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Private investors

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
  • How to invest


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, 30 March 2017
Mid price (GBP acc shares)157.44p
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.

22 February 2016

US equities: In a (relatively) good position …

Investors in the US can feel (quietly) positive – as long as they avoid companies dependent on the health of the global economy. While the industrials sector and other exporters are holding back growth, a recession in the US is unlikely, Cormac tells Artemis’ Ross Leckie. That is why he and his colleagues are buying the dips – selectively.

 

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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US equities: In a (relatively) good position …





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About the fund

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

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

Highly regarded manager Cormac Weldon has many years' experience as a US equity manager. He uses the Artemis US equity team’s research skills, combining detailed stock-specific research with big-picture economic and market analysis.

  • Core US equity fund: provides diversified exposure to America's best large and medium-sized companies.
  • An eye on risk: the manager pays as much attention to evaluating potential risk as he does to investment opportunity.
  • Robust investment process: a tested, research-led investment process that aims to perform through ups and downs in the stockmarket and economy.
  • Experienced team: collectively, Artemis’ US equity team has 56 years’ experience. Lead manager Cormac Weldon has over 20 years’ experience.

Reasons to consider

The fund may be suitable for investors looking for:

  • a core US equities holding
  • investment in large and medium-sized companies
  • the potential for capital growth
  • an experienced fund manager with a good performance record

Introducing the fund

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

Risk considerations

Before making an investment, investors should consider the level of risk they’re comfortable taking with their money.

  • This fund invests mostly in larger and medium-sized American companies, primarily bigger, stable businesses. The manager carefully scrutinises companies before investing, looking for those that he believes will deliver good returns over the longer term.
  • Investors should be aware, though, that the usual risks of investing in shares apply. Companies and stockmarkets can go through periods of turbulence and the value of your investment can fall.
  • This fund’s ‘SRRI’ risk rating, a measure of how volatile the fund’s performance has been over time, is currently 5, in a range of 1 (lower risk) to 7 (higher risk).

More detailed information on fund risks is included in the ‘risk warnings’ section below.

Risk warnings

To ensure you understand whether this fund is suitable for you, please read the Key Investor Information Document, which is available, along with the fund’s Prospectus, from artemis.co.uk.

The value of any investment, and any income from it, can rise and fall with movements in stockmarkets, currencies and interest rates. These can move irrationally and can be affected unpredictably by diverse factors, including political and economic events. This could mean that you won’t get back the amount you originally invested.

The fund’s past performance should not be considered a guide to future returns.

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.

The historic yield reflects distribution payments declared by the fund over the previous year as a percentage of its mid-market unit/share price. It does not include any preliminary charge. Investors may be subject to tax on the distribution payments that they receive.

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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