Artemis Funds (Lux) – US Extended Alpha

To increase the value of Shareholders’ investments primarily through capital growth.

There is no guarantee that the fund will achieve a positive return over a five-year period or any other time period and your capital is at risk.

The Fund invests principally in equities and equity-related derivatives of companies that are listed, headquartered or that exercise the predominant  part of their economic activities in the USA.

Shares in the following types of companies (held either directly or indirectly via derivatives) are automatically excluded:

• Tobacco: companies which derive any revenue from tobacco production;
• Weapons: companies:
  • involved in the production of controversial weapons (including cluster munitions, landmines, biological and chemical weapons); or
    
  • which derive more than 10% revenue from manufacture or sale of civilian firearms or ammunition;
• Coal: companies which derive more than 5% revenue from mining or sale of thermal coal;
• Companies that the Investment Manager determines to be in breach of the United Nations Global Compact principles on human rights, labour rights, the environment and anti-corruption.

The Fund promotes environmental and/or social characteristics within the meaning of Article 8 of SFDR. The Investment Manager seeks to decrease the Fund’s exposure to climate risk and benefit from the opportunities associated with the transition to a net-zero emissions economy through investing in companies which are actively managing their carbon exposure and setting meaningful targets. Further information is contained in a methodology statement available on the Artemis website at www.artemisfunds.com/methodology-statement. The evaluation of environmental, social and governance factors is determined by the Investment Manager using information provided by the companies (for example company sustainability reports) and third-party data, focusing on scores and metrics which that the Investment Manager considers to be relevant.

The Fund makes use of derivatives for investment purposes to take both long and short positions in individual companies. At times, the Fund may also use equity index futures and/or options (long or short) in order to vary the level of volatility and/or market exposure in the Fund. Total derivatives (longs and shorts) are likely to represent a significant proportion of the Fund’s gross exposure to companies, which will typically lie in a range of 130-160% of Net Asset Value but which may potentially be as high as 200%. The Investment Manager uses derivatives to select stocks that may benefit from falling, as well as rising, share prices. However the Fund’s ability to have a gross exposure to companies of more than 100% of its Net Asset Value means that the Fund has the potential both to generate greater returns and to experience greater losses than if the Fund was restricted to a gross exposure of 100% of its Net Asset Value. The Fund’s net exposure to companies will typically lie in the range of 85- 110% (longs minus shorts) depending on market conditions.

At times the Fund may invest in China A-Shares through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. Investments in China A-shares shall not exceed 10% of the Fund’s Net Asset Value. The Fund may also use derivatives and other techniques for hedging and for efficient portfolio management. The Fund's derivatives may include, but are not limited to, contracts for difference, futures, options, swaps and forward currency contracts. A significant proportion of the Net Asset Value of the Fund will be held in cash due to the level of derivative use. Subject to the limits set out in the Investment Restrictions, the Fund may also hold ancillary liquid assets for treasury purposes. The Fund may invest up to 10% of its Net Asset Value in other collective investment schemes.

S&P 500 Index

The benchmark is a point of reference against which the performance of the fund may be measured. Management of the fund is not restricted by this benchmark. The deviation from the benchmark may be significant and the portfolio of the fund may at times bear little or no resemblance to its benchmark.