Artemis Atlas Fund

Concentrated market neutral equity long/short strategy targeting long-term capital growth.

Investment risks

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. 

Derivatives risk: The fund may invest extensively in derivatives with the aim of profiting from falling (‘shorting’) as well as rising prices. Should the asset’s value vary in an unexpected way, the fund value will reduce. Refer to the investment policy in the fund's prospectus for further details on how derivatives may be used. 

Leverage risk: The fund may operate with a significant amount of leverage. Leverage occurs when the economic exposure created by the use of derivatives is greater than the amount invested. A leveraged portfolio may result in large fluctuations in its value and therefore entails a high degree of risk including the risk that losses may be substantial. 

Government and public securities risk: The fund may invest more than 35% of its value in transferable securities and money market instruments issued or guaranteed by the United Kingdom. Refer to the investment policy in the fund's prospectus for further details on how large exposures to government and public securities may be held. 

Counterparty risk: Investments such as derivatives are made using financial contracts with third parties. Those third parties may fail to meet their obligations to the fund due to events beyond the fund's control. The fund's value could fall because of loss of monies owed by the counterparty and/or the cost of replacement financial contracts. 

Investment objective

Investment objective	To achieve positive returns over three years, under all market conditions, by taking long and short positions in UK companies.  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.
Investment policy	What the fund invests in  The fund will gain exposure to shares in companies via extensive use of derivatives (complex financial instruments) to take both ‘long’ and ‘short’ positions in companies the Investment Manager believes will either rise in value (long positions) or fall in value (short positions) meaning the fund may benefit from either scenario.    Due to the fund’s extensive derivative usage, the fund will hold a significant proportion of its assets in cash and money market instruments.    The fund may also employ ‘leverage’ (so that the Fund can invest a greater amount than its actual value) when the Investment Manager has greater confidence in the opportunities available.    The fund may also invest in issuers and markets outside the UK and 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, including by taking long and short positions  to produce additional income or growth  for efficient portfolio management purposes to reduce risk and manage the fund efficiently.  to create leverage.
	Where the fund invests  The majority of the exposure to the long and short positions (in aggregate) will be to companies in the United Kingdom, including companies in other countries that are headquartered or have a significant part of their activities in the UK, the fund may also gain exposure to companies based in other countries.
	Industries the fund invests in  Any
	Other limitations specific to this fund  As the fund will predominantly gain exposure via derivatives, 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% depending on market conditions.
Investment strategy	The fund is actively managed.   The fund applies a long/short investment strategy taking ‘long’ and ‘short’ positions in companies the Investment Manager believes will rise in value (long positions) or fall in value (short positions). The fund employs a market neutral investment strategy. This means that the long exposure will typically be equal to the short exposure, meaning the market exposure will be neutral. 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.