ArtemisSmartGARP European Equity Fund
Q3 2025 update
Source for all information: Artemis as at 29 September 2025, unless otherwise stated.
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.
The fund’s objective is to grow capital over a five-year period.
Performance
The Artemis SmartGARP European Equity Fund had a good quarter, returning 7.5% compared with 5.1% from its first benchmark, the FTSE World Europe ex UK index1, and 2.6% from its second benchmark, the IA Europe Excluding UK sector average2.
Over the past five years, the fund is up 164.5% while the index is up 70.8%. We do not think investors should take profits from their investments – in our opinion, the stockmarket looks to offer good value, inflation is not a major issue3 and there is no sign that profits are heading south.
Our SmartGARP software tool uses financial data to find companies that are cheaper than the broader stockmarket, even though their profits are rising faster. As a result, the companies within our fund should be trading on lower valuations than the broad universe of European shares and that is indeed the case4.
| 2024 | 2023 | 2022 | 2021 | 2020 | |
| Artemis SmartGARP European Equity I Acc GBP | 16.4% | 15.1% | 2.0% | 19.5% | -5.6% |
| MSCI AC World NR GBP | 3.0% | 15.7% | -7.0% | 17.4% | 8.6% |
| IA Global sector average | 1.5% | 13.5% | -9.2% | 15.7% | 10.7% |
Past performance is not a guide to the future.
Source: Lipper Limited/Artemis to 30 September 2025 for class I distribution units, GBP. 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.
Activity
We started the year overweight (a higher-than-average position compared with the benchmark) shares in banking, insurance and construction industries. Following strong performance, we sold shares in the construction companies Bilfinger, Heidelberg Materials and Buzzi over the last three months as we felt they had begun to look expensive.
These profits were recycled into healthcare companies. We had been underweight (a lower-than-average position compared with the benchmark) this sector, which helped performance as it fell4 over the quarter. However, following the fall in share prices, we now feel they offer good value and have added to our positions in Novartis, Lundbeck and Ipsen and invested for the first time in antibody therapeutics developer Genmab.
The fund remains focused on shares that we believe are cheap and growing faster than the market.
Outlook
Our conviction is in factors rather than individual companies: we want to own those with good financial characteristics (such as low valuations and fast profit growth). If the data changes, we change our holdings.
Given that our process still seems to alight on companies that are cheaper than the market yet delivering superior growth, my belief is that we should continue to beat the market.
Notes and references
2. The IA Europe Excluding UK sector is 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.
3. Artemis/Factset to 30 September 2025
4. Bloomberg to 30 September
Risks specific to Artemis SmartGARP European 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.
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.
