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Private investors

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
  • 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, 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

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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