Get more for less: A contrarian approach to emerging markets

Emerging market economies are in better shape than many of their developed peers – yet their equities are much cheaper. A differentiated process could help you unlock this value.

MARKETING COMMUNICATION. Capital at risk. All financial investments involve taking risk which means investors may not get back the amount initially invested.

Three catalysts for change in emerging markets

After a challenging decade, fund manager Raheel Altaf believes the asset class is on the cusp of a recovery with a number of growth drivers emerging, including stimulus measures and falling interest rates, which should offer powerful support to demand going forward. As an active investor, Raheel is finding high-quality companies at depressed valuations, offering an attractive entry point for investors.

China - stimulus measures incoming. Falling interest rates and relative stronger economic growth. Valuations at multi-decade relative lows.

Read Raheel’s assessment: why recent weakness may offer an attractive entry point

How best to access this opportunity?

The Artemis SmartGARP Global Emerging Markets Equity fund is an actively managed fund that takes a contrarian and differentiated approach, with a high active share. It has a strong track record and is first quartile in its sector since launch*

For a number of years, we have seen speculation following surging share prices, which has reduced the focus on fundamentals. This has created excessively high valuations in some parts of the market that have now started to unwind.

We think this unwind has further to run and are therefore cautious on expensive companies that show signs of investor exuberance. We see less risk in companies that have been overlooked and trade on low valuations, but where there are signs of improving fundamentals.

Chart showing performance of Artemis Funds (Lux) - SmartGARP Global Emerging Markets Equity fund

Fund 10-year discrete performance

Calendar year performance	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Artemis Funds (Lux) – SmartGARP Global Emerging Markets Equity	17.0%	9.7%	15.7%	-14.8%	12.6%	3.3%	19.1%	-	-	-	-	-
MSCI EM (Emerging Markets) NR USD	15.3%	7.5%	9.8%	-20.1%	-2.5%	18.3%	18.4%	-	-	-	-	-

Past performance is not a guide to the future. All financial investments involve taking risk which means investors may not get back the amount initially invested.

*Source: Lipper Limited, Artemis Funds (Lux) - SmartGARP Global Emerging Markets Equity class I accumulation USD, from 5 September 2018 to 30 June 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. Benchmarks: MSCI EM (Emerging Markets) NR: A widely-used indicator of the performance of emerging markets 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. IA Global Emerging Markets NR: 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.

Fund in Five

Fund in Five: Artemis SmartGARP Global Emerging Markets Equity 6 min 4 secs

In this short video, Raheel Altaf looks at the fund's portfolio from five angles and discusses why now is a good time to invest in the region. He discusses investment opportunities, the process used to manage the fund, its simple philosophy and the wider SmartGARP® team.

Meet the manager

Raheel Altaf

Raheel Altaf, fund manager

Raheel joined Artemis in 2014 and has co-managed the global emerging markets equity strategy since launch in 2015.

For more information

Fund manager insights

FOR PROFESSIONAL INVESTORS AND/OR QUALIFIED INVESTORS AND/OR FINANCIAL INTERMEDIARIES ONLY. NOT FOR USE WITH OR BY PRIVATE INVESTORS.

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, available in English, and KIID/KID, available in English and in your local language depending on local country registration, from www.artemisfunds.com or www.fundinfo.com.

Any research and analysis in this communication has been obtained by Artemis for its own use. Although this communication is based on sources of information that Artemis believes to be reliable, no guarantee is given as to its accuracy or completeness.

Any forward-looking statements are based on Artemis’ current expectations and projections and are subject to change without notice.

Investment in a fund concerns the acquisition of units/shares in the fund and not in the underlying assets of the fund.

Reference to specific shares or companies should not be taken as advice or a recommendation to invest in them.

For information on sustainability-related aspects of a fund, visit www.artemisfunds.com.

The fund is a sub-fund of Artemis Funds (Lux). For further information, visit www.artemisfunds.com/sicav.

For changes made to the Artemis Funds (Lux) range of Luxembourg-registered funds since launch, visit www.artemisfunds.com/historic-changes.

Third parties (including FTSE and Morningstar) whose data may be included in this document do not accept any liability for errors or omissions. For information, visit www.artemisfunds.com/third-party-data.

Investment risks:

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.
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.
China risk: The fund can invest in China A-shares (shares traded on Chinese stock exchanges in Renminbi). There is a risk that the fund may suffer difficulties or delays in enforcing its rights in these shares, including title and assurance of ownership.
ESG risk: The fund may select, sell or exclude investments based on ESG criteria; this may lead to the fund underperforming the broader market or other funds that do not apply ESG criteria. If sold based on ESG criteria rather than solely on financial considerations, the price obtained might be lower than that which could have been obtained had the sale not been required.
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.

Issued by: in the UK, Artemis Fund Managers Ltd which is authorised and regulated by the Financial Conduct Authority; in Germany, AI Management (Europe) GmbH; in Switzerland, Artemis Investment Services (Switzerland) GmbH.