Artisan Developing World Fund Q2 2025 Commentary

2025-07-13 14:40:00 ET

Dear Fellow Shareholder:

Market Backdrop

The Artisan Developing World Fund (Investor Class) returned 14.40% for the quarter ended June 30, 2025, versus 11.99% for the MSCI Emerging Markets Index (all returns in USD unless stated otherwise), marking the 10-year anniversary of the Artisan Developing World Fund. Since June 30, 2015, the Artisan Developing World Fund has returned 192.04% cumulatively, versus 60.03% for the MSCI Emerging Markets Index. It was a remarkable quarter for asset prices globally. Equities reached new all-time highs despite uncertainty around US trade initiatives, strife in longer dated bond markets, shifts in global currency preferences, and flashpoints in geopolitical conditions. US markets, in fact, outpaced international markets in local currency terms (NASDAQ Composite Index +17.96%, S&P 500® Index +10.94%, MSCI EAFE Index local +4.80%) but lagged in dollar terms (MSCI EAFE Index +11.78%). The MSCI Emerging Markets Currency Index rose 5.34% during the quarter and included a 13.7% rise in the Taiwanese dollar and a 9.1% increase in the Korean won. In developed markets, the Swiss franc increased 11.1%, and the euro increased 8.7%. Bond markets proved to be a key transmission mechanism for US exceptionalism concerns. Thirty-year yields in the US rose from 4.58% to 4.79% despite indications the Federal Reserve may soon lower policy rates. Long-term yields in Japan, the UK and Germany also faced upward pressure due to corresponding fiscal concerns. Gold prices rose and digital currencies rallied as investors sought alternative stores of value. Korea was the best performing major market during the quarter (MSCI Korea Index +32.71% in dollar terms), as the country elected a new president marking a potential end to a period of political turbulence and challenged corporate governance. Taiwan (MSCI Taiwan Index) also rose 26.09% in dollar terms, including a surge in the currency in anticipation of the terms of a new trade deal with the United States. Central and Eastern European markets rose (MSCI Czech Republic Index +16.30%, MSCI Hungary Index +20.96%, MSCI Poland Index +15.81%) in advance of a regional uplift from German military and infrastructure spending and due to currency appreciation. India (MSCI India Index +9.22%) performed decently despite tensions with Pakistan, as the country benefited from lower policy rates and a less restrictive central bank. Mexico (MSCI Mexico Index) rose 20.53% due to strong equity market and currency appreciation, as investors viewed it as a relative winner in trade deliberations. China (MSCI China Index) rose just 2.01% as the markets consolidated after a period of DeepSeek-related excitement and heightened trade tensions....

Read the full article on Seeking Alpha

For further details see: