NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(1) Organization
The Artisan Small Cap Fund (the "Fund") is a series of Artisan Funds, Inc. which was incorporated on January 5,
1995 as a Wisconsin corporation and is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end management investment company.
(2) Summary of significant accounting policies:
The following is a summary of significant accounting policies of the Fund:
(a) Security valuation - Each security is valued at the latest sales price reported by the principal securities
exchange on which the issue is traded, or if no sale is reported, the latest bid price reported. Securities for which
prices are not readily available or which management believes that the latest sales or bid price is not reflective of a
fair value of the security are valued at a fair value as determined in good faith under consistently applied
procedures established by and under the general supervision of the Board of Directors. Short-term investments
maturing within sixty days of their purchase date are valued at amortized cost which approximates market.
(b) Income taxes - No provision has been made for federal income taxes since the Fund intends to 1) distribute
substantially all of its taxable income as well as realized gains from the sale of investment securities to its
shareholders and 2) comply with all provisions of the Internal Revenue Code applicable to regulated investment
companies.
(c) Portfolio transactions - Security and shareholder transactions are recorded no later than the first business day
after the trade date. Net realized gains and losses on common stocks are computed on specific security lot
identification.
(d) Use of estimates - The preparation of financial statements in accordance with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts and
disclosures in the financial statements. Actual results could differ from those esti