Investment Process Highlights

The investment team seeks to invest in cash producing business in strong financial condition that are selling at undemanding valuations. The teams goal is to build a diversified portfolio of companies that meet its three margin of safety criteria:

Attractive Valuation. The team values a business using what it believes are reasonable expectations for the long-term earnings power and capitalization rates of that business. This results in a range of values for the company that the team believes would be reasonable. The team will generally purchase a security if the stock price falls below or toward the lower end of that range.

Sound Financial Condition. The team prefers companies with an acceptable level of debt and positive cash flow, which it believes represents financial flexibility and strength. At a minimum, the team seeks to avoid companies that have so much debt that management may be unable to make decisions that would be in the best interest of the companies' shareholders.

Attractive Business Economics. The team favors cash-producing businesses that are capable of earning acceptable returns on capital over the company's business cycle. Attractive business economics are an important business characteristic and the team believes they are helpful in avoiding classic value traps.

Portfolio Construction Highlights

• Typically 40-60 holdings
• Maximum position size generally 5% *
• Position sizes determined in part by how well a company meets the teams margin of safety criteria
• Attention to economic exposure
• Market Capitalization generally within the range of the Russell Midcap Index as of the most recent calendar year end *
• Typically less than 10% cash

* Limitations apply at the time of purchase. See prospectus for more details. Margin of Safety. a concept developed by Benjamin Graham, is the difference between the market price and the estimated intrinsic value of a business. It is believed to be an important measure of risk and appreciation potential. Artisan's U.S. Value team also incorporates a company's financial strength and certain business quality measures into its margin of safety estimates. A large margin of safety helps guard against permanent capital loss and improves the probability of capital appreciation; however it does not prevent market loss. All investments contain risk and may lose value.