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Advisers and wealth managers

Artemis US Equity Fund

All data as at 28 February 2017 except where specified
  • Summary
  • About the fund
  • Performance
  • Composition
  • Key facts
  • Investment insights
  • Literature
  • Contact us


The fund’s aims

The fund aims to achieve long-term capital growth by investing principally in the shares of companies listed, quoted or traded in the United States of America.

Current prices and yield
(class I)

As at noon, 22 March 2017
Mid price (GBP acc shares)156.15p
Historic yield (GBP acc shares)0.43%

Investment information
(class I)

Minimum lump sum investment£250,000
Ongoing charge (GBP acc shares)1.00%

The initial charge is currently waived. The ongoing charge includes the annual management charge of 0.75% and is shown as at the date of the Key Investor Information Document (KIID), where a full explanation of the fund's charges can be found.

Fund manager’s update

Helped by the prospect of tax reforms and deregulation, the US market added to its recent gains in February. Economic data, meanwhile, remained positive with purchasing manager indices (PMIs) continuing to rise. The market’s advance was led by healthcare stocks and financials. Greater clarity on reform of the healthcare system aided that part of the market while the announcement that some of the controls put in place after the financial crisis would be eased boosted the banks. The growing expectation that the Federal Reserve would raise rates at its next meeting was also helpful.

The market’s advance was led by healthcare stocks and financials.

Although the fund delivered a positive return in February it failed to keep pace with the S&P 500 index. Being underweight in the healthcare sector was unhelpful - and stock selection in this part of the market was negative, with Zoetis (animal healthcare) reporting unconvincing numbers. We continue to see potential for excellent future returns from Zoetis’ products so retain the holding. Oil stocks fared poorly and while the fund benefited from its lack of exposure to the sector heavyweight Exxon, its holding in Diamondback Energy detracted.

Good contributors this month included an overweight position in financials and, on a stock level, strong returns from Bank of America. Not all of our financial stocks performed quite so well, however: Charles Schwab struggled as its fees came under pressure. Our exposure to the anticipated rise in spending on defence, through holdings such as Leidos (which supplies IT workers to the defence industry) and Lockheed Martin (the manufacturer of the F-35 fighter) made a strong contribution. In contrast, holdings in transport companies - trucking carrier Swift Transportation and low-cost airline Spirit Airlines - had a poor month. We continue to favour both stocks. We believe that demand and pricing in trucking will improve and that Swift will be able to withstand the upcoming regulatory changes better than its competitors. Meanwhile, there is further scope for Spirit to increase its market share and expand the reach of its low-cost operation.

01 March 2016

Artemis US equities: situation and outlook…

Cormac explains his underweight in banks, capital goods and materials, and overweight in consumer staples – and why he is (still) favouring growth companies.

 

Value of £1,000 invested at launch to 28 February 2017

Value of £1,000 invested at launch to 28 February 2017

Data from 19 September 2014. Source: Lipper Limited, class I GBP accumulation shares, mid to mid in sterling to 28 February 2017. All figures show total returns with dividends reinvested.

Asset allocation

Asset allocation

Source: Artemis as at 28 February 2017. Please note figures may not add up to 100% due to rounding.

Percentage growth (class I)

20162015201420132012
12 months to 31 December27.9%9.3%n/an/an/a
20172016201520142013
12 months to 28 February33.5%5.7%n/an/an/a
Please remember that past performance is not a guide to the future. Source: Lipper Limited, class I GBP accumulation shares, mid to mid in sterling. All figures show total returns with dividends reinvested. As the fund was launched on 19 September 2014, complete five year performance data is not yet available.

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Artemis US equities: situation and outlook…





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About the fund

  • Core US equity fund
  • Large and mid-cap bias
  • Aims to outperform the S&P 500

The Artemis US Equity Fund aims to achieve long-term capital growth from a portfolio which consists primarily of large and mid-cap stocks from North America.

The fund is a core holding for investors looking for well diversified exposure to the potential of America’s best large and medium-sized companies. Designed to produce long-term capital returns in excess of the S&P 500 index, it invests in around 60 to 80 stocks.

Experienced manager Cormac Weldon has a highly regarded, long-term performance record as a US equity manager. This has been achieved through a collaborative approach, illustrating the Artemis US equity team’s ability to combine fundamental bottom-up, stock-specific research with top-down, strategic analysis.

Reasons to invest

  • Core US equity fund: provides diversified exposure to America's best large and mid-sized companies.
  • An eye on risk: the manager pays as much attention to downside risk as he does to upside opportunity.
  • Robust investment process: a tested, research-led investment process that has been proven through different market cycles.
  • Experienced team: collectively, Artemis’ US equity team has 56 years’ experience. Lead manager Cormac Weldon has over 20 years’ experience and has successfully navigated many market cycles.

Investment approach

  • Macro aware: rigorous analysis of long-term trends shaping the US economy, identifying areas of the market benefiting from thematic trends – and stocks for whom conditions may not be quite so favourable.
  • Style agnostic: the fund is not constrained by either a ‘growth’ or ‘value’ approach, though it may assume a bias as economic and market conditions evolve.
  • Risk-conscious approach: for every stock held, the team set a concrete measure of the balance between risk and opportunity. By forecasting how far each company’s shares might rise (or fall) on a one-year view, they ensure the fund offers an attractive risk profile in a range of scenarios.
  • Judgement is key: Cormac Weldon has managed US equity portfolios in all manner of market conditions. His judgement underpins the fund, allowing it successfully to navigate changes in the economic and market environment.

Introducing the fund

Manager Cormac Weldon introduces the fund and explains his investment approach.

Fund information


Launch date

 

19 September 2014

Strategy

 

Equity long only

Benchmark

 

S&P 500

IA sector

 

North America

Geographical focus

 

North America

Structure

 

OEIC

Share class

 

Class I GBP accumulation

Management fee

 

0.75%

Ongoing charge

 

1.00%  (including additional expenses capped at 0.25%)

SRRI rating

 

5

Performance credentials

The following figures illustrate the performance of the Threadneedle American Fund which Cormac Weldon managed from June 2011 to December 2013. The investment strategy and portfolio of the Artemis US Equity Fund will be modelled on the Threadneedle American Fund.

 

 

6 months

1 year

Tenure

Threadneedle American

9.1%

32.9%

40.4%

S&P 500

6.5%

29.9%

44.5%

IA North America

7.7%

31.3%

38.2%

Quartile rank

1

1

2

 

Artemis US Equity Fund performance chart

Source: Lipper Limited, bid to bid, net of fees, retail GBP share class, net income reinvested from 31 May 2011 to 31 December 2013. Sector universe of funds is those reporting net of UK taxes. The performance shown is for illustrative purposes only.

Further information

To speak to Artemis about the fund, contact our sales team, call 0800 092 2090 or email us. The following documents are available in PDF format:

Artemis US fund range brochure

Artemis US equities range brochure

Artemis US Equity Fund overview

Artemis US Equity Fund brochure

Artemis US Equity Fund KIID

Artemis OEIC funds prospectus

Risk warnings

THIS INFORMATION IS FOR PROFESSIONAL ADVISERS ONLY and should not be relied upon by retail investors.

The additional expenses of the fund are currently capped at 0.25%. This has the effect of capping the ongoing charge for the class I shares issued by the fund at 1%. 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.

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