Investment Process

The investment team seeks high-quality businesses exposed to structural growth themes.

Investing with Tailwinds

  • Identify structural themes at the intersection of growth and change
  • Invest in companies poised to be beneficiaries of those trends

High-Quality Businesses

  • Unique and defensible business model
  • Proven management team

A Contrarian Approach to Valuation

  • Market dislocations and mismatches between stock price and long-term business value create opportunity

Manage Unique Risks of International Small- and Mid-Cap Equities

  • Understand the direct and indirect security risk and the probability of permanent capital impairment

In-depth Investment Process


Results (%)

As of 31 July 2020 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTJX 5.36 5.01 17.32 9.04 7.22 8.91 11.43
MSCI All Country World ex USA SMID Index 4.48 -8.78 0.02 0.33 3.49 5.30 8.20
MSCI All Country World ex USA Small Cap Index 5.00 -8.44 1.12 0.30 3.91 5.73 8.93
As of 30 June 2020 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTJX 26.84 -0.33 10.31 9.23 5.41 9.36 11.17
MSCI All Country World ex USA SMID Index 21.19 -12.69 -5.13 0.03 2.41 5.72 7.98
MSCI All Country World ex USA Small Cap Index 22.83 -12.80 -4.34 -0.17 2.50 6.05 8.69

Calendar Year Returns (%)

2015 2016 2017 2018 2019
Investor Class: ARTJX 11.02 -12.88 33.35 -16.84 36.25
MSCI All Country World ex USA SMID Index 0.44 3.57 30.35 -17.06 22.36
MSCI All Country World ex USA Small Cap Index 2.60 3.91 31.65 -18.20 22.42
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. 


Morningstar Overall RatingTM
As of 31 July 2020
Morningstar Analyst RatingTM
As of 31 July 2020

Morningstar Rating and Analyst Rating Disclosure

Star ratings are based on risk-adjusted returns. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-year, 5-year, and 10-year Morningstar Ratings metrics. 118 funds in the overall Foreign Small/Mid Growth category. View full Fund ratings. 

The Morningstar Analyst Rating is a subjective evaluation performed by the mutual fund analysts of Morningstar. The Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings are based on Morningstar’s current expectations about future events; therefore, in no way does Morningstar represent ratings as a guarantee nor should they be viewed by an investor as such. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly from what is described. View Important Disclosures below for further details. 

Expense Ratio

Semi-Annual Report 31 March 2020 1.34%
Prospectus 30 September 2019 1.40%

Expense Ratio Disclosure

Prospectus Figures: Reflects a reduction in management fees, effective 01 December 2018. See prospectus for further details. Semi-Annual Report Figure(s): Unaudited, annualized for the six month period. 

Top 10 Holdings
(% of total portfolio as of 31 July 2020)
Nice Ltd (Israel) 2.9
MorphoSys AG (Germany) 2.3
Cree Inc (United States) 2.1
Tecan Group AG (Switzerland) 2.0
Metso Outotec Oyj (Finland) 1.9
Azbil Corp (Japan) 1.9
SG Holdings Co Ltd (Japan) 1.9
ConvaTec Group PLC (United Kingdom) 1.7
AIXTRON SE (Germany) 1.7
Kornit Digital Ltd (Israel) 1.6
Total 20.0%
View Full Holdings Historical Holdings
Portfolio Statistics
(as of 31 July 2020)
Median Market Cap (Billions) $3.0
Weighted Avg. Market Cap (Billions) $6.8
Weighted Harmonic Avg. P/E (FY2) 25.4X
Weighted Avg. LT EPS Growth Rate (3-5 Yr) 12.2%
Median Return on Capital 7.4%
Weighted Avg. LT Debt/Capital 19.0%
Fixed Charge Coverage Ratio 10.5X
Active Share 95.6%
Portfolio Turnover Rate 56.0%
Number of Securities 128
Number of Countries 19
Cash (% of total portfolio) 4.2%
Region Allocation
(% of total portfolio equities as of 31 July 2020)
Europe 53.3
Americas 19.0
Pacific Basin 15.9
Middle East 7.7
Emerging Markets 4.1
Total 100.0%
Top 10 Countries
(% of total portfolio equities as of 31 July 2020)
United Kingdom 17.5
Japan 15.9
United States 14.9
Switzerland 8.1
Germany 8.0
Israel 7.7
Denmark 6.7
Canada 4.1
Finland 3.1
Sweden 2.9
Sector Diversification
(% of total portfolio equities as of 31 July 2020)
Communication Services 2.2
Consumer Discretionary 7.3
Consumer Staples 5.9
Financials 3.1
Health Care 28.8
Industrials 21.5
Information Technology 27.8
Materials 2.3
Real Estate 1.1
Total 100.0%
The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
  • Rezo Kanovich
  • Portfolio Manager
  • 21Years Investment

Portfolio Manager Viewpoints

  • Maintaining a Long-Term Orientation Amid Heightened Volatility
  • View PDF
  • Identifying Long-Term Opportunities in the International Small-Mid Universe
  • Watch Now
  • Investing in the Automobile of the Future
  • View PDF

Artisan Partners Insights

Current and future portfolio holdings are subject to risk.  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.  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.  Growth securities may underperform other asset types during a given period.  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/MSCI/GICS. Sector exposure percentages reflect sector designations as currently classified by GICS. 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 (USD) 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 Capital (ROC) is a measure of how effectively a company uses the money (borrowed or owned) invested in its operations. LT Debt/Capital is the long-term debt to total capital relationship of each company within the portfolio. Fixed Charge Coverage Ratio indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. 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 All Country World ex USA SMID Index measures the performance of small- and mid-cap companies in developed and emerging markets excluding the US. MSCI All Country World ex USA Small Cap Index measures the performance of small-cap companies in developed markets and emerging markets excluding the US. 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.

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.

© 2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 

The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Morningstar's analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating ultimately reflects the analyst's overall assessment and is overseen by Morningstar's Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar's global coverage universe.

The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with a "Gold" rating distinguishes itself across the five pillars and has garnered the analysts' highest level of conviction. A fund with a 'Silver' rating has notable advantages across several, but perhaps not all, of the five pillars-strengths that give the analysts a high level of conviction. A "Bronze"-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a 'Neutral' rating isn't seriously flawed across the five pillars, nor does it distinguish itself very positively. A "Negative" rated fund is flawed in at least one if not more pillars and is considered an inferior offering to its peers. Analyst Ratings are reevaluated at least every 14 months. View detailed information about Morningstar’s Analyst Rating, including its methodology .