Artemis SmartGARP Global Emerging Markets Equity Fund
Q3 2025 update
Source for all information: Artemis as at 29 September 2025, unless otherwise stated.
CAPITAL AT RISK. All financial investments involve taking risk and the value of your investment may go down as well as up. This means your investment is not guaranteed and you may not get back as much as you put in. Any income from the investment is also likely to vary and cannot be guaranteed.
This is a marketing communication. Before making any final investment decisions, and to understand the investment risks involved, refer to the fund prospectus (or in the case of investment trusts, Investor Disclosure Document and Articles of Association), available in English, and KIID/KID, available in English and in your local language depending on local country registration, available in the literature library.
Fund objective
The fund’s objective is to grow capital over a five-year period.
Performance
Artemis SmartGARP Global Emerging Markets Equity returned 14.4% in the third quarter. Its first benchmark, the MSCI Emerging Markets1 index, rose 12.6%, while its second benchmark, the IA Global Emerging Markets2 sector average, gained 11.8%.
The fund is the best performer in its IA Global Emerging Markets sector over five and 10 years.
Discrete calendar-year performance
| 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|
| Artemis SmartGARP Global Emerging Markets Equity I Acc GBP | 14.5% | 12.3% | -5.2% | 15.8% | -0.4% |
| MSCI Emerging Markets NR GBP | 9.4% | 3.6% | -10.0% | -1.6% | 14.7% |
| IA Global Emerging Markets | 7.7% | 4.8% | -11.7% | 1.2% | 13.9% |
Past performance is not a guide to the future.
Source: Lipper Limited, class I accumulation units, to 30 September 2025. All figures show total returns with dividends and/or income reinvested, net of all charges. Performance does not take account of any costs incurred when investors buy or sell the fund. Returns may vary as a result of currency fluctuations if the investor's currency is different to that of the class. This class may have charges or a hedging approach different from those in the IA sector benchmark.
Contributors
Shares in commodity (natural resources) companies made the biggest positive contribution during the quarter. Refiner Tongling Nonferrous Metals3 and miner Grupo México4 rose as demand for copper outstripped supply5, pushing prices higher.
China also contributed. Sino Biopharmaceutical performed well, supported by government backing for healthcare innovation6. Car manufacturer Geely saw robust demand for electric vehicles (EVs)7. It has been winning share in the domestic EV market helped by subsidies and strong brand recognition8.
The performance of our technology companies was mixed. Samsung advanced on the back of strong demand for its servers (powerful computers providing services to a network of other computers) and signs of recovery in the memory cycle9.
Detractors
The largest relative detractors came from our underweight (a lower-than-average position compared with the benchmark) positions in mega-cap technology companies such as Taiwan Semiconductor Manufacturing Company (TSMC)10 and Tencent11.
Activity
We made gradual adjustments during the quarter:
- In Brazil, we added to Banco Bradesco and payments company Pagseguro Digital
- In China, we added to electrical appliance manufacturer Midea and pork producer Muyuan Foods
- We also increased our exposure to the copper mining, transportation and infrastructure conglomerate Grupo México and added to our position in Copa, Panama's flagship airline, as we expect regional air-travel demand to remain strong
A number of new positions reflected our focus on energy, including Bharat Petroleum in India, Adnoc Gas in Abu Dhabi and conglomerate Ultrapar in Brazil.
We reduced exposure to Alibaba, JD.com, Tencent, TSMC and Gree Electric and exited smaller positions in SK Telecom, logistics company Sinotrans and United Tractors.
Outlook
Emerging markets remain out of favour, but we believe the case for them is strengthening. Not only do they provide diversification for global investors away from the US12, but valuations remain cheap despite recent strong performance13.
Our fund is built differently to peers: it is concentrated in cheap companies that have strong balance sheets while analysts are on the whole upgrading profit forecasts14.
Notes and references
1The MSCI Emerging Markets (EM) NR GBP is a widely-used indicator of the performance of emerging markets stockmarkets, in which the fund invests. It acts as a ‘comparator benchmark’ against which the fund’s performance can be compared. Management of the fund is not restricted by this benchmark.
2IA Global Emerging Markets NR: A group of other asset managers’ funds that invest in similar asset types as this fund, collated by the Investment Association. It acts as a ‘comparator benchmark’ against which the fund’s performance can be compared. Management of the fund is not restricted by this benchmark.
4https://www.gmexico.com/GMDocs/Home/Eng/2nd_Quarter_2025_Report.pdf
5https://www.abc.net.au/news/2025-10-07/copper-supply-shortage-global-production-disruption/105852214
6https://www.sinobiopharm.com/userfiles/files/E25072517-Sino%20Bio-IR-PA.pdf
7https://autovista24.autovistagroup.com/news/chinese-brands-command-domestic-ev-market/
8https://autovista24.autovistagroup.com/news/chinese-brands-command-domestic-ev-market/
9https://images.samsung.com/is/content/samsung/assets/global/ir/docs/2025_2Q_conference_eng.pdf
10https://investor.tsmc.com/english/quarterly-results/2025/q2
12https://www.msci.com/documents/10199/8d97d244-4685-4200-a24c-3e2942e3adeb
13Goldman Sachs as at 27 September 2025
14Source: Morningstar/Artemis as at 31 August 2025
Risks specific to Artemis SmartGARP Global Emerging Markets Equity Fund
- Market volatility risk The value of the fund and any income from it can fall or rise because of movements in stockmarkets, currencies and interest rates, each of which can move irrationally and be affected unpredictably by diverse factors, including political and economic events.
- Currency risk The fund’s assets may be priced in currencies other than the fund base currency. Changes in currency exchange rates can therefore affect the fund's value.
- Charges from capital risk Where charges are taken wholly or partly out of a fund's capital, distributable income may be increased at the expense of capital, which may constrain or erode capital growth.
- Emerging markets risk Compared to more established economies, investments in emerging markets may be subject to greater volatility due to differences in generally accepted accounting principles, less governed standards or from economic or political instability. Under certain market conditions assets may be difficult to sell.
- China risk The fund can invest in China A-shares (shares traded on Chinese stock exchanges in Renminbi). There is a risk that the fund may suffer difficulties or delays in enforcing its rights in these shares, including title and assurance of ownership.
Important information
The intention of Artemis’ ‘investment insights’ articles is to present objective news, information, data and guidance on finance topics drawn from a diverse collection of sources. Content is not intended to provide tax, legal, insurance or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security or investment by Artemis or any third-party. Potential investors should consider the need for independent financial advice. Any research or analysis has been procured by Artemis for its own use and may be acted on in that connection. The contents of articles are based on sources of information believed to be reliable; however, save to the extent required by applicable law or regulations, no guarantee, warranty or representation is given as to its accuracy or completeness. Any forward-looking statements are based on Artemis’ current opinions, expectations and projections. Articles are provided to you only incidentally, and any opinions expressed are subject to change without notice. The source for all data is Artemis, unless stated otherwise. The value of an investment, and any income from it, can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.
