Investment Process

The investment team seeks to invest in companies that are uniquely positioned to benefit from the growth potential in emerging markets and that possess a sustainable global competitive advantage.

Sustainable Earnings

  • In-depth financial and strategic analyses to determine a sustainable ROE
  • Financial analysis focuses on identifying historical drivers of ROE
  • Strategic analysis examines a company's competitive advantages

Risk Analysis

  • Assess and incorporate company-specific risks into valuation analysis
  • Assess country-appropriate macroeconomic risks to which a company is exposed


  • Determine risk-adjusted target price based on sustainable earnings estimates, cash flow expectations and risk analysis
  • Invest in companies that are undervalued relative to peers and historical, industry, country and regional valuations

In-depth Investment Process


Results (%)

As of 30 November 2018 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTZX -2.17 -12.14 -8.03 11.36 3.47 8.07 -0.84
MSCI Emerging Markets Index -4.95 -12.24 -9.09 9.41 1.90 9.13 0.55
Investor Class: ARTZX (Linked) 4.23
MSCI Emerging Markets Index 5.32
As of 30 September 2018 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTZX -2.77 -10.18 -2.70 15.66 4.72 3.87 -0.64
MSCI Emerging Markets Index -1.09 -7.68 -0.81 12.36 3.61 5.40 1.06
Investor Class: ARTZX (Linked) 4.47
MSCI Emerging Markets Index 5.83

Calendar Year Returns (%)

2013 2014 2015 2016 2017
Investor Class: ARTZX -4.78 -4.41 -12.53 16.39 39.95
MSCI Emerging Markets Index -2.60 -2.19 -14.92 11.19 37.28
Returns for periods less than one year are not annualized. Artisan Emerging Markets Fund (Linked) performance is that of the Institutional Class shares (APHEX) from 26 Jun 2006 through the inception of the Investor Class on 2 Jun 2008, and actual class performance thereafter. Performance would be lower if the higher expenses of the Investor Class (ARTZX) were reflected for the entire period. 

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. 


Morningstar Overall RatingTM
As of 30 November 2018

Morningstar Rating Disclosure

Expense Ratio

  Gross Net
Annual Report 30 September 2018 1.78% 1.41%
Prospectus 30 September 2017 2.15% 1.35%

Expense Ratio Disclosure

Net expenses reflect a contractual expense limitation agreement in effect through 31 January 2020. Annual Report Figures: Reflects a change in the Fund’s management fee and expense limit, 1.50% lowered to 1.35%, effective 21 Feb 2018. See prospectus for further details. 

Top 10 Holdings
(% of total portfolio as of 30 November 2018)
Samsung Electronics Co Ltd (Korea) 6.1
Alibaba Group Holding Ltd (China) 5.7
Taiwan Semiconductor Manufacturing Co Ltd (Taiwan) 5.4
Reliance Industries Ltd (India) 2.7
Naspers Ltd (South Africa) 2.5
Zhuzhou CRRC Times Electric Co Ltd (China) 2.3
LUKOIL PJSC (Russia) 2.1
ICICI Bank Ltd (India) 2.1
Sberbank of Russia PJSC (Russia) 2.1
Noah Holdings Ltd (China) 2.0
Total 32.9%
View Full Holdings Historical Holdings
Portfolio Statistics
(as of 30 November 2018)
Median Market Cap (Billions) $8.8
Weighted Avg. Market Cap (Billions) $73.5
Weighted Harmonic Avg. P/E (FY1) 13.6X
Weighted Harmonic Avg. P/E (FY2) 12.0X
Weighted Avg. LT EPS Growth Rate (3-5 Yr) 15.6%
Weighted Avg. ROE 17.4%
Median Price/Book Value 2.5X
Active Share 74.9%
Portfolio Turnover Rate 26.2%
Number of Securities 73
Number of Countries 25
Cash (% of total portfolio) 1.2%
Region Allocation
(% of total portfolio equities as of 30 November 2018)
Emerging Asia 61.3
Europe, Middle East and Africa 20.7
Latin America 16.5
Developed Markets 1.5
Total 100.0%
Top 10 Countries
(% of total portfolio equities as of 30 November 2018)
China 22.8
Korea 12.9
Taiwan 9.9
India 9.1
Brazil 8.6
Russia 7.9
South Africa 5.1
Indonesia 4.6
Turkey 2.3
Argentina 1.9
Sector Diversification
(% of total portfolio equities as of 30 November 2018)
Communication Services 8.3
Consumer Discretionary 14.9
Consumer Staples 1.9
Energy 7.9
Financials 22.3
Health Care 8.8
Industrials 9.5
Information Technology 16.3
Materials 6.8
Real Estate 1.6
Utilities 1.8
Total 100.0%
The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
  • Maria Negrete-Gruson, CFA
  • Portfolio Manager
  • 27Years Investment

Portfolio Manager Viewpoints

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Artisan Partners Insights

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. 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 portfolio holdings on the SEC website. Portfolio turnover is reported as of the Fund’s fiscal year end. 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. Cash weighting includes cash and cash equivalents. Totals may not sum due to rounding. 

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. Price-to-Earnings Ratio (P/E Ratio) measures how expensive a stock is. Earnings figures used for FY1 and FY2 are estimates for the current and next unreported fiscal years. 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. Price-to-Book Ratio (P/B Ratio) is a valuation measure used to compare a stock's market value to its book value. 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. Portfolio Turnover is a measure of the trading activity in an investment portfolio—how often securities are bought and sold by a portfolio. 

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 Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. 

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.