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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
Style:
Global equity - intrinsic value
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):
$121.3 million as of 6/30/2018
 
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 August 31, 2018
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year
To Date
One
Year
Three
Years
Five
Years
Since
Inception
Ariel Global Fund 0.25% 4.48% 5.09% 7.35% 9.19% 8.20% 9.41%
MSCI ACWI Index 0.79% 3.26% 3.38% 11.41% 11.85% 9.67% 10.99%

Ariel Global Fund

Investor Class | AGLOX

Performance

As of June 30, 2018
Inception date: December 30, 2011 Annualized
  One
Month
Three
Months
Year
To Date
One
Year
Three
Years
Five
Years
Since
Inception
Ariel Global Fund 0.38% 0.71% 0.97% 6.62% 6.17% 8.03% 9.00%
MSCI ACWI Index -0.54% 0.53% -0.43% 10.73% 8.19% 9.41% 10.65%
Expense Ratio Cap: 1.13%*
Gross Expense Ratio as of the fiscal year ended 9/30/17: 1.42%*

*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, 2019. 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, 2018
  Ariel Global Fund MSCI ACWI
Health Care 22.52 11.13
Information Technology 21.08 19.57
Telecommunication Services 13.68 2.80
Financials 13.16 17.46
Consumer Staples 9.13 8.11
Energy 7.91 6.82
Consumer Discretionary 4.55 12.38
Industrials 4.09 10.51
Utilities 3.87 2.94
Real Estate 0.00 3.03
Materials 0.00 5.24

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, 2018
  Units Security Description Market Value % of Total Value
BRAZIL     85,609 0.1
  13,565 BB Seguridade Participacoes SA 85,609 0.1
CANADA     842,218 0.6
  14,556 IGM Financial, Inc. 421,960 0.3
  9,159 Suncor Energy, Inc. 372,728 0.3
  3,118 Hydro One Ltd. 47,530 0.0
CHILE     457,055 0.4
  14,542 Banco Santander-Chile ADR 457,055 0.4
CHINA     12,248,758 10.1
  25,347 Baidu, Inc. ADR 6,159,321 5.1
  464,500 China Mobile Ltd. 4,126,600 3.4
  44,218 China Mobile Ltd. ADR 1,962,837 1.6
FINLAND     3,261,923 2.7
  567,291 Nokia Corp. ADR 3,261,923 2.7
FRANCE     4,975,865 4.1
  26,134 Michelin (CGDE) 3,183,161 2.6
  12,536 Safran SA 1,523,244 1.3
  2,091 Thales SA 269,460 0.2
GERMANY     5,485,834 4.6
  32,412 Deutsche Boerse AG 4,320,661 3.6
  269,898 Telefonica Deutschland Holding 1,064,071 0.9
  6,629 Dialog Semiconductor plc 101,102 0.1
HONG KONG     229,061 0.2
  624,000 Li & Fung Ltd. 229,061 0.2
ITALY     1,118,639 0.9
  267,870 Snam SpA 1,118,639 0.9
JAPAN     10,105,931 8.3
  125,000 NTT DOCOMO, Inc. 3,186,673 2.6
  49,000 Nippon Telegraph & Telephone Corp. 2,228,822 1.8
  56,000 Japan Tobacco, Inc. 1,565,461 1.3
  4,650 Nintendo Co., Ltd. 1,520,390 1.3
  32,200 Subaru Corp. 937,949 0.8
  6,800 Secom Co., Ltd. 522,491 0.4
  700 Murata Manufacturing Co., Ltd. 117,726 0.1
  300 Shimamura Co., Ltd. 26,419 0.0
MEXICO     589,706 0.5
  141,575 Wal-Mart de Mexico SAB de CV 373,251 0.3
  32,355 Banco Santander-Mexico SA ADR 216,455 0.2
NETHERLANDS     3,526,884 3.0
  78,989 Koninklijke Ahold Delhaize N.V. 1,891,450 1.6
  28,110 Gemalto N.V. 1,635,434 1.4
SPAIN     1,135,473 0.9
  51,459 Endesa SA 1,135,473 0.9
SWITZERLAND     7,177,732 5.9
  28,851 Roche Holding AG 6,425,415 5.3
  1,681 Swisscom AG 752,317 0.6
THAILAND     669,405 0.5
  87,100 Kasikornbank PCL 510,033 0.4
  26,400 Kasikornbank PCL 159,372 0.1
UNITED KINGDOM     8,646,868 7.1
  222,993 GlaxoSmithKline plc 4,502,125 3.7
  67,960 GlaxoSmithKline plc ADR 2,739,468 2.3
  68,030 National Grid plc 752,737 0.6
  7,925 Reckitt Benckiser Group plc 652,538 0.5
UNITED STATES     55,318,714 45.6
  113,998 Microsoft Corp. 11,241,343 9.3
  95,105 Gilead Sciences, Inc. 6,737,238 5.6
  38,316 Johnson & Johnson 4,649,263 3.8
  52,413 Philip Morris Intl, Inc. 4,231,826 3.5
  20,718 Berkshire Hathaway, Inc., Class B 3,867,015 3.2
  31,703 American Express Co. 3,106,894 2.6
  45,417 Schlumberger Ltd. 3,044,301 2.5
  50,331 Verizon Communications, Inc. 2,532,153 2.1
  8,908 Costco Wholesale Corp. 1,861,594 1.5
  33,358 Fluor Corp. 1,627,203 1.3
  8,492 Pioneer Natural Resources Co. 1,607,026 1.3
  32,900 Southern Co. 1,523,599 1.3
  9,794 Core Laboratories N.V. 1,236,101 1.0
  9,483 Quest Diagnostics, Inc. 1,042,561 0.9
  8,856 Sempra Energy 1,028,270 0.8
  10,754 Occidental Petroleum Corp. 899,895 0.7
  7,107 EOG Resources, Inc. 884,324 0.7
  11,465 Intercontinental Exchange, Inc. 843,251 0.7
  15,096 U.S. Bancorp 755,102 0.6
  7,221 Discover Financial Services 508,431 0.4
  108,080 Acacia Research Corp. 448,532 0.4
  7,498 Tapestry, Inc. 350,232 0.3
  5,445 Foot Locker, Inc. 286,679 0.2
  3,405 Tractor Supply Co. 260,448 0.2
  2,917 Expeditors International of Washington, Inc. 213,233 0.2
  26,172 Pandora Media, Inc. 206,235 0.2
  2,796 Amdocs Ltd. 185,067 0.2
  1,216 Acuity Brands, Inc. 140,898 0.1
Total Equities     115,875,675 95.5
Short Term Investments      
  2,863,307 Northern Institutional Treasury Portfolio 2,863,307 2.4
Foreign Currency and Other Assets less Liabilities 2,536,434 2.1
Grand Total     121,275,416 100.0%



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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