Last updated 30 April 2020
In a recent letter to shareholders, we communicated that we would be making some changes to the Artemis Investment Funds ICVC prospectus to clarify that the sub-funds may invest over 35% of the scheme property in certain government and public security issuers. The change is detailed in section 7 of Appendix III in the prospectus. We would like to provide you with some further information on this change.
In order to efficiently satisfy diversification requirements, the sub-funds of Artemis Investment Funds ICVC now have the flexibility to invest over 35% of the scheme property in securities issued by the below-mentioned nation states and devolved administrations:
The United Kingdom, the Scottish Administration, the National Assembly of Wales, the Executive Committee of the Northern Ireland Assembly or the Governments of Australia, Austria, Belgium, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland and the United States of America.
Such flexibility is considered useful and appropriate as investment in such nation states and devolved administrations is consistent with the investment policy of each of the sub-funds. In particular, each of the sub-funds may use derivatives to achieve its investment objective and/or for efficient portfolio management purposes. It follows that it is prudent for each sub-fund to hold a significant proportion of its assets as cash and near cash (as collateral to these transactions). Due to the liquidity in the asset class, government bonds (such as treasury bills) can be traded very cheaply with minimal market impact. This, coupled with very short settlement cycles, allows for effective cash management.
The changes came into effective on 30 April 2020. If you have any questions about the changes or require any further information please call our Client Services team on 0800 092 2051 between 8:00am and 6:00pm (Monday to Friday).