30 May 2019 – Artemis has announced plans to transfer its Global Energy fund to Guinness Asset Management.
The transfer will take place on 31 July 2019, and the fund will be renamed TB Guinness Global Energy.
Artemis Global Energy is a specialist fund, investing in a very niche area, and it appears the company has decided it can not add any more value in this space.
In a communication issued today, the company said that, “The fund was launched in 2011, since which time there have been significant changes in both market conditions and in the energy sector as a whole.”
TB Guinness Global Energy fund will be managed by a team led by Tim Guinness, who are experts in this field. It will be run in the same way as they manage the existing Guinness Global Energy fund.
In making the decision, Artemis considered a number of options for the fund's future.
Changing the fund's investment objective and policy. Artemis concluded that this would incur cost and disruption to existing unitholders; and it could not be certain that any changes would have the intended effect.
Merging the fund with another fund in the Artemis range. The company evaluated various options, but the fund has no significant overlap in terms of objective or underlying investments with any of the other funds it manages.
Closing the fund. As unitholders have chosen to invest in the energy sector, Artemis do not believe that closing the fund would be in their best interests.
Transferring management of the fund. Artemis conducted a review of comparable competitors' funds and selected relevant managers to approach.
It is the latter option the company has chosen.
Artemis will be writing to all unit holders to inform them of the move. There will be no cost to investors and no change to the fund's ongoing charge.
A spokesperson said: “Guinness Asset Management Limited already operates a successful energy fund, the Guinness Global Energy fund, with a very similar investment strategy.
“Guinness expressed interest in taking over management of the Artemis Global Energy fund. As a result, we have agreed that Guinness will become the new investment adviser to the fund with effect from 31 July 2019 (or a slightly later date, if that is required for operational reasons), and T Bailey Fund Services Limited will become the new authorised fund manager of the fund.”
Commenting on the move, Darius McDermott, managing director of Chelsea, said: “It's an unusual move, but a refreshing one that's in the best interests of investors who want to hold energy assets.
“However, if unit holders want to move their money elsewhere, this will also possible – all the details will be available in the letter they receive.”