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Institutions and charities

Artemis US Extended Alpha Fund

All data as at 28 February 2017 except where specified
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The fund’s aims

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

Current prices and yield
(class I)

As at noon, 30 March 2017
Mid price (GBP acc shares)174.78p
Historic yield (GBP acc shares)0.00%

Investment information
(class I)

Minimum lump sum investment£250,000
Ongoing charge (GBP acc shares)0.86%

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). A performance fee is charged only when the share price outperforms the fund's benchmark index by a minimum percentage. A full explanation of the fund's charges can be found in the KIID.

Fund manager’s update

Fuelled by large flows into equity and bond ETFs, the US market extended its gains in February. Expectations that the new administration will cut taxes and red tape continued to propel indicators of business and consumer confidence to very high levels. But because growth in real wages (which is to say after inflation) is actually negative, this increased confidence among consumers hasn’t translated into higher spending. Furthermore, despite improved data readings over the last six months, there are signs that the US economy may be slowing.

The market’s gains in February were led by healthcare stocks …

The market’s gains in February were led by healthcare stocks, which reversed their previous poor performance as greater clarity emerged on reforms to the sector. Financial stocks also did well as talks of de-regulation and the easing of the strict control measures imposed after the financial crisis led the sector higher. The fund’s relative lack of exposure to both sectors hurt its performance: although it produced a positive return, it failed to keep up with the strong return from the S&P 500 index.

On a stock level, negatives included our holding in animal health company Zoetis, whose quarterly report failed to convince. Our holdings in the transportation sector also detracted, with low-cost airline Spirit Airlines and trucking company Swift Transportation both lagging. We believe that both companies still have huge potential. There is further scope for Spirit to use its advantages on cost to win market share while Swift will benefit from improved pricing and demand. Furthermore, its size should help it to withstand upcoming regulatory changes rather better than some of its smaller competitors.

On the positive side, holdings in financial data provider MSCI and holding group Leucadia both contributed. Meanwhile, selected short positions in telecom and retail contributed positively to performance. Liquidity is likely to contract as we see tightening from central banks over the balance of the year.

21 December 2016

Artemis US Extended Alpha Fund: Ready for higher interest rates …

Stephanie Sutton, investment director for Artemis’ US funds, discusses higher interest rates, the oil price and Trumponomics. All are providing opportunity for the Artemis US Extended Alpha Fund on both the long and the short side.

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.

Net sector exposure

Percentage growth (class I)

20162015201420132012
12 months to 31 December31.8%15.2%n/an/an/a
20172016201520142013
12 months to 28 February37.1%12.0%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 Extended Alpha Fund: Ready for higher interest rates …





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Risk warnings

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

The fund will use derivatives to meet its investment objective, to protect the value of the fund, to reduce costs and with the aim of profiting from falling prices.

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

Artemis Fund Managers Limited is entitled to a performance fee per share.

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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