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):
$77.6 million as of 6/30/2016
 
Portfolio Manager
Bhansali_Rupal_Web.png Rupal J. Bhansali
Portfolio Manager
 
Fund Spotlight
Rupal Bhansali shares stock picks, where she finds value in China, and why currency volatility should be a priority for you.
 

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

Investor Class
Institutional Class
Quarter End
Month End

Ariel Global Fund (Investor Class)Performance

As of June 30, 2016
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year
To Date
One
Year
Three
Years
Since
Inception
Ariel Global Fund -0.36% -0.29% 2.12% -0.55% 6.92% 8.68%
MSCI AC World Index -0.61% 0.99% 1.23% -3.73% 6.03% 8.90%

Ariel Global Fund (Investor Class)Performance

As of June 30, 2016
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year
To Date
One
Year
Three
Years
Since
Inception
Ariel Global Fund -0.36% -0.29% 2.12% -0.55% 6.92% 8.68%
MSCI AC World Index -0.61% 0.99% 1.23% -3.73% 6.03% 8.90%
Expense Cap as of 2/1/14: 1.25%*
Net Expense Ratio as of the fiscal year ended 9/30/15: 1.25%*
Gross Expense Ratio as of the fiscal year ended 9/30/15: 2.71%*

*Effective February 1, 2014, 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 1.25% of net assets for the Investor Class through the end of the fiscal year ending September 30, 2017. The Expense Cap prior to February 1, 2014 was 1.40% for the Investor Class.

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, 2016
  Ariel Global Fund MSCI ACWI
Health Care 25.31 12.40
Information Technology 22.09 14.84
Telecommunication Services 12.95 4.03
Consumer Discretionary 12.46 12.26
Financials 12.09 19.71
Consumer Staples 5.16 10.98
Utilities 4.41 3.63
Energy 3.02 7.02
Industrials 2.20 10.22
Materials 0.29 4.91

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, 2016
  Units Security Description Market Value % of Total Value
BRAZIL     170,080 0.2
  18,017 Itau Unibanco Holding SA ADR 170,080 0.2
CANADA     549,994 0.6
  11,745 IGM Financial Inc. 319,727 0.4
  2,845 Rogers Communications Inc. 115,170 0.1
  4,149 Suncor Energy, Inc. 115,097 0.1
CHILE     786,887 1.0
  40,624 Banco Santander-Chile ADR 786,887 1.0
CHINA     7,881,608 10.1
  23,368 Baidu, Inc. ADR 3,859,225 5.0
  174,500 China Mobile Ltd. 1,996,220 2.5
  33,705 China Mobile Ltd. ADR 1,951,521 2.5
  124,000 Lenovo Group Ltd. 74,642 0.1
FINLAND     2,525,495 3.3
  409,006 Nokia Corp. ADR 2,327,244 3.0
  34,994 Nokia Corp. 198,251 0.3
FRANCE     2,191,760 2.8
  18,534 Michelin (CGDE) 1,752,608 2.2
  9,954 BNP Paribas SA 439,152 0.6
GERMANY     5,177,672 6.7
  31,631 Deutsche Boerse AG 2,581,438 3.3
  46,385 Dialog Semiconductor plc 1,380,065 1.8
  257,497 Telefonica Deutschland Holding 1,055,302 1.4
  886 Beiersdorf AG 83,467 0.1
  522 BASF SE 39,762 0.1
  505 SAP SE 37,638 0.0
HONG KONG     218,481 0.3
  452,000 Li & Fung Ltd. 218,481 0.3
ISRAEL     118,769 0.2
  33,879 Bank Leumi Le-Israel BM 118,769 0.2
ITALY     81,461 0.1
  13,695 Snam SpA 81,461 0.1
JAPAN     4,076,138 5.3
  5,650 Nintendo Co., Ltd. 797,998 1.0
  4,800 Daito Trust Construction Co., Ltd. 773,466 1.0
  4,700 Shimamura Co., Ltd. 690,902 0.9
  46,300 Nikon Corp. 621,428 0.8
  9,500 Toyota Motor Corp. 464,765 0.6
  8,800 Canon Inc. 248,196 0.3
  2,059 Toyota Motor Corp. ADR 205,879 0.3
  3,100 Japan Tobacco Inc. 123,171 0.2
  600 Murata Manufacturing Co., Ltd. 66,121 0.1
  10,600 Anritsu Corp. 60,460 0.1
  2,100 Japan Exchange Group, Inc. 23,752 0.0
LUXEMBOURG     82,165 0.1
  2,849 Tenaris ADR 82,165 0.1
MEXICO     115,607 0.1
  12,718 Santander Mexico Financial Group ADR 115,607 0.1
NETHERLANDS     2,039,391 2.7
  55,332 Ahold N.V. 1,221,953 1.6
  13,444 Gemalto N.V. 817,438 1.1
SINGAPORE     206,475 0.3
  15,100 United Overseas Bank Ltd. 206,475 0.3
SPAIN     1,159,602 1.5
  52,049 Endesa SA 1,041,438 1.3
  3,979 Tecnicas Reunidas SA 118,164 0.2
SWEDEN     46,499 0.1
  1,596 H&M Hennes & Mauritz AB 46,499 0.1
SWITZERLAND     5,420,014 7.0
  15,370 Roche Holding AG 4,030,985 5.2
  2,810 Swisscom AG 1,389,029 1.8
THAILAND     88,361 0.1
  18,000 Kasikornbank PCL 88,361 0.1
UNITED KINGDOM     5,660,497 7.4
  61,450 GlaxoSmithKline plc ADR 2,663,243 3.4
  79,279 GlaxoSmithKline plc 1,693,392 2.2
  8,223 Reckitt Benckiser Group plc 819,921 1.1
  7,199 Diageo plc 199,963 0.3
  36,271 British Telecom Group plc 197,972 0.3
  1,334 British American Tobacco plc 86,006 0.1
UNITED STATES     31,039,754 39.9
  88,544 Microsoft Corp. 4,530,797 5.8
  52,714 Gilead Sciences, Inc. 4,397,402 5.6
  28,819 Johnson & Johnson 3,495,745 4.5
  37,042 Harman Intl Industries, Inc. 2,660,356 3.4
  41,444 Verizon Communications Inc. 2,314,233 3.0
  36,300 Southern Co. 1,946,769 2.5
  66,691 Tumi Holdings Inc. 1,783,317 2.3
  23,010 American Express Co. 1,398,088 1.8
  16,034 Quest Diagnostics Inc. 1,305,328 1.7
  8,367 Philip Morris Intl, Inc. 851,091 1.1
  9,282 Rockwell Collins, Inc. 790,270 1.0
  5,297 Core Laboratories N.V. 656,245 0.8
  8,188 Schlumberger Ltd. 647,507 0.8
  15,316 U.S. Bancorp 617,694 0.8
  6,446 Ansys, Inc. 584,976 0.8
  132,559 Acacia Research Corp. 583,260 0.8
  3,865 Berkshire Hathaway Inc. 559,613 0.7
  3,599 EOG Resources Inc. 300,229 0.4
  19,216 QLogic Corp. 283,244 0.4
  5,783 Coach, Inc. 235,599 0.3
  1,337 Costco Wholesale Corp. 209,962 0.3
  1,466 Praxair, Inc. 164,764 0.2
  1,809 Occidental Petroleum Corp. 136,688 0.2
  1,170 The PNC Financial Service Group, Inc. 95,226 0.1
  2,869 EMC Corp. 77,951 0.1
  1,487 Fastenal Co. 66,008 0.1
  254 W.W. Grainger Inc. 57,722 0.1
  714 AFLAC Inc. 51,522 0.1
  318 Pioneer Natural Resources Co. 48,085 0.1
  612 Cullen/Frost Bankers, Inc. 39,003 0.1
  462 Varian Medical Systems Inc. 37,990 0.0
  334 Accenture plc 37,839 0.0
  147 IntercontinentalExchange, Inc. 37,626 0.0
  431 Union Pacific 37,605 0.0
Total Equities     69,636,710 89.8
Cash, Other Assets less Liabilities     7,926,601 10.2
Grand Total     77,563,311 100.0

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. 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. 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 investors outside the United States.

Check the background of this firm on FINRA's BrokerCheck