| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.9% | 1.5% | 36.0% |
| 2025 |
|---|
| 36.3% |
Artisan International Fund delivered strong performance in Q4 2025, with the portfolio returning 1.56% versus 4.86% for the MSCI EAFE Index. For the full year, the fund generated 36.31% returns, outperforming both primary and secondary benchmarks. Performance was driven by disciplined stock selection and thoughtful sector positioning, particularly in industrials through defense holdings like South Korean companies Hanwha Aerospace and LIG Nex1. Utilities also contributed positively, with National Grid and SSE benefiting from investor confidence in regulated asset bases and grid modernization investments. The portfolio added exposure to electrification themes through Samsung Electronics and CATL, while reducing defense exposure after strong performance. Key risks include elevated geopolitical tensions and potential AI bubble concerns. Looking ahead, the manager sees compelling opportunities in European and international markets, particularly as government spending drives economic activity through defense, infrastructure, and energy security investments. The portfolio maintains exposure to structural investment trends rather than multiple expansion.
The fund seeks to invest in companies with sustainable growth characteristics at attractive valuations that do not fully reflect their long-term potential, focusing on long-term secular growth trends including defense spending, electrification, and grid modernization themes.
Looking ahead, we believe the investment backdrop in Europe and international markets more broadly continues to offer a compelling opportunity set, particularly as government spending becomes an increasingly important driver of economic activity. International markets remain an attractive source of value and opportunity relative to the US, with more reasonable valuations and earnings growth supported by structural investment trends rather than multiple expansion alone.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 19 2026 | 2025 Q4 | 005930.KS, 0700.HK, 300750.SZ, AI.PA, DANSKE.CO, ELI.BR, NGG, SSE.L, TSCO.L, TSM, UBS | defense, Electrification, Europe, growth, international, semiconductors, Utilities, value |
012450 KS 079550 KS 010120 KS NG LN SSE LN 005930 KS TSCO LN MNC 300750 CH MELI |
The portfolio benefited from defense holdings including South Korean companies Hanwha Aerospace and LIG Nex1. Defense companies continue to expand globally with European governments investing… |
| Oct 19 2025 | 2025 Q3 | 079550 KS, 300750 CH, A012450 KS, BABA, CRH, GALD SW, TCEHY, UCB | aerospace, defense, Electrification, Energy Storage, financials |
UCB BB UBSG SW 012450 KS 3750 HK |
Electrification is a central theme driven by EV demand, AI power needs, and grid expansion, benefiting holdings like CATL and Korea Electric Power. Rising global… |
| Jun 30 2025 | 2025 Q2 | - | diversification, fundamentals, Governance, International Equities, valuation gaps |
BAB LN 7011 JP 064350 KS UCB BB MOVE SW ARGX BB AI FP |
The letter discusses opportunities in non-U.S. markets where valuation gaps persist despite improving fundamentals. Management highlights selective exposure to companies benefiting from structural growth and… |
| Mar 31 2025 | 2025 Q1 | 012450 KS, 7182 JP, AI FP, ARGX BB, DTE GR, TCEHY, TME, UCB BB | - | - | - |
| Dec 31 2024 | 2024 Q4 | 4091 JP, ABI BB, AER, AMZN, KO, MRO LN, NVO, SHOP | - | - | - |
| Sep 30 2024 | 2024 Q3 | 4091 JP, 4568 JP, 4578 JP, 7182 JP, 8316 JP, AC FP, AER, AI FP, ARGX, DB, MRO LN, NGG, TEMN SW, WIZZ LN | - | - | - |
| Jun 30 2024 | 2024 Q2 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Defense SpendingThe entire world is rapidly rearming off an extremely low base of defense spending. This exposure focuses on companies that make armaments for nation state security and materially outperformed for the year. |
Defense Armaments Rheinmetall Palantir RTX |
Energy TransitionThe portfolio maintains significant exposure to electrification themes through companies like Bloom Energy, which provides clean, reliable power solutions for AI data centers. The energy transition represents a structural opportunity as companies race to build power infrastructure to support growing electricity demands from AI workloads. |
Electrification Clean Energy Power Generation Fuel Cells Grid Infrastructure | |
Grid UpgradeUtilities are deploying ever-accelerating amounts of capital into grid infrastructure to meet rising electricity demand. S&P 500 Utility Index capex forecasts for 2026 and 2027 increased by 16% and 15% respectively. Higher levels of capital deployed within the regulated utility framework are lifting utility growth profiles. |
Grid Infrastructure Capital Expenditure Regulated Utilities Transmission Power Grid | |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable | |
| 2025 Q3 |
DefenseThe team initiated a position in Curtiss-Wright, believing the company is entering a period where multiple near-term growth drivers are converging, including rising defense budgets, commercial aerospace production ramps, nuclear power plant life extensions and new builds, and submarine production. |
Defense Budgets Aerospace Nuclear Submarines |
ElectrificationPortfolio maintains largest absolute and relative exposure to Industrials sector representing conviction in Electrification theme. This includes companies like Bloom Energy providing power solutions for AI data centers and First Solar manufacturing solar panels. The theme benefits from energy transition and infrastructure needs. |
Power Solar Energy Storage Infrastructure Clean Energy | |
FinancialsEuropean banks have been rehabilitated after years in purgatory, with returns of 77% in 2025. Return on equity has normalized above 12% following exit from ultra-low rates, while capital positions have been rebuilt. However, supportive factors are well-appreciated by markets, reflected in significant valuation re-rating. |
Banks Return On Equity Interest Rates Capital Valuations | |
| 2025 Q2 |
InternationalHigh-quality international businesses trade at fractions of US multiples, with the manager positioning clients to take advantage of this divergence. Despite US equity market dominating investor mindshare, the rest of the world returned 32.6% in dollar terms in 2025 versus SPY's 17.7%. |
Discount Opportunity Outperformance Quality Positioning |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2025 | Fund Letters | Mark L. Yockey | BAB LN | Babcock International Group PLC | Other | Aerospace & Defense | Bull | NYSE | buybacks, Defense, dividends, Europe, growth, infrastructure, Margins, NATO | Login |
| Jan 19, 2026 | Fund Letters | Mark L. Yockey | MELI | MercadoLibre, Inc. | Consumer Discretionary | Internet Retail | Bear | NASDAQ | ecommerce, exit, Fintech, Margins, valuation | Login |
| Jun 30, 2025 | Fund Letters | Mark L. Yockey | 7011 JP | Mitsubishi Heavy Industries, Ltd. | Industrials | Industrial Conglomerates | Bull | Taiwan Stock Exchange | backlog, Defense, Electrification, machinery, Orders, Turbines | Login |
| Jun 30, 2025 | Fund Letters | Mark L. Yockey | 064350 KS | Hyundai Rotem Company | Industrials | Construction Machinery & Heavy Trucks | Bull | Korea Exchange | Defense, Exports, infrastructure, Margins, Orders, Rail | Login |
| Jun 30, 2025 | Fund Letters | Mark L. Yockey | UCB BB | UCB SA | Financials | Biotechnology | Bull | Shanghai Stock Exchange | growth, Immunology, Keywords: biologics, Margins, Neurology, pipeline | Login |
| Jun 30, 2025 | Fund Letters | Mark L. Yockey | MOVE SW | Medacta Group SA | Health Care | Health Care Equipment | Bull | Swiss Exchange | growth, Implants, Margins, Medtech, Orthopedics, Procedures | Login |
| Jun 30, 2025 | Fund Letters | Mark L. Yockey | ARGX BB | argenx SE | Health Care | Biotechnology | Bear | Shanghai Stock Exchange | Autoimmune, biologics, Competition, Demand, Expenses | Login |
| Jun 30, 2025 | Fund Letters | Mark L. Yockey | AI FP | Air Liquide SA | Information Technology | Chemicals | Bull | Euronext Stock Exchange | electronics, Energytransition, Hydrogen, Industrialgases, Margins | Login |
| Jan 19, 2026 | Fund Letters | Mark L. Yockey | 012450 KS | Hanwha Aerospace Co., Ltd. | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | backlog, cashflow, Defense, Exports, Geopolitics | Login |
| Jan 19, 2026 | Fund Letters | Mark L. Yockey | 079550 KS | LIG Nex1 Co., Ltd. | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Defense, earnings, Exports, Geopolitics, Missiles | Login |
| Jan 19, 2026 | Fund Letters | Mark L. Yockey | 010120 KS | LS Electric Co., Ltd. | Industrials | Electrical Equipment | Bull | New York Stock Exchange | Contracts, Electrification, Grid, infrastructure, Power | Login |
| Jan 19, 2026 | Fund Letters | Mark L. Yockey | NG LN | National Grid plc | Utilities | Multi-Utilities | Bull | New York Stock Exchange | cashflow, Electrification, Grid, Regulation, utilities | Login |
| Jan 19, 2026 | Fund Letters | Mark L. Yockey | SSE LN | SSE plc | Utilities | Electric Utilities | Bull | New York Stock Exchange | CapEx, Grid, Regulation, renewables, utilities | Login |
| Oct 19, 2025 | Fund Letters | Mark L. Yockey | UCB BB | UCB SA | Financials | Pharmaceuticals | Bull | Shanghai Stock Exchange | Catalysts, dermatology, guidance, Neurology, operating leverage, Peak-sales, pipeline | Login |
| Jan 19, 2026 | Fund Letters | Mark L. Yockey | 005930 KS | Samsung Electronics Co., Ltd. | Information Technology | Semiconductors | Bull | New York Stock Exchange | AI, HBM, Memory, semiconductors, technology | Login |
| Oct 19, 2025 | Fund Letters | Mark L. Yockey | UBSG SW | UBS Group AG | Financials | Banks—Diversified | Bull | Swiss Exchange | buybacks, Capital-rules, Cost control, Inflows, multiple expansion, profitability, wealth management | Login |
| Jan 19, 2026 | Fund Letters | Mark L. Yockey | TSCO LN | Tesco PLC | Consumer Staples | Food Retail | Bull | New York Stock Exchange | buybacks, Consumerstaples, Defensiveness, grocery, Pricingpower | Login |
| Oct 19, 2025 | Fund Letters | Mark L. Yockey | 012450 KS | Hanwha Aerospace Co., Ltd. | Industrials | Aerospace & Defense | Bull | NYSE | backlog, CapEx, Defense, Exports, Margins, NATO, Scalability | Login |
| Jan 19, 2026 | Fund Letters | Mark L. Yockey | MNC | Monadelphous Group Ltd | Industrials | Industrial Services | Bull | New York Stock Exchange | Automation, Contracts, Defense, infrastructure, Security | Login |
| Oct 19, 2025 | Fund Letters | Mark L. Yockey | 3750 HK | Contemporary Amperex Technology Co., Limited (CATL) | Industrials | Electrical Components & Equipment | Bull | NYSE | energy storage, Ev batteries, market share, Oems, profitability, scale, Shipments | Login |
| Jan 19, 2026 | Fund Letters | Mark L. Yockey | 300750 CH | Contemporary Amperex Technology Co., Limited | Industrials | Electrical Equipment | Bull | Shenzhen Stock Exchange | Batteries, Electrification, Energystorage, EVs, scale | Login |
| TICKER | COMMENTARY |
|---|---|
| 005930.KS | Top gainers included Samsung (+38% in U.S. dollar terms) |
| 0700.HK | Shinya also visited Shenzhen, where Star Magnolia Capital organized an educational visit for our families to Tencent's headquarters, alongside meetings with several promising early-stage companies. |
| 300750.SZ | CATL alone commands 38% market share in global lithium-ion battery production |
| AI.PA | Air Liquide, one of our larger holdings in the portfolio, experienced downward market pressure. We trimmed our position over the last few months based on valuation yet view the company's strategic positioning in decarbonization and ongoing contract wins supporting durable earnings potential. |
| ELI.BR | We added to our position in Elia Group, an electricity transmission company operating in Belgium and Germany. Elia is one of the fastest growing transmission system operators in Europe, supported by a significant acceleration in capital investment across the German and Belgian electricity grids, which emphasizes management's expectation for net income growth exceeding 20% annually over the next several years. In our view, the stock's current valuation does not fully capture the strength of Elia's growth and the earnings visibility provided by the company's expanding regulated asset base, particularly relative to historical levels and comparable utility peers in the portfolio, such as National Grid and SSE. Ongoing policy support for energy security and grid reliability further strengthens the long-term investment case for transmission operators positioned at the center of Europe's power networks. |
| NGG | National Grid contributed positively, reflecting investor confidence in regulated asset bases, long-duration cash flows and accelerating investment tied to grid modernization and renewable energy infrastructure. |
| SSE.L | SSE, the UK integrated utility, delivered strong returns, supported by its upgraded investment plan and improved visibility across regulated earnings and renewable infrastructure growth. |
| TSCO.L | Tesco, a UK-based multinational grocery and retail company operating a leading supermarket chain. Now one of our top 10 holdings in the portfolio, Tesco continues to benefit from its scale advantages and price leadership, which have allowed it to gain market share despite a competitive environment and a UK consumer backdrop that remains value conscious. At the same time, margin contributions from initiatives in retail media and continued share repurchases support earnings growth without requiring an improvement in consumer spending. |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
| UBS | UBS Group was a meaningful contributor to performance, despite the portfolio's overall financials sector underperformance this quarter. The financial services company's shares advanced to 17-year highs as investors responded positively to indications that Swiss regulators may adopt a more balanced approach to future capital requirements than initially proposed earlier in the year. A more constructive regulatory framework would allow the bank to maintain balance sheet flexibility while supporting capital returns, helping it to maintain its competitive position internationally. Operationally, UBS continues to execute well, with resilient net new money inflows across its core wealth management franchise and steady progress integrating Credit Suisse. We believe the combination of cost synergies, improving operating efficiency and disciplined capital management will help UBS deliver sustainable earnings growth over the near term, even amid a more uncertain macroeconomic environment in Europe. |
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