Artisan Developing World Fund

Transcription

1 Q Artisan Developing World Fund This is an offering of shares of an Artisan Fund and does not create a relationship between the investor and Artisan Partners. The Notes and Disclosures section of this presentation contains important information. Readers are encouraged to review it carefully.

2 Artisan Partners Developing World Team Stock Selection Overview Compounding Business Value We believe compounded business value drives long-term capital appreciation, and seek to optimize our stock selection process for challenges unique to emerging markets investing. Compounded business value Business Value Fundamental disruption Capital impairment Time For illustrative purposes only. ARTISAN PARTNERS For Financial Advisor Use Only. Not for Distribution to the Public. 1

3 Artisan Developing World Fund Selected Holdings Q Top Contributors HDFC Bank Facebook Alibaba Unilever Grupo Televisa HDFC staged a significant recovery, as demonetization-induced fears surrounding weaker net interest margins and lower asset growth proved largely unfounded. Facebook advanced reflecting ongoing share gains in digital advertising, strong engagement trends, and continued proliferation of Instagram as a growth engine for the company. Alibaba rose as results provided more evidence of the company s monetization capability, and of its progress in cloud-based initiatives. Unilever advanced following a takeover approach from Kraft-Heinz, which while rejected instilled renewed vigor into the company surrounding margin progress and cash return. Televisa rallied reflecting a strong advertising upfront season following a difficult 2016 for content, and lower capex guidance which should lead to improved returns and a more attractive free cash flow profile. Bottom Contributors Magnit China Biologic Matahari Al Tayyar Travel Mandiri Magnit declined as the company continued to battle a difficult macroeconomic environment that is hitting its core rural demographic particularly hard. China Biologic declined, perhaps reflecting slower topline expectations for 2017, or renewed enthusiasm for companies such as banks and insurers that could benefit from tighter Chinese interbank conditions. Matahari suffered from deterioration in the economic and competitive environment in Indonesia, which has helped to reinforce long-term concerns about the potential for e-commerce to impact department stores in Indonesia. Al Tayyar suffered from a muted recovery in corporate travel and a weak macro backdrop in Saudi Arabia, and also responded to renewed softness in energy prices. Mandiri was down marginally on concerns over asset quality, and continues to suffer from regulatory constraints such as lending caps which have pressured once-pristine returns. Source: Artisan Partners/FactSet. Past performance does not guarantee and is not a reliable indicator of future results. These securities made the greatest contribution to, or detracted most from, performance during the period. This is not a complete listing of portfolio activity. Upon request, Artisan will provide: (i) the calculation methodology and/or (ii) a list showing the contribution of each holding to overall performance during the measurement period. Securities of the same issuer are aggregated to determine the weight in the portfolio. The holdings mentioned above comprised the following average weights in the portfolio during the time period indicated: HDFC Bank Ltd 3.8%; Facebook Inc 3.8%; Alibaba Group Holding Ltd 4.1%; Unilever NV 3.2%; Grupo Televisa SAB 3.0% ; Magnit PJSC 4.3%; China Biologic Products Inc 2.6%; Matahari Department Store Tbk PT 1.2%; Al Tayyar Travel Group Holding Co P-Cert 0.7%; Bank Mandiri Persero Tbk PT 0.4%. The holdings mentioned above comprised the following weights in the portfolio as of 31 Mar 2017: HDFC Bank Ltd 3.2%; Facebook Inc 3.6%; Alibaba Group Holding Ltd 4.3%; Unilever NV 1.9%; Grupo Televisa SAB 2.9% ; Magnit PJSC 4.5%; China Biologic Products Inc 3.1%; Matahari Department Store Tbk PT 1.1%; Al Tayyar Travel Group Holding Co P-Cert 0.6%. For Financial Advisor Use Only. Not for Distribution to the Public. 2

4 Artisan Developing World Fund Investment Results Average Annual Total Returns 20% 15% 10% 5% 0% (%) as of 31 Mar 2017 QTD 1 YR Inception Investor Class: ARTYX Advisor Class: APDYX Institutional Class: APHYX MSCI Emerging Markets Index Expense Ratios (% Gross/Net) ARTYX APDYX APHYX Annual Report 30 Sep / / /--- Prospectus 30 Sep / / /--- 1 Reflects a contractual Fund expense reimbursement agreement in effect through 31 Jan See prospectus for more information. Past performance does not guarantee and is not a reliable indicator of future results. The investment return and principal value of an investment in the Fund will fluctuate, so that an investor s shares in the Fund, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For current to most recent month-end performance information, call Performance may reflect agreements to limit a Fund s expenses, which would reduce performance if not in effect. Source: Artisan Partners/MSCI. Returns less than one year are not annualized. Inception: 29 Jun ARTISAN PARTNERS For Financial Advisor Use Only. Not for Distribution to the Public. 3

5 Artisan Developing World Fund Risk Management Upside Capture, Downside Capture Upside Capture Average Up Month Downside Capture Average Down Month Artisan Developing World Fund 359bps -354bps MSCI Emerging Markets Index 377bps -446bps Difference -18bps +91bps Past performance does not guarantee and is not a reliable indicator of future results. Source: Artisan Partners/MSCI. As of 31 Mar Based on monthly returns for ARTYX (Investor Shares) beginning with July 2015, the first full month since inception. Upside/Downside Capture represents average monthly returns during months when the index was positive and negative, respectively. For Financial Advisor Use Only. Not for Distribution to the Public. 4

6 Artisan Partners Developing World Team Market Outlook US monetary policy China through lens of imbalances ARTISAN PARTNERS For Financial Advisor Use Only. Not for Distribution to the Public. 5

7 Q&A

8 Artisan Partners Developing World Team Notes and Disclosures Carefully consider the Fund s investment objective, risks and charges and expenses. This and other important information is contained in the Fund's prospectus and summary prospectus, which can be obtained by calling Read carefully before investing. These materials are presented in connection with an offer of the shares of a Fund in the series of Artisan Partners Funds, Inc. These materials are not an offer for any other mutual fund mentioned. A purchase of shares of an Artisan Partners Fund does not create an investment advisory relationship between the investor and Artisan Partners Limited Partnership, the investment adviser to the Fund. In addition to acting as investment adviser to the Fund, Artisan Partners provides institutional investment management services. 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. This summary represents the views of the portfolio managers as of 19 Apr Those views may change, and the Fund disclaims any obligation to advise investors of such changes. 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. TheMSCIdatamaynotbefurtherredistributedor used to create indices or financial products. This report is not approved or produced by MSCI. Holdings: For the purpose of determining the portfolio's holdings, securities of the same issuer are aggregated to determine the weight in the portfolio. For an index, the largest holdings are calculated at the security level and do not aggregate securities held by an issuer. Holdings information is not intended to represent or predict portfolio investment performance or as a recommendation of any individual security. Individual security examples may not be representative of the entire portfolio. This material is for informational purposes only and shall not be construed as investment or tax advice. Prospective investors should consult their financial and tax adviser before making investments in order to determine whether an investment will be suitable for them. In no event shall Artisan Partners have any liability for direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) losses or any other damages resulting from the use of this material. Artisan Partners Funds offered through Artisan Partners Distributors LLC (APDLLC), member FINRA. APDLLC is a wholly owned broker/dealer subsidiary of Artisan Partners Holdings LP. Artisan Partners Limited Partnership, an investment advisory firm and adviser to Artisan Partners Funds, is wholly owned by Artisan Partners Holdings LP Artisan Partners. All rights reserved. ARTISAN PARTNERS For Financial Advisor Use Only. Not for Distribution to the Public. 7