Artemis Strategic Assets Fund Half-Yearly Report (unaudited) for the six months ended 28 February 2021 Keep up to date ... ... with the performance of this and other Artemis funds throughout the year on Artemis’ website ■ Monthly fund commentaries and factsheets ■ Market and fund insights ■ Fund briefings and research articles ■ The Hunters’ Tails, our weekly market newsletter ■ Daily fund prices ■ Fund literature artemisfunds.com General information Objective and investment policy Company profile Objective To grow the value of your investment by greater than 3% above the Consumer Price Index (CPI) per annum after Artemis is a leading UK-based fund manager, offering a range fees over a minimum five year period. of funds which invest in the UK, Europe, the US and around Investment What the fund • Company shares the world. policy invests in • Bonds • Property and commodities, indirectly by As a dedicated, active investment house, we specialise in investing through exchange-traded notes and collective investment schemes investment management for both retail and institutional • Other investment funds investors across Europe. • Money market instruments, cash and near cash Independent and owner-managed, Artemis opened Use of The fund may use derivatives to: derivatives • achieve the fund objective, including taking for business in 1997. Its aim was, and still is, exemplary long and short positions investment performance and client service. All Artemis’ • produce additional income or growth • reduce risk staff share these two precepts – and the same flair and • manage the fund efficiently enthusiasm for fund management. • create leverage Where the • Globally The firm now manages some £26.3 billion* across a range fund invests of funds, two investment trusts and both pooled and Industries the • Any segregated institutional portfolios. fund invests in Our managers invest in their own and their colleagues’ funds. Other • 50% to 100% in any combination of limitations company shares, bonds, and indirect This has been a basic tenet of the Artemis approach since specific to property/commodities the firm started. It means that interests of our fund managers this fund • Up to 50% in money market instruments, cash and near cash. are directly aligned with those of our investors. • Up to 30% in short exposures to company shares, but never net short . * Source: Artemis as at 31 March 2021. • Up to 100% in short exposures to bonds, and up to 100% net short to bonds. • 0%-200% gross exposure (long plus short) Fund status in currencies other than pound sterling Investment • The fund is actively managed. Artemis Strategic Assets Fund was constituted by a Trust strategy • The manager uses discretion to manage the proportion of Deed dated 7 April 2009 and is an authorised unit trust the fund’s assets which are invested in each asset class in response to the manager’s view of market conditions and scheme under the Financial Services and Markets Act 2000. analysis of wider economic factors. The fund belongs to the category of UCITS schemes as • The manager allocates to, and selects investments in, different asset classes, geographies, industries defined in the Collective Investment Schemes Sourcebook and individual companies and issuers with the aim (‘COLL’) of the Financial Conduct Authority (‘FCA’). of performing well when markets are favourable and preserving capital when markets are poor. • For example, if the manager believes that bond market Buying and selling conditions are less favourable then the fund’s net bond exposure can be reduced by short-selling bonds or by investing a higher proportion in other asset classes. Units may be bought and sold by contacting the manager • The fund can hold large cash deposits by telephone, at the address on page 5 or via the website Benchmarks • UK Consumer Price Index + 3% artemisfunds.com. Valuation of the fund takes place each A widely-used indicator of UK inflation. It acts as a ‘target business day at 12 noon on a forward pricing basis. Investors benchmark’ that the fund aims to outperform by at least 3% per annum over at least five years. are reminded that past performance is not a guarantee of • IA Flexible Investment NR performance in the future and that the price of units and the A group of other asset managers’ funds that invest in similar asset types as this fund, collated by the Investment revenue from them can fall as well as rise. Association. It acts as a ‘comparator benchmark’ against which the fund’s performance can be compared. Management of the fund is not restricted by this benchmark. 3 Risk and reward profile Other information Prospectus Potentially lower rewards Potentially higher rewards Lower risk Higher risk Copies of the most recent Prospectus are available free of charge from the manager at the address on page 5. Tax information reporting ̥ The fund is in the category shown due to historic volatility (how much and how quickly the value of shares UK tax legislation requires fund managers to provide in the fund may have risen and fallen in the past due to information to HM Revenue & Customs (‘HMRC’) on certain movements in markets, currencies and interest rates). It investors who purchase units in unit trusts. Accordingly, the may not be a reliable indication of the future risk profile fund may have to provide information annually to HMRC on of the fund. the tax residencies of those unitholders that are tax resident ̥ The risk category has been calculated using historic data outwith the UK, in those countries that have signed up to and may not be a reliable indicator of the fund’s future the OECD’s (‘Organisation for Economic Co-operation and risk profile. Development’) Common Reporting Standard for Automatic ̥ A risk indicator of “1” does not mean that the investment Exchange of Financial Account Information (the ‘Common is “risk free”. Reporting Standard’), or the United States (under the Foreign Account Tax Compliance Act, ‘FATCA’). The risk indicator may not fully take into account the following risks and the following may affect fund All new unitholders that invest in the fund must complete performance: a certification form as part of the application form. Existing unitholders may also be contacted by the Registrar should any ̥ Market volatility risk: The value of the fund and any income from it can fall or rise because of movements extra information be needed to correctly determine their tax in stockmarkets, currencies and interest rates, residence. Failure to provide this information may result in the each of which can move irrationally and be affected account being reported to HMRC. unpredictably by diverse factors, including political and For further information, please see HMRC’s Quick Guide: economic events. Automatic Exchange of Information – information for account ̥ Currency risk: The fund’s assets may be priced in holders: gov.uk/government/publications/exchange-of currencies other than the fund base currency. Changes information- account-holders. in currency exchange rates can therefore affect the fund’s value. Value assessment ̥ Special situations risk: The fund invests in companies Artemis Fund Managers Limited (AFML) has conducted a that are in recovery, need re-financing or are suffering detailed assessment on whether its funds are providing value to from lack of market attention (special situations). These unitholders in response to newly introduced regulations. AFML companies are subject to higher-than-average risk of must publish publicly on an annual basis, a statement setting capital loss. out a summary of the outcome of the process and whether or ̥ Derivatives risk: The fund may invest in derivatives not AFML believes the payments out of the scheme property with the aim of profiting from falling (‘shorting’) as well are justified in the context of the overall value delivered to as rising prices. Should the asset’s value vary in an unitholders. Composite reports on Assessment of Value have unexpected way, the fund value will reduce. been published via the website artemisfunds.com. There was no change to the risk indicator in the 6 months to 28 February 2021. Please refer to the fund’s prospectus for full details of these and other risks which are applicable to this fund. 4 Manager Report of the manager Artemis Fund Managers Limited * We hereby approve the Half-Yearly Report of the Artemis Cassini House Strategic Assets Fund for the six months ended 28 February 57 St James’s Street 2021 on behalf of Artemis Fund Managers Limited in London SW1A 1LD accordance with the requirements of COLL as issued and amended by the FCA. Dealing information: Artemis Fund Managers Limited PO Box 9688 Chelmsford CM99 2AE M J Murray L E Cairney Telephone: 0800 092 2051 Director Director Website: artemisfunds.com Artemis Fund Managers Limited London Investment adviser 27 April 2021 Artemis Investment Management LLP * Cassini House 57 St James’s Street London SW1A 1LD Trustee and Depositary J.P. Morgan Europe Limited † 25 Bank Street Canary Wharf London E14 5JP Registrar SS&C Financial Services International Limited * SS&C House St Nicholas Lane Basildon Essex SS15 5FS Auditor Ernst & Young LLP Atria One 144 Morrison Street Edinburgh EH3 8EX * Authorised and regulated by the FCA, 12 Endeavour Square, London E20 1JN. † Authorised by the Prudential Regulation Authority (‘PRA’), 20 Moorgate, London EC2R 6DA and regulated by the PRA and the FCA. 5 Investment review ̥ The fund rises 9.8%. The determination of governments to protect consumer ̥ Positive news on Covid-19 vaccine lifts markets. finances at the expense of their own, as well as the restrictions in the leisure and travel sectors, has created ̥ Ample opportunities in equities. excess savings. To the surprise of most observers, house Performance – Boosted by strong showing from prices have risen over the last year.