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Artemis US Select Fund

All data as at 31 January 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, 24 February 2017
Mid price (GBP dist shares)139.14p
Mid price (GBP acc shares)156.10p
Historic yield (GBP acc shares)0.17%
Historic yield (GBP dist shares)0.14%

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

The US equity market went up again in January (in dollar terms) as we saw the inauguration of Donald Trump. Indicators for both consumer and corporate confidence rose strongly on the promise of lower taxes, de-regulation and increased spending on infrastructure. These measures should in turn have a positive impact on economic activity and earnings.

Indicators for both consumer and corporate confidence rose strongly on the promise of lower taxes, de-regulation and increased spending on infrastructure.

The fund outperformed the index over the month, with both stock selection and sector allocation contributing. Having underperformed since the election, technology stocks fared better in January. The fund benefited through holding stocks such as Lam Research (semi-conductor equipment) and Take-Two Interactive (video games). The cable sector performed strongly on the back of rumoured consolidation, which we consider to be very likely. The fund’s holding in Liberty Broadband was the biggest contributor to performance over the month.

On the negative side, our holding in Spirit Airlines suffered after it announced uninspiring results and guidance on profits. There were also concerns about restrictions on air traffic following President Trump’s ban on travel from certain countries. The fund’s exposure to industrials was mixed: not holding General Electric was a positive, while exposure to Swift (transportation) detracted from performance as the company’s results failed to convince. Not holding Verizon (telecoms) was also beneficial as the stock suffered on the back of weak results.

In terms of activity, we have continued to add to financials by increasing our position in Bank of America. This bank is well-placed to benefit from increases in interest rates, from de-regulation and also from potentially better market-related activities. The fund’s main exposure to financials remains in regional banks. We have also continued to add to selected stocks involved with semiconductors and bought Applied Materials, a leading manufacturer of OLED screens.

As the market has performed very strongly since the election, it is likely that we will see more volatility ahead once the reality of Trump’s agenda and its implementation (or lack of) kicks in.

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 January 2017

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

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

Asset allocation

Asset allocation

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

Percentage growth (class I)

20162015201420132012
12 months to 31 December26.6%11.7%n/an/an/a
20172016201520142013
12 months to 31 January34.9%4.3%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 31 January 2017 (%)

 

6 months

1 year

3 years

5 years

Artemis US Select Fund

54.9

34.9

14.5

6.8

S&P 500 TR

54.4

35.3

11.8

4.6

North America Average

49.0

39.6

12.5

5.4

Position in sector

14/78

66/83

22/88

16/89

Quartile rank

1

4

1

1

Value of £1,000 invested at launch to 31 January 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 31 January 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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