Investment Process

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

The investment team seeks to generate a portfolio current yield that is greater than or equal to two times the average current yield for stocks in the S&P 500® Index. 

Attractive Valuation

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

Sound Financial Condition

  • Focus on financial flexibility and liquidity
  • Seek to protect capital in difficult environments
  • 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

 

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Other Funds Managed

Investment
Results (%)

As of 30 April 2024 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: APFWX -2.69 2.04 8.42 1.52
S&P 500® Index -4.08 6.04 22.66 8.45
Dow Jones US Select Dividend Index -3.09 2.82 6.01 2.56
As of 31 March 2024 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Investor Class: APFWX 4.87 4.87 14.64 2.92
S&P 500® Index 10.56 10.56 29.88 10.99
Dow Jones US Select Dividend Index 6.10 6.10 9.73 4.22

Calendar Year Returns (%)

2019 2020 2021 2022 2023
Investor Class: APFWX 10.86
S&P 500® Index 26.29
Dow Jones US Select Dividend Index 1.53
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. 

Ratings

Morningstar Medalist RatingTM
As of 30 April 2024
Bronze

Analyst-Driven: 55%
Data Coverage: 88%

Morningstar Rating and Analyst Rating Disclosure

View Important Disclosures below for further details on Morningstar Medalist Rating™. 

Expense Ratio

  Gross Net
Annual Report 30 September 2023 9.07% 1.20%
Prospectus 30 September 2023 9.08% 1.21%

Expense Ratio Disclosure

Net expenses reflect a contractual expense limitation agreement in effect through 31 Jan 2025. See prospectus for further details. 

Top 10 Holdings
(% of total portfolio as of 30 April 2024)
Lamar Advertising Co (Real Estate) 3.7
Cable One Inc (Communication Services) 3.6
EOG Resources Inc (Energy) 3.0
Philip Morris International Inc (Consumer Staples) 2.9
Comcast Corp (Communication Services) 2.8
M&T Bank Corp (Financials) 2.7
Altria Group Inc (Consumer Staples) 2.6
WaFd Inc (Financials) 2.5
Heineken Holding NV (Consumer Staples) 2.5
Medtronic PLC (Health Care) 2.5
Total 28.9%
View Full Holdings Historical Holdings
Portfolio Statistics
(as of 30 April 2024)
Median Market Cap (Billions) $30.9
Weighted Avg. Market Cap (Billions) $80.1
Weighted Harmonic Avg. P/E (FY1) 14.9X
Weighted Harmonic Avg. P/E (FY2) 13.3X
Median Price/Book Value 2.1X
Median ROE 11.8%
Median Fixed Charge Coverage Ratio 4.9X
Active Share 92.8%
Number of Securities 65
Cash (% of total portfolio) 2.4%
Weighted Average Dividend Yield 3.4%
30-Day SEC Subsidized Yield (APFWX) 2.63%
30-Day SEC Unsubsidized Yield (APFWX) -4.98%
Market Cap Distribution
(% of portfolio securities as of 30 April 2024)

$ in billions
200.0+ 8.9
140.0–200.0 9.1
90.0–140.0 8.5
60.0–90.0 13.1
30.0–60.0 7.3
15.0–30.0 22.6
5.0–15.0 14.4
0.0–5.0 11.2
Not Applicable 4.9
TOTAL 100.0%
Sector Diversification
(% of portfolio securities as of 30 April 2024)
Communication Services 8.5
Consumer Discretionary 3.3
Consumer Staples 15.4
Energy 3.1
Financials 24.6
Health Care 8.3
Industrials 10.6
Information Technology 6.5
Materials
Real Estate 8.9
Utilities 10.9
Other
Total 100.0%
The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
  • Daniel L. Kane, CFA
  • Portfolio Manager
  • 26Years Investment
    Experience
  • Thomas A. Reynolds IV
  • Portfolio Manager
  • 25Years Investment
    Experience
  • Craig Inman, CFA
  • Portfolio Manager
  • 25Years Investment
    Experience
  • An interview with Portfolio Manager Dan Kane
  • View PDF
  • Value Income: Designed to Generate Sustainable and Premium Income
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  • Artisan Partners U.S. Value Team: An ESG Framework
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  • Value Income Series: An Equity Income Focus
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  • Value Income Series: The Genesis of Value Income
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  • Value Income Series: Flexibility to Invest in Different Parts of The Capital Structure
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  • Value Income Series: A Non-Formulaic Approach to Dividend Investing
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  • Value Income Series: Assessing Relative Value across The Capital Structure
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Current and future portfolio holdings are subject to risk. The value of portfolio securities selected by the investment team may rise or fall in response to company, market, economic, political, regulatory or other news, at times greater than the market or benchmark index. A portfolio’s environmental, social and governance (“ESG”) considerations may limit the investment opportunities available and, as a result, the portfolio may forgo certain investment opportunities and underperform portfolios that do not consider ESG factors. There is no guarantee that the companies in which the portfolio invests will declare dividends in the future or that dividends, if declared, will remain at current levels or increase over time. International. 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 and less developed markets, including frontier 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/S&P/S&P DJI. Data & Statistics Sources: Artisan Partners/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. 

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.

Weighted Average is the average of values weighted to the data set's composition. Median is the data's midpoint value. Market Cap (USD) is the aggregate value of all of a company's outstanding equity securities. 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. Return on Capital (ROC) is a measure of how effectively a company uses the money (borrowed or owned) invested in its operations. Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its share price. 30-Day SEC Yield is based on a formula specified by the SEC that calculates a fund's hypothetical annualized income, as a percentage of its assets. This hypothetical yield will differ from the fund's actual experience and as a result, income distributions from the fund may be higher or lower. 

S&P 500® Index measures the performance of 500 US companies focused on the large-cap sector of the market. The Dow Jones US Select Dividend Index measures the performance of the US's leading stocks by dividend yield. The index(es) are unmanaged; include net reinvested dividends; do not reflect fees or expenses; and are not available for direct investment. 

The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“S&P DJI”) and/or its affiliates and has been licensed for use.  Copyright © 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). None of S&P DJI, Dow Jones, their affiliates or third party licensors makes any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.

The Dow Jones US Select Dividend Index ("Index") is a product of S&P Dow Jones Indices LLC ("S&P DJI") and/or its affiliates and has been licensed for use. Copyright © 2024 S&P Dow Jones Indices LLC, a division of S&P Global, Inc.. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). None of S&P DJI, Dow Jones, their affiliates or third party licensors makes any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none shall have any liability for any errors, omissions, or interruptions of any index or the data included therein. 

The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to global.morningstar.com/managerdisclosures/.

The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate. 

© 2024 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.