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Artemis US Select 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 dist shares)138.21p
Mid price (GBP acc shares)155.55p
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

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. Oil stocks fared poorly and our holding in gas and oil producer QEP Resources was the biggest detractor. It did not meet production expectations for the fourth quarter and announced delays to its drilling plans in the Permian Basin. At the same time, however, the fund benefited from its lack of exposure to sector heavyweight Exxon.

Being underweight in the healthcare sector also proved 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.

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 long-standing holding in videogame producer Take Two Interactive, meanwhile, continues to perform well. Our exposure to the anticipated rise in spending on defence, through holdings such as Leidos (which supplies IT workers to the defence industry), Lockheed Martin (the manufacturer of the F-35 fighter) and Raytheon (defence technology) 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.

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 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 December26.6%11.7%n/an/an/a
20172016201520142013
12 months to 28 February32.1%6.6%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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