What’s Inside

WILL HISTORY REPEAT ITSELF? Co-CEOs John W. Rogers, Jr. and Mellody Hobson state that valuations may dislocate from fundamentals and appear expensive, but history suggests they can remain elevated for extended periods of time. And with large cap valuations trading at nosebleed levels—even if things get more volatile—small, small/mid and mid cap equity valuations are not over-amped and would have less far to fall in a market decline.

SMALLER WITH MORE VALUE Vice Chairman Charlie Bobrinskoy owns more small cap value stocks than the benchmark because the investment process is centered on purchasing companies whose shares are trading at discounts to our calculation of intrinsic value. Generally, he is finding more of these companies in the lower end of the market cap range and among value stocks.

NAVIGATING GLOBAL STOCKS IS A CASE FOR ACTIVE PATIENCE® Chief Investment Officer, Global and Emerging Markets Equities, Henry Mallari-D’Auria thinks stock selection this year has been driving performance and relative risk, not defensiveness. The team is taking steps that we believe pave the way for more consistent alpha generation by holding a broader, more diverse range of stocks with idiosyncratic company-specific risks, sized for impact and with fundamentals poised for significant improvement.

Company Spotlights

FUND SPOTLIGHTS Views from our investment team on Endesa, The J.M. Smucker Company, Redeia, and Royal Caribbean Cruises Ltd.

The companies highlighted in the Company Spotlights were held in one or more of the following Fund portfolios during the quarter ending December 31, 2024: Ariel Fund, Ariel Appreciation Fund, Ariel Focus Fund, Ariel International Fund or Ariel Global Fund. We candidly discuss various individual companies to illustrate our investment process. The information and our opinions were current as of the date above but are subject to change. The information shown does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. These securities do not represent all securities purchased or sold to investors during the period. The performance of any single portfolio holding is no indication of the performance of other portfolio holdings of any Fund or of any particular Fund itself. Portfolio holdings are subject to change. Past performance does not guarantee future results. Click here for the top holdings of the Funds.

Investing in equity stocks is risky and subject to the volatility of the markets. The performance of any single portfolio holding is no indication of the performance of other portfolio holdings or its strategy. Investing in small- and mid-cap stocks is more risky and volatile than investing in large-cap stocks. Investments in non-U.S. securities may underperform and may be more volatile than comparable U.S. stocks because of the risks involving non-U.S. economies, markets, political systems, regulatory standards, currencies, and taxes. The intrinsic value of the stocks in which the Funds invest may never be recognized by the broader market. The Funds are often concentrated in fewer sectors than their benchmarks, and their performance may suffer if these sectors underperform the overall stock market. Ariel Focus Fund is a non-diversified fund and therefore may be subject to greater volatility than a more diversified investment. Investments in emerging and developing markets present additional risks, such as difficulties in selling on a timely basis and at an acceptable price.

Investors should consider carefully the investment objectives, risks and charges and expenses before investing. For a current prospectus or summary prospectus which contains this and other information about the funds offered by Ariel Investment Trust, call us at 800-292-7435, visit our website, arielinvestments.com or click here. Please read the prospectus or summary 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.