Artemis

While the giant US tech stocks have dominated returns over recent years, the shares of smaller US companies have languished and are now trading at a discount to larger companies. We believe this represents a very attractive entry point to one of the world’s most vibrant economies.

Investors have tended to view emerging markets as a long-term growth asset. Yet improvements to balance sheets and changes to shareholder policies now mean that many EM companies are offering attractive dividend yields and enacting share buybacks. This creates opportunities for investors looking for income as well as growth.

UK equities may be out of favour with global asset allocators, but there is one set of investors who are snapping them up at a rate rarely, if ever, seen before.

Vital components used in consumer electronics and internet infrastructure could soon be in short supply, but demand could be about to rise. Will Warren, US equity manager, reveals how the team are playing this imbalance in their portfolios.

Historically, investors would access China through Western companies. Now, we are seeing the rise of domestic brands across a wide variety of industries, including electric vehicles. Raheel Altaf, emerging markets fund manager, explains why this should encourage investors who have not invested in emerging markets for some time to reconsider potentially outdated perceptions of the opportunity set in this arena.

Challenging macro conditions haven’t got in the way of a recent equity rally. Paras Anand, Chief Investment Officer at Artemis, reveals what has been propping up the market – and why the picture can continue to improve.

The UK has been out of favour among international investors ever since 2016’s referendum on membership of the EU. But Artemis’ fund managers think this could be the year that all changes.

Mark Niznik, manager of the Artemis UK Smaller Companies Fund, says that no one knows a business as well as the person running it, so it can be taken as a vote of confidence if they buy back its shares.

Natasha Ebtehadj, global equities fund manager, says that by investing billions of dollars in infrastructure, digitalising its finance system and reducing bureaucracy, India has overtaken China as investors’ favourite emerging market. But with valuations looking stretched, what is the best way to approach it?

Swetha Ramachandran of the Artemis Funds (Lux) – Leading Consumer Brands Fund says onerous rules around which whisky is allowed to call itself ‘Scotch’ ensure established producers won’t be undercut by competitors who scrimp on costs or shift production to regions where labour is cheap.

Living fast and dying young may help rock stars achieve legendary status, but these traits are much less appealing when exhibited by potential investments, according to Mark Niznik of the Artemis UK Smaller Companies Fund.

Global equities managers Alex Stanić, Natasha Ebtehadj and Swetha Ramachandran reveal where they expect to find the biggest investment opportunities in 2024 and how they plan to make the most of them.
 

With interest on cash so high and markets looking volatile, some investors may be tempted to put their spare money in a standard savings account. However, doing so could come with a severe long-term opportunity cost.

Artemis’ fixed income team share their three key messages for 2024.

1. Bonds of almost every variety are a ‘buy’
2. High-yield bonds are attractive under almost any economic scenario
3. Changing market conditions make taking an active, bottom-up approach to bond markets a necessity

Raheel Altaf, manager of the Artemis SmartGARP Global Emerging Markets Equity Fund, explains why he is overweight China despite the well-publicised risks, but underweight more ‘fashionable’ regions such as India and Taiwan.

Through share buybacks, some of the best companies in the UK market are delivering compound growth in their earnings per share – and so rewarding their patient shareholders.

Mark Niznik and William Tamworth talk about some of the reasons for the Artemis UK Smaller Companies Fund’s top-quartile returns this year, including takeover bids and the surprising resilience of the UK consumer.

At the start of the year, many analysts predicted a recovery in China could support the global economy. While the recovery has failed to materialise, Raheel Altaf, manager of the Artemis SmartGARP Global Emerging Markets Equity Fund, believes it may only be the timing of the prediction that was wrong.