Artisan Partners Developing World Team Portfolio Manager Lewis Kaufman discusses his team’s investment philosophy, portfolio positioning and the current market environment.

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Minute  
1:00

Demand Fulfillment
• “The [emerging markets] economies are large and significant, populations are large and significant. They are large latent sources of potential domestic demand.”
• Examples: MercadoLibre, Nubank
8:00

Revenue Exposure
• “Passport companies can bring these aspirational products and foundational technologies to the emerging markets, thereby realizing domestic demand potential that would otherwise go unmet.”
12:00

Value Capture
• “When we're successful in creating disproportionate equity outcomes, it's imperative to achieve a level of permanence from them. We characterize this process as value capture.”
• Examples: Sea, MercadoLibre, NVIDIA
17:00

Quarterly Review
• Contributors
• Detractors
34:00

China
• “I think we've done a good job of reducing our capital at risk and our reliance on China, and I think we've tried to align ourselves with places where we feel we can create value and we'll continue to monitor the external situation. But I think we've handled it in a constructive rather than value destructive way.”
40:00

Rate Environment
• “…in most rate environments and over time, business value creation from scalable businesses can overwhelm other valuation inputs such as rates.”
46:00

Q&A
1 - Could you provide any perspectives on banks in the emerging markets given it’s been such a big market topic for US and Europe?
2 - To add to your comments on the rate environment, have you been noticing stocks behaving differently to news this year versus last?

This audio recording should be reviewed in conjunction with the accompanying slide presentation, which contains standardized composite performance and other important information. Access “Slides” to view.

This investor update represents the views and opinions of the manager as of 13 Apr 2023, which are based on current market conditions, will fluctuate, and are subject to change without notice. While the information contained herein is believed to be reliable, there is no guarantee to the accuracy or completeness of any statement in the discussion. This material is for informational purposes only and should not be considered as investment advice or a recommendation of any investment service, product or individual security. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

This discussion is not intended to be a recommendation of any individual security. The holdings mentioned comprised the following percentages of a representative account in the strategy Composite’s total net assets as of 31 Mar 2023: MercadoLibre Inc 6.4%, NU Holdings Ltd 2.5%, Sea Ltd 6.6%, Nvidia Corp 6.5%, Airbnb Inc 6.0%, Crowdstrike Holdings Inc 4.7%, Meituan 3.7%, Tencent Holdings Ltd 1.9%, Wuxi Biologics Cayman Inc 2.1%, HDFC Bank Ltd 3.1%, Grab Holdings Ltd 1.1%, Shenzhen Mindray Bio-Medical Electronics Co Ltd 2.1%, JD Health International Inc 2.1%, Align Technology Inc 2.0%, Apollo Hospitals Enterprise Ltd 1.1%, Visa Inc 4.9%, LVMH Moet Hennessy Louis Vuitton SE 3.2%, The Estee Lauder Cos Inc 3.1%, Snap Inc 2.4%. Securities mentioned, but not listed here or in the investor update presentation are not held in the Portfolio as of the date of this report.

Past performance does not guarantee future results. Current and future holdings are subject to risk.