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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):
$57.2 million as of 06/30/2014
Portfolio Manager
Bhansali_Rupal_Web.png Rupal J. Bhansali
Portfolio Manager

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 August 31, 2014
Inception date: December 30, 2011 Annualized
Year To
Ariel Global Fund 3.00% 4.11% 9.48% 20.08% 15.69%
MSCI AC World Index 2.25% 2.99% 7.61% 21.61% 17.87%
Ariel Global Fund


As of June 30, 2014
Inception date: December 30, 2011 Annualized
Year To
Ariel Global Fund 1.87% 4.51% 7.13% 21.36% 15.83%
MSCI AC World Index 1.93% 5.23% 6.50% 23.58% 18.70%
Expense Cap as of 2/1/14: 1.25%*
Net Expense Ratio as of the fiscal year ended 9/30/13: 1.40%*
Gross Expense Ratio as of the fiscal year ended 9/30/13: 5.37%*

*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 will continue 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 June 30, 2014
  Ariel Global Fund MSCI ACWI
Health Care 22.46 10.63
Information Technology 19.14 12.79
Consumer Discretionary 14.47 11.39
Financials 13.60 21.33
Consumer Staples 10.69 9.57
Telecommunication Services 6.90 3.85
Energy 5.31 10.18
Industrials 3.73 10.66
Utilities 2.11 3.37
Materials 1.59 6.04
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 June 30, 2014
  Units Security Description Market Value % of Total Value
BRAZIL     234,091 0.4
  6,102 Telefonica Brasil SA ADR 125,152 0.2
  10,571 Souza Cruz SA 108,939 0.2
CANADA     303,596 0.6
  201 Fairfax Financial Holdings Ltd. 95,357 0.2
  1,622 Tim Hortons Inc. 88,727 0.2
  5,274 Canadian Oil Sands Ltd. 119,512 0.2
CHINA     2,331,649 4.0
  17,000 China Mobile Ltd. ADR 826,370 1.4
  82,500 China Mobile Ltd. 800,475 1.4
  3,341 Baidu, Inc. ADR 624,132 1.1
  2,561 Mindray Medical Intl Ltd. 80,672 0.1
CZECH REPUBLIC     63,709 0.1
  277 Komercni Banka AS 63,709 0.1
FINLAND     659,116 1.2
  52,134 Nokia Corp. ADR 394,133 0.7
  34,994 Nokia Corp. 264,983 0.5
FRANCE     1,655,836 2.9
  18,597 Eutelsat Communications 646,171 1.1
  5,789 Technip SA 633,278 1.1
  5,548 BNP Paribas SA 376,387 0.7
GERMANY     2,012,028 3.6
  17,379 Deutsche Boerse AG 1,348,818 2.4
  9,781 Dialog Semiconductor plc 339,181 0.6
  39,185 Telefonica Deutschland Holding AG 324,029 0.6
HONG KONG     265,873 0.5
  78,500 Yue Yuen Industrial 265,873 0.5
IRELAND     139,612 0.2
  2,502 Ryanair Holdings plc ADR 139,612 0.2
ITALY     683,304 1.2
  102,449 Snam SpA 617,247 1.1
  13,551 Mediaset SpA 66,057 0.1
JAPAN     4,042,082 7.2
  7,300 Shimamura Co., Ltd. 717,714 1.3
  5,200 Daito Trust Construction Co., Ltd. 611,342 1.1
  18,700 Canon Inc. 608,412 1.1
  4,650 Nintendo Co., Ltd. 556,550 1.0
  7,200 Toyota Motor Corp. 432,405 0.8
  10,900 Japan Tobacco Inc. 397,352 0.7
  5,700 Tokyo Electron Ltd. 385,308 0.7
  1,155 Toyota Motor Corp. ADR 138,207 0.2
  2,300 Denso Corp. 109,772 0.2
  5,400 Nikon Corp. 85,020 0.1
NETHERLANDS     1,323,354 2.3
  70,492 Ahold N.V. 1,323,354 2.3
SINGAPORE     72,243 0.1
  4,000 United Overseas Bank Ltd. 72,243 0.1
SPAIN     377,149 0.7
  6,097 Tecnicas Reunidas SA 377,149 0.7
SWITZERLAND     3,464,620 6.0
  6,443 Roche Holding AG 1,921,711 3.4
  2,171 Zurich Insurance Group Ltd 654,385 1.1
  786 Swisscom AG 456,905 0.8
  3,000 Nestle SA 232,409 0.4
  10,858 UBS AG 199,210 0.3
TURKEY     212,074 0.4
  7,142 Turkcell Iletisim Hizmetleri AS ADR 111,415 0.2
  4,388 BIM Birlesik Magazalar A.S. 100,659 0.2
UNITED KINGDOM     4,426,518 7.7
  30,047 GlaxoSmithKline plc ADR 1,606,914 2.8
  189,345 Tesco plc 920,936 1.6
  10,110 Royal Dutch Shell plc ADR 832,761 1.5
  56,680 HSBC Holdings plc 575,126 1.0
  20,216 British Telecom Group plc 133,166 0.2
  2,549 HSBC Holdings plc ADR 129,489 0.2
  3,347 Croda Intl plc 126,074 0.2
  857 British American Tobacco plc ADR 102,052 0.2
UNITED STATES     18,398,600 32.1
  28,104 Gilead Sciences, Inc. 2,330,103 4.1
  50,561 Microsoft Corp. 2,108,394 3.7
  20,137 Johnson & Johnson 2,106,733 3.7
  14,530 Harman Intl Industries, Inc. 1,560,958 2.7
  50,428 Tumi Holdings Inc. 1,015,116 1.8
  16,911 Quest Diagnostics Inc. 992,507 1.7
  56,398 Acacia Research Corp. 1,001,065 1.7
  20,220 Broadcom Corp. 750,566 1.3
  8,942 Wal-Mart Stores, Inc. 671,276 1.2
  15,048 U.S. Bancorp 651,879 1.1
  3,855 Praxair, Inc. 512,098 0.9
  14,675 Coach, Inc. 501,738 0.9
  41,139 Ruckus Wireless, Inc. 489,965 0.9
  5,293 Philip Morris Intl, Inc. 446,253 0.8
  6,669 Vanguard Total Wld Stock Index Fd (ETF) 415,012 0.7
  40,260 QLogic Corp. 406,223 0.7
  21,759 NVIDIA Corp. 403,412 0.7
  3,382 The PNC Financial Service Group, Inc. 301,167 0.5
  2,140 Berkshire Hathaway Inc. 270,838 0.5
  9,408 EMC Corp. 247,807 0.4
  4,534 Expeditors Intl of Washington 200,221 0.3
  1,315 Panera Bread Co. 197,026 0.3
  1,882 Wisconsin Energy Corp. 88,303 0.2
  3,188 Southern Co. 144,671 0.2
  1,909 C.H. Robinson Worldwide, Inc. 121,775 0.2
  647 Core Laboratories NV 108,088 0.2
  1,095 Ansys, Inc. 83,023 0.1
  794 National Oilwell Varco 65,386 0.1
  625 State Street Corp. 42,038 0.1
  515 Accenture plc 41,633 0.1
  335 M&T Bank Corp. 41,557 0.1
  718 JPMorgan Chase & Co. 41,371 0.1
  517 Rockwell Collins, Inc. 40,398 0.1
Total Equities     40,665,454 71.2
Fixed Income Clearing Corporation     1,179,485 2.1
Cash, Other Assets less Liabilities     15,308,414 26.7
Grand Total     57,153,353 100.0

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.