Artemis UK Select I Acc
Why is this fund on our radar?
Artemis UK Select is a high-conviction, active fund designed to capture the best long-term opportunities across the UK market. Managed by Ed Legget and Ambrose Faulks, the fund holds 40–50 of their best ideas, entirely unconstrained by benchmark weightings, meaning the portfolio looks markedly different to indexes like the FTSE All Share. This makes it particularly appealing to investors seeking a genuinely active, conviction-led approach to UK equities, or those looking for differentiated exposure to the UK within a broader, growth-heavy portfolio.
The managers’ approach is pragmatic and based on company fundamentals, with no allegiance to style or sector. They emphasise valuation but balance this with a focus on resilient earnings, favouring businesses with strong cash generation, disciplined management and robust fundamentals. They are prepared to back unloved areas of the market where they see a compelling risk/reward outlook, even if that brings short-term volatility. Additionally, the ability to ‘short’ a stock, effectively profiting when its price falls, gives the managers another tool to grow your investment, even when parts of the market are under pressure
What earned the fund a place on our list is the consistency of process and strength of stock-picking. Over time, the managers have generated strong alpha – adding value beyond the broader market – supported by a strong batting average, meaning their fund has outperformed in a high percentage of periods. Their active, differentiated approach can bring higher volatility, but the fund has shown that returns have generally been achieved without exposing investors to excessive downside risk.
Skip to Our VerdictPerformance
The fund has delivered strong risk-adjusted returns since inception, and under the current managers who have led since 2015. Over the past decade to October 2025, it has achieved annualised returns of around 11.1%, comfortably ahead of both the FTSE All-Share’s 8% and the IA UK All Companies sector’s average of 6.2%. This outperformance reflects the managers’ ability to compound returns through disciplined stock selection, taking high-conviction, benchmark-agnostic positions in what they believe are the very best opportunities for long-term total return. Whilst not an explicit objective, returns have been achieved without taking on excessive downside risk, even if day-to-day volatility has been a little higher than peers.
Over the last five years, this high-conviction, bottom-up stock picking approach has driven significant outperformance, with the fund returning 162.0%, ahead of the FTSE All-Share’s return of 98.2%, represented by an equivalent ETF below, and well ahead of the sector’s average return of 67.8%.
five-year performance
Past performance is not a reliable indicator of future results
That said, the fund is not immune to underperformance. 2022 was particularly challenging with the fund materially lagging the index amid soaring inflation, political instability and the sharp de-rating of some of its holdings. During this time rates were starting to climb, a typical tailwind for banks, an area well represented in the fund. However, they had not yet seen the benefit.
Since then, the rebound has been emphatic, particularly over the last 12 months, with the fund returning 31.5%, significantly ahead of both the FTSE All-Share and the IA sector. Notable contributors included IAG and Jet2, which rallied on stronger demand and robust execution, whilst Rolls-Royce and Standard Chartered also delivered strongly, the former on rising European defence spending, the latter from higher-for-longer rates supporting profits, dividends and buybacks.
Portfolio
The managers employ a high-conviction approach based on individual company research, investing in what they consider the very best ideas for long-term total return. The result is a portfolio that holds a focussed list of 40–50 stocks, constructed without reference to index weightings, making it look very different to the FTSE All-Share. The managers can back opportunities across the spectrum – including large or smaller companies. Whilst the portfolio remains predominantly large-cap, small- and mid-cap stocks now make up almost 20%, reflecting the increasing number of opportunities they are finding, backed by compelling valuations and long-term growth potential.
Position sizes reflect the managers’ conviction and the balance of risk versus reward, whilst selective short positions, currently around 1.4% of the portfolio, provide additional return potential and help differentiate the fund from other UK equity funds. The resulting portfolio is concentrated but genuinely active with sector exposures being a by-product of the managers’ bottom-up process. At present, financials make up roughly 41%, spanning banks, insurers, and specialised finance, followed by consumer discretionary and industrials. Underweights in sectors like energy and real estate simply reflect fewer opportunities meeting the team’s criteria for valuation, quality and long-term potential, rather than an intentional sector tilt.
sector allocation
Source: Artemis
Given recent market volatility, the managers have made some changes on valuation grounds, topping up existing holdings or initiating positions in new companies. For instance, they increased their holding in Marks & Spencer, now a top-ten position, encouraged by management’s focus on streamlining operations. They also participated in Rosebank Industries’ capital raise, backing a management group with a strong track record. Elsewhere, they rotated exposure within banks, moving from NatWest into Lloyds, where the regulatory backdrop on motor finance has improved and because they believe Lloyds’ shares appear meaningfully cheaper relative to projected earnings over the next two to three years.
Our Verdict
The UK market has been unloved for years, weighed down by economic and political uncertainty, lacklustre growth, and the dominance of US tech. Yet many UK businesses remain fundamentally strong and now trade on historically low valuations, creating opportunities for investors. For those seeking a genuinely active route into this potential, we think Artemis UK Select could be a compelling choice.
The managers target companies they believe can deliver the very best long-term total returns, building a concentrated, market-index agnostic portfolio. Freed from market-cap bias, the fund can invest across the spectrum, including a modest allocation to small- and mid-cap stocks. It can also take a small number of short positions, which lets the managers potentially profit when certain share prices fall, something most peers don’t offer. The fund can experience higher volatility due to its conviction-led positioning but has shown resilience in various types of market. Overall, we think Artemis UK Select provides differentiated, concentrated UK exposure, making it a strong complement to a broader global portfolio.
Key Risks
- Low dividend yield compared to the market so might not appeal for high-income seeking investors
- Concentrated, high-conviction portfolio can add risk
- Although small, the fund’s allocation shorts can introduce additional risk
