Complete List of Composites

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 in micro-cap companies which offer long-term, fundamental investment value. The deep value portfolio invests primarily in equity securities 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 hold cash when values are difficult to identify. 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 Deep Value Composite

The Ariel Small Cap Deep Value Composite includes all discretionary, fee-paying, commission-paying, non-wrap small cap deep value portfolios that are invested in the small cap deep value strategy, excluding pooled funds. 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 equity securities of U.S. companies that, at the time of initial purchase by Ariel for the strategy, have market capitalizations under $2 billion. The strategy may hold cash when values are difficult to identify. The benchmark for this composite is the Russell 2000® 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 equity securities of U.S. companies. This strategy generally will seek to initiate a position in companies with market capitalizations between $200 million and $2 billion. The market capitalizations for the companies may dramatically change over time and thus have a material effect on the portfolio’s overall market capitalization. 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 equity securities 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 2500TM 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 equity securities 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 primarily in equity securities of companies of any size in order to provide investors access to superior opportunities in companies of all market capitalizations. 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 equity securities of U.S. companies. This strategy generally will seek to initiate a position in companies with market capitalizations between $200 million and $2 billion. The market capitalizations for the companies may dramatically change over time and thus have a material effect on the portfolio’s overall market capitalization. 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 equity securities 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 2500TM 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 equity securities 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 equity securities of U.S. companies. This strategy generally will seek to initiate a position in companies with market capitalizations between $200 million and $2 billion. The market capitalizations for the companies may dramatically change over time and thus have a material effect on the portfolio’s overall market capitalization. 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 equity securities of U.S. companies that, at the time of initial purchase by Ariel for the strategy, have market capitalizations under $2 billion. The strategy may hold cash when values are difficult to identify. 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 equity securities 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 within the top two quintiles, it will be sold by the end of the following quarter. The benchmark for this composite is the Russell 2500TM 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 that show strong potential for growth. The strategy invests primarily in equity securities 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. If such stock falls within the top quintile, it will be sold by the end of the following quarter. 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 primarily in equity securities of companies of any size in order to provide investors access to the best opportunities in companies of all market capitalizations. 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 equity securities 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 hold cash when values are difficult to identify. 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 Cap Value Composite

The Ariel Non-Wrap/Zero Commission Small Cap Value Composite includes all 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 that show strong potential for growth. The portfolio invests primarily in equity securities of U.S. companies. This strategy generally will seek to initiate a position in companies with market capitalizations between $200 million and $2 billion. The market capitalizations for the companies may dramatically change over time and thus have a material effect on the portfolio’s overall market capitalization. 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 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 equity securities 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 stock 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 2500TM 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 equity securities 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 (DM) Composite

TThe Ariel International (DM) Composite includes all discretionary, fee-paying, commission-paying, non-wrap portfolios that are invested in the international (DM) strategy, excluding pooled funds. The Ariel International (DM) Composite may contain accounts with performance based fees. This strategy seeks long-term capital appreciation by investing primarily in equity securities of foreign issuers in developed international market countries. Equity investments in foreign securities may be in various forms, such as common stocks, preferred stocks, warrants, rights, convertible securities purchased on recognized foreign exchanges and developed over-the-counter markets, or in the form of depositary receipts such as American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), 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. The strategy may include the holding of cash or cash equivalents for defensive purposes. Cash equivalents are negotiable instruments, such as commercial paper, treasury bills, short-term government bonds, payable by third parties. Third parties may include foreign banks and foreign governments. The benchmark for this composite is the MSCI EAFE® Index.


Ariel International (DM/EM) Composite

The Ariel International (DM/EM) Composite includes all discretionary, fee-paying, commission-paying, non-wrap portfolios that are invested in the international (DM/EM) strategy, excluding pooled funds. This strategy seeks long-term capital appreciation by investing primarily in equity securities of foreign issuers in developed or emerging market countries. Equity investments in foreign securities may be in various forms, such as common stocks, preferred stocks, warrants, rights, convertible securities purchased on recognized foreign exchanges and developed over-the-counter markets, or in the form of depositary receipts such as American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), 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. The strategy may include the holding of cash or cash equivalents for defensive purposes. Cash equivalents are negotiable instruments, such as commercial paper, treasury bills, short-term government bonds, payable by third parties. Third parties may include foreign banks and foreign governments. 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 (DM) strategy. This strategy seeks long-term capital appreciation by investing primarily in equity securities of foreign issuers in developed international markets. Equity investments in foreign securities may be made in various forms, such as common stocks, preferred stocks, warrants, rights, convertible securities purchased on recognized foreign exchanges and developed over-the-counter markets, or in the form of depositary receipts such as American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), 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 investment purposes by seeking 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 or cash equivalents for defensive purposes. The benchmark for this composite is the MSCI EAFE® Index.


Ariel Global Composite

The Ariel Global Composite includes all discretionary, fee-paying, commission-paying, non-wrap portfolios that are invested in the global strategy, excluding pooled funds. This strategy seeks long-term capital appreciation by investing primarily in equity securities of both domestic issuers and foreign issuers, including foreign issuers in developed or emerging market countries. Equity investments in foreign securities may be made in various forms, such as common stocks, preferred stocks, warrants, rights, convertible securities purchased on recognized foreign exchanges and developed over-the-counter markets, or in the form of depositary receipts such as American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), 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. The strategy may include the holding of cash or cash equivalents for defensive purposes. Cash equivalents are negotiable instruments, such as commercial paper, treasury bills, short-term government bonds, payable by third parties. Third parties may include foreign banks and foreign governments. The benchmark for this composite is the MSCI ACWI (All Country World Index) IndexSM.


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 equity securities of both domestic issuers and foreign issuers, including foreign issuers in countries with developed or emerging markets. Equity investments in foreign securities may be made in various forms, such as common stocks, preferred stocks, warrants, rights, convertible securities purchased on recognized foreign exchanges and developed over-the-counter markets, or in the form of depositary receipts such as American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), 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 investment purposes by seeking 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 or cash equivalents for defensive purposes. The benchmark for this composite is the MSCI ACWI (All Country World Index) IndexSM.


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 equity securities of 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. The strategy may include the holding of cash or cash equivalents for defensive purposes. Cash equivalents are negotiable instruments, such as commercial paper, treasury bills, short-term government bonds, payable by third parties. Third parties may include foreign banks and foreign governments. The benchmark for this composite is the S&P 500® Index.

 

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.