Interactive Investor

ii Super 60 investments:Artemis Monthly Distribution

Asset GroupAsset Sub-GroupInvestment Category
AlternativesMixed assetIncome

Selection rationale:

The equity sleeve has been managed by Jacob de Tusch-Lec since inception (May 2012) whilst the management of fixed income sleeve has recently been taken on by David Ennett and Jack Holmes following the resignation of Stephen Baines. Ennett and Holmes have built a strong track record since joining Artemis in 2019 and had a successful track record at Kames too. They provide strong continuity thanks to their involvement supporting Baines under a team-driven approach. 

The fund is a simple headline equity and bond fund with a broadly static asset allocation of 60% and 40% respectively. In equities, Jacob de Tusch-Lec focuses on income-producing stocks. He looks for firms globally that generate a high level of free cash flow and pairs that with his top-down macro and style views. He can invest across the market-cap spectrum, but has consistently had a mid and small cap bias relative to the index and global equity-income strategy he manages. The fixed Income sleeve will continue to focus mainly on high-yield and investment-grade bonds, which since 2019 has broadened to a global opportunity set including the US, which we think is an advantage for this strategy. Foreign-currency bonds are normally hedged back to sterling. The managers communicate regularly to coordinate the overall portfolio and manage risks at the overall strategy level.

The strategy has a strong track record, ranking in the top quartile of the IA Mixed Investment 20-60% Shares peer group and its Morningstar GBP allocation 40-60% equity category since inception. Income has also been consistent over time, with at yield of at least 4% since inception to 2020, where it understandably dropped, but has since re-established at pre-2020 levels.

Opinion
Despite not working together formally for long, they are well-established within their respective teams and have long track records within their asset class specialism.

The focus on income leads to above average allocations to riskier fixed income assets, such as high yield, which may result in greater drawdowns during periods of economic weakness, but performance remains impressive even when adjusted for higher than average risk.

October 2022

Risk warnings

Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. 

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab. 

The information we provide in the ii Super 60 investments list is an opinion provided by ii or one of its partners on whether to buy a specific investment. Please note that none of the opinions we provide are a “personal recommendation”, which means that we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. Therefore you should ensure that any investment decisions you make are suitable for your personal circumstances.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor. 

Any changes to the ii Super 60 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.

Details of all recommendations issued by ii during the previous 12 month period can be found here.

ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii Super 60 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of this ii Super 60 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii Super 60 investments list.