Fund Manager Updates October 2025
In a landscape marked by economic uncertainty and shifting market dynamics, fund managers are offering a range of perspectives on the most promising investment strategies for the months ahead. From cautious optimism to bold bets on emerging sectors, their insights provide a valuable snapshot of how the industry’s key players are navigating volatility and identifying opportunities. Here’s what they’re saying—and what it could mean for investors.
-
The Artemis Global Income Acc Fund has continued its strong run in 2025, delivering a year-to-date return of 43.9% as of 30 September, placing it in the top quartile of its sector and ranking 1st out of 53 funds in the IA Global Equity Income category. This marks a substantial increase from its mid-year return of 20.1%, driven by robust performance across key holdings and sectors. The fund maintains a strategic underweight to US equities, currently at 26.5% of the portfolio, compared to around 65% in the MSCI AC World benchmark. Fund manager Jacob de Tusch-Lec continues to express caution over US valuations and currency strength, favouring opportunities in Europe and Asia. Aerospace and defence stocks remain standout contributors, with Rheinmetall AG, Hanwha Aerospace, and Mitsubishi Heavy Industries among the top holdings. Financials, particularly European banks, have also benefited from elevated interest rates. Sector allocation is led by financial services (37.7%) and industrials (24.4%), with additional exposure to energy, consumer cyclicals, and basic materials. As of 10 October 2025, the fund is priced at £3.26, with assets under management exceeding £2.33 billion and an ongoing charge of 0.87%. The fund continues to demonstrate a disciplined approach to global income investing, with a focus on undervalued regions and resilient sectors, positioning it well for long-term capital and income growth.
-
The Rathbone Ethical Bond Fund has continued to demonstrate resilience in a challenging fixed income environment, delivering a 1-year return of +5.38% and a 3-year cumulative return of +31.15% as of 8 October 2025. The fund aims to outperform the IA Sterling Corporate Bond sector over any rolling five-year period, and its recent performance places it in the top quartile over longer timeframes. Managed by Bryn Jones, Stuart Chilvers, and Christie Goncalves, the fund maintains a strong ethical mandate, with all holdings vetted by Rathbone Greenbank Investments, an independent sustainability research division with veto power over investments. The portfolio is composed primarily of investment-grade sterling corporate bonds, with up to 20% allocated to sub-investment grade or unrated bonds, and up to 10% in contingent convertible bonds. As of 9 October 2025, the fund’s NAV stood at 246.46p, with a distribution yield of 5.10% and an ongoing charge of 0.65%. The top holdings include UK government bonds, HSBC Capital Funding, AXA SA, Banco Santander, and Aviva PLC, collectively making up over 14% of the portfolio. Sector allocation remains focused on financials and insurance, with a regional bias toward UK and European issuers. Despite market volatility driven by inflation concerns and rising gilt yields earlier in the year, the fund has benefited from strong demand for high-quality sterling bonds and continues to attract both retail and institutional investors. With its blend of ethical screening and active credit selection, the Rathbone Ethical Bond Fund remains a compelling choice for income-focused investors seeking sustainability without compromising returns.
-
The Fidelity European Fund has posted a robust performance in 2025, with a year-to-date return of +35.61% as of early October, placing it among the stronger performers in the Europe ex-UK equity category. Managed by Sam Morse and Marcel Stotzel, the fund continues to focus on large-cap European companies, leveraging Fidelity’s deep research capabilities and local expertise. The fund’s top holdings include ASML Holding, Roche, SAP, Nestlé, and TotalEnergies, which together account for over 22% of the portfolio. Sector allocation is tilted toward financial services (24.36%), industrials (18.38%), technology (14.05%), and healthcare (12.66%), reflecting a balanced approach to growth and defensiveness. Regionally, the fund is heavily weighted toward the Eurozone (59.2%) and Europe ex-Euro (33.6%), with minimal exposure to the UK and US. As of 10 October 2025, the fund’s NAV stood at £4,135.00, with a fund size of £4.11 billion and an ongoing charge of 1.66%. Despite a relatively modest Morningstar rating of 2 stars, the fund has consistently delivered competitive returns over the medium term, supported by disciplined stock selection and active management. The fund remains open to new investments and is available for UK ISAs, making it a viable option for investors seeking diversified exposure to continental European equities with a long-term growth focus.
This article is for general information and does not constitute personal financial advice. If you’re unsure what’s best for you, seek independent financial advice.
Past performance is not a guide to future performance, nor a reliable indicator of future results or performance. The value of investments, and the income or capital entitlement which may derive from them, if any, may go down as well as up and is not guaranteed; therefore investors may not get back the amount originally invested.
