According to FE Analytics data, the vehicle has returned 163.9 per cent since it was launched in June 2000, outperforming its sector average and FTSE All Share benchmark by 97.56 and 121.81 per cent respectively.
The fund has also substantially beaten its sector and benchmark over a 10-year period, with less volatility. Of the 56 funds in IMA UK Equity Income with a 10-year track record, only seven have returned more than Artemis Income.
Performance of fund vs sector and index over 11-yrs
Source: FE Analytics
However, the fund has a poor record compared with its peer group in the shorter-term. Much of the managers' success came in the five years after the fund was launched.
In the last five years, Artemis Income has only marginally outperformed its benchmark, though it has beaten the average fund in its sector by 9.29 per cent. However, over a three-year period the fund underperformed the FTSE All Share, and outperformed its sector average by just 2 per cent.
Performance of fund vs sector and index over 10-yrs
| Name |
1-yr returns (%) |
3-yr returns (%) | 5-yr returns (%) |
10-yr returns (%) |
| Artemis Income |
11.49 |
25.03 |
21.54 |
95.83 |
| FTSE All Share |
14.77 |
26.21 |
20.55 |
64.28 |
| IMA UK Equity Income |
13.82 |
23.02 |
12.25 |
67.36 |
Source: FE Analytics
Frost and Gosden’s record is even worse over a one-year period, though few investors base their fund choice on such a short time-frame.
Although the fund’s returns have slowed, it is consistently less volatile than its benchmark and sector average. Artemis Income also has a much lower FE Risk Score than the average UK Equity Income fund.
It also has a higher one-year historic yield than its sector. According to FE Analytics data, Artemis Income is currently yielding 4.21 per cent – 0.25 per cent more than the average UK Equity Income fund.
The managers put an emphasis on both income and capital growth, and look to diversify their portfolio with large, mid and small cap companies. However, the fund's large AUM mean there is more of a bias towards FTSE 100 stocks, as this provides scalability as the fund grows in size.
At present, 81.9 per cent of the fund's portfolio is invested in large caps, 13.6 per cent is in mid caps, and only 2.1 per cent is in small caps. FTSE 100 giants including Vodafone, GlaxoSmithKline, Royal Dutch Shell, BP and HSBC all feature in the fund’s top-10 holdings.
The fund is currently overweight oil & gas and healthcare, and underweight banks.
The portfolio, which is made up of between 60 and 90 stocks, has a strong focus on companies with free cash flow. The managers put a large emphasis on risk and consequently compare the free cash flow yield of their companies with less risky rates of return: for example money markets and bonds.
Artemis Income has a TER (total expense ration) of 1.54 per cent and a minimal investment of £1,000.