Artemis has announced its intention to launch a new global equity strategy to tap into the investment potential of changing consumer demands for leading brands.
The leading consumer brands fund, which is subject to regulatory approval, will seek to benefit from the evolving generational and geographical appetites for powerful brands.
The focused portfolio of between 25 and 35 stocks will be managed by Swetha Ramachandran, who joined Artemis at the beginning of September 2023 from GAM, where she managed the GAM Luxury Brands Fund from 2019.
Ramachandran said: “Consumers are changing geographically as well as generationally, with millennials, Gen Z and now Gen Alpha all having distinct preferences. The centre of consumer gravity is shifting eastwards with the expansion of the Asian middle class.
“The growing role of millennial and Gen Z consumers is making the boundaries between ‘luxury’ and ‘premium’ brands more fluid as well. And the definition of ‘brand’ is moving away from being transaction-led to more experience-led across all generations. For instance, older consumers with greater disposable income are increasingly seeking to ‘premiumise’ their consumption habits – especially in travel and health and wellness.”
Alex Stanić, Head of Global Equities at Artemis, said: “We believe this proposed new strategy brings something differentiated for fund selectors, asset allocators and private investors and enables them to tap into Swetha’s knowledge of this exciting space and her understanding of how it is evolving.
“Importantly, leading consumer brands demonstrate many of the key characteristics that we look for in companies more generally. They have real pricing power, even in more challenged economic times, and genuine barriers to entry – often built up over very long periods of time.”
Artemis aims to launch the fund in its SICAV in November, with share classes denominated in sterling, euros and US dollars.