5
Morningstar FundInvestor
June 2
014
Morningstar Analyst Rating
05-23-14
„
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
Positive
Positive
Positive
Positive
Neutral
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
18.53
18.85
15.35
14.92
16.85
14.33
10.23
13.86
18.08
17.25
17.61
16.08
Total Return %
-1.70
27.49
6.12
-3.17
17.69
40.24
-23.83
-5.98
19.11
11.06
21.15
40.54
+/-S&P 500
-6.67
-4.90
-9.88
-5.28
2.63
13.78
13.17
-11.47
3.32
6.15
10.27
11.86
+/-Russ 2000
0.32
-11.33
-10.23
1.01
-9.16
13.07
9.96
-4.41
0.74
6.51
2.82
-6.71
Income Return %
0.00
0.29
0.84
0.04
0.11
0.15
0.00
0.00
0.00
0.00
0.00
0.00
Capital Return %
-1.70
27.20
5.28
-3.21
17.58
40.09
-23.83
-5.98
19.11
11.06
21.15
40.54
Total Rtn % Rank Cat
68
94
98
48
96
18
4
47
28
8
52
51
Income $
0.00
0.04
0.13
0.01
0.02
0.02
0.00
0.00
0.00
0.00
0.00
0.00
Capital Gains $
0.00
0.66
0.36
1.35
0.00
0.00
0.32
3.09
2.47
2.32
1.78
0.20
Expense Ratio %
.
1.24
1.22
1.20
1.22
1.22
1.20
1.19
1.17
1.18
1.18
1.21
Income Ratio %
.
0.46
0.31
0.06
0.11
0.20
-0.16
-0.03
-0.09
-0.16
-0.17
-0.21
Turnover Rate %
.
27
28
47
37
63
75
72
59
56
41
12
Net Assets $mil
2,105
2,527
2,227
2,775
3,077
2,373
1,390
1,796
2,173
1,728
1,400
991
Performance
05-31-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2010
2011
2012
2013
2014
5.79 -9.56
8.32 13.57 17.69
9.44 -2.12 -20.78 14.10 -3.17
9.99 -6.89
-0.26 3.89
6.12
8.40 2.70
5.68 8.36 27.49
-0.28
. . . .
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500
2000
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
-0.48 -4.45
3.29
30 9,952
-0.22 -7.84
-0.12
78 9,978
11.71 -8.74
-5.08
96 11,171
5.65 -9.50
-6.08
97 11,793
14.23 -4.17
-5.09
97 19,449
9.00 1.23
0.41
43 23,674
11.02 6.44
3.07
18 47,975
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
4.42
96
1.17
63
13.41
94
0.72
60
7.38
53
1.49
89
Potential Capital Gain Exposure: 27% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
11.71
3 Yr
5.65
Low
-Avg
5 Yr
14.23
Low
-Avg
10 Yr
9.00
Avg
Avg
Incept
10.28
Other Measures
Standard Index
Best Fit Index
S&P 500 Mstar Small Core
Alpha
-11.2
-4.9
Beta
1.20
0.91
R-Squared
84
93
Standard Deviation
16.22
Mean
5.65
Sharpe Ratio
0.42
Morningstar’s Take
by Greg Carlson 05-23-14
Artisan Small Cap Value has slipped a notch, but it s
still a fine long-term holding.
The news at this closed fund hasn’t been good
lately. Bottom-decile showings in 2010, 2012, and 2013
have dented the fund s previously excellent record; its
annualized five-year return of 14.1% through May 20,
2014 (while solid on an absolute basis) lands in the
basement of the Morningstar Category of small-blend
as well as its previous category, small-value.
Meanwhile, lead manager Scott Satterwhite
announced in 2013 that he would retire in September
2016.
Poor recent relative performance isn t troubling on
its face. The managers typically hold sturdier fare than
most value investors, so the fund has historically
lagged in rallies like the one that has marked the past
five years. But two missteps by the team are
concerning. First, it failed to keep up with the changing
landscape in energy, leading to poor stock selection in
exploration and production firms, particularly in 2012.
Second, as the team found few compelling new ideas
due to rising valuations and was unwilling to hold a
big cash stake, it held on to a few pricey winners that
subsequently blew up, such as semiconductor firm
Ultratech UTEK. Thus, the fund s Morningstar Analyst
Rating has been lowered from Gold. However, it still
earns a very impressive Silver.
Satterwhite s 2016 retirement represents a
significant eventual loss; he founded the team in 1997
and owns a strong record both since the fund s
inception that year and in a previous five-year stint
running a small-value fund for Wachovia. But the team
is up to the task of carrying on without him.
Comanager James Kieffer (the lead on Gold-rated
Artisan Mid Cap Value ARTQX) has worked with
Satterwhite for 25 years, and George Sertl (the lead on
Silver-rated Artisan Value ARTLX) will have 16 years
tenure on the team when Satterwhite leaves. Dan
Kane, who joined the team in 2008, was named a
comanager in 2013 and will succeed Satterwhite in
the lead role. And analysts Tyler Hardt and Craig
Inman possess skills that mirror Satterwhite s
Address:
Artisan Funds Inc
Milwaukee, WI 53202
800-344-1770
Web Address:
Inception:
09-29-97
Advisor:
Artisan Partners Limited Partnership
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, CommonWealth NTF
Minimum Purchase:
$1000
Add: $0 IRA: $0
Min Auto Inv Plan:
$1000
Add: $50
Sales Fees:
No-load
Management Fee:
1.00% mx./0.93% mn.
Actual Fees:
Mgt:0.95% Dist:
.
Expense Projections:
3Yr:$393
5Yr:$681 10Yr:$1500
Income Distribution:
Annually
Data through May 31, 2014
Artisan Small Cap Value Investor
Ticker
Status Yield Total Assets
Mstar Category
ARTVX Limited 0.2% $2,426 mil
Small Blend
96% 99% 96% 94% 93% 94% 97% 91%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 05-14
Historical Profile
Return
Risk
Rating
Below Avg
Below Avg
Below Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
S&P 500
Performance Quartile
(within Category)
History
10.0
15.0
20.0
25.0
30.0
Portfolio Analysis
03-31-14
Share change since 12-13 Total Stocks:94 Sector
PE Tot Ret% % Assets
EMCOR Group, Inc.
Industrl
22.5
.
3.76
World Fuel Services Corp
Energy
16.2
.
3.02
H.B. Fuller Company
Basic Mat 27.4
.
2.97
Ryder System Inc
Industrl
18.1
.
2.85
Tech Data Corporation
Technology 12.6 15.33 2.14
Adtran, Inc.
Technology 27.6
.
2.10
Unit Corporation
Energy
15.3
.
2.08
Arrow Electronics Inc
Technology 13.7
.
2.04
Ultratech, Inc.
Technology
. .
1.98
FTI Consulting, Inc.
Industrl
. .
1.96
Rent-A-Center, Inc.
Cnsmr Cyc 13.6
.
1.76
GulfMark Offshore, Inc.
Energy
14.4
.
1.75
MicroStrategy, Inc.
Technology 63.3
.
1.67
Cloud Peak Energy Inc
Basic Mat 53.8
.
1.62
Tidewater, Inc.
Energy
18.4
.
1.60
Cubic Corporation
Industrl
.
-7.39 1.47
Tetra Tech, Inc.
Industrl
. .
1.46
Schnitzer Steel Industri
Industrl
. .
1.45
Dreamworks Animation SKG Cnsmr Cyc
. .
1.40
Progress Software Corpor
Technology 28.4
.
1.34
Current Investment Style
Market Cap %
Giant
0.0
Large
0.0
Mid
8.5
Small
62.1
Micro 29.4
Avg $mil:
1,436
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
17.73
1.43
0.50
8.13
1.44
1.09
0.85
0.54
1.26
1.02
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
14.62
3.65
7.30
-7.63
-5.21
1.18
2.19
4.10
NMF
NMF
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
7.45
3.08
5.95
0.64
0.66
0.70
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 21.32 0.74
BasicMat 8.33 2.72
. .
CnsmrCyc 5.92 0.69
. .
FinanSvs 3.94 0.25
. .
Real Est 3.13 2.14
. .
Sensitive 73.66 1.69
CommSrvs 2.18 0.54
. .
Energy 18.24 1.71
. .
Industrl 30.30 2.66
. .
Technlgy 22.94 1.31
. .
Defensive 5.02 0.18
CnsmrDef 2.33 0.19
. .
Hlthcare 2.59 0.22
. .
Utilities 0.10 0.03
. .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash 12.8
Stocks 87.2
Bonds 0.0
Other
0.0
Foreign 2.6
©
2014Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor
timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at
To order reprints, call 312-696-6100.
mfb.morningstar.com.
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