4
Morningstar Analyst Rating
10-17-13
Œ
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
18.72
15.35
14.92
16.85
14.33
10.23
13.86
18.08
17.25
17.61
16.08
11.60
Total Return %
21.95
6.12
-3.17
17.69
40.24
-23.83
-5.98
19.11
11.06
21.15
40.54
-4.44
+/-S&P 500
-3.35
-9.88
-5.28
2.63
13.78
13.17
-11.47
3.32
6.15
10.27
11.86
17.66
+/-Russ 2000
-8.95
-10.23
1.01
-9.16
13.07
9.96
-4.41
0.74
6.51
2.82
-6.71
16.04
Income Return %
0.00
0.84
0.04
0.11
0.15
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Capital Return %
21.95
5.28
-3.21
17.58
40.09
-23.83
-5.98
19.11
11.06
21.15
40.54
-4.44
Total Rtn % Rank Cat
95
98
48
96
18
4
47
28
8
52
51
19
Income $
0.00
0.13
0.01
0.02
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Capital Gains $
0.00
0.36
1.35
0.00
0.00
0.32
3.09
2.47
2.32
1.78
0.20
0.50
Expense Ratio %
.
1.22
1.20
1.22
1.22
1.20
1.19
1.17
1.18
1.18
1.21
1.20
Income Ratio %
.
0.31
0.06
0.11
0.20
-0.16
-0.03
-0.09
-0.16
-0.17
-0.21
-0.10
Turnover Rate %
.
28
47
37
63
75
72
59
56
41
12
34
Net Assets $mil
2,313
2,227
2,775
3,077
2,373
1,390
1,796
2,173
1,728
1,400
991
566
Performance
10-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-11.05 21.98 22.16 5.80 40.24
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
. .
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
5.11 0.36
-0.48
76 10,511
15.34 4.19
-1.56
65 11,534
29.77 2.59
-6.51
89 12,977
10.84 -5.72
-6.85
94 13,617
15.23 0.06
-1.81
85 20,316
10.25 2.79
1.22
21 26,533
11.69 6.59
2.89
19 52,507
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
9.93
94
0.82
84
14.54
85
0.60
80
8.69
31
1.41
92
Potential Capital Gain Exposure: 26% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
29.77
3 Yr
10.84
Low
-Avg
5 Yr
15.23
-Avg
-Avg
10 Yr
10.25
+Avg
Avg
Incept
10.48
Other Measures
Standard Index
Best Fit Index
S&P 500 Mstar Small Core
Alpha
-7.5
-4.0
Beta
1.18
0.90
R-Squared
82
93
Standard Deviation
16.26
Mean
10.84
Sharpe Ratio
0.71
Morningstar’s Take
by Greg Carlson 10-17-13
Artisan Small Cap Value’s slump has continued, and its
lead skipper will depart in 2016, but it still inspires
confidence.
This closed fund, which avoided the small-value
category’s bottom third in each calendar year from its
September 1997 inception through 2009, lagged 90%
of its peers in 2010 and 2012 and is doing so again in
2013 through Oct. 7. (The fund moved from the
small-value category to small-blend in 2011.)
There are two reasons for the fund’s recent
struggles. First, it has long fared better in flat or down
markets and often looked weaker when stocks thrived.
The fund’s typical peer registered gains of at least 15%
in 2010 and 2012 and has done so again thus far in
2013. Second, unusually poor stock selection within
the energy sector (where the fund excelled in the prior
decade) has dented returns. The team says that when
evaluating exploration and production firms, it had
placed too much emphasis on net asset values of
proven reserves (the basis on which banks lend such
firms money) and not enough on balance sheets or
cash flows. Retooling its approach has led to few E&P
firms clearing the team’s hurdles.
The fund’s recent weak showings have pushed its
trailing five-year return into the bottom quintile among
small-blend funds. Meanwhile, lead manager Scott
Satterwhite, who founded the team in 1997, recently
announced he’ll retire in September 2016. (Artisan
requires three years’ notice from its managers.) But
the fund still boasts a number of positive attributes.
Comanager Jim Kieffer has worked with Satterwhite
on the same small-value strategy since 1989, and
they’ve generated strong long-term returns both at
Wachovia and at this fund since its 1997 inception. A
third manager, George Sertl, has worked with them
since 2000. And Dan Kane, an analyst here since 2008,
has been promoted to comanager and will now share
lead duties on this fund with Satterwhite. The team
also retains flexibility; it ran roughly $4 billion in this
strategy at the end of June 2013, a figure that has
changed little in recent years as the fund has been
closed to new investors since 2000.
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, 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:0.94% Dist:
.
Expense Projections:
3Yr:$390
5Yr:$676 10Yr:$1489
Income Distribution:
Annually
Data through October 31, 2013
Artisan Small Cap Value Investor
Ticker
Status Yield Total Assets
Mstar Category
ARTVX Limited 0.7% $2,638 mil
Small Blend
95% 96% 99% 96% 94% 93% 94% 97% 93%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 10-13
Historical Profile
Return
Risk
Rating
Average
Below Avg
Neutral
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
26.0
Portfolio Analysis
06-30-13
Share change since 03-13 Total Stocks:92 Sector
PE Tot Ret% % Assets
EMCOR Group, Inc.
Industrl
19.7 7.60 3.04
Ryder System Inc
Industrl
14.6 33.77 2.98
Adtran, Inc.
Technology 46.7 22.01 2.69
H.B. Fuller Company
Basic Mat 24.7 38.58 2.48
World Fuel Services Corp
Energy
13.6 -7.06 2.38
Diebold Incorporated
Technology
.
0.69 2.36
Rent-A-Center, Inc.
Cnsmr Cyc 11.8 1.48 2.26
Ultratech, Inc.
Technology 33.8 -36.22 2.18
FTI Consulting, Inc.
Industrl
.
22.97 2.17
Dreamworks Animation SKG Cnsmr Cyc
.
106.64 1.93
Outerwall Inc
Cnsmr Cyc 10.8 24.94 1.86
Tech Data Corporation
Technology 11.2 14.01 1.75
Matthews International C
Cnsmr Cyc 21.4 27.41 1.74
GulfMark Offshore, Inc.
Energy
32.5 46.68 1.71
Tidewater, Inc.
Energy
20.2 36.46 1.69
WMS Industries, Inc.
Cnsmr Cyc
. .
1.67
Platinum Underwriters Ho
Finan Svs
6.6 35.72 1.63
Cloud Peak Energy Inc
Basic Mat 14.4 -19.24 1.61
Progress Software
Technology 59.5 23.73 1.55
Arrow Electronics Inc
Technology 11.5 26.10 1.46
Current Investment Style
Market Cap %
Giant
0.0
Large
0.0
Mid
9.8
Small
63.6
Micro 26.5
Avg $mil:
1,377
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
15.33
1.35
0.51
5.71
1.60
0.94
0.80
0.55
0.89
1.13
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
12.65
6.01
9.52
7.30
-4.41
1.02
3.60
5.35
0.81
NMF
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
8.16
3.93
7.14
0.71
0.84
0.84
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 26.83 0.93
BasicMat 5.79 1.89 10 6
CnsmrCyc15.10 1.76 15 7
FinanSvs 3.12 0.20 4 2
Real Est 2.82 1.93 4 2
Sensitive 69.56 1.59
CommSrvs 2.21 0.55 3 2
Energy 13.44 1.26 13 8
Industrl 28.31 2.49 36 28
Technlgy 25.60 1.46 26 22
Defensive 3.61 0.13
CnsmrDef 0.00 0.00 4 0
Hlthcare 3.61 0.31 4 2
Utilities 0.00 0.00 8 2
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
7.1
Stocks 92.9
Bonds 0.0
Other
0.0
Foreign 2.2
©
2013Morningstar, Inc.All rights reserved. The information herein is not representedorwarranted to be accurate, correct, complete or
timely. Past performance isnoguaranteeof future results.Accessupdated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
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