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  
2:00

Empty Calories—Reality Check for EM
• “Population increases are creating economic growth, while at the same time, there's only modest growth in…the middle income pyramid”
• Examples: Apollo Hospitals
11:00

Nvidia—What We’re Doing
• “This is when that risk management part of the equation kicks into action”
22:00

Quarterly Review
• Contributors
• Detractors
42:00

China
• “…we remain optimistic about the potential for services consumption to outpace overall economic recovery. That's how our portfolio is aligned…”
51:00

EM Relations with China
• “emerging countries remain highly dependent on foreign capital and will seek to keep their options open, which is why I think they're taking this approach”
54:00

Q&A
1 - Do you have any takeaways on the deflationary data coming out of China specifically the PPI, CPI figures? Any implications on the growth rate slowing in relation to Chinese Real Estate?
2 - The market has advanced quite a bit with some contributors being up a lot, what does that mean to how you are handing position sizing on scalable vs durable/correlation stocks in the portfolio?

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

This investor update represents the views and opinions of the manager as of 13 Jul 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 30 Jun 2023: Apollo Hospitals Enterprise Ltd 2.1%, MercadoLibre Inc 6.6%, Sea Ltd 5.8%, Nvidia Corp 6.4%, The Coca-Cola Co 1.1%, Datadog Inc 1.2%, Snowflake Inc 2.2%, The Estee Lauder Cos Inc 3.2%, HDFC Bank Ltd 3.2%, , NU Holdings Ltd 2.0%, Netflix Inc 3.0%, Unity Software Inc 1.7%, Adyen NV 4.6%, Meituan 3.6%, Bilibili Inc 1.5%, KE Holdings Inc 2.9%, Wuxi Biologics Cayman Inc 2.0%, JD Health International Inc 2.0%, Sartorius Stedim Biotech 1.1%, Crowdstrike Holdings Inc 4.6%, Visa Inc 5.0% and LVMH Moet Hennessy Louis Vuitton SE 3.2%. 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.

Passport Companies are based in developed markets economically tied to emerging markets. Value Capture which we define as a model for trimming securities that experience market appreciation while retaining a residual position. Flexion which we define as the ability to deemphasize investments while preserving value pathways, to enhance portfolio outcomes.

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