Investment Process

The investment team seeks to capitalize on opportunities in developing world economies by investing in companies that compound business value over a market cycle, while mitigating the volatility of returns.

Fundamental Stock Selection—Business Value Compounding

  • Enhance our opportunity set by emphasizing companies and countries that benefit from rising developing world domestic demand
  • Emphasize financially sound, free cash-flow generative companies not predicated on financial leverage that are less likely to impair capital during periods of duress
  • Prefer companies where changing business conditions are not disruptive to the trajectory or pace of business value creation

Risk Management—Holistic Volatility Mitigation

  • Aim to mitigate volatility inherent in the developing world by targeting multiple dimensions of risk
  • Employ a flexible opportunity set to reduce correlations and transcend limitations of index construction
  • Implement a repeatable framework for mitigating currency volatility
New Fund Overview

Investment Results (%)

As of 28 February 2017 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTYX 8.20 8.20 28.04 3.64
MSCI Emerging Markets Index 8.70 8.70 29.46 0.75
As of 31 December 2016 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTYX -6.66 11.74 11.74 -1.26
MSCI Emerging Markets Index -4.16 11.19 11.19 -4.60

Calendar Year Returns (%)

2016
Investor Class: ARTYX 11.74
MSCI Emerging Markets Index 11.19

Returns for periods less than one year are not annualized. 

Past performance does not guarantee and is not a reliable indicator of future results. Investment returns and principal values will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown. Performance may reflect agreements to limit a Fund’s expenses, which would reduce performance if not in effect. 

Expense Ratio

  Gross Net
Annual Report 30 September 2016 1.52% 1.50%
Prospectus 30 September 2016 1.53% 1.50%

Expense Ratio Disclosure

Net expenses reflect a contractual Fund expense reimbursement agreement in effect through 31 Jan 2018. See prospectus for more information. 

Top 10 Holdings
(% of total portfolio as of 28 February 2017)
Magnit PJSC (Russia) 4.4
Alibaba Group Holding Ltd (China) 4.3
AIA Group Ltd (Hong Kong) 4.2
Kroton Educacional SA (Brazil) 3.9
Tencent Holdings Ltd (China) 3.7
Facebook Inc (United States) 3.7
HDFC Bank Ltd (India) 3.6
Unilever NV (Netherlands) 3.1
Grupo Televisa SAB (Mexico) 3.0
Sinopharm Group Co Ltd (China) 2.7
Total 36.4%
View Full Holdings Historical Holdings
Portfolio Statistics
(as of 28 February 2017)
Median Market Cap (Billions) $9.4
Weighted Avg. Market Cap (Billions) $66.5
Weighted Avg. LT EPS Growth Rate (3-5 Yr) 17.4%
Weighted Avg. LT Debt/Capital 22.0%
Median Price/Book Value 5.5X
Active Share 89.1%
Number of Securities 51
Number of Countries 23
Cash (% of total portfolio) 8.7%
Region Allocation
(% of total portfolio equities as of 28 February 2017)
Emerging Asia 47.6
Latin America 20.0
Developed Markets 19.3
Europe, Middle East and Africa 13.1
Total 100.0%
Top 10 Countries
(% of total portfolio equities as of 28 February 2017)
China 28.3
Brazil 12.7
India 10.4
United States 9.1
Russia 7.4
Hong Kong 4.6
Netherlands 3.4
Mexico 3.3
South Africa 2.7
Thailand 2.2
Sector Diversification
(% of total portfolio equities as of 28 February 2017)
Consumer Discretionary 24.4
Consumer Staples 14.1
Energy
Financials 13.1
Health Care 12.3
Industrials 6.4
Information Technology 27.6
Materials
Real Estate 2.0
Telecommunication Services
Utilities
Total 100.0%
  • Lewis S. Kaufman, CFA
  • Portfolio Manager
  • 18Years Investment
    Experience
International investments involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging markets.  Such risks include new and rapidly changing political and economic structures, which may cause instability; underdeveloped securities markets; and higher likelihood of high levels of inflation, deflation or currency devaluations.  Securities of small- and medium-sized companies tend to have a shorter history of operations, be more volatile and less liquid and may have underperformed securities of large companies during some periods.  These risks are discussed in the prospectus. Please read it carefully before you invest or send money. 

Performance Source: Artisan Partners/MSCI. Data & Statistics Sources: Artisan Partners/FactSet/MSCI/GICS. Country Classification Source:  Artisan Partners. Portfolio country classifications are defined by the investment team and may differ substantially from MSCI classifications. For the portfolio’s country breakdown according to MSCI methodology, refer to the Fund’s most recent N-Q filing on the SEC website. Sector exposure percentages reflect sector designations as currently classified by GICS. Artisan Partners may exclude outliers when calculating portfolio statistics. If information is unavailable for a particular security Artisan may use data from a related security to calculate portfolio statistics. For the purpose of determining the Fund's holdings, securities of the same issuer are aggregated to determine the weight in the Fund. Portfolio country classifications are defined by the investment team. Totals may not sum due to rounding. 

Book Value is the net asset value of a company, calculated by total assets minus intangible assets and liabilities. Free Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. Median  is the data's midpoint value.  Market Cap  is the aggregate value of all of a company's outstanding equity securities. Weighted Average  is the average of values weighted to the data set's composition. Weighted Harmonic Average is a calculation of weighted average commonly used for rates or ratios. LT EPS Growth Rate is the average of the 3-5 year forecasted EPS growth rate of a company. Return on Equity (ROE) is a profitability ratio that measures the amount of net income returned as a percentage of shareholders equity. Active Share is defined as the percentage of a portfolio that differs from its benchmark index. Active Share can range from 0% for an index fund that perfectly mirrors its benchmark to 100% for a portfolio with no overlap with an index. 

MSCI Emerging Markets Index measures the performance of emerging markets. The index(es) are unmanaged; include net reinvested dividends; do not reflect fees or expenses; and are not available for direct investment. 

MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI. 

The Global Industry Classification Standard (GICS®) is the exclusive intellectual property of MSCI Inc. (MSCI) and Standard & Poor’s Financial Services, LLC (S&P). Neither MSCI, S&P, their affiliates, nor any of their third party providers (“GICS Parties”) makes any representations or warranties, express or implied, with respect to GICS or the results to be obtained by the use thereof, and expressly disclaim all warranties, including warranties of accuracy, completeness, merchantability and fitness for a particular purpose. The GICS Parties shall not have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of such damages.