Artemis Global Income 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 both income and capital over a five-year period.
Overview
Global stockmarket indices hit new all-time highs in the first two months of 20261. This advance, however, came to a sudden halt at the end of February, when President Trump announced that major combat operations in Iran had begun. The US-Israeli campaign and Iran's strikes on energy infrastructure around the Gulf resulted in the price of crude oil rising by 60% in March2. This sudden increase in energy prices sparked worries about inflation, so hopes of interest-rate cuts faded3. Investors responded to the uncertainty by selling their holdings in those companies that had performed best through the first two months of 2026.
Performance
The fund made a strong start to the year. By the end of February, it had returned 18.4% versus just 4.3% from its first benchmark, the MSCI AC World Index4. And although the fund fell by 9.4% in March and so gave back a portion of its earlier outperformance, it nonetheless ended the quarter 7.2% higher versus declines of 1.3% in the index and of 0.6% in its second benchmark, the IA Global Equity Income sector5.
Discrete calendar-year performance
| 2025 | 2024 | 2023 | 2022 | 2021 | |
| Artemis Global Income I Inc GBP | 45.2% | 26.8% | 9.7% | -2.5% | 26.5% |
| MSCI AC World NR GBP | 13.9% | 19.6% | 15.3% | -8.1% | 19.6% |
| IA Global Equity Income average | 12.5% | 11.2% | 9.9% | -1.4% | 19.2% |
Past performance is not a guide to the future.
Source: Lipper Limited, class I accumulation units, to 31 December 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.
Positives
The fund enjoyed particularly strong contributions from two of its holdings in South Korea: Samsung Electronics and Hyundai Motors. Strong demand for memory chips continued to feed through to higher prices and rising profits for Samsung Electronics6. Hyundai, meanwhile, was a beneficiary of mounting excitement over robotics. It owns a 25% stake in Boston Dynamics, which designed Atlas, a humanoid robot primed for commercial production7.
The vast AI data centres being constructed around the world will consume enormous quantities of electricity8. As producers of gas-fired power turbines, Siemens Energy and Dongfang Electric are direct beneficiaries of that demand. Their shares rose sharply through the quarter.
Investors' increasing enthusiasm for so-called 'hard' assets (tangible, physical resources such as commodities) was reflected in strong returns from the fund's investments in companies that extract and process a range of raw materials, including copper (Grupo México), gold (Kinross Gold and Endeavour Mining) and uranium (Kazatomprom).
Negatives
The biggest negative for the fund's returns relative to the index over the quarter was that it did not invest in three large semiconductor companies: TSMC, SK Hynix and Micron. Shares in all three posted strong gains as large US technology companies announced they would accelerate their investments in AI data centres, pointing towards strong demand – and potentially higher pricing – for the memory chips they produce9.
Activity
We began to add to the fund's holdings in the energy sector in late 2025. That process continued through the quarter and, by the end of March, energy stocks accounted for 14% of the fund. This gave it some protection when oil prices surged higher in March (share prices of energy companies tend to rise when the prices of crude oil and natural gas move higher). We also added to what we refer to as the fund's income-generating 'core'. Here, we invest in companies that pay high and reliable dividends in areas such as pharmaceuticals and telecoms. These now account for 30% of the fund's investments.
Most of the sales we made over the quarter fell into one of three areas: banks, life insurers and companies that are viewed as the beneficiaries of the wave of investment in AI data centres, where it seemed prudent to lock in some of the profits the fund has made.
Outlook
In selecting our investments, we continue to refer to a framework we use to describe the 'regime change' we see taking place in the global economy and financial markets. Some of the dynamics it highlights have intensified in recent months:
• Inflation and interest rates now seem likely to remain higher and more volatile.
• With President Trump hinting he could withdraw the US from Nato, and amid Iranian strikes on its neighbours, defence spending seems likely to increase.
At a time of heightened political and economic uncertainty, it seems prudent to have a portfolio that is well diversified geographically. The fund has holdings in companies listed in 22 countries and 14 currencies.
Notes and references
1. Reuters 10 February 2026 – Stocks mixed but world index hits record high.
2. Financial Times 31 March 2026 – Oil soars 60% in March as Iran war chokes global energy supplies.
3. Financial Times 20 March 2026 – Investors start to bet on US interest rate rises amid inflation fears.
4. Source: Artemis/Lipper to 31 March 2026. The MSCI AC World Index is a widely used indicator of the performance of global 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.
5. The Investment Association (IA) Global Equity Income 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.
6. Bloomberg 19 February 2026 – Samsung Shares Surge to Record After Report on Higher Chip Price.
7. The Korea Herald – 19 March 2026 Boston Dynamics valuation jumps 20-fold on humanoid hype.
8. International Energy Agency (IEA) Key Questions on Energy and AI "Our updated projections see electricity consumption from data centres roughly doubling from 485 TWh in 2025 to 950 TWh in 2030".
9. Financial Times January 29 2026, Top chipmakers warn AI-driven supply squeeze will worsen.
Risks specific to Artemis Global Income 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.
- Income risk The payment of income and its level is not guaranteed.
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.
