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Intrinsic Value Global Strategy
Ariel Global Fund

Why Ariel’s global approach


Experience matters

  • Rupal J. Bhansali has more than 30 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 25-40%
Ticker Symbol:
Investor Class: AGLOX
Institutional Class: AGLYX
Fund Assets (all classes):
$177.5 million as of 3/31/2022
 
Portfolio Manager
Bhansali_Rupal_Web.png Rupal J. Bhansali
Portfolio Manager
 

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


Our global process


Negative Screening

Negative screening seeks downside protection
  • Process:
    Screen on risk, not growth rate or valuation
  • Risk management:
    Eliminate over 60% of high-risk stocks in universe
  • Benefit:
    Position for downside protection

Bottom-up Research

Proprietary bottom-up research enables better stock picking
  • Process:
    Analysts perform fundamental 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
  • Benefit:
    Ideas vetted from multiple perspectives yield more informed final decisions by portfolio manager(s)

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


*Global concentrated typically owns up to 15% at market and has no industry limits.


Investor Class
Institutional Class
Quarter End
Month End

Ariel Global Fund

Investor Class | AGLOX

Performance

As of April 30, 2022
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year
To Date
One
Year
Three
Years
Five
Years
Ten
Years
Since
Inception
Ariel Global Fund -3.44% -4.28% -3.34% 2.38% 6.67% 6.52% 8.13% 7.90%
MSCI ACWI Net Index -8.00% -8.44% -12.94% -5.44% 9.41% 9.46% 9.21% 9.96%
MSCI ACWI Value Net Index -5.05% -4.81% -5.96% 0.28% 6.21% 6.23% 7.28% 7.88%

Ariel Global Fund

Investor Class | AGLOX

Performance

As of March 31, 2022
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year
To Date
One
Year
Three
Years
Five
Years
Ten
Years
Since
Inception
Ariel Global Fund 1.89% 0.11% 0.11% 7.87% 8.53% 7.45% 8.00% 8.33%
MSCI ACWI Net Index 2.17% -5.36% -5.36% 7.28% 13.75% 11.64% 10.00% 10.95%
MSCI ACWI Value Net Index 1.92% -0.95% -0.95% 8.83% 9.02% 7.46% 7.64% 8.50%
Expense Ratio Cap: 1.13%
Gross Expense Ratio as of the fiscal year ended 9/30/21: 1.36%*

*Effective November 29, 2016, Ariel Investments, LLC, the Adviser, has contractually agreed to waive fees and 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, 2023. Prior to November 29, 2016, the Expense Cap was 1.25% for the Investor Class. Through January 31, 2014, the Expense Cap was 1.40% for the Investor Class. 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. Ariel Global Fund is often concentrated in fewer sectors than its benchmark, and its performance may suffer if these sectors underperform the overall stock market. Investing in equity stocks is risky and subject to the volatility of the markets.

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.

The MSCI ACWI (All Country World Index) Index is an unmanaged, market weighted index of global developed and emerging markets. The MSCI ACWI Value Index captures large and mid cap securities exhibiting overall value style characteristics across 23 Developed Markets countries and 25 Emerging Markets (EM) countries. Investors cannot invest directly in an index. All MSCI 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. 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. Source: MSCI.

Click here for a fund prospectus.



Ariel Global Fund

Sector Weightings (%)

As of March 31, 2022
  Ariel Global Fund MSCI ACWI
Health Care 25.86 11.86
Information Technology 17.04 22.37
Financials 13.65 14.59
Communication Services 12.46 8.13
Consumer Staples 9.96 6.89
Consumer Discretionary 8.18 11.68
Utilities 4.89 2.87
Real Estate 2.51 2.72
Industrials 1.15 9.52
Materials 0.00 5.04
Energy 0.00 4.33

Sector weightings are calculated based on equity holdings as a percentage of total net assets.

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, 2022
  Units Security Description Market Value % of Total Value
BELGIUM     166,674 0.1
  2,323 KBC Group NV 166,674 0.1
BRAZIL     8,010,554 4.5
  730,288 BB Seguridade Participacoes SA 3,920,598 2.2
  201,362 Telefonica Brasil SA 2,270,744 1.3
  628,090 TIM SA of Brazil 1,819,212 1.0
CANADA     87,477 0.0
  9,038 Element Fleet Management Corp. 87,477 0.0
CHILE     472,470 0.3
  20,915 Banco Santander-Chile ADR 472,470 0.3
CHINA     12,259,506 6.9
  70,794 Baidu, Inc. ADR 9,366,046 5.3
  86,008 Trip.com Group Ltd. ADR 1,988,505 1.1
  630,831 TravelSky Technology Ltd. 904,955 0.5
DENMARK     450,268 0.3
  19,542 H Lundbeck A/S 450,268 0.3
FINLAND     2,925,264 1.6
  531,188 Nokia Corp. 2,925,264 1.6
FRANCE     9,083,047 5.1
  41,901 Michelin (CGDE) 5,678,239 3.2
  13,846 Sanofi 1,415,610 0.8
  23,883 BNP Paribas SA 1,364,786 0.8
  3,191 Safran SA 375,694 0.2
  1,986 Thales SA 248,718 0.1
GERMANY     7,135,771 4.0
  31,720 Deutsche Boerse AG 5,709,945 3.2
  306,912 Telefonica Deutschland Holding 834,738 0.5
  2,211 Muenchener Rueckversicherungs-Gesellschaft AG 591,088 0.3
HONG KONG     904,880 0.5
  93,000 CLP Holdings Ltd. 904,880 0.5
ITALY     1,864,476 1.1
  323,326 Snam SpA 1,864,476 1.1
JAPAN     11,939,810 6.6
  8,550 Nintendo Co., Ltd. 4,315,716 2.4
  78,400 Bridgestone Corp. 3,043,157 1.7
  183,100 Subaru Corp. 2,908,176 1.6
  19,700 Secom Co., Ltd. 1,425,136 0.8
  14,500 Japan Tobacco, Inc. 247,625 0.1
MEXICO     660,426 0.4
  160,350 Wal-Mart de Mexico SAB de CV 660,426 0.4
NETHERLANDS     1,024,568 0.6
  31,853 Koninklijke Ahold Delhaize NV 1,024,568 0.6
PERU     7,720,400 4.4
  44,920 Credicorp Ltd. 7,720,400 4.4
SOUTH AFRICA     838,988 0.5
  170,421 Sanlam Ltd. 838,988 0.5
SOUTH KOREA     4,466,163 2.5
  67,130 KT&G Corp. 4,466,163 2.5
SPAIN     5,916,243 3.3
  271,342 Endesa SA 5,916,243 3.3
SWITZERLAND     14,658,642 8.3
  32,606 Roche Holding AG 12,900,951 7.3
  8,119 Nestle SA 1,055,622 0.6
  7,997 Novartis AG 702,069 0.4
TAIWAN     787,644 0.4
  157,000 Catcher Technology Co., Ltd. 787,644 0.4
UNITED KINGDOM     14,085,898 8.0
  501,078 GlaxoSmithKline plc 10,841,803 6.1
  534,478 Direct Line Insurance Group plc 1,925,924 1.1
  313,480 Vodafone Group plc 514,040 0.3
  20,970 Vodafone Group plc ADR 348,521 0.2
  3,714 Reckitt Benckiser Group plc 283,326 0.2
  11,068 Close Brothers Group plc 172,284 0.1
UNITED STATES     64,394,084 36.3
  58,732 Microsoft Corp. 18,107,663 10.2
  105,760 Philip Morris Intl, Inc. 9,935,094 5.6
  150,305 Gilead Sciences, Inc. 8,935,632 5.0
  39,252 Johnson & Johnson 6,956,632 3.9
  157,792 Equity Commonwealth 4,451,312 2.5
  48,956 Amdocs Ltd. 4,024,673 2.3
  50,498 Bristol-Myers Squibb Co. 3,687,869 2.1
  51,897 Verizon Communications, Inc. 2,643,633 1.5
  28,059 NetApp, Inc. 2,328,897 1.3
  8,405 Check Point Software Technologies Ltd. 1,162,075 0.7
  24,350 Tapestry, Inc. 904,603 0.5
  12,702 U.S. Bancorp 675,111 0.4
  1,646 Berkshire Hathaway, Inc., Class B 580,890 0.3
Total Equities     169,853,253 95.7
Short Term Investments      
  1,959,290 Northern Institutional Treasury Portfolio 1,959,290 1.1
Foreign Currency and Other Assets less Liabilities 5,656,485 3.2
Grand Total     177,469,028 100.0%



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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