Structured to capitalise on the Artisan Partners Growth Team’s 20-plus years’ experience of growth investing, the Artisan Global Discovery Strategy is a highly flexible portfolio of companies representing some of the team’s best ideas across the global economy. Some key attributes of the strategy include:
Unconstrained Market Cap and Geographic Mandates
Absent an upper limit on the strategy’s market-cap mandate, the team can stick with its global investment campaigns through their profit cycles.
Opportunistically Targeting Initial Investments in Global Mid- and Small-Cap Franchises
The strategy’s investments have historically been in mid- and small-cap companies (Exhibit 1), in-line with the MSCI AC World SMID Index. The team has found mid-cap stocks represent a compelling intersection of quality and growth—mature enough to be high-quality franchises with solid competitive advantages, financially sound with the capacity to generate cash flow to fund future growth, a tendency to be a purer profit cycle play given a tighter business focus and in possession of experienced, savvy management teams. That said, these features can be found up and down the market-cap spectrum, and the Global Discovery strategy possesses the flexibility to identify these global profit cycle opportunities without being inhibited by company size.
Exhibit 1: Artisan Global Discovery Strategy Market Cap at Time of Purchase ($ in millions)
Outperformance in Up and Down Markets Driven by Stock Selection
Exhibit 2: The Growth team’s bottom-up oriented investment process has been a key ingredient in the strategy’s relative outperformance.
A Time-Tested Approach to Growth Investing
The team fundamentally believes stocks follow profits and identifying high-quality franchises (low cost production capability, dominant market position, possession of a proprietary asset or a defensible brand name) on the cusp of a compelling profit cycle, based on catalysts the team can understand, selling at a discount to the team’s estimate of private market value is a highly effective way to compound assets over the long term. The strategy capitalises on the team’s 10+ years’ experience investing in companies worldwide and 20+ years’ experience in mid-cap growth investing.
Picking Stocks on the Premise of Profit Growth—A Core Belief of The Team—Has Historically Been an Effective Strategy
Data show profit growth has been the predominant reason for value, or cyclical, stocks’ outperformance in the 2000s and the rotation into growth stocks in the post-global financial crisis decade. We explore this concept more in our post on artisancanvas.com, The Importance of Profit Growth in Equity Returns.
Exhibit 3: Dividend, EPS Growth and Multiple Expansion/Contraction Contribution to Total Return
A Unique, Differentiated Portfolio
A combined global focus and unconstrained nature differentiate the Global Discovery Strategy from the Artisan U.S. Mid-Cap Growth, Artisan Global Opportunities and Artisan U.S. Small-Cap Growth Strategies managed by the team. As of 31 January 2025, the strategy’s top-10 contributors since inception are unique relative to its benchmark’s top-10 contributors.
Artisan Global Discovery Fund (as at 31 January 2025)
The performance comparison of $10,000 has been calculated from the inception of the Artisan Global Discovery strategy on September 1, 2017 and adjusted for the fee structure of the Artisan Global Discovery Fund. All returns shown are based on Australian dollar figures. The total returns shown are prepared on an ongoing basis (i.e. they include all ongoing fees and expenses and assume reinvestment of all distributions). They do not take personal taxation into account. The comparison with the MSCI All Country World SMID Cap Net Index in AUD is for comparative purposes only. Index returns do not allow for transactional, management, operational or tax costs. An index is not managed and investors cannot invest directly in an index.
All rights reserved. This information has been prepared by Copia Investment Partners Limited (AFSL 229316 , ABN 22 092 872 056) the issuer, distributor and responsible entity of the Artisan Global Discovery Fund. This document provides information to help investors and their advisers assess the merits of investing in financial products. We strongly advise investors and their advisers to read information memorandum and product disclosure statements carefully and seek advice from qualified professionals where necessary. The information on this document does not constitute personal advice and does not take into account your personal objectives, financial situation or needs. It is therefore important that if you are considering investing in any financial products and services referred to on this document, you determine whether the relevant investment is suitable for your objectives, financial situation or needs. You should also consider seeking independent advice, particularly on taxation, retirement planning and investment risk tolerance from a suitably qualified professional before making an investment decision. Neither Copia Investment Partners Limited, nor any of our associates, guarantee or underwrite the success of any investments, the achievement of investment objectives, the payment of particular rates of return on investments or the repayment of capital. Copia Investment Partners Limited publishes information on the document that is, to the best of its knowledge, current at the time and Copia is not liable for any direct or indirect losses attributable to omissions from the document, information being out of date, inaccurate, incomplete or deficient in any other way. Investors and their advisers should make their own enquiries before making investment decisions. © 2025 Copia Investment Partners Ltd. The Artisan Global Discovery Fund invests all or substantially all of its assets in Artisan Global Discovery Fund (Fund), a sub-fund of Artisan Partners Global Funds plc. Artisan Partners Limited Partnership serves as investment manager to the Fund. Artisan Partnership Limited Partnership, its affiliates and Artisan Partners Global Funds plc (together, Artisan Partners) are not affiliated with Copia Investment Partners. Artisan Partners does not take any responsibility for the accuracy or completeness of the contents of these materials, any representations made herein, or the performance of the Artisan Global Discovery Fund offered by Copia Investment Partners. Artisan Partners disclaims any liability for any direct, indirect, consequential or other losses or damages, including loss of profits, incurred by you or by any third party that may arise from any reliance on these materials. Artisan Partners is not responsible for, nor involved in, the marketing, distribution or sales of shares or interests in the Artisan Global Discovery Fund and is not responsible for compliance with any marketing or promotion laws, rules or regulations; and no third party, other than Copia Investment Partners, is authorised to make any statement about any of Artisan Partners’ products or services in connection with any such marketing, distribution or sales. Past performance by any other funds or accounts advised by Artisan Partners, including the Fund into which the Artisan Global Discovery Fund invests, is not indicative of any future performance by the Artisan Global Discovery Fund. © 2025 Artisan Partners. All rights reserved.
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