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Intrinsic Value 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
Investment style:
Global all cap, intrinsic value
Market Cap: All cap
Inception:
Investor Class: 12/30/2011
Institutional Class: 12/30/2011
Number of companies: 50-150
Turnover: typically 30-80%
Ticker Symbol:
Investor Class: AGLOX
Institutional Class: AGLYX
Fund Assets (all classes):
$121.8 million as of 3/31/2019
 
Portfolio Manager
Bhansali_Rupal_Web.png Rupal J. Bhansali
Portfolio Manager
 
Fund Spotlight
Rupal J. Bhansali explains her unique approach to managing potential risks as well as returns.
 

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
  • Team members with 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:
    Team 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, industry weights at the higher of 25% or 1.5x the benchmark, hedge currency if practical and cost-efficient
  • Benefit:
    Designed to generate superior long-term, risk-adjusted performance


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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 March 31, 2019
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year
To Date
One
Year
Three
Years
Five
Years
Since
Inception
Ariel Global Fund 1.12% 9.07% 9.07% 2.23% 6.80% 5.16% 8.25%
MSCI ACWI Index 1.26% 12.18% 12.18% 2.60% 10.67% 6.45% 9.81%

Ariel Global Fund

Investor Class | AGLOX

Performance

As of March 31, 2019
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year
To Date
One
Year
Three
Years
Five
Years
Since
Inception
Ariel Global Fund 1.12% 9.07% 9.07% 2.23% 6.80% 5.16% 8.25%
MSCI ACWI Index 1.26% 12.18% 12.18% 2.60% 10.67% 6.45% 9.81%
Expense Ratio Cap: 1.13%*
Gross Expense Ratio as of the fiscal year ended 9/30/18: 1.46%*

*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, 2020. 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 Distributors, LLC is a member of the Securities Investor Protection Corporation.



Ariel Global Fund

Sector Weightings (%)

As of March 31, 2019
  Ariel Global Fund MSCI ACWI
Health Care 23.72 11.66
Communication Services 22.42 8.75
Information Technology 15.23 15.67
Consumer Staples 9.97 8.37
Financials 9.12 16.60
Energy 7.65 6.27
Consumer Discretionary 6.29 10.76
Utilities 2.69 3.29
Industrials 2.48 10.45
Real Estate 0.43 3.30
Materials 0.00 4.88

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 March 31, 2019
  Units Security Description Market Value % of Total Value
CANADA     720,217 0.6
  14,959 IGM Financial, Inc. 384,847 0.3
  10,348 Suncor Energy, Inc. 335,370 0.3
CHILE     103,322 0.1
  3,473 Banco Santander-Chile ADR 103,322 0.1
CHINA     12,309,127 10.1
  521,500 China Mobile Ltd. 5,314,684 4.4
  28,752 Baidu, Inc. ADR 4,739,767 3.9
  44,218 China Mobile Ltd. ADR 2,254,676 1.8
FINLAND     2,864,582 2.4
  500,801 Nokia Corp. ADR 2,864,582 2.4
FRANCE     4,681,352 3.8
  34,360 Michelin (CGDE) 4,062,467 3.3
  4,513 Safran SA 618,885 0.5
GERMANY     4,401,455 3.6
  27,811 Deutsche Boerse AG 3,565,816 2.9
  266,146 Telefonica Deutschland Holding 835,639 0.7
HONG KONG     112,082 0.1
  624,000 Li & Fung Ltd. 112,082 0.1
ITALY     629,647 0.5
  122,583 Snam SpA 629,647 0.5
JAPAN     12,893,060 10.6
  11,050 Nintendo Co., Ltd. 3,146,603 2.6
  128,100 NTT DOCOMO, Inc. 2,833,503 2.3
  52,300 Nippon Telegraph & Telephone Corp. 2,219,317 1.8
  81,800 Japan Tobacco, Inc. 2,025,995 1.7
  77,700 Subaru Corp. 1,768,458 1.5
  3,500 Daito Trust Construction Co., Ltd. 487,278 0.4
  2,700 Secom Co., Ltd. 230,997 0.2
  4,700 Bridgestone Corp. 180,909 0.1
MEXICO     585,824 0.5
  139,586 Wal-Mart de Mexico SAB de CV 373,375 0.3
  31,381 Banco Santander-Mexico SA ADR 212,449 0.2
NETHERLANDS     1,086,311 0.9
  40,818 Koninklijke Ahold Delhaize N.V. 1,086,311 0.9
SPAIN     1,389,479 1.1
  54,471 Endesa SA 1,389,479 1.1
SWITZERLAND     8,760,415 7.2
  28,287 Roche Holding AG 7,793,662 6.4
  1,741 Swisscom AG 851,486 0.7
  539 Kuehne & Nagel Intl, AG 73,942 0.1
  1,532 ams AG 41,325 0.0
THAILAND     662,174 0.5
  83,800 Kasikornbank PCL 495,116 0.4
  28,200 Kasikornbank PCL 167,058 0.1
UNITED KINGDOM     8,227,086 6.7
  235,230 GlaxoSmithKline plc 4,892,202 4.0
  53,298 GlaxoSmithKline plc ADR 2,227,323 1.8
  67,184 National Grid plc 744,482 0.6
  4,368 Reckitt Benckiser Group plc 363,079 0.3
UNITED STATES     54,098,301 44.5
  100,765 Microsoft Corp. 11,884,224 9.8
  97,302 Gilead Sciences, Inc. 6,325,603 5.2
  70,154 Philip Morris Intl, Inc. 6,200,912 5.1
  32,864 Johnson & Johnson 4,594,059 3.8
  21,472 Berkshire Hathaway, Inc., Class B 4,313,510 3.5
  55,123 Verizon Communications, Inc. 3,259,423 2.7
  71,664 Schlumberger Ltd. 3,122,400 2.6
  32,335 Amdocs Ltd. 1,749,647 1.4
  10,217 Pioneer Natural Resources Co. 1,555,845 1.3
  40,132 Fluor Corp. 1,476,858 1.2
  13,660 EOG Resources, Inc. 1,300,159 1.1
  5,237 Costco Wholesale Corp. 1,268,087 1.0
  18,124 Occidental Petroleum Corp. 1,199,809 1.0
  12,202 Quest Diagnostics, Inc. 1,097,204 0.9
  17,692 Southern Co. 914,323 0.8
  25,009 Tapestry, Inc. 812,542 0.7
  14,880 U.S. Bancorp 717,067 0.6
  11,271 QUALCOMM, Inc. 642,785 0.5
  7,851 Core Laboratories N.V. 541,169 0.4
  5,215 Intercontinental Exchange, Inc. 397,070 0.3
  108,080 Acacia Research Corp. 352,341 0.3
  3,317 Foot Locker, Inc. 201,010 0.2
  1,962 Acacia Communications, Inc. 112,521 0.1
  787 Expeditors International of Washington, Inc. 59,733 0.0
Total Equities     113,524,434 93.2
Short Term Investments      
  4,925,038 Northern Institutional Treasury Portfolio 4,925,038 4.0
Foreign Currency and Other Assets less Liabilities 3,398,762 2.8
Grand Total     121,848,234 100.0%



Ariel Global Fund

Fund Materials

 
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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Ariel Distributors, LLC is a member of the Securities Investor Protection Corporation