Artemis SmartGARP Global Emerging Markets Equity Fund

The managers of the fund seek to give investors exposure to the growth potential of companies in emerging markets including China, Korea, Taiwan, Brazil, Thailand and India. They aim to grow capital over five years by investing in companies listed or headquartered in emerging markets or that have a significant part of their activities there.

The value of the investments selected by the managers may fall as well as rise with movements in stockmarkets or owing to diverse factors specific to individual companies. This could mean investors may not get back the amount they originally invested. Emerging markets carry additional risks, in particular sharper rises and falls in share prices.

• Rigorous stock screening: SmartGARP^®, Artemis’ proprietary tool, screens more than 2,000 company shares across emerging markets. It highlights those with characteristics that the managers believe make them more likely to deliver above-average investment returns. In particular, the tool looks for companies that are enjoying strong growth in earnings, seeing improved profits and are trading at share prices below their peers.
• Manager insight: Managers Raheel and Peter analyse the companies that have satisfied the SmartGARP screen in order to establish whether there is substance behind the attractive characteristics that SmartGARP has identified.
• The result: an even smaller subset of companies pass the two steps, resulting in a portfolio of typically 80 to 120 company shares selected by Peter and Raheel that are diversified by industry and country.
• ESG integration: the managers use artificial intelligence to look at newsflow to provide real-time insights into environmental, social and governance behaviour. This pushes them towards companies with strong ESG credentials and/or those that are showing significant improvements.