Bestinvest have rated Artemis European Growth since 2003 and Artemis Global Growth since 2004. Both are run principally using SmartGARP, a quantitative stock ranking system developed by Philip Wolstencroft, named manager on the European Growth fund. Initially our ratings repaid investors, with both funds substantially outperforming their respective benchmarks. However, in recent years both funds have suffered - the SmartGARP process performs best in directional markets, and with equities undergoing a series of reversals both have underperformed substantially. A move into defensive stocks at the end of 2008 was particularly harmful as it meant the funds failed to participate fully in the market recovery.
Both funds have shown recent signs of recovery and are likely to benefit if economic conditions continue to normalise. However, with the economic outlook still uncertain we are concerned that any further market shocks could cause further damage to their performance. As a result both funds have been downgraded to 2 stars.