this may only be £5000 of that and you accept the risk. However, if that was the case, you would typically look to be across the risk scale and not have one amount in risk 1 and another amount in risk 9.

Party_Animal

dunstonh wrote: »

It is single sector in that it is UK equity. No europe, US, Japan, Asia, Emerging markets, fixed interest securities, property, global bonds etc. it is single asset. UK shares.

As a single investment fund in isolation, we would have that as risk 9 out of 10 on our scale (1 being cash and 10 being the highest risk unit linked options). If you are a new investor (i.e. no other investments) then going straight in at risk 9 would be something we would put you off. Now, that doesnt mean you shouldnt do it. When you DIY you decide for yourself what to do and you may feel that whilst it is generally considered poor investing to go single sector/single asset, that is what you want to do. You may have a hundred thousand in cash savings and this may only be £5000 of that and you accept the risk. However, if that was the case, you would typically look to be across the risk scale and not have one amount in risk 1 and another amount in risk 9.

Dunsonh, many thanks for that is there one that covers the other markets?

joerugby

Here is an interesting article from HL suggesting that you might use three funds to get better diversification

http://www.hl.co.uk/news/articles/dont-put-all-your-equity-income-eggs-in-one-basket

torus

I invested £5000 in the Artemis High Income Retail Income fund at the end of April and it's been a real dog. Except for a few days after I invested when it went up marginally it's been down between 0 and 3% the whole time since. Yes - it pays a dividend but even this of around £60 every 3 months is meaning I am barely breaking even. I bought this as part of a balanced portfolio (I have around 20 other holdings) as HL kept pushing it but now I am just get cross and suspicious as to why they are doing this and wondering if they are getting a kickback for doing so. Just 2 days ago Mark Dampier from HL was STILL recommending this fund for anyone bailing out of any Neil Woodfood (a very successful fund manager who's just resigned) fund. Look at the graph of the Artemis Fund - it did really well from the start to end of 2012 but has not been in the slightest spectacular since.

In contrast I invested the same amount in Cazenove UK Smaller Companies Class B Accumulation and it's up 16%. And similarly in Chelverton UK Equity Income Retail Accumulation which is up 13%. I'm not suggesting you invest in either or these but merely be a bit more clued up before you invest. Make use of those graphs on HL and compare the funds with other funds and the industry sector (you can add overlays). If you couldn't be bothered with that at least choose a fund which is going up in the past few months and not flatlining!

As for Newton Asia - the bottom of the 3 recommended in the link above - avoid that like the plague! I also invested in that in April and it's been WAY down ever since (currently -8.7%) Take a look at that graph. Having seen that article by HL and learn more about them in the last few months I am starting to take their recommendations with a pinch of salt and loo elsewhere for advice.

Good Luck -I have just started investing in shares and funds in my 50s and wish I'd done it 30 years ago. But I have spent a LOT of time reading about it first before investing. I agree that at 66 you may want something low risk but Artemis is a much higher risk than a bank saving account with little gain for the past 6 months at least.

ColdIron

torus wrote: »

I invested £5000 in the Artemis High Income Retail Income fund at the end of April and it's been a real dog.

In contrast I invested the same amount in Cazenove UK Smaller Companies Class B Accumulation and it's up 16%

Completely different funds with very different objectives, it's an unfair comparison. I think you are being far too short termist in your outlook

The Artemis fund has performed broadly the same as IP High Income over the long term, would you describe that as a dog? Clearly not