Artemis

Challenging macro conditions haven’t got in the way of a recent equity rally. Paras Anand, Chief Investment Officer at Artemis, reveals what has been propping up the market – and why the picture can continue to improve.

The UK has been out of favour among international investors ever since 2016’s referendum on membership of the EU. But Artemis’ fund managers think this could be the year that all changes.

Mark Niznik, manager of the Artemis UK Smaller Companies Fund, says that no one knows a business as well as the person running it, so it can be taken as a vote of confidence if they buy back its shares.

Natasha Ebtehadj, global equities fund manager, says that by investing billions of dollars in infrastructure, digitalising its finance system and reducing bureaucracy, India has overtaken China as investors’ favourite emerging market. But with valuations looking stretched, what is the best way to approach it?

Swetha Ramachandran of the Artemis Funds (Lux) – Leading Consumer Brands Fund says onerous rules around which whisky is allowed to call itself ‘Scotch’ ensure established producers won’t be undercut by competitors who scrimp on costs or shift production to regions where labour is cheap.

Living fast and dying young may help rock stars achieve legendary status, but these traits are much less appealing when exhibited by potential investments, according to Mark Niznik of the Artemis UK Smaller Companies Fund.

Global equities managers Alex Stanić, Natasha Ebtehadj and Swetha Ramachandran reveal where they expect to find the biggest investment opportunities in 2024 and how they plan to make the most of them.
 

With interest on cash so high and markets looking volatile, some investors may be tempted to put their spare money in a standard savings account. However, doing so could come with a severe long-term opportunity cost.

Artemis’ fixed income team share their three key messages for 2024.

1. Bonds of almost every variety are a ‘buy’
2. High-yield bonds are attractive under almost any economic scenario
3. Changing market conditions make taking an active, bottom-up approach to bond markets a necessity

Raheel Altaf, manager of the Artemis SmartGARP Global Emerging Markets Equity Fund, explains why he is overweight China despite the well-publicised risks, but underweight more ‘fashionable’ regions such as India and Taiwan.

Through share buybacks, some of the best companies in the UK market are delivering compound growth in their earnings per share – and so rewarding their patient shareholders.

Mark Niznik and William Tamworth talk about some of the reasons for the Artemis UK Smaller Companies Fund’s top-quartile returns this year, including takeover bids and the surprising resilience of the UK consumer.

At the start of the year, many analysts predicted a recovery in China could support the global economy. While the recovery has failed to materialise, Raheel Altaf, manager of the Artemis SmartGARP Global Emerging Markets Equity Fund, believes it may only be the timing of the prediction that was wrong.

Alex Stanić, lead manager of the Artemis Global Select Fund, says that to call all banks cyclical is a generalisation: in selective emerging markets with low penetration of financial products, there is a clear long-term opportunity.

Getting to net zero will demand trillions of dollars of private-sector capital. But financial returns and positive environmental impacts need to be complemented by outcomes that support the needs of society, give communities affected by the energy transition a voice – and a share in the profits. The drive to net zero should not come at any cost.

Investors often assume that ‘special situations’ refers to companies in turmoil that represent high risk, but this is not so. The Artemis UK Special Situations team explain how using the 3 R’s – rehabilitation, recovery and revitalisation – can highlight why their capacity to improve makes these companies ‘special’.

Andy Marsh and Jacob de Tusch-Lec say that whether income investors are analysing UK or global businesses, they should focus on a company’s cashflow rather than how much it is yielding.

Despite being a bond manager, Artemis’ Head of Fixed Income Stephen Snowden has always preferred to buy equity funds for his personal portfolio. But with good-quality short-duration bonds generating more than 6% a year, he says it makes sense to lock these yields in.