Investment Process

The investment team seeks to invest in cash-producing businesses in strong financial condition that are selling at undemanding valuations.

Attractive Valuation

  • Distinct discount to intrinsic value
  • Low expectations
  • Favorable risk/reward

Sound Financial Condition

  • Focus on financial flexibility and liquidity
  • Evaluate on- and off-balance sheet liabilities
  • Allows management to pursue value-enhancing initiatives

Attractive Business Economics

  • Focus on free cash flow and return on capital capabilities
  • Ability to grow underlying business value
  • Avoid “value traps”

In-depth Investment Process

 

    Other Funds Managed

    Investment Results (%)

    As of 30 April 2019 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
    Advisor Class: APDLX 5.44 19.42 5.70 9.98 6.99 12.25 6.89
    Russell 1000® Value Index 3.55 15.90 9.06 10.97 8.27 13.76 6.98
    Russell 1000® Index 4.04 18.60 13.33 14.82 11.41 15.39 8.76
    As of 31 March 2019 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
    Advisor Class: APDLX 13.26 13.26 1.26 10.08 6.12 13.28 6.50
    Russell 1000® Value Index 11.93 11.93 5.67 10.45 7.72 14.52 6.74
    Russell 1000® Index 14.00 14.00 9.30 13.52 10.63 16.05 8.48

    Calendar Year Returns (%)

    2014 2015 2016 2017 2018
    Advisor Class: APDLX 4.96 -8.94 29.13 16.11 -14.73
    Russell 1000® Value Index 13.45 -3.83 17.34 13.66 -8.27
    Russell 1000® Index 13.24 0.92 12.05 21.69 -4.78
    Returns for periods less than one year are not annualized. Class inception: Investor (27 March 2006); Advisor (1 April 2015). For the period prior to inception, Advisor Class performance is the Investor Class’s return for that period (“Linked Performance”). Linked Performance has not been restated to reflect expenses of the Advisor Class and the share class’s returns during that period would be different if such expenses were reflected. 

    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. 

    Expense Ratio

      Gross Net
    Annual Report 30 September 2018 0.89% 0.88%
    Prospectus 30 September 2018 0.90% 0.89%

    Expense Ratio Disclosure

    Net expenses reflect a contractual expense limitation agreement in effect through 31 January 2020. See prospectus for further details. 

    Top 10 Holdings
    (% of total portfolio as of 30 April 2019)
    Alphabet Inc (Communication Services) 4.6
    Berkshire Hathaway Inc (Financials) 4.5
    Apple Inc (Information Technology) 4.1
    Citigroup Inc (Financials) 3.8
    NXP Semiconductors NV (Information Technology) 3.6
    Comcast Corp (Communication Services) 3.4
    Air Lease Corp (Industrials) 3.3
    Cisco Systems Inc (Information Technology) 3.2
    Facebook Inc (Communication Services) 3.2
    Synchrony Financial (Financials) 3.1
    Total 36.9%
    View Full Holdings Historical Holdings
    Portfolio Statistics
    (as of 30 April 2019)
    Median Market Cap (Billions) $48.9
    Weighted Avg. Market Cap (Billions) $187.2
    Weighted Harmonic Avg. P/E (FY1) 13.0X
    Weighted Harmonic Avg. P/E (FY2) 11.7X
    Median Price/Book Value 2.0X
    Median ROE 14.2%
    Median Fixed Charge Coverage Ratio 6.4X
    Active Share 85.1%
    Portfolio Turnover Rate 24.5%
    Number of Securities 39
    Cash (% of total portfolio) 6.0%
    Non U.S. Equities (% of total portfolio) 14.1%
    Market Cap Distribution
    (% of total portfolio equities as of 30 April 2019)

    $ in billions
    225.0+ 20.9
    100.0–225.0 18.9
    40.0–100.0 22.2
    15.0–40.0 18.2
    0.0–15.0 19.8
    TOTAL 100.0%
    Sector Diversification
    (% of total portfolio equities as of 30 April 2019)
    Communication Services 15.7
    Consumer Discretionary 10.1
    Consumer Staples
    Energy 5.2
    Financials 23.8
    Health Care 9.2
    Industrials 11.6
    Information Technology 15.9
    Materials 8.5
    Real Estate
    Utilities
    Total 100.0%
    The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
    • James C. Kieffer, CFA
    • Portfolio Manager
    • 30Years Investment
      Experience
    • Thomas A. Reynolds IV
    • Portfolio Manager
    • 20Years Investment
      Experience
    • Daniel L. Kane, CFA
    • Portfolio Manager
    • 21Years Investment
      Experience
    • Craig Inman, CFA
    • Portfolio Manager
    • 20Years Investment
      Experience

    Portfolio Manager Viewpoints

    • Video Update—Jim Kieffer, U.S. Value Team
    • Watch Now
    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.  Value 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/Russell. Data & Statistics Sources: Artisan Partners/FactSet/Russell/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 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. Price-to-Book Ratio (P/B Ratio) is a valuation measure used to compare a stock's market value to its book value. Return on Equity (ROE) is a profitability ratio that measures the amount of net income returned as a percentage of shareholders equity. 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. Free Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. Return on Capital (ROC) is a measure of how effectively a company uses the money (borrowed or owned) invested in its operations. 

    Russell 1000® Index measures the performance of roughly 1,000 US large-cap companies. Russell 1000® Value Index measures the performance of US large-cap companies with lower price/book ratios and forecasted growth values. The index(es) are unmanaged; include net reinvested dividends; do not reflect fees or expenses; and are not available for direct investment. 

    Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. 

    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.