Artemis SmartGARP Global Smaller Companies Fund
Q1 2026 update
Source for all information: Artemis as at 30 March 2026, 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.
A recent change to the fund
The fund’s name was changed to Artemis SmartGARP Global Smaller Companies from Artemis Global Select on 6 October 20251. Its strategy shifted to focus on smaller companies2 and it adopted the MSCI AC World Small Cap index as its benchmark3.
Performance
Despite the sudden outbreak of war in the Middle East, smaller companies across the globe had a relatively good quarter. With a return of 3.1% (in sterling terms), they beat the broader global market as measured by the MSCI AC World index4, which fell by 1.3%. Energy, utilities and technology stocks led, while consumer discretionary and consumer staples stocks lagged. On a country level, South Korea, Brazil and Taiwan all delivered double-digit returns, but India struggled5.
Although March saw share prices across global markets – including those of smaller companies – falling sharply in response to the conflict in Iran, the fund still generated a positive return of 6.8% over the quarter, ahead of the MSCI ACWI Small Cap index6.
Discrete annual calendar-year performance
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Artemis Global Select I Acc GBP* | 9.0% | 10.1% | 8.1% | -10.8% | 18.9% |
| MSCI AC World NR GBP5 | 13.9% | 19.6% | 15.3% | -8.1% | 19.6% |
| IA Global average | 10.3% | 12.7% | 12.5% | -11.1% | 18.2% |
Past performance is not a guide to the future.
Source: Lipper Limited to 31 December 2025 for class I Acc 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. Classes may have charges or a hedging approach different from those in the IA sector benchmark.
*The fund’s name was changed to Artemis SmartGARP Global Smaller Companies from Artemis Global Select on 6 October 2025
Contributors
From a regional standpoint, the fund enjoyed positive relative returns from its holdings in emerging markets, North America, Europe and Asia.
Holdings in energy stocks such as Par Pacific, DHT Holdings, Türkiye Petrol, DOF Group and HF Sinclair were beneficiaries of a sharp rise in the oil price and contributed to the fund's outperformance. Having a relatively low level of exposure to the consumer discretionary sector, which performed poorly, also helped.
The biggest contribution to returns, however, came from CF Industries, a fertiliser business based in the US. The sudden shortage in global fertiliser supplies caused by the conflict in Iran pushed prices higher7.
Detractors
On the detracting side, there was not a significant amount to note. The biggest negative was a holding in Hindustan Petroleum, an oil marketing company whose profitability was hampered, rather than helped, by higher oil prices. Other negatives included two of the holdings in the US: Macy’s, the retailer, and iA Financial, an insurer. Technology was the only sector in which the fund's holdings delivered notably negative returns. Its holdings in Japan were also marginally negative for relative returns.
Activity
We made a number of changes to the portfolio over the quarter. One of our largest new additions was GigaCloud, a US-based e-commerce company that helps retailers to buy and sell bulky items such as furniture, appliances and fitness equipment. Other additions included US payments-provider Prog Holdings and Avnet, which distributes electronic components worldwide. In Japan, meanwhile, we established a new holding in Suruga Bank.
In terms of sales, we exited our holdings in: Donaldson, a US-based provider of filtration and emission-control systems; Forterra, a UK-based supplier of building materials; Odontoprev, a Brazilian dental-plan provider; and German airline Lufthansa.
Positioning
Our preference for companies where SmartGARP has identified attractive valuations results in a portfolio that has little in common with either the index or its peers, many of which have a significantly higher allocation to the US. Around 33% of our portfolio is currently allocated to US-based companies versus 52% of the index. This is offset by having a significantly higher weighting to emerging markets (26% of our fund versus 14% of the index) and Japan (around 14% of our fund versus 11% of the index).
On a sector level, meanwhile, the fund has significantly more capital allocated to the basic resources and oil & gas sectors than the index and significantly less invested in healthcare and technology. As a result, we believe this fund offers something complementary to many investors' existing holdings, which are often biased towards the US, as well as something different to many other smaller company funds.
Notes and references
1. For more information about these changes, please see: https://www.artemisfunds.com/en-gb/individual/about/news/16095/Artemis_announces_plans_to_offer_global_smallcap_strategy/
2. Market capitalisation ('market cap') is the total value of a company, calculated by multiplying the number of shares in issue by its share price. Companies can be described as being 'mega-cap', 'large-cap', 'mid-cap', or 'small-cap' reflecting their market cap relative to other companies in the same market. The definition of a ‘smaller company’ varies from one market to another.
3. The MSCI AC World Small Cap Index is a widely used indicator of the performance of the global market for smaller companies, 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.
4. The MSCI All Country World Index is a widely-used indicator of the performance of global stockmarkets.
5. Source: FactSet, Artemis as at 31 March 2026.
6. Source: Lipper Limited/Artemis to 31 March 2026 for class I accumulation GBP. Past performance is not a guide to the future.
7. Financial Times, 14 March 2026, Iran war risks global food shock as fertiliser supplies cut.
Risks specific to Artemis SmartGARP Global Smaller Companies 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.
- Smaller companies risk Investing in small companies can involve more risk than investing in larger, more established companies. Shares in smaller companies may not be as easy to sell, which can cause difficulty in valuing those shares.
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.
