Artisan Developing World Strategy

At a Glance

Management & Investment Process

Management

Lewis S. Kaufman, CFA
Portfolio Manager
25Years Investment
Experience

Investment Process

The investment team seeks to build, preserve and enhance a stream of compounded business value. It defines this emphasis as follows:

Build
Pair low penetration domestic demand with scalable and enduring businesses that are able to drive value creation and disproportionate outcomes.

Preserve
Preserve value creation and establish a forward-looking construct for managing risk.

Enhance
Leverage value pathways to enhance long-term value creation.

Investor Update—Q4 2024
Artisan Partners Developing World Team Portfolio Manager Lewis Kaufman discusses his team’s investment philosophy, portfolio positioning and the current market environment.
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Scalability
"In all these different manifestations of scalability, the goal is the same: significant and sustained business value creation despite economic constraints." —Quarterly Letter, Q2 2021
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Passport Companies
"companies that develop innovative capabilities abroad, which can then be passported into the emerging markets" —Quarterly Letter, Q3 2022
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Redefining the EM Opportunity Set
"Over a period of time, we have been successful in redefining the emerging markets opportunity set around real per capita GDP increases" —Quarterly Letter, Q3 2023
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"…people who take the traditional approach of investing in less industrialized nations will be disappointed by their returns." —Bloomberg, 2020

China
"we continue to be consistent in our approach to these challenges, by seeking to reduce capital at risk at moments of low reinvestment risk while emphasizing a handful of domestically oriented businesses with the potential for disproportionate equity outcomes" —Quarterly Letter, Q2 2023
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Risk
"we believe the purpose of a risk management framework is to facilitate the execution of an investment program in moments of chaos…" —Quarterly Letter, Q2 2022
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Evolution
"In the past year, we have added significant investments… in Brazil, … in India and… in Southeast Asia." —Quarterly Letter, Q3 2023
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Performance

As of 31 January 2025	QTD	YTD	1 Yr	3 Yr	5 Yr	10 Yr	Inception
Composite — Gross	4.27	4.27	35.85	6.70	11.80	—	11.97
Composite — Net	4.18	4.18	34.46	5.59	10.64	—	10.81
MSCI Emerging Markets Index	1.79	1.79	14.75	-0.71	3.03	—	3.67

As of 31 December 2024	QTD	YTD	1 Yr	3 Yr	5 Yr	10 Yr	Inception
Composite — Gross	0.85	30.04	30.04	0.41	11.12	—	11.59
Composite — Net	0.59	28.71	28.71	-0.64	9.97	—	10.43
MSCI Emerging Markets Index	-8.01	7.50	7.50	-1.92	1.70	—	3.51

Calendar Year Returns (% USD)

	2020	2021	2022	2023	2024

Composite — Gross	83.46	-8.71	-40.56	30.96	30.04
Composite — Net	81.64	-9.68	-41.21	29.62	28.71
MSCI Emerging Markets Index	18.31	-2.54	-20.09	9.83	7.50

Returns for periods less than one year are not annualized.

Past performance does not guarantee and is not a reliable indicator of future results. Current performance may be lower or higher than the performance shown. Composite performance has been presented in both gross and net of investment management fees.

Investment Risk: Investments will rise and fall with market fluctuations and investor capital is at risk. Investors investing in investment vehicles denominated in non-local currency should be aware of the risk of currency exchange fluctuations that may cause a loss of principal. These risks, among others, are further described in the Important Disclosures section which should be read in conjunction with this material.

Risk Management Upside/Downside Capture

As of 31 December 2024	Average Up Month	Average Down Month
Composite — Net	448bps	-345bps
MSCI Emerging Markets Index	381bps	-394bps
Difference	+67bps	+49bps

Based on monthly net-of-fees composite returns beginning July 1, 2015. Net-of-fees composite returns were calculated using the highest model investment advisory fees applicable to portfolios within the composite. Upside/Downside Capture represents average monthly returns during months when the index was positive and negative, respectively.

Data & Statistics

Top 10 Holdings (% of total portfolio as of 31 January 2025)
MercadoLibre Inc (Argentina)	5.8
Sea Ltd (Singapore)	5.8
MakeMyTrip Ltd (India)	4.8
Visa Inc (United States)	4.6
Crowdstrike Holdings Inc (United States)	4.4
Adyen NV (Netherlands)	4.3
Airbnb Inc (United States)	4.2
Grab Holdings Ltd (Singapore)	4.1
NU Holdings Ltd (Brazil)	4.1
Meituan (China)	4.1
Total	46.2%

Portfolio Statistics (as of 31 January 2025)
Median Market Cap (Billions)	$82.2
Weighted Avg. Market Cap (Billions)	$247.3
Number of Securities	33
Number of Countries	11
Cash (% of total portfolio)	4.2%

Region Allocation
(% of portfolio securities as of 31 January 2025)

Top 10 Countries (% of portfolio securities as of 31 January 2025)
United States	33.8
China	16.5
India	14.7
Singapore	10.4
Argentina	6.1
Netherlands	4.5
Brazil	4.3
France	3.2
United Kingdom	3.0
Australia	2.3

Insights

Artisan Partners Developing World Team Fourth Quarter 2024 Update
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Artisan Partners Developing World Team Third Quarter 2024 Update
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Artisan Partners Developing World Team—Investment Forum Highlights 2024
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Artisan Partners Developing World Team Second Quarter 2024 Update
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Artisan Partners Developing World Team First Quarter 2024 Update
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Artisan Partners Developing World Team Fourth Quarter 2023 Update
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Artisan Developing World Investor Day 2023
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Artisan Partners Developing World Team Third Quarter 2023 Update
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CNBC—Continuing the Conversation with Artisan Partners’ Lewis Kaufman
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CNBC—An Interview with Artisan Partners’ Lewis Kaufman
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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 and less developed markets, including frontier markets. Such risks include new and rapidly changing political and economic structures, which may cause instability; underdeveloped securities markets; and higher likelihood of high levels of inflation, deflation or currency devaluations. Securities of small- and medium-sized companies tend to have a shorter history of operations, be more volatile and less liquid and may have underperformed securities of large companies during some periods. The costs associated with an investment will impact your return over time. These risks, among others, are further described in Artisan Partners Form ADV, which is available upon request. This is a marketing communication.

Unless otherwise indicated, strategy characteristics relate to that of a representative account managed within the investment composite. It is intended to provide a general illustration of the investment strategy and considerations used by Artisan Partners in managing that strategy. Individual accounts managed to the strategy may differ, at times significantly, from the reference data shown due to varying account restrictions, fees and expenses, and longevity periods, among others. Where applicable, this information is supplemental to, and not to be construed with, a current or prospective client's investment account information.

Performance Source: Artisan Partners/MSCI. Net-of-fees composite returns were calculated using the highest model investment advisory fees applicable to portfolios within the composite. Fees may be higher for certain pooled vehicles and the composite may include accounts with performance-based fees. All performance results are net of commissions and transaction costs, and have been presented gross and net of investment advisory fees. Dividend income is recorded net of foreign withholding taxes on ex-dividend date or as soon after the ex-dividend date as the information becomes available to Artisan Partners. Interest income is recorded on the accrual basis. Performance results for the Index include reinvested dividends and are presented net of foreign withholding taxes but, unlike the portfolio'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.

Data & Statistics Sources: Artisan Partners/MSCI. Country Classification Source: Artisan Partners. Portfolio country and region classifications are defined by the investment team and may differ substantially from MSCI classifications. Upon request, Artisan Partners will provide the portfolio’s country and region breakdown according to MSCI methodology. Artisan Partners may exclude outlier data and certain securities which lack applicable attributes, such as private securities when calculating portfolio statistics. If information is unavailable for a particular security Artisan may use data from a related security to calculate portfolio statistics. Securities of the same issuer are aggregated to determine a holding’s weight in the portfolio. Cash weighting includes cash and cash equivalents. Totals may not sum due to rounding.

Median is the data's midpoint value. Market Cap (USD) is the aggregate value of all of a company's outstanding equity securities. Weighted Average is the average of values weighted to the data set's composition.

MSCI Emerging Markets Index measures the performance of emerging markets. The index(es) are unmanaged; include net reinvested dividends; do not reflect fees or expenses; and are not available for direct investment.

MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.

Important Disclosures

This material is intended for Eligible Counterparties within the meaning of the Markets in Financial Instruments Directive (MiFID) and as defined by the UK Financial Conduct Authority and is not intended for, or to be relied upon by, private individuals or retail investors as well as professional clients that do not meet the definition of Eligible Counterparty.

The information contained on this website, together with any related enclosures, has been prepared for informational purposes only and without taking into account any specific objectives financial situation or needs of any particular person who may receive it. It does not constitute and should not be construed as investment advice or an offer, invitation, proposal or recommendation of any financial product or service.

This website is operated by Artisan Partners UK LLP (APUK) and/or APEL Financial Distribution Services Limited (AP Europe). APUK is authorized and regulated by the UK Financial Conduct Authority and is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). APEL Financial Distribution Services Limited (AP Europe) is regulated by the Central Bank of Ireland. In the United Kingdom, issued by Artisan Partners UK LLP, 25 St. James’s St., Floor 10, London SW1A 1HA, registered in England and Wales (LLP No. OC351201). Registered office: Phoenix House, Floor 4, Station Hill, Reading Berkshire RG1 1NB. In Ireland, issued by Artisan Partners Europe, Fitzwilliam Hall, Fitzwilliam Pl, Ste. 202, Dublin 2, D02 T292. Registered office: 70 Sir John Rogerson’s Quay, Dublin 2, D02 R296 (Company No. 637966). Artisan Partners Limited Partnership (APLP), an investment adviser registered with the SEC, together with APUK and AP Europe are collectively, with their parent company and affiliates, referred to as Artisan Partners herein.