Artemis: funds, charges and how to invest

Artemis is a UK fund manager. It sells investment funds rather than bank accounts, insurance or mortgages, and it sells only "active" funds, where a manager picks investments rather than tracking an index¹. Its range covers unit trusts, OEICs, SICAVs and investment trusts, and it also runs two multi-asset funds².

The practical points for anyone arriving here are these. Artemis does not give investment advice on whether a fund suits you, and its own documents say they should not be used to make investment decisions⁴. It applies no initial charge and no exit charge on any of its funds, though it does charge an annual management charge and a performance fee on certain funds⁴. And the value of a fund can fall: Artemis states plainly that capital is at risk and investors may not get back the amount initially invested³.

What Artemis offers: its range of investment funds

Artemis offers four fund structures to individual investors: unit trusts, OEICs, SICAVs and investment trusts². The distinction matters less than it sounds. Most unit trust funds, most OEIC funds, most SICAV funds and most investment trusts carry sales charges and annual management fees, known as the ongoing charge². What differs is the legal wrapper and, in practice, where the fund is registered and which regulator supervises it. Artemis offers only active funds, and its multi-asset range runs to two funds³.

Artemis offers only "active" funds, meaning a manager selects holdings rather than replicating an index¹. Its funds are "active" funds in the same sense⁷. Benchmarks are still used to measure how a fund has done, and the benchmark for each fund, and how it is used, is set out in that fund's Key Investor Information Document⁷.

The individual funds differ widely in what they hold. The Artemis Income Fund runs an actively managed portfolio of 45 to 55 company shares, and it can hold up to 20% in bonds, cash and near cash, other transferable securities, other funds (up to 10%) managed by Artemis and third party funds, money market instruments, and derivatives⁸. The Artemis UK Select Fund invests in 40 to 60 UK company shares and is a unit trust⁹. The Artemis Atlas Fund is an OEIC and a sub-fund of Artemis Investment Funds ICVC, with a fund size of £17.42m¹⁰. The Artemis Global Income Fund holds 96 investments in total and pays distributions twice a year on its I Inc GBP unit class¹¹. The Artemis Corporate Bond Fund keeps at least 80% of the fund denominated in or hedged back to sterling¹².

Two multi-asset funds sit alongside these, one with a focus on long-term growth and the other on providing a monthly income³. Artemis describes them as distinct solutions rather than variations on one approach³.

Currency hedging: NAV hedging or portfolio hedging

Several Artemis funds hold assets priced in currencies other than sterling, and the firm offers two ways of dealing with the currency risk that creates. It describes them as "Net Asset Value (NAV) hedging" and "Portfolio hedging"¹³.

NAV hedging works at the level of the whole fund. Portfolio hedging works differently: portfolio hedged classes are separately hedged for each currency the fund invests in, into the class currency¹³. So a fund holding US and Japanese assets would have the dollar exposure and the yen exposure hedged separately, each back into the currency of the share class.

Artemis also offers some funds that hedge the currency risk of all of the different assets in the portfolio automatically, as well as offering currency hedged classes¹³. Hedged classes, as a category, attempt to dampen the impact of currency volatility¹⁴.

The Artemis Corporate Bond Fund is an example of a fund-level rule: at least 80% of the fund will be denominated in or hedged back to sterling¹². The Artemis Atlas Fund takes a different approach again, using derivatives, with total derivatives (longs plus shorts) typically lying in a range of +100% to +300% of net asset value, and the fund defining market neutral as having between -20% and +20% net exposure to equities¹⁰.

Hedging is not free and not perfect. It reduces the effect of currency movements on a fund's value, but it does not remove investment risk, and the cost of hedging is borne by the fund.

How Artemis charges work: no initial or exit charges

Artemis states that it does not apply an initial charge on any of its funds and does not apply an exit charge on any of its funds⁴. That means there is no charge from Artemis itself for putting money in or taking it out.

What it does charge is an annual management charge, calculated daily, based on the value of the fund's net assets and reflected in the daily value of the fund¹⁵. Because it is taken from the fund rather than billed to you, you will not see it as a separate payment. Artemis also charges a performance fee on certain funds⁴.

Different charges are applied for class R and class I units or shares in Artemis funds¹⁵. The class you hold therefore changes what you pay. Among the classes Artemis describes, class R has a higher ongoing charge when compared to the class C and I classes, class C has an ongoing charge typically higher when compared to the class I class, and class B (Lux) has a lower ongoing charge when compared to the A classes¹⁴. Class A (Lux) is available for all types of investor¹⁴. Classes also differ in how often they pay out: some distributions may be paid once a year, whereas other classes may pay out more frequently, such as every six months, quarterly or monthly¹⁴.

Artemis publishes a fund charges and costs document giving explanations about each type of charge and cost and specific information on each of its funds⁴. For the figures that apply today, that document and the individual fund pages are the place to look.

Artemis does not give investment advice

Artemis states that it does not provide investment advice on the advantages or suitability of its products, and that no information it provides should be taken as advice⁴. Its fund documents carry the same line: they are not marketing communications and should not be used to make investment decisions⁴.

That is a position Artemis takes on what it will and will not do, not a disclaimer for its own sake. It means nobody at Artemis will tell you whether a particular fund matches your circumstances, timescale or attitude to risk. Advisers can help you plan your investments and can invest in Artemis funds on your behalf, and investors who may need advice are pointed towards a financial adviser¹⁶. Financial advisers are regulated by the FCA¹⁷.

Before investing, Artemis suggests referring to the fund's prospectus and KIID or KID, which can be found on its literature page or the relevant fund page¹⁶. Those documents set out the fund's objective, its policy and its risks, and they are the material a decision should rest on.

If you want advice from a firm that is authorised to give it, the FCA Register shows whether a firm or individual is authorised, and the MoneyHelper service offers free, impartial guidance on money questions. Guidance is not the same as advice: it explains options without recommending one.

How to invest in Artemis funds

There are three routes. You can invest via a financial adviser, via an investment platform, or directly with Artemis¹⁶. Direct investors who already have an account can call 0800 092 2051¹⁶.

The route you take affects which share classes you can hold. Minimum investments apply to investors investing directly with Artemis; if you are investing via an investment platform or a financial adviser, you may be able to invest in the classes with the lowest ongoing charges without having to meet the minimum investment amount¹⁴. Class C is only available if you invest directly with Artemis¹⁴. Class I may be available in smaller amounts through an investment platform or financial adviser, subject to their terms and conditions¹⁴.

Platforms charge their own way. You might be charged each time you buy and sell a share, investment trust or exchange-traded fund, and fees for buying and selling traditional funds are less common¹⁸. You might also be charged if you transfer investments from one platform to another, though many platforms have scrapped these fees, while others will offer to cover switching fees as an incentive to join them¹⁸. Investment trusts are treated by investment platforms in a similar way to shares, so one-off fees are likely when buying and selling even if fund trading is free¹⁹.

Dealing and account administration

Artemis uses a third party administrator to carry out a number of fund administration functions, such as dealing and client registration¹⁵. In practice that means the firm handling your instruction to buy or sell, and the register of who owns what, may not be Artemis itself.

Funds are not dealt every day. On non-dealing days no price per share or unit (net asset value) will be issued and no dealing instructions are able to be actioned, whether by subscriptions, redemptions, switches or conversions²⁰. Most stock exchange and market closures can be anticipated, enabling Artemis to provide a list of dates affected over a full calendar year²⁰. If you are planning a purchase or sale around a holiday period, that list is worth checking first.

Some administrative dates are set per fund. The Artemis Income Fund has a year end of 30 April⁸. The Artemis UK Select Fund has a year end of 31 December⁹. The Artemis Atlas Fund has pay dates of 30 April and a valuation point of 12:00 UK time¹⁰. The Artemis Global Income Fund pays distributions biannually on its I Inc GBP unit class¹¹.

Funds also differ in how they are priced and structured. The Artemis Atlas Fund is an accumulation unit type with a base currency of GBP¹⁰. The Artemis Income Fund, UK Select Fund, Global Income Fund and Corporate Bond Fund all have GBP as their base currency⁸.

Complaints and service problems with Artemis

Complaints go to different places depending on which part of the business you are dealing with, and the first step is to use the right one.

For complaints about the unit trust and OEIC ranges of funds, contact the complaints coordinator at Artemis, Sunderland SR43 4BH, by phone on 0800 092 2051 or by email at artemisenquiries@ntrs.com; complaints can be made by post, phone, fax or email²¹. The firm will acknowledge your complaint within five working days and will try to resolve it as quickly as it can²¹.

For Artemis Funds (Lux), contact Client Services by letter, email or fax on 020 7399 6497 at Cassini House, 57 St James's Street, SW1A 1LD²¹. For intermediaries and institutional investors, address correspondence to the Head of Distribution Services, or email complaints@artemisfunds.com; complaints are handled first by the Head of Distribution Services, with referral to the Risk and Compliance team on request²¹. For Artemis UK Future Leaders Plc, contact by letter or email at artemisukfutureleaders@ntrs.com, 50 Bank Street, Canary Wharf, London E14 5NT, and the company will acknowledge your complaint within five working days and tries to complete its review within four weeks where the matter is resolved on first response²¹.

If you are not satisfied, you can refer the complaint to the Financial Ombudsman Service free of charge, subject to meeting certain criteria²¹. Although there are time limits for referring a complaint to the Ombudsman, Artemis states that it will consent to the Ombudsman considering complaints referred outside those limits²¹. The Ombudsman helps resolve complaints about issues such as account closures, disputed transactions, IT failures, and problems with switching services²². Where a firm has not resolved a complaint within eight weeks, that is a common point at which consumers can escalate²³.

Scam warning: Artemis will never call or text to sell you a fund

Artemis states that it will never call or text you trying to market or sell a fund or investment, and that it will never attempt to market or sell to you via WhatsApp⁵. It also states that any other businesses with "Artemis" in their name, or websites other than www.artemisfunds.com, are not connected to it⁵.

If you receive a call from someone claiming to be from a trusted organisation, hang up and call them back on a number you know to be correct²⁵. If someone claiming to be from your bank, the PSR or a body that supervises financial firms like the FCA contacts you out of the blue, hang up and contact the organisation directly using publicly listed contact details, do not be pressured into sending money, and end the interaction²⁶. If you think you have already been a victim, contact Action Fraud to make a report and call your bank immediately so they can protect your account²⁶.

How your money is protected: FCA regulation

Artemis states that it is regulated by the Financial Conduct Authority⁵. Artemis Fund Managers Limited and Artemis Investment Management LLP are authorised and regulated by the UK Financial Conduct Authority⁴. FSCS protection applies only where the authorised firm's activity is regulated by the PRA or the FCA, and the particular activity the firm is carrying out for you must be regulated²⁷.

The Artemis Funds (Lux) range is different. Those are SICAV funds and are therefore not authorised and regulated by the UK Financial Conduct Authority; they are authorised and regulated by the Luxembourg based EU regulator, the Commission de Surveillance du Secteur Financier (CSSF), and are recognised under the UK FCA Overseas Fund Regime⁶. For those funds, UK investors will not be protected by the UK Financial Services Compensation Scheme for financial losses suffered as a result of any of the mentioned bodies being unable to meet their liabilities to shareholders⁶.

That last point is the one to hold on to. FSCS protection applies only where the authorised firm's activity is regulated by the PRA or the FCA, and the particular activity the firm is carrying out for you must be regulated²⁷. Investment protection is not a guarantee against investment loss: a fund falling in value is a market outcome, not a firm failure, and no compensation scheme covers it. What the scheme addresses is the firm being unable to meet its liabilities.

Where you hold a fund through a platform or adviser, that firm has its own position with the FCA and its own protections, and your first route for a service problem is usually with them.