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Private investors

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
  • 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, 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

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 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.

Aiming to maximise long-term returns, Cormac is free to select stocks wherever he finds opportunity across the spectrum of company sizes. The fund’s holdings – typically 40 to 60 companies – bear little relation to the S&P 500 index. Some of its holdings will be in smaller or less mature companies which the manager believes to have superior long-term growth potential.

Reasons to consider

The fund may be suitable for investors looking for:

  • a ‘best ideas’ US equity fund, where the manager is free to select stocks wherever he finds opportunity.
  • an investment approach that takes more risk for potentially higher returns. 
  • investment in companies across a range of sizes

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 in a relatively small number of high-quality American companies, primarily substantial stable businesses. The manager carefully scrutinises companies before investing, looking for those that will deliver good returns from long-term growth trends. This fund's policy of investing in a small number of companies can involve more risk than spreading investments over a larger number of companies.
  • The fund may also invest in smaller and more recently established companies. These types of businesses can be more vulnerable to financial or operational failure.
  • Investors should also be aware 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 6, 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 fund may have a concentrated portfolio of investments. This can be more risky than spreading investments over a larger number of companies.

The fund may invest in the shares of small and medium-sized companies. Shares in smaller companies carry more risk than larger, more established companies because they are often more volatile and, under some circumstances, harder to sell. In addition, information for reliably determining the value of smaller companies – and the risks that owning them entails – can be harder to come by.

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

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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