Artisan Global Value Fund | Role in Client Portfolios

How can the Global Value Fund fit within a diversified portfolio? In this video, Ryan Wood explains the Fund's role as a core global equity holding or complementary value allocation, and outlines the disciplined research process behind every investment decision.

https://www.youtube.com/watch?v=CPK1ytZX6q0

Chapters

0:04 The Strategy's Role in Client Portfolios

1:05 Investment Process and Idea Generation

1:54 Research Process

2:32 Portfolio Inclusion

Transcript:

0:04 The Strategy's Role in Client Portfolios

Clients look to us as best in class stock pickers. That is what we are through and through. We provide very in-depth fundamental research in order to provide a bit of differentiation from just your broad passive global equity exposure. We're gonna look and behave very different than broad market exposure. This is an actively managed, concentrated portfolio that again, Is benchmark agnostic. It's a collection of idiosyncratic investment ideas. At the end of the day, a index is merely a collection of thousands of businesses at any point in time. We, on the other hand, are thinking of ourselves as owners of a business. And I think because of our focus on valuation and quality characteristics, the portfolio can be used as a dedicated value exposure, say to complement or offset balance exposure to a growth strategy.

Or it can simply be used as a core global equity holding. We certainly have clients who look to us for that, given our emphasis and focus on business quality. This is a very experienced, stable team with a demonstrated long-term track record. This is a time-tested process. It's been tested since 2007. That's a highly repeatable process. We're looking for four very clear characteristics in any business that we own. Just because you know it's simple doesn't necessarily mean it's easy to execute, but it means that it is repeatable.

01:05 Investment Process and Idea Generation

In terms of going a little bit deeper into our investment process, maybe it's helpful to walk a bit through idea generation, up until potentially buying a position in the portfolio. Ideas can come from a multitude of different areas. You know, the team does meet in a full research team meeting every single Thursday with the primary purpose to review screens. That's more in place to make sure that nothing is falling through the cracks, to make sure that we're not missing anything. We're screening for things at the intersection of tractive valuation and quality characteristics and financial strength, but really a lot of ideas come from the natural ground we're covering from a research standpoint.

Leaving no stone unturned, being intellectually curious, traveling around the world, meeting with management teams, meeting with competitors, suppliers of businesses that we own. Everyone on the team is incentivized to cover as much ground as they possibly can from a research standpoint.

01:54 Research Process

Another nice source of ideas is the massive database that we have of research notes. We have a very writing-intensive research culture where any touch point, any business that you study, any meeting with management team, you have to write up and publish a note. And that note ultimately gets recorded into our database.

And so we have a vast repository of notes going back to inception in 2007 on thousands of businesses. And that can serve as a nice source of ideas of say businesses that we've studied and admired in the past that meet our criteria, except perhaps for valuation. And we can go back and quickly update our work once given the opportunity to purchase that name if it trades down into an attractive valuation level.

02:32 Portfolio Inclusion

Once a name or an idea ultimately gets allocated to a work list, that's when the fundamental research really starts. That's when we begin by studying the last decade plus of historical financials, studying the industry structure, meeting with competitors, suppliers, with management teams, really any industry participant we can get in front of to better understand a business. But ultimately, what we're seeking to do is price a business based off of its normalized earnings power. I mean, if it's trading at least a 25% discount to intrinsic value then it's a candidate for purchase. And that process from idea generation up until a name is bought can take anywhere from weeks to months. It's as long as it takes for us to get comfortable before putting capital behind a name.

IMPORTANT INFORMATION

This video has been prepared by Copia Investment Partners Limited (AFSL 229316) (Copia) for general information purposes only. Copia is the issuer of the Artisan Global Value Fund (AGVF), an unregistered managed investment scheme available to wholesale clients only under an Information Memorandum (IM). The IM is available upon request to eligible wholesale investors. Interests in AGVF are not available to retail clients. The information contained in this video does not take into account the investment objectives, financial situation or particular needs of any person and is not intended to constitute financial product advice, investment advice, a recommendation or an offer or invitation to invest. Viewers should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and should seek professional advice before making any investment decision.

Any opinions, estimates, forecasts or recommendations contained in this video are subject to change without notice and may differ from subsequent views expressed by Copia or its related entities. Copia does not undertake any obligation to update the information contained in this video. While the information in this video has been prepared with reasonable care, neither Copia nor any of its related parties makes any representation or warranty as to the accuracy, completeness or reliability of the information. Past performance is not a reliable indicator of future performance. Total returns assume the reinvestment of all distributions. The performance is quoted net of all fees and expenses. The reference indices do not incur these costs. This information is provided for general comparative purposes. Positive returns, which the Funds are designed to provide, are different regarding risk and investment profile to index returns.