Artemis Merges European Select Fund with SmartGARP European Equity Fund
Artemis has consolidated its European Select fund with the SmartGARP European Equity fund, resulting in a combined fund boasting assets exceeding £330 million.
The merger received unanimous support from the investors who cast their votes last month, signaling confidence in this strategic decision.
Philip Wolstencroft, the architect behind the SmartGARP investment process and a partner at Artemis, will oversee the newly merged fund. He has been at the helm of the SmartGARP European Equity fund since its inception in March 2001.
Positive Outlook for the Fund
Wolstencroft expressed optimism regarding the fund’s prospects, noting, “In our fund, we invest in stocks with a historical yield surpassing 4 percent, while the average growth rate in earnings and cashflows for these companies has been around 7 percent annually over the last decade.”
He further explained, “The return from any asset results from its yield plus its growth rate, so I am confident about the fund’s future performance.”
Attraction of European Equities
Highlighting the appealing traits of European equities, Wolstencroft remarked on their undervaluation compared to US equities. “The price-to-earnings ratio for the US market stands at approximately 22x, while Europe sits at just 13x. If European companies can deliver similar growth rates at a significantly lower multiple, we expect higher overall future returns,” he stated.
He encouraged investors to consider allocating a portion of their assets into European equities, emphasizing the advantageous position they hold in the current market landscape.
Management Transition
The Artemis European Select Fund was previously managed by Kartik Kumar, who transitioned to Phoenix Asset Management in December following Phoenix’s acquisition of the Artemis Alpha investment trust, which he had also managed.
