Artisan Partners Asset Management : Investor Presentation

Artisan Partners Asset Management

B U S I N E S S U P D A T E A N D T H I R D Q U A R T E R 2 0 1 9 E A R N I N G S P R E S E N T A T I O N

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BUSINESS PHILOSOPHY & APPROACH

High Value Added		Talent Driven		Thoughtful
Investment Firm		Business Model		Growth

Designed for Investment

Active StrategiesActive Talent Identification Talent to Thrive

Autonomous Franchises

Managed by Business Professionals

Entrepreneurial Commitment

Proven ResultsStructured to Align Interests

Focus on Long-Term

Global Demand

Since its founding, Artisan has built its business based upon a consistent philosophy and business model.

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THOUGHTFUL GROWTH

What We Can Influence

Non-Linear and Path Dependent

• Talent
• Environment
• Degrees of Freedom
• Client Expectations
• Investment Performance
• Capacity
• Distribution Strategy
• Financial Model
• Operate with Integrity
• Patience

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HIGH VALUE-ADDED INVESTMENTS

				Lipper Fund Rankings	AUM
	Index Return		Value Added (Net of Fees)	Since Inception	(in billions)

Growth Team
Global Opportunities (Feb 1, 2007)		4.90%	4.81%		5%	3/63	$17.8
Global Discovery (September 1, 2017)		6.24%	8.38%		1%	1/128	$0.7
U.S. Mid-Cap Growth (Apr 1, 1997)		10.18%	3.76%		2%	1/81	$10.7
U.S. Small-Cap Growth (Apr 1, 1995)		8.92%	1.05%		62%	30/48	$3.1
Global Equity Team
Global Equity (Apr 1, 2010)		7.93%	3.78%		8%	6/77	$1.8
Non-U.S. Growth (Jan 1, 1996)		4.61%	4.50%		5%	1/23	$22.7
Non-U.S.Small-Mid Growth (Jan 1, 2019)		10.96%		9.96%	17%	6/35	$1.7
U.S. Value Team
Value Equity (Jul 1, 2005)	-1.63%	8.95%			31%	59/195	$2.6
U.S. Mid-Cap Value (Apr 1, 1999)		9.33%	2.08%		7%	5/74	$4.3
International Value Team
Non-U.S. Value (Jul 1, 2002)		5.87%	4.58%		2%	1/83	$20.4
Global Value Team
Global Value (Jul 1, 2007)		4.35%	2.80%		3%	1/41	$18.2
Sustainable Emerging Markets Team
Sustainable Emerging Markets (Jul 1, 2006)	-0.31%	4.70%			75%	153/204	$0.2
Credit Team
High Income (Apr 1, 2014)		4.97%	1.56%		1%	3/358	$3.8
Developing World Team
Developing World (Jul 1, 2015)		3.15%	5.23%		2%	10/598	$2.8
Thematic Team
Thematic (May 1, 2017)		11.83%		14.47%	1%	1/180	$1.0

Data as of September 30, 2019. Sources: Artisan Partners/MSCI/Russell/ICE BoAML/S&P. Index Returns are average annual returns for the broad-based benchmark corresponding to each Artisan strategy since the inception date of the Artisan strategy. Value Added (Net of Fees) is the difference between the Artisan strategy's average annual return (net of fees) since inception and the Index Return. Returns for periods of less than one year are not annualized. Lipper Fund Rankings are based on the performance rankings of the Artisan Partners Fund managed to each respective Artisan strategy. Performance for Credit Opportunities and Thematic Long/Short strategies have been intentionally omitted.

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NEW TEAM AND STRATEGY DEVELOPMENT

Global Value Team

Reorganization

Credit

Developing

Thematic

International

Small-Mid

Team

World Team

Team

Cap Talent

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Global Small-Cap Growth

Global Opportunities

Developing World

Thematic

AUM: $17.8 B

Inception: July 1, 2013

AUM: $1.0 B

Inception Value-Add: 481 bps

Closed: December 31, 2016

AUM: $2.8 B

Inception Value-Add: 1,447 bps

Inception Value-Add: 523 bps

Global Value	Global Equity	High Income	Credit Opportunities
AUM: $18.2 B	AUM: $1.8 B	AUM: $3.8 B	AUM: $0.1 B
Inception Value-Add: 280 bps	Inception Value-Add: 378 bps	Inception Value-Add: 156 bps

Global Discovery

AUM: $0.7 B

Inception Value-Add: 981 bps

Thematic Long/Short

AUM: $0.4 B

Non-U.S.Small-Mid Growth

AUM: $1.7 B

Inception Value-Add: 996 bps

Data as of September 30, 2019. Inception Value-Add is explained on the prior slide. For Non-U.S.Small-Mid Growth, Inception Value-Add is from January 1, 2019. As of that date, the strategy had $515 million in AUM. Performance for Credit Opportunities and Thematic Long/Short strategies have been intentionally omitted.

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OUTCOMES BY GENERATION - Year-to-Date as of September 30, 2019 ($ in billions)

	1st Generation	2nd Generation	3rd Generation	Firm Total
Beginning AUM	$54.7	$35.5	$6.1	$96.2
Gross Client Cash Inflows	6.2	2.4	5.0	13.6
Gross Client Cash Outflows	(10.1)	(4.0)	(1.8)	(16.0)
Net Client Cash Flows	$(4.0)	$(1.6)	$3.3	$(2.3)
Excess Returns	2.8	1.3	0.5	4.6
Market Returns	7.8	5.5	0.7	14.0
Ending AUM	$61.3	$40.6	$10.6	$112.5
Annualized Organic Growth Rate	-10%	-6%	72%	-3%
Ending AUM Growth Rate	12%	15%	74%	17%
Annualized Effective Fee	0.77%	0.62%	0.84%	0.72%
AUM Mix
U.S.	99%	47%	93%	79%
Non-U.S.	1%	53%	7%	21%
Artisan Funds & Artisan Global Funds	55%	27%	81%	47%
Other Vehicles	45%	73%	19%	53%
Institutional	62%	83%	27%	66%
Intermediary	32%	15%	68%	29%
Retail	6%	2%	4%	4%

1st Generation is Artisan U.S. Small-Cap Growth, Non-U.S. Growth, U.S. Mid-Cap Growth, U.S. Mid-Cap Value and Non-U.S. Value strategies. 2nd Generation is Artisan Value Equity, Sustainable Emerging Markets, Global Opportunities, Global Value and Global Equity strategies. 3rd Generation is Artisan High Income, Developing World, Thematic, Credit Opportunities, Global Discovery, Thematic Long/Short and Non-U.S.Small-Mid Growth strategies. Excess Returns are an estimate of the amount in dollars by which Artisan's investment strategies have outperformed or underperformed their broad-based benchmarks. Excess returns are calculated by (i) multiplying a strategy's beginning-of-month AUM by the difference between the returns (in basis points) of the strategy (gross of fees) and the broad-based benchmark for the ensuing month and (ii) summing the monthly excess returns. Market Returns includes all change in AUM not included in Client Cash Flows or Excess Returns. The allocation of assets under management by distribution channel involves the use of estimates and the exercise of judgment.

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EXCESS RETURNS & NET FLOWS - Last 10 Years (in billions)

Firmwide Excess Returns & Net Flows

$20.0

$15.0

$10.0

$5.0

$0.0

$(5.0)

$(10.0)

$120.0

$100.0

$80.0

$60.0 Firmwide AUM

$40.0

$20.0

$0.0

2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	YTD 2019
			Firmwide AUM		Firmwide Excess Returns		Firmwide Net Flows

Excess Returns are an estimate of the amount in dollars by which Artisan's investment strategies have outperformed or underperformed their broad-based benchmarks. The calculation methodology is explained on the prior slide. Excess Returns shown on this slide include excess returns from all strategies in existence during all or some of the calendar year indicated.

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ASSETS UNDER MANAGEMENT & NET CLIENT CASH FLOWS (in billions)

Assets Under Management

$116.6	$107.8	$113.8	$112.5
	$96.2

3Q184Q181Q192Q193Q19

	Net Client Cash Flows
Quarter	Year to Date

$(0.5)$(0.7)

$(1.1)

$(1.5)

$(2.5)$(2.3)

	$(4.9)
3Q18	4Q18	1Q19	2Q19	2018	2019
3Q19

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FINANCIAL RESULTS - Financial Highlights

Quarter

$116.2

$113.0

Average AUM

$110.2

(in billions)

3Q18

2Q19

3Q19

3%

-3%

Revenues (in millions)

Effective Fee Rate
(in bps)	$212.8	$200.7	$202.9
	73	73	71
	3Q18	2Q19	3Q19
			1%
		-5%

Year to Date

$116.8

$109.4

20182019

-6%

$637.1

$590.6

73

72

20182019

-7%

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FINANCIAL RESULTS - Financial Highlights

Quarter

Operating Expenses

(in millions)

$131.0

$129.8

$127.4

3Q18

2Q19

3Q19

-2%

-3%

Compensation &

Benefits Expense

(in millions)

$102.7

$101.5

$99.8

3Q18

2Q19

3Q19

-2%

-3%

Year to Date

$396.4

$386.5

20182019

-2%

$314.7

$300.6

20182019

-4%

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FINANCIAL RESULTS - Financial Highlights

Quarter

Year to Date

38.5%	35.3%	37.2%	37.8%	34.6%

Operating Margin

	3Q18	2Q19			3Q19	2018	2019
							$178.7
												$149.5
Adjusted Net
Income
(in millions)
	$60.8
Adjusted Net		$52.4	$54.8		$2.32	$1.92
Income per
Adjusted Share	$0.79		$0.67	$0.70
										2018	2019
	3Q18	2Q19			3Q19
					Adjusted Net Income				Adjusted Net Income per Adjusted Share

Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in Exhibit 2 of our September 2019 earnings release. GAAP net income was $42.5, $39.2, and $41.3 for the September 2018, June 2019 and September 2019 quarters, respectively, and $125.8 and $112.0 for the nine months ended September 30, 2018 and September 30, 2019, respectively. GAAP EPS was $0.77, $0.66, and $0.71 for the September 2018, June 2019, and September 2019 quarters, respectively, and $2.27 and $1.87 for the nine months ended September 30, 2018 and September 30, 2019, respectively.

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DIVIDENDS

Dividends Paid

Quarterly Dividends Paid/Declared

$3.39

$3.20

$3.19

$2.80$2.76

$1.80

44.9%

40.3%

36.4%

37.6%

36.8%

$0.55$0.60$0.65

2014	2015	2016	2017	2018	1Q19	2Q19	3Q19	YTD 2019
	Adjusted EPS		Incremental Cash Generation	Adjusted Operating Margin

Note: The historical dividend amounts shown represent the dividends paid or declared with respect to the respective years or periods and therefore include dividends paid or declared in periods after the respective years or periods. "Incremental Cash Generation" equals the difference between dividends paid or declared for the period and Adjusted EPS for the period. GAAP EPS for the periods shown was $(0.37), $1.86, $1.57, $0.75, and $2.84 for 2014, 2015, 2016, 2017, and 2018, respectively. GAAP Operating Margin for the periods shown was 37.0%, 35.1%, 32.5%, 36.0%, and 36.8% for 2014, 2015, 2016, 2017, and 2018, respectively.

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FINANCIAL RESULTS - Capital Management

Cash

(in millions)

$169.6

$160.5

4Q18

3Q19

Leverage Ratio 1

0.6

0.5

4Q18

3Q19

• Calculated in accordance with debt agreements.

Borrowing (in millions)

$200.0

$200.0

4Q18

3Q19

Equity

(in millions)

$140.5

$122.7

4Q18

3Q19

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APPENDIX

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RECONCILIATION OF GAAP TO NON-GAAP ("ADJUSTED") MEASURES (in millions)

			Three Months Ended					Nine Months Ended
	September 30			June 30	September 30		September 30		September 30
		2019			2019			2018			2019			2018
Net income attributable to Artisan Partners Asset Management Inc. (GAAP)	$	41.3	$	39.2		$	42.5	$	112.0	$	125.8
Add back: Net income attributable to noncontrolling interests - APH		20.5			19.8			24.0			57.6			73.3
Add back: Provision for income taxes		(7.3)			11.5			14.2			13.6			38.5
Add back: Net (gain) loss on the tax receivable agreements		19.6			-			(0.3)			19.6			(0.3)
Add back: Net investment (gain) loss of investment products attributable to APAM		(0.9)			(2.0)			(1.0)			(5.8)			(3.8)
Adjusted income before income taxes		73.2			68.5			79.4			197.0			233.5
Less: Adjusted provision for income taxes		18.4			16.1			18.6			47.5			54.8
Adjusted net income (Non-GAAP)		54.8			52.4			60.8			149.5			178.7
Average shares outstanding (in millions)
Class A common shares		51.4			51.2			49.4			51.0			48.6
Assumed vesting or exchange of:
Unvested restricted share-based awards		5.1			5.2			4.8			5.0			4.9
Artisan Partners Holdings LP units outstanding (non-controlling interest)		21.6			21.7			23.0			21.9			23.5
Adjusted shares		78.1			78.1			77.2			77.9			77.0
Basic and Diluted earnings per share (GAAP)	$	0.71	$	0.66		$	0.77	$	1.87	$	2.27
Adjusted net income per adjusted share (Non-GAAP)	$	0.70	$	0.67		$	0.79	$	1.92	$	2.32

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DETAILS ON COMPENSATION & BENEFITS EXPENSE (in millions)

			For the Three Months Ended						For the Nine Months Ended
	Sept. 30,	% of			June 30,	% of			Sept. 30,	% of			Sept. 30,	% of			Sept. 30,	% of
		2019	Rev.				2019	Rev.				2018	Rev.				2019	Rev.				2018		Rev.
Salary	$	16.2	8.0%		$	15.8	7.9%		$	15.0	7.0%		$	47.8	8.1%		$	44.0		6.9%
Incentive Compensation		67.0	33.0%				66.8	33.3%				69.3	32.6%				195.9	33.2%				207.8		32.6%
Benefits, Payroll Taxes and Other		6.7	3.3%				7.0	3.5%				5.7	2.7%				23.5	4.0%				21.2		3.3%
Equity Based Compensation Expense		9.9	4.9%				11.9	5.9%				12.7	6.0%				33.4	5.7%				41.7		6.5%
Total Compensation and Benefits	$	99.8	49.2%		$	101.5	50.6%		$	102.7	48.3%		$	300.6	50.9%		$	314.7		49.4%

• Incentive Compensation is primarily variable compensation paid to investment and distribution teams based on revenue-share percentages and discretionary cash incentives paid to other employees. Incentive Compensation increased in the September 2019 quarter as compared to the June 2019 quarter primarily due to an increase in revenues.
• Equity Based Compensation Expense of $9.9 million in the September 2019 quarter is the quarterly amortization of our equity grants. The expense decreased compared to the June 2019 quarter as higher valued grants fully amortized.

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LONG-TERM INVESTMENT RESULTS (GROSS OF FEES)

			Average Annual Total Returns (Gross)			Average Annual Value-Added
As of September 30, 2019	1 Yr	3 Yr	5 Yr	7 Yr	10 Yr	Inception	Since Inception (bp)
Growth Team
Artisan Global Opportunities (Inception: 1-Feb-07)	5.96%	13.00%	11.83%	13.15%	14.69%	10.63%	573
MSCI All Country World Index	1.38%	9.71%	6.65%	8.83%	8.34%	4.90%
Artisan Global Discovery (Inception: 1-Sept-17)	9.35%	---	---	---	---	15.73%	949
MSCI All Country World Index	1.38%	---	---	---	---	6.24%
Artisan U.S. Mid-Cap Growth (Inception: 1-Apr-97)	6.47%	14.05%	11.11%	13.46%	14.90%	15.01%	483
Russell Midcap® Index	3.19%	10.69%	9.10%	12.56%	13.06%	10.18%
Russell Midcap® Growth Index	5.20%	14.50%	11.11%	13.80%	14.07%	9.38%
Artisan U.S. Small-Cap Growth (Inception: 1-Apr-95)	3.27%	17.45%	15.35%	15.12%	16.26%	11.05%	213
Russell 2000® Index	-8.89%	8.23%	8.18%	10.43%	11.19%	8.92%
Russell 2000® Growth Index	-9.63%	9.79%	9.07%	11.42%	12.24%	7.58%
Global Equity Team
Artisan Global Equity (Inception: 1-Apr-10)	8.12%	15.53%	11.28%	12.95%	---	12.83%	490
MSCI All Country World Index	1.38%	9.71%	6.65%	8.83%	---	7.93%
Artisan Non-U.S. Growth (Inception: 1-Jan-96)	7.52%	10.02%	5.34%	8.17%	8.06%	10.13%	552
MSCI EAFE Index	-1.34%	6.48%	3.27%	6.12%	4.90%	4.61%
Artisan Non-U.S.Small-Mid Growth (Inception: 1-Jan-19)	---	---	---	---	---	21.86%	1,090
MSCI All Country World ex USA SMID Index	---	---	---	---	---	10.96%
U.S. Value Team
Artisan Value Equity (Inception: 1-Jul-05)	-0.65%	9.17%	7.74%	10.09%	11.17%	8.15%	-80
Russell 1000® Index	3.87%	13.19%	10.61%	13.20%	13.22%	8.95%
Russell 1000® Value Index	4.00%	9.43%	7.79%	11.30%	11.46%	7.37%
Artisan U.S. Mid-Cap Value (Inception: 1-Apr-99)	-1.38%	8.03%	6.15%	10.00%	10.93%	12.46%	313
Russell Midcap® Index	3.19%	10.69%	9.10%	12.56%	13.06%	9.33%
Russell Midcap® Value Index	1.60%	7.82%	7.55%	11.62%	12.28%	9.54%
International Value Team
Artisan Non-U.S. Value (Inception: 1-Jul-02)	1.59%	7.07%	5.48%	9.25%	9.64%	11.49%	562
MSCI EAFE Index	-1.34%	6.48%	3.27%	6.12%	4.90%	5.87%
Global Value Team
Artisan Global Value (Inception: 1-Jul-07)	0.64%	8.98%	7.24%	10.70%	11.59%	8.18%	383
MSCI All Country World Index	1.38%	9.71%	6.65%	8.83%	8.34%	4.35%
Sustainable Emerging Markets Team
Artisan Sustainable Emerging Markets (Inception: 1-Jul-06)	3.33%	8.78%	6.04%	4.68%	3.92%	5.48%	78
MSCI Emerging Markets Index	-2.02%	5.97%	2.33%	2.41%	3.37%	4.70%
Credit Team
Artisan High Income (Inception: 1-Apr-14)	5.83%	7.52%	7.53%	---	---	7.28%	231
ICE BofAML US High Yield Master II Index	6.30%	6.07%	5.36%	---	---	4.97%
Developing World Team
Artisan Developing World (Inception: 1-Jul-15)	21.82%	11.42%	---	---	---	9.52%	637
MSCI Emerging Markets Index	-2.02%	5.97%	---	---	---	3.15%
Thematic Team
Artisan Thematic (Inception: 1-May-17)	13.67%	---	---	---	---	27.54%	1,571
S&P 500 Market Index	4.25%	---	---	---	---	11.83%

Source: Artisan Partners/MSCI/Russell/ICE BofA Merrill Lynch. Average Annual Total Returns presents composite (gross of fees) performance for each strategy. Value Added compares returns of the composite to its benchmark. Periods less than one year are not annualized. Performance for Artisan Thematic Long/Short and Credit Opportunities Strategies has been intentionally omitted. Artisan High Income Strategy may hold loans and other security types that may not be included in the ICE BofAML US High Yield Master II Index. At times, this causes material differences in relative performance. Artisan Thematic Strategy's investments in initial public offerings (IPOs) made a material contribution to performance. IPO investments may contribute significantly to a small portfolio's return, an effect that will generally decrease as assets grow. IPO investments may be unavailable in the future. See Notes & Disclosures at the end of this presentation for more information about our investment performance.

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LONG-TERM INVESTMENT RESULTS (NET OF FEES)

			Average Annual Total Returns (Net)			Average Annual Value-Added
As of September 30, 2019	1 Yr	3 Yr	5 Yr	7 Yr	10 Yr	Inception	Since Inception (bp)
Growth Team
Artisan Global Opportunities (Inception: 1-Feb-07)	5.07%	12.05%	10.88%	12.18%	13.70%	9.71%	481
MSCI All Country World Index	1.38%	9.71%	6.65%	8.83%	8.34%	4.90%
Artisan Global Discovery (Inception: 1-Sept-17)	8.29%	---	---	---	---	14.62%	838
MSCI All Country World Index	1.38%	---	---	---	---	6.24%
Artisan U.S. Mid-Cap Growth (Inception: 1-Apr-97)	5.49%	13.01%	10.10%	12.42%	13.85%	13.95%	376
Russell Midcap® Index	3.19%	10.69%	9.10%	12.56%	13.06%	10.18%
Russell Midcap® Growth Index	5.20%	14.50%	11.11%	13.80%	14.07%	9.38%
Artisan U.S. Small-Cap Growth (Inception: 1-Apr-95)	2.25%	16.30%	14.22%	13.99%	15.12%	9.97%	105
Russell 2000® Index	-8.89%	8.23%	8.18%	10.43%	11.19%	8.92%
Russell 2000® Growth Index	-9.63%	9.79%	9.07%	11.42%	12.24%	7.58%
Global Equity Team
Artisan Global Equity (Inception: 1-Apr-10)	7.05%	14.40%	10.19%	11.84%	---	11.72%	378
MSCI All Country World Index	1.38%	9.71%	6.65%	8.83%	---	7.93%
Artisan Non-U.S. Growth (Inception: 1-Jan-96)	6.55%	9.03%	4.39%	7.19%	7.08%	9.11%	450
MSCI EAFE Index	-1.34%	6.48%	3.27%	6.12%	4.90%	4.61%
Artisan Non-U.S.Small-Mid Growth (Inception: 1-Jan-19)	---	---	---	---	---	20.92%	996
MSCI All Country World ex USA SMID Index	---	---	---	---	---	10.96%
U.S. Value Team
Artisan Value Equity (Inception: 1-Jul-05)	-1.33%	8.43%	7.00%	9.34%	10.38%	7.32%	-163
Russell 1000® Index	3.87%	13.19%	10.61%	13.20%	13.22%	8.95%
Russell 1000® Value Index	4.00%	9.43%	7.79%	11.30%	11.46%	7.37%
Artisan U.S. Mid-Cap Value (Inception: 1-Apr-99)	-2.30%	7.03%	5.17%	8.98%	9.91%	11.40%	208
Russell Midcap® Index	3.19%	10.69%	9.10%	12.56%	13.06%	9.33%
Russell Midcap® Value Index	1.60%	7.82%	7.55%	11.62%	12.28%	9.54%
International Value Team
Artisan Non-U.S. Value (Inception: 1-Jul-02)	0.65%	6.09%	4.51%	8.25%	8.63%	10.45%	458
MSCI EAFE Index	-1.34%	6.48%	3.27%	6.12%	4.90%	5.87%
Global Value Team
Artisan Global Value (Inception: 1-Jul-07)	-0.32%	7.95%	6.23%	9.65%	10.52%	7.15%	280
MSCI All Country World Index	1.38%	9.71%	6.65%	8.83%	8.34%	4.35%
Sustainable Emerging Markets Team
Artisan Sustainable Emerging Markets (Inception: 1-Jul-06)	2.31%	7.69%	4.96%	3.61%	2.85%	4.39%	-31
MSCI Emerging Markets Index	-2.02%	5.97%	2.33%	2.41%	3.37%	4.70%
Credit Team
Artisan High Income (Inception: 1-Apr-14)	5.10%	6.77%	6.78%	---	---	6.53%	156
ICE BofAML US High Yield Master II Index	6.30%	6.07%	5.36%	---	---	4.97%
Developing World Team
Artisan Developing World (Inception: 1-Jul-15)	20.57%	10.27%	---	---	---	8.39%	523
MSCI Emerging Markets Index	-2.02%	5.97%	---	---	---	3.15%
Thematic Team
Artisan Thematic (Inception: 1-May-17)	12.55%	---	---	---	---	26.30%	1,447
S&P 500 Market Index	4.25%	---	---	---	---	11.83%

Source: Artisan Partners/MSCI/Russell/ICE BofA Merrill Lynch. Average Annual Total Returns presents composite (net of fees) performance for each strategy. Value Added compares returns of the composite to its benchmark. Periods less than one year are not annualized. Performance for Artisan Thematic Long/Short and Credit Opportunities Strategies has been intentionally omitted. Artisan High Income Strategy may hold loans and other security types that may not be included in the ICE BofAML US High Yield Master II Index. At times, this causes material differences in relative performance. Artisan Thematic Strategy's investments in initial public offerings (IPOs) made a material contribution to performance. IPO investments may contribute significantly to a small portfolio's return, an effect that will generally decrease as assets grow. IPO investments may be unavailable in the future. See Notes & Disclosures at the end of this presentation for more information about our investment performance.

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LONG-TERM INVESTMENT RESULTS

% of AUM in Outperforming Strategies

93%

100% 97%

93%

93%

100% 98%

98%

98%

73%	74%	72%	77%	80%	83%
74%
	57%	58%
45%		48%

1 Year	3 Years		5 Years		10 Years	Inception
			2016		2017		2018		2019 YTD

% of AUM by Overall Lipper Ranking	% of AUM by Overall Morningstar RatingTM
2%	3%	2%
		8%

44%

46%

95%

1st Quartile

2nd Quartile

3rd Quartile

5 or 4 Star Rating

3 Star Rating

2 or 1 Star Rating

Not Yet Rated

Sources: Artisan Partners/Lipper Inc/Morningstar. % of AUM in Outperforming Strategies at December 31 of each year, unless noted otherwise. % of AUM in Outperforming Strategies represents the % of AUM in those strategies with assets under management as of December 31, 2018, where gross of fees composite performance had outperformed the benchmark for the average annual periods indicated above and since inception. % of AUM in Outperforming Strategies for each period includes only assets under management in all strategies in operation throughout the period. Lipper rankings and Morningstar Ratings are as of September 30, 2019. Lipper rankings are based on total return, are historical, and do not represent future results. Lipper Ranking does not include Funds with less than a 1-yr track record. Morningstar ratings are based on risk-adjusted return. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. % AUM, Lipper Ranking and Morningstar Rating excludes data from strategies and individual accounts for which we have ceased managing assets as of the period end. See Notes & Disclosures at the end of this presentation for more information about our investment performance.

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GLOBAL DISTRIBUTION (in billions)

Non-U.S. Client AUM/Percentage of Total AUM

20%	21%	21%	21%	21%
$23.1			$23.7	$23.1
	$22.2
	$19.9
3Q18	4Q18	1Q19	2Q19	3Q19

		U.S. vs. Non-U.S. Client Net Flows
	Quarter		$0.2		Year to Date
	$0.1
			$(0.1)
$(0.3)	$(0.4)			$(0.2)
	$(0.6)
	$(0.7)		$(0.7)
	$(0.8)

$(1.3)

$(1.6)

$(2.3)

$(5.0)

3Q18

4Q18

1Q19

2Q19

3Q19

2018

2019

U.S.

Non-U.S.

U.S.

Non-U.S.

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NOTES & DISCLOSURES

Forward-Looking Statements

Certain statements in this presentation, and other written or oral statements made by or on behalf of the Company, are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and our future performance, as well as management's current expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are only predictions based on current expectations and projections about future events. These forward-looking statements are subject to a number of risks and uncertainties, and there are important factors that could cause actual results, level of activity, performance, actions or achievements to differ materially from the results, level of activity, performance, actions or achievements expressed or implied by the forward-looking statements. These factors include: the loss of key investment professionals or senior management, adverse market or economic conditions, poor performance of our investment strategies, change in the legislative and regulatory environment in which we operate, operational or technical errors or other damage to our reputation and other factors disclosed in Artisan Partners' filings with the Securities and Exchange Commission, including those factors listed under the caption entitled "Risk Factors" in Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the SEC on February 20, 2019. The Company undertakes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

Investment Performance

We measure the results of our "composites", which represent the aggregate performance of all discretionary client accounts, including pooled funds, invested in the same strategy except those accounts with respect to which we believe client-imposed restrictions may have a material impact on portfolio construction and those accounts managed in a currency other than U.S. dollars (the results of these accounts, which represented approximately 11% of our assets under management at September 30, 2019, are maintained in separate composites, which are not presented in these materials). Certain composites may also only reflect data of a single account managed by Artisan.

Results for any investment strategy described herein, and for different investment products managed to a strategy, are affected by numerous factors, including different material market or economic conditions; different investment management fee rates, brokerage commissions and other expenses; and the reinvestment of dividends or other earnings. Artisan High Income Strategy may hold loans and other security types that may not be included in the ICE BofAML US High Yield Master II Index. At times, this causes material differences in relative performance. Artisan Thematic Strategy's investments in initial public offerings (IPOs) made a material contribution to performance. IPO investments may contribute significantly to a small portfolio's return, an effect that will generally decrease as assets grow. IPO investments may be unavailable in the future. The current performance for each Artisan strategy may be positive or negative, and past performance does not guarantee future results.

Composite returns are net of trade commissions and transaction costs, and have been presented net of management fees and performance-based fees, as applicable and unless otherwise stated. For the purpose of calculating net composite returns, fees relate to the highest model investment advisory fees applied to client accounts within the composite. Fees may be higher for certain pooled vehicles and the composite may include accounts with performance-based fees.

In these materials, we present "Value-Added", which is the amount in basis points by which the average annual gross or net composite return of each of our strategies for which we present the metric has outperformed or underperformed the broad-based market index commonly used to compare the performance of the relevant strategy. The broad-based market indexes used to compare performance for each of our strategies are as follows: Non-U.S. Growth Strategy / Non-U.S. Value Strategy-MSCI EAFE Index; Global Equity Strategy / Global Opportunities Strategy / Global Value Strategy / Global Discovery Strategy-MSCI ACWI Index; Global Small-Cap Growth Strategy (Jul 1, 2013-Dec 31, 2016)-MSCI ACWI Small Cap Index; Non-U.S.Small-Cap Growth Strategy (Jan 1, 2002-Nov 30, 2018)-MSCI EAFE Small Cap Index; Non-U.S.Small-MidGrowth-MSCI ACWI ex-USA SMID Index; U.S. Mid-Cap Growth Strategy / U.S. Mid-Cap Value Strategy-Russell Midcap® Index; U.S. Small-Cap Growth Strategy / U.S. Small-Cap Value Strategy (Jun 1, 1997-Apr 30, 2016)-Russell 2000® Index; Value Equity Strategy-Russell 1000® Index; Developing World Strategy / Sustainable Emerging Markets Strategy-MSCI Emerging Markets Index; High Income Strategy / Credit Opportunities Strategy-BofA Merrill Lynch High Yield Master II Index; Thematic Strategy / Thematic Long/Short Strategy -S&P® 500 Index. Index returns do not reflect the payment of fees and expenses and are not available for direct investment.

In this document, we present information based on Morningstar, Inc., or Morningstar, ratings for series of Artisan Partners Funds, Inc. ("Artisan Funds"). The Morningstar ratings refer to the ratings by Morningstar of the share class of the respective series of Artisan Funds with the earliest inception date and are based on a 5-star scale. Morningstar data ©2019, Morningstar, Inc. All Rights Reserved. Morningstar data contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The Morningstar Rating is initially given on a fund's three-year track record and change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-,five-, and 10-year (if applicable) Morningstar Rating metrics.

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NOTES & DISCLOSURES

The Overall Morningstar for a fund is derived from a weighted average of the performance figures associated with its three-year,five-year, and ten-year (if applicable) Morningstar Ratings metrics. The ratings which form the basis for the information reflected in this presentation, and the fund categories in which they are rated, relating to each Fund's Investor Share Class are: Artisan Developing World Fund - Diversified Emerging Markets; Artisan Sustainable Emerging Markets Fund-Diversified Emerging Markets; Artisan Global Equity Fund-World Large Stock; Artisan Global Opportunities Fund-World Large Stock; Artisan Global Value Fund-World Large Stock; Artisan High Income Fund-High Yield Bond; Artisan International Fund-Foreign Large Growth; Artisan International Small-MidFund-Foreign Small/Mid Growth; Artisan International Value Fund-Foreign Large Blend; Artisan Mid Cap Fund-Mid-Cap Growth; Artisan Mid Cap Value Fund-Mid-Cap Value; Artisan Small Cap Fund-Small Growth; Artisan Value Fund-Large Value. Morningstar ratings are initially given on a fund's three-year track record and change monthly. Ratings are based on risk-adjusted returns and are historical and do not represent future results.

The Overall Lipper Ranking for a fund is derived from the ranking of each fund's since inception return by Lipper, Inc. The ratings which form the basis for the information reflected in this presentation, and the fund categories in which they are rated, relating to each Fund's Investor Share Class are: Artisan Developing World Fund-Emerging Markets; Artisan Sustainable Emerging Markets Fund-Emerging Markets; Artisan Global Equity Fund-GlobalMulti-Cap Growth; Artisan Global Discovery Fund-GlobalSmall/Mid-Cap; Artisan Global Opportunities Fund- Global Multi-Cap Growth; Artisan Global Value Fund-GlobalMulti-Cap Value; Artisan High Income Fund-High Yield; Artisan International Fund-InternationalLarge-Cap Growth; Artisan International Small-MidFund-InternationalSmall/Mid-Cap Growth; Artisan International Value Fund-InternationalMulti-Cap Core; Artisan Mid Cap Fund-Multi-Cap Growth; Artisan Mid Cap Value Fund-Mid-Cap Value; Artisan Small Cap Fund-Small-Cap Growth; Artisan Value Fund-Multi-Cap Value; Artisan Thematic Fund-GlobalMulti-Cap Growth.

Financial Information

Throughout these materials, we present historical information about our assets under management and our average assets under management for certain periods. We use our information management systems to track our assets under management and we believe the information in these materials regarding our assets under management is accurate in all material respects. We also present information regarding the amount of our assets under management sourced through particular distribution channels. The allocation of assets under management sourced through particular distribution channels involves estimates and the exercise of judgment. We have presented the information on our assets under management sourced by distribution channel in the way in which we prepare and use that information in the management of our business. Data sourced by distribution channel on our assets under management are not subject to our internal controls over financial reporting.

Rounding

Any discrepancies included in these materials between totals and the sums of the amounts listed are due to rounding.

Trademark Notice

The MSCI EAFE Index, the MSCI EAFE Growth Index, the MSCI ACWI ex USA SMID Index, the MSCI EAFE Value Index, the MSCI ACWI Index, and the MSCI Emerging Markets Index are trademarks of MSCI Inc. MSCI Inc. is the owner of all copyrights relating to these indices and is the source of the performance statistics of these indices that are referred to in these materials. 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.

The Russell 2000® Index, the Russell 2000® Value Index, the Russell Midcap® Index, the Russell Midcap® Value Index, the Russell 1000® Index, the Russell 1000® Value Index, the Russell Midcap® Growth Index, the Russell 1000® Growth Index and the Russell 2000® Growth Index are trademarks of Russell Investment Group. Russell Investment Group is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto. The presentation may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a presentation of Artisan Partners. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in Artisan Partners' presentation thereof.

The ICE BofAML US High Yield Master II Total Return Index is owned by ICE Data Indices, LLC, used with permission. ICE Data Indices, LLC permits use of the ICE BofAML indices and related data on an "as is" basis, makes no warranties regarding same, does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofAML indices or any data included in, related to, or derived therefrom, assumes no liability in connection with the use of the foregoing, and does not sponsor, endorse, or recommend Artisan Partners or any of its products or services.

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NOTES & DISCLOSURES

The S&P 500 Index is a product of S&P Dow Jones Indices LLC (S&P DJI) and/or its affiliates and has been licensed for use. Copyright© 2019 S&P Dow Jones Indices LLC, a division of S&P Global, Inc. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). None of S&P DJI, Dow Jones, their affiliates or third party licensors makes any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.

Presentation

None of the information in these materials constitutes either an offer or a solicitation to buy or sell any fund securities, nor is any such information a recommendation for any fund security or investment service.

Copyright 2019 Artisan Partners. All rights reserved. This presentation may not be reproduced in whole or in part without Artisan Partners' permission.

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