Following a strong start after current manager Peter Saacke took over the fund in 2004, Artemis Global Growth has suffered severe underperformance in 2008 and 2009. Partly this is explained by market conditions - the SmartGARP quantitative process used by the fund performs better in directional markets and was left flatfooted by a series of market turning points during the recent economic crisis. However, the recent underperformance has been exacerbated by some poor decisions by the manager - though the process is primarily quantitative it does include room for discretion. SmartGARP dates back to the 1990s and has undergone previous periods of underperformance before bouncing back, and with the talented managers continuing to refine the process it may well do the same, particularly if markets stabilise. However, in view of the continued uncertainty over the economic environment there remains the possibility of further market turning points again hitting performance.
As a result we have downgraded the fund to 3 stars and continue to suggest it is most suitable for more adventurous investors.