Artemis Global Income: November 2026 fund update

• Jacob de Tusch-Lec is a contrarian investor and has managed this fund since launch in 2010

• The fund is separated into three buckets, each with its own unique income traits

• Recent performance has been strong and above our expectations

• The fund is on our Wealth Shortlist of funds chosen by our analysts for their long-term performance potential

How it fits in a portfolio

Artemis Global Income aims to deliver income and growth by investing in companies from around the world. Income is generated through a variety of sources, from mature, reliable dividend payers to lower quality, higher yielding companies. A focus on global companies perceived to be undervalued means the fund could work well alongside more growth-focused funds or add diversification to a UK-centric income portfolio.

We believe that this fund offers something different from other global income funds. De Tusch-Lec has stayed true to his philosophy during tough periods. Whilst the fund has tended to provide a higher level of income, it’s been more volatile than most of its peers in the IA Global Equity Income sector.

Manager

Jacob de Tusch-Lec has managed the fund since launch in July 2010. After joining Artemis in 2005, he spent several years investing in UK companies before moving to invest globally. He started his career at BankInvest before moving to Merrill Lynch, where he served as vice-president on a pan-European equity fund.

De Tusch-Lec is supported by co-manager James Davidson, who joined in 2018 from JPMorgan and has managed both global and US-focused funds during his career. Davidson has more than two decades of investment experience and previously worked with de Tusch-Lec at Merrill Lynch.

Both managers are also responsible for the equity portion of the Artemis Monthly Distribution fund. Given the overlap in style and approach, we believe that they can comfortably manage this workload. We like the challenge and support gained by working as a duo and think their interaction with other teams enhances their analysis.

Process

The managers carry out detailed company analysis to identify those with a healthy amount of cash to either pay dividends or buy back shares. As a contrarian, de Tusch-Lec isn’t afraid to invest in out-of-favour companies with recovery potential. He also invests in smaller companies and emerging markets, both of which increase risk. The managers have the flexibility to use derivatives to help manage the portfolio which, if used, can increase risk.

The fund is divided into three buckets. ‘Core income’ forms the foundation of the fund and has historically accounted for over a third of assets. These companies tend to be more mature and less sensitive to the wider economy, meaning that they’re able to provide a steadier dividend. However, at the end of October they represented 24%. The managers believe that with interest rates currently higher than in recent times, these companies are less attractive.

The ‘dividend growth’ bucket focuses on companies with the ability to provide an attractive and growing dividend but that are likely to be more exposed to the health of the broader economy. At the end of October this was 40% of assets, making it the largest portion of the fund.

Finally, ‘risk and special situations’ is usually the smallest of the three buckets but accounted for 37% of the fund at the end of October. It’s home to higher risk, lower quality companies, many of which are overlooked by other investors. These companies may have the potential to pay higher dividends in the future.

In addition to company-specific research, the managers take a view on the direction of the global economy. They consider factors like the economic cycle, interest rates and the yield curve. The outcome influences the amount in each bucket.

The fund invests in between 60 and 100 companies. Geographical diversification is high, with the fund invested in 24 countries. A third of the fund is currently invested in US companies, which is much lower than the broader global stock market. The managers invest more than the benchmark in Europe, as well as countries across Asia.

On a sector level, the fund invests heavily in financial companies, like banks and insurance firms, and has less invested in technology companies than the benchmark. These allocations differ from many peers and reflect the current economic views of the managers.

A number of changes have been made to the fund in the past year. IT services firm Accenture was added to the fund. The company’s share price has been under pressure as some investors believe that artificial intelligence (AI) will impact future profit. The managers feel that the reaction was too strong and took the opportunity to invest in the company at a lower price. An investment was also made in financials and logistics business Japan Post.

Culture

Artemis is a private company, and de Tusch-Lec is a partner in the business. We think that the structure is positive for investors, as both managers and the firm are focused on the long term and can manage funds without distractions from short-term shareholder demands. Artemis also provides an attractive environment for fund managers, allowing them the freedom to operate how they best see fit without imposing a ‘house view’ on them. It’s a collegiate atmosphere, with managers supporting and challenging each other.

ESG Integration

Investment teams across Artemis are encouraged to think for themselves and invest according to their own style, so approaches to ESG integration across the firm vary. Recent meetings with the Artemis teams we back on the Wealth Shortlist suggest ESG is an important factor. However, this is not an explicitly ESG-focused fund.

Artemis has a firm-wide policy to support the aims of international conventions on cluster munitions and antipersonnel mines, and, therefore, the firm will not knowingly invest in companies that produce these weapons. The firm also avoids companies involved in biological/chemical weapons, blinding laser weapons, incendiary weapons, weapons that produce non-detectable fragments, and depleted uranium, as well as companies with a tie to nuclear weapons in countries not included in the Treaty on the Non-Proliferation of Nuclear Weapons. Companies that grow or sell cannabis are also avoided.

Artemis votes on all its holdings, unless restricted from doing so, and fund managers lead engagement with firms to develop their understanding, raise issues with management and monitor subsequent developments. The firm provides engagement case studies, and other information about its engagement and voting efforts, in an annual Stewardship report. Artemis also provides a monthly voting summary, which includes rationales for votes against management and abstentions. Stewardship activity is carried out in line with the firm’s comprehensive Stewardship policy.

Investors should note that, of the funds under our research coverage, this is one of the most carbon-intensive. Although de Tusch-Lec invests in sectors with traditionally lower ESG credentials, such as mining and defence, he considers the potential risks and tries to take a ‘best in class’ approach when analysing companies.

Cost

This fund is available at an annual ongoing fund charge of 0.83%, but with a 0.27% saving it’s available to HL clients for 0.56%. The fund discount is achieved through a loyalty bonus, which could be subject to tax if held outside of an ISA or SIPP.

Our platform charge of up to 0.35% per year also applies, except in the HL Junior ISA, where no platform charge applies. Both a buy and sell instruction will be subject to HL dealing charges.

Find out more about our charges.

Performance

Since launch in July 2010, the fund’s return of 767.6%* is ahead of both the MSCI AC World Index and the IA Global Equity Income sector average, which rose 508.4% and 358.0%, respectively. Past performance isn’t a guide to the future.

The fund returned 22.5% during the 12 months to October 2026, beating the benchmark and average peer.

Technology companies contributed to the strong performance, led by Korea’s Samsung Electronics. The company saw increased demand for its products, driven by investments in AI infrastructure. Oil & gas businesses Var Energi and Plains GP also performed well as oil prices rose during the year.

A number of industrials businesses detracted from performance, including Chinese battery manufacturer CATL and Hanwha Aerospace in Korea. Chemicals company Dow also struggled, and the fund also missed out on owning high performing pharmaceuticals firm Eli Lilly.

Although we typically expect the fund to perform strongly in a rising market, the level of outperformance in the past couple of years is beyond our expectations, and it’s unlikely to consistently perform that way in the future. Investors should be aware that there have been times when the fund hasn’t performed as well as the market or its peers and, as with all active funds, this will happen at times in the future, too. Different investment styles will come in and out of favour, so investors should ensure that they maintain diversified portfolios.

We continue to believe that the fund has the potential to perform well and provide a good income over the long term, and we maintain our conviction in the managers and their investment process.

The fund currently yields 2.4%, though yields aren’t a reliable indicator of future income and any income isn’t guaranteed. The fund’s charges are taken from capital, which can increase income but reduce the potential for capital growth over time. The fund and the level of income produced can fall as well as rise in value, so investors could get back less than they invest.