Artemis unveils launch of the Artemis Funds (Lux) – UK Select Fund

Artemis announces the upcoming launch of the Artemis Funds (Lux) - UK Select Fund, extending its acclaimed UK Select Fund into a Sicav-version. Jointly managed by Ed Legget and Ambrose Faulks, this new fund aims to provide investors with exposure to the UK stock market and capitalize on evolving market dynamics.

Fund Launch and Regulatory Approval

Artemis has secured approval from the Luxembourg regulator, the CSSF, for the launch of the Artemis Funds (Lux) - UK Select Fund, scheduled for April 29. The fund will be available for sale in key European markets including Germany, Italy, Austria, Luxembourg, Spain, and Switzerland, expanding Artemis' reach and accessibility to a broader investor base.

Manager Insights and Market Outlook

Co-managers Ed Legget and Ambrose Faulks, who have jointly managed the UK unit trust version of the UK Select Fund since December 2015, offer insights into the current market landscape and the rationale behind the launch of the Sicav-version.

They highlight the challenges faced by the UK stock market over the past decade, attributed to factors such as the market's bias towards capital and balance sheet-intensive businesses amidst low interest rates and quantitative easing. However, they express optimism regarding the changing dynamics, citing forecasts from the OBR and recent budgetary measures as supportive of the UK economy's outlook.

Legget and Faulks emphasize the compelling valuation opportunities available within the UK market, with many companies trading at significant discounts and offering attractive distribution yields. They anticipate increased M&A activity as confidence improves, further bolstering investment prospects.

The UK Select strategy, characterized by a focus on free cash flow and high active share, positions the fund well to capitalize on the potential for exceptional absolute and relative returns amidst the evolving market conditions.

Artemis' expansion into the Sicav-version of the UK Select Fund underscores its commitment to providing investors with diversified investment opportunities and leveraging the expertise of its seasoned portfolio management team to navigate dynamic market environments.

We are very pleased to announce the launch of Artemis UK Select into our SICAV fund umbrella, this launch is in response to an increasing number of our international clients wanting the ability to access our highly regarded UK equity capabilities.

Ed Legget and Ambrose Faulks have an outstanding long term track record and shown their ability to deliver high levels of alpha for clients over time. We’re delighted that we have been able to provide our clients with the ability to access UK Select following its launch into our Luxembourg fund umbrella.

The managers have consistently been more positive for the outlook for the UK economy than many of the last couple of years. Their patience in terms of buying into stocks at what they feel is the right price and then holding on until the value is recognised by the market has proved invaluable.

The proposed Sicav fund will be identical to the Artemis UK Select Fund, a unit trust, which seeks long-term capital growth by investing in a focused portfolio of 40 to 60 stocks without any regard to the benchmark’s composition, which is in the IA UK All Companies sector and has a benchmark of the FTSE All Share. 

Adam Gent, head of intermediated sales at Artemis