Artemis US Select Fund
Q1 2026 update
Source for all information: Artemis as at 30 March 2026, unless otherwise stated.
CAPITAL AT RISK. All financial investments involve taking risk and the value of your investment may go down as well as up. This means your investment is not guaranteed and you may not get back as much as you put in. Any income from the investment is also likely to vary and cannot be guaranteed.
This is a marketing communication. Before making any final investment decisions, and to understand the investment risks involved, refer to the fund prospectus (or in the case of investment trusts, Investor Disclosure Document and Articles of Association), available in English, and KIID/KID, available in English and in your local language depending on local country registration, available in the literature library.
Fund objective
The fund’s objective is to grow capital over a five-year period.
Market review
The US stockmarket made a strong start to this year, while large tech companies continued to invest in artificial intelligence (AI). US economic data remained resilient and the 'One Big Beautiful Bill' helped to drive consumer spending. The share prices of companies in a broad range of industries performed well, meaning that active managers such as ourselves had more opportunities to find winners.
This was followed by more uncertainty heading into March, as escalating geopolitical tensions in the Middle East fuelled a rise in oil prices, prompting renewed concerns around inflation.
Performance
The fund returned -6.1% during the first quarter versus -2.5% for its first benchmark, the S&P 500 index1. Due to the timing of pricing, these performance figures are substantially different from close of business (COB) numbers as they do not capture the market rally on 31 March. COB numbers show the fund returning -2.8% (net of fees).
Despite a weak first quarter, the fund’s performance over 12 months to the end of March was strong. It returned 21.2% versus 15.1% from the S&P 500 in sterling terms and 11.1% from its peer group and second benchmark, the IA North America sector2.
Discrete calendar-year performance
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Artemis US Select I Acc GBP | 10.0% | 29.5% | 21.8% | -14.9% | 22.7% |
| S&P 500 | 9.6% | 27.2% | 19.2% | -7.8% | 29.9% |
| IA North America sector average NR | 7.0% | 23.1% | 17.6% | -10.5% | 26.1% |
Past performance is not a guide to the future.
Source: Lipper Limited, class I accumulation units, to 31 December 2025. All figures show total returns with dividends and/or income reinvested, net of all charges. Performance does not take account of any costs incurred when investors buy or sell the fund. Returns may vary as a result of currency fluctuations if the investor's currency is different to that of the class.
*As at 31 Oct 24 the benchmark changed to S&P 500 GBP NTR (WHT [withholding tax] 15%). Returns up to 31 Oct 24 reflect those of the S&P 500 TR
Detractors
The fund had less exposure to oil & gas than its benchmark, which counted against it as the oil price spiked. The following shares also disappointed:
• Independent power producer Constellation Energy was affected by proposals to cap wholesale electricity prices3.
• E-commerce company Wayfair, which sells furniture, homewares and decor online, faced concerns about disruption from AI4.
• IQVIA, which provides clinical-research services and healthcare data to the life sciences industry, was also seen as under threat from AI5. However, we believe widespread disruption to the drug-development process is unlikely.
Contributors
Companies supplying products and services to AI data centres performed well:
• For GE Vernova, a manufacturer of power generation equipment, demand continued to outstrip supply6 .
• Seagate Technology, which supplies memory to data centres, reported strong results7 .
• Applied Materials, a semiconductor equipment and materials engineering company, benefited from an optimistic outlook due to demand from AI data centres8.
Bloom Energy also provides power solutions for data centres. Its solid oxide fuel cells offer power that is clean, efficient, always on and scalable. The company has announced major deals with data centre participants and operators, including Oracle Cloud Infrastructure9, Brookfield Asset Management10 and American Electric Power11.
Looking beyond the AI theme, ATI was also a strong performer. It produces specialty nickel and titanium alloys used in aerospace engines and airframes. Demand has increased for its products and maintenance services12.
Activity
We sold out of Microsoft and reduced our positions in Amazon and Alphabet because we believe there are more attractive opportunities elsewhere. We used the proceeds to increase our exposure to Broadcom, which we expect to benefit from AI data centre spending.
We initiated a position in Targa Resources, a midstream energy business active in transportation and storage in the US Permian Basin. The company is investing in a new NGL (natural gas liquids) pipeline and additional export facilities, which should accelerate its growth. We also added consumer goods company Procter & Gamble and regional bank Citizens Financial Group to the portfolio.
In terms of sectors, the fund has more exposure to industrials and healthcare than the S&P 500 index but we have been reducing our allocation to technology, consumer services and consumer discretionary companies.
Outlook
Uncertainty remains elevated, with the war in Iran, government borrowing and inflation continuing to influence interest-rate expectations. In this environment, we think larger companies remain relatively well positioned due to their scale, pricing power and balance-sheet strength. We are seeing signs of a gradual broadening in market leadership beyond the largest tech companies and, as a result, investment opportunities have become more widespread.
Notes and references
1. The S&P 500 NTR (net total return) WHT (withholding tax) 15% is a widely used indicator of the performance of 500 large publicly traded US companies, some of which the fund invests in. It acts as a ‘comparator benchmark’ against which the fund’s performance can be compared. Management of the fund is not restricted by this benchmark.
2. The IA North America sector NR (net return) is a group of other asset managers’ funds that invest in similar asset types as this fund, collated by the Investment Association. It acts as a ‘comparator benchmark’ against which the fund’s performance can be compared. Management of the fund is not restricted by this benchmark.
3. https://www.fool.com/investing/2026/01/20/why-constellation-energy-stock-tumbled-on-tuesday/
6. https://www.gevernova.com/news/press-releases/ge-vernova-reports-first-quarter-2026-financial
Risks specific to Artemis US Select Fund
- Market volatility risk The value of the fund and any income from it can fall or rise because of movements in stockmarkets, currencies and interest rates, each of which can move irrationally and be affected unpredictably by diverse factors, including political and economic events.
- Currency risk The fund’s assets may be priced in currencies other than the fund base currency. Changes in currency exchange rates can therefore affect the fund's value.
Important information
The intention of Artemis’ ‘investment insights’ articles is to present objective news, information, data and guidance on finance topics drawn from a diverse collection of sources. Content is not intended to provide tax, legal, insurance or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment by Artemis or any third-party. Potential investors should consider the need for independent financial advice. Any research or analysis has been procured by Artemis for its own use and may be acted on in that connection. The contents of articles are based on sources of information believed to be reliable; however, save to the extent required by applicable law or regulations, no guarantee, warranty or representation is given as to its accuracy or completeness. Any forward-looking statements are based on Artemis’ current opinions, expectations and projections. Articles are provided to you only incidentally, and any opinions expressed are subject to change without notice. The source for all data is Artemis, unless stated otherwise. The value of an investment, and any income from it, can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.
