Chicago, IL (March 5, 2019) — Ariel Investments today released “From the Front Lines of the Financial Crisis,” a study of the firm’s experiences and lessons learned from the Global Financial Crisis (GFC).
On March 9, 2009, the stock market reached its bottom, with the S&P 500 Index closing at 676. This milestone was preceded by months of volatility in the markets, with panic and fear driving the markets continually downward.
“The 10-year anniversary of the GFC has provided us with an opportunity to look back at that period and share Ariel’s experiences,” said John W. Rogers, Jr., Chairman, CEO and Chief Investment Officer of Ariel Investments. “This study is a reflection on the tough decisions we faced during this challenging time, what we learned and how this knowledge enabled us to strengthen our investment process.”
One of the most salient takeaways from the study was companies with the largest debt burdens saw their shares drop most precipitously during the crisis. As a result, Ariel bulked up its credit research process to evaluate the indebtedness of companies it owned. Charlie Bobrinskoy, Vice Chairman and Head of Investments said, “We believe our ability to refine, amplify and formalize this rigor into our analysis has led to improved portfolio performance.”
As of the most recent quarter end, the firm’s flagship Ariel Fund is ranked number one among its peers since the market bottom.*
“I am gratified by Ariel Fund’s top ranking and long-term track record,” Rogers said. “I am convinced the enhancements we made to our investment process since the GFC will help us weather the next storm and carry us through all that may come,” he concluded.
For more information, contact:
Merrillyn J. Kosier
Executive Vice President
Martin C. Gawne
*Past performance does not guarantee future results. As of December 31, 2018, Ariel Fund (Investor Class) was ranked number one out of 219 funds in Lipper’s Mid-Cap Core universe since the market bottom on March 9, 2009. To learn more about Ariel Fund’s number-one ranking in Lipper’s Mid-Cap Core Universe, please click here. Lipper, Inc. is a nationally recognized organization that reports performance and calculates rankings for mutual funds based on total returns. Ariel Fund ranked 279 out of 399, 119 out of 287 and 3 out of 189, respectively, for the one, five and ten year periods ending December 31, 2018.
Ariel Investments, LLC is a money management firm headquartered in Chicago, with offices in New York City and Sydney. Ariel Investments serves individual and institutional investors through its no-load mutual funds and separate accounts. As of January 31, 2019, firm-wide assets under management are $12.6 billion. For more information about the firm, please visit Ariel’s award-winning website at arielinvestments.com.
Ariel Fund’s fundamental investment objective is long-term capital appreciation. Ariel Fund invests in small- and mid-capitalization (“small/mid cap”) undervalued companies that show strong potential for growth. 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 Ariel Fund invests may never be recognized by the broader market. Ariel Fund is often concentrated in fewer sectors than its benchmarks, and its performance may suffer if these sectors underperform the overall stock market.
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.