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The Two Biggest Risks Facing the Market Today — and What to Do
Barron's
August 18, 2018

Rupal Bhansali, a contrarian investor, explains why the best way to win is by not losing.

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Investing in equity stocks is risky and subject to the volatility of the markets. 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. Investments in emerging and developing markets present additional risks, such as difficulties in selling on a timely basis and at an acceptable price. The use of currency derivatives and exchange-traded funds (ETFs) may increase investment losses and expenses and create more volatility. The intrinsic value of the stocks in which the Funds invest may never be recognized by the broader market.

The various asset classes discussed by Ms. Bhansali have different risks and benefits. Investing in equity stocks is risky and subject to the volatility of the markets. Bonds are fixed income securities in that at the time of the purchase of a bond, the amount and timing of income payments are known. Bonds are subject to credit risk and interest rate risk, both of which may affect a bond’s investment value by resulting in lower bond prices or an eventual decrease in income.

The opinions expressed were current as of the date of this commentary but are subject to change. The information provided in this commentary 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. This commentary mentions specific stocks. One or more of the stocks mentioned were, as of the date of this communication, and may currently be held in Ariel International Fund and Ariel Global Fund. Any holdings mentioned do not constitute all holdings in a Fund. Portfolio holdings are subject to change. The performance of any single portfolio holding is no indication of the performance of other portfolio holdings of Ariel International Fund and Ariel Global Fund.

The 3.7% return for Ariel Global Fund quoted in the article represents the return for the period from 1/1/18 to 8/16/18. During that period, the return for the MSCI ACWI Net Index was 1.06%. The -2.4% return for Ariel International Fund quoted in the article represents the return for the period from 1/1/18 to 8/16/18. During that period, the return for the MSCI EAFE Net Index was -4.31%.

As of 6/30/2018, Ariel International Fund held the following positions referenced: Apple 0.0%; China Mobile Ltd. 4.0%; China Mobile Ltd., ADR 1.0%; Microsoft Corp. 0.0%; Facebook 0.0%; Netflix 0.0%; IBM 0.0%; General Electric 0.0%; Nintendo Co., Ltd. 3.2%; Sony 0.0%; EOG Resources, Inc. 1.2%; Pioneer Natural Resources Co. 1.1%; Schlumberger Ltd. 0.0%; Sanofi 0.1%; Pfizer 0.0%; Roche Holding AG 5.3%; Gilead Sciences 0.0%.

As of 6/30/2018, Ariel Global Fund held the following positions referenced: Apple 0.0%; China Mobile Ltd. 3.4%; China Mobile Ltd., ADR 1.6%; Microsoft Corp. 9.3%; Facebook 0.0%; Netflix 0.0%; IBM 0.0%; General Electric 0.0%; Nintendo Co., Ltd. 1.3%; Sony 0.0%; EOG Resources, Inc. 0.7%; Pioneer Natural Resources Co. 1.3%; Schlumberger Ltd. 2.5%; Sanofi 0.0%; Pfizer 0.0%; Roche Holding AG 5.3%; Gilead Sciences, Inc. 5.6%.

Past performance does not guarantee future results. All performance assume 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. Click here for the expense ratio and standardized performance data current to the most recent quarter- and month-end periods for Ariel Global Fund.

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 Distributors, LLC is a member of the Securities Investor Protection Corporation.

 
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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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Ariel Distributors, LLC is a member of the Securities Investor Protection Corporation