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Advisers and wealth managers

Artemis US Select Fund

All data as at 31 March 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, 21 April 2017
Mid price (GBP dist shares)136.87p
Mid price (GBP acc shares)154.05p
Historic yield (GBP acc shares)0.33%
Historic yield (GBP dist shares)0.33%

Investment information
(class I)

Minimum lump sum investment£250,000
Ongoing charge (GBP acc shares)0.85%
Ongoing charge (GBP dist shares)0.85%

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

March was the first month since the presidential election in which the market seemed to struggle. Despite finishing the month only slightly lower, there were many consecutive days when the market fell. It also marked a reversal in performance for financials that had performed strongly but are now lagging the index. The Fed hiked interest rates - a widely-anticipated move which was already priced in.

As there are now question marks over whether economic growth will pick up, investors’ focus might shift to economic news.

The main news was the failure of the healthcare bill: Trump’s first attempt at reform. The withdrawal of the bill - while initially perceived as a negative - didn’t make a meaningful impact on the market. But it does raise questions about how many of Trump’s planned policies will get passed. While this might allow the tax reforms to be tackled more quickly, it could potentially impair how extensive these will be, as the expected savings from the healthcare reforms won’t be available to help to fund the tax cuts.

The fund underperformed the market slightly. On the negative side, a poor month for energy and financials affected our holdings in both sectors. On the positive side, technology stocks had another good month and the fund’s exposure to the sector - and specifically to semi-conductors and semi-conductor equipment companies - was helpful: Lam Research, Applied Materials, Micron and Advanced Energy Industries all featured in the top contributors. Our exposure to makers of videogames also contributed positively. Having taken some profits in Take-Two Interactive, we added to our position in Activision Blizzard (the maker of Call of Duty and World of Warcraft) and the fund’s performance benefited from both.

In activity, we reduced some of our holdings in financials as the sector had performed so well over previous months. We also cut some of our positions in software and services.

As there are now question marks over whether economic growth will pick up, investors’ focus might shift to economic news. The increase in confidence was based on hope rather than reality and the failure of Trump to accomplish much in his first few months in office might now result in more scepticism: the market might need further proof before it can move higher.

13 February 2017

Cormac Weldon: Where next for US equities?

The US stockmarket has reacted very positively to the promise of lower taxes and reduced regulation. Cormac Weldon, head of Artemis’ US team, talks about the areas of the market most likely to benefit and how the funds are positioned.

Value of £1,000 invested at launch to 31 March 2017

Value of £1,000 invested at launch to 31 March 2017

Data from 19 September 2014. Source: Lipper Limited, class I GBP accumulation shares, mid to mid in sterling to 31 March 2017. All figures show total returns with dividends reinvested.

Asset allocation

Asset allocation

Source: Artemis as at 31 March 2017. Please note figures may not add up to 100% due to rounding.

Percentage growth (class I)

20172016201520142013
12 months to 31 March30.8%4.8%n/an/an/a
20172016201520142013
12 months to 31 March30.8%4.8%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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Cormac Weldon: Where next for US equities?





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About the fund

  • Concentrated ‘best ideas’ US equity fund
  • High-conviction approach
  • Selects stocks from across the market-cap spectrum

The Artemis US Select Fund aims to deliver long-term capital growth by investing in a relatively concentrated portfolio of the ‘best ideas’ generated by Artemis’ US equity team.

Highly regarded manager Cormac Weldon has an enviable long-term performance record. This has been achieved through a collaborative approach, drawing on his team’s ability to combine top-down, strategic analysis with fundamental bottom-up, stock-specific research.

To maximise long-term returns, Cormac is free to select stocks wherever he finds opportunity across the market-cap spectrum. The fund’s holdings – typically 40 to 60 companies – bear little relation to the index. Some of its holdings will be in smaller or less mature companies with superior long-term growth potential.

Reasons to invest

  • ‘Best ideas’ US  equity fund: the manager is free to select stocks wherever he finds opportunity.
  • High alpha: with a focused portfolio, position sizes reflect a stock’s upside potential and downside risks rather than its index weighting, maximising exposure to growth potential.
  • Strong performance record: Cormac was lead manager of the Threadneedle American Select Fund for over ten years, outperforming the S&P 500 and ranking top quartile in the IA North American sector over his tenure.
  • Flexible and pragmatic: the fund adopts a flexible and pragmatic approach to stock-picking, shifting style to deliver returns across the economic and market cycle.

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.
  • 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.
  • Robust investment process: the Artemis US equity team has a tried and tested investment process which has been proven through different market cycles, with research drawing on multiple information sources.
  • 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.

 

Morningstar OBSR Bronze

Rayner Spencer Mills rated fund

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 classes

 

Class I GBP accumulation and distribution

Management fee

 

0.75%

Ongoing charge

 

0.86%

SRRI rating

 

5

Fund Performance

Performance to 28 February 2017 (%)

 

Since launch

1 year

6 months

3 months

Artemis US Select Fund

58.1

32.6

16.6

6.5

S&P 500 TR

62.3

40.0

15.8

8.5

North America Average

55.3

37.9

15.9

7.8

Position in sector

32/78

75/83

30/88

76/89

Quartile rank

2

4

2

4

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

Artemis US Select Fund I Performance

Please remember that past performance is not a guide to the future. * 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. Sector is IA North America NR, universe of funds is those reporting net of UK taxes. As the fund was launched on 19 September 2014, complete five year performance data is not yet available.

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 Select Fund overview

Artemis US Select Fund brochure

Artemis US Select Fund KIID

Artemis OEIC funds prospectus

Risk warnings

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

The fund may have a concentrated portfolio of investments.

The fund may invest in the shares of small and medium sized companies.

The costs and benefits of currency hedging transactions will apply to hedged shares.

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.[BR/][BR/]

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