Represents percentage of total equity holdings in the representative portfolio

MSCI EAFE® Index is an unmanaged, market-weighted index of companies in developed markets, excluding the U.S. and Canada. 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.

We employ a differentiated, repeatable four-part investment process that embeds risk management at every step.

Step 1: Screening
Aim to reduce risk by eliminating businesses more likely to fail or to be marginalized. This purges about 60% of the benchmark’s stocks.

Step 2: Research
Assess for how success will be sustained. The lead analyst digs far and wide and interacts with management (onsite and offsite) to form an informed, differentiated proprietary view of the industry and the business.

Step 3: Validation
Conduct scenario analyses and stress tests and examine valuation risk. A three-person team (lead analyst, devil’s advocate and fresh analyst) debates and critiques the thesis, financial forecasts and assesses valuation scenarios such as base, best and worst case.

Step 4: Portfolio Construction
Weigh the risks and rewards of each investment idea with a goal to build a high conviction stock portfolio with superior risk/reward characteristics. Resulting portfolios include 40 to 75 stocks.

Ariel Investments, LLC is a money management firm headquartered in Chicago, Illinois. Taking a long-term view and applying independent thinking to our investment decisions, we span the market cap spectrum from micro to large and cover the globe with our international and global offerings. Ariel claims compliance with the Global Investment Performance Standards (GIPS®). The Ariel International Equity (DM) strategy seeks long-term capital appreciation by investing primarily in common stock issued by companies outside the U.S. in developed international markets. The Ariel International Equity Composite (DM) differs from its benchmark, the MSCI EAFE Index, with fewer holdings. Index returns reflect the reinvestment of income and other earnings. Indexes are unmanaged, and investors cannot invest directly in an index. Investments in foreign securities may be made through the purchase of individual securities on recognized foreign exchanges and developed over-the-counter markets, or through American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), European Depositary Receipts (EDRs) and International Depositary Receipts (IDRs), or other securities representing underlying shares of foreign issues, including certificates of deposit issued by foreign banks and foreign branches of U.S. banks. The strategy may invest in large, medium, or small companies without regard to market capitalization. The strategy may use various techniques to hedge currency exposure, including derivatives, exchange-traded funds (ETFs), and other hedges. These techniques may include the following: buying and selling currency on a spot basis, entering into foreign currency forward contracts, buying and selling foreign currency options and securities, securities index options, futures contracts and related options, and entering into swap agreements. These techniques may be used for hedging purposes or to increase return through the use of derivatives as a substitute for securities or to reduce the risk of loss of certain holdings. The strategy may include the holding of cash for defensive purposes.

Performance results are net of transaction costs and reflect the reinvestment of dividends and other earnings. Net returns reflect the deduction of the maximum advisory fee in effect for the respective period, which is currently 0.90% per annum. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. Fee information is available upon request and may also be found in Ariel’s Form ADV, Part 2. Returns are calculated in U.S. dollars. The Ariel International Equity (DM) Composite has been examined for the period from January 1, 2012 through December 31, 2012. A copy of the examination report is available upon request. Past performance does not guarantee future results. 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, ETFs, and other hedges may increase investment losses and expenses and create more volatility.

Click here to obtain a complete list of composite descriptions or a presentation that adheres to the GIPS standards. You may also contact Krista Rivers at 800-725-0140, or write Ariel Investments, 200 East Randolph Drive, Suite 2900, Chicago, Illinois, 60601.

MSCI EAFE® Index is an unmanaged, market-weighted index of companies in developed markets, excluding the U.S. and Canada. 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.