Artemis

October 2024 marked 10 years of the Artemis US Smaller Companies Fund. Using their up/down framework and deep understanding of industry cycles, the managers seek to find the winners in sectors that are benefiting from domestic tailwinds.

Economic, political and market conditions have changed beyond recognition over the past 12 years, but the Artemis Monthly Distribution Fund’s straightforward multi-asset approach to delivering returns has remained consistent. We believe the returns it has produced speak for themselves.

While UK smaller companies have been in the doldrums for years, they could be among the biggest winners of international investors’ reappraisal of the UK domestic market. See if you can match Mark Niznik and William Tamworth’s in-depth knowledge of their portfolio holdings in the Artemis UK Smaller Companies Fund quiz.

Profit-taking by hedge funds and a rate hike by the Bank of Japan have done little to fundamentally change the outlook for the UK economy – and nothing to diminish the appeal of stocks exposed to UK consumer spending.

In this 6min video, Artemis’ Ambrose Faulks answers this question, talking tech, US vs Europe and the value to be found in UK consumer discretionary & financials

Nick Shenton says he and the rest of the Artemis Income team don’t “fall in love” with any of their holdings, which is why they would be unconcerned if any of them turned their back on their home market.

Why UK bank share prices should be higher

Nick Shenton, co-manager of the Artemis Income Fund, discusses the impact of unprecedented share buybacks and how this is leaving value on the table for patient shareholders.

Andy Marsh reveals how companies in the Artemis Income Fund, particularly housebuilders, are feeling post-election.

Philip Wolstencroft, manager of the Artemis SmartGARP® European Equity Fund, observes that over the long term, share prices follow the direction of companies’ profits. His investment approach is currently signalling value in European equities.

The general election may be dominating headlines in the financial pages, but Ed Legget says it is likely to have little impact on the UK market in the long term – while in the short term, economic stimulus is likely to come from other sources.

In such a feverish political atmosphere on both sides of the Atlantic, it can be tempting to make rash moves. Paras Anand says take a deep breath, turn off the news and leave your portfolios alone.

A key risk of investing in smaller companies is that they may be harder to sell at times than might be the case with larger, more established and better-known companies. This ‘liquidity’ risk is something that the managers of the Artemis UK Smaller Companies Fund give much attention to.

The government hopes that by providing additional tax breaks, the UK ISA will increase the capital available to domestic businesses. But Paras Anand says the main reason for Britons to invest more in the FTSE is their own prosperity.

Will Tamworth, co-manager of the Artemis UK Smaller Companies Fund, says the high level of M&A in UK small caps allows investors to reinvest the proceeds in under valued businesses for future returns.

Mark Niznik says the steady de-rating of smaller companies is not a sign of something breaking, but of valuations becoming stretched – and like a piece of elastic, they will eventually snap back.

With the world’s largest population and currently the fastest growing economy, India offers impressive growth characteristics. But this comes at a price. In Shiller P/E terms, India is the world’s most expensive stock market. Raheel Altaf explains where he is finding opportunities in India at a reasonable price.