Artemis Funds (Lux) – SmartGARP Global Emerging Markets Ex China Equity

The Fund aims to increase the value of Shareholders’ investments primarily through capital growth over a five-year period. 

There is no guarantee that the fund will achieve a positive return over a five-year period or any other time period and your capital is at risk.

The Fund invests principally (at least 80% of its assets) in equities of companies that are listed, headquartered or that have a significant part of their activities in emerging market countries, excluding China with no restriction on economic areas. In this context, emerging market countries excluding China means countries included in the MSCI Emerging Markets Ex China Index and those countries included in the World Bank definition of developing economies excluding China, or those countries which are, in the Investment Manager’s opinion, developing countries.

The Fund may invest in small and mid-cap companies but there is no restriction or constraint to the Fund in terms of market capitalization.

A proprietary tool called ‘SmartGARP’ is used as the foundation of the investment process. It screens the financial characteristics of companies by identifying those that are growing faster than the market but are trading on lower valuations than the market. The Investment Manager selects companies that in aggregate have good ‘SmartGARP’ characteristics. This tends to mean that the portfolio contains stocks that have lower valuations than the market average, upgrades to profit forecasts, and are under-owned by the investment community, while at the same time benefiting from helpful trends in the wider economy.

The Fund will invest in equity securities directly or indirectly through instruments such as, but not limited to, ADRs and GDRs (both without or with embedded derivatives that have an underlying of assets that are eligible under the Law), participatory notes and contracts for difference.

Participatory notes and contracts for difference will be used for investment purposes in order to access markets where direct access to purchase equities may be difficult. Their use is not intended to create leverage. Investments in participatory notes and contracts for difference shall not exceed 20% of the Fund’s Net Asset Value.

The Fund may use derivatives and other techniques for hedging and for efficient portfolio management in addition to investment purposes. The Fund's derivatives may include, but are not limited to, futures and forward currency contracts.

Subject to the limits set out in the Investment Restrictions, the Fund may also hold ancillary liquid assets for treasury purposes.

Subject to the limits set out in the Investment Restrictions, the Fund may also invest in bank deposits, money market instruments and money market funds on in order to achieve its investment goals, for treasury purposes and in case of unfavourable market conditions.

The Fund may invest up to 10% of its Net Asset Value in other collective investment schemes.

The Fund may also hold up to 10% of its Net Asset Value in REITs.

Shares in the following types of companies (held either directly or indirectly via derivatives) are automatically excluded:

• Tobacco: companies which derive any revenue from tobacco production:
• Weapons: companies:
  • involved in the production of controversial weapons (including cluster munitions, landmines, biological and chemical weapons); or
  • which have an involvement in the manufacture or sale of civilian firearms or ammunition;
• Coal: companies which derive more than 5% revenue from mining or sale of thermal coal; or
• Companies that the Investment Manager determines to be in breach of the United Nations Global Compact principles on human rights, labour rights, the environment and anti-corruption.

The Fund promotes environmental and/or social characteristics within the meaning of Article 8 of SFDR. ‘SmartGARP’ also screens companies globally for Environmental, Social and Governance (ESG) characteristics. Beyond taking into consideration how companies score on the ‘SmartGARP’ ESG factor generally, the Investment Manager pays particular attention to companies’ current and expected carbon emissions, metrics such as Implied Temperature Rise (a forward-looking temperature alignment metric), and consideration of whether companies are adopting viable carbon transition plans. The Fund aims to have a reduction in carbon intensity, as measured by its Scope 1 and Scope 2 weighted average carbon intensity (tons of CO2e per million USD of sales) (“WACI”) over the long term (at least five years), although there may be periods where the Fund’s WACI may increase from time to time, therefore this might not be achieved on an ongoing basis.

Whilst the exclusions are binding on the selection of investments, the Investment Manager is not constrained by the results of the SmartGARP screening. The Investment Manager exercises discretion as to which securities are included in the portfolio, using both financial and ESG inputs from SmartGARP and the Investment Manager’s own analysis and assessment of financial and ESG factors.

More information about the environmental or social characteristics for this Fund is available in the pre-contractual disclosure for financial products referred to in Article 8 under SFDR which follow the Fund’s details and which form an integral part of this Prospectus. Further information is contained in a methodology statement available on the Artemis website at www.artemisfunds.com/methodology-statement. ment purposes in order to access markets where direct access to purchase equities may be difficult. Their use is not intended to create leverage. Investments in participatory notes and contracts for difference shall not exceed 20% of the fund’s Net Asset Value.
The fund may also use derivatives and other techniques for hedging and for efficient portfolio management in addition to investment purposes. The fund's derivatives may include, but are not limited to, futures and forward currency contracts.
Subject to the limits set out in the Investment Restrictions, the fund may also hold ancillary liquid assets for treasury purposes.
Subject to the limits set out in the Investment Restrictions, the fund may also invest in bank deposits, money market instruments and money market funds on in order to achieve its investment goals, for treasury purposes and in case of unfavourable market conditions.
The fund may invest up to 10% of its Net Asset Value in other collective investment schemes.
The fund may also hold up to 10% of its Net Asset Value in REITS.

MSCI EM ex China Index

The benchmark is a point of reference against which the performance of the Fund may be measured. Management of the Fund is not restricted by this benchmark. The deviation from the benchmark may be significant and the portfolio of the Fund may at times bear little or no resemblance to its benchmark.

The benchmark does not take into account environmental and/or social characteristics promoted by the Fund.