5
Morningstar FundInvestor
March 2
013
Morningstar Analyst Rating
03-01-13
„
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
22.40
20.74
17.60
16.45
13.65
9.47
16.92
18.20
17.36
16.76
14.18
9.88
Total Return %
8.00
17.84
6.99
20.51
44.14
-43.93
3.31
6.92
6.97
22.10
43.52
-28.67
+/-S&P 500
1.39
1.84
4.88
5.45
17.68
-6.93
-2.18
-8.87
2.06
11.22
14.84
-6.57
+/-Russ 2000 Gr
0.29
3.25
9.90
-8.58
9.67
-5.39
-3.74
-6.43
2.82
7.79
-5.02
1.59
Income Return %
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Capital Return %
8.00
17.84
6.99
20.51
44.14
-43.93
3.31
6.92
6.97
22.10
43.52
-28.67
Total Rtn % Rank Cat
20
10
2
88
19
69
68
77
41
10
54
59
Income $
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Capital Gains $
0.00
0.00
0.00
0.00
0.00
0.02
1.85
0.36
0.57
0.53
0.00
0.06
Expense Ratio %
.
1.28
1.29
1.31
1.26
1.22
1.18
1.15
1.18
1.27
1.39
1.31
Income Ratio %
.
-0.77
-0.73
-0.67
-0.47
-0.58
-0.70
-0.70
-0.80
-0.95
-0.98
-1.00
Turnover Rate %
.
70
80
63
81
97
74
102
79
119
30
140
Net Assets $mil
791
791
390
303
376
364
1,030
1,260
1,172
425
145
102
Performance
02-28-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2008
2009
2010
2011
2012
-14.48 -4.70
-4.79 -27.74 -43.93
-10.14 26.91 19.26 5.98 44.14
2.78 -7.77 11.28 14.24 20.51
12.77 3.07 -16.27 9.93
6.99
16.99 -4.52
6.31 -0.77 17.84
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500 2000 Gr
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
11.55 3.97
0.73
11 11,155
8.37 -0.58
-3.07
72 10,837
9.64 -3.82
-1.53
44 10,964
19.37 5.87
3.60
3 17,009
8.78 3.84
0.95
23 15,232
11.10 2.86
-0.12
36 28,651
5.17 0.81
1.11
66 21,300
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
19.37
3
0.00
1
8.78
18
0.01
18
10.65
29
0.40
30
Potential Capital Gain Exposure: 8% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
9.64
3 Yr
19.37
High
-Avg
5 Yr
8.78
+Avg
Avg
10 Yr
11.10
Avg
Avg
Incept
8.15
Other Measures
Standard Index
Best Fit Index
S&P 500 Mstar Mid Growth TR
Alpha
5.0
4.3
Beta
1.04
0.93
R-Squared
80
93
Standard Deviation
17.56
Mean
19.37
Sharpe Ratio
1.10
Morningstar’s Take
by Greg Carlson 03-01-13
Artisan Small Cap has increasingly earned investors’
confidence.
Launched in 1995, this fund has finally rounded into
shape. It posted middling returns for much of its life
until a largely new team took over in October 2009. At
that time, comanager Marina Carlson retired after a
10-year stint following the 2008 retirement of Carlene
Murphy-Ziegler, the previous lead skipper since
inception. Comanager Craigh Cepukenas then became
lead manager here and joined the team that had
successfully led Artisan Mid Cap ARTMX since 1997.
The unusual move of a manager joining forces with
another team has borne fruit. The previous regime’s
basic strategy wasn’t flawed: Like the current team, its
stated focus was on companies with sustainable profit
growth and sturdy balance sheets. But the fund
sometimes strayed into speculative fare, including
financially shaky firms--often at a bad time, as during
2008’s credit crisis when the fund lagged its typical
small-growth peer. Some of its picks didn’t prove to be
as steady as expected. As an analyst on the fund since
1995 and comanager since 2004, Cepukenas bore
some responsibility for those missteps. But he’s
meshed well with the Mid Cap team, and the fund’s
investment process is now both more disciplined and
backed by a large, veteran team. (Besides Cepukenas,
there are four other managers and seven analysts.) Its
average debt/capital ratio is well below the category
norm and that of the Russell 2000 Growth
Index--which wasn’t always the case in the past--and
dicier picks are limited to small positions.
Its record since its makeover reflects increased
discipline, too. It has outpaced nearly 90% of its
small-growth peers from October 2009 through Feb.
15, 2013. The fund has also shone brightest in choppy
markets, as it should. It held up far better than its
typical rival in 2011’s sharp third-quarter sell-off and
has lost just 70% as much as the Russell 2000 Growth
Index in down markets over the past 3.5 years.
The pieces are falling into place here. Thus, the
fund’s Morningstar Analyst Rating is rising to
Silver from Bronze.
Address:
Artisan Funds Inc
Milwaukee, WI 53202
800-344-1770
Web Address:
Inception:
03-28-95
Advisor:
Artisan Partners Limited Partnership
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, Schwab OneSource
Minimum Purchase:
$1000
Add: $50 IRA: $0
Min Auto Inv Plan:
$1000
Add: $50
Sales Fees:
No-load
Management Fee:
1.00% mx./0.93% mn.
Actual Fees:
Mgt:1.00% Dist:
.
Expense Projections:
3Yr:$483
5Yr:$834 10Yr:$1824
Income Distribution:
Annually
Data through February 28, 2013
Artisan Small Cap Investor
Ticker
Status Yield Total Assets
Mstar Category
ARTSX Open
0.0% $855 mil
Small Growth
95% 96% 96% 96% 95% 96% 95% 95%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 02-13
Historical Profile
Return
Risk
Rating
Above Avg
Average
Above 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
6.0
12.5
15.5
18.0
Portfolio Analysis
12-31-12
Share change since 09-12 Total Stocks:65 Sector
PE Tot Ret% % Assets
Beacon Roofing Supply, I
Basic Mat 23.9 10.88 4.02
CommVault Systems, Inc.
Technology 76.9 6.15 3.97
LKQ Corporation
Cnsmr Cyc 24.9 0.43 3.38
Cepheid
Hlth care
.
7.59 3.12
Acuity Brands Inc
Technology 25.4 0.78 3.01
Concur Technologies, Inc
Technology
.
4.06 2.78
HMS Holdings Corporation
Industrl
61.7 12.08 2.73
Dril-Quip, Inc.
Energy
28.6 12.57 2.55
Idex Corporation
Industrl
113.6 9.89 2.52
Cognex Corporation
Technology 26.4 11.96 2.51
IPG Photonics Corporatio
Technology 21.3 -11.04 2.45
Ares Capital Corporation
Finan Svs
8.4 5.80 2.35
Advisory Board Company
Industrl
84.0 8.59 2.32
Dunkin Brands Group Inc
Cnsmr Cyc 39.8 12.45 2.27
Woodward, Inc.
Industrl
18.7 -1.63 2.26
AthenaHealth, Inc.
Technology
.
27.97 2.21
Ulta Salon Cosmetics & F
Cnsmr Cyc 36.8 -9.87 2.21
Fortinet, Inc.
Technology 60.6 15.01 2.08
Guidewire Software Inc
Technology
.
22.98 1.98
Realpage, Inc.
Technology
.
0.42 1.85
Current Investment Style
Market Cap %
Giant
0.0
Large
0.0
Mid
41.5
Small
55.2
Micro
3.3
Avg $mil:
2,281
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
25.30
3.48
2.59
19.95
0.37
1.36
1.46
1.93
2.07
0.62
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
15.38
14.32
10.61
8.62
23.31
1.00
1.99
1.83
0.97
1.01
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
8.89
3.56
4.33
0.74
0.69
0.60
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 23.29 0.81
BasicMat 4.22 1.38 4 1
CnsmrCyc16.60 1.93 17 10
FinanSvs 2.47 0.16 9 2
Real Est 0.00 0.00 1 0
Sensitive 61.21 1.40
CommSrvs 0.00 0.00 0 0
Energy 5.21 0.49 7 3
Industrl 15.68 1.38 29 16
Technlgy 40.32 2.30 40 27
Defensive15.49 0.56
CnsmrDef 3.92 0.32 8 1
Hlthcare 11.57 0.98 17 9
Utilities 0.00 0.00 2 0
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
4.9
Stocks 95.1
Bonds 0.0
Other
0.0
Foreign 2.5
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2013Morningstar, Inc.All rights reserved. The informationherein isnot representedorwarranted to be accurate, correct, complete or
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