Ariel Micro-Cap Value Composite

The Ariel Micro-Cap Value Composite includes all discretionary, fee-paying, commission-paying, non-wrap micro-cap portfolios that are invested in the micro cap value strategy, excluding pooled funds. The Ariel Micro-Cap Value Composite may contain accounts with performance based fees. This strategy seeks long-term capital appreciation by investing micro-cap companies which offer long-term, fundamental investment value. The deep value portfolio invests primarily in common stocks of U.S. companies that, at the time of initial purchase by Ariel for the strategy, have market capitalizations under $500 million. Prior to May 1, 2009, the strategy’s market cap range was $50 million to $300 million; it was changed to broaden the availability of qualifying investments and to more closely resemble the range of its benchmark. The strategy may include the holding of cash for defensive purposes. Also, the strategy may include temporary investments in exchange-traded funds (ETFs) while seeking other investment opportunities. During the period from June 2004 through January 2008, the investment strategy included periodically holding short positions in certain ETFs. This practice may have had a material effect on returns. The benchmark for this composite is the Russell Microcap® Value Index.

Ariel Small Cap Value Tax-Exempt Composite

The Ariel Small Cap Value Tax-Exempt Composite includes all discretionary, fee-paying, commission-paying, non-wrap small cap tax-exempt portfolios that are invested in the small cap value strategy, excluding pooled funds. This strategy seeks long-term capital appreciation by investing in small-sized undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies. While over time the portfolio’s market capitalization range may trend above or below the stated target, this strategy generally will seek to have a portfolio with a weighted average market capitalization between $200 million and $2 billion. The strategy will not hold stocks that fall within the top three quintiles of the Russell U.S. equity indexes (a comprehensive representation of market-cap weighted security indexes of the investable U.S. equity market). If such stock falls within the top three quintiles, it will be sold by the end of the following quarter. The benchmark for this composite is the Russell 2000® Value Index.

Ariel Small/Mid Cap Value Composite

The Ariel Small/Mid Cap Value Composite includes all discretionary, fee-paying, commission-paying, non-wrap small/mid cap portfolios that are invested in the small/mid cap value strategy, excluding pooled funds. This strategy seeks long-term capital appreciation by investing in small/mid-sized undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies. While over time the portfolio’s market capitalization range may trend above or below the stated target, this strategy generally will seek to have a portfolio with a weighted average market capitalization between $1 billion and $7.5 billion. The strategy will not hold stocks that fall within the top two quintiles of the Russell U.S. equity indexes (a comprehensive representation of market-cap weighted security indexes of the investable U.S. equity market). If such stock falls within the top two quintiles, it will be sold by the end of the following quarter. The benchmark for this composite is the Russell 2500^TM Value Index.

Ariel Mid Cap Value Composite

The Ariel Mid Cap Value Composite includes all discretionary, fee-paying, commission-paying, non-wrap mid cap portfolios that are invested in the mid cap value strategy, excluding pooled funds. This strategy seeks long-term capital appreciation by investing in mid-sized undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies. While over time the portfolio’s market capitalization range may trend above or below the stated target, this strategy generally will seek to have a portfolio with a weighted average market capitalization between $2 billion and $15 billion. The strategy will not hold stocks that fall within the top quintile of the Russell U.S. equity indexes (a comprehensive representation of market-cap weighted security indexes of the investable U.S. equity market). If such stock falls within the top quintile, it will be sold by the end of the following quarter. Effective August 1, 2010, the Ariel Mid Cap Value Composite was redefined to exclude pooled funds due to differences in performance calculation methods. The benchmark for this composite is the Russell Midcap® Value Index.

Ariel Focused Value Composite

The Ariel Focused Value Composite includes all discretionary, fee-paying, commission-paying, non-wrap portfolios that are invested in the focused value strategy, excluding pooled funds. This strategy seeks long-term capital appreciation by investing in undervalued companies that show strong potential for growth. The portfolio invests primarily in the common stocks of U.S. companies that, currently or at the time of initial purchase by Ariel for the strategy, have market capitalizations in excess of $10 billion. The benchmark for this composite is the Russell 1000® Value Index.

Ariel Small Cap Value Wrap Composite

Beginning in April 2001, the Ariel Small Cap Value Wrap Composite includes all discretionary, fee-paying wrap small cap portfolios that are invested in the small cap value strategy. This strategy seeks long-term capital appreciation by investing in small-sized undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies. While over time the portfolio’s market capitalization range may trend above or below the stated target, this strategy generally will seek to have a portfolio with a weighted average market capitalization between $200 million and $2 billion. The strategy will not hold stocks that fall within the top three quintiles of the Russell U.S. equity indexes (a comprehensive representation of market-cap weighted security indexes of the investable U.S. equity market). If such stock falls within the top three quintiles, it will be sold by the end of the following quarter. Performance results from January 1997 through March 2001 are those of the Ariel Small Cap Value Taxable Composite. The benchmark for this composite is the Russell 2000® Value Index.

Ariel Small/Mid Cap Value Wrap Composite

Beginning in April 2002, the Ariel Small/Mid Cap Value Wrap Composite includes all discretionary, fee-paying wrap small/mid cap portfolios that are invested in the small/mid cap value strategy. This strategy seeks long-term capital appreciation by investing in small/mid-sized undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies. While over time the portfolio’s market capitalization range may trend above or below the stated target, this strategy generally will seek to have a portfolio with a weighted average market capitalization between $1 billion and $7.5 billion. The strategy will not hold stocks that fall within the top two quintiles of the Russell U.S. equity indexes (a comprehensive representation of market-cap weighted security indexes of the investable U.S. equity market). If such stock falls within the top two quintiles, it will be sold by the end of the following quarter. Performance results from January 2001 through March 2002 are those of the Ariel Small/Mid Cap Value Composite. The benchmark for this composite is the Russell 2500^TM Value Index.

Ariel Mid Cap Value Wrap Composite

Beginning in July 2000, the Ariel Mid Cap Value Wrap Composite includes all discretionary, fee-paying wrap mid cap portfolios that are invested in the mid cap value strategy. This strategy seeks long-term capital appreciation by investing in mid-sized undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies. While over time the portfolio’s market capitalization range may trend above or below the stated target, this strategy generally will seek to have a portfolio with a weighted average market capitalization between $2 billion and $15 billion. The strategy will not hold stocks that fall within the top quintile of the Russell U.S. equity indexes (a comprehensive representation of market-cap weighted security indexes of the investable U.S. equity market). If such stock falls within the top quintile, it will be sold by the end of the following quarter.  Performance results from April 1990 through June 2000 are those of the Ariel Mid Cap Value Composite. The benchmark for this composite is the Russell Midcap® Value Index.

Ariel Small Cap Value Taxable Composite

The Ariel Small Cap Value Taxable Composite includes all discretionary, fee-paying, commission-paying, non-wrap small cap taxable portfolios that are invested in the small cap value strategy, excluding pooled funds. This strategy seeks long-term capital appreciation by investing in small-sized undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies. While over time the portfolio’s market capitalization range may trend above or below the stated target, this strategy generally will seek to have a portfolio with a weighted average market capitalization between $200 million and $2 billion. The strategy will not hold stocks that fall within the top three quintiles of the Russell U.S. equity indexes (a comprehensive representation of market-cap weighted security indexes of the investable U.S. equity market). If such stock falls within the top three quintiles, it will be sold by the end of the following quarter. The benchmark for this composite is the Russell 2000® Value Index.

Ariel Small Cap Deep Value Fund Composite

The Ariel Small Cap Deep Value Fund Composite includes all proprietary mutual funds invested in the small cap deep value strategy. This strategy seeks long-term capital appreciation by investing in small-sized companies that are selling at deep discounts to their intrinsic value. The portfolio invests primarily in common stocks of U.S. companies that at the time of initial purchase by Ariel for the strategy, have market capitalizations under $2 billion. The benchmark for this composite is the Russell 2000® Value Index.

Ariel Small/Mid Cap Value Fund Composite

The Ariel Small/Mid Cap Value Fund Composite includes all proprietary mutual funds invested in the small/mid cap value strategy. This strategy seeks long-term capital appreciation by investing in small/mid-sized undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies and generally will have a weighted average market capitalization between $1 billion and $7.5 billion. The strategy will not hold stocks that fall within the top two quintiles of the Russell U.S. equity indexes (a comprehensive representation of market-cap weighted security indexes of the investable U.S. equity market). If such stock falls outside the parameters, it will be sold in the following quarter. The benchmark for this composite is the Russell 2500^TM Value Index.

Ariel Mid Cap Value Fund Composite

The Ariel Mid Cap Value Fund Composite includes all proprietary mutual funds invested in the mid cap value strategy. This strategy seeks long-term capital appreciation by investing in mid-sized undervalued companies in consistent industries that show strong potential for growth. The strategy invests primarily in common stocks of U.S. companies and generally will have a weighted average market capitalization between $2 billion and $15 billion. The strategy will not hold stocks that fall within the top quintile of the Russell/Mellon universe. Performance results prior to August 1, 2010 are those of the Ariel Mid Cap Value Composite. The benchmark for this composite is the Russell Midcap® Value Index.

Ariel Mid/Large Cap Value Fund Composite

The Ariel Mid/Large Cap Value Fund Composite includes all proprietary mutual funds invested in the mid/large cap value strategy. This strategy seeks long-term capital appreciation by investing in undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies that, currently or at the time of initial purchase by Ariel for the strategy, have market capitalizations in excess of $10 billion. The benchmark for this composite is the Russell 1000® Value Index.

Ariel Non-Wrap/Zero Commission Micro-Cap Value Composite

The Ariel Non-Wrap/Zero Commission Micro-Cap Value Composite includes all discretionary, fee-paying, non-wrap micro-cap portfolios that are invested in the micro-cap value strategy, that do not pay trading commissions. This strategy seeks long-term capital appreciation by investing micro- cap companies which offer long-term, fundamental investment value. The deep value portfolio invests primarily in common stocks of U.S. companies which, at the time of initial purchase by Ariel for the strategy, have market capitalizations under $500 million. The strategy may include the holding of cash for defensive purposes. Also, the strategy may include temporary investments in exchange-traded funds (ETFs) while seeking other investment opportunities. The benchmark for this composite is the Russell Microcap® Value Index.

Ariel Non-Wrap/Zero Commission Small/Mid Cap Value Composite

The Ariel Non-Wrap/Zero Commission Small/Mid Cap Value Composite includes all fully discretionary, fee-paying, non-wrap small/mid cap portfolios that are invested in the small/mid cap value strategy that do not pay trading commissions. This strategy seeks long-term capital appreciation by investing in small/mid-sized undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies. While over time the portfolio’s market capitalization range may trend above or below the stated target, this strategy generally will seek to have a portfolio with a weighted average market capitalization between $1 billion and $7.5 billion. The strategy will not hold stocks that fall within the top two quintiles of the Russell U.S. equity indexes (a comprehensive representation of market-cap weighted security indexes of the investable U.S. equity market). If such stock falls within the top two quintiles, it will be sold by the end of the following quarter. The benchmark for this composite is the Russell 2500^TM Value Index.

Ariel Non-Wrap/Zero Commission Mid Cap Value Composite

The Ariel Non-Wrap/Zero Commission Mid Cap Value Composite includes all fully discretionary, fee-paying, non-wrap mid cap portfolios that are invested in the mid cap value strategy that do not pay trading commissions. This strategy seeks long-term capital appreciation by investing in mid-sized undervalued companies that show strong potential for growth. The portfolio invests primarily in common stocks of U.S. companies. While over time the portfolio’s market capitalization range may trend above or below the stated target, this strategy generally will seek to have a portfolio with a weighted average market capitalization between $2 billion and $15 billion. The strategy will not hold stocks that fall within the top quintile of the Russell U.S. equity indexes (a comprehensive representation of market-cap weighted security indexes of the investable U.S. equity market). If such stock falls within the top quintile, it will be sold by the end of the following quarter. The benchmark for this composite is the Russell Midcap® Value Index.

Ariel International Equity Composite (DM)

The Ariel International Equity (DM) Composite includes all discretionary, fee-paying, commission-paying, non-wrap portfolios that are invested in the international equity strategy, excluding pooled funds.  This strategy seeks long-term capital appreciation by investing primarily in common stock issued by companies outside the U.S. in developed international markets.  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. The benchmark for this composite is the MSCI EAFE® Index.

Ariel International Equity Composite (DM/EM)

The Ariel International Equity (DM/EM) Composite includes all discretionary, fee-paying, commission-paying, non-wrap portfolios that are invested in the International Equity (DM/EM) strategy, excluding pooled funds.  This strategy seeks long-term capital appreciation by investing primarily in common stock issued by companies outside the U.S., including in countries with developed or emerging markets.  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 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. The benchmark for this composite is the MSCI ACWI (All Country World Index) ex-US Index.

Ariel International Fund Composite

The Ariel International Fund Composite includes all proprietary mutual funds invested in the international strategy.  This strategy seeks long-term capital appreciation by investing primarily in common stock issued by companies outside the U.S. in developed international markets.  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, 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. The benchmark for this composite is the MSCI EAFE® Index.

Ariel Global Equity Composite

The Ariel Global Equity Composite includes all discretionary, fee-paying, commission-paying, non-wrap portfolios that are invested in the global equity strategy, excluding pooled funds.  This strategy seeks long-term capital appreciation by investing primarily in common stock issued by companies both within and outside the U.S., including in countries with developed or emerging markets.  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. The benchmark for this composite is the MSCI ACWI (All Country World Index) Index^SM.

Ariel Global Fund Composite

The Ariel Global Fund Composite includes all proprietary mutual funds invested in the global strategy.  This strategy seeks long-term capital appreciation by investing primarily in common stock issued by companies both within and outside the U.S., including in countries with developed or emerging markets.  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 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 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.  The benchmark for this composite is the MSCI ACWI (All Country World Index) Index^SM.

Ariel Domestic All Cap Composite

The Ariel Domestic All Cap Composite includes all discretionary, fee-paying, commission-paying, non-wrap portfolios that are invested in the domestic all cap strategy, excluding pooled funds.  This strategy seeks long-term capital appreciation by investing primarily in common stock issued by U.S. companies.  The strategy may invest in 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 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.  The benchmark for this composite is the S&P 500® Index.

Ariel Non-Wrap/Zero Commission Micro-Cap Value Composite

The Ariel Non-Wrap/Zero Commission Micro-Cap Value Composite includes all discretionary, fee-paying, non-wrap micro-cap portfolios that are invested in the micro-cap value strategy, that do not pay trading commissions. This strategy seeks long-term capital appreciation by investing micro- cap companies which offer long-term, fundamental investment value. The deep value portfolio invests primarily in common stocks of U.S. companies which, at the time of initial purchase by Ariel for the strategy, have market capitalizations under $500 million. The strategy may include the holding of cash for defensive purposes. Also, the strategy may include temporary investments in exchange-traded funds (ETFs) while seeking other investment opportunities. The benchmark for this composite is the Russell Microcap® Value Index.

Ariel Non-Wrap/Zero Commission Focused Value Composite (terminated 11.1.09)

The Ariel Non-Wrap/Zero Commission Focused Value Composite includes all fully discretionary, fee-paying, non-wrap mid/large cap portfolios that are invested in the focused value strategy that do not pay trading commissions. This strategy seeks long-term capital appreciation by investing in mid/large-sized undervalued companies that show strong potential for growth. The strategy invests primarily in the stocks of companies which, at the time of initial purchase by Ariel for the portfolio, have market capitalizations greater than $10 billion. The benchmark for this composite is the Russell 1000® Value Index.

Ariel Non-Wrap/Zero Commission Small Cap Value Composite (terminated 7.1.09)

The Ariel Non-Wrap/Zero Commission Small Cap Value Composite includes all fully discretionary, fee-paying, non-wrap small cap portfolios that are invested in the small cap value strategy that do not pay trading commissions. This strategy seeks long-term capital appreciation by investing in small-sized undervalued companies in consistent industries that show strong potential for growth. The strategy invests primarily in the stocks of companies which, at the time of initial purchase by Ariel for the portfolio, have market capitalizations between $200 million and $2 billion. The benchmark for this composite is the Russell 2000® Value Index.