Value Investing Webcast
||Value Investing (26-Jan-12).mp3
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This webcast represents the views and opinions of the portfolio managers as of 26-Jan-12. Those views may change at any time, and the Funds disclaim 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.
Clarifications: In 2006, right before the crisis, most banks where trading a low double-digit multiples. Marsh & McLennan was Artisan Global Value Fund’s second largest financials position as of 31-Dec-11. Artisan Global Value Fund owns four insurance companies as of 31-Dec-11 – Arch Capital Group, Marsh & McLennan, Chubb & Fidelity National Financial.
For important fund performance and disclosures, see below.
Average annual total returns for the fund and benchmark as of 31-Dec-11:
Artisan Value Fund – ARTLX (Inception 27-Mar-06): 5.49% (1YR), 16.75 % (3YR), 0.35% (5YR), 2.42 % (Since Inception). Russell 1000®
Value Index: 0.39% (1YR), 11.55% (3YR), -2.64% (5YR), 0.07% (Since Inception). Russell 1000®
Index: 1.50% (1YR), 14.81% (3YR), -0.02% (5YR), 1.68% (Since Inception).
Artisan Mid Cap Value Fund – ARTQX (Inception 28-Mar-01): 6.42% (1YR), 19.23% (3YR), 4.53% (5YR), 10.57% (10YR), 10.47% (Since Inception). Russell Midcap®
Value Index: -1.38% (1YR), 18.19% (3YR), 0.04% (5YR), 7.67% (10YR), 7.85% (Since Inception). Russell Midcap®
Index: -1.55% (1YR), 20.17% (3YR), 1.41% (5YR), 6.99% (10YR), 7.10% (Since Inception).
Artisan Small Cap Value Fund – ARTVX (Inception 29-Sep-97): -3.17% (1YR), 16.92% (3YR), 2.74% (5YR), 9.43% (10YR), 9.90% (Since Inception). Russell 2000®
Value Index: -5.50% (1YR), 12.36% (3YR), -1.87% (5YR), 6.40% (10YR), 6.50% (Since Inception). Russell 2000®
Index: -4.18% (1YR), 15.63% (3YR), 0.15% (5YR), 5.62% (10YR), 4.88% (Since Inception).
Artisan Global Value Fund – ARTGX (Inception 10-Dec-07): 1.50% (1YR), 16.29% (3YR), 1.71% (Since Inception).
MSCI All Country World Index: -7.35% (1YR), 12.01% (3YR), -5.71% (Since Inception).
Artisan International Value Fund – ARTKX (Inception 23-Sep-02): -7.14% (1YR), 13.80% (3YR), 0.46% (5YR), 13.84 % (Since Inception). MSCI EAFE Index: -12.14% (1YR), 7.65% (3YR), -4.72% (5YR), 7.79% (Since Inception). MSCI EAFE Value Index: -12.17% (1YR), 6.77% (3YR), -6.33% (5YR), 8.08% (Since Inception).
Expense Ratios are for the fiscal year ended 30-Sep-11.
Artisan Value Fund’s expense ratio is 1.10%. Artisan Mid Cap Value Fund’s expense ratio is 1.20%. Artisan Small Cap Value Fund’s expense ratio is 1.20%.
Artisan Global Value Fund’s gross expense ratio is 1.77%. Artisan Partners has contractually agreed to reimburse the Fund for any ordinary operating expenses in excess of 1.50% of its average daily net assets. The current contract continues through 1-Feb-13, at which time Artisan Partners will determine whether to renew, revise or discontinue it.
Artisan International Value Fund’s expense ratio is 1.24%. The Fund’s direct operating expenses are 1.18% 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/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 or visit www.artisanfunds.com.
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 Value, Mid Cap Value and Small Cap Value Funds: Value securities may underperform other asset types during a given period. Artisan Value Fund: 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. Artisan Value and Mid Cap Value Funds: 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 Value 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.
Artisan Global Value Fund & Artisan International Value Fund: Value securities may underperform other asset types during a given period. 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 International Value Fund: Securities of small-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.
The Russell 1000®
Value Index is an unmanaged, market-weighted index of those large companies included in the Russell 1000®
Index, an index of about 1,000 large U.S. companies, with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap®
Index is an index of about 800 medium-sized U.S. companies. The Russell Midcap®
Value Index is an index of those companies included in the Russell Midcap®
Index with lower price-to-book ratios and lower forecasted growth values. The Russell 2000®
Index is an index of about 2,000 small U.S. companies. The Russell 2000®
Value Index is an index of those small companies included in the Russell 2000®
Index with lower price-to-book ratios and lower forecasted growth values. MSCI ACWI (All Country World) Index is an index designed to measure equity market performance in the global developed and emerging markets. The MSCI EAFE Index is an index of companies in developed markets, excluding the U.S. and Canada. The MSCI EAFE Value Index is an index of companies in developed markets, excluding the U.S. and Canada, that exhibit value investment style characteristics according to MSCI’s methodology.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.
This discussion is not intended to be a recommendation of any individual security. For the purpose of determining the Fund’s holdings, securities of the same issuer are aggregated to determine the weight in the Fund. These holdings comprise the following percentages of Artisan Value Fund’s total net assets as of 31-Dec-11: Oracle Corp 3.1%; The Chubb Corp 3.0%; Arch Capital Group Ltd 2.9%; Apple Inc 7.1%; Wal-Mart Stores Inc 2.4%; Unilever PLC 2.0%. These holdings comprise the following percentages of Artisan Mid Cap Value Fund’s total net assets as of 31-Dec-11: Arch Capital Group Ltd 1.9%. These holdings comprise the following percentages of Artisan Global Value Fund’s total net assets as of 31-Dec-11: Oracle Corp 1.8%; Johnson & Johnson 3.3%; Marsh & McLennan Cos Inc 3.7%; The Chubb Corp 3.4%; Arch Capital Group Ltd 4.0%; ING Groep NV 1.1%; Lloyds Banking Group PLC 0.9%; Google Inc 4.2%; Wal-Mart Stores Inc 3.3%; Diageo PLC 3.4%; Unilever PLC 3.3%; Compass Group PLC 4.4%; Mastercard Inc 5.1%. These holdings comprise the following percentages of Artisan International Value Fund’s total net assets as of 31-Dec-11: Arch Capital Group Ltd 4.5%; ING Groep NV 2.2%; Lloyds Banking Group PLC 1.2%; Diageo PLC 3.0%; Unilever PLC 2.8%; Compass Group PLC 5.8%.
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.
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)
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.Margin of Safety
is the difference between the market price and the estimated intrinsic value of a business. The concept was developed by Benjamin Graham and is believed to be an important measure of risk and appreciation potential. Artisan’s U.S. value team also incorporates a company’s financial strength and certain business quality measures into its margin of safety estimates. A large margin of safety helps guard against permanent capital loss and improves the probability of capital appreciation; however, a margin of safety does not prevent market loss. All investments contain risk and may lose value. Alpha
is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha. 10-K
is a comprehensive summary report of a company’s performance that must be submitted annually to the Securities and Exchange Commission. It includes information such as company history, organizational structure, equity, holdings, earnings per share, subsidiaries, etc. 10-Q
is a comprehensive report of a company’s performance that must be submitted quarterly by all public companies to the Securities and Exchange Commission. In the 10-Q, firms are required to disclose relevant information regarding their financial position. Price-to-Earnings (P/E)
is a valuation ratio of a company’s current share price compared to its per-share earnings. Operating Cash Flow
is the cash generated from the operations of a company, generally defined as revenues less all operating expenses, but calculated through a series of adjustments to net income. Capital Expenditure
is money spent to acquire or upgrade physical assets such property, industrial buildings or equipment. Free Cash Flow
is a measure of financial performance calculated as operating cash flow minus capital expenditures. Return on Capital
is a measure of how effectively a company uses the money (borrowed or owned) invested in its operations. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
is an indicator of a company’s financial performance. It is calculated by looking at earnings before the deduction of interest expenses, taxes, depreciation and amortization. Free Cash Flow Yield
is an overall return evaluation ratio of a stock, which standardizes the free cash flow per share a company is expected to earn against its market price per share. The ratio is calculated by taking the free cash flow per share divided by the share price. Dividend Yield
is a financial ratio that shows how much a company pays out in dividends each year relative to its share price. Real Yield
is the nominal, or stated, interest rate minus the inflation rate. Negative real yields result from the combination of a zero nominal rate along with positive inflation expectations. A Bond
is a debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing. The Federal government, states, cities, corporations and many other types of institutions sell bonds. A bond is generally a promise to repay the principal along with interest on a specified date. Dividend Paying Stocks
are stocks of companies that choose to distribute dividends, which are taxable payments given by a company to its shareholders out of the company’s current or retained earnings. Companies have no legal obligation to pay dividends and the continuation of current dividend payments is not guaranteed. Cost of Debt
is the effective rate that a company pays on its current debt. Book Value
is the value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated depreciation. Tangible Book Value
is what common shareholders can expect to receive if the firm goes bankrupt and all of its assets are liquidated at their book values. Intangible assets, such as goodwill, are removed from this calculation because they cannot be sold during liquidation. Fixed Charge Coverage Ratio
is a ratio used to determine how easily a company can pay interest on outstanding debt. The fixed charge coverage ratio is calculated by dividing a company’s earnings before interest and taxes (EBIT) and fixed charges before tax of one period by the company’s interest expenses and fixed charges before tax of the same period. Return on Equity (ROE)
measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.
Established in 1988, the Morningstar Fund Manager of the Year award recognizes portfolio managers who demonstrate excellent investment skill and the courage to differ from the consensus to benefit investors. To qualify for the award, managers’ funds must have not only posted impressive returns for the year, but the managers also must have a record of delivering outstanding long-term risk-adjusted performance and of aligning their interests with shareholders’. The Fund Manager of the Year award winners are chosen based on Morningstar’s proprietary research and in-depth qualitative evaluation by its fund analysts.
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.
2/10/12 – A12522L