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Ariel Global

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

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.

Market Cap Range: All Cap
Inception: December 31, 2011
Number of companies: 50-150
Turnover: 30-80%
Net Assets: $887.0 million as of 06/30/2014
Portfolio Manager
Bhansali_Rupal_Web.png Rupal J. Bhansali
Portfolio Manager
Ariel Global

Schedule of Holdings

As of June 30, 2014
  Units Security Description Market Value % of Total Value
BRAZIL     1,280,039 0.6
  32,543 Telefonica Brasil SA ADR 667,457 0.3
  59,297 Souza Cruz SA 612,582 0.3
CANADA     1,662,229 0.7
  28,189 Canadian Oil Sands Ltd. 640,172 0.3
  1,135 Fairfax Financial Holdings Ltd. 539,629 0.2
  8,800 Tim Hortons Inc. 482,428 0.2
CHINA     3,770,761 1.6
  17,883 Baidu, Inc. ADR 3,340,723 1.5
  13,652 Mindray Medical Intl Ltd. 430,038 0.1
FINLAND     3,199,660 1.4
  422,494 Nokia Corp. 3,199,660 1.4
FRANCE     8,901,845 4.0
  100,809 Eutelsat Communications 3,503,189 1.6
  30,932 Technip SA 3,384,220 1.5
  29,689 BNP Paribas SA 2,014,436 0.9
GERMANY     10,829,489 4.9
  93,756 Deutsche Boerse AG 7,277,582 3.3
  52,969 Dialog Semiconductor plc 1,837,086 0.8
  207,346 Telefonica Deutschland GmbH & Co. 1,714,821 0.8
HONG KONG     10,068,163 4.5
  893,000 China Mobile Ltd. 8,665,160 3.9
  419,000 Yue Yuen Industrial 1,403,003 0.6
IRELAND     981,918 0.4
  13,600 Ryanair Holdings plc ADR 758,880 0.3
  2,759 Accenture plc 223,038 0.1
ITALY     3,659,432 1.6
  548,833 Snam SpA 3,307,128 1.5
  72,262 Mediaset SpA 352,304 0.1
JAPAN     21,050,548 9.5
  39,000 Shimamura Co., Ltd. 3,834,551 1.7
  28,000 Daito Trust Construction Co., Ltd. 3,292,004 1.5
  99,900 Canon Inc. 3,250,448 1.5
  24,800 Nintendo Co., Ltd. 2,968,411 1.3
  40,400 Toyota Motor Corp. 2,426,393 1.1
  59,200 Japan Tobacco Inc. 2,158,199 1.0
  30,300 Tokyo Electron Ltd. 2,048,316 0.9
  12,700 Denso Corp. 606,165 0.3
  29,600 Nikon Corp. 466,061 0.2
NETHERLANDS     12,390,378 5.6
  382,618 Ahold N.V. 7,183,912 3.2
  111,915 Royal Dutch Shell plc 4,629,942 2.1
  3,451 Core Laboratories NV 576,524 0.3
SINGAPORE     361,451 0.1
  20,000 United Overseas Bank Ltd. 361,451 0.1
SPAIN     2,128,273 1.0
  34,401 Tecnicas Reunidas SA 2,128,273 1.0
SWITZERLAND     18,521,573 8.3
  34,696 Roche Holding AG 10,350,532 4.6
  11,843 Zurich Insurance Group Ltd 3,570,411 1.6
  4,231 Swisscom AG 2,459,967 1.1
  16,063 Nestle SA 1,244,632 0.6
  48,829 UBS AG 896,031 0.4
TURKEY     1,100,919 0.5
  24,949 BIM Birlesik Magazalar A.S. 572,079 0.3
  33,900 Turkcell Iletisim Hizmetleri AS ADR 528,840 0.2
UNITED KINGDOM     18,150,707 8.1
  320,920 GlaxoSmithKline plc 8,585,680 3.8
  1,013,088 Tesco plc 4,925,070 2.2
  321,140 HSBC Holdings plc 3,256,995 1.5
  107,942 British Telecom Group plc 710,689 0.3
  17,856 Croda Intl plc 672,273 0.3
UNITED STATES     98,952,926 44.2
  157,358 Gilead Sciences, Inc. 13,046,552 5.8
  284,900 Microsoft Corp. 11,880,330 5.3
  109,300 Johnson & Johnson 11,434,966 5.1
  77,400 Harman Intl Industries, Inc. 8,315,082 3.7
  270,046 Tumi Holdings Inc. 5,436,026 2.4
  301,860 Acacia Research Corp. 5,358,015 2.4
  90,480 Quest Diagnostics Inc. 5,310,271 2.4
  107,950 Broadcom Corp. 4,007,104 1.8
  47,839 Wal-Mart Stores, Inc. 3,591,274 1.6
  81,000 U.S. Bancorp 3,508,920 1.6
  20,636 Praxair, Inc. 2,741,286 1.2
  78,246 Coach, Inc. 2,675,231 1.2
  220,193 Ruckus Wireless, Inc. 2,622,499 1.2
  28,100 Philip Morris Intl, Inc. 2,369,111 1.1
  35,783 Vanguard Total Wld Stock Index Fd (ET 2,226,776 1.0
  215,536 QLogic Corp. 2,174,758 1.0
  116,135 NVIDIA Corp. 2,153,143 1.0
  18,200 The PNC Financial Service Group, Inc. 1,620,710 0.7
  11,500 Berkshire Hathaway Inc. 1,455,440 0.7
  50,329 EMC Corp. 1,325,666 0.6
  24,276 Expeditors Intl of Washington 1,072,028 0.5
  7,036 Panera Bread Co. 1,054,204 0.5
  17,011 Southern Co. 771,959 0.3
  10,203 C.H. Robinson Worldwide, Inc. 650,849 0.3
  10,042 Wisconsin Energy Corp. 471,171 0.2
  5,857 Ansys, Inc. 444,078 0.1
  4,244 National Oilwell Varco 349,493 0.1
  3,345 State Street Corp. 224,985 0.1
  1,800 M&T Bank Corp. 223,290 0.1
  3,840 JPMorgan Chase & Co. 221,261 0.1
  2,770 Rockwell Collins, Inc. 216,448 0.1
Total Equities     217,010,311 97.0
Forward Position Long     283,589 0.1
Cash Balance     6,538,263 2.9
Grand Total     223,832,163 100.0

Ariel Global


Monthly Commentary: Perspectives on the current market
Quarterly Commentary: Quarterly performance update and communication to investors
Turtle Thoughts: A compilation of our portfolio manager letters
Fact Sheets: Quarterly product overview
Ariel Global (Representative Portfolio)

Sector Weightings (%)

As of June 30, 2014
  Ariel Global MSCI ACWI
Health Care 22.69 10.63
Information Technology 19.31 12.79
Consumer Discretionary 14.23 11.39
Financials 13.25 21.33
Consumer Staples 10.55 9.57
Telecommunication Services 6.87 3.85
Energy 5.45 10.18
Industrials 3.75 10.66
Utilities 2.12 3.37
Materials 1.59 6.04
Unclassified 0.20 0.17

Represents percentage of total equity holdings in the representative 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.

Quarter End
Month End
Ariel Global Composite


As of August 31, 2014
Inception date: December 31, 2011 Annualized
Year To
Gross of Fees 3.35% 5.00% 10.95% 21.61% 18.80%
Net of Fees 3.28% 4.80% 10.36% 20.56% 17.68%
MSCI AC World Index 2.25% 2.99% 7.61% 21.61% 17.91%
Ariel Global Composite


As of June 30, 2014
Inception date: December 31, 2011 Annualized
Year To
Gross of Fees 2.04% 4.67% 7.82% 22.58% 18.80%
Net of Fees 1.97% 4.47% 7.39% 21.49% 17.67%
MSCI AC World Index 1.93% 5.23% 6.50% 23.58% 18.72%

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 Global 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. The Ariel Global Composite differs from its benchmark, the MSCI ACWI (All Country World Index) IndexSM, with fewer holdings. Index returns reflect the reinvestment of income and other earnings. Indexes are unmanaged, and investors cannot invest directly in an index. 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) or 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 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 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.

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. Effective 1/1/14 the maximum fee is 0.80% per annum. Fees for prior periods are available upon request. 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. Results shown may be preliminary. Returns are calculated in U.S. dollars. The Ariel Global Composite has been examined for the period from January 1, 2012 through December 31, 2013. 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. 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 portfolio invests may never be recognized by the broader market. Click here to obtain a complete list of composite descriptions or a presentation that adheres to the GIPS standards.

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.

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

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.