Investment Process

The investment team seeks to invest in companies with franchise characteristics that are benefiting from an accelerating profit cycle and are trading at a discount to private market value.

Security Selection

  • Identify companies with franchise characteristics and defensible competitive positions
  • Invest in emerging profit cycles
  • Purchase stocks at a discount to private market value
  • Assess key environmental, social and governance issues that could impact future stock returns

Capital Allocation—Garden, Crop, Harvest® Investing

  • Build position size according to conviction
  • GardenSM — Smaller position sizes in companies that are early on in the profit cycle
  • CropSM — Larger position sizes in companies where profit cycle is being realized
  • HarvestSM — Reduced or sold positions as stock approaches full valuation or profit cycle begins to decelerate

Broad Knowledge

  • Invest opportunistically across entire global economy
  • Find growth wherever growth occurs

In-depth Investment Process

 

Artisan Partners Growth Team Annual Sustainability Report

Other Funds Managed

Investment Results (%)

As of 30 September 2021 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: APFDX 2.85 9.39 27.93 23.82 23.35
MSCI All Country World Index -1.05 11.12 27.44 12.58 12.49
As of 30 September 2021 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: APFDX 2.85 9.39 27.93 23.82 23.35
MSCI All Country World Index -1.05 11.12 27.44 12.58 12.49

Calendar Year Returns (%)

2018 2019 2020
Investor Class: APFDX -3.09 42.57 45.70
MSCI All Country World Index -9.41 26.60 16.25
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. 

Ratings

Morningstar Overall RatingTM
As of 30 September 2021
     
Morningstar Analyst RatingTM
As of 30 September 2021
Bronze

Morningstar 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. 298 funds in the overall World Large-Stock Growth category. View full Fund ratings.  

The Morningstar Analyst Rating™ is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five-pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark over the long term on a risk adjusted basis. They consider quantitative and qualitative factors in their research.  View Important Disclosures below for further details. 

Expense Ratio

Semi-Annual Report 31 March 2021 1.37%
Prospectus 30 September 2020 1.36%

Expense Ratio Disclosure

Semi-Annual Report Figure(s): Unaudited, annualized for the six-month period. Excludes Acquired Fund Fees and Expenses as described in the prospectus. See prospectus for further details. 

Top 10 Holdings
(% of total portfolio as of 30 September 2021)
Atlassian Corp PLC (United States) 3.5
Veeva Systems Inc (United States) 3.3
Ascendis Pharma A/S (Denmark) 3.2
Techtronic Industries Co Ltd (Hong Kong) 3.1
Advanced Micro Devices Inc (United States) 3.0
First Republic Bank (United States) 2.6
Ingersoll Rand Inc (United States) 2.4
Teledyne Technologies Inc (United States) 2.4
Gerresheimer AG (Germany) 2.4
Global Payments Inc (United States) 2.3
Total 28.3%
View Full Holdings Historical Holdings
Portfolio Statistics
(as of 30 September 2021)
Median Market Cap (Billions) $20.0
Weighted Avg. Market Cap (Billions) $30.6
Weighted Harmonic Avg. P/E (FY1) 34.3X
Weighted Harmonic Avg. P/E (FY2) 30.4X
Weighted Avg. LT EPS Growth Rate (3-5 Yr) 20.4%
Weighted Avg. LT Debt/Capital 28.4%
Active Share 98.2%
Portfolio Turnover Rate 40.4%
Number of Securities 59
Number of Countries 14
Cash (% of total portfolio) 4.2%
Region Allocation
(% of portfolio securities as of 30 September 2021)
Region Allocation chart
Americas 63.4
Europe 26.1
Pacific Basin 8.4
Emerging Markets 2.1
Total 100.0%
Top 10 Countries
(% of portfolio securities as of 30 September 2021)
United States 62.1
Germany 8.5
Denmark 6.0
Japan 4.7
Hong Kong 3.7
Switzerland 2.4
Netherlands 2.3
Brazil 2.1
France 1.9
Spain 1.6
Sector Diversification
(% of portfolio securities as of 30 September 2021)
Communication Services 3.6
Consumer Discretionary 5.9
Consumer Staples
Energy
Financials 12.0
Health Care 22.8
Industrials 18.5
Information Technology 32.0
Materials 2.3
Real Estate 1.3
Utilities 1.5
Total 100.0%


The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
  • Jason L. White, CFA
  • Portfolio Manager
  • 21Years Investment
    Experience
  • James D. Hamel, CFA
  • Portfolio Manager
  • 24Years Investment
    Experience
  • Matthew H. Kamm, CFA
  • Portfolio Manager
  • 21Years Investment
    Experience
  • Craigh A. Cepukenas, CFA
  • Portfolio Manager
  • 33Years Investment
    Experience
  • Where We Are Finding Growth—The Global Transition to a Sustainable Energy Economy
  • View PDF
  • Artisan Partners Growth Team—2020 Annual Sustainability Report
  • View PDF
  • Where We Are Finding Growth—Health Care Innovation
  • View PDF
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. Artisan Partners may exclude outlier data and certain securities which lack applicable attributes, such as private securities 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. LT Debt/Capital is the long-term debt to total capital relationship of each company within the portfolio. 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 Index measures the performance of developed and 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.

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.

© 2021 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 (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause the Manager Research Group’s expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund. For actively managed strategies, people and process each receive a 45% weighting in their analysis, while parent receives a 10% weighting. Performance has no explicit weight as it is incorporated into the analysis of people and process; price at the share-class level (where applicable) is directly subtracted from an expected gross alpha estimate derived from the analysis of the other pillars. The impact of the weighted pillar scores for people, process and parent on the final Analyst Rating is further modified by a measure of the dispersion of historical alphas among relevant peers. The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. For active funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that an active fund will be able to deliver positive alpha net of fees relative to the standard benchmark index assigned to the Morningstar category. The level of the rating relates to the level of expected positive net alpha relative to Morningstar category peers. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months. Click here for more detailed information about Morningstar’s Analyst Rating, including its methodology.