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 sustainability risks, including ESG considerations, via incident-based data and empirical factors
  • Assess country-appropriate macroeconomic risks to which a company is exposed

Valuation

  • 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

 

Investment
Results (%)

As of 30 June 2021 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTZX 7.32 8.31 46.38 12.72 14.08 4.28 2.48
MSCI Emerging Markets Index 5.05 7.45 40.90 11.27 13.03 4.28 3.42
Investor Class: ARTZX (Linked) 6.35
MSCI Emerging Markets Index 7.08
As of 30 June 2021 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: ARTZX 7.32 8.31 46.38 12.72 14.08 4.28 2.48
MSCI Emerging Markets Index 5.05 7.45 40.90 11.27 13.03 4.28 3.42
Investor Class: ARTZX (Linked) 6.35
MSCI Emerging Markets Index 7.08

Calendar Year Returns (%)

2016 2017 2018 2019 2020
Investor Class: ARTZX 16.39 39.95 -15.57 19.80 20.76
MSCI Emerging Markets Index 11.19 37.28 -14.57 18.42 18.31
Returns for periods less than one year are not annualized. Artisan Sustainable 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. 

Ratings

Morningstar Overall RatingTM
As of 30 June 2021
   

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. 701 funds in the overall Diversified Emerging Markets category. View full Fund ratings. 

Expense Ratio

  Gross Net
Semi-Annual Report 31 March 2021 1.66% 1.35%
Prospectus 30 September 2020 1.73% 1.35%

Expense Ratio Disclosure

Net expenses reflect a contractual expense limitation agreement in effect through 31 Jan 2022. 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 30 June 2021)
Taiwan Semiconductor Manufacturing Co Ltd (Taiwan) 8.8
Samsung Electronics Co Ltd (Korea) 7.5
Alibaba Group Holding Ltd (China) 7.0
Zhuzhou CRRC Times Electric Co Ltd (China) 3.0
MercadoLibre Inc (Argentina) 3.0
E Ink Holdings Inc (Taiwan) 2.7
Prosus NV (Netherlands) 2.6
Estun Automation Co Ltd (China) 2.6
MediaTek Inc (Taiwan) 2.4
Polyus PJSC (Russia) 2.3
Total 41.9%
View Full Holdings Historical Holdings
Portfolio Statistics
(as of 30 June 2021)
Median Market Cap (USD Billions) $12.3
Weighted Avg. Market Cap (USD Billions) $163.6
Weighted Harmonic Avg. P/E (FY1) 16.9X
Weighted Avg. LT EPS Growth Rate (3-5 Yr) 29.8%
Weighted Avg. ROE 12.0%
Number of Securities 64
Off-Benchmark Exposure 31.5%
Small-Cap Exposure 9.2%
Portfolio Turnover Rate 21.6%
Cash (% of total portfolio) 3.2%
Region Allocation
(% of portfolio securities as of 30 June 2021)
Emerging Asia 63.5
Latin America 15.6
Europe, Middle East and Africa 15.4
Developed Markets 5.5
Total 100.0%
Top 10 Countries
(% of portfolio securities as of 30 June 2021)
China 25.1
Taiwan 15.6
Korea 11.8
Russia 8.9
India 8.2
Brazil 6.6
Argentina 3.6
Netherlands 2.7
Greece 2.1
Mexico 2.0
Sector Diversification
(% of portfolio securities as of 30 June 2021)
Consumer Goods 15.5
Extractives & Minerals Processing 10.1
Financials 16.8
Food & Beverage 3.0
Health Care 7.0
Infrastructure 3.0
Renewable Resources & Alternative Energy 1.3
Resource Transformation 7.0
Services 1.4
Technology & Communications 33.7
Transportation 1.3
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
  • 30Years Investment
    Experience
  • Intelligent Integration: Sustainable Investing in Emerging Markets
  • View PDF
  • ESG in Emerging Markets: A Differentiated Perspective
  • Watch Now
  • What Will Be Emerging Markets’ Next Evolution?
  • Watch Now
  • A Forward-Looking Approach to Sustainability
  • Watch Now
  • How Globalization and Global Trade Impact Emerging Markets
  • Watch Now
  • Corporate Governance Considerations in Emerging Markets
  • Watch Now
  • Are Negative Screens Valuable in Emerging Markets Investing?
  • Watch Now
Current and future portfolio holdings are subject to risk.  A non-diversified portfolio may invest a larger portion of assets in securities of a smaller number of issuers and performance of a single issuer may affect overall portfolio performance greater than in a diversified portfolio.  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. 

Assets under management include approximately $23 million (reported on a one-month lag) for which Artisan Partners provides investment models to managed account sponsors.

Performance Source: Artisan Partners/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. Sector Source: SASB. Sector exposure percentages reflect sector designations as currently classified by SICS. Data & Statistics Sources: Artisan Partners/MSCI. Portfolio turnover is reported as of the Fund’s fiscal year end. 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. Market Capitalization up to $2 billion. 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. 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.

© 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 Sustainable Industry Classification System (SICS®) is the exclusive intellectual property of Sustainability Accounting Standards Board (SASB). SICS is intended to group companies based on their shared sustainability-related risks and opportunities.