The Artemis Global Income Fund celebrated its 15th anniversary on 19 July 2025. Jacob de Tusch-Lec has managed the fund since inception; he was joined by fund manager James Davidson in 2018 and analyst Yin Loke in 2023.
The managers take a contrarian approach and have built a global portfolio that is highly differentiated from its benchmark, the MSCI All Country World Index, with a 95% active share1. The fund also looks different to peers, with less than 5% of its portfolio overlapping with other funds in the sector2.
The £2.6bn3 fund aims to grow both income and capital over a five-year period. Davidson and de Tusch-Lec invest in companies they believe will generate strong profits and grow their dividends, with robust free cashflow (the amount of cash available to a company after it has paid for all capital expenditures) and dividend yields above the market’s average. They look beyond widely-owned, ‘traditional’ income stocks to find less well-known opportunities, from Japanese and Spanish banks to gold miners, defence contractors and pork and uranium suppliers in emerging markets.
Fund manager Jacob de Tusch-Lec explained: “We try to skate towards where we think the puck will go and we started this year with some bigthemes running through the portfolio. We took the view that there would be increased spending on defence that was not fully reflected in prices, the global economy was not going into recession and interest rates would remain reasonably high. The world is going through a regime change towards higher inflation, geopolitical conflict and more government intervention.”
These thematic tilts have propelled the fund to the top of the IA Global Equity Income sector with a 20.1% year-to-date return as of 30 June 2025, versus 0.6% for the MSCI ACWI and 2.8% for the average peer4.
Artemis Global Income is also the best performing fund in the IA Global Equity Income sector over one, three and five years to 30 June 2025 and since inception on 19 July 2010. Its total return since inception of 506.2% is well ahead of the MSCI All Country World Index (ACWI) at 383.9% and the IA Global Equity Income sector at 276.6%5.
Greg Jones, head of distribution at Artemis, said: “Artemis Global Income has not sought to match the benchmark’s high US allocation and instead has found opportunities in the UK, Europe, Japan and elsewhere. Another thing that sets the fund apart is how its managers combine top-down, macroeconomic views with bottom-up fundamental analysis to generate alpha.”
The fund’s portfolio is diversified between three broad categories of stocks: core income, dividend growth and, finally, risk and special situations. The managers shift allocations between these three buckets depending on the prevailing macroeconomic conditions and their outlook.
Fund manager James Davidson commented: “In the current environment of increased volatility and uncertainty, savers can find diversification in a portfolio that is 95% different to the broader market, 30% cheaper than its benchmark6, with almost twice the market’s 2% dividend yield7 and an income distribution that has grown 8% per year annum since inception8.
1Source: Artemis as at 30 June 2025. A fund’s active share indicates the degree to which its portfolio deviates from its benchmark. A passive fund tracking an index would have an active share of zero, whereas at the other end of the spectrum, a fund with an active share of 100% would have no overlap with its benchmark.
2Source: Morningstar as at 30 April 2025.
3Source: Artemis as at 30 June 2025.
4Source: Lipper Limited.
5Source: Lipper Limited, data to 30 June 2025.
6Source: Artemis as at 30 June 2025, based on average price-to-earnings ratios for the Artemis Global Income Fund and the MSCI All Country World Index.
7 The fund has a 3.7% dividend yield compared to 2% for the MSCI ACWI. Source: Artemis as at 30 June 2025.
8Source: Artemis as at 30 September 2024.
