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Artemis Funds (Lux) – Leading Consumer Brands

Price
£1.0936

As at
24 Apr 2024

ISIN
LU2717292358

About this fund

The Artemis Leading Consumer Brands fund aims to grow investors’ capital over a five year period by tapping into the growing spending potential of the developing middle-classes and changes in consumer habits.

The investment team looks for companies that are so well-established in the minds of consumers that they are unlikely to switch to competitors’ products and services, even if they are cheaper. This enables these companies to establish higher profits over the long term; as a result, such companies are defined as ‘leading consumer brands’ by the investment managers.

The investment approach is fully consistent with that of the Artemis Global Select Fund and has the benefit of the breadth or research undertaken across the wider team.

  • Expansion of the middle-class globally: this is expected to be responsible for 85% of new consumer spending over the next decade, driven by emerging markets economies such as India and China2.
  • Leading companies: the companies that are defined as the ‘strongest’ consistently outperform the stock market over time1.
  • Generational shift in consumer habits: consumers are getting younger. Generation Z (those born between 1995 and 2010) buy their first luxury item at the age of 15, on average3. Those born between 1982 and 1994, known as Generation Y, bought their first luxury product between the ages of 18 and 20.
  • Valuation: These leading consumer brands companies have become ‘cheaper’ on the stock market in the short term, compared to their long-term value. This means the pay-off is potentially higher for long-term investors.
  • Differentiated actively-managed portfolio: there will be fewer technology companies and fewer US businesses in the fund’s portfolio, meaning the fund offers something different to, and can work alongside, broader global equity funds.
  • Consumers’ experiences: consumer spending is moving from solely goods towards services such as travel and health, sometimes known as ‘experiential consumption.’

The fund is a ‘SICAV’, domiciled in Luxembourg. UK private investors can invest in the fund via investment platforms (investment directly with Artemis is not available).

Sources: 1 S&P Capital IQ and Kantar BrandZ; 2 World Data Lab’sMarketPro, 2021 update, Brookings Institution as at Feb 2019; 3 Bain Luxury Goods Worldwide Market Study, 2023

Investment team

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Investment insights

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Composition

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Fund data

Key facts

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Objective

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