Artemis Global Income Fund
Q3 2025 update

Fund objective

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

Review 

Stockmarkets posted strong returns in the third quarter¹, with artificial intelligence (AI) and the largest US technology companies drawing the majority of investor attention².  

Capital expenditure and various investment commitments have accelerated to such an extent that OpenAI has now signed more than $1trn worth of AI-related deals in 2025 thus far³.  

It follows that technology was the best performing sector over the quarter (the MSCI ACWI Technology index climbed 15% in sterling terms)⁴.  

Away from the limelight, however, it was Chinese equities that posted the strongest returns, with the CSI 300 gaining more than 22% in sterling terms⁵. Like in the US, it was the technology sector that led – with the Hang Seng Technology index gaining 25%⁶. It appears to us that China is finally shaking the long-held tag of being ‘uninvestable’ and optimism around AI is beginning to feed into the shares of Chinese technology giants too. 

There was a strong rally in gold, which gained 17% versus the dollar in the third quarter⁷ and in early October breached $4,000/oz for the first time⁸. 

Performance 

The fund continues to deliver, returning 13.4% during the quarter compared with 9.5% from its first benchmark, the MSCI AC World index⁹, and 5% for its second benchmark, the IA Global Equity Income sector average¹⁰. 

 Discrete calendar year performance

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. 

Positives  

Our investments in banks, electrical equipment and metals & mining contributed most to returns over the quarter, while in terms of regions, our holdings in Europe and emerging markets did the best. 

Miner Kinross Gold was our best performing share. The extraction of gold is a very energy-intensive process, so the lower oil price¹¹ helped Kinross and fellow gold producer Agnico Eagle. 

Shares in the world’s largest battery producer¹² Contemporary Amperex Technology (CATL) rose significantly, partly due to rising demand from western auto manufacturers¹³. 

Korea’s Hanwha Aerospace reported impressive results¹⁴. Italy’s Banco BPM and Spain’s Banco de Sabadell were also among our top 10 contributors.  

Negatives  

Not owning much technology was the most meaningful detractor. The likes of Nvidia and Microsoft – which did well over the quarter – are difficult for us to own, given their high valuations, low dividend yields and our preference for less well-owned shares. 

Of the companies we do own, Freeport-McMoRan was the biggest single detractor after a mudflow at its Grasberg copper mine cut production¹⁵. Our investment thesis here was based on Freeport’s exposure to gold and copper but the negative news around Grasberg led us to sell out of the shares in mid-September. 

Activity 

We have decided to de-risk our portfolio and as part of this move we have bought more healthcare to reflect low share prices in the sector¹⁶. We have also been adding to emerging markets, which have historically benefited from falling US interest rates and a weaker dollar¹⁷.  

South Korea now accounts for about 10% of the fund, reflecting its status as one of the best performing equity markets globally year-to-date¹⁸.  

We added US oil major Chevron as its purchase of oil & gas infrastructure company Hess Midstream gives it access to the Stabroek oil field off the coast of Guyana which holds about 11 billion discovered barrels¹⁹. 

Outlook  

We feel that stockmarkets are becoming reliant on the single theme of artificial intelligence (AI) so we have taken steps to reduce risk in recent months. 

Our approach – being nimble and flexible, while refusing to be wedded to a single style of investing or type of share – can, in our view, prove its worth in times like these when there is so much upheaval and uncertainty in stockmarkets. We remain positioned in areas not so popular with other investors.