Performance evaluation of the Artisan International Fund
The Artisan International Fund Investor Class (ARTIX) has had a forgettable 2016 so far. As of August, it was the second-worst performer in 2016 among the funds under review, and it was one of only three funds to have been in the red for the period.
In the one-year period, the fund has posted negative returns and is among bottom three funds. We’ve graphed its performance against the iShares MSCI ACWI ex U.S. ETF (ACWX) and the iShares MSCI EAFE ETF (EFA). Let’s look at what’s contributed to this terrible performance so far in 2016.
Contributions to returns
The consumer discretionary sector has led all negatively contributing sectors so far in 2016. Delphi Automotive (DLPH), series C shares of Liberty Global (LBTYA), and Royal Caribbean Cruises (RCL) have been the biggest detractors from the sector. The absence of any major positive contributors has ensured that negative contributors have had their way with returns from the sector.
The healthcare and industrials sectors are quite close to each other in terms of their negative contributions to the fund. Bayer (BAYZF) has emerged as the biggest negative contributor from the healthcare sector by far. Allergan (AGN) is a distant second. However, Medtronic (MDT) has been crucial in reducing a sizable portion of these negative contributions.
Meanwhile, International Consolidated Airlines Group has towered above all other negatively contributing stocks in the industrials sector. Canadian Pacific Railway (CP) has chipped away some of these negative contributions.
Consumer staples, technology, and materials stocks have helped the fund to reduce some of the drag caused by the above-mentioned sectors. Nestlé (NSRGY) and Danone (DANOY) have been the stars for consumer staples, while ASML Holding (ASML) and Taiwan Semiconductor Manufacturing (TSM) have outperformed in the technology sector. BT Group (BT) has helped telecommunications services up.
To say that ARTIX is having a forgettable year is an understatement. The fund has certainly seen better days. Its portfolio turnover is high, indicating that its management is trying to find stocks that work. Existing investors should exercise caution and think about diversifying their international fund investments beyond ARTIX.
Let’s now move on to the Dreyfus International Stock Fund Class A (DISAX).