2018 Annual Report

Artisan Partners’ investment teams have added significant long-term value, after fees.

Artisan Strategies Versus Their Benchmark Indices ($mn)

A hypothetical portfolio consisting of $1 million invested at the inception of each marketed strategy would have grown from $19 million to approximately $72.6 million at December 31, 2018, after fees. That is $22.8 million (or 46%) more than a portfolio consisting of each strategy's corresponding passive index.

Chart: Artisan strategies versus their benchmark indices

Data as of and through December 31, 2018. Sources: Artisan Partners/MSCI/Russell/ICE BoAML/S&P. Calculation is based on investing $1 million, with monthly net-of-fees returns, in each Artisan composite historically marketed to investors and its broad-based market index for the period since the composite's inception or at which time the strategy's marketed composite was terminated. Performance includes the returns for the following strategies and their broad-based market indexes for the periods since each composite's inception through the last full month of performance: the U.S. Small-Cap Value strategy from June 1, 1997 through April 30, 2016; the Global Small-Cap Growth strategy from July 1, 2013 through December 31, 2016; and the Non-U.S. Small-Cap Growth strategy from January 1, 2002 through November 30, 2018. An investment cannot be made directly in an Artisan composite or a market index and the aggregated results are hypothetical. Past performance is not indicative of future results. See Disclosures for more information about our investment performance and the benchmarks used.

Delivering high value-added results for our clients.

Rolling 5-Year Performance

Including the impact of management fees, Artisan Partners' investment strategies have outperformed their benchmark indices in the majority of rolling 5-year periods, demonstrating that our investment teams have added value across multiple market environments.

Chart: Artisan Strategies Versus Their Benchmark Indices ($) 1995-2018

Data as of and through December 31, 2018. Sources: Artisan Partners/MSCI/Russell. The dark blue line indicates the percent of periods each Artisan composite outperformed its broad-based market index, and the lighter blue line indicates the periods that the U.S. Mid-Cap Growth, U.S. Small-Cap Growth, Value Equity and U.S. Mid-Cap Value strategies outperformed their style indexes. Percent of periods outperformed is the percentage of total 5-year periods in which the Artisan composite, net of fees, outperformed its broad-based market or style index. The performance over rolling periods is based on monthly returns each Artisan composite has completed a 5-year return period. The U.S. Small-Cap Value strategy, which reorganized into the U.S. Mid-Cap Value strategy in May 2016, outperformed its broad-based benchmark index in 77% of the 168 rolling 5-year periods during its existence. The Global Small-Cap Growth strategy, which was shut down in January 2017, was managed for less than five years. The Non-U.S. Small-Cap Growth composite outperformed its broad-based benchmark index in 77% of the 144 rolling 5-year periods during its existence through its termination on November 30, 2018 as the strategy evolved into the Non-U.S. Small-Mid Growth strategy, which began its new composite performance track record on January 1, 2019. The following strategies do not yet have 5-year track records and have not been accounted for: Artisan Credit Opportunities, Developing World, Global Discovery, High Income, Thematic and Thematic Long/Short Strategies. Past performance is not indicative of future results. See Disclosures for more information about our investment performance and the benchmarks used.

Firm-wide Investment Performance

AVERAGE ANNUAL TOTAL RETURNS—NET OF FEES
1 Yr 3 Yr 5 Yr 10 Yr Inception Value-Added
(bps)
Growth Team
Artisan Global Opportunities Strategy—Feb 1, 2007 -8.71 7.92 6.94 15.09 8.37 447
MSCI All Country World Index -9.41 6.59 4.26 9.45 3.90
Artisan Global Discovery Strategy—Sep 1, 2017 -2.89 1.94 372
MSCI All Country World Index -9.41 -1.78
Artisan U.S. Mid-Cap Growth Strategy—Apr 1, 1997 -3.64 4.97 4.67 15.00 13.12 357/453
Russell Midcap® Index -9.06 7.04 6.26 14.02 9.55
Russell Midcap® Growth Index -4.75 8.59 7.41 15.11 8.59
Artisan U.S. Small-Cap Growth Strategy—Apr 1, 1995 2.51 11.30 6.63 15.90 9.18 57/199
Russell 2000® Index -11.01 7.36 4.41 11.97 8.61
Russell 2000® Growth Index -9.31 7.23 5.13 13.51 7.19
Global Equity Team
Artisan Global Equity Strategy—Apr 1, 2010 -2.92 8.08 5.77 10.21 342
MSCI All Country World Index -9.41 6.59 4.26 6.79
Artisan Non-U.S. Growth Strategy—Jan 1, 1996 -10.63 1.96 0.39 8.31 8.55 433
MSCI EAFE Index -13.79 2.87 0.53 6.31 4.22
Artisan Non-U.S. Small-Mid Growth Strategy—Jan 1, 2019
MSCI All Country World ex USA SMID Index
U.S. Value Team
Artisan Value Equity Strategy—Jul 1, 2005 -14.34 8.78 4.27 11.04 6.30 -166/-19
Russell 1000® Index -4.78 9.08 8.21 13.27 7.96
Russell 1000® Value Index -8.27 6.95 5.94 11.17 6.49
Artisan U.S. Mid-Cap Value Strategy—Apr 1, 1999 -13.36 6.20 1.95 11.11 10.97 237/204
Russell Midcap® Index -9.06 7.04 6.26 14.02 8.60
Russell Midcap® Value Index -12.29 6.05 5.44 13.02 8.93
International Value Team
Artisan Non-U.S. Value Strategy—Jul 1, 2002 -15.51 3.43 1.76 10.05 10.08 471
MSCI EAFE Index -13.79 2.87 0.53 6.31 5.37
Global Value Team
Artisan Global Value Strategy—Jul 1, 2007 -12.86 5.52 3.74 11.69 6.32 304
MSCI All Country World Index -9.41 6.59 4.26 9.45 3.28
Sustainable Emerging Markets Team
Artisan Sustainable Emerging Markets Strategy—Jul 1, 2006 -15.07 11.19 3.11 7.54 3.94 -57
MSCI Emerging Markets Index -14.57 9.24 1.65 8.02 4.51
Credit Team
Artisan High Income Strategy—Apr 1, 2014 -1.41 7.33 5.28 190
ICE BofAML US High Yield Master II Index -2.26 7.26 3.38
Developing World Team
Artisan Developing World Strategy—Jul 1, 2015 -15.43 8.63 3.42 126
MSCI Emerging Markets Index -14.57 9.24 2.16
Thematic Team
Artisan Thematic Strategy—May 1, 2017 10.45 23.58 1846
S&P 500® Index -4.38 5.12

Data as of and through December 31, 2018. Source: Artisan Partners/MSCI/Russell/ICE BofA Merrill Lynch/S&P. Average Annual Total Returns presents composite (net of fees) performance for each strategy. Value-added since inception is based on the composite (net of fees) performance minus the since inception returns of the broad-based benchmark. Performance for Artisan Credit Opportunities Strategies and Thematic Long/Short has been intentionally omitted. Past performance is not indicative of future results. See Disclosures for more information about our investment performance.