Good Environment for Growth Stocks
This video represents the views of the portfolio manager as of 10-Feb-12.The portfolio manager’s views are subject to change and the Fund disclaims any obligation to advise investors of such changes. Artisan Partners is not responsible for and cannot guarantee the accuracy or completeness of any statement in the discussion.
The historical premium for growth over value is based off of the average historical price to earnings ratios of the Russell 1000® Growth vs. the Russell 1000® Value Indexes.
For important fund performance and disclosures, see below.
Average annual total returns for the fund and benchmark as of 29-Feb-12:
Artisan Growth Opportunities Fund – ARTRX (Inception 22-Sep-08): 3.74% (1YR), 32.04% (3YR), 9.43% (Since Inception). MSCI All Country World Index: -1.49% (1YR), 23.71% (3YR), 3.70% (Since Inception).
Artisan Mid Cap Fund – ARTMX (Inception 27-Jun-97): 10.29% (1YR), 35.93% (3YR), 8.78% (5YR), 8.67% (10YR), 14.21% (Since Inception). Russell Midcap®
Growth Index: 3.83% (1YR), 32.17% (3YR), 4.09% (5YR), 7.47% (10YR), 6.76% (Since Inception). Russell Midcap®
Index: 2.59% (1YR), 31.98% (3YR), 2.73% (5YR), 8.24% (10YR), 8.47% (Since Inception).
Artisan Small Cap Fund – ARTSX (Inception 28-Mar-95): 16.01% (1YR), 38.14% (3YR), 4.46% (5YR), 7.13% (10YR), 8.06% (Since Inception). Russell 2000®
Growth Index: 2.38% (1YR), 31.21% (3YR), 3.93% (5YR), 6.67% (10YR), 6.11% (Since Inception). Russell 2000®
Index: -0.15% (1YR), 29.48% (3YR), 1.83% (5YR), 7.00% (10YR), 8.38% (Since Inception).
Average annual total returns for the fund and benchmark as of 31-Dec-11:
Artisan Growth Opportunities Fund – ARTRX (Inception 22-Sep-08): -6.56% (1YR), 21.00% (3YR), 4.60% (Since Inception). MSCI All Country World Index: -7.35% (1YR), 12.01% (3YR), 0.59% (Since Inception).
Artisan Mid Cap Fund – ARTMX (Inception 27-Jun-97): -2.08% (1YR), 24.63% (3YR), 5.56% (5YR), 6.04% (10YR), 13.11% (Since Inception). Russell Midcap®
Growth Index: -1.65% (1YR), 22.06% (3YR), 2.44% (5YR), 5.29% (10YR), 6.00% (Since Inception). Russell Midcap®
Index: -1.55% (1YR), 20.17% (3YR), 1.41% (5YR), 6.99% (10YR), 7.83% (Since Inception).
Artisan Small Cap Fund – ARTSX (Inception 28-Mar-95): 6.99% (1YR), 22.95% (3YR), 1.49% (5YR), 4.41% (10YR), 7.19% (Since Inception). Russell 2000®
Growth Index: -2.91% (1YR), 19.00% (3YR), 2.09% (5YR), 4.48% (10YR), 5.51% (Since Inception). Russell 2000®
Index: -4.18% (1YR), 15.63% (3YR), 0.15% (5YR), 5.62% (10YR), 7.87% (Since Inception).
Expense Ratio is for the fiscal year ended 30-Sep-11.
Artisan Growth Opportunities Fund’s expense ratio is 1.40%.
Artisan Mid Cap Fund’s expense ratio is 1.34%. The Fund’s direct operating expenses are 1.24%, which is reflected in the Fund’s "Financial Highlights" in the statutory prospectus and financial statements. The expense ratio noted above includes "Acquired Fund Fees and Expenses," which are indirect expenses the Fund may incur from investing in an investment company (acquired fund); such indirect expenses are not paid from the Fund’s assets but are reflected in the return realized by the Fund on its investment in the acquired funds.
Artisan Small Cap Fund’s expense ratio is 1.66%. The Fund’s direct operating expenses are 1.29%, which is reflected in the Fund’s “Financial Highlights” in the statutory prospectus and financial statements. The expense ratio noted above includes “Acquired Fund Fees and Expenses,” which are indirect expenses the Fund may incur from investing in an investment company (acquired fund); such indirect expenses are not paid from the Fund’s assets but are reflected in the return realized by the Fund on its investment in the acquired funds.
Source: Artisan Partners/Russell/MSCI. The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment in the Fund 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 the performance data quoted. For current to most recent month-end performance information, call 800.344.1770. The performance information shown for Artisan Growth Opportunities does not reflect the deduction of a 2% redemption fee on shares held by an investor for 90 days or less and, if reflected, the fee would reduce the performance quoted. Artisan Growth Opportunities Fund’s performance information reflects Artisan Partners’ agreement to limit the Fund’s expenses and has had a material impact on the Fund’s performance, which would have been lower in its absence.
Investors should consider carefully before investing the Fund’s investment objective, risks and charges and expenses. For a prospectus or summary prospectus, which contains that information and other information about the Fund, please call us at 800.344.1770. Please read the prospectus or summary prospectus carefully before you invest or send money.
Artisan Growth Opportunities, Mid Cap and Small Cap Funds: Growth securities may underperform other asset types during a given period. Artisan Growth Opportunities and Mid Cap Funds: 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 medium-sized companies tend to be more volatile and less liquid than those of large companies, may have underperformed the securities of large companies during some periods and tend to have a shorter history of operations than large companies. Artisan Small Cap Fund: Securities of smaller companies tend to be more volatile and less liquid than those of large companies, may have underperformed the securities of large companies during some periods and tend to have a shorter history of operations than large companies.
A mutual fund’s NAV is the value of a single share and is computed daily using closing prices as of the NYSE closing time – usually 4:00 p.m. Eastern Time, but sometimes earlier. Securities for which prices are not readily available (such as when there are significant changes in one or more U.S. market indices) are valued at a fair value under the Funds’ Valuation Procedures as described in the Funds’ prospectus. When fair value pricing is employed, the value of a portfolio security used by the Fund to calculate its NAV may differ from (and consequently be higher or lower than) quoted or published prices for the same security. Fair value pricing is not employed by market indices.
Quotations of mutual fund performance are calculated using NAV and may be impacted by fair value pricing.
MSCI ACWI (All Country World Index) is an index designed to measure equity market performance in the global developed and emerging markets. The Russell Midcap®
Index is an index of about 800 medium-sized U.S. companies. The Russell Midcap®
Growth Index is an index of those medium-sized companies included in the Russell Midcap®
Index with higher price-to-book ratios and higher forecasted growth values. The Russell 2000®
Index is an index of about 2,000 small U.S. companies and the Russell 2000®
Growth Index is an index of those small companies included in the Russell 2000®
Index with higher price-to-book ratios and higher forecasted growth values. All indices are unmanaged, market-weighted indices whose returns include net reinvested dividends, but, unlike the Fund’s returns, do not reflect the payment of sales commissions or other expenses incurred in the purchase or sale of the securities included in the indices. An investment cannot be made directly into an index.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.mscibarra.com)
Russell Investment Group is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. The presentation may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a presentation of Artisan Partners. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in Artisan Partners’ presentation thereof.Weighted Harmonic Average P/E
(a measure of how expensive a stock is) is the harmonic average, which measures the price/earnings ratio of the Fund’s entire portfolio, excluding negative earners, weighted by the size of the company’s position within the portfolio. The earnings figures used for FY1 and FY2 are estimates for the current unreported fiscal year and for the next unreported fiscal year, respectively. Portfolio characteristics are intended to provide a general view of the entire portfolio, or Index, at a certain point in time. Characteristics are calculated using information obtained from various data sources. Artisan Partners excludes outliers when calculating portfolio characteristics. If information is unavailable for a particular security Artisan may use data from a related security to calculate portfolio characteristics. Price-to-Earnings (P/E)
is a valuation ratio of a company’s current share price compared to its per-share earnings.
In general, a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. Growth investing strategies typically seek out stocks with an earnings growth potential greater than the overall market. The market typically pays more for earnings growth, resulting in growth stocks having higher P/E ratios. Value investing strategies typically seek out stocks that are believed to be undervalued. Many value stocks are not rapidly growing earnings and thus have a lower P/E.
Our capital allocation process is designed to build position size according to our conviction. Portfolio holdings develop through three stages: Garden, Crop and Harvest. GardenSM
investments are situations where we believe we are right, but there is not clear evidence that the profit cycle has taken hold, so positions are small. CropSM
investments are holdings where we have gained conviction in the company’s profit cycle, so positions are larger. HarvestSM
investments are holdings that have exceeded our estimate of intrinsic value or holdings where there is a deceleration in the company’s profit cycle. HarvestSM
investments are generally being reduced or sold from the portfolios.
Artisan 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 Funds, is wholly owned by Artisan Partners Holdings LP.
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