Artemis Funds (Lux) – US Select
Q3 2025 update
Source for all information: Artemis as at 30 September 2025, unless otherwise stated.
Objective
Artemis Funds (Lux) – US Select is an actively managed fund. The fund invests principally in equities of companies that are listed, headquartered or that exercise the predominant part of their economic activities in the USA. Its objective is to increase the value of shareholders’ investments primarily through capital growth.
Review of the quarter to 30 September 2025
The third quarter of 2025 was another one of contrasts. Global markets advanced despite an unhelpful policy backdrop, with investors choosing to focus on moderating inflation and resilient growth. Meanwhile, the Federal Reserve cut interest rates to 4.00-4.25% after a run of weaker employment data. This shift provided a tailwind for equities, helping the large-cap S&P 500 index and the small-cap Russell 2000.
Long-end Treasury yields were broadly stable, while gold rallied 17% to a new record on safe-haven demand. The dollar stabilised after a torrid first half of the year.
The US administration extended and expanded tariffs, though new trade deals with the EU and Japan tempered fears of a wider escalation. Despite these crosscurrents, market tone remained constructive, supported by easing policy and better visibility on growth.
While risks persist, most notably around fiscal sustainability and the inflationary impact of tariffs, the broader picture remains one of resilience, with the US continuing to demonstrate relative economic strength.
The Russell 2000 index had a strong quarter, making 12.3% compared with 8.0% from the S&P 500. Cyclical sectors such as basic materials, energy and industrials drove returns, while consumer staples and financials lagged behind.
Artemis (Lux) US Select made 7.7% over the three-month period, marginally behind its S&P 500 benchmark but ahead of the 5.1% made by its US Large-Cap Growth Equity sector average.
| Three months | Six months | One year | Three years | Five years | |
| Artemis (Lux) US Select Fund | 7.7% | 25.4% | 14.0% | 85.1% | 83.0% |
| S&P 500 NTR | 8.0% | 19.7% | 17.1% | 94.1% | 113.3% |
| US Large-Cap Growth Equity average | 5.1% | 22.4% | 17.5% | 92.5% | 70.0% |
Past performance is not a guide to the future. Source: Lipper Limited/Artemis as at 30 September 2025 for class I Acc USD. 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 6 Aug 24 the benchmark changed to S&P 500 NTR (Standard). Returns up to 6 Aug 24 reflect those of the S&P 500 TR.
Fund 10-year discrete performance
| YTD | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
| Artemis (Lux) US Select Fund | 9.9% | 27.0% | 29.1% | -24.1% | 21.1% | 19.0% | 34.1% | n/a | n/a | n/a | n/a |
| S&P 500 NTR | 14.5% | 24.8% | 26.3% | -18.1% | 28.7% | 18.4% | 31.5% | n/a | n/a | n/a | n/a |
Past performance is not a guide to the future. Source: Lipper Limited/Artemis as at 30 September 2025 for class I Acc USD. 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 6 Aug 24 the benchmark changed to S&P 500 NTR (Standard). Returns up to 6 Aug 24 reflect those of the S&P 500 TR.
Negatives
Analogue chip producer Texas Instruments detracted from performance as semiconductor demand continued to normalise. Automotive volumes, historically a key profit engine, remained below trend. Although management noted incremental recovery signs, the broader analogue-semiconductor cycle remains weak. We reduced our holding until we see more evidence of a recovery.
Corteva Agriscience declined on falling sentiment and an uneven regional outlook. Management signalled that 2025 would mark a transition year, with growth moderating after a strong first half. The company guided to slower second-half momentum despite expectations for full-year improvement compared with 2024.
From a relative point of view, our underweight in Apple counted against us following better-than-expected uptake of the iPhone 17. We increased our position.
Another underweight position that counted against us was in Tesla. While the auto business is struggling, the end of electric vehicle tax credits pulled forward orders to Q3. We expect them to drop in Q4. Admittedly there are longer-term initiatives such as robotaxis and the Optimus robot (to help humans) that warrant having a small position.
Positives
Bloom Energy, the fuel-to-electricity converter, delivered another record quarter with 20% revenue growth and margin expansion to 26.7%. Meanwhile, management unveiled plans to double manufacturing capacity to 2GW by the end of 2026. Towards the end of July, it was announced Bloom is to provide power to Oracle Cloud Infrastructure data centres in the US.
Memory chip business Western Digital benefited from the data-storage cycle turning decisively upwards. Revenue of $2.6bn was up 30% year-over-year and gross margins expanded to 41%, buoyed by strong demand from AI-servers. The sustained pick-up in orders allowed the company to increase prices on all of its hard disk drives.
Comfort Systems, which supplies high-skilled labour for building systems, delivered another record quarter, with revenue up 20% and earnings per share (EPS) surging 75%. The acquisition of Right Way Plumbing and double-digit service growth supported diversification.
Seagate, a competitor to Western Digital, delivered fantastic revenue growth over the quarter, reflecting strong leverage from AI-driven data centre demand. Management cited capacity being “largely spoken for” through to mid-2026, signalling tight supply and pricing power.
Pharmaceutical AbbVie delivered another strong quarter, extending its remarkable recovery post-Humira patent expiry. Q2 results exceeded expectations with $15.4bn in revenue driven by exceptional growth from arthritis drugs Skyrizi and Rinvoq which are now set to exceed $25bn in combined 2025 sales.
Activity
We took profits in a range of names relating to AI, including Nvidia. We redeployed capital into higher-quality names such as home care provider Cardinal Health and bank JP Morgan Chase.
Sector-wise we are most overweight capital goods, semiconductors and financial services, with underweights in tech hardware (mainly Apple) and software, which we see as structurally challenged in the world of AI.
Outlook
As we enter the last quarter, there are tailwinds to US equities that lead us to be constructive on the outlook. The consumer remains healthy, Donald Trump’s One Big Beautiful Bill Act should begin to have an impact and a more supportive monetary environment should help sectors that have struggled under higher rates (such as mid and small caps). There is also continued momentum in spending around AI with very little sign of let-up. We remain vigilant against overexuberance in the market and are moving capital towards those areas where we see the most attractive risk/reward trade-off. This discipline should stand us in good stead as we close out the year.
Notes and references
Benchmark: S&P 500 NTR (Standard); 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.
FOR PROFESSIONAL INVESTORS AND/OR QUALIFIED INVESTORS AND/OR FINANCIAL INTERMEDIARIES ONLY. NOT FOR USE WITH OR BY PRIVATE INVESTORS.
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.
Risks specific to Artemis Funds (Lux) – US Focus
- 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.
- Concentration risk The fund may have investments concentrated in a limited number of holdings. This can be more risky than holding a wider range of investments.
- Charges from capital risk Where charges are taken wholly or partly out of a fund's capital, distributable income may be increased at the expense of capital, which may constrain or erode capital growth.
- ESG risk The fund may select, sell or exclude investments based on ESG criteria; this may lead to the fund underperforming the broader market or other funds that do not apply ESG criteria. If sold based on ESG criteria rather than solely on financial considerations, the price obtained might be lower than that which could have been obtained had the sale not been required.
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.
