Ariel International Equity Fund & Ariel Global Equity Fund FAQs

Who will manage Ariel International Equity Fund and Ariel Global Equity Fund?
Rupal J. Bhansali is responsible for managing Ariel’s new international and global strategies. On October 1st, she assumed the title of Senior Vice President and Chief Investment Officer of International Equities reporting to John W. Rogers, Jr. We now have a solid group of experienced international team members in place to effectively run these portfolios.

What is Rupal’s background, qualifications and education?
Prior to joining Ariel in October, Rupal spent a decade with MacKay Shields where she served as Senior Managing Director, Portfolio Manager and Head of International Equities—successfully overseeing institutional and retail portfolios. Prior to MacKay, Rupal served as Portfolio Manager and Co-Head of International Equities at Oppenheimer Capital after a stint as Senior Investment Analyst at Soros Fund Management. Rupal earned a Bachelor of Commerce in Accounting & Finance and a Master of Commerce in International Finance & Banking from the University of Mumbai as well as an MBA in Finance from the University of Rochester where she was a Rotary Foundation Scholar. For more details, please refer to our press release.

What did Ariel find particularly appealing about Rupal’s background and investment experience?
First and foremost, she is a seasoned investor whose long-term perspective is aligned with our patient investing philosophy. We have also been struck by other similarities in her approach to investing—namely, she creates her portfolios one stock at a time by doing in-depth, hands-on analytical work. Over many market cycles, she has demonstrated the ability to think independently. Her goal is to own undervalued, high quality franchises that generate superior long term results with limited downside risk. Simply put, she wants to own the ‘blue chips’ of tomorrow and is willing to go anywhere in the world to find these gems. Lastly, she knows how to nurture and develop great analysts. In sum, we believe Rupal applies the same rigorous investment processes as Ariel, but to the international and global markets.

International investing involves special risks, which include changes in currency rates and monetary policy, less liquid trading markets, less publicly available information about issuers, changes in U.S. and foreign tax or currency laws, differences in auditing standards and securities regulations, political uncertainty and greater volatility. International investments also may involve imposition of taxes, higher expenses and costs, currency rate fluctuations or exchange controls, other government restrictions or lack of government protections. Securities of issuers in emerging and developing markets present additional risks, such as difficulties in selling on a timely basis and at an acceptable price.

Describe the new offerings in more detail?
On December 30, 2011, we launched Ariel International Equity Fund (Ticker: AINTX) and Ariel Global Equity Fund (Ticker: AGLOX) to the investing public. Both funds have an investment objective of long-term capital appreciation. The international strategy has a bottom-up (stock by stock) approach, similar to Ariel’s approach to investing and looks for companies outside the U.S. in developed international markets. Both funds are diversified and invest in companies of all market capitalizations. We expect both portfolios will have relatively low turnover as Rupal employs a long-term view of investing. Both Ariel International Equity Fund and Ariel Global Equity Fund will generally hold between 40 – 150 securities. Rupal’s approach to portfolio construction is similar to Ariel’s in that her stock selection process focuses on quality companies that generate long term, sustainable profits. Specifically, she looks to buy companies with strong balance sheets, earnings consistent with the underlying business strategies and a clear competitive advantage that will endure over the long term. To mitigate risk, she makes her purchase decisions opportunistically by seeking price dislocations in the market and uncovering stocks that other investors may have overlooked. The primary benchmark for Ariel International Equity Fund is the MSCI EAFE Index while Ariel Global Equity Fund uses the MSCI ACWI (All Country World Index) Index as its benchmark. To read more about Rupal’s investment strategy, please refer to the summary prospectuses for Ariel International Equity Fund and Ariel Global Equity Fund.

International investing involves special risks, which include changes in currency rates and monetary policy, less liquid trading markets, less publicly available information about issuers, changes in U.S. and foreign tax or currency laws, differences in auditing standards and securities regulations, political uncertainty and greater volatility. International investments also may involve imposition of taxes, higher expenses and costs, currency rate fluctuations or exchange controls, other government restrictions or lack of government protections. Securities of issuers in emerging and developing markets present additional risks, such as difficulties in selling on a timely basis and at an acceptable price.

MSCI EAFE® Index is an unmanaged, market-weighted index of companies in developed markets, excluding the U.S. and Canada. MSCI ACWI (All Country World Index) IndexSM is an unmanaged, market-weighted index of global developed and emerging markets.

What percent of assets will Ariel Global Equity Fund invest outside of the U.S.?
At least 50% of the Fund’s assets will be invested in countries other than the U.S.

Will the new funds hedge risk due to foreign currency exposure?
Due to the bottom-up stock selection process, significant exposures to certain foreign currencies may arise, and the Funds may use foreign currency forward contracts to hedge this risk. The objective of the Funds’ hedging strategy is to dampen the effects of large currency moves in major benchmark currencies, but not to eliminate the foreign currency risk altogether.

Will these strategies also be available for separately managed account clients?
Yes. These strategies will be available to Ariel’s separate account clients on January 3, 2012. It is important to note, these two new funds, along with our existing Ariel mutual funds (i.e., Ariel Fund, Ariel Appreciation Fund, Ariel Focus Fund and Ariel Discovery Fund) will now have both investor and institutional share classes. The minimum for the investor class remains at $1,000 while the minimum for the institutional class is $1 million. The minimum for subsequent purchases (regardless of share classes) will be $100. Each share class has its own ticker symbol. Please refer to each fund’s prospectus for more details.



If you have additional questions, please contact an Investment Specialist at 800-292-7435.

 
You may also be interested in
Learn more about our history, available strategies and key facts
For interview inquiries
 
 
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.