Artemis Atlas Fund

To achieve positive returns over three years, under all market conditions, by taking long and short positions in companies in the UK and other developed markets. The fund aims to outperform the Bank of England ("BOE") base rate (net of fees) measured on an annualised basis over rolling three-year periods. There is no guarantee the fund will achieve a positive return over a three-year period or any other time period and your capital is at risk.

• The fund is actively managed.
• The fund applies a long/short investment strategy taking ‘long’ and ‘short’ positions in companies the manager believes will rise in value (long positions) or fall in value (short positions).
• The fund aims to employ a market neutral investment strategy. We define market neutral as having between -20% and +20% net exposure to equities.
• The fund may also employ ‘leverage’ whereby the absolute sum of its long and short positions could be greater than the fund’s net asset value.
• The manager derives ideas from a variety of information sources and multiple perspectives, prioritising non-consensus insights through both bottom-up and top-down approaches. The manager’s extensive experience, gained through numerous company meetings and visits, plays a crucial role in validating these ideas. Additionally, the manager's view on overarching themes that shape the global economy and their perspective on the UK market are significant components of the stock selection process.

• The manager applies in-depth, bottom-up analysis to examine and develop the investment case. Close attention is paid to cashflows: how much is generated, how it is used and what the returns are when it is re-invested.
• For long positions, the manager prefers companies which have demonstrated a long-term, sustainable and growing competitive advantage and a strong history of sustainable growth, capital allocation and cash generation. Critically, the manager seeks to identify stocks with valuations which are, in the manager’s opinion, overly conservative in relation to their peers, with the potential to provide attractive opportunities for a future re-rating.
• For short positions, the manager typically prefers companies which have high operational and/or financial leverage and are facing structural issues and negative earnings trends. The manager focuses on stocks where it believes that these challenges are not reflected in the valuation.

What the fund invests in

• The fund will gain exposure to shares in companies via extensive use of derivatives such as contracts for differences, futures, forwards, swaps and options (complex financial instruments) to take both ‘long’ and ‘short’ positions in companies the manager believes will either rise in value (long positions) or fall in value (short positions) meaning the fund may benefit from either scenario.
• The fund will make extensive use of derivatives to achieve exposure to underlying securities. As a result, the fund may hold up to 100% of its assets in cash and money market instruments.
• The fund may also invest in other asset classes and other funds (directly or indirectly). These assets include, but are not limited to, foreign currency, bonds, cash, near cash, other transferable securities, money market instruments and other funds (up to 10%) managed by Artemis and third-party funds.

Use of derivatives

The fund may use derivatives:

• for investment purposes to achieve the fund objective, by taking long and short positions
• to produce additional growth
• for efficient portfolio management purposes to reduce risk and manage the fund efficiently
• to create leverage.

Where the fund invests

• The majority (at least 51%) of the exposure to the long and short positions (in aggregate) will be to companies that are listed, incorporated, headquartered, or have a significant part of their activities in the United Kingdom.
• The fund may also invest up to 49% in companies listed, incorporated, or headquartered in other developed markets.

Industries the fund invests in

• Any

Other limitations specific to this fund

• The total derivatives (longs plus shorts) will typically lie in a range of +100% to +300% of net asset value.
• Net exposure (longs minus shorts) to companies will typically lie in the range of +20% to -20%.

Bank of England (BoE) base rate

BoE base rate is a measure of the interest rate at which the BoE, UK’s central bank, lends money to other banks. It is used as a way of estimating the amount of interest which could be earned by cash. It acts as a ‘target benchmark’ that the fund aims to outperform, on an annualised basis over rolling three-year periods. The manager believes that this is an appropriate objective for the fund given the investment policy of the fund and the approach taken by the manager when investing the fund’s portfolio. There is no guarantee that this objective will be achieved over any time period and actual investment returns may differ from this objective, particularly over shorter time periods.