Artemis Launches 3 US Funds

FUND IN FOCUS: Artemis is launching three US equity funds, to be run by the management team acquired from Threadneedle earlier this year

Emma Wall 16 September, 2014 | 4:42PM
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Boutique asset manager Artemis is launching three new US long-only equity funds; the US Equity Fund, a more concentrated portfolio of stocks called the US Select Fund and a long/short US equities portfolio, the Artemis US Extended Alpha Fund.

There are plans to launch two more funds in due course, a US smaller companies fund and another long/short fund.

In April this year Artemis obtained Threadneedle’s US equities desk. Fund managers Cormac Weldon and Stephen Moore – along with five equity analysts – left Threadneedle after a combined history at the firm of more than 30 years, to set up an entirely new US equities desk in St James.

Artemis has undergone a significant expansion in the last three years, adding Global Income, European Opportunities and Global Select funds to their retail suite. Despite this growth, these five fund launches are at odds with the asset manager’s usual slow and steady approach – Artemis has launched 15 funds in the last 15 years. The firm is not expected to launch any more funds in the near future after the US suite is complete.

There are questions over the timing of the funds’ launch, as the US market has rallied significantly since the global recession and is currently trading near all-time highs.

But manager Weldon is says there are still opportunities to be had.

“Yes, some parts of the American market are looking fully valued,” he said. “But whether it’s from the revolution in shale oil and gas or from innovation in the tech sector, I am seeing just as many attractive investment opportunities in North America as I have throughout my 25-year career.”

The open-end funds' offer period will run until Monday September 22 at £1 a share.

Analyst’s Verdict

Morningstar analyst Oliver Kettlewell awarded the Artemis team a Bronze Rating when they were at Threadneedle.

He said: “Cormac Weldon and his team of analysts managed two of the biggest onshore US equity funds for over a decade at Threadneedle. We think the team has a good chance of replicating their success given that largely the same group of investors has moved across town to Artemis.

“The Artemis US Equity fund looks like being the equivalent of the Threadneedle American fund, whilst Artemis US Select fund appears similar to the Threadneedle American Select fund. Both funds will use the S&P 500 index as the benchmark, which is less appropriate for the Artemis US Select funds because it has an all-cap mandate. There is also a question mark over how quickly the team can settle down at Artemis.”

 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Artemis US Extended Alpha I Acc GBP4.20 GBP-1.26Rating
Artemis US Select I Acc GBP3.83 GBP-1.34Rating
CT American Retail Acc GBP5.67 GBP-1.25Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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