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Private investors

Artemis US Select Fund

All data as at 31 March 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, 21 April 2017
Mid price (GBP dist shares)136.87p
Mid price (GBP acc shares)154.05p
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

March was the first month since the presidential election in which the market seemed to struggle. Despite finishing the month only slightly lower, there were many consecutive days when the market fell. It also marked a reversal in performance for financials that had performed strongly but are now lagging the index. The Fed hiked interest rates - a widely-anticipated move which was already priced in.

As there are now question marks over whether economic growth will pick up, investors’ focus might shift to economic news.

The main news was the failure of the healthcare bill: Trump’s first attempt at reform. The withdrawal of the bill - while initially perceived as a negative - didn’t make a meaningful impact on the market. But it does raise questions about how many of Trump’s planned policies will get passed. While this might allow the tax reforms to be tackled more quickly, it could potentially impair how extensive these will be, as the expected savings from the healthcare reforms won’t be available to help to fund the tax cuts.

The fund underperformed the market slightly. On the negative side, a poor month for energy and financials affected our holdings in both sectors. On the positive side, technology stocks had another good month and the fund’s exposure to the sector - and specifically to semi-conductors and semi-conductor equipment companies - was helpful: Lam Research, Applied Materials, Micron and Advanced Energy Industries all featured in the top contributors. Our exposure to makers of videogames also contributed positively. Having taken some profits in Take-Two Interactive, we added to our position in Activision Blizzard (the maker of Call of Duty and World of Warcraft) and the fund’s performance benefited from both.

In activity, we reduced some of our holdings in financials as the sector had performed so well over previous months. We also cut some of our positions in software and services.

As there are now question marks over whether economic growth will pick up, investors’ focus might shift to economic news. The increase in confidence was based on hope rather than reality and the failure of Trump to accomplish much in his first few months in office might now result in more scepticism: the market might need further proof before it can move higher.

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 March 2017

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

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

Asset allocation

Asset allocation

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

Percentage growth (class I)

20172016201520142013
12 months to 31 March30.8%4.8%n/an/an/a
20172016201520142013
12 months to 31 March30.8%4.8%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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