Changes to exclusions (negative screening) of certain sub-funds of Artemis Funds (Lux)

Last updated 8 September 2025

We are making changes to the exclusions of the following sub-funds:

i. Artemis Funds (Lux) – US Select;
ii. Artemis Funds (Lux) – US Smaller Companies;
iii. Artemis Funds (Lux) – US Extended Alpha;
iv. Artemis Funds (Lux) – Global High Yield Bond;
v. Artemis Funds (Lux) – Short-Dated Global High Yield Bond; and
vi. Artemis Funds (Lux) – SmartGARP Global Emerging Markets Equity.

What is changing?

1) Amendments to the weapons screens

Companies which derive any revenues from conventional weapons will no longer be excluded for the following sub-funds:

• Artemis Funds (Lux) – US Select;
• Artemis Funds (Lux) – US Smaller Companies;
• Artemis Funds (Lux) – US Extended Alpha;
• Artemis Funds (Lux) – Global High Yield Bond; and 
• Artemis Funds (Lux) – Short-Dated Global High Yield Bond.

Companies which derive any revenues from nuclear weapons will no longer be excluded for the following sub-funds:

• Artemis Funds (Lux) – SmartGARP Global Emerging Markets Equity;
• Artemis Funds (Lux) – US Select;
• Artemis Funds (Lux) – US Smaller Companies;
• Artemis Funds (Lux) – US Extended Alpha;
• Artemis Funds (Lux) – Short-Dated Global High Yield Bond; and
• Artemis Funds (Lux) – Global High Yield Bond.

Artemis applies a firmwide exclusion on investment in entities assessed as having any industry connection to nuclear weapons, if the entity is incorporated, domiciled, listed, quoted or traded in a country which is not a signatory to the Treaty on the Non-Proliferation of Nuclear Weapons. This exclusion will remain in place.

2) Amendments to the tobacco screen

The current revenue threshold for screening out companies that produce tobacco is set at 5%. This threshold will be reduced/removed so companies which derive any revenue from tobacco production will be excluded for the following sub-funds:

• Artemis Funds (Lux) – US Select;
• Artemis Funds (Lux) – US Smaller Companies;
• Artemis Funds (Lux) – US Extended Alpha;
• Artemis Funds (Lux) – Global High Yield Bond; and
• Artemis Funds (Lux) – Short-Dated Global High Yield Bond.

For Artemis Funds (Lux) - SmartGARP Global Emerging Markets Equity, the tobacco screen currently excludes companies which derive more than 5% revenue from tobacco production, distribution or sale. This will be changed so that companies which derive any revenue from tobacco production will be excluded.

3) Amendments to the violations screen based on the UN Global Compact principles on human rights, labour rights, the environment and anti-corruption 

The UNGC violations screen will be applied to Artemis Funds (Lux) – SmartGARP Global Emerging Markets Equity.

There will be no changes to the other exclusions of the sub-funds.

None of the sub-funds’ portfolio holdings will need to be sold as a result of these changes. There will not be any change in any of the sub-funds’ investment strategies and the operation and/or manner in which the sub-funds are being managed. All other key features of the sub-funds will remain the same.

Why is Artemis making these changes?

Following a recent review of exclusions, it is felt appropriate to make changes to the three areas outlined above.

We believe removing the current conventional weapons screen, whilst keeping the controversial weapons screen, is now in the best interest of investors. This is because of recent geopolitical developments regarding defence spending. Notably, this includes a complete rewriting of Germany’s fiscal approach to defence spending, as well as other announcements from the UK and elsewhere, and the role of defence in ensuring national security. It is expected that removing the conventional weapons exclusion will have only minimal impact on the current investment universe of the sub-funds.

Shareholders should however note that the screen related to the companies involved in the production of controversial weapons will remain in place on the sub-funds.

The reduction to the revenue threshold from tobacco production (from 5% to 0% revenues) is intended to align with the ‘Do No Significant Harm’ test that is currently applied by Artemis for determining whether an investment can be deemed a ‘sustainable investment’ for the purposes of Sustainable Finance Disclosures Regulation (“SFDR”). The approach of excluding companies that produce tobacco only is felt to be in line with current market practice for defining a ‘tobacco free’ portfolio. It is expected that reducing the revenue threshold on the tobacco production exclusion will have a very minimal impact on the current investment universe of the sub-funds.

The review also identified some inconsistencies in the exclusions applied across the sub-funds. Consequently, it was decided to apply the UN Global Compact violations screen to Artemis Funds (Lux) – SmartGARP Global Emerging Markets Equity so that is consistent with other sub-funds of Artemis Funds (Lux). This is felt to be consistent with the other sub-funds of Artemis Funds (Lux) and more in line with other global emerging markets funds categorised as Article 8 under SFDR.

When will the changes take place?

The changes will come into effect on 10 October 2025. 

How will investors be affected by this notice?

There should be no impact on you as a result of these changes. 

If you deem that, as a result of the changes mentioned above, the sub-fund(s) no longer meet your investment requirements, you may apply for redemption of your shares until 9 October 2025 at 1:00 p.m. (Luxembourg time). Any redemptions will be carried out in accordance with the terms of the prospectus.  

Further information

If you are uncertain about the details of these changes, we recommend that you consult a professional adviser.

If you have any questions about the changes or would like further information, please contact the administration agent by email at [email protected]. 

Please see our glossary of terms, to explain any investment terminology that you may be unfamiliar with.

German and Austrian investors: The Prospectus, together with the Supplements, the Key Information Documents, the articles of incorporation of the Fund and the annual and semi-annual reports of the Fund, each in paper form, as well as the issue, repurchase and any exchange prices are available and may be obtained free of charge at the office of the Austrian Facility Agent: FE Fundinfo (Luxembourg) S.à.r.l., 6 Boulevard des Lumières, Belvaux, 4369 Luxembourg, and at the office of the German Facilities Agent: FE fundinfo (Luxembourg) S.à.r.l., 6 Boulevard des Lumières, Belvaux, 4369, Luxembourg.

Swiss investors: The Prospectus, the Key Information Documents, the statutes, the annual and semi-annual reports of the Company may be obtained free of charge from the Swiss Representative and Paying Agent, CACEIS Bank, Montrouge, Zurich Branch / Switzerland, Bleicherweg 7, CH-8027 Zurich.

Related documents

• Letter to shareholders dated 8 September 2025(PDF, opens in a new window)

List of affected share classes