Artemis US Select Fund
Q2 2026 update
Source for all information: Artemis as at 29 June 2026, unless otherwise stated.
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.
The fund’s objective is to grow capital over a five-year period.
Market review
The US stockmarket rose strongly in the second quarter as investors appeared to look beyond uncertainty in the Middle East and focus instead on the strength of the economy. An interim agreement between the US and Iran reduced concerns about high energy prices and Brent crude oil recorded its largest quarterly fall since the Covid pandemic1. As fears of weak growth and high inflation faded, the S&P 500 delivered its strongest quarterly return since 20202.
Technology companies led the market as large firms continued to invest heavily in artificial intelligence (AI) infrastructure. This spending supported semiconductor and memory companies. Strong economic data and improving company profits also helped a wider range of businesses. The US Federal Reserve signalled that it could keep interest rates higher for longer because the labour market remains strong, but investors took confidence from the economy and company earnings.
Performance
The fund returned 31.4% during the second quarter, compared with 14.4% for its first benchmark, the S&P 500 index3, and 15.3% from its second benchmark, the IA North America sector4. Individual company selection was the key driver of returns.
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
Contributors
Companies that supply chips, memory and equipment for AI data centres performed well:
- Micron Technology and Seagate benefited from growing demand for data storage and a tighter supply of memory.
- Advanced Micro Devices (AMD), a semiconductor company, benefited from continued investment in AI infrastructure.
- Lam Research and Applied Materials, which make equipment used to manufacture computer chips, also performed well.
Detractors
The following positions held back returns:
- Investors sold shares in Amazon as they moved away from large technology companies that invest heavily in AI and towards their suppliers. We still favour Amazon because it makes its own CPUs (computer processing units), has substantial computing capacity through Amazon Web Services and continues to gain market share in retail. We added to the holding.
- Primoris Services, which provides construction and engineering services, reported that profits were well below expectations5. We sold the holding and the shares fell further after our sale.
- Walmart, the US retailer, slightly lowered its profit forecast for the second quarter and gave a more cautious outlook for the rest of the year6. We believe its long-term strengths remain in place and expect concerns about consumer spending to ease as tensions in the Middle East decline.
- The fund owned less Intel than the S&P 500 (an underweight position), which hurt relative returns when the chipmaker's shares rose.
Activity
We took some profits from Advanced Micro Devices and invested the proceeds in MongoDB, a database software company. MongoDB's shares had fallen because investors feared AI would disrupt its business. We think the company can use AI to improve its products.
Our hyperscaler (companies that provide massive cloud computing and data centre infrastructure services) exposure is evolving. As mentioned, we added to Amazon but reduced our positions in Meta and Apple because we believe the online retailer holds a stronger position in the development of AI.
We also bought UnitedHealth, because its shares look attractively valued and we expect its profits to recover.
Compared with the S&P 500, the fund has more exposure to industrials and healthcare and less exposure to communication services and technology.
Outlook
Investors now appear to be focusing less on the Middle East and more on the strength of the US economy and the path of interest rates. While higher bond yields7 may continue to create periods of volatility, the fragile ceasefire in the Middle East has seen these retreat and oil prices move lower. US consumer demand and business investment remain resilient, while the manufacturing sector has started to grow after almost three years of contraction8. Profit forecasts have also improved across a wider range of companies.
Large technology companies continue to invest heavily in AI infrastructure, so we see opportunities in businesses that provide the hardware, software and services behind it. However, AI does not determine all our decisions. We continue to select companies individually and focus on businesses with strong finances and long-term (periods of at least five years) growth prospects across a range of industries.
Notes and references
2. Lipper Limited, total return, dollars, to 30 June 2026
3. 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.
4. 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.
5. https://ir.prim.com/news-and-events/news-releases/2026/06-22-2026-210520328
7. Bond yields refer to the income paid by bonds, expressed as a percentage of their price. Yields have an inverse relationship with prices.
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.
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.
