Dialing Down International Stock Risk
Financial Advisor Magazine
December 2016

Rupal Bhansali looks for things that can go wrong in a stock.


Performance data quoted represents past performance and 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. Click here for the expense ratio and standardized performance data current to the most recent quarter- and month-end periods for Ariel International Fund.

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.

Past performance does not guarantee future results. For the period ended 03/31/17, Ariel International Fund’s Overall Morningstar Rating™ is four stars for the Investor Class and five stars for the Institutional Class among 269 Foreign Large Value Funds. The Overall Morningstar Rating for the Fund’s Investor Class is derived only from the three-year rating of five stars among the 269 funds in the category for the period ended 03/31/17 and the five-year rating of four stars among the 223 funds in the category for the period ended 03/31/17. The Overall Morningstar Rating for the Fund’s Institutional Class is derived only from the three-year rating of five stars among the 269 funds in the category for the period ended 03/31/17 and the five-year rating of five stars among the 223 funds in the category for the period ended 03/31/17. The inception date for the Fund is 12/30/11 and therefore it does not yet have performance or ratings for the ten-year period. Total returns (on which the rankings are based) would have been lower if certain fees and expenses had not been reduced during these periods.

For the period ended 03/31/17, Ariel Global Fund’s Overall Morningstar Rating™ is three stars for the Investor Class and four stars for the Institutional Class among 839 Foreign Large Value Funds. The Overall Morningstar Rating for the Fund’s Investor Class is derived only from the three-year rating of three stars among the 839 funds in the category for the period ended 03/31/17 and the five-year rating of three stars among the 673 funds in the category for the period ended 03/31/17. The Overall Morningstar Rating for the Fund’s Institutional Class is derived only from the three-year rating of three stars among the 839 funds in the category for the period ended 03/31/17 and the five-year rating of four stars among the 673 funds in the category for the period ended 03/31/17. The inception date for the Fund is 12/30/11 and therefore it does not yet have performance or ratings for the ten-year period. Total returns (on which the rankings are based) would have been lower if certain fees and expenses had not been reduced during these periods

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

© 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

This article was written by Financial Advisor and is based on an interview with Ms. Rupal Bhansali in which she candidly discusses her investment strategies and various stocks. These opinions are current as of the date of the article, but are subject to change. The information provided in the article 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.

In this article, Rupal J. Bhansali discusses stocks which may be, or may have been, held in Ariel International Fund. Portfolio holdings are subject to change. The performance of any single portfolio holding is no indication of the performance of the other holdings of the Fund or of the Ariel International Fund itself. Click here for the portfolio holdings of Ariel International Fund.

Performance shown for the MainStay International Equity Fund is not related to the performance of the Ariel International Fund. Such performance is no indication of the past or future performance of the Ariel International Fund. The performance of Ariel International Fund will differ from that of the MainStay International Equity Fund.

Indexes are unmanaged, and an investor cannot invest directly in an index. The MSCI EAFE Index is an unmanaged, market-weighted index of companies in developed markets, excluding the U.S. and Canada. The MSCI ACWI (All Country World Index) ex-US Index is an unmanaged, market-weighted index of global developed and emerging markets, excluding the United States. The 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. 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. PPlease read the summary prospectus or full 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.

 
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