Artemis has plans to launch a fund focused on leading brands to appeal to a new generation of investors.
The fund manager is set to start with a portfolio of between 25 and 35 stocks, with the fund expected to be launched in November.
It will be managed by Swetha Ramachandran, who joined Artemis this month from Gam, where she managed the Gam Luxury Brands fund from 2019.
She 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 the move will bring something different for investors.
He added: “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 expects the fund, which is still subject to regulatory approval, to have share classes denominated in sterling, euros and US dollars.
tara.o'connor@ft.com
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