The veteran investor has been buying shares in GlaxoSmithkline.
The fund manager commented, ‘Lastly, we bought more GlaxoSmithKline which – thanks to its business mix and the affordability of its dividend – looks better placed than it has [for a while].
Frost has for some time been cautious on the outlook for the global economy, and recent developments have not given him cause to change to his mind.
He said, ‘We have mentioned the lack of economic growth and the threat of stagnation countless times in these reports. So in the interests of balance we should acknowledge that the news on the economy is brighter than it has been for some time. In the main, this is being reflected in the comments of the companies we speak to. Yet while this cyclical – and political – news is not unimportant it is unpredictable. In our view, understanding structural changes taking place is of far greater importance to investment returns over the long term.’
Continuing his disclosure on recent investments said, ‘We continued to exit our holding in Sanofi. The opportunity we had identified was for the valuation discount on which it traded relative to its peers to close. That duly happened. Even more quickly than we had anticipated, Sanofi has gone from being an unwanted orphan to trading on a par with other pharmaceutical companies. Elsewhere, we reduced our holdings in BT, Halfords and Centrica. In purchases, we added to Nordea, a relatively new holding in the portfolio. It combines a solid yield with an attractive mix of business and capital strength.’
The Artemis Income fund has a yield of a smidgen over 3.9 per cent. The fund has returned 84 per cent over the past five years. The largest investments in the fund are BP, the oil giant, and Relx, the media company.