Artemis Global Select Fund
Q3 2025 update

Fund objective

The fund’s objective is to grow capital over a five-year period. 

Note to investors 

From 6 October, the Artemis Global Select Fund was renamed the Artemis SmartGARP Global Smaller Companies Fund. The new strategy is managed by Raheel Altaf, with support from analyst Aalok Sathe. Visit the Fund changes for more information. 

Overview 

Over the past three months, global stockmarkets have built on the recovery momentum from the second quarter¹ following the shock of the tariffs announced on ‘Liberation Day’.  

Technology was the best performing sector over the quarter, as investors clambered for more exposure to beneficiaries of AI (artificial intelligence) investment, while traditionally defensive sectors such as healthcare and consumer staples lagged².  

AI investor enthusiasm broadened out from the US to encompass other regions, such as China³, which rallied during the quarter⁴.  

Interest rate cuts, including the first by the Federal Reserve (the US’s central bank) this year⁵, helped buoy investor sentiment. Lower interest rates are generally good for riskier assets such as shares as they make traditionally safer assets such as cash and government bonds look less attractive in comparison.  

Performance 

The Artemis Global Select Fund returned 7.8% in the quarter, compared with 9.5% from its first benchmark, the MSCI All Country World index⁶, and 6.8% from its peer group, the Investment Association Global sector⁷ average. 

For full five-year discrete performance, please see below.  

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.  

Negatives  

Two of the biggest relative detractors from performance were shares we either don’t own (Alphabet) or where we have a lower-than-average position compared with our benchmark (Apple).  

Alphabet rallied after the Department of Justice unexpectedly ruled it would not have to sell its Chrome web browser in its ongoing antitrust case⁸. However, our long-term thesis remains that Alphabet will be an AI ‘loser’.  

Apple also rose after it committed to a $100bn investment to build its US manufacturing programme⁹. However, our view is that there will be lower returns if Apple has to become an asset-intensive hardware business with a large manufacturing operation in the US.  

Positives 

The long-term structural story of growing travel demand in China and market share gains were reflected in Trip.com’s results¹⁰, with short-term fears concerning competition and excess spending on overseas expansion fading. This reaffirmed our investment thesis. 

Technology conglomerate Tencent delivered strong results¹¹, beating expectations on both the gaming and advertising sides of the business.  

Activity  

We bought Contemporary Amperex Technology (CATL), the world’s largest manufacturer of batteries for use in electric vehicles¹².  

Given the competitive advantages around the business and rising demand for electric vehicles, we believe CATL can deliver strong long-term growth while its valuation relative to profits could rise.  

We also bought Italian bank UniCredit which has exposure to several attractive economies across Europe, including Germany¹³, where we expect to see higher government spending feed through to better revenue growth opportunities.  

We exited food-delivery provider Meituan due to increased competition in the instant delivery sector which could hurt profits in the short term¹⁴.  

Issues over drug-pricing policy in the US¹⁵ led us to sell Danish pharmaceutical Novo Nordisk. We added to Swiss pharmaceutical Sandoz instead.