Breivik's trial now focuses on victims

Breivik's trial continues - but the attention is no longer on the killer.

The court lecture played faithfully into the absurd image he has constructed for himself – Commander Anders Behring Breivik, the gallant defender of Norway.

"If anyone wants to throw something, you can throw it at me,” Commander Breivik admonished the Olso court after the brother of one of his victims hurled a shoe.

The accused gunman and bomber murdered 77 people on July 22 last year, most of them teenagers executed at close range. But they were legitimate targets. Vibeke Hein Bæra, hit gently by footwear aimed at him, was an innocent bystander. Commander Breivik was honour-bound to intervene: “Don’t throw things at my lawyers.”

It was one of several opportunities he has taken to try to regain the attention of a court which has moved on despite him, and attempt to re-establish himself as the hero of his own trial. The contrast with the genuine heroism of some of the survivors from his rampage on the holiday island of Utoya last year could hardly be starker.

Tonje Brenna, 24, terrified, under fire, watching her friends die around her, picked up and carried a wounded 14 year old girl to the relative safety of a steep cliff edge. She slid down to shelter only after guiding others, then held the wounded girl in her arms, willing her to stay awake, while Commander Breivik stood at the top of the rock face, letting out yelps of joy as his bullets found their teenage targets.

Faced with this story of heroism - one of many heard by the court over the last three weeks - Commander Breivik smiled contemptuously and shook his head.

Beneath Ms Brenna, in the shallow water of the lake, a 17 year old boy, Viljar Hanssen, shot five times, felt for his eye. He couldn’t find it. Instead he reached through the gap in his head and touched his brain. While trying to take stock of his injuries – the three fingers dangling by a thread from his hand, the wounds in his shoulder, arm and leg, and the bullet hole in his head – Viljar could only think of his brother. He had kicked him to safety when the first shots found his own flesh and ordered the younger boy to swim to safety.

Disfigured now, unable to run and ski the way he could before and still unsure about the effects the missing part of his brain might have on his life, Viljar made the court laugh by saying that at least missing an eye meant he didn’t have to look at his would-be killer while he testified. When he described his delight at discovering his brother was unhurt then spoke unselfishly, with stirring fraternal compassion, about the younger boy’s own island ordeal, several in the court cried. Almost nobody was left unmoved.

Commander Breivik took notes. Nothing he has seen so far has shaken his belief that he is the only real hero at the trial. He is defending Norway against “Islamic colonisation” by striking at the heart of the “leftist” establishment. Presumably that is why he was screamed, “today you will die Marxists,” at the unarmed children he was gunning down on the island, and why he was satisfied enough at his work to call the police and proclaim, “this is Commander Breivik... Mission accomplished.”

He is not a commander in the established sense.  He’s not been in any of the forces; never even served his normally obligatory year’s national service. He is, however, part of an imagined pan-European chivalric order, The Knights Templar, similar to the online guilds he was so familiar with from playing World of Warcraft 16 hours a day for a whole year.

He also has a uniform. There are camp pictures of him wearing it in the manifesto he emailed to hundreds of supposedly like-minded right-wingers in the hours before the slaughter. But he has dropped his demands to be allowed to wear it in the court – presumably on the advice of his defence team who would argue that in seeking to be sentenced as a sane man, he should ditch anything which might make him look anything but.

There must be disappointment. The uniform was supposed to have been part of the propaganda front Mr Breivik believed he would be able to sustain throughout the course of this ten week trial. But the media have largely been and gone. He has already been given his legal opportunity to preach his ideology and has now been pushed aside. Now, try as he might to wrestle back some attention, as brave witnesses to the Utoya massacre relive their island nightmares, he has been relegated to a sideshow in his own show trial.

Mark Lewis tweets @markantonylewis

One of the survivors of Breivik's massacre Photograph: Getty Images
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Artemis Monthly Distribution Fund: opportunities in volatile markets...

The Artemis Monthly Distribution Fund is a straightforward portfolio that combines bonds and global equities with the aim to deliver a regular income. It is run by James Foster and Jacob de Tusch-Lec. James also manages the Artemis Strategic Bond Fund whilst Jacob also manages the Artemis Global Income Fund. Whilst past performance is not a guide to the future, the Monthly Distribution Fund has returned 76.7%* since launch in 2012. Its current yield is 3.9%. It is also the top performing fund in its sector.*

Political uncertainty and the actions of central banks continue to create market volatility. In this article, James Foster talks about the opportunities this has provided and which areas of the market he considers most attractive.


The approach of the European Central Bank (ECB) has been both broad and radical. The increase to its quantitative easing (QE) programme has helped to push the yields on an even wider range of government bonds into negative territory. The cheap financing it offered to banks was less expected. To date, however, it has done little to ease fears that European banks are in trouble. The performance of bank shares across Europe (including the UK) has been abominable. Returns from their bonds, however, have been more mixed.

Bonds issued by banks and insurers are an important part of the portfolio. We increased our positions here in February but reduced them subsequently, particularly after the UK’s referendum on the EU in June. Our insurance positions have increased in importance. New Europe-wide solvency rules were introduced at the beginning of the year. They make comparisons easier and give us more comfort about the creditworthiness of these companies.

As part of its QE programme, the ECB announced that it would start buying corporate bonds with the aim of reducing borrowing costs for investment-grade companies. After months of preparation, the purchases began in June. The mere prospect of the ECB buying corporate bonds proved as significant as the reality. The implications, however, could be even more profound than they initially appear. Bonds of any investment-grade issuer with a European subsidiary are eligible.

Moreover, the ECB has changed the entire investment background for bonds. Companies are more likely to do their utmost to retain their investment-grade ratings. The financial benefits are so great that they will cut their dividends, issue equity and sell assets to reduce their borrowings. We have already seen RWE in Germany and Centrica in the UK undertaking precisely these policies.

High-yield companies, meanwhile, will do their utmost to obtain investment-grade ratings and could also lower their dividends or raise equity to do so. This creates a very supportive backdrop to the fund’s bonds in the BBB to BB range, which comprise around 28% of the portfolio.

The backdrop for higher-yielding bonds – those with a credit rating of BB and below – has also been volatile. Sentiment in the first quarter of 2016 was weak and deteriorated as the risk of recession in Europe increased. These types of bonds react very poorly to any threat of rising default rates. With sentiment weak in February and March, they struggled. However, the generosity of the ECB and stronger economic growth readings helped to improve sentiment. Default rates are higher than they were, but only in the energy sector and areas related to it.

We felt the doom was overdone and used the opportunity to increase our energy related bonds. Admittedly, our focus was on better quality companies such as Total, the French oil company. But we also increased positions in electricity producers such as EDF, RWE and Centrica. In a related move, we further increased the fund’s exposure to commodity companies. All of these moves proved beneficial.

One important area for the fund is the hybrid market. These bonds are perpetual but come with call options, dates at which the issuer has the option to repay at par. They have technical quirks so they do not become a default instrument. In other words, if they don’t pay a coupon it rolls over to the following year without triggering a default. In practice, if the situation is that dire, we have made a serious mistake in buying them. These hybrids have been good investments for us. Their technical idiosyncrasies mean some investors remain wary of these bonds. We believe this concern is misplaced. For as long as the underlying company is generating solid cashflows then its bonds will perform and, most importantly, provide a healthy income, which is our priority.


In equities, our response to the volatility – and to the political and economic uncertainties facing the markets– has been measured. We have been appraising our holdings and the wider market as rationally as possible. And in some cases, the sell off prompted by the Brexit vote appeared to be more about sentiment than fundamentals. We will not run away from assets that are too cheap and whose prospects remain good. We retain, for example, our Italian TV and telecoms ‘tower’ companies – EI Towers and Rai Way. Their revenues are predictable and their dividends attractive. And we have been adding to some of our European holdings, albeit selectively. We have, for example, been adding to infrastructure group Ferrovial. Its shares have been treated harshly; investors seem to be ignoring the significant proportion of its revenues derived from toll roads in Canada. It also owns a stake in Heathrow Airport, which will remain a premium asset whose revenues will be derived from fees set by the regulator whether the UK is part of the EU or not.

In equities, some European financials may now be almost un-investable and we have lowered our risk profile in this area. Yet there are a handful of exceptions. Moneta Money Bank, for example, which we bought at the initial public offering (IPO). This used to be GE’s Czech consumer lending business. The Czech Republic is a beneficiary of the ongoing economic success of Germany, its neighbour, and unemployment is low. The yield is likely to be around 8%. And beyond financials, prospects for many other European stocks look fine. Interest rates that are ‘lower for longer’ should be seen as an opportunity for many of our holdings – notably real estate companies such as TLG Immobilien  and infrastructure stocks such as Ferrovial – rather than a threat.


For high-yield bonds the outlook is positive. For as long as the ECB continues to print money under the guise of QE it will compel investors to buy high-yield bonds in search for income. The US economy is also performing reasonably well, keeping defaults low. Despite the uncertainty created by Brexit, that oil prices have risen means we can expect default rates to fall.

At the same time, there are a number of legitimate concerns. The greatest, perhaps, is in the Italian banking system. A solution to the problem of non-performing loans needs to be found without wiping out the savings of Italian households (many of whom are direct holders of Italian bank bonds). Finding a solution to this problem that is acceptable both to the EU and to Italian voters will be hard. Other risks are familiar: levels of debt across Europe are too high and growth is still too slow.

* Data from 21 May 2012. Source: Lipper Limited, class I distribution units, bid to bid in sterling to 30 September 2016. All figures show total returns with dividends reinvested. Sector is IA Mixed Investment 20-60% Shares NR, universe of funds is those reporting net of UK taxes.

† Source: Artemis. Yield quoted is the historic class I distribution yield as at 30 September 2016.



Source: Lipper Limited, class I distribution units, bid to bid in sterling. All figures show total returns with net interest reinvested. As the fund was launched on 21 May 2012, complete five year performance data is not yet available.


To ensure you understand whether this fund is suitable for you, please read the Key Investor Information Document, which is available, along with the fund’s Prospectus, from

The value of any investment, and any income from it, can rise and fall with movements in stockmarkets, currencies and interest rates. These can move irrationally and can be affected unpredictably by diverse factors, including political and economic events. This could mean that you won’t get back the amount you originally invested.

The fund’s past performance should not be considered a guide to future returns.

The payment of income is not guaranteed.

Because one of the key objectives of the fund is to provide income, the annual management charge is taken from capital rather than income. This can reduce the potential for capital growth.

The fund may use derivatives (financial instruments whose value is linked to the expected price movements of an underlying asset) for investment purposes, including taking long and short positions, and may use borrowing from time to time. It may also invest in derivatives to protect the value of the fund, reduce costs and/or generate additional income. Investing in derivatives also carries risks, however. In the case of a ‘short’ position, for example, if the price of the underlying asset rises in value, the fund will lose money.

The fund may invest in emerging markets, which can involve greater risk than investing in developed markets. In particular, more volatility (sharper rises and falls in unit prices) can be expected.

The fund may invest in fixed-interest securities. These are issued by governments, companies and other entities and pay a fixed level of income or interest. These payments (including repayment of capital) are subject to credit risks. Meanwhile, the market value of these assets will be particularly influenced by movements in interest rates and by changes in interest-rate expectations.

The fund may invest in higher yielding bonds, which may increase the risk to your capital. Investing in these types of assets (which are also known as sub-investment grade bonds) can produce a higher yield but also brings an increased risk of default, which would affect the capital value of your investment.

The fund holds bonds which could prove difficult to sell. As a result, the fund may have to lower the selling price, sell other investments or forego more appealing investment opportunities.

The historic yield reflects distribution payments declared by the fund over the previous year as a percentage of its mid-market unit price. It does not include any preliminary charge. Investors may be subject to tax on the distribution payments that they receive.

The additional expenses of the fund are currently capped at 0.14%. This has the effect of capping the ongoing charge for the class I units issued by the fund at 0.89% and for class R units at 1.64%. Artemis reserves the right to remove the cap without notice.

Any research and analysis in this communication has been obtained by Artemis for its own use. Although this communication is based on sources of information that Artemis believes to be reliable, no guarantee is given as to its accuracy or completeness.

Any forward-looking statements are based on Artemis’ current expectations and projections and are subject to change without notice.

Issued by Artemis Fund Managers Ltd which is authorised and regulated by the Financial Conduct Authority.