Artemis US Smaller Companies Fund

America is home to a huge number of the world’s most innovative, entrepreneurial and fastest-growing small companies. Smaller companies tend to be researched by fewer financial analysts compared to larger companies. This means that experienced managers can conduct their own detailed research and potentially identify the leaders of tomorrow before other investors recognise the companies’ potential.

Shares in smaller companies do, however, carry more risk than larger, more established companies because they are often more volatile and can harder to sell. In addition, information for determining the value of smaller companies – and the risks that owning them entails – can be harder to obtain. As with all investments, the overall value of the fund may fall as well as rise with movements in stockmarkets or owing to diverse factors specific to individual companies. This could mean investors may not get back the amount they originally invested.

• A relatively small yet diversified portfolio: the fund typically holds around 40 to 60 shares whose stockmarket value is mostly below US$10 billion. This helps to ensure that the fund is focused on a select list of companies but that it also holds a sufficient breadth of shares. This diversification can help to mitigate the higher levels of volatility in share prices seen in smaller companies.
• Broad opportunity: to help him seek long-term returns, manager Cormac Weldon is free to select from a range of more than 2,000 shares wherever he identifies opportunities.
• ESG factors are analysed alongside other factors in the assessment of each stock. This means assessment of high-level ESG risks and opportunities which may influence the general market or industry, and also stock-specific considerations. The team structure and specialism means that,  generally, ESG factors are considered initially from an industry perspective and then on a company-specific basis.
• Experience: Cormac has managed US equity portfolios in all manner of market conditions. His judgement underpins the fund as he seeks to navigate changes in the economic and market environment.