Global Strategy
Ariel Global Fund

Why Ariel’s global approach

Our emphasis is on generating attractive absolute and relative returns while seeking to limit downside risk in our global portfolios.

Experience matters

Rupal J. Bhansali, our chief investment officer for international equities, has more than 20 years of industry experience.

Managing risk is a top priority

We pay as much attention to risk management as to return management.

Screening out provides a stronger starting point

While others screen in, we begin our process by screening out high-risk companies.

All-cap portfolios offer larger opportunity set

Although our portfolios are relatively concentrated, we consider companies of all sizes.

Attention to business models builds more resilient portfolios

In addition to applying our financial models, we consider the long-term viability of each company’s business model.

Key Facts
Market Cap Range: All Cap
Investor Class: 12/30/2011
Institutional Class: 12/30/2011
Number of companies: 50-150
Turnover: 30-80%
Ticker Symbol:
Investor Class: AGLOX
Institutional Class: AGLYX
Fund Assets (all classes):
$56.8 million as of 09/30/2014
Portfolio Manager
Bhansali_Rupal_Web.png Rupal J. Bhansali
Portfolio Manager
Fund Spotlight
Meet Rupal J. Bhansali and hear her philosophy on global investing.
Rupal Bhansali on where she finds value and the advantages of long-term investing.

Our global investment philosophy


We take the long-term view.
  • Complementary objectives: Higher absolute and relative returns over a full market cycle with less risk
  • Focus research as much on what can go wrong as what can go right


We invest to our convictions, not to benchmarks.
  • Benchmark aware only to the extent that tracking error is by design and not by default
  • Significant exposure to our highest-conviction ideas, tempered with prudent risk controls


We specialize in bottom-up fundamental research.
  • Ask questions to gain insight, not just information
  • Conduct in-country visits
  • Take business analyst approach rather than stock analyst approach
  • Research a company’s global peers to inform our competitive assessment


We work collaboratively with a shared commitment to excellence.
  • Debate best, base and worst case scenarios for every company considered
  • Three team members with clearly defined roles vet each stock

Rupal Bhansali on International and Global Investing I
Rupal Bhansali on International and Global Investing II

Our global process

Negative Screening

Negative screening strives for downside protection
  • Process:
    Screen on risk, not growth rate or valuation
  • Risk management:
    Eliminate approximately 60% of high-risk stocks in benchmark
  • Benefit:
    Potential downside protection

Bottom-up Research

Proprietary bottom-up research enables better stock picking
  • Process:
    Lead analysts perform research
  • Risk management:
    Assess the prospects and durability of a business franchise
  • Benefit:
    Proprietary insights enable better stock picking

Team Validation

Team validation avoids blind spots in our analysis
  • Process:
    A team of three debates and stress tests each idea
  • Risk management:
    Go beyond industry specialist, avoiding groupthink by assigning devil’s advocate and "fresh" analyst
  • Benefit:
    Ideas vetted from multiple perspectives yield more informed final decisions by portfolio manager

Portfolio Construction

Portfolios constructed to manage risks as well as long-term performance
  • Process:
    Seek to own top decile of investment opportunities uncovered
  • Risk management:
    Cap security position size at 5% at cost, typically limit sector weights at the higher of 25% or 1.5x benchmark, hedge currency if practical and cost efficient
  • Benefit:
    A diverse portfolio that balances long-term performance with risk management

Investor Class
Institutional Class
Quarter End
Month End
Ariel Global Fund


As of November 30, 2014
Inception date: December 30, 2011 Annualized
Year To
Ariel Global Fund 0.86% -0.96% 8.43% 8.51% 13.88%
MSCI AC World Index 1.72% -0.83% 6.72% 8.60% 15.90%
Ariel Global Fund


As of September 30, 2014
Inception date: December 30, 2011 Annualized
Year To
Ariel Global Fund -3.32% -1.20% 5.84% 10.52% 13.78%
MSCI AC World Index -3.20% -2.20% 4.16% 11.89% 15.92%
Expense Cap as of 2/1/14: 1.25%*
Net Expense Ratio as of the fiscal year ended 9/30/14: 1.29%*
Gross Expense Ratio as of the fiscal year ended 9/30/14: 3.70%*

*As of September 30, 2013 Ariel Global Fund's Investor Class had an annual net expense ratio of 1.40% and an annual gross expense ratio of 5.37% (as shown in the Fund's current prospectus). Effective February 1, 2014, Ariel Investments, LLC, the Adviser, has contractually agreed to waive fees or reimburse expenses (the “Expense Cap”) in order to limit Ariel Global Fund’s total annual operating expenses to 1.25% of net assets for the Investor Class through the end of the fiscal year ending September 30, 2016. Through January 31, 2014, the Expense Cap continued to be 1.40% for the Investor Class.

Investments in foreign securities may underperform and may be more volatile than comparable U.S. stocks because of the risks involving foreign economies and markets, foreign political systems, foreign regulatory standards, foreign currencies and taxes. The use of currency derivatives and exchange-traded funds (ETFs) may increase investment losses and expenses and create more volatility. Investments in emerging and developing markets present additional risks, such as difficulties in selling on a timely basis and at an acceptable price. The intrinsic value of the stocks in which the Fund invests may never be recognized by the broader market. Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains. 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 may be lower or higher than the performance data quoted.

MSCI ACWI (All Country World Index) IndexSM is an unmanaged, market weighted index of global developed and emerging markets. The MSCI ACWI Index (gross) returns reflect the reinvestment of income and other earnings, including the maximum possible dividends. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.

Investors should consider carefully the investment objectives, risks, and charges and expenses before investing. For a current summary prospectus or full prospectus which contains this and other information about the funds offered by Ariel Investment Trust, call us at 800-292-7435 or click here. Please read the summary prospectus or full prospectus carefully before investing. Distributed by Ariel Distributors, LLC, a wholly-owned subsidiary of Ariel Investments, LLC.

Ariel Global Fund

Sector Weightings (%)

As of September 30, 2014
  Ariel Global Fund MSCI ACWI
Health Care 24.91 11.29
Information Technology 19.83 13.35
Consumer Discretionary 12.77 11.27
Financials 12.59 21.54
Consumer Staples 9.62 9.55
Telecommunication Services 8.38 3.91
Energy 5.79 9.43
Industrials 3.29 10.45
Utilities 2.20 3.29
Materials 0.62 5.75
Unclassified 0.00 0.17

Represents percentage of total equity holdings in the portfolio

MSCI ACWI (All Country World Index) IndexSM is an unmanaged, market weighted index of global developed and emerging markets. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.

These sectors are the Global Industry Classification Standard (“GICS”). GICS was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) and is licensed for use by Ariel Investments, LLC. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Ariel Global Fund

Schedule of Holdings

As of September 30, 2014
  Units Security Description Market Value % of Total Value
BRAZIL     284,346 0.5
  8,279 Telefonica Brasil SA ADR 162,931 0.3
  15,086 Souza Cruz SA 121,415 0.2
CANADA     616,088 1.1
  26,378 Canadian Oil Sands Ltd. 486,602 0.9
  289 Fairfax Financial Holdings Ltd. 129,486 0.2
CHILE     54,209 0.1
  2,454 Banco Santander-Chile ADR 54,209 0.1
CHINA     3,741,693 6.6
  142,500 China Mobile Ltd. 1,645,251 2.9
  17,000 China Mobile Ltd. ADR 998,750 1.8
  4,550 Baidu, Inc. ADR 992,946 1.7
  3,473 Mindray Medical Intl Ltd. 104,746 0.2
FINLAND     936,543 1.6
  72,459 Nokia Corp. ADR 613,003 1.1
  34,994 Nokia Corp. 298,566 0.5
  828 Nokian Renkaat Corp. 24,974 0.0
FRANCE     1,812,141 3.3
  9,805 Technip SA 824,912 1.5
  7,553 BNP Paribas SA 501,031 0.9
  11,584 Eutelsat Communications 374,046 0.7
  1,189 Michelin (CGDE) 112,152 0.2
GERMANY     2,784,499 4.9
  23,853 Deutsche Boerse AG 1,606,702 2.8
  152,833 Telefonica Deutschland Holding AG 799,168 1.4
  13,476 Dialog Semiconductor plc 378,629 0.7
HONG KONG     256,386 0.5
  84,000 Yue Yuen Industrial Holdings Ltd. 256,386 0.5
IRELAND     195,248 0.3
  3,460 Ryanair Holdings plc ADR 195,248 0.3
ITALY     909,294 1.6
  139,630 Snam SpA 772,456 1.4
  35,638 Mediaset SpA 136,838 0.2
JAPAN     4,999,580 8.9
  9,900 Shimamura Co., Ltd. 909,888 1.6
  7,100 Daito Trust Construction Co., Ltd. 838,664 1.5
  25,400 Canon Inc. 826,904 1.5
  6,350 Nintendo Co., Ltd. 690,727 1.2
  15,100 Japan Tobacco Inc. 491,103 0.9
  8,000 Toyota Motor Corp. 471,429 0.8
  5,700 Tokyo Electron Ltd. 372,014 0.7
  3,200 Denso Corp. 147,490 0.3
  1,155 Toyota Motor Corp. ADR 135,747 0.2
  8,000 Nikon Corp. 115,614 0.2
NETHERLANDS     1,576,208 2.8
  97,343 Ahold N.V. 1,576,208 2.8
PORTUGAL     56,554 0.1
  5,136 Jeronimo Martins SGPS SA 56,554 0.1
SINGAPORE     87,795 0.2
  5,000 United Overseas Bank Ltd. 87,795 0.2
SPAIN     347,362 0.6
  5,440 Tecnicas Reunidas SA 288,513 0.5
  9,591 Banco Popular Espanol SA 58,716 0.1
  9,591 Banco Popular Espanol SA Right 133 0.0
SWITZERLAND     4,469,826 7.9
  8,827 Roche Holding AG 2,617,496 4.6
  1,076 Swisscom AG 611,428 1.1
  1,907 Zurich Insurance Group Ltd 568,884 1.0
  5,820 Nestle SA 428,255 0.8
  12,423 UBS AG 216,788 0.4
  13 SGS SA 26,975 0.0
TURKEY     246,180 0.4
  6,347 BIM Birlesik Magazalar A.S. 132,848 0.2
  8,625 Turkcell Iletisim Hizmetleri AS ADR 113,332 0.2
UNITED KINGDOM     5,783,806 10.2
  40,685 GlaxoSmithKline plc ADR 1,870,289 3.3
  14,261 Royal Dutch Shell plc ADR 1,085,690 1.9
  41,070 GlaxoSmithKline plc 940,784 1.7
  257,742 Tesco plc 778,015 1.4
  68,951 HSBC Holdings plc 699,854 1.2
  27,462 British Telecom Group plc 168,998 0.3
  2,549 HSBC Holdings plc ADR 129,693 0.2
  671 Reckitt Benckiser Group plc 58,197 0.1
  1,571 Croda Intl plc 52,286 0.1
UNITED STATES     24,836,408 43.6
  33,282 Gilead Sciences, Inc. 3,542,869 6.2
  68,682 Microsoft Corp. 3,184,098 5.6
  28,120 Johnson & Johnson 2,997,311 5.3
  19,692 Harman Intl Industries, Inc. 1,930,604 3.4
  68,703 Tumi Holdings Inc. 1,398,106 2.5
  21,559 Quest Diagnostics Inc. 1,308,200 2.3
  76,398 Acacia Research Corp. 1,182,641 2.1
  27,464 Broadcom Corp. 1,110,095 2.0
  12,171 Wal-Mart Stores, Inc. 930,716 1.6
  20,607 U.S. Bancorp 861,991 1.5
  56,020 Ruckus Wireless, Inc. 748,427 1.3
  7,149 Philip Morris Intl, Inc. 596,227 1.1
  63,521 QLogic Corp. 581,852 1.0
  15,607 Coach, Inc. 555,765 1.0
  2,926 Berkshire Hathaway Inc. 404,198 0.7
  4,630 The PNC Financial Service Group, Inc. 396,235 0.7
  12,804 EMC Corp. 374,645 0.7
  6,829 Southern Co. 298,086 0.5
  1,790 Panera Bread Co. 291,269 0.5
  1,944 Core Laboratories N.V. 284,504 0.5
  2,178 Praxair, Inc. 280,962 0.5
  4,599 Vanguard Total Wld Stock Index Fd (ETF) 277,688 0.5
  6,176 Expeditors Intl of Washington 250,622 0.4
  10,168 NVIDIA Corp. 187,600 0.3
  2,572 Altera Corp. 92,026 0.2
  1,867 Ansys, Inc. 141,276 0.2
  1,456 Rockwell Collins, Inc. 114,296 0.2
  2,555 Wisconsin Energy Corp. 109,865 0.2
  1,080 National Oilwell Varco 82,188 0.1
  851 State Street Corp. 62,642 0.1
  977 JPMorgan Chase & Co. 58,854 0.1
  574 Schlumberger Ltd. 58,370 0.1
  702 Accenture plc 57,087 0.1
  458 M&T Bank Corp. 56,467 0.1
  327 American Express Co. 28,626 0.0
Total Equities     53,994,166 95.2
Fixed Income Clearing Corporation     1,546,235 2.7
Cash, Other Assets less Liabilities     1,212,228 2.1
Grand Total     56,752,629 100.0

Ariel Global Fund


Monthly Commentary: Perspectives on the current market
Quarterly Report: Quarterly performance update and communication to investors
Fact Sheets: Quarterly overview of fund objectives and performance summary
Past performance does not guarantee future results. © Ariel Investments, LLC. The mutual funds offered by Ariel Investment Trust are distributed by Ariel Distributors, LLC. Use of this website is subject to our Terms & Conditions of use. Each of the investment products, mutual funds or services referred to in this site may be offered only to persons in the United States. This web site should not be considered a solicitation or offering of any investment products, funds or services to investors outside the United States. Original illustrations © Omar Rayyan 2007.