Recorded May 6, 2022
On May 6, 2022, Ariel held its Semi-Annual Portfolio Manager Conference Call. Click here to read a summary of call.
Co-CEO & President
John W. Rogers, Jr.
Chairman, Co-CEO & Chief Investment Officer
Lead Portfolio Manager: Ariel Fund
Co-Portfolio Manager: Ariel Small Cap Value, Ariel Small Cap Value Concentrated, Ariel Small/Mid Cap Value, Ariel Mid Cap Value and Ariel Appreciation Fund, Schwab Ariel ESG ETF
Rupal J. Bhansali
Chief Investment Officer and Portfolio Manager, Global Equities
Co-Portfolio Manager: Ariel Global Concentrated
Charles K. Bobrinskoy
Vice Chairman, Head of Investment Group
Portfolio Manager: Ariel Focus Fund and Ariel Focused Value
Timothy Fidler, CFA®
Executive Vice President, Director of Research
Co-Portfolio Manager: Ariel Appreciation Fund and Ariel Mid Cap Value
Kenneth E. Kuhrt, CPA
Executive Vice President
Co-Portfolio Manager: Ariel Small Cap Value and Ariel Small Cap Value Concentrated, Schwab Ariel ESG ETF
Portfolio Manager: Ariel Fund
The Portfolio Manager Conference Call you are about to view is available to the investing public but was geared toward use by institutional investors or individual investors with their financial advisors. The replay highlights information about the separately managed account strategies offered by Ariel Investments, LLC. These strategies are available to institutional clients, including public and private retirement plans, union plans, foundations and endowment funds, and high net worth individuals. Advisory services provided and the fees charged will vary depending upon the nature of the account under management. The performance of the Ariel Investments mutual funds will differ from the performance of the strategies discussed in this replay. Investors should consult their financial advisors before making any investment decisions. Past performance does not guarantee future results.
The information in this presentation 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. The opinions and forecasts were current as of the date of this presentation but are subject to change. Any specific securities identified and discussed in this presentation do not represent all of the securities purchased or sold for the firm's clients. This material should not be considered an offer for any of the securities referenced.
Portfolio holdings are subject to change. The securities discussed do not represent an entire portfolio and in the aggregate may represent only a small percentage of portfolio holdings of a composite. The performance of any single portfolio holding or sector is no indication of the performance of other portfolio holdings or sectors of a composite. See current holdings information for Ariel's portfolios on this web site by navigating to a specific product and then clicking on the “Holdings” tab.
Investing in small- and mid-cap stocks is more risky and volatile than investing in large-cap stocks. The intrinsic value of the stocks in which the mutual funds (the Funds) invests may never be recognized by the broader market. The Funds are often concentrated in fewer sectors that their benchmarks, and their performance may suffer if these sectors underperform the overall stock market. 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. Past performance does not guarantee future results.
A growth investment strategy seeks stocks that are deemed to have superior growth potential. Growth stocks offer an established track record and are perceived to be less risky than value stocks. A value investment strategy seeks undervalued stocks that show a strong potential for growth. The intrinsic value of the stocks in which a value strategy invests may be based on incorrect assumptions or estimations, may be affected by declining fundamentals or external forces, and may never be recognized by the broader market.
Ariel has a dedicated environmental, social and governance (“ESG”) team embedded within our research team for certain Ariel strategies. We have integrated a proprietary ESG-risk rating in our analysis of companies, and it is one factor, but not a primary factor, our investment teams use in evaluating companies.
Junk bonds have a lower credit rating than investment-grade bonds, and therefore have to offer higher interest rates to attract investors. Junk bonds are generally rated BB[+] or lower by Standard & Poor's. The rating indicates these bonds are riskier since chances that the issuer will default or experience a credit event are higher. Price to earnings (PE) ratio is the valuation of a company’s current share price relative to company earnings. A black swan event is an extremely rare event with severe consequences. These events can cause catastrophic damage to an economy by negatively impacting markets and investments, but even the use of robust modeling cannot prevent a black swan event. They cannot be predicted beforehand, though after the fact, many falsely claim it should have been predictable.