Artio™ International Equity Fund II

Share Class	Ticker Symbol	CUSIP	Category	Investment Minimum†	Benchmark
A	JETAX	04315J845	International Equity	$1,000	MSCI ACWI (ex-US)
I	JETIX	04315J837	International Equity	$1 million	MSCI ACWI (ex-US)
† Represents the minimum initial investment for regular accounts. Class A shareholders may make additional investments in the Fund at a minimum of $1,000, invest in an Individual Retirement Account (IRA) or in a tax-deferred retirement plan other than an IRA for a minimum of $100.

 

Fact Sheet: Performance (fund and benchmark), Portfolio Characteristics, Geographic Allocation, Sector Allocation, Top Ten Equity Holdings

Commentary

Country Diversification

Reprints/Replays

Reprint: The 25 Best Mutual Funds. Kiplinger’s Personal Finance. May 2009.

Reprint: Equity Manager of the Year. Money Management Letter. March 23, 2009.

Investment Objective

The Artio International Equity Fund II ("International Equity Fund II" or "Fund") seeks long-term growth of capital. The Fund attempts to meet this goal by investing in a wide variety of equity securities issued throughout the world, normally excluding the United States.  The Fund invests in mid- to large-capitalization companies.

Who Should Invest

The International Equity Fund II may be a good choice for investors who are pursuing long-term capital growth of capital through investments outside of the United States. The Fund has a bias toward mid and large capitalization companies in both developed and emerging market countries; investments will not be made in what the Adviser considers small-capitalization issues. The Fund offers the potential to diversify and obtain international exposure within a predominantly US-focused equity portfolio.

Investment Managers

	Rudolph-Riad Younes, CFA, is a Managing Director and Head of International Equity at Artio Global Management LLC ("Artio Global"). Together with Richard C. Pell, he is the Co-Portfolio Manager of the International Equity Fund and International Equity Fund II. Prior to joining Artio Global's predecessor organization, Julius Baer, in 1993, Riad was an Associate Director at Swiss Bank Corp. Riad holds the Chartered Financial Analyst designation and received an MBA in Management from Yale University and a Master of Science degree in Electrical Engineering from Columbia University. He is fluent in English, Arabic and French and has a working knowledge of German.
	Richard C. Pell is Chief Investment Officer of Artio Global Management LLC ("Artio Global"). In this capacity, Richard has overall responsibility for the investment process across all strategies and accounts. Concurrently, he serves as Co-Portfolio Manager of the International Equity Fund and International Equity Fund II with partner, Rudolph-Riad Younes. Richard joined Artio Global's predecessor organization, Julius Baer, in 1995 subsequent to his tenure as Head of Global Portfolio Management with Bankers Trust Company, a firm he served for five years. Starting in 1988, he was employed by Mitchell Hutchins Institutional Investors where he served as Head of Corporate Bonds and Mortgage-Backed Securities. Richard earned an MBA in Finance from New York University and a Bachelor of Arts degree in History from the University of California, Berkeley.

Month-end Performance (%) as of 2/28/10

Share Class	1 Mo	3 Mo	YTD	1 Yr	3 Yr*	5 Yr*	10 Yr*	Since Inception*	Inception Date
A	-0.72	-5.00	-6.32	44.48	-7.03	-	-	4.26	05/04/05
I	-0.63	-4.94	-6.28	44.91	-6.78	-	-	4.57	05/04/05
* Annualized

 

Quarter-end Performance (%) as of 12/31/09

Share Class	1 Mo	3 Mo	YTD	1 Yr	3 Yr*	5 Yr*	10 Yr*	Since Inception*	Inception Date
A	1.41	2.17	24.48	24.48	-4.90	-	-	5.88	05/04/05
I	1.43	2.27	24.79	24.79	-4.63	-	-	6.20	05/04/05
* Annualized

 

Annual Performance (%)

Share Class	2008	2007	2006	2005	2004	2003	2002	2001	2000	Inception Date
A	-40.52	16.17	28.63	18.00¹	N/A	N/A	N/A	N/A	N/A	05/04/05
I	-40.32	16.45	29.02	18.30¹	N/A	N/A	N/A	N/A	N/A	05/04/05
1. Partial year—since share class inception

The performance quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be higher or lower than the performance quoted.

Investment performance reflects fee waivers. In the absence of such waivers, total return would be reduced.

Morningstar Ratings as of 12/31/09

Share Class	Overall	3 Yr	5 Yr	10 Yr
A			N/A	N/A
I			N/A	N/A

Morningstar rated this Fund among 635 Foreign Large Blend Stock Funds for the overall and 3-year periods, as of the above referenced date (based on risk adjusted total returns). The Morningstar Overall 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.

Growth of a $10,000 Investment

(Class A Shares: 5/4/05–12/31/09^†)

† Hypothetical illustration of $10,000 invested for the above referenced period assuming reinvestment of dividends and capital gains distributions. This period was one in which stock and bond prices fluctuated and the results should not be considered as a representation of dividend income or capital gain or loss which may be realized from an investment in the International Equity Fund II today. No adjustment has been made for shareholder tax liability on dividends or capital gains distributions.

Fees (%) as stated in the prospectus dated 3/1/10

Share Class	Sales Load†	Gross Expense Ratio	Net Expense Ratio
A	No-load	1.28	1.24¹
I	No-load	1.03	0.98¹
† While the Fund is no-load, management and distribution fees and other expenses still apply. 1. Reflects a voluntary expense reduction agreement that may be discontinued at any time. The Investment Adviser has also agreed to waive a portion of its management fees; this waiver may be discontinued at any time by the Fund's board. Additional expenses are net of reductions related to custody offset arrangements.

 

Prospectus

Fact Sheet: Performance (fund and benchmark), Portfolio Characteristics, Geographic Allocation, Sector Allocation, Top Ten Equity Holdings

Commentary

Copyright 2009 Morningstar, Inc. All rights reserved. The information 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. Past performance is no guarantee of future results.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)

Prospectus

Statement of Additional Information (SAI)

Annual Report (fiscal year end 10/31/09)

Semi-annual Report (fiscal period ending 4/30/09)

Form NQ (as of 7/31/09)

Holdings Report (as of 10/31/09) Holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Holdings Report (as of 9/30/09) Holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Holdings Report (as of 8/31/09) Holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Form N-PX (Annual Report of Proxy Voting)

Proxy Procedures - International: Artio Global Management LLC, the Adviser for the Artio Global Funds, has outsourced its proxy voting to RiskMetrics Group (RMG). The Funds have thus adopted RMG’s policies as their own.

Proxy Procedures - US: Artio Global Management LLC, the Adviser for the Artio Global Funds, has outsourced its proxy voting to RiskMetrics Group (RMG). The Funds have thus adopted RMG's policies as their own.

Press Release: Artio Global Funds’ 2009 final tax distributions

 

Distributions-Class A

					Income		Capital Gains			Total
Year	Record Date	Ex-dividend Date	Payable Date		Distribution ($)		Short Term ($)	Long Term ($)		Distribution ($)
2009	12/28/09	12/29/09	12/30/09		0.55457		0.0	0.0		0.55457
2008	12/26/08	12/29/08	12/30/08		0.32877		0.0	0.0		0.32877
2007	12/26/07	12/27/07	12/28/07		0.13828		0.14795	0.12239		0.40862
2006	12/26/06	12/27/06	12/27/06		0.03459		0.04601	0.00681		0.08741

 

Distributions-Class I

					Income		Capital Gains			Total
Year	Record Date	Ex-dividend Date	Payable Date		Distribution ($)		Short Term ($)	Long Term ($)		Distribution ($)
2009	12/28/09	12/29/09	12/30/09		0.57858		0.0	0.0		0.57858
2008	12/26/08	12/29/08	12/30/08		0.36083		0.0	0.0		0.36083
2007	12/26/07	12/27/07	12/28/07		0.17030		0.14795	0.12239		0.44064
2006	12/26/06	12/27/06	12/27/06		0.06008		0.04601	0.00681		0.1129

 

ICI Primary for the Artio Global Funds Year-end Distributions

Supplemental Tax Information for the Artio Global Funds

Principal Strategies

The International Equity Fund II seeks to achieve its goal by investing in a wide variety of international equity securities issued throughout the world, normally excluding the United States.

Under normal circumstance, the Fund will invest at least 80% of its net assets (including futures,options,swaps,other equity related instruments, accrued interest and borrowings for investment purposes) in international equity securities. To achieve its investment goal the Fund may use derivatives to a very substantial extent. The Fund will ordinarily invest at least 65% of its total assets in no fewer than three different countries outside the United States. The Fund is not constrained by a particular investment style, and may invest in "growth" or "value" securities. The Fund generally follows a multi-capitalization approach that focuses on mid- to large-capitalization companies which Artio Global Management LLC (the "Adviser" or "Artio Global") currently views to be companies that have a market capitalization greater than $2.5 billion as determined at the time of purchase.

The Fund may invest in derivatives for hedging and non-hedging purposes.   Derivatives are financial instruments the value of which is derived from another security, a commodity (such as gold or oil), an index or a currency  (a measure of value or rates, such as the S&P 500 Index or the prime lending rate).The Fund typically uses derivatives as a substitute for taking a position in the underlying asset and/or as part of a strategy to reduce risk, such as interest rate risk, currency risk, and price risk. Such derivatives may include, but are not limited to, futures contracts, forward foreign exchange contracts (“forward contracts”), non-deliverable forwards, options, swaps, warrants and structured investments.

The Fund may invest up to 35% of its total net assets in the securities of issuers located in emerging markets. The Fund's investment in emerging market securities will remain consistent with its status as a diversified international equity fund.

Artio Global Management LLC (the "Adviser" or "Artio Global") uses both a bottom-up and top-down approach to select investments.  The Adviser generally uses a bottom up approach that focuses on company specific factors for selecting securities in developed markets. The Adviser generally uses a top-down approach for investments in emerging markets, indices and ETF’s, focusing on economic and geopolitical factors in a given area. The Adviser  generally uses a bottom-up and top-down approach in Japan.

Risks

Please read the Fund's risks or consult the Fund's prospectus for more complete information on the special risks associated with investing in the International Equity Fund II, including, but not limited to: stock market risk, derivatives risk, emerging markets risk, leveraging risk, below investment grade securities, political risk, liquidity risk, foreign currency transaction risk,foreign investment risk ,custody/sub-custody risk and regulatory risk. The Fund may substantially increase its use of derivatives in response to unusual market conditions.