InvestmentsSep 24 2014

Review: Artemis US trio

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Artemis has launched a trio of North American funds, the US Equity and US Select, both managed by Cormac Weldon, and the US Extended Alpha, managed by Stephen Moore.

Benchmarked against the S&P 500 index, each fund carries a different objective. The US Equity fund will invest in 60 to 80 stocks, looking for diverse exposure to the best large- and medium-sized companies and looking for long-term capital returns. The US Select fund will invest in 40 to 60 companies, but will look to exploit opportunities across the market-cap spectrum.

The US Extended Alpha fund is designed differently, with a 150/50 style, combining a traditional long portfolio of US stocks and short positions, meaning the manager can use stockpicking choices to profit from market falls and rising share prices.

All funds carry a 0.75 per cent management fee.

www.artemis.co.uk

Comment:

This new range of funds – with two more expected to launch in the last quarter of the year – offers a huge variety of options for an investor.

Both Cormac Weldon and Stephen Moore joined the group earlier this year from Threadneedle where they proved a solid track record and a refined investment process over the past decade. Having both managers on board for this new fund range gives it huge kudos.

The US economic recovery was slightly derailed at the start of the year, seeing just a 0.1 per cent growth in GDP, much lower than expected, although it seems the slowdown may be just temporary as it looks set to see an upward growth throughout the rest of the year.

Despite slow growth, the S&P index has reached all-time highs and valuations across the board have been strengthening as the country is expecting improved earnings growth.

Although the US has traditionally been a difficult place for investors to see strong returns, both managers have demonstrated they can perform well in North America-specific active funds under different market cycles. The US economy is not yet out of the woods entirely and still has a long way to go. But for value investors looking for a long-term investment