The land of opportunity...

Fund Focus

The land of opportunity...

The US is the largest and most diverse market in the world. Its entrepreneurial spirit has seen it become home to some of the world's most innovative companies. Thanks to its large domestic consumer market, the US economy is less dependent on exports and more resilient to global downturns. Of course, like any market, it's not without its problems. Investors question whether the price of US companies' shares can keep rising. What it has in its favour is a President who - like him or not - is very supportive of US companies...

The impact of President Trump's tax cuts and incentives to increase companies' spending have only just begun to be recognised. The current (already long) economic cycle has been further prolonged and the expectation is that we should now see growth continuing into late 2020 or even into 2021. The longer the current economic recovery lasts, the more favourable it will be for US companies oriented to the domestic economy.

Artemis US Select Fund

For investors looking to access the potential for growth that America has to offer, the Artemis US Select Fund may be of interest. It's an actively managed fund, which means the fund's manager, Cormac Weldon, carefully chooses which shares to buy, and how many. Crucially, he also considers which shares to avoid. For how long can companies' share prices continue to rise? These are decisions that Cormac and his team actively make. The fund typically holds between 40 and 60 companies, small, medium and large. Cormac considers which stocks are appropriate for the current economic environment.

The Artemis US equity team has been working together for many years. Collectively, the members have around 80 years' experience. Lead manager Cormac Weldon has over 20 years' experience and has successfully invested in many market cycles.

Fund profile:

  • Invests in any North American company, no matter their size, wherever opportunities can be found.
  • The distinctive research-driven process uses many sources of information to generate diverse and, where possible, uncorrelated investment ideas.
  • The team consider not only by how much a share price could rise, but also how much it could fall. Only those where the potential reward significantly exceeds the potential loss make it into the fund.
  • Cormac Weldon is a seasoned fund manager with a robust investment philosophy. As an investor in the fund himself, his interests are closely aligned with that of holders in the fund.

To ensure you understand whether this fund is suitable for you, please read the Key Investor Information Document and Costs and Charges Information document, which are available, along with the fund's Prospectus, from 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 investments concentrated in a limited number of companies, industries or sectors. This can be more risky than holding a wider range of investments. 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 fund may invest a portion of its assets in a currency other than the fund's accounting currency (sterling). The value of these assets, and the income from them, may decrease if the currency falls in relation to sterling, in which the fund is valued and priced. 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.

Article posted 21 November 2018

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Elson Associates does not offer advice as to the suitability of investments. If you are unsure whether an investment is suitable for you, you should obtain expert advice. Past performance of an investment is not necessarily a guide to its performance in the future. The value of investments or income from them may go down as well as up. You may not necessarily get back the amount you invested.

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