UK equities: Are investors missing profits staring them in the face?

Investors in the UK stock market can benefit from low valuations, high yields and a defensive sector mix amidst global geopolitical uncertainty. With indications of improving economic conditions and increased inflows, the UK represents a stable and attractive investment environment.

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A strong performance record

Fund	Since launch	10 years	5 years	3 years	1 year
Artemis UK Select	1201.1%	163.5%	141.6%	81.8%	26.6%
Artemis Income	751.9%	114.8%	86.3%	51.6%	18.3%
Artemis UK Special Situations	1027.9%	94.2%	86.9%	53.6%	18.1%
Artemis SmartGARP UK Equity	704.0%	168.2%	144.4%	74.9%	31.7%
FTSE All-Share TR	-	92.7%	67.3%	35.5%	11.2%
Artemis UK Smaller Companies	2528.1%	118.0%	76.6%	29.2%	6.2%
Deutsche Numis Smaller Companies (-InvTrust) TR	-	72.2%	64.8%	32.9%	11.1%

Fund performance vs peer group*

100% of our UK equity AUM is 1st quartile over 5 years and since launch

Past performance is not a guide to the future. Source: Lipper Limited. 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. Artemis UK Select (sector is IA UK All Companies): class I accumulation GBP from 3 April 1998 to 30 June 2025; data prior to 1 September 2010 reflects class R accumulation GBP. Artemis Income (sector is IA UK Equity Income): class I accumulation GBP from 6 June 2000 to 30 June 2025; data prior to 7 March 2008 reflects class R distribution GBP. Artemis UK Special Situations (sector is IA UK All Companies): class I accumulation GBP from 9 March 2000 to 30 June 2025; data prior to 7 March 2008 reflects class R accumulation GBP. Artemis SmartGARP UK Equity (sector is IA UK All Companies): class I accumulation GBP from 9 September 2002 to 30 June 2025; data prior to 1 September 2010 reflects class R accumulation GBP. Artemis UK Smaller Companies (sector is IA UK Smaller Companies): class I accumulation GBP from 3 April 1998 to 30 June 2025; data prior to 1 September 2010 reflects class R accumulation GBP. *As at 30 June 2025.

UK equities at Artemis

10 investment professionals

focused on UK equities

Owner-managed business

We believe that a partnership is a flexible and robust structure for an investment management business

Our fund managers invest their own money

Our managers invest their own money

Our managers invest in their own and their colleagues’ funds, which aligns their interests directly with those of our investors

£15.0^bn

invested across 6 dedicated investment strategies

Circa 450

UK company meetings per year

Artemis as at 30 June 2025

25-years of Artemis Income

On 6 June, we marked the 25th anniversary of the Artemis Income Fund – a milestone reflecting long-term success.

Since launch, the fund has outperformed its benchmark – the FTSE All-Share – in 97% of rolling five-year periods since launch to 30 April 2025.*

In this video, the team discuss how they have consistently beaten the benchmark, their investment process, what excites them about the future of UK equities and who the joker of the team is!

* Source: Lipper Limited from 6 June 2000 (when Artemis took over management of the fund) to 30 April 2025, I Inc GBP. Data prior to 7 March 2008 reflects class R distribution GBP. All figures show total returns with dividends and/or income reinvested, net of all charges.

Seven simple lessons

Andy Marsh, Nick Shenton and Adrian Frost

Investment professionals have an unfortunate tendency to overcomplicate matters, which is ironic because complexity and indecision are common bedfellows. In our experience, while investing is never easy, it certainly helps if you start simple and stay simple.

To that end, we have developed some relatively straightforward investment principles during the decades we’ve been managing the Artemis Income Fund, which celebrated its 25th anniversary on 6 June 2025.

1. Validation before value

Show an eternal optimist a 15-foot-high pile of horse manure and they will dive in, shouting “there’s gotta be a horse in here somewhere!”

And so it is with stocks. Show an investment manager a low valuation and there is a temptation to find the good and ignore the not so good. Valuation is the enemy of objectivity.

This dynamic also plays out in the world of equity income investing. Starting with an attractive yield can tilt the argument, which is why dividends are an outcome of our investment process, rather than central to it. Instead, free cash flow – which offers an objective picture of a company’s health and profitability – is our North Star.

2. The benchmark is an unreliable ally

The benchmark has no place in any investment case. It tells you nothing about a stock. Worse than that, deciding how to position a fund by referring to the benchmark is the start of a slippery slope…

To the next 25: Life beyond share buybacks…

The Artemis UK income team believe many of their portfolio companies are enjoying their best competitive environment for more than a decade. In this 3-part series, the team explain how these companies are creating wealth for shareholders.

Part 1: Share buybacks… and beyond

Artemis Income Fund

Part 2: Opportunities to invest in technological change in the UK

Part 3: How are UK companies creating wealth?

HL Meet the Manager: Nick Shenton

Video: UK equities in 5ive

Five of our UK equity fund managers explain why investors who ignore the UK risk missing out on future profits and the difference when investing with Artemis. In this short video, hear from Ed Legget, Andy Marsh, Mark Niznik, Nick Shenton and Will Tamworth.