Artio Global Investors Inc. - FORM 8-K - EX-99.1

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8-K - Artio Global Investors Inc.	v229898_8k.htm

News Release

Artio Global Investors Inc.

Artio Global Investors Reports Second Quarter 2011 Results;
Announces Quarterly Dividend of $0.06 Per Share

NEW YORK, NY, July 28, 2011 – Artio Global Investors Inc. (NYSE: ART) (“Artio Global Investors”, together with its subsidiaries, “Artio Global” or the “Company”) today reported its results for the quarter ended June 30, 2011.

Financial Update

·	Adjusted1 net income attributable to Artio Global Investors of $23.3 million, or $0.39 per diluted share, for the second quarter of 2011 (GAAP net income attributable to Artio Global Investors of $21.2 million, or $0.36 per diluted share)

·	Assets under management of $46.8 billion as of June 30, 2011

·	Investment management fees of $78.2 million for the second quarter of 2011

·	Effective fee rate2 of 63.0 basis points for the second quarter of 2011

·	Adjusted operating margin of 50.5% for the second quarter of 2011

·	Quarterly dividend of $0.06 per share on Class A and Class C common stock

The Company’s adjusted results for all periods assume the Principals’3 non-controlling interests have been fully exchanged for shares of Class A common stock and exclude the effects of the amortization of restricted stock units (“RSUs”) granted at the time of the Company’s initial public offering (“IPO”). Adjusted results are presented to provide more meaningful comparisons between periods.

1	See Exhibits 3 - 5 of this news release for a reconciliation of the Company’s U.S. GAAP results to its non-GAAP adjusted results (“adjusted”).

2	Effective fee rate is defined as annualized investment management fees (based on the number of days in the period) divided by the average assets under management for the period.

3	Richard Pell, Chairman, Chief Executive Officer and Chief Investment Officer, and Rudolph-Riad Younes, Head of International and Global Equities, are collectively referred to as the “Principals”.

For the second quarter of 2011, adjusted net income attributable to Artio Global Investors was $23.3 million, or $0.39 per diluted share, a decrease of 4% and 5%, respectively, from adjusted net income attributable to Artio Global Investors of $24.2 million, or $0.41 per diluted share, for the first quarter of 2011, and a decrease in each case of 5% from adjusted net income attributable to Artio Global Investors of $24.4 million, or $0.41 per diluted share, for the second quarter of 2010.

On a GAAP basis, net income attributable to Artio Global Investors for the second quarter of 2011 was $21.2 million, or $0.36 per diluted share, a decrease of 4% and 5%, respectively, from net income attributable to Artio Global Investors of $22.0 million, or $0.38 per diluted share, for the first quarter of 2011. Compared to the second quarter of 2010, net income attributable to Artio Global Investors increased 12%, from $19.0 million, while earnings per diluted share decreased 5% from $0.38.

For the first six months of 2011, adjusted net income attributable to Artio Global Investors was $47.5 million, or $0.80 per diluted share, a decrease of 9% and 7%, respectively, from adjusted net income attributable to Artio Global Investors of $51.9 million, or $0.86 per diluted share, for the first six months of 2010.

On a GAAP basis, net income attributable to Artio Global Investors for the first six months of 2011 was $43.2 million, or $0.74 per diluted share. Compared to the first six months of 2010, net income attributable to Artio Global Investors increased 14% from $37.8 million, while earnings per diluted share decreased 8% from $0.80.

The following tables compare the Company’s GAAP results and adjusted results. See Exhibits 3 – 5 of this news release for a reconciliation of GAAP results to adjusted results.

- 2 -

	Three Months Ended (in millions, except per share amounts)
	Jun. 30, 2011		Jun. 30, 2010		% Change			Mar. 31, 2011		% Change
Revenue4, GAAP	$	78.2	$	83.3		(6	)%	$	82.2		(5	)%
Operating income, GAAP	$	36.8	$	42.6		(14	)%	$	39.1		(6	)%
Operating income, adjusted	$	39.5	$	45.3		(13	)%	$	41.7		(5	)%
Net income attributable to Artio Global Investors, GAAP	$	21.2	$	19.0		12	%	$	22.0		(4	)%
Net income attributable to Artio Global Investors, adjusted	$	23.3	$	24.4		(5	)%	$	24.2		(4	)%
Diluted EPS, GAAP	$	0.36	$	0.38		(5	)%	$	0.38		(5	)%
Diluted EPS, adjusted	$	0.39	$	0.41		(5	)%	$	0.41		(5	)%

	Six Months Ended (in millions, except per share amounts)
	Jun. 30, 2011		Jun. 30, 2010		% Change
Revenue4, GAAP	$	160.3	$	169.0		(5	)%
Operating income, GAAP	$	75.9	$	88.3		(14	)%
Operating income, adjusted	$	81.2	$	94.0		(14	)%
Net income attributable to Artio Global Investors, GAAP	$	43.2	$	37.8		14	%
Net income attributable to Artio Global Investors, adjusted	$	47.5	$	51.9		(9	)%
Diluted EPS, GAAP	$	0.74	$	0.80		(8	)%
Diluted EPS, adjusted	$	0.80	$	0.86		(7	)%

4	Represents total revenues and other operating income.

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Business Update5

·	Five of the Company’s nine eligible mutual funds6 were in the top quartile of Lipper performance rankings for the three-year period ended June 30, 2011

·	Three of the Company’s five eligible mutual funds7 were in the top third of Lipper performance rankings for the five-year period ended June 30, 2011

·	Seven of the Company’s nine eligible mutual funds8 were rated four or five stars by Morningstar, as of June 30, 2011

·	Net client cash outflows were $4.5 billion for the second quarter of 2011

·	The Company launched the Artio Local Emerging Markets Debt Fund in the second quarter of 2011, utilizing $22.0 million of Company seed capital

·	The Company further expanded its distribution efforts, establishing a presence in Sydney to pursue opportunities in Australia, New Zealand and Asia

Management Commentary

“Although our International Equity strategies saw further outflows during the second quarter, we are encouraged by the outperformance that some of our long-held investment themes have generated in these strategies since late February,” said Richard Pell, Chairman, Chief Executive Officer and Chief Investment Officer.

“We continue to execute on our long-term business objectives by reinvesting for future growth and maintaining a disciplined approach to capital management. During the second quarter we added selectively to our product offerings and further expanded our distribution outside of the

United States.”

“Also, we are pleased to note that our series of US Equity strategies recently reached their five-year anniversary. Given their strong performance to date, with all four ranking in the top quartile of Lipper rankings for performance since inception5,9, we believe they are well positioned to attract additional assets.”

5	See section entitled “Fund Performance and Other Disclaimers” and Exhibit 8 of this news release for further information about Lipper and Morningstar rankings.

6	Class I mutual fund shares with a three-year track record; other classes may have different performance characteristics.

7	Class I mutual fund shares with a five-year track record; other classes may have different performance characteristics.

8	Class I mutual fund shares; other classes may have different performance characteristics.

9	Class I mutual fund shares as of July 25, 2011; other classes may have different performance characteristics.

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Second Quarter of 2011 Comparison with Second Quarter of 2010

Assets Under Management and Net Client Cash Flows

Assets under management were $46.8 billion as of June 30, 2011, down $2.2 billion, or 4%, from $49.0 billion as of June 30, 2010, due to net client cash outflows, partly offset by market appreciation.

Net client cash outflows for the second quarter of 2011 were $4.5 billion, driven primarily by net client cash outflows from our International Equity I and II strategies, and included $0.4 billion of low-margin short-term U.S. dollar fixed income assets from within our High Grade Fixed Income strategy.10

Revenues and Other Operating Income

Revenues and other operating income for the second quarter of 2011 totaled $78.2 million, down 6% from $83.3 million for the second quarter of 2010. The decrease was driven primarily by lower investment management fees of $78.2 million for the second quarter of 2011, down 7% from $83.8 million for the second quarter of 2010, due primarily to lower average assets under management.

Expenses

Employee Compensation and Benefits

For the second quarter of 2011, adjusted employee compensation and benefits expenses were $23.2 million, up 5% from $22.0 million for the second quarter of 2010. The increase was due primarily to higher costs related to the amortization of deferred incentive compensation awards, accruals related to the Company’s long-term incentive plan implemented in 2011, and higher costs due to an increase in headcount, partly offset by a decrease in incentive compensation accruals.

GAAP employee compensation and benefits expenses for the second quarter of 2011 were $25.8 million, up 5% from $24.6 million for the second quarter of 2010. The increase was due primarily to the reasons noted above.

10	See Exhibit 7 for more information on “Assets under Management by Investment Strategy”.

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Shareholder Servicing and Marketing Expenses

Shareholder servicing and marketing expenses for the second quarter of 2011 were $5.2 million, down 8% from $5.6 million for the second quarter of 2010, driven primarily by lower custody fees and marketing expenses.

General and Administrative Expenses

General and administrative expenses for the second quarter of 2011 were $10.4 million, a decrease of 1% from the second quarter of 2010, due to professional fees incurred in connection with the Company’s secondary offering in the second quarter of 2010, and lower outsourced services expenses, partly offset by higher levels of recurring costs in the second quarter of 2011.

Income Taxes

For the second quarter of 2011, the adjusted effective tax rate was 41.0%, 4.2 percentage points lower than the 45.2% adjusted effective tax rate for the second quarter of 2010. The decrease was due primarily to true-ups to prior years’ state and local amended tax returns in the second quarter of 2010, the non-deductibility of secondary offering related expenses in the second quarter of 2010 and a lower apportionment of income for state and local tax purposes in the second quarter of 2011.

The GAAP effective tax rate was 40.6% for the second quarter of 2011, 2.8 percentage points higher than the 37.8% GAAP effective tax rate for the second quarter of 2010, due primarily to an increase in the proportion of pre-tax income subject to federal and state taxes, 11 partly offset by the reasons noted above.

Second Quarter of 2011 Comparison with First Quarter of 2011

Assets Under Management

Assets under management were $46.8 billion as of June 30, 2011, a decrease of $4.5 billion, or 9%, from $51.3 billion as of March 31, 2011, due primarily to net client cash outflows.

11	Following the Principals’ exchanges in 2010 of an aggregate of 14,400,000 New Class A Units for 14,400,000 shares of Class A common stock, Artio Global Investors’ economic ownership in Artio Global Holdings LLC increased from approximately 74% to approximately 98%.

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Revenues and Other Operating Income

Revenues and other operating income for the second quarter of 2011 totaled $78.2 million, down 5% from $82.2 million for the first quarter of 2011, driven primarily by lower investment management fees. Investment management fees were $78.2 million for the second quarter of 2011, down 4% from $81.8 million for the first quarter of 2011, due primarily to a decrease in average assets under management.

Expenses

Employee Compensation and Benefits

For the second quarter of 2011, adjusted employee compensation and benefits expenses were $23.2 million, down 9% from $25.4 million for the first quarter of 2011, due primarily to a decrease in incentive compensation accruals.

GAAP employee compensation and benefits expenses for the second quarter of 2011 were $25.8 million, down 8% from $28.0 million for the first quarter of 2011, due primarily to the reason noted above.

Shareholder Servicing and Marketing Expenses

Shareholder servicing and marketing expenses for the second quarter of 2011 were $5.2 million, an increase of 6% from $4.9 million for the first quarter of 2011, due primarily to an increase in marketing expenses.

General and Administrative Expenses

General and administrative expenses of $10.4 million for the second quarter of 2011 increased 2% from $10.2 million for the first quarter of 2011.

Income Taxes

For the second quarter of 2011, the adjusted effective tax rate was 41.0%, 1.5 percentage points lower than the 42.5% adjusted effective tax rate for the first quarter of 2011. The decrease was due primarily to the write-off of certain deferred tax assets in the first quarter of 2011.

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The GAAP effective tax rate was 40.6% for the second quarter of 2011, 1.6 percentage points lower than the 42.2% GAAP effective tax rate for the first quarter of 2011, due primarily to the reason noted above.

Liquidity and Capital

As of June 30, 2011, the Company had cash and cash equivalents (excluding amounts held in consolidated investment products) of $67.9 million, investments held for deferred compensation of $11.8 million and an undrawn $100.0 million committed revolving credit facility. During the second quarter of 2011, in accordance with the terms of the credit agreement, the Company repaid $4.5 million of its term debt facility, reducing the outstanding balance to $46.5 million.

Total stockholders’ equity on the Statement of Financial Position was $149.2 million as of June 30, 2011, compared to $103.6 million as of December 31, 2010.

Share Repurchase

The Company has authorization to repurchase up to 3,000,000 shares of its common stock through December 31, 2013, and as of June 30, 2011, the Company had not repurchased any shares under this program.

As of June 30, 2011, the total number of shares of Class A, Class B and Class C common stock outstanding was 59,606,970.

For purposes of calculating adjusted earnings per diluted share, all 1.2 million of the Principals’ New Class A Units, held in the intermediate holding company as of the beginning of the period, are assumed to have been fully exchanged into shares of Class A common stock on the first day of the period.

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Dividend

On July 25, 2011, the Board of Directors declared a dividend of $0.06 per share on the Class A and Class C common stock for the second quarter of 2011, which is payable on August 24, 2011, to stockholders of record as of the close of business on August 10, 2011.

* * * *

Teleconference and Webcast Details

The Company will host a conference call for analysts and investors to review second quarter 2011 results, today, July 28, 2011, beginning at 8:00 a.m. (Eastern Time). The call will be open to the public and can be accessed by dialing +1-888-680-0860 (inside the United States) or +1-617-213-4852 (outside the United States). The number should be dialed at least ten minutes prior to the start of the call. The passcode for the call will be 20779627. A simultaneous webcast of the call (on a listen-only basis), as well as an audio replay, will be available at www.ir.ArtioGlobal.com.

* * * *

About Us

Artio Global Investors is the indirect holding company of Artio Global Management LLC ("Artio Global"), a registered investment adviser that actively invests in global equity and fixed income markets, primarily for institutional and intermediary clients. Headquartered in New York, Artio Global has offices in Los Angeles, Toronto, London and Sydney.

Best known for International Equity, Artio Global also offers a select group of other equity and fixed income investment strategies, including Global Equity, a series of US Equity strategies, High Grade Fixed Income, High Yield and Local Emerging Markets Debt. Access to these strategies is offered through a variety of investment vehicles including separate accounts, commingled funds and mutual funds.

Since 1995 our investment professionals have built a successful long-term track record by taking an unconventional approach to investing. Based on a philosophy of style-agnostic investing across a broad range of opportunities, we have consistently pursued a global approach that we believe provides critical insights, thereby adding value for clients over the long term.

For more information, please visit www.artioglobal.com.

* * * *

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Cautionary Note Regarding Forward-Looking Statements

In addition to historical information, this news release may, and the related prepared remarks do, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the intrinsic value of our common stock, investor behavior, net client cash flows, our compensation costs and adjusted compensation ratio, future tax rate, use of our free cash flow, potential share repurchases and declaration of dividends. These forward-looking statements are based on the Company’s current assumptions, expectations and projections about future events. Words like “believe”, “anticipate”, “intend”, “estimate”, “expect”, “project”, and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements discuss matters that necessarily involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.

Among the factors that could cause actual results to differ from those expressed or implied by a forward-looking statement are those described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s report on Form 10-K (File No. 001-34457) filed with the Securities and Exchange Commission on February 25, 2011. Other unknown or unpredictable factors also could have material adverse effects on the Company’s future results, performance, or achievements.

Any forward-looking statements in this news release and the related prepared remarks speak only as of the date of this news release. The related prepared remarks may contain information about the Company subsequent to June 30, 2011. The Company is not under any obligation and does not intend to make publicly available any update or other revisions to any forward-looking statements to reflect circumstances existing after the date of this release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

* * * *

Contacts

Investor Relations:	Media Relations:
Peter Sands	Ashley Schmidt
Head of Investor Relations	Intermarket Communications
+1 212 297 3891	+1 212 754 5438
ir@artioglobal.com	aschmidt@intermarket.com

* * * *

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Fund Performance and Other Disclaimers

Lipper rankings are for Class I mutual fund shares with a five-year track record only. Other classes may have different performance characteristics. Lipper, a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds and fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads. If an expense waiver was in effect, it may have had a material effect on the total return or yield for the period.

Morningstar rankings are for Class I mutual fund shares with a minimum three-year track record. For each mutual 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.) The Overall Morningstar Rating for a mutual fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. A fund’s independent Morningstar Rating metric is then compared against the mutual fund universe breakpoints to determine its hypothetical rating.

This news release is not, and should not be considered, sales material and is not an offer or a solicitation for any securities.

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ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES	Exhibit - 1
Consolidated Statements of Income
(unaudited, in thousands, except share and per share amounts or as noted)

	Three Months Ended									% Change From						Six Months Ended						% Change From
	Jun. 30, 2011			Jun. 30, 2010			Mar. 31, 2011			Jun. 30, 2010			Mar. 31, 2011			Jun. 30, 2011			Jun. 30, 2010			Jun. 30, 2010
Revenues and other operating income:
Investment management fees	$	78,209		$	83,841		$	81,776			(7	)%		(4	)%	$	159,985		$	169,128			(5	)%
Net gains (losses) on securities held for deferred compensation		(56	)		(461	)		419			88	%		(113	)%		363			(140	)	NM
Foreign currency losses		(2	)		(45	)		(18	)		96	%		89	%		(20	)		(22	)		9	%
Total revenues and other operating income		78,151			83,335			82,177			(6	)%		(5	)%		160,328			168,966			(5	)%

Expenses:
Employee compensation and benefits		25,812			24,647			28,018			5	%		(8	)%		53,830			49,816			8	%
Shareholder servicing and marketing		5,163			5,598			4,865			(8	)%		6	%		10,028			10,146			(1	)%
General and administrative		10,357			10,445			10,172			(1	)%		2	%		20,529			20,730			(1	)%
Total expenses		41,332			40,690			43,055			2	%		(4	)%		84,387			80,692			5	%

Operating income before income tax expense		36,819			42,645			39,122			(14	)%		(6	)%		75,941			88,274			(14	)%

Non-operating income (loss)		(156	)		(648	)		565			76	%		(128	)%		409			(1,309	)		131	%
Income before income tax expense		36,663			41,997			39,687			(13	)%		(8	)%		76,350			86,965			(12	)%

Income taxes		14,869			15,892			16,751			(6	)%		(11	)%		31,620			30,659			3	%
Net income		21,794			26,105			22,936			(17	)%		(5	)%		44,730			56,306			(21	)%

Net income attributable to non-controlling interests in AGH (6)		719			7,150			769			(90	)%		(7	)%		1,488			18,483			(92	)%
Net income (loss) attributable to non-controlling interests in CIP (7)		(75	)		-			135		NM				(156	)%		60			-		NM
Net income attributable to Artio Global Investors	$	21,150		$	18,955		$	22,032			12	%		(4	)%	$	43,182		$	37,823			14	%

Net income per share attributable to Artio Global Investors:
Basic	$	0.36		$	0.38		$	0.38			(5	)%		(5	)%	$	0.74		$	0.81			(9	)%
Diluted	$	0.36		$	0.38		$	0.38			(5	)%		(5	)%	$	0.74		$	0.80			(8	)%

Weighted average shares used in net income per share attributable to Artio Global Investors:
Basic		58,392,969			49,425,061			58,353,622			18	%		0	%		58,373,404			46,956,331			24	%
Diluted (5)		58,576,859			60,322,994			58,403,877			(3	)%		0	%		58,475,249			47,151,819			24	%

NM - Not Meaningful


Assets under management ($ in millions)	$	46,835		$	48,995		$	51,328			(4	)%		(9	)%	$	46,835		$	48,995			(4	)%

Average assets under management ($ in millions) (1)	$	49,783		$	53,001		$	52,659			(6	)%		(5	)%	$	51,206		$	53,490			(4	)%

Effective fee rate (basis points) (2)		63.0			63.4			63.0									63.0			63.8

Effective tax rate		40.6	%		37.8	%		42.2	%								41.4	%		35.3	%

Employee compensation and benefits as a percentage of total revenues and other operating income (3)		33.0	%		29.6	%		34.1	%								33.6	%		29.5	%

Operating margin (4)		47.1	%		51.2	%		47.6	%								47.4	%		52.2	%

1. Average assets under management for a period is computed on the beginning-of-first-month balance and all end-of-month balances in the period.

2. Effective fee rate is defined as annualized investment management fees (based on the number of days in the period) divided by the average assets under management for the period.

3. Calculated as employee compensation and benefits expense divided by total revenues and other operating income.

4. Calculated as operating income before income tax expense divided by total revenues and other operating income.

5. The effect of the assumed conversion of the Principals' New Class A units was antidilutive for the three months ended Jun. 30, 2011 and Mar. 31, 2011, and the six months ended June 30, 2011 and 2010.

6. Represents non-controlling interests in Artio Global Holdings LLC.

7. Represents non-controlling interests in Consolidated Investment Products.

ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES	Exhibit - 2
Non-GAAP Adjusted Consolidated Statements of Income
(unaudited, in thousands, except share and per share amounts or as noted)

	Three Months Ended									% Change From						Six Months Ended						% Change From
	Jun. 30, 2011			Jun. 30, 2010			Mar. 31, 2011			Jun. 30, 2010			Mar. 31, 2011			Jun. 30, 2011			Jun. 30, 2010			Jun. 30, 2010
Revenues and other operating income:
Investment management fees	$	78,209		$	83,841		$	81,776			(7	)%		(4	)%	$	159,985		$	169,128			(5	)%
Net gains (losses) on securities held for deferred compensation		(56	)		(461	)		419			88	%		(113	)%		363			(140	)	NM
Foreign currency losses		(2	)		(45	)		(18	)		96	%		89	%		(20	)		(22	)		9	%
Total revenues and other operating income		78,151			83,335			82,177			(6	)%		(5	)%		160,328			168,966			(5	)%

Expenses:
Employee compensation and benefits		23,168			22,037			25,394			5	%		(9	)%		48,562			44,045			10	%
Shareholder servicing and marketing		5,163			5,598			4,865			(8	)%		6	%		10,028			10,146			(1	)%
General and administrative		10,357			10,445			10,172			(1	)%		2	%		20,529			20,730			(1	)%
Total expenses		38,688			38,080			40,431			2	%		(4	)%		79,119			74,921			6	%

Operating income before income tax expense		39,463			45,255			41,746			(13	)%		(5	)%		81,209			94,045			(14	)%

Non-operating income (loss)		(156	)		(648	)		565			76	%		(128	)%		409			(1,309	)		131	%
Income before income tax expense		39,307			44,607			42,311			(12	)%		(7	)%		81,618			92,736			(12	)%

Income taxes		16,109			20,162			17,996			(20	)%		(10	)%		34,105			40,854			(17	)%
Net income		23,198			24,445			24,315			(5	)%		(5	)%		47,513			51,882			(8	)%

Net income attributable to non-controlling interests in AGH (5)		-			-			-		NM			NM				-			-		NM
Net income (loss) attributable to non-controlling interests in CIP (6)		(75	)		-			135		NM				(156	)%		60			-		NM
Net income attributable to Artio Global Investors	$	23,273		$	24,445		$	24,180			(5	)%		(4	)%	$	47,453		$	51,882			(9	)%

Net income per diluted share attributable to Artio Global Investors	$	0.39		$	0.41		$	0.41			(5	)%		(5	)%	$	0.80		$	0.86			(7	)%

Weighted average diluted shares used in net income per share attributable to Artio Global Investors		59,776,859			60,322,994			59,603,877			(1	)%		0	%		59,675,249			60,272,261			(1	)%

NM - Not Meaningful


Assets under management ($ in millions)	$	46,835		$	48,995		$	51,328			(4	)%		(9	)%	$	46,835		$	48,995			(4	)%

Average assets under management ($ in millions) (1)	$	49,783		$	53,001		$	52,659			(6	)%		(5	)%	$	51,206		$	53,490			(4	)%

Effective fee rate (basis points) (2)		63.0			63.4			63.0									63.0			63.8

Effective tax rate		41.0	%		45.2	%		42.5	%								41.8	%		44.1	%

Employee compensation and benefits as a percentage of total revenues and other operating income (3)		29.6	%		26.4	%		30.9	%								30.3	%		26.1	%

Operating margin (4)		50.5	%		54.3	%		50.8	%								50.7	%		55.7	%

1. Average assets under management for a period is computed on the beginning-of-first-month balance and all end-of-month balances in the period.

2. Effective fee rate is defined as annualized investment management fees (based on the number of days in the period) divided by the average assets under management for the period.

3. Calculated as employee compensation and benefits expense divided by total revenues and other operating income.

4. Calculated as operating income before income tax expense divided by total revenues and other operating income.

5. Represents non-controlling interests in Artio Global Holdings LLC.

6. Represents non-controlling interests in Consolidated Investment Products.

ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES	Exhibit - 3
Reconciliation of GAAP to Non-GAAP Adjusted Consolidated Statements of Income
(unaudited, in thousands, except share and per share amounts)

See Exhibit 5 for notes describing adjustments set forth below.

	Three Months Ended Jun. 30, 2011									Three Months Ended Jun. 30, 2010									Three Months Ended Mar. 31, 2011
	GAAP			Adjustments			Adjusted			GAAP			Adjustments			Adjusted			GAAP			Adjustments			Adjusted
Revenues and other operating income:
Investment management fees	$	78,209		$	-		$	78,209		$	83,841		$	-		$	83,841		$	81,776		$	-		$	81,776
Net gains (losses) on securities held for deferred compensation		(56	)		-			(56	)		(461	)		-			(461	)		419			-			419
Foreign currency losses		(2	)		-			(2	)		(45	)		-			(45	)		(18	)		-			(18	)
Total revenues and other operating income		78,151			-			78,151			83,335			-			83,335			82,177			-			82,177

Expenses:
Employee compensation and benefits		25,812			(2,644	)(a)		23,168			24,647			(2,610	)(a)		22,037			28,018			(2,624	)(a)		25,394
Shareholder servicing and marketing		5,163			-			5,163			5,598			-			5,598			4,865			-			4,865
General and administrative		10,357			-			10,357			10,445			-			10,445			10,172			-			10,172
Total expenses		41,332			(2,644	)		38,688			40,690			(2,610	)		38,080			43,055			(2,624	)		40,431

Operating income before income tax expense		36,819			2,644			39,463			42,645			2,610			45,255			39,122			2,624			41,746

Non-operating income (loss)		(156	)		-			(156	)		(648	)		-			(648	)		565			-			565
Income before income tax expense		36,663			2,644			39,307			41,997			2,610			44,607			39,687			2,624			42,311

Income taxes		14,869			1,240	(b)		16,109			15,892			4,270	(b)		20,162			16,751			1,245	(b)		17,996
Net income		21,794			1,404			23,198			26,105			(1,660	)		24,445			22,936			1,379			24,315

Net income attributable to non-controlling interests in AGH		719			(719	)(c)		-			7,150			(7,150	)(c)		-			769			(769	)(c)		-
Net income (loss) attributable to non-controlling interests in CIP		(75	)		-			(75	)		-			-			-			135			-			135
Net income attributable to Artio Global Investors	$	21,150		$	2,123		$	23,273		$	18,955		$	5,490		$	24,445		$	22,032		$	2,148		$	24,180

Net income per diluted share attributable to Artio Global Investors	$	0.36					$	0.39		$	0.38					$	0.41		$	0.38					$	0.41

Weighted average diluted shares used in net income per share attributable to Artio Global Investors		58,576,859			1,200,000	(d)		59,776,859			60,322,994			-			60,322,994			58,403,877			1,200,000	(d)		59,603,877

ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES	Exhibit - 4
Reconciliation of GAAP to Non-GAAP Adjusted Consolidated Statements of Income
(unaudited, in thousands, except share and per share amounts)

See Exhibit 5 for notes describing adjustments set forth below.

	Six Months Ended Jun. 30, 2011									Six Months Ended Jun. 30, 2010
	GAAP			Adjustments			Adjusted			GAAP			Adjustments			Adjusted
Revenues and other operating income:
Investment management fees	$	159,985		$	-		$	159,985		$	169,128		$	-		$	169,128
Net gains (losses) on securities held for deferred compensation		363			-			363			(140	)		-			(140	)
Foreign currency losses		(20	)		-			(20	)		(22	)		-			(22	)
Total revenues and other operating income		160,328			-			160,328			168,966			-			168,966

Expenses:
Employee compensation and benefits		53,830			(5,268	)(a)		48,562			49,816			(5,771	)(a)		44,045
Shareholder servicing and marketing		10,028			-			10,028			10,146			-			10,146
General and administrative		20,529			-			20,529			20,730			-			20,730
Total expenses		84,387			(5,268	)		79,119			80,692			(5,771	)		74,921

Operating income before income tax expense		75,941			5,268			81,209			88,274			5,771			94,045

Non-operating income (loss)		409			-			409			(1,309	)		-			(1,309	)
Income before income tax expense		76,350			5,268			81,618			86,965			5,771			92,736

Income taxes		31,620			2,485	(b)		34,105			30,659			10,195	(b)		40,854
Net income		44,730			2,783			47,513			56,306			(4,424	)		51,882

Net income attributable to non-controlling interests in AGH		1,488			(1,488	)(c)		-			18,483			(18,483	)(c)		-
Net income (loss) attributable to non-controlling interests in CIP		60			-			60			-			-			-
Net income attributable to Artio Global Investors	$	43,182		$	4,271		$	47,453		$	37,823		$	14,059		$	51,882

Net income per diluted share attributable to Artio Global Investors	$	0.74					$	0.80		$	0.80					$	0.86

Weighted average diluted shares used in net income per share attributable to Artio Global Investors		58,475,249			1,200,000	(d)		59,675,249			47,151,819			13,120,442	(d)		60,272,261

ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES	Exhibit - 5
Notes to Reconciliation of GAAP to Non-GAAP Adjusted Consolidated Statements of Income

Management believes the Non-GAAP adjustments set forth below provide more meaningful comparisons between periods. Additional information on the reorganization of the Company's ownership structure and the relating non-recurring items are discussed in the Company's prospectus dated September 23, 2009.

(a)	Adjustments to exclude the amortization expense associated with the restricted stock units ("RSUs") awarded at the time of the IPO, as the granting of the awards was one-time in nature.

(b)

The adjustments to income taxes for the three and six months ended Jun. 30, 2011 and 2010, and the three months ended Mar. 31, 2011 reflect the tax effect of the assumed full exchange of the Principals' non-controlling interests for Class A common stock on the first day of the respective period, since prior to such exchange, income tax expense excludes the U.S. federal and state taxes for the income attributable to the Principals. In addition, the adjustments reflect the tax effects of excluding the amortization expense associated with the RSUs awarded at the time of the IPO.

(c)	Adjustment to eliminate the Principals' non-controlling interests which are assumed to be exchanged for Class A common stock on the first day of the respective period.

(d)	Diluted shares outstanding assumes the Principals have fully exchanged their New Class A Units in Artio Global Holdings LLC for Class A common stock in the public company.

ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES	Exhibit - 6
Assets under Management by Investment Vehicle
(unaudited, in millions)

	Three Months Ended									% Change From						Six Months Ended						% Change From
	Jun. 30, 2011			Jun. 30, 2010			Mar. 31, 2011			Jun. 30, 2010			Mar. 31, 2011			Jun. 30, 2011			Jun. 30, 2010			Jun. 30, 2010

Proprietary Funds
Beginning assets under management	$	22,854		$	24,751		$	23,013			(8	)%		(1	)%	$	23,013		$	24,482			(6	)%
Gross client cash inflows		1,136			1,657			1,788			(31	)%		(36	)%		2,924			3,678			(21	)%
Gross client cash outflows		(2,739	)		(2,844	)		(2,473	)		4	%		(11	)%		(5,212	)		(4,839	)		(8	)%
Net client cash flows		(1,603	)		(1,187	)		(685	)		(35	)%		(134	)%		(2,288	)		(1,161	)		(97	)%
Transfers between investment vehicles		-			-			-		NM			NM				-			-		NM
Total client cash flows		(1,603	)		(1,187	)		(685	)		(35	)%		(134	)%		(2,288	)		(1,161	)		(97	)%
Market appreciation (depreciation)		(59	)		(2,534	)		526			98	%		(111	)%		467			(2,291	)		120	%
Ending assets under management		21,192			21,030			22,854			1	%		(7	)%		21,192			21,030			1	%

Institutional Commingled Funds
Beginning assets under management		9,374			9,256			9,236			1	%		1	%		9,236			9,198			0	%
Gross client cash inflows		104			166			153			(37	)%		(32	)%		257			468			(45	)%
Gross client cash outflows		(1,149	)		(534	)		(424	)		(115	)%		(171	)%		(1,573	)		(796	)		(98	)%
Net client cash flows		(1,045	)		(368	)		(271	)		(184	)%	NM				(1,316	)		(328	)	NM
Transfers between investment vehicles		(22	)		-			210		NM				(110	)%		188			-		NM
Total client cash flows		(1,067	)		(368	)		(61	)		(190	)%	NM				(1,128	)		(328	)	NM
Market appreciation (depreciation)		(22	)		(1,046	)		199			98	%		(111	)%		177			(1,028	)		117	%
Ending assets under management		8,285			7,842			9,374			6	%		(12	)%		8,285			7,842			6	%

Separate Accounts
Beginning assets under management		14,768			17,786			16,801			(17	)%		(12	)%		16,801			17,854			(6	)%
Gross client cash inflows		31			685			135			(95	)%		(77	)%		166			1,103			(85	)%
Gross client cash outflows		(677	)		(906	)		(2,240	)		25	%		70	%		(2,917	)		(1,473	)		(98	)%
Net client cash flows		(646	)		(221	)		(2,105	)		(192	)%		69	%		(2,751	)		(370	)	NM
Transfers between investment vehicles		22			-			(210	)	NM				110	%		(188	)		-		NM
Total client cash flows		(624	)		(221	)		(2,315	)		(182	)%		73	%		(2,939	)		(370	)	NM
Market appreciation (depreciation)		77			(1,564	)		282			105	%		(73	)%		359			(1,483	)		124	%
Ending assets under management		14,221			16,001			14,768			(11	)%		(4	)%		14,221			16,001			(11	)%

Sub-advisory Accounts
Beginning assets under management		4,332			4,624			4,357			(6	)%		(1	)%		4,357			4,459			(2	)%
Gross client cash inflows		66			380			151			(83	)%		(56	)%		217			693			(69	)%
Gross client cash outflows		(1,300	)		(419	)		(320	)	NM			NM				(1,620	)		(554	)		(192	)%
Net client cash flows		(1,234	)		(39	)		(169	)	NM			NM				(1,403	)		139		NM
Transfers between investment vehicles		-			-			-		NM			NM				-			-		NM
Total client cash flows		(1,234	)		(39	)		(169	)	NM			NM				(1,403	)		139		NM
Market appreciation (depreciation)		39			(463	)		144			108	%		(73	)%		183			(476	)		138	%
Ending assets under management		3,137			4,122			4,332			(24	)%		(28	)%		3,137			4,122			(24	)%

Total Assets under Management
Beginning assets under management		51,328			56,417			53,407			(9	)%		(4	)%		53,407			55,993			(5	)%
Gross client cash inflows		1,337			2,888			2,227			(54	)%		(40	)%		3,564			5,942			(40	)%
Gross client cash outflows		(5,865	)		(4,703	)		(5,457	)		(25	)%		(7	)%		(11,322	)		(7,662	)		(48	)%
Net client cash flows		(4,528	)		(1,815	)		(3,230	)		(149	)%		(40	)%		(7,758	)		(1,720	)	NM
Transfers between investment vehicles		-			-			-		NM			NM				-			-		NM
Total client cash flows		(4,528	)		(1,815	)		(3,230	)		(149	)%		(40	)%		(7,758	)		(1,720	)	NM
Market appreciation (depreciation)		35			(5,607	)		1,151			101	%		(97	)%		1,186			(5,278	)		122	%
Ending assets under management	$	46,835		$	48,995		$	51,328			(4	)%		(9	)%	$	46,835		$	48,995			(4	)%

ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES	Exhibit - 7
Assets under Management by Investment Strategy
(unaudited, in millions)

	Three Months Ended									% Change From						Six Months Ended						% Change From
	Jun. 30, 2011			Jun. 30, 2010			Mar. 31, 2011			Jun. 30, 2010			Mar. 31, 2011			Jun. 30, 2011			Jun. 30, 2010			Jun. 30, 2010

International Equity I
Beginning assets under management	$	17,298		$	20,955		$	18,781			(17	)%		(8	)%	$	18,781		$	21,656			(13	)%
Gross client cash inflows		182			312			432			(42	)%		(58	)%		614			652			(6	)%
Gross client cash outflows		(1,643	)		(1,371	)		(2,262	)		(20	)%		27	%		(3,905	)		(2,472	)		(58	)%
Net client cash flows		(1,461	)		(1,059	)		(1,830	)		(38	)%		20	%		(3,291	)		(1,820	)		(81	)%
Transfers between investment strategies		-			-			-		NM			NM				-			-		NM
Total client cash flows		(1,461	)		(1,059	)		(1,830	)		(38	)%		20	%		(3,291	)		(1,820	)		(81	)%
Market appreciation (depreciation)		(69	)		(2,476	)		347			97	%		(120	)%		278			(2,416	)		112	%
Ending assets under management		15,768			17,420			17,298			(9	)%		(9	)%		15,768			17,420			(9	)%

International Equity II
Beginning assets under management		22,243			24,559			23,272			(9	)%		(4	)%		23,272			24,716			(6	)%
Gross client cash inflows		384			1,170			882			(67	)%		(56	)%		1,266			2,154			(41	)%
Gross client cash outflows		(3,053	)		(2,297	)		(2,362	)		(33	)%		(29	)%		(5,415	)		(3,476	)		(56	)%
Net client cash flows		(2,669	)		(1,127	)		(1,480	)		(137	)%		(80	)%		(4,149	)		(1,322	)	NM
Transfers between investment strategies		-			-			-		NM			NM				-			50			(100	)%
Total client cash flows		(2,669	)		(1,127	)		(1,480	)		(137	)%		(80	)%		(4,149	)		(1,272	)	NM
Market appreciation (depreciation)		(28	)		(2,880	)		451			99	%		(106	)%		423			(2,892	)		115	%
Ending assets under management		19,546			20,552			22,243			(5	)%		(12	)%		19,546			20,552			(5	)%

High Grade Fixed Income
Beginning assets under management		5,036			5,251			5,088			(4	)%		(1	)%		5,088			5,293			(4	)%
Gross client cash inflows		229			431			148			(47	)%		55	%		377			622			(39	)%
Gross client cash outflows		(594	)		(167	)		(233	)	NM				(155	)%		(827	)		(556	)		(49	)%
Net client cash flows		(365	)		264			(85	)	NM			NM				(450	)		66		NM
Transfers between investment strategies		104			-			(5	)	NM			NM				99			10		NM
Total client cash flows		(261	)		264			(90	)		(199	)%		(190	)%		(351	)		76		NM
Market appreciation (depreciation)		110			137			38			(20	)%		189	%		148			283			(48	)%
Ending assets under management		4,885			5,652			5,036			(14	)%		(3	)%		4,885			5,652			(14	)%

High Yield
Beginning assets under management		5,304			4,523			4,907			17	%		8	%		4,907			3,516			40	%
Gross client cash inflows		502			777			709			(35	)%		(29	)%		1,211			1,976			(39	)%
Gross client cash outflows		(499	)		(818	)		(569	)		39	%		12	%		(1,068	)		(1,092	)		2	%
Net client cash flows		3			(41	)		140			107	%		(98	)%		143			884			(84	)%
Transfers between investment strategies		(104	)		-			5		NM			NM				(99	)		(10	)	NM
Total client cash flows		(101	)		(41	)		145			(146	)%		(170	)%		44			874			(95	)%
Market appreciation (depreciation)		43			(241	)		252			118	%		(83	)%		295			(149	)	NM
Ending assets under management		5,246			4,241			5,304			24	%		(1	)%		5,246			4,241			24	%

Global Equity
Beginning assets under management		1,066			892			1,025			20	%		4	%		1,025			618			66	%
Gross client cash inflows		8			73			19			(89	)%		(58	)%		27			378			(93	)%
Gross client cash outflows		(20	)		(35	)		(14	)		43	%		(43	)%		(34	)		(47	)		28	%
Net client cash flows		(12	)		38			5			(132	)%	NM				(7	)		331			(102	)%
Transfers between investment strategies		-			-			-		NM			NM				-			(50	)		100	%
Total client cash flows		(12	)		38			5			(132	)%	NM				(7	)		281			(102	)%
Market appreciation (depreciation)		(17	)		(113	)		36			85	%		(147	)%		19			(82	)		123	%
Ending assets under management		1,037			817			1,066			27	%		(3	)%		1,037			817			27	%

ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES	Exhibit - 7
Assets under Management by Investment Strategy
(unaudited, in millions)

	Three Months Ended									% Change From						Six Months Ended						% Change From
	Jun. 30, 2011			Jun. 30, 2010			Mar. 31, 2011			Jun. 30, 2010			Mar. 31, 2011			Jun. 30, 2011			Jun. 30, 2010			Jun. 30, 2010

US Equity
Beginning assets under management		274			126			227			117	%		21	%		227			81			180	%
Gross client cash inflows		23			125			36			(82	)%		(36	)%		59			160			(63	)%
Gross client cash outflows		(56	)		(8	)		(11	)	NM			NM				(67	)		(11	)	NM
Net client cash flows		(33	)		117			25			(128	)%	NM				(8	)		149			(105	)%
Transfers between investment strategies		-			-			-		NM			NM				-			-		NM
Total client cash flows		(33	)		117			25			(128	)%	NM				(8	)		149			(105	)%
Market appreciation (depreciation)		(6	)		(21	)		22			71	%		(127	)%		16			(8	)	NM
Ending assets under management		235			222			274			6	%		(14	)%		235			222			6	%

Other (1)
Beginning assets under management		107			111			107			(4	)%		0	%		107			113			(5	)%
Gross client cash inflows		9			-			1		NM			NM				10			-		NM
Gross client cash outflows		-			(7	)		(6	)		100	%		100	%		(6	)		(8	)		25	%
Net client cash flows		9			(7	)		(5	)	NM			NM				4			(8	)		150	%
Transfers between investment strategies		-			-			-		NM			NM				-			-		NM
Total client cash flows		9			(7	)		(5	)	NM			NM				4			(8	)		150	%
Market appreciation (depreciation)		2			(13	)		5			115	%		(60	)%		7			(14	)		150	%
Ending assets under management		118			91			107			30	%		10	%		118			91			30	%

Total Assets under Management
Beginning assets under management		51,328			56,417			53,407			(9	)%		(4	)%		53,407			55,993			(5	)%
Gross client cash inflows		1,337			2,888			2,227			(54	)%		(40	)%		3,564			5,942			(40	)%
Gross client cash outflows		(5,865	)		(4,703	)		(5,457	)		(25	)%		(7	)%		(11,322	)		(7,662	)		(48	)%
Net client cash flows		(4,528	)		(1,815	)		(3,230	)		(149	)%		(40	)%		(7,758	)		(1,720	)	NM
Transfers between investment strategies		-			-			-		NM			NM				-			-		NM
Total client cash flows		(4,528	)		(1,815	)		(3,230	)		(149	)%		(40	)%		(7,758	)		(1,720	)	NM
Market appreciation (depreciation)		35			(5,607	)		1,151			101	%		(97	)%		1,186			(5,278	)		122	%
Ending assets under management		46,835			48,995			51,328			(4	)%		(9	)%		46,835			48,995			(4	)%

1. Other includes the Local Emerging Markets Debt Fund, Global Credit Opportunities Fund, Other International Equity and Other strategies.

ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES	Exhibit - 8
Mutual Fund Performance Data (1)

	Morningstar Ratings /
	Funds in Total Universe (# of Funds)					Lipper Percentile Rankings (PR) / Funds in Total Universe (# of Funds)
						YTD				1-Year				3-Year				5-Year				10-Year
			# of					# of				# of				# of				# of				# of
Fund (3)	Rating		Funds		Category	PR		Funds		PR		Funds		PR		Funds		PR		Funds		PR		Funds		Classification

Artio International Equity Fund, Class A (2)		4		714	Foreign Large Blend		97		402		96		386		85		348		55		293		4		182	International Large-Cap Core
Artio International Equity Fund, Class I (2)		4		714	Foreign Large Blend		96		402		95		386		82		348		52		293		3		182	International Large-Cap Core

Artio International Equity II Fund, Class A		3		714	Foreign Large Blend		96		402		94		386		68		348		35		293	NA		NA		International Large-Cap Core
Artio International Equity II Fund, Class I		4		714	Foreign Large Blend		95		402		93		386		64		348		28		293	NA		NA		International Large-Cap Core

Artio Global Equity Fund, Class A		3		683	World Stock		97		118		87		110		50		93		57		72	NA		NA		Global Large-Cap Core
Artio Global Equity Fund, Class I		3		683	World Stock		94		118		83		110		48		93		54		72	NA		NA		Global Large-Cap Core

Artio Microcap Fund, Class A		3		666	Small Growth		5		765		4		743		3		669	NA		NA		NA		NA		Small-Cap Core
Artio Microcap Fund, Class I		4		666	Small Growth		5		765		4		743		3		669	NA		NA		NA		NA		Small-Cap Core

Artio Smallcap Fund, Class A		4		666	Small Growth		52		765		69		743		9		669	NA		NA		NA		NA		Small-Cap Core
Artio Smallcap Fund, Class I		4		666	Small Growth		50		765		65		743		8		669	NA		NA		NA		NA		Small-Cap Core

Artio Midcap Fund, Class A		3		681	Mid-Cap Growth		6		344		3		331		23		296	NA		NA		NA		NA		Mid-Cap Core
Artio Midcap Fund, Class I		3		681	Mid-Cap Growth		5		344		2		331		21		296	NA		NA		NA		NA		Mid-Cap Core

Artio Multicap Fund, Class A		4		1,476	Large Growth		11		846		4		822		10		723	NA		NA		NA		NA		Multi-Cap Core
Artio Multicap Fund, Class I		4		1,476	Large Growth		10		846		3		822		8		723	NA		NA		NA		NA		Multi-Cap Core

Artio Global High Income Fund, Class A		5		507	High Yield Bond		15		509		38		487		15		430		7		360	NA		NA		High Current Yield
Artio Global High Income Fund, Class I		5		507	High Yield Bond		10		509		30		487		13		430		5		360	NA		NA		High Current Yield

Artio Total Return Bond Fund, Class A		4		1,017	Intermediate Term Bond		21		587		25		561		51		484		29		393		5		271	Intermediate Investment Grade Debt
Artio Total Return Bond Fund, Class I		4		1,017	Intermediate Term Bond		14		587		21		561		44		484		22		393		2		271	Intermediate Investment Grade Debt

Note: Data as of June 30, 2011

NA: Not applicable

Lipper, a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds and fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads. If an expense waiver was in effect, it may have had a material effect on the total return or yield for the period.

For each mutual 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.) The Overall Morningstar Rating for a mutual fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. A fund's independent Morningstar Rating metric is then compared against the mutual fund universe breakpoints to determine its hypothetical rating. Data presented reflect past performance, which is no guarantee of future results. © 2011 Morningstar, Inc. All Rights Reserved. This news release is not, and should not be considered, sales material and is not an offer or a solicitation for any securities.

2.	Closed to new investors.

3.	The Artio Local Emerging Markets Debt Fund was launched in May 2011 and is not yet ranked or rated in any of the above categories.

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