Artemis Global Income – performance notification

Income is generated through a variety of sources, from mature, reliable dividend payers to lower quality, higher yielding companies. Investments are also made in smaller companies, which are higher risk. The fund’s lead manager, Jacob de Tusch-Lec, is a contrarian investor and uses a distinct value style. He also takes a view on the direction of the broader economy, considering factors like interest rates, and this influences how the fund invests.

The manager’s approach means the fund can look different to the broader market and can also perform differently. The fund’s recent performance has been strong and above our expectations. In the 3 years to the end of March 2026, the fund returned 121.99%. This is ahead of the 50.58% growth of the MSCI ACWI benchmark and the average fund in the IA Global Equity Income sector, which returned 33.39%. Past performance isn’t a guide to the future.

The manager’s macroeconomic views have paid off recently, with de Tusch-Lec positioning the portfolio to reflect what he sees as a period of higher inflation and continuing geopolitical uncertainty. As a result, significant contributors to performance over this time were investments in banks and defence companies. The contrarian approach means the fund often invests in lower-quality companies in these more cyclical, or economically sensitive, sectors. With quality investing being out of favour, this has boosted performance compared to both the benchmark and peers.

Our view

While we typically expect the fund to perform strongly in a rising market, the recent level of outperformance, while being a good outcome for investors, is beyond our expectations. Strong performance may continue over the short to medium term, but we don’t think it will consistently perform this way over the long-term.

Investors should be aware there have been times in the past where 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. This was the case in the period from 2018-2020, when the fund underperformed both its benchmark and peers. While the fund’s value style was out of favour during this period, stock selection (the ability to invest in companies that go on to perform well regardless of their country or sector) also detracted from performance.

We continue to believe the fund has the potential to perform well and provide a good income over the long term, and we maintain our conviction in de Tusch-Lec and the team’s investment process. The fund remains a key component on the Wealth Shortlist. However, investors should be aware that this fund is typically more volatile than peers. It is also true that for most funds, periods of exceptionally strong performance can be followed by periods of weaker performance at some point. Furthermore, different investment styles and investment sectors will come in and out of favour, so investors should ensure they maintain diversified portfolios.

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. The managers have the flexibility to use derivatives to help manage the portfolio, which can increase risk.

This isn't a recommendation to make any changes to an investment portfolio. Investors should make sure any investments match their investment goals and attitude to risk and are held as part of a diversified portfolio. If you're not sure if an investment is suitable for your circumstances, please seek personal advice.