Small Cap Value Fund

Ticker: ARTVX     Availability: Closed to most new investors
CUSIP: 04314H501   Expense Ratio: 1.19% (for the 12 months ended 9/30/07)
Inception: 9/29/97  
Custom View: Performance
  Data/Statistics
  Fund Managers
Font Size:
PROCESS & CURRENT INFORMATION
Process Highlights
Artisan Small Cap Value Fund uses a bottom-up investment process to construct a diversified portfolio of U.S. small-cap value companies that the investment team believes are undervalued, in sound financial condition and have attractive business economics. The team believes companies with these characteristics are less likely to experience eroding values over the long-term.
Attractive Valuation - The team values a business using what it believes are reasonable expectations for the long-term earnings power and capitalization rates of that business. This results in a range of values for the company that the team believes would be reasonable. The team generally will purchase a security if the stock price falls below or toward the lower end of that range.

Sound Financial Condition - The team favors companies with an acceptable level of debt and positive cash flow. At a minimum, the team tries to avoid companies that have so much debt that management may be unable to make decisions that would be in the best interests of the company's shareholders.

Attractive Business Economics - The team favors cash-producing businesses that it believes are capable of earning acceptable returns on capital over the company's business cycle.
The team will not initiate a position in a company unless it has a market capitalization below $2.0 billion at the time of purchase.
Current Information

"Q&A with Scott Satterwhite (January 29, 2008): When an idea comes up, we all do a bit of work on it, asking questions, challenging the idea…"

"MONTHLY COMMENTARY: Nearly every sector in the Russell 2000® Value Index advanced during the month. The energy and materials sectors led, while the consumer staples and healthcare sectors failed to keep pace with the overall market. In the Fund, good stock selection in the industrials and technology sectors..."

"QUARTERLY PORTFOLIO MANAGER COMMENTARY: We believe our continued focus on companies in sound financial condition with attractive business economics and undemanding valuations has been instrumental in helping us retain capital in the declining market..."


Prospectus | Important Fund Risk Disclosure | Index Definitions
 
PERFORMANCE  as of 3/31/08
 
  NAV1 Change
($)		 Change
(%)		 PERFORMANCE TO DATE2
MTD YTD
Small Cap Value $14.59 $0.12 0.83% 1.96% 5.27%
Historical NAVs
  
1Net Asset Value (NAV)
2Fund performance is not annualized.

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 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. Returns for periods less than one year are not annualized. 
Morningstar Rating™
as of 4/30/08
Period Rating Funds in Category
3 Yr 338
5 Yr 267
10 Yr 102
Overall Rating 338
Ratings are based on risk-adjusted returns and are historical and do not represent future results. The Fund is rated within Morningstar’s Small Value Category. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-year, five-year, and ten-year (if applicable) Morningstar Ratings metrics.
Lipper Ranking
as of 3/31/08
Period Rank Funds in Category
1 Yr #65 306
3 Yr #43 240
5 Yr #33 186
10 Yr #2 83
Since Inception 9/29/97 #2 64
Rankings are based on total return and are historical and do not represent future results. The Fund is ranked within Lipper Inc.'s Small Cap Value category.
*Lipper Rankings inception date: 9/29/1997.
Morningstar data© 2008, Morningstar, Inc. All Rights Reserved. Morningstar data 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. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ which is based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance, including the effects of sales charges, loads, and redemption fees, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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.
  Average Annual Total Returns
Fund/Index YTD1 3 Mo1 1 Yr 3 Yr 5 Yr 10 Yr Since
Inception2
Small Cap Value 3.25% 5.07% –8.59% 10.76% 16.16% 10.85% 11.80%
Russell 2000® Value Index –3.57% 0.56% –15.13% 7.29% 14.08% 7.74% 8.39%
Russell 2000® Index –6.12% 0.75% –10.96% 8.62% 13.76% 5.33% 5.76%
Lipper Small-Cap Value Funds Index –3.31% 1.17% –12.60% 7.71% 15.02% 7.99% 8.39%
Source: Artisan Partners/Russell/Lipper
1Returns for periods less than one year are not annualized. 2Fund Inception date: 9/29/97.
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 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. Returns for periods less than one year are not annualized. 
Morningstar Rating™
as of 4/30/08
Period Rating Funds in Category
3 Yr 338
5 Yr 267
10 Yr 102
Overall Rating 338
Ratings are based on risk-adjusted returns and are historical and do not represent future results. The Fund is rated within Morningstar’s Small Value Category. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-year, five-year, and ten-year (if applicable) Morningstar Ratings metrics.
Lipper Ranking
as of 3/31/08
Period Rank Funds in Category
1 Yr #65 306
3 Yr #43 240
5 Yr #33 186
10 Yr #2 83
Since Inception 9/29/97 #2 64
Rankings are based on total return and are historical and do not represent future results. The Fund is ranked within Lipper Inc.'s Small Cap Value category.
*Lipper Rankings inception date: 9/29/1997.
Morningstar data© 2008, Morningstar, Inc. All Rights Reserved. Morningstar data 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. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ which is based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance, including the effects of sales charges, loads, and redemption fees, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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.
  Average Annual Total Returns
Fund/Index YTD1 3 Mo1 1 Yr 3 Yr 5 Yr 10 Yr Since
Inception2
Small Cap Value –1.08% –1.08% –10.18% 6.37% 16.88% 10.77% 11.45%
Russell 2000® Value Index –6.53% –6.53% –16.88% 4.33% 15.45% 7.46% 8.14%
Russell 2000® Index –9.90% –9.90% –13.00% 5.06% 14.90% 4.96% 5.40%
Lipper Small-Cap Value Funds Index –6.49% –6.49% –13.51% 4.56% 16.23% 7.74% 8.11%
Source: Artisan Partners/Russell/Lipper
1Returns for periods less than one year are not annualized. 2Fund Inception date: 9/29/97.
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 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. Returns for periods less than one year are not annualized. 
Morningstar Rating™
as of 4/30/08
Period Rating Funds in Category
3 Yr 338
5 Yr 267
10 Yr 102
Overall Rating 338
Ratings are based on risk-adjusted returns and are historical and do not represent future results. The Fund is rated within Morningstar’s Small Value Category. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-year, five-year, and ten-year (if applicable) Morningstar Ratings metrics.
Lipper Ranking
as of 3/31/08
Period Rank Funds in Category
1 Yr #65 306
3 Yr #43 240
5 Yr #33 186
10 Yr #2 83
Since Inception 9/29/97 #2 64
Rankings are based on total return and are historical and do not represent future results. The Fund is ranked within Lipper Inc.'s Small Cap Value category.
*Lipper Rankings inception date: 9/29/1997.
Morningstar data© 2008, Morningstar, Inc. All Rights Reserved. Morningstar data 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. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ which is based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance, including the effects of sales charges, loads, and redemption fees, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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.
PERFORMANCE  as of 3/31/08

  Average Annual Total Returns
Fund/Index YTD1 3 Mo1 1 Yr 3 Yr 5 Yr 10 Yr Since
Inception2
Small Cap Value –1.08% –1.08% –10.18% 6.37% 16.88% 10.77% 11.45%
Russell 2000® Value Index –6.53% –6.53% –16.88% 4.33% 15.45% 7.46% 8.14%
Russell 2000® Index –9.90% –9.90% –13.00% 5.06% 14.90% 4.96% 5.40%
Lipper Small-Cap Value Funds Index –6.49% –6.49% –13.51% 4.56% 16.23% 7.74% 8.11%
Source: Artisan Partners/Russell/Lipper
1Returns for periods less than one year are not annualized. 2Fund Inception date: 9/29/97.
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 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. Returns for periods less than one year are not annualized. 


PERFORMANCE  as of 4/30/08

  Average Annual Total Returns
Fund/Index YTD1 3 Mo1 1 Yr 3 Yr 5 Yr 10 Yr Since
Inception2
Small Cap Value 3.25% 5.07% –8.59% 10.76% 16.16% 10.85% 11.80%
Russell 2000® Value Index –3.57% 0.56% –15.13% 7.29% 14.08% 7.74% 8.39%
Russell 2000® Index –6.12% 0.75% –10.96% 8.62% 13.76% 5.33% 5.76%
Lipper Small-Cap Value Funds Index –3.31% 1.17% –12.60% 7.71% 15.02% 7.99% 8.39%
Source: Artisan Partners/Russell/Lipper
1Returns for periods less than one year are not annualized. 2Fund Inception date: 9/29/97.
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 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. Returns for periods less than one year are not annualized. 


PERFORMANCE  as of 5/8/08

 
  NAV1 Change
($)		 Change
(%)		 PERFORMANCE TO DATE2
MTD YTD
Small Cap Value $14.59 $0.12 0.83% 1.96% 5.27%
Historical NAVs
  
1Net Asset Value (NAV)
2Fund performance is not annualized.

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 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. Returns for periods less than one year are not annualized. 


Morningstar Rating™
as of 4/30/08
Period Rating Funds in Category
3 Yr 338
5 Yr 267
10 Yr 102
Overall Rating 338
Ratings are based on risk-adjusted returns and are historical and do not represent future results. The Fund is rated within Morningstar’s Small Value Category. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-year, five-year, and ten-year (if applicable) Morningstar Ratings metrics.
Lipper Ranking
as of 3/31/08
Period Rank Funds in Category
1 Yr #65 306
3 Yr #43 240
5 Yr #33 186
10 Yr #2 83
Since Inception 9/29/97 #2 64
Rankings are based on total return and are historical and do not represent future results. The Fund is ranked within Lipper Inc.'s Small Cap Value category.
*Lipper Rankings inception date: 9/29/1997.
Morningstar data© 2008, Morningstar, Inc. All Rights Reserved. Morningstar data 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. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ which is based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance, including the effects of sales charges, loads, and redemption fees, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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.
Prospectus | Important Fund Risk Disclosure | Index Definitions
 
DATA/STATISTICS  as of 3/31/08
Market Cap Distribution1
% of total portfolio equities
$ in billions Fund R2000V2
2.0 + 8.4 10.9
1.5 – 2.0 9.8 13.7
1.0 – 1.5 28.9 23.5
500 – 1.0 36.8 30.8
0 – 500 16.1 21.1
Total 100.0% 100.0%


Top 10 Holdings
% of total portfolio
Quanex Corporation 3.7
Hilb Rogal & Hobbs Company 2.7
Orbotech, Ltd. 2.7
Stewart Information Services Corporation 2.4
Ethan Allen Interiors, Inc. 2.3
RPC, Inc. 2.3
CACI International Inc 2.1
Arkansas Best Corporation 1.9
Grey Wolf, Inc. 1.9
Sanderson Farms, Inc. 1.9
Total 23.9%
Holdings: Current | Historical
For the purposes of determining the Fund's holdings, securities of the same issuer are aggregated to determine the weight in the Fund.
Characteristics
Distribution Information Select Year
Median Market Cap 1 $834.6 million
Weighted Avg. Market Cap1 $1.1 billion
Median Price/Book Value1 1.6X
Weighted Avg. P/E (FY1)1 13.8X
Weighted Avg. P/E (FY2)1 12.0X
Number of Holdings 89
Portfolio Turnover Rate3 72.38%
Cash (% of total porfolio) 7.4%
Total Net Assets $1.7 billion


Sector Diversification4
% of total portfolio equities
  Fund
Consumer Discretionary
12.2
Consumer Staples
2.0
Energy
15.9
Financials
9.3
Healthcare
7.0
Industrials
14.5
Information Technology
30.9
Materials
3.9
Telecommunication Services
<0.1
Utilities
4.3
Total 100.0%


1 Source: FactSet/Russell/Artisan Partners
2 Russell 2000® Value Index
3 Audited. For the 12 months ended 9/30/07.
4 Source: FactSet(GICS)/Artisan Partners
Prospectus | Important Fund Risk Disclosure | Index Definitions | Data/Statistics Disclosure
 
FUND MANAGERS



Scott C. Satterwhite

Scott C. Satterwhite, CFA
Mr. Satterwhite is a Managing Director of Artisan Partners Limited Partnership and has managed Artisan Small Cap Value Fund since inception. He has also been Portfolio Co-Manager of Artisan Mid Cap Value Fund since November 2001 and Artisan Opportunistic Value Fund since inception.

Prior to joining Artisan Partners in May 1997, Mr. Satterwhite was Senior Vice President and Portfolio Manager at Wachovia Corporation responsible for management of assets of over $1.5 billion. Mr. Satterwhite managed the Biltmore Special Values Fund from August 1993 through May 1997 in addition to being a personal trust Portfolio Manager since 1984 and managing the Georgia Personal Trust Portfolio Group at Wachovia since 1991.

Mr. Satterwhite holds a B.A. in Economics from The University of the South and an M.B.A. from Tulane University.

James C. Kieffer

James C. Kieffer, CFA
Mr. Kieffer is a Managing Director of Artisan Partners Limited Partnership, and has been Portfolio Co-Manager of Artisan Small Cap Value Fund since July 2000. He has also been Portfolio Co-Manager of Artisan Mid Cap Value Fund since November 2001 and Artisan Opportunistic Value Fund since inception. Mr. Kieffer was an analyst working with Mr. Satterwhite on Artisan Small Cap Value Fund from inception through June 2000.

Prior to joining Artisan Partners, Mr. Kieffer was a research analyst at the investment firm McColl Partners. Mr. Kieffer began his investment career at Wachovia Corporation working with Scott Satterwhite from 1989 to 1996, initially as a Personal Trust Portfolio Manager and later as a general equities and small-cap value research analyst in the institutional portfolio group.

Mr. Kieffer holds a B.A. degree in Economics from Emory University.

George O. Sertl

George O. Sertl, CFA
Mr. Sertl has been Portfolio Co-Manager of Artisan Small Cap Value Fund and Artisan Mid Cap Value Fund since May 2006. Mr. Sertl has co-managed Artisan Opportunistic Value Fund since inception. Prior to that he was an analyst working with Mr. Satterwhite and Mr. Kieffer.

Prior to joining Artisan Partners, Mr. Sertl was a research analyst at Schwartz Investment Counsel. Mr. Sertl began his investment career at Pauli & Company working as a research analyst in 1992.

Mr. Sertl holds a B.A. in Economics and History from the University of Richmond and an M.A. in Economics from St. Louis University.

 
Prospectus | Important Fund Risk Disclosure
This material is not an offer of any mutual funds mentioned other than Artisan Funds.
Important Fund Risk Disclosure

Stocks of smaller companies tend to be more volatile and less liquid than those of large companies, have underperformed the stocks of larger companies during some periods and tend to have a shorter history of operations than larger companies. The Fund invests in value stocks, which 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.



Important Index Disclosure

An investment can not be made directly into an index.

The Russell 2000® Index is an unmanaged, market-weighted index of about 2,000 small U.S. companies. Its returns include net reinvested dividends but, unlike the Fund returns, do not reflect the payment of sales commissions or other expenses incurred in the purchase or sale of the securities included in the Index.

The Russell 2000® Value Index is an unmanaged, market-weighted index of those small companies included in the Russell 2000® Index with lower price-to-book ratios and lower forecasted growth values. Its returns include net reinvested dividends but, unlike Fund returns, do not reflect the payment of sales commissions or other expenses incurred in the purchase or sale of the securities included in the Index.

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 Distributors LLC. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in Artisan Distributors’ presentation thereof.

The Lipper Small-Cap Value Funds Index is an unmanaged index that reflects the net asset value weighted return of 30 of the largest small-cap value funds tracked by Lipper, including Artisan Small Cap Value Fund. Its returns include net reinvested dividends.



Data/Statistics Disclosure

The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) and is licensed for use by Artisan Partners Limited Partnership. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages