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
Inception:
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):
$56.6 million as of 12/31/2014
 
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


Patience

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

Independence

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

Expertise

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

Teamwork

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

 
RB-Int-Global-Investing1.png
Rupal Bhansali on International and Global Investing I
 
RB-Int-Global-Investing2.png
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

Performance

As of December 31, 2014
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year To
Date
One
Year
Three
Years
Since
Inception
Ariel Global Fund -2.90% -0.52% 5.29% 5.29% 12.38% 12.37%
MSCI AC World Index -1.89% 0.52% 4.71% 4.71% 14.72% 14.70%
Ariel Global Fund

Performance

As of December 31, 2014
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year To
Date
One
Year
Three
Years
Since
Inception
Ariel Global Fund -2.90% -0.52% 5.29% 5.29% 12.38% 12.37%
MSCI AC World Index -1.89% 0.52% 4.71% 4.71% 14.72% 14.70%
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%

*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. The Expense Cap prior to February 1, 2014 was 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 December 31, 2014
  Ariel Global Fund MSCI ACWI
Health Care 23.56 11.62
Information Technology 20.82 13.82
Financials 14.38 21.78
Consumer Discretionary 12.80 11.91
Telecommunication Services 10.28 3.76
Consumer Staples 9.03 9.53
Energy 3.66 7.97
Industrials 3.51 10.51
Utilities 1.44 3.38
Materials 0.54 5.37
Unclassified 0.00 0.35

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 December 31, 2014
  Units Security Description Market Value % of Total Value
BRAZIL     503,749 0.9
  14,966 Itau Unibanco Holding SA ADR 194,708 0.3
  22,338 Souza Cruz SA 162,668 0.3
  8,279 Telefonica Brasil SA ADR 146,373 0.3
CANADA     151,435 0.3
  289 Fairfax Financial Holdings Ltd. 151,435 0.3
CHILE     541,058 1.0
  27,437 Banco Santander-Chile ADR 541,058 1.0
CHINA     4,198,295 7.4
  160,000 China Mobile Ltd. 1,878,181 3.3
  5,791 Baidu, Inc. ADR 1,320,174 2.3
  17,000 China Mobile Ltd. ADR 999,940 1.8
FINLAND     891,076 1.6
  72,459 Nokia Corp. ADR 569,528 1.0
  34,994 Nokia Corp. 276,761 0.5
  1,836 Nokian Renkaat Corp. 44,787 0.1
FRANCE     1,319,777 2.3
  7,553 BNP Paribas SA 445,884 0.8
  11,364 Eutelsat Communications 367,508 0.6
  4,949 Technip SA 294,800 0.5
  2,344 Michelin (CGDE) 211,585 0.4
GERMANY     3,054,007 5.3
  24,957 Deutsche Boerse AG 1,773,492 3.1
  152,833 Telefonica Deutschland GmbH & Co. 809,991 1.4
  13,476 Dialog Semiconductor plc 470,524 0.8
HONG KONG     218,951 0.4
  61,000 Yue Yuen Industrial Holdings Ltd. 218,951 0.4
IRELAND     246,594 0.4
  3,460 Ryanair Holdings plc ADR 246,594 0.4
ISRAEL     36,557 0.1
  10,701 Bank Leumi Le-Israel BM 36,557 0.1
ITALY     428,190 0.8
  56,889 Snam SpA 281,556 0.5
  35,638 Mediaset SpA 146,634 0.3
JAPAN     4,289,708 7.6
  9,900 Shimamura Co., Ltd. 854,339 1.5
  6,350 Nintendo Co., Ltd. 662,671 1.2
  5,400 Daito Trust Construction Co., Ltd. 612,564 1.1
  18,600 Canon Inc. 591,178 1.0
  8,000 Toyota Motor Corp. 498,539 0.9
  15,100 Japan Tobacco Inc. 415,594 0.7
  2,900 Tokyo Electron Ltd. 219,908 0.4
  3,200 Denso Corp. 149,145 0.3
  1,155 Toyota Motor Corp. ADR 144,929 0.3
  10,600 Nikon Corp. 140,841 0.2
MEXICO     55,840 0.1
  5,390 Santander Mexico Financial Group ADR 55,840 0.1
NETHERLANDS     1,730,063 3.1
  97,343 Ahold N.V. 1,730,063 3.1
PORTUGAL     51,465 0.1
  5,136 Jeronimo Martins SGPS SA 51,465 0.1
SINGAPORE     147,632 0.3
  8,000 United Overseas Bank Ltd. 147,632 0.3
SPAIN     237,780 0.4
  5,440 Tecnicas Reunidas SA 237,780 0.4
SWITZERLAND     4,533,521 8.1
  9,289 Roche Holding AG 2,516,782 4.5
  8,451 Nestle SA 616,086 1.1
  1,907 Zurich Insurance Group Ltd 595,942 1.1
  1,076 Swisscom AG 564,617 1.0
  12,423 UBS AG 213,548 0.4
  13 SGS SA 26,546 0.0
TURKEY     266,140 0.4
  6,347 BIM Birlesik Magazalar A.S. 135,730 0.2
  8,625 Turkcell Iletisim Hizmetleri AS ADR 130,410 0.2
UNITED KINGDOM     5,183,159 9.1
  42,493 GlaxoSmithKline plc ADR 1,816,151 3.2
  48,159 GlaxoSmithKline plc 1,033,184 1.8
  14,261 Royal Dutch Shell plc ADR 954,774 1.7
  68,951 HSBC Holdings plc 651,570 1.2
  5,236 Reckitt Benckiser Group plc 424,084 0.7
  27,462 British Telecom Group plc 170,815 0.3
  2,549 HSBC Holdings plc ADR 120,389 0.2
  5,236 Indivior PLC 12,192 0.0
UNITED STATES     25,135,550 44.4
  68,682 Microsoft Corp. 3,190,279 5.6
  33,282 Gilead Sciences, Inc. 3,137,161 5.6
  25,640 Johnson & Johnson 2,681,175 4.7
  19,692 Harman Intl Industries, Inc. 2,101,333 3.7
  61,910 Tumi Holdings Inc. 1,469,124 2.6
  76,398 Acacia Research Corp. 1,294,182 2.3
  17,779 Quest Diagnostics Inc. 1,192,260 2.1
  27,464 Broadcom Corp. 1,190,015 2.1
  20,607 U.S. Bancorp 926,285 1.6
  63,521 QLogic Corp. 846,100 1.5
  15,049 Verizon Communications Inc. 703,992 1.2
  7,318 Wal-Mart Stores, Inc. 628,470 1.1
  48,608 Ruckus Wireless, Inc. 584,268 1.0
  7,149 Philip Morris Intl, Inc. 582,286 1.0
  9,312 Southern Co. 457,312 0.8
  2,926 Berkshire Hathaway Inc. 439,339 0.8
  4,630 The PNC Financial Service Group, Inc. 422,395 0.7
  12,804 EMC Corp. 380,791 0.7
  7,914 Coach, Inc. 297,250 0.5
  7,104 Vanguard FTSE Emerging Markets ETF 284,302 0.5
  2,178 Praxair, Inc. 282,182 0.5
  4,599 Vanguard Total Wld Stock Index Fd (ETF) 276,492 0.5
  1,944 Core Laboratories N.V. 233,941 0.4
  10,168 NVIDIA Corp. 203,868 0.4
  2,386 Schlumberger Ltd. 203,788 0.4
  4,373 Altera Corp. 161,539 0.3
  1,867 Ansys, Inc. 153,094 0.3
  3,428 Expeditors Intl of Washington 152,923 0.3
  1,009 CME Group Inc. 89,448 0.2
  492 Panera Bread Co. 86,002 0.2
  1,418 Accenture plc 126,642 0.2
  1,456 Rockwell Collins, Inc. 123,003 0.2
  851 State Street Corp. 66,804 0.1
  977 JPMorgan Chase & Co. 61,141 0.1
  458 M&T Bank Corp. 57,534 0.1
  327 American Express Co. 30,424 0.1
  349 Wisconsin Energy Corp. 18,406 0.0
Total Equities     53,220,547 94.1
Fixed Income Clearing Corporation     1,455,621 2.6
Cash, Other Assets less Liabilities     1,891,429 3.3
Grand Total     56,567,597 100.0

Ariel Global Fund

Commentary

 
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.