3 popular SmartGARP funds

The acronym SmartGARP doesn’t exactly trip off the tongue, but it has certainly struck a chord with customers of Fidelity Personal Investing. Developed by Artemis, the strategy has really taken off in recent years, with three funds that use it ranking among the best-sellers in both January and February. 

SmartGARP relies on a proprietary stock screening tool that aims to identify companies that are growing faster than the market but trading on lower valuations. These should be enjoying strong and consistent upgrades to profits forecasts and be under-owned by investors, while also benefiting from helpful macroeconomic trends.¹

The software combines these insights using thousands of data points to identify stocks with the potential to deliver outsized returns. Its selections are then assessed by the fund managers, who undertake detailed research to ensure the investment case behind each recommendation is sound.²

All three of the best-selling funds follow this strategy with the aim of growing investors’ capital over a five-year period. Although each has a comparator index, none is managed with reference to it.³ As a result, the portfolios differ significantly from their benchmarks and have delivered superior long-term returns, with all three consistently ranking in the top quartile.

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Artemis SmartGARP European Equity Fund

The most popular among Fidelity Personal Investors is the Artemis SmartGARP European Equity Fund. At the end of February, the £1.95bn portfolio held 81 stocks, with the ten largest positions accounting for 31.6% of assets. Financials was the largest sector weighting at 41.2%, while the main country allocations were Italy, France, Spain and Germany.⁴

Over the past year, the I accumulation GBP hedged share class has returned 54.0%, compared with 24.3% from the FTSE World Europe ex UK (100% hedged to GBP) benchmark. Please remember past performance is not a reliable indicator of future returns. Ongoing charges are 0.84%⁵, which appears reasonable for a successful actively managed equity mandate.

In his outlook for 2026, manager Philip Wolstencroft said that although the returns over the past couple of years have been extraordinary, this was down to the unusually low price-to-earnings multiple the fund was on a few years ago.⁶

“It has reverted towards the mean but is not yet 'normal'. So while the extraordinary returns may be behind us, performance going forward should still be pretty good.”⁷

• More on Artemis SmartGARP European Equity Fund

Artemis SmartGARP Global Emerging Markets Equity Fund

Next on the list is the Artemis SmartGARP Global Emerging Markets Equity Fund. At the end of February, the £2.68bn portfolio held 95 stocks, with the ten largest positions accounting for 32.4% of assets. The main sector weightings were Financials and IT at 22.5% and 22.6% respectively, while the two largest country allocations were China (27.1%) and Korea (19.9%).⁸

Over the past decade, the I accumulation share class has returned 298.7%, compared with 186.1% from the MSCI Emerging Markets benchmark. Please remember past performance is not a reliable indicator of future returns. Ongoing charges are 0.84%⁹, which represents good value for a successful actively managed EM equity fund.

In his outlook for 2026, manager Raheel Altaf said that the recovery in emerging markets is firmly underway, supported by monetary easing, resilient growth and improving earnings momentum.¹⁰

“Volatility is likely to persist, but with attractive valuations, improving fundamentals and wide dispersion across markets, we believe a consistent, process-driven approach remains well suited to the next phase of the emerging market cycle.”¹¹

• More on Artemis SmartGARP Global Emerging Markets Equity Fund

Artemis SmartGARP UK Equity Fund

The other popular fund in the range is Artemis SmartGARP UK Equity Fund. At the end of February, the £1.52bn portfolio held 73 stocks, with the ten largest positions accounting for 40.8% of assets. Financials were again the largest sector at 43.5%, significantly higher than in the benchmark.¹²

Over the past decade, the I accumulation share class has returned 271.2%, compared with 151.0% from the FTSE All-Share benchmark. Please remember past performance is not a reliable indicator of future returns. Ongoing charges are 0.86%¹³, which is fairly typical for a successful actively managed UK equity fund.

In his outlook for 2026, manager Philip Wolstencroft said the fund has outperformed the market substantially during a period when the average UK unit trust has had a torrid time.¹⁴

“Even though the fund is at an all-time high, buying equities that are on less than 10 times prospective earnings, growing and beating expectations suggests that things should continue in the right direction.”¹⁵

• More on Artemis SmartGARP UK Equity Fund

Past performance is not a reliable indicator of future returns

Source: Morningstar, total returns from 31.12.20 to 31.12.25. Excludes initial charge.

Source:

^1,2,3 Artemis Funds
^4,5 Artemis smartGARP European Equity, factsheet, 28.2.26
^6,7 Artemis smartGARP European Equity, Q4 2025 update
^8,9 Artemis SmartGARP Global Emerging Markets Equity, factsheet, 28.2.26
^10,11 Artemis SmartGARP Global Emerging Markets Equity, Q4 2025 update
^12,13 Artemis SmartGARP UK Equity, factsheet, 28.2.26
^14,15 Artemis SmartGARP UK Equity, Q4 2025 update

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. This fund can invest in overseas markets and so the value of investments can be affected by changes in currency exchange rates. Before investing, please read the relevant key information document which contains important information about the fund. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.