MARKETING COMMUNICATION. Capital at risk. All financial investments involve taking risk which means investors may not get back the amount initially invested.
Three growth drivers behind leading consumer brands
A growing middle-class
Five people join the global middle-class every second
Shifting consumer preferences
Tapping into a ‘buy less, buy better’ mentality and a growing demand for leading consumer services, as well as the traditional products
Demographic shifts
Millennials and Gen-Z consumers already drive two-thirds of sector revenue
Finding profits from the world's consumer spending
Swetha Ramachandran, Leading Consumer Brands fund manager, talks about the rise of the global consumer.
What do we regard as a leading consumer brand?
Leading brands are typically those for which demand increases in a non-linear fashion as income increases – outlays become a greater proportion of overall spending
Exposure to brands that are capturing wallet share of the global mass affluent consumer
An intangible strength that allows them to capture a piece of the customer’s mind, acting as a ‘tax on emotions’
Ability to charge a premium for their products or services and are generally able to pass on price increases as long as brand desirability remains high
“We are not luxury. We are high-quality, based on exceptional artisanal work.” (Patrick Thomas, former CEO, Hermès)
Why this fund?
Strong sector experience and track record
- Multi-decade experience
- Multi-region expertise
- Actively managed
A fundamental bottom-up stock-picking approach
- Deep-dive fundamental research and valuation
- Intrinsic cashflow-based valuation/return on capital
Global Diversifier
- Concentrated, conviction-led portfolio with lower tech and US weightings
- Low overlap with other global/thematic strategies
Constant renewal of hunting grounds
- Monitor emerging themes and look for players winning in local regions
- Primary research through meetings with industry experts
Meet the team
Swetha Ramachandran, lead manager
Swetha joined Artemis from GAM in September 2023 where she managed the GAM Luxury Brands Fund from 2019. She has more than 24 years’ investment experience having begun her career in 1999 as an analyst at Goldman Sachs in Singapore. Swetha also manages the Artemis Global Select strategy alongside Alex Stanić and Natasha Ebtehadj.
Swetha’s track record managing the GAM Luxury Brands Fund
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, GAM Luxury Brands Funds class C accumulation shares in EUR from 10 March 2019 to 31 July 2023. All figures show total returns with dividends and/or income reinvested, net of all charges. Swetha Ramachandran managed the GAM Luxury Brands Fund from 8 March 2019 to 31 July 2023.
Alex Stanić, co-manager
Alex is head of Global Equities and joined Artemis in March 2023. He has over 28 years’ investment experience, having started at Cazenove in 1995 where he became the global equity team leader. After founding and heading the global equities division of River & Mercantile Asset Management in 2009, he joined JP Morgan Asset Management in 2015 as a managing director and senior portfolio manager within its international equity group.
Natasha Ebtehadj, co-manager
Natasha joined Artemis in June 2023. She started her investment career at Morgan Stanley in 2006 and joined Columbia Threadneedle Investments in 2008, latterly as a portfolio manager in its global and EAFE equities mandates including the Sustainable Outcomes Global Equity fund.
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.
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.
- Sector and concentration risk: As the fund has a theme of investing only in companies that own or operate leading consumer brands, it may have investments concentrated in a limited number of holdings. This can be riskier than holding a large number of investments from a wide range of sectors.
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.
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.
Issued by: Artemis Investment Management LLP which is authorised and regulated by the UK Financial Conduct Authority; in Germany, AI Management (Europe) GmbH; in Switzerland, Artemis Investment Services (Switzerland) GmbH.