Global Strategy
Ariel Global

Our global investment philosophy


We take the long-term view.
  • Emphasis on higher absolute and relative returns over a full market cycle with less risk
  • Focus research as much on what can go wrong as what can go right


We invest to our convictions, not to benchmarks.
  • Benchmark aware only to the extent that tracking error is by design and not by default
  • Significant exposure to our highest-conviction ideas, tempered with prudent risk controls


We specialize in bottom-up fundamental research.
  • Focus on connecting information versus collecting information
  • Take business analyst approach rather than financial analyst approach
  • Have extensive interactions with management teams around the world
  • Research a company's global peers to fully inform our competitive assessment


We work collaboratively with a shared commitment to excellence.
  • Debate best, base and worst case scenarios for every company considered
  • Three team members with clearly defined roles vet each stock

Rupal Bhansali on International and Global Investing I
Rupal Bhansali on International and Global Investing II

Why Ariel’s global approach

Experience matters

  • Rupal J. Bhansali has more than 25 years of industry experience

Managing risk is a top priority

  • We pay as much attention to risk management as to return management

Screening out provides a stronger starting point

  • While others screen in, we begin our process by screening out high-risk companies

All-cap portfolios offer larger opportunity set

  • Although our portfolios are relatively concentrated, we consider companies of all sizes

Attention to business models builds more resilient portfolios

  • In addition to applying our financial models, we consider the long-term viability of each company's business model
Market Cap Range: All Cap
Inception: December 31, 2011
Number of companies: 50-150
Turnover: 30-80%
Net Assets: $2,111.4 million
as of 6/30/2016
Portfolio Manager
Bhansali_Rupal_Web.png Rupal J. Bhansali
Portfolio Manager
Ariel Global

Schedule of Holdings

As of June 30, 2016
  Units Security Description Market Value % of Total Value
BRAZIL     1,806,193 0.3
  191,334 Itau Unibanco Holding SA ADR 1,806,193 0.3
CANADA     5,496,206 0.7
  107,851 IGM Financial Inc. 2,922,505 0.4
  55,153 Suncor Energy, Inc. 1,522,986 0.2
  26,075 Rogers Communications Inc. 1,050,715 0.1
CHILE     4,310,755 0.6
  222,548 Banco Santander-Chile ADR 4,310,755 0.6
CHINA     36,202,992 5.1
  214,999 Baidu, Inc. ADR 35,507,085 5.0
  1,156,000 Lenovo Group Ltd 695,907 0.1
FINLAND     23,313,700 3.3
  4,097,311 Nokia Corp. ADR 23,313,700 3.3
FRANCE     20,142,415 2.9
  169,805 Michelin (CGDE) 16,087,485 2.3
  91,737 BNP Paribas SA 4,054,930 0.6
GERMANY     45,946,649 6.4
  289,799 Deutsche Boerse AG 23,695,595 3.3
  428,287 Dialog Semiconductor plc 12,766,705 1.8
  1,946,888 Telefonica Deutschland Holding 7,994,060 1.1
  8,173 Beiersdorf AG 771,410 0.1
  4,817 BASF SE 367,622 0.1
  4,704 SAP SE 351,257 0.0
HONG KONG     38,571,737 5.5
  2,959,104 China Mobile Ltd. 33,815,476 4.8
  47,393 China Mobile Ltd. ADR 2,744,055 0.4
  4,173,729 Li & Fung Ltd 2,012,206 0.3
IRELAND     349,726 0.0
  3,087 Accenture plc 349,726 0.0
ISRAEL     724,456 0.1
  205,948 Bank Leumi Le-Israel BM 724,456 0.1
ITALY     747,587 0.1
  125,444 Snam SpA 747,587 0.1
JAPAN     38,546,311 5.4
  53,300 Nintendo Co., Ltd. 7,578,285 1.1
  44,200 Daito Trust Construction Co., Ltd. 7,169,897 1.0
  491,700 Nikon Corp. 6,643,558 0.9
  124,200 Toyota Motor Corp. 6,116,771 0.9
  40,200 Shimamura Co., Ltd. 5,948,879 0.8
  80,500 Canon Inc. 2,285,594 0.3
  33,000 Japan Tobacco Inc. 1,319,936 0.2
  6,000 Murata Manufacturing Co., Ltd. 665,627 0.1
  98,200 Anritsu Corp 563,851 0.1
  22,300 Japan Exchange Group, Inc. 253,913 0.0
LUXEMBOURG     757,137 0.1
  26,253 Tenaris ADR 757,137 0.1
MEXICO     1,068,784 0.2
  117,578 Santander Mexico Financial Group ADR 1,068,784 0.2
NETHERLANDS     25,750,908 3.7
  507,413 Ahold N.V. 11,226,950 1.6
  123,673 Gemalto N.V. 7,533,960 1.1
  56,421 Core Laboratories N.V. 6,989,998 1.0
SINGAPORE     1,911,533 0.3
  139,600 United Overseas Bank Ltd. 1,911,533 0.3
SPAIN     10,782,263 1.5
  475,821 Endesa SA 9,538,640 1.3
  41,798 Tecnicas Reunidas SA 1,243,623 0.2
SWEDEN     297,305 0.0
  10,214 H & M Hennes & Mauritz AB 297,305 0.0
SWITZERLAND     51,058,074 7.2
  145,071 Roche Holding AG 38,146,788 5.4
  26,051 Swisscom AG 12,911,286 1.8
THAILAND     819,486 0.1
  166,700 Kasikornbank/F 819,486 0.1
UNITED KINGDOM     56,687,901 8.1
  1,181,066 GlaxoSmithKline plc 25,444,371 3.6
  440,913 GlaxoSmithKline plc ADR 19,109,169 2.7
  75,868 Reckitt Benckiser Group plc 7,629,890 1.1
  66,550 Diageo plc 1,864,422 0.3
  334,290 British Telecom Group plc 1,840,285 0.3
  12,299 British American Tobacco PLC 799,764 0.1
UNITED STATES     297,660,943 42.1
  816,040 Microsoft Corp. 41,756,767 5.9
  488,325 Gilead Sciences, Inc. 40,736,072 5.7
  266,509 Johnson & Johnson 32,327,542 4.6
  339,305 Harman Intl Industries, Inc. 24,368,885 3.4
  379,644 Verizon Communications Inc. 21,199,321 3.0
  332,675 Southern Co. 17,841,360 2.5
  625,100 Tumi Holdings Inc. 16,715,174 2.4
  269,242 American Express Co. 16,359,144 2.3
  148,124 Quest Diagnostics Inc. 12,058,775 1.7
  74,557 Berkshire Hathaway Inc. 10,795,108 1.5
  88,785 Philip Morris Intl, Inc. 9,031,210 1.3
  101,413 Rockwell Collins, Inc. 8,634,303 1.2
  87,638 Schlumberger Ltd. 6,930,413 1.0
  162,249 U.S. Bancorp 6,543,502 0.9
  1,219,963 Acacia Research Corp. 5,367,837 0.8
  58,328 Ansys, Inc. 5,293,266 0.7
  38,403 EOG Resources Inc. 3,203,578 0.5
  36,888 Occidental Petroleum Corp. 2,787,257 0.4
  177,227 QLogic Corp. 2,612,326 0.4
  61,352 Coach, Inc. 2,499,480 0.4
  12,320 Costco Wholesale Corp. 1,934,733 0.3
  15,557 Praxair, Inc. 1,748,451 0.2
  18,634 AFLAC Inc. 1,344,629 0.2
  18,945 Cullen/Frost Bankers, Inc. 1,207,365 0.2
  10,803 The PNC Financial Service Group, Inc. 879,256 0.1
  26,524 EMC Corp. 720,657 0.1
  13,827 Fastenal Co. 613,781 0.1
  2,350 W.W. Grainger, Inc. 534,038 0.1
  3,400 Pioneer Natural Resources Co 514,114 0.1
  4,604 Union Pacific 401,699 0.1
  4,281 Varian Medical Systems Inc. 352,027 0.0
  1,363 IntercontinentalExchange, Inc. 348,873 0.0
Total Equities     662,953,061 93.7
Forward Position Long     1,927,117 0.3
Cash Balance     44,366,112 6.0
Grand Total     709,246,290 100.0

Ariel Global


Monthly Commentary: Perspectives on the current market
Quarterly Commentary: Quarterly performance update and communication to investors
Turtle Thoughts: A compilation of our portfolio manager letters
Fact Sheets: Quarterly product overview
Asia Pacific & Middle East Investors: View fact sheets, commentary, performance, recent press and collateral
Ariel Global (Representative Portfolio)

Sector Weightings (%)

As of June 30, 2016
  Ariel Global MSCI ACWI
Health Care 25.37 12.40
Information Technology 21.42 14.84
Financials 13.00 19.71
Telecommunication Services 12.30 4.03
Consumer Discretionary 12.17 12.26
Consumer Staples 5.22 10.98
Utilities 4.24 3.63
Energy 3.61 7.02
Industrials 2.35 10.22
Materials 0.32 4.91

Represents percentage of total equity holdings in the representative portfolio

MSCI ACWI (All Country World Index) Index is an unmanaged, market weighted index of global developed and emerging markets. 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.

These sectors are the Global Industry Classification Standard (“GICS”). GICS was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) and is licensed for use by Ariel Investments, LLC. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Quarter End
Month End

Ariel Global Composite Performance

As of August 31, 2016
Inception date: December 31, 2011 Annualized
To Date
Gross of Fees 0.12% 3.78% 7.00% 9.35% 8.41% 11.45%
Net of Fees 0.05% 3.58% 6.44% 8.48% 7.52% 10.47%
MSCI AC World Index 0.34% 4.03% 5.95% 7.24% 6.74% 9.64%

Ariel Global Composite Performance

As of June 30, 2016
Inception date: December 31, 2011 Annualized
To Date
Gross of Fees -0.29% -0.18% 2.79% 0.45% 8.28% 10.90%
Net of Fees -0.36% -0.38% 2.39% -0.35% 7.39% 9.93%
MSCI AC World Index -0.61% 0.99% 1.23% -3.73% 6.03% 8.91%

Ariel Investments, LLC is a money management firm headquartered in Chicago, Illinois, with offices in New York and Sydney. Taking a long-term view and applying independent thinking to our investment decisions, we span the market cap spectrum from micro to large and cover the globe with our international and global offerings. Ariel claims compliance with the Global Investment Performance Standards (GIPS®).

The Ariel Global strategy seeks long-term capital appreciation as a primary objective. The strategy’s secondary objective is to generate attractive absolute and risk-adjusted returns, and to attain higher relative returns compared to its benchmark over a full market cycle. The strategy invests primarily in equity securities of both U.S. and foreign (non-U.S.) issuers, including issuers in developed or emerging markets. The Ariel Global Composite differs from its benchmark, the MSCI ACWI (All Country World Index) Index, because the Composite has fewer holdings than the benchmark. Index returns reflect the reinvestment of income and other earnings. Indexes are unmanaged, and investors cannot invest directly in an index.

The strategy will invest in foreign securities through the purchase of individual securities on recognized foreign exchanges and over-the-counter markets, or through American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”), or other securities representing underlying shares of foreign companies, including, but not limited to, certificates of deposit issued by foreign banks and foreign branches of U.S. banks, participatory notes (instruments issued by registered foreign financial intermediaries to U.S. institutional investors), or other instruments that allow the strategy to participate in foreign markets. The strategy will invest in large, medium, or small companies without regard to market capitalization.

The strategy uses various techniques to hedge currency exposure, or to invest significant cash inflows in the market (i.e., reducing “cash drag”), including derivatives, exchange-traded funds (“ETFs”), and other hedges. The strategy will buy and sell currency on a spot basis (i.e., foreign currency trades that settle within two days) and enter into foreign currency forward contracts. The strategy at times will buy and sell foreign currency options and securities, securities index options or futures, other futures contracts or options, and enter into swap agreements, which are types of derivatives. Ariel uses these techniques in an attempt to decrease the strategy’s exposure to changing security prices or foreign currency risk, or to reduce unintended tracking error versus its respective benchmarks, or to address other factors that affect security values. The strategy will at times include the holding of cash or cash equivalents for defensive purposes. Cash equivalents are negotiable instruments, such as commercial paper, treasury bills, short-term government bonds, payable by third parties. Third parties include foreign banks and foreign governments.

Performance results are net of transaction costs and reflect the reinvestment of dividends and other earnings. Net returns reflect the deduction of the maximum advisory fee in effect for the respective period. Effective 1/1/14 the maximum fee is 0.80% per annum. Fees for prior periods are available upon request. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. Fee information is available upon request and may also be found in Ariel’s Form ADV, Part 2. Results shown may be preliminary. Returns are calculated in U.S. dollars. The Ariel Global Composite has been examined for the period from January 1, 2012 through December 31, 2015. A copy of the examination report is available upon request. Past performance does not guarantee future results. Investments in foreign securities may underperform and may be more volatile because of the risks involving foreign economies and markets, foreign political systems, foreign regulatory standards, foreign currencies and taxes. The use of currency derivatives, ETFs, and other hedges 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 portfolio invests may never be recognized by the broader market. Click here to obtain a complete list of composite descriptions or a presentation that adheres to the GIPS standards.

MSCI ACWI (All Country World Index) Index is an unmanaged, market weighted index of global developed and emerging markets. The MSCI ACWI 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.

Our global process

Negative Screening

Negative screening seeks downside protection
  • Process:
    Screen on risk, not growth rate or valuation
  • Risk management:
    Eliminate approximately 60% of high-risk stocks in universe
  • Benefit:
    Position for downside protection

Bottom-up Research

Proprietary bottom-up research enables better stock picking
  • Process:
    Lead analysts perform research
  • Risk management:
    Assess the prospects and durability of a business franchise
  • Benefit:
    Proprietary insights enable better stock picking

Team Validation

Team validation avoids blind spots in our analysis
  • Process:
    A team of three debates and stress tests each idea
  • Risk management:
    Incorporate macro and micro factors in scenario analyses; lead analyst presents balanced case versus a recommendation
  • Benefit:
    Ideas vetted from multiple perspectives yield more informed final decisions by portfolio manager

Portfolio Construction

Portfolios constructed to manage risks as well as long-term performance
  • Process:
    Seek to own top decile of investment opportunities uncovered
  • Risk management:
    Typically cap security position size at 5% at time of purchase, sector weights at the higher of 25% or 1.5x benchmark, hedge currency if practical and cost-efficient
  • Benefit:
    Designed to generate superior long-term, risk-adjusted performance

Past performance does not guarantee future results. © Ariel Investments, LLC. The mutual funds offered by Ariel Investment Trust are distributed by Ariel Distributors, LLC. Use of this website is subject to our Terms & Conditions of use. 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 investors outside the United States.

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