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Global Strategy
Ariel Global Fund

Why Ariel’s global approach


Experience matters

  • Rupal J. Bhansali has more than 25 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
Inception:
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):
$96.6 million as of 6/30/2017
 
Portfolio Manager
Bhansali_Rupal_Web.png Rupal J. Bhansali
Portfolio Manager
 
Fund Spotlight
Meet Rupal J. Bhansali and hear her philosophy on global investing.
 

Our global investment philosophy


Patience

We take the long-term view.
  • Emphasis on 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

Independence

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

Expertise

We specialize in bottom-up fundamental research.
  • Focus on connecting information versus collecting information
  • Take business analyst approach rather than financial analyst approach
  • Have extensive interactions with management teams around the world
  • Research a company's global peers to fully inform our competitive assessment

Teamwork

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


 
RB-Int-Global-Investing1.png
Rupal Bhansali on International and Global Investing I
 
RB-Int-Global-Investing2.png
Rupal Bhansali on International and Global Investing II

Our global process


Negative Screening

Negative screening seeks downside protection
  • Process:
    Screen on risk, not growth rate or valuation
  • Risk management:
    Eliminate approximately 60% of high-risk stocks in universe
  • Benefit:
    Position for 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:
    Incorporate macro and micro factors in scenario analyses; lead analyst presents balanced case versus a recommendation
  • 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:
    Typically cap security position size at 5% at time of purchase, sector weights at the higher of 25% or 1.5x benchmark, hedge currency if practical and cost-efficient
  • Benefit:
    Designed to generate superior long-term, risk-adjusted performance


You may also be interested in
Ariel Investments Director of Research for International & Global Equities Chaim Schneider discusses the research process for the Ariel Global Strategy.
Portfolio Manager Rupal Bhansali shares her unique approach to managing risk.
 
Investor Class
Institutional Class
Quarter End
Month End

Ariel Global Fund

Investor Class | AGLOX

Performance

As of July 31, 2017
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year
To Date
One
Year
Three
Years
Five
Years
Since
Inception
Ariel Global Fund 2.54% 5.28% 12.25% 11.59% 5.52% 11.89% 9.77%
MSCI AC World Index 2.79% 5.54% 14.59% 17.06% 6.22% 10.85% 11.01%

Ariel Global Fund

Investor Class | AGLOX

Performance

As of June 30, 2017
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year
To Date
One
Year
Three
Years
Five
Years
Since
Inception
Ariel Global Fund -0.52% 3.50% 9.47% 12.88% 4.37% 11.38% 9.43%
MSCI AC World Index 0.45% 4.27% 11.48% 18.78% 4.82% 10.54% 10.64%
Expense Ratio Cap: 1.13%*
Gross Expense Ratio as of the fiscal year ended 9/30/16: 1.70%*

*Effective November 29, 2016, 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 1.13% of net assets for the Investor Class through the end of the fiscal year ending September 30, 2018. The Expense Cap has been lowered over time. Contact us for historical information about the Expense Cap.

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 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) Index is an unmanaged, market weighted index of global developed and emerging markets. The MSCI ACWI Index net returns reflect the reinvestment of income and other earnings, including the dividends net of the maximum withholding tax applicable to non-resident institutional investors that do not benefit from double taxation treaties. MSCI uses the maximum tax rate applicable to institutional investors, as determined by the companies' country of incorporation. 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, 2017
  Ariel Global Fund MSCI ACWI
Health Care 23.06 11.42
Information Technology 22.21 16.84
Telecommunication Services 14.48 3.23
Financials 13.62 18.64
Consumer Staples 8.49 9.35
Consumer Discretionary 5.02 12.12
Utilities 4.39 3.13
Energy 4.11 6.10
Industrials 3.84 10.87
Real Estate 0.78 3.15
Materials 0.00 5.15

Represents percentage of total equity holdings in the portfolio

MSCI ACWI (All Country World Index) Index 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, 2017
  Units Security Description Market Value % of Total Value
AUSTRALIA     96,989 0.1
  24,314 AMP Ltd. 96,989 0.1
CANADA     780,955 0.8
  13,113 IGM Financial, Inc. 406,697 0.4
  7,877 Suncor Energy, Inc. 230,151 0.2
  2,092 Magna International, Inc. 96,905 0.1
  2,635 Hydro One Ltd. 47,202 0.1
CHILE     494,733 0.5
  19,470 Banco Santander-Chile ADR 494,733 0.5
CHINA     9,748,837 10.0
  27,616 Baidu, Inc. ADR 4,939,398 5.1
  232,000 China Mobile Ltd. 2,461,905 2.5
  44,218 China Mobile Ltd. ADR 2,347,534 2.4
DENMARK     398,436 0.4
  9,304 Novo Nordisk A/S 398,436 0.4
FINLAND     4,418,878 4.6
  682,605 Nokia Corp. ADR 4,204,847 4.4
  34,994 Nokia Corp. 214,031 0.2
FRANCE     4,120,550 4.2
  22,729 Michelin (CGDE) 3,021,735 3.1
  10,847 Safran SA 994,085 1.0
  973 Thales SA 104,730 0.1
GERMANY     4,858,979 5.0
  31,552 Deutsche Boerse AG 3,330,550 3.4
  257,497 Telefonica Deutschland Holding 1,286,100 1.3
  5,676 Dialog Semiconductor plc 242,329 0.3
HONG KONG     176,785 0.2
  486,000 Li & Fung Ltd. 176,785 0.2
ITALY     1,014,315 1.1
  232,724 Snam SpA 1,014,315 1.1
JAPAN     7,520,073 7.7
  89,500 NTT DOCOMO, Inc. 2,110,282 2.2
  33,300 Nippon Telegraph & Telephone Corp. 1,572,109 1.6
  4,250 Nintendo Co., Ltd. 1,423,783 1.5
  4,500 Daito Trust Construction Co., Ltd. 699,955 0.7
  16,100 Japan Tobacco, Inc. 564,985 0.6
  2,100 Murata Manufacturing Co., Ltd. 318,711 0.3
  4,100 Toyota Motor Corp. 214,815 0.2
  2,800 Secom Co., Ltd. 212,225 0.2
  1,700 Shimamura Co., Ltd. 207,975 0.2
  5,800 Subaru Corp. 195,233 0.2
MEXICO     406,833 0.4
  122,441 Wal-Mart de Mexico SAB de CV 284,231 0.3
  12,718 Santander Mexico Financial Group ADR 122,602 0.1
NETHERLANDS     3,155,167 3.2
  97,549 Koninklijke Ahold Delhaize N.V. 1,865,097 1.9
  21,494 Gemalto N.V. 1,290,070 1.3
SINGAPORE     285,484 0.3
  17,000 United Overseas Bank Ltd. 285,484 0.3
SOUTH KOREA     59,047 0.1
  1,821 LG Display Co., Ltd. 59,047 0.1
SPAIN     910,728 0.9
  39,533 Endesa SA 910,728 0.9
SWITZERLAND     7,396,722 7.7
  19,731 Roche Holding AG 5,024,831 5.2
  4,151 Swisscom AG 2,002,991 2.1
  109 SGS SA 263,946 0.3
  1,206 Nestle SA 104,954 0.1
THAILAND     573,767 0.6
  80,100 Kasikornbank PCL 468,056 0.5
  18,000 Kasikornbank PCL 105,711 0.1
UNITED KINGDOM     6,138,016 6.3
  61,450 GlaxoSmithKline plc ADR 2,649,724 2.7
  112,081 GlaxoSmithKline plc 2,387,501 2.5
  49,697 National Grid plc 616,080 0.6
  4,781 Reckitt Benckiser Group plc 484,711 0.5
UNITED STATES     37,141,242 38.8
  99,129 Microsoft Corp. 6,832,962 7.1
  75,092 Gilead Sciences, Inc. 5,315,012 5.5
  32,183 Johnson & Johnson 4,257,489 4.4
  26,192 Philip Morris Intl, Inc. 3,076,250 3.2
  18,018 Berkshire Hathaway, Inc., Class B 3,051,709 3.2
  27,573 American Express Co. 2,322,749 2.4
  28,453 Southern Co. 1,362,330 1.4
  26,514 Fluor Corp. 1,213,811 1.3
  27,019 Verizon Communications, Inc. 1,206,669 1.3
  7,426 Costco Wholesale Corp. 1,187,640 1.2
  8,910 Sempra Energy 1,004,603 1.0
  10,499 Schlumberger Ltd. 691,254 0.7
  6,811 Core Laboratories N.V. 689,750 0.7
  13,109 U.S. Bancorp 680,619 0.7
  11,038 Occidental Petroleum Corp. 660,845 0.7
  5,886 Quest Diagnostics, Inc. 654,288 0.7
  133,951 Acacia Research Corp. 549,199 0.6
  4,462 EOG Resources, Inc. 403,900 0.4
  5,460 Discover Financial Services 339,557 0.4
  2,616 CME Group, Inc. 327,628 0.3
  6,818 Coach, Inc. 322,764 0.3
  2,924 Tractor Supply Co. 158,510 0.2
  17,535 Pandora Media, Inc. 156,412 0.2
  1,168 Accenture plc, Class A 144,458 0.2
  1,205 InterDigital, Inc. 93,146 0.1
  265 Acuity Brands, Inc. 53,869 0.1
  791 IntercontinentalExchange, Inc. 52,143 0.1
  948 Church & Dwight Co., Inc. 49,182 0.1
  853 Expeditors International of Washington, Inc. 48,177 0.1
  785 FactSet Research Systems, Inc. 130,451 0.1
  2,719 TripAdvisor, Inc. 103,866 0.1
Total Equities     89,696,536 92.9
Short Term Investments      
  4,972,719 Northern Institutional Treasury Portfolio 4,972,719 5.1
Foreign Currency and Other Assets less Liabilities 1,971,242 2.0
Grand Total     96,640,497 100.0%



Ariel Global Fund

Commentary

 
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. This website and all of its content is for informational and educational purposes only and should not be considered to be investment advice or a recommendation to buy or sell any particular security. The mutual funds offered by Ariel Investment Trust are distributed by Ariel Distributors, LLC, a wholly-owned subsidiary of Ariel Investments, LLC. Use of this website is subject to our Terms & Conditions. The Ariel mutual funds 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 ineligible investors, investors for whom such products, funds or services are not suitable, or investors outside the United States.

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