0000894189-13-000812.txt : 20130211 0000894189-13-000812.hdr.sgml : 20130211 20130211161537 ACCESSION NUMBER: 0000894189-13-000812 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20121231 FILED AS OF DATE: 20130211 DATE AS OF CHANGE: 20130211 EFFECTIVENESS DATE: 20130211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARIEL INVESTMENT TRUST CENTRAL INDEX KEY: 0000798365 IRS NUMBER: 000000000 FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-04786 FILM NUMBER: 13591882 BUSINESS ADDRESS: STREET 1: 200 EAST RANDOLPH DRIVE STREET 2: SUITE 2900 CITY: CHICAGO STATE: IL ZIP: 60601 BUSINESS PHONE: 3127260140 MAIL ADDRESS: STREET 1: 200 EAST RANDOLPH DRIVE STREET 2: SUITE 2900 CITY: CHICAGO STATE: IL ZIP: 60601 FORMER COMPANY: FORMER CONFORMED NAME: ARIEL GROWTH FUND DATE OF NAME CHANGE: 19931130 0000798365 S000005024 Ariel Fund C000013706 Investor Class ARGFX C000108536 Institutional Class (Class I) ARAIX 0000798365 S000005025 Ariel Appreciation Fund C000013707 Investor Class CAAPX C000108537 Institutional Class (Class I) CAAIX 0000798365 S000005026 Ariel Focus Fund C000013708 Investor Class ARFFX C000108538 Institutional Class (Class I) AFOYX 0000798365 S000031125 Ariel Discovery Fund C000096535 Investor Class ARDFX C000108539 Institutional Class (Class I) ADYIX 0000798365 S000035291 Ariel International Equity Fund C000108545 Investor Class AINTX C000108546 Institutional Class (Class I) AINIX 0000798365 S000035292 Ariel Global Equity Fund C000108547 Investor Class AGLOX C000108548 Institutional Class (Class I) AGLYX N-Q 1 ariel_nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS ariel_nq.htm
 
 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
 

Investment Company Act File number: 811-4786

Ariel Investment Trust
(Exact name of registrant as specified in charter)

200 East Randolph Street
Suite 2900
Chicago, IL 60601
(Address of principal executive offices)

Mareile Cusack
200 East Randolph Street
Suite 2900
Chicago, IL 60601
(Name and address of agent for service)

with a copy to:

Arthur Don
Greenberg Traurig, LLP
77 West Wacker Drive
Suite 3100
Chicago, IL 60601
(312) 456-8438

Registrant's telephone number, including area code: (312) 726-0140

Date of fiscal year end: September 30, 2013
Date of reporting period: December 31, 2012
 

 
 
 
 
 
Item 1. Schedule of Investments.
 
Ariel Fund Schedule of Investments
   December 31, 2012 (Unaudited)  
Number of Shares
  
Common Stocks—99.09%
  
Value
  
           
   
Consumer discretionary & services—37.82%
      
  3,582,339  
Gannett Co., Inc.
   $ 64,517,925  
  5,557,272  
Interpublic Group of Cos., Inc.
     61,241,137  
  1,970,898  
International Speedway Corp., Class A
     54,436,203  
  3,644,425  
International Game Technology
     51,641,502  
  1,510,556  
Royal Caribbean Cruises Ltd.
     51,358,904  
  531,648  
Mohawk Industries, Inc. (a)
     48,098,195  
  2,136,257  
Newell Rubbermaid Inc.
     47,574,443  
  2,523,375  
WMS Industries Inc. (a)
     44,159,063  
  1,545,440  
DeVry Inc.
     36,673,291  
  733,554  
Madison Square Garden Co., Class A (a)
     32,533,120  
  928,271  
Meredith Corp.
     31,978,936  
  84,100  
Washington Post Co., Class B
     30,714,161  
  733,667  
Sotheby's
     24,665,885  
  238,865  
Snap-on Inc.
     18,867,946  
  315,075  
Nordstrom, Inc.
     16,856,513  
            615,317,224  
     
Consumer staples—2.12%
        
  231,538  
J.M. Smucker Co.
     19,967,837  
  229,725  
McCormick & Co., Inc.
     14,594,429  
            34,562,266  
     
Energy—2.77%
        
  1,062,685  
Contango Oil & Gas Co. (b)
     45,015,337  
               
     
Financial services—29.07%
        
  7,331,278  
Janus Capital Group Inc.
     62,462,489  
  2,073,700  
Lazard Ltd, Class A
     61,879,208  
  2,530,645  
First American Financial Corp.
     60,963,238  
  3,963,045  
KKR & Co. L.P.
     60,357,175  
  666,673  
Jones Lang LaSalle Inc.
     55,960,532  
  2,503,857  
CBRE Group, Inc., Class A (a)
     49,826,754  
  617,400  
Dun & Bradstreet Corp.
     48,558,510  
  1,049,000  
Fair Isaac Corp.
     44,089,470  
  584,326  
City National Corp.
     28,935,824  
            473,033,200  
     
Health care—14.53%
        
  1,522,275  
Charles River Laboratories Intl Inc. (a)
     57,039,644  
  1,673,901  
Hospira, Inc. (a)
     52,292,667  
  1,011,000  
Life Technologies Corp. (a)
     49,619,880  
  354,634  
Bio-Rad Laboratories, Inc., Class A (a)
     37,254,302  
  2,339,874  
Symmetry Medical Inc. (a) (b)
     24,615,474  
  233,100  
Zimmer Holdings, Inc.
     15,538,446  
            236,360,413  
     
Materials & processing—5.02%
        
  1,253,300  
Simpson Manufacturing Co.
     41,095,707  
  2,524,038  
Interface, Inc.
     40,586,531  
            81,682,238  
     
Producer durables—7.36%
        
  1,105,703  
Brady Corp., Class A
     36,930,480  
  691,811  
IDEX Corp.
     32,189,966  
  491,400  
Littelfuse Inc.
     30,324,294  
  377,940  
Bristow Group Inc.
     20,280,260  
            119,725,000  
     
Technology—0.40%
        
  102,700  
Anixter Intl Inc.
     6,570,746  
               
               
     
Total common stocks (Cost $1,079,541,909)
     1,612,266,424  
 
 
 
 
 
 
          December 31, 2012 (Unaudited)
               
Principal Amount
  
Repurchase Agreement—0.88%
  
Value
  
               
$ 14,386,967  
Fixed Income Clearing Corporation, 0.01%, dated 12/31/2012, due 01/02/2013, repurchase price $14,386,975, (collateralized by Freddie Mac, 1.650%, due 11/15/2019; U.S. Treasury Note, 0.625%, due 05/31/2017) (Cost $14,386,967)
   $ 14,386,967  
     
Total Investments (Cost $1,093,928,876)—99.97%
     1,626,653,391  
     
Cash, Other Assets less Liabilities—0.03%
     505,366  
     
Net Assets—100.00%
   $ 1,627,158,757  
               
 
   (a) Non-income producing.
      
   (b) Affiliated company (See Note Three).
      
A category may contain multiple industries as defined by the Global Industry Classification Standards.
  
See Notes to Schedules of Investments.
    

 
 
 
 
 
 
 

Ariel Appreciation Fund Schedule of Investments
   December 31, 2012 (Unaudited)  
Number of Shares
  
Common Stocks—99.30%
  
Value
  
           
   
Consumer discretionary & services—33.14%
      
  5,042,530  
Interpublic Group of Cos., Inc.
   $ 55,568,681  
  857,600  
Viacom, Inc., Class B
     45,229,824  
  2,732,990  
International Game Technology
     38,726,468  
  956,900  
CBS Corp., Class B
     36,410,045  
  1,122,500  
International Speedway Corp., Class A
     31,003,450  
  392,100  
Snap-on Inc.
     30,971,979  
  1,605,200  
Gannett Co., Inc.
     28,909,652  
  646,100  
Madison Square Garden, Co., Class A (a)
     28,654,535  
  448,700  
Omnicom Group Inc.
     22,417,052  
  988,700  
Newell Rubbermaid Inc.
     22,018,349  
  601,600  
Sotheby's
     20,225,792  
  829,335  
DeVry Inc.
     19,680,119  
  672,300  
Apollo Group, Inc., Class A (a)
     14,064,516  
  231,200  
Tiffany & Co.
     13,257,008  
  217,700  
Nordstrom, Inc.
     11,646,950  
  162,550  
Carnival Corp.
     5,976,964  
            424,761,384  
     
Consumer staples—1.48%
        
  219,475  
J.M. Smucker Co.
     18,927,524  
               
     
Energy—1.94%
        
  586,482  
Contango Oil & Gas Co.
     24,843,377  
               
     
Financial services—37.54%
        
  1,905,020  
Lazard Ltd, Class A
     56,845,797  
  2,219,800  
First American Financial Corp.
     53,474,982  
  1,025,500  
Northern Trust Corp.
     51,439,080  
  512,400  
Jones Lang LaSalle Inc.
     43,010,856  
  780,200  
AFLAC Inc.
     41,444,224  
  2,622,600  
Blackstone Group L.P.
     40,886,334  
  4,362,775  
Janus Capital Group Inc.
     37,170,843  
  295,400  
Franklin Resources, Inc.
     37,131,780  
  2,246,455  
KKR & Co. L.P.
     34,213,510  
  1,981,000  
Western Union Co.
     26,961,410  
  1,145,950  
CBRE Group, Inc. (a)
     22,804,405  
  403,600  
City National Corp.
     19,986,272  
  243,300  
T. Rowe Price Group, Inc.
     15,846,129  
            481,215,622  
     
Health care—16.00%
        
  782,754  
Thermo Fisher Scientific Inc.
     49,924,050  
  636,400  
Zimmer Holdings, Inc.
     42,422,424  
  982,000  
St. Jude Medical, Inc.
     35,489,480  
  884,000  
Hospira, Inc. (a)
     27,616,160  
  532,600  
Life Technologies Corp. (a)
     26,140,008  
  223,625  
Bio-Rad Laboratories, Inc., Class A (a)
     23,491,806  
            205,083,928  
     
Producer durables—6.38%
        
  486,400  
Towers Watson, Class A
     27,340,544  
  285,699  
Stanley Black & Decker, Inc.
     21,133,155  
  343,950  
Illinois Tool Works Inc.
     20,915,600  
  187,100  
Accenture plc, Class A
     12,442,150  
            81,831,449  
     
Technology—2.82%
        
  3,564,800  
Dell Inc.
     36,111,424  
               
               
     
Total common stocks (Cost $871,169,537)
     1,272,774,708  
 
 
 
 
 
 
          December 31, 2012 (Unaudited)  
               
Principal Amount
  
Repurchase Agreement—0.74%
  
Value
  
               
$ 9,478,355  
Fixed Income Clearing Corporation, 0.01%, dated 12/31/2012, due 01/02/2013, repurchase price $9,478,360, (collateralized by U.S. Treasury Note, 0.625%, due 05/31/2017) (Cost $9,478,355)
   $ 9,478,355  
     
Total Investments (Cost $880,647,892)—100.04%
     1,282,253,063  
     
Liabilities less Other Assets—(0.04)%
     (490,265 )
     
Net Assets—100.00%
   $ 1,281,762,798  
               
 
   (a) Non-income producing.
      
A category may contain multiple industries as defined by the Global Industry Classification Standards.
  
See Notes to Schedules of Investments.
    
 

 
 
 
 

Ariel Focus Fund Schedule of Investments
   December 31, 2012 (Unaudited)  
Number of Shares
  
Common Stocks—99.27%
  
Value
  
           
   
Consumer discretionary & services—19.16%
      
  32,400  
Target Corp.
   $ 1,917,108  
  35,700  
Omnicom Group Inc.
     1,783,572  
  18,900  
Snap-on Inc.
     1,492,911  
  49,700  
DeVry Inc.
     1,179,381  
  19,500  
Walt Disney Co.
     970,905  
  34,600  
Apollo Group, Inc., Class A (a)
     723,832  
            8,067,709  
     
Consumer staples—4.86%
        
  55,300  
Walgreen Co.
     2,046,653  
               
     
Energy—9.50%
        
  20,500  
Exxon Mobil Corp.
     1,774,275  
  75,100  
Chesapeake Energy Corp.
     1,248,162  
  14,300  
National Oilwell Varco Inc.
     977,405  
            3,999,842  
     
Financial services—33.52%
        
  111,550  
Morgan Stanley
     2,132,836  
  15,200  
Goldman Sachs & Co.
     1,938,912  
  131,500  
Western Union Co.
     1,789,715  
  38,700  
JPMorgan Chase & Co.
     1,701,639  
  96,800  
KKR & Co. L.P.
     1,474,264  
  52,200  
Bank of New York Mellon Corp.
     1,341,540  
  24,600  
Northern Trust Corp.
     1,233,936  
  73,400  
Blackstone Group L.P.
     1,144,306  
  15,500  
AFLAC Inc.
     823,360  
  5,900  
Berkshire Hathaway Inc., Class B (a)
     529,230  
            14,109,738  
     
Health care—13.00%
        
  30,900  
Zimmer Holdings, Inc.
     2,059,794  
  25,300  
Johnson & Johnson
     1,773,530  
  12,800  
Baxter Intl Inc.
     853,248  
  25,100  
Hospira, Inc. (a)
     784,124  
            5,470,696  
     
Producer durables—6.82%
        
  22,400  
Lockheed Martin Corp.
     2,067,296  
  12,100  
Accenture plc, Class A
     804,650  
            2,871,946  
     
Technology—12.41%
        
  81,200  
Microsoft Corp.
     2,170,476  
  159,700  
Dell Inc.
     1,617,761  
  7,500  
International Business Machines Corp.
     1,436,625  
            5,224,862  
               
     
Total common stocks (Cost $37,899,830)
     41,791,446  
               
     
Total Investments (Cost $37,899,830)—99.27%
     41,791,446  
     
Cash, Other Assets less Liabilities—0.73%
     307,254  
     
Net Assets—100.00%
   $ 42,098,700  
               
   (a) Non-income producing.
      
A category may contain multiple industries as defined by the Global Industry Classification Standards.
  
See Notes to Schedules of Investments.
    
 
 

 
 
 

Ariel Discovery Fund Schedule of Investments
   December 31, 2012 (Unaudited)  
Number of Shares
  
Common Stocks—94.01%
  
Value
  
           
   
Consumer discretionary & services—22.37%
      
  47,300  
XO Group Inc. (a)
   $ 439,890  
  14,500  
International Speedway Corp., Class A
     400,490  
  9,000  
Madison Square Garden Co., Class A (a)
     399,150  
  24,500  
Rosetta Stone Inc. (a)
     302,330  
  72,000  
Gaiam, Inc., Class A (a)
     227,520  
  10,000  
WMS Industries Inc. (a)
     175,000  
  11,795  
JAKKS Pacific, Inc.
     147,673  
  15,600  
Callaway Golf Co.
     101,400  
            2,193,453  
     
Energy—10.24%
        
  39,700  
Mitcham Industries, Inc. (a)
     541,111  
  10,925  
Contango Oil & Gas Co.
     462,783  
            1,003,894  
     
Financial services—19.38%
        
  19,100  
First American Financial Corp.
     460,119  
  66,086  
Market Leader, Inc. (a)
     432,863  
  136,900  
Cowen Group, Inc., Class A (a)
     335,405  
  19,900  
AV Homes, Inc. (a)
     282,978  
  13,900  
MB Financial, Inc.
     274,525  
  8,800  
Symetra Financial Corp.
     114,224  
            1,900,114  
     
Health care—3.35%
        
  112,700  
Vical Inc. (a)
     327,957  
               
     
Materials & processing—9.30%
        
  146,434  
Orion Energy Systems, Inc. (a)
     243,080  
  24,699  
Landec Corp. (a)
     234,394  
  82,894  
Rentech, Inc.
     218,011  
  6,600  
Simpson Manufacturing Co., Inc.
     216,414  
            911,899  
     
Producer durables—10.21%
        
  9,300  
Brink's Co.
     265,329  
  6,000  
Team, Inc. (a)
     228,240  
  3,250  
Littelfuse Inc.
     200,558  
  50,100  
Ballantyne Strong, Inc. (a)
     165,330  
  26,300  
Furmanite Corp (a)
     141,231  
            1,000,688  
     
Technology—15.58%
        
  50,380  
PCTEL, Inc.
     362,736  
  35,450  
Pervasive Software Inc. (a)
     315,860  
  55,000  
Imation Corp. (a)
     256,850  
  12,800  
Tessera Technologies Inc.
     210,176  
  29,800  
Sigma Designs, Inc. (a)
     153,470  
  6,100  
Multi-Fineline Electronix, Inc. (a)
     123,281  
  41,200  
American Reprographics Co. (a)
     105,472  
            1,527,845  
     
Utilities—3.58%
        
  47,100  
ORBCOMM Inc. (a)
     184,632  
  130,800  
Pendrell Corp (a)
     166,116  
            350,748  
               
     
Total common stocks (Cost $8,701,203)
     9,216,598  
               
Principal Amount
  
Repurchase Agreement—4.70%
  
Value
  
               
$ 460,523  
Fixed Income Clearing Corporation, 0.01%, dated 12/31/2012, due 01/02/2013, repurchase price $460,524, (collateralized by U.S. Treasury Note, 0.625%, due 05/31/2017) (Cost $460,523)
   $ 460,523  
     
Total Investments (Cost $9,161,727)—98.71%
     9,677,121  
     
Cash, Other Assets less Liabilities—1.29%
     126,577  
     
Net Assets—100.00%
   $ 9,803,698  
               
   (a) Non-income producing.
      
A category may contain multiple industries as defined by the Global Industry Classification Standards.
  
See Notes to Schedules of Investments.
    

 

 
 
 
 

Ariel International Equity Fund Schedule of Investments
   December 31, 2012 (Unaudited)  
Number of Shares
  
Common Stocks—76.60%
  
Value
  
           
   
Australia—0.34%
      
  209  
CSL Ltd.
   $ 11,800  
     
Belgium—1.30%
        
  1,774  
Mobistar SA
     45,601  
     
Brazil—0.26%
        
  376  
Telefonica Brasil SA ADR
     9,047  
     
Canada—2.63%
        
  1,364  
Great-West Lifeco Inc.
     33,390  
  1,213  
Power Financial Corp.
     33,218  
  347  
Tim Hortons Inc.
     17,034  
  198  
IGM Financial Inc.
     8,281  
            91,923  
     
China—2.71%
        
  779  
China Mobile Ltd. ADR
     45,743  
  2,000  
China Mobile Ltd.
     23,535  
  223  
Baidu, Inc. ADR (a)
     22,365  
  100  
Mindray Medical International Ltd ADR
     3,270  
            94,913  
     
Finland—3.09%
        
  20,418  
Nokia Corp. ADR
     80,651  
  6,962  
Nokia Corp.
     27,512  
            108,163  
     
France—1.90%
        
  895  
BNP Paribas SA
     50,952  
  564  
Metropole Television M6 (a)
     8,866  
  223  
Ipsen SA
     6,728  
            66,546  
     
Germany—6.34%
        
  2,484  
Deutsche Boerse AG
     152,324  
  4,228  
Infineon Techologies AG (a)
     34,443  
  124  
Muenchener Rueckversicherungs-Ges. AG
     22,385  
  89  
Allianz SE
     12,406  
            221,558  
     
Ireland—3.01%
        
  3,073  
Ryanair Holdings plc ADR
     105,342  
     
Italy—2.31%
        
  35,772  
Mediaset SpA
     74,318  
  1,365  
Snam SpA
     6,371  
            80,689  
     
Japan—20.34%
        
  1,900  
Murata Manufacturing Co., Ltd.
     112,084  
  900  
Nintendo Co., Ltd.
     96,100  
  2,900  
Japan Tobacco Inc.
     81,923  
  782  
Toyota Motor Corp. ADR
     72,922  
  1,700  
Canon Inc.
     65,892  
  1,400  
Denso Corp.
     48,754  
  1,054  
Canon Inc. ADR
     41,327  
  400  
Daito Trust Construction Co., Ltd.
     37,804  
  1,400  
Nomura Research Institute Ltd.
     29,163  
  600  
Toyota Motor Corp.
     28,018  
  120  
OBIC Co. Ltd.
     24,022  
  16  
NTT DOCOMO, Inc.
     23,064  
  400  
Tokyo Electron Ltd.
     18,448  
  700  
Chugai Pharmaceuticals Co., Ltd.
     13,412  
  936  
Nintendo Co., Ltd ADR
     12,458  
  200  
Nikon Corp. (a)
     5,905  
            711,296  
     
Netherlands—3.87%
        
  10,079  
Koninklijke Ahold NV
     135,149  
     
Norway—1.18%
        
  1,543  
Gjensidige Forsikring ASA
     22,174  
  2,173  
Orkla ASA (a)
     19,043  
            41,217  
 
 
 
 
 
     
Spain—1.87%
        
  3,477  
Indra Sistemas SA
     46,508  
  874  
Enagas SA
     18,725  
            65,233  
     
Sweden—0.19%
        
  100  
Autoliv Inc.
     6,739  
     
Switzerland—9.69%
        
  857  
Roche Holding AG
     173,269  
  1,244  
Nestle SA
     81,163  
  3,375  
UBS AG
     52,815  
  381  
Actelion Ltd.
     18,231  
  31  
Geberit AG (a)
     6,872  
  15  
Swisscom AG (a)
     6,500  
            338,850  
     
Turkey—0.22%
        
  465  
Turkcell Iletisim Hizmetleri AS ADR (a)
     7,505  
     
United Kingdom—14.60%
        
  30,909  
Tesco plc
     170,264  
  74,341  
Man Group plc
     101,958  
  5,803  
HSBC Holdings plc
     61,493  
  1,171  
GlaxoSmithKline plc ADR
     50,903  
  656  
Royal Dutch Shell plc ADR
     45,231  
  1,033  
Royal Dutch Shell plc, Class A
     35,856  
  5,263  
British Telecom Group plc
     20,079  
  454  
BT Group plc ADR
     17,266  
  346  
GlaxoSmithKline plc
     7,533  
            510,583  
     
United States—0.75%
        
  378  
Schlumberger Ltd.
     26,192  
               
     
Total common stocks (Cost $2,456,796)
     2,678,346  
               
Number of Shares
  
Investment Companies—4.49%
  
Value
  
               
     
Exchange Traded Funds—4.49%
        
  2,896  
Vanguard MSCI EAFE ETF
   $ 102,026  
  2,443  
iShares MSCI United Kingdom Index ETF
     43,827  
  209  
Vanguard MSCI Pacific ETF
     11,159  
            157,012  
               
     
Total investment companies (Cost $142,034)
     157,012  
               
Principal Amount
  
Repurchase Agreement—3.22%
  
Value
  
$ 112,420  
Fixed Income Clearing Corporation, 0.01%, dated 12/31/2012, due 01/02/2013, repurchase price $112,420, (collateralized by U.S. Treasury Note, 0.625%, due 05/31/2017) (Cost $112,420)
   $ 112,420  
     
Total Investments (Cost $2,711,250)—84.31%
     2,947,778  
     
Cash, Other Assets less Liabilities—15.69%
     548,600  
     
Net Assets—100.00%
   $ 3,496,378  
   
 
ADR American Depositary Receipt
      
   (a) Non-income producing.
      
See Notes to Schedules of Investments.
      
 

 

 
 
 

Ariel Global Equity Fund Schedule of Investments
  
December 31, 2012 (Unaudited)
  
Number of Shares
  
Common Stocks—90.24%
  
Value
  
           
   
Australia—0.35%
      
  760  
CSL Ltd.
   $ 42,908  
     
Belgium—1.11%
        
  5,314  
Mobistar SA
     136,596  
     
Brazil—0.71%
        
  3,653  
Telefonica Brasil SA ADR
     87,891  
     
Canada—1.68%
        
  3,730  
Great-West Lifeco Inc.
     91,309  
  2,005  
Power Financial Corp.
     54,907  
  631  
Tim Hortons Inc.
     30,976  
  708  
IGM Financial Inc.
     29,610  
            206,802  
     
China—3.24%
        
  3,272  
China Mobile Ltd. ADR
     192,132  
  1,199  
Baidu, Inc. ADR  (a)
     120,248  
  5,000  
China Mobile Ltd.
     58,838  
  896  
Mindray Medical International Ltd ADR
     29,299  
            400,517  
     
Czech Republic—1.11%
        
  645  
Komercni Banca AS
     136,351  
     
Finland—2.75%
        
  43,383  
Nokia Corp.
     171,437  
  42,387  
Nokia Corp. ADR
     167,429  
            338,866  
     
France—1.29%
        
  2,146  
BNP Paribas SA
     122,172  
  1,221  
Metropole Television M6 (a)
     19,194  
  606  
Ipsen SA
     18,283  
            159,649  
     
Germany—4.14%
        
  7,192  
Deutsche Boerse AG
     441,028  
  8,561  
Infineon Techologies AG (a)
     69,742  
            510,770  
     
Ireland—2.32%
        
  8,363  
Ryanair Holdings plc ADR
     286,684  
     
Italy—1.96%
        
  116,659  
Mediaset SpA
     242,365  
     
Japan—12.70%
        
  4,700  
Murata Manufacturing Co., Ltd.
     277,259  
  2,500  
Nintendo Co., Ltd.
     266,943  
  4,700  
Canon Inc.
     182,171  
  1,897  
Toyota Motor Corp. ADR
     176,895  
  4,400  
Denso Corp.
     153,226  
  4,300  
Japan Tobacco Inc.
     121,472  
  57  
NTT DOCOMO, Inc.
     82,167  
  1,590  
Canon Inc. ADR
     62,344  
  2,800  
Nomura Research Institute Ltd.
     58,326  
  600  
Daito Trust Construction Co., Ltd.
     56,706  
  1,200  
Tokyo Electron Ltd.
     55,345  
  160  
OBIC Co. Ltd.
     32,029  
  1,500  
Chugai Pharmaceuticals Co., Ltd.
     28,740  
  500  
Nikon Corp. (a)
     14,762  
            1,568,385  
     
Netherlands—3.24%
        
  29,779  
Koninklijke Ahold NV
     399,307  
     
Norway—0.94%
        
  7,873  
Orkla ASA (a)
     68,995  
  3,300  
Gjensidige Forsikring ASA
     47,423  
            116,418  
     
Spain—0.72%
        
  6,683  
Indra Sistemas SA
     89,391  
     
Sweden—0.16%
        
  300  
Autoliv Inc.
     20,217  
 
 
 
 
 
     
Switzerland—8.44%
        
  3,214  
Roche Holding AG
     649,810  
  8,829  
UBS AG
     138,164  
  1,913  
Nestle SA
     124,811  
  1,395  
Actelion Ltd.
     66,752  
  143  
Geberit AG (a)
     31,700  
  72  
Swisscom AG (a)
     31,199  
            1,042,436  
     
Turkey—0.51%
        
  3,922  
Turkcell Iletisim Hizmetleri AS ADR (a)
     63,301  
     
United Kingdom—11.35%
        
  109,643  
Tesco plc
     603,976  
  203,565  
Man Group plc
     279,189  
  4,002  
Royal Dutch Shell plc, Class A
     138,910  
  10,225  
HSBC Holdings plc
     108,352  
  2,234  
GlaxoSmithKline plc ADR
     97,112  
  16,004  
British Telecom Group plc
     61,058  
  1,334  
BT Group plc ADR
     50,732  
  577  
Royal Dutch Shell plc ADR
     39,784  
  1,018  
GlaxoSmithKline plc
     22,164  
            1,401,277  
     
United States—31.52%
        
  8,000  
Johnson & Johnson
     560,800  
  5,804  
Gilead Sciences, Inc. (a)
     426,304  
  12,330  
Microsoft Corp.
     329,581  
  5,109  
Quest Diagnostics Inc.
     297,701  
  27,099  
QLogic Corp. (a)
     263,673  
  17,384  
NVIDIA Corp.
     213,649  
  6,737  
Acacia Research Corporation (a)
     172,804  
  7,500  
Yahoo! Inc. (a)
     149,250  
  2,344  
Fluor Corp.
     137,687  
  6,721  
H&R Block, Inc.
     124,809  
  1,390  
Berkshire Hathaway Inc., Class B (a)
     124,683  
  3,662  
Broadcom Corp.
     121,615  
  1,733  
Schlumberger Ltd.
     120,080  
  1,822  
The PNC Financial Service Group, Inc. (a)
     106,241  
  1,387  
Wal-Mart Stores, Inc.
     94,635  
  1,940  
Plum Creek Timber Co. Inc.
     86,078  
  2,519  
Hospira, Inc. (a)
     78,694  
  3,315  
Cisco Systems, Inc.
     65,140  
  1,497  
Analog Devices, Inc.
     62,964  
  1,480  
General Mills, Inc.
     59,807  
  1,386  
Vertex Pharmaceuticals Inc. (a)
     58,129  
  2,125  
Vantiv, Inc. (a)
     43,393  
  759  
Coach, Inc.
     42,132  
  533  
Occidental Petroleum Corp.
     40,833  
  1,500  
General Electric Co.
     31,485  
  663  
MSCI Inc. (a)
     20,546  
  859  
TIBCO Software Inc. (a)
     18,907  
  631  
Ruckus Wireless, Inc. (a)
     14,216  
  145  
3M Co
     13,463  
  61  
W.W. Grainger, Inc.
     12,345  
            3,891,644  
               
     
Total common stocks (Cost $10,609,769)
     11,141,775  
               
Principal Amount
  
Repurchase Agreement—4.71%
  
Value
  
$ 581,347  
Fixed Income Clearing Corporation, 0.01%, dated 12/31/2012, due 01/02/2013, repurchase price $581,347, (collateralized by U.S. Treasury Note, 0.625%, due 05/31/2017) (Cost $581,347)
   $ 581,347  
     
Total Investments (Cost $11,191,116)—94.95%
     11,723,122  
     
Cash, Other Assets less Liabilities—5.05%
     623,847  
     
Net Assets—100.00%
   $ 12,346,969  
   
 
ADR American Depositary Receipt
      
(a) Non-income producing.
      
See notes to Schedule of Investments.
  
 

 

 
 
 
 
 Notes to Schedules of Investments    December 31, 2012 (Unaudited)
 
Note One | Organization
Ariel Investment Trust (the “Trust”) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.  Ariel Fund, Ariel Appreciation Fund, Ariel Focus Fund, Ariel Discovery Fund, Ariel International Equity Fund and Ariel Global Equity Fund (the “Funds”) are series of the Trust.  Ariel Focus Fund is a non-diversified Fund, all other Funds are diversified.  The Funds issue two classes of shares: an Investor Class and an Institutional Class.

Note Two | Significant accounting policies
The following is a summary of significant policies related to investments of the Funds held at December 31, 2012.

Securities valuation – Securities for which market quotations are readily available are valued at the last sale price on the national securities exchange on which such securities are primarily traded and, in the case of securities reported on the Nasdaq system, are valued based on the Nasdaq Official Closing Price. If a closing price is not reported, equity securities for which reliable bid and ask quotations are available are valued at the mean between bid and ask prices.

Certain common stocks that trade on foreign exchanges are subject to valuation adjustments to account for the market movement between the close of the foreign market in which the security is traded and the close of the New York Stock Exchange. These securities are valued by pricing vendors that consider the correlation patterns of price movements of the foreign security to the intraday trading in the U.S. markets.

Debt obligations having a maturity of 60 days or less are valued at amortized cost, which approximates market value.  Securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board of Trustees.

Fair value measurements – Accounting Standards CodificationTM (ASC) 820-10 establishes a three-tier framework for measuring fair value based on a hierarchy of inputs.  The hierarchy distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ investments and are summarized below:

Level 1 – quoted prices in active markets for identical securities
Level 2 – other significant observable inputs (including quoted prices for similar securities, “quoted” prices in inactive markets, dealer indications, and inputs corroborated by observable market data)
Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses
valuation techniques to discount estimated future cash flows to present value.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2012 in valuing the Funds’ investments carried at fair value:

   
Ariel 
Fund
    
Ariel
Appreciation
Fund
    
Ariel Focus
Fund
    
Ariel
Discovery 
Fund
  
Level 1
   $ 1,612,266,424     $ 1,272,774,708     $ 41,791,446     $ 9,216,598  
Level 2*
     14,386,967       9,478,355       -       460,523  
Level 3
     -       -       -       -  
Fair Value at
12/31/2012
                                
  $ 1,626,653,391     $ 1,282,253,063     $ 41,791,446     $ 9,677,121  
*As of December 31, 2012, Level 2 securities held are repurchase agreements.  See Schedule of Investments.

   
Ariel
International
Equity Fund
    
Ariel Global
Equity Fund
  
Level 1
   $ 795,896     $ 5,492,513  
Level 2**
     2,151,882       6,230,609  
Level 3
     -       -  
Fair Value at 12/31/2012
                
  $ 2,947778     $ 11,723,122  
**As of December 31, 2012, Level 2 securities held are forward currency contracts, which are reflected at the unrealized depreciation on the contract, repurchase agreements and certain foreign stocks.  See schedule of investments.

   
Ariel International Equity Fund
    
Ariel Global
Equity Fund
  
Transfers out of Level 1
   $ (1,922,734 )   $ (5,177,602 )
Transfers into Level 2
     1,922,734       5,177,602  
 
Transfers were made into Level 2 from Level 1 due to valuation adjustments on foreign common stocks to account for the market movement between the close of a foreign market and the close of the New York Stock Exchange.  There were no transfers into Level 1 or out of Level 2.  Transfers between levels are recognized at the end of the reporting period.

Forward currency contracts derive their value from underlying exchange rates.  These instruments are normally valued by pricing vendors using pricing models.  The pricing models typically use inputs that are observed from active markets such as exchange rates.  As such, forward currency contracts were categorized as Level 2.


 
 
 
 
 Notes to Schedules of Investments    December 31, 2012 (Unaudited)
                 
Foreign Currency – Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party.  Realized gains (losses) and unrealized appreciation (depreciation) on securities include the effects of changes in security prices.  Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).

Europe Risk – Ariel International Equity Fund and Ariel Global Equity Fund invest in securities issued by companies operating in Europe and therefore are subject to certain risks associated specifically with Europe. A significant number of countries in Europe are member states in the European Union, and the member states no longer control their own monetary policies.  The recent rapid political and social changes throughout Europe make the extent and nature of future economic development in the region and their effect on securities issued by European companies impossible to predict.
 
 
Forward Currency Contracts – Ariel International Equity Fund and Ariel Global Equity Fund enter into forward currency contracts to provide the appropriate currency exposure related to protecting the value of securities and related receivables and payables against changes in foreign exchange rates.  The primary risk associated with a Fund’s use of these contracts is that a counterparty will fail to fulfill its obligation to pay gains due to the Fund under the contracts.  Counterparty risk is mitigated by entering into forward currency contracts only with highly rated counterparties.  Forward currency contracts are subject to the translations of foreign exchange rate fluctuations. Contracts are “marked-to-market” daily and any resulting unrealized gains (losses) are recorded as unrealized appreciation (depreciation) on foreign currency translations. The Funds record realized gains (losses) on the Statement of Operations as realized gain (loss) on foreign currency transactions at the time the forward currency contract is settled or closed. 

Repurchase agreements – The Funds may enter into repurchase agreements with recognized financial institutions and in all instances hold underlying securities as collateral with a value at least equal to the total repurchase price such financial institutions have agreed to pay.

Securities transactions – Securities transactions are accounted for on a trade date basis.
 
Note Three | Transactions with affiliated companies

If a Fund’s holding represents ownership of 5% or more of the voting securities of a company, the company is deemed to be an affiliate as defined in the 1940 Act.  Ariel Fund had the following transactions during the three months ended December 31, 2012, with affiliated companies:

 
 
Share Activity
  
Three Months Ended
December 31, 2012
Security Name
Balance
September 30,
2012
Purchases
Sales
Balance
December 31,
2012
  
Market Value
Dividends
Credited to
Income
Amount of
Gain (Loss)
Realized on
Sale of Shares
Contango Oil & Gas Co.
906,847
155,838
-
1,062,685
  
45,015,337
1,985,094
-
Symmetry Medical Inc.
2,267,400
72,474
-
2,339,874
  
 24,615,474
-
           -
           
$ 69,630,811
$1,985,094
     $-
 
 


 


 
 
 
 
 Notes to Schedules of Investments    December 31, 2012 (Unaudited)
                                                                                                                                                 
Note Four | Federal Income Taxes

At December 31, 2012, the cost of investment securities for tax purposes was as follows:
 
Ariel Fund
Ariel Appreciation Fund
Ariel Focus Fund
Ariel Discovery Fund
Cost of investments
      $1,093,928,876
       $880,647,892
$37,899,830
$9,161,727
         
Gross unrealized appreciation
        $560,831,394
   $440,457,912
 $7,393,303
 $1,244,030
Gross unrealized depreciation
          (28,106,879)
      (38,852,741)
     (3,501,687)
     (728,636)
Net unrealized appreciation
         $532,724,515
   $401,605,171
   $3,891,616
   $515,394

 
Ariel International Equity Fund
Ariel Global Equity Fund
Cost of investments
      $2,711,250
       $11,191,116
     
Gross unrealized appreciation
        $333,312
   $948,392
Gross unrealized depreciation
          (96,784)
      (416,386)
Net unrealized appreciation
         $236,528
   $532,006
Because tax adjustments are calculated annually, the above table does not reflect tax adjustments.  For the previous fiscal year's federal income tax information, please refer to the Notes to Financial Statements section in the Fund's most recent semi-annual or annual report.

Note Five | Forward currency contracts

At December 31, 2012, the open forward currency contracts (State Street Bank and Trust as counterparty) are:
 
Contract Settlement Date
 
Currency to be
Received
 
Amount to be
Received
 
Currency to be
Delivered
 
Amount to be
Delivered
Unrealized
Appreciation
(Depreciation)
Ariel International Equity Fund
          
01/17/2013
AUD
44,913
CAD
44,832
$1,534
02/11/2013
AUD
21,856
CAD
22,554
(25)
02/11/2013
SEK
341,977
EUR
39,896
(140)
02/11/2013
SEK
99,622
EUR
11,622
(41)
02/11/2013
SEK
99,145
EUR
11,567
(41)
02/13/2013
SEK
87,529
JPY
1,071,979
1,069
02/21/2013
SGD
20,264
EUR
12,966
(534)
02/21/2013
SGD
22,596
EUR
14,458
(596)
03/25/2013
DKK
83,896
CHF
13,588
(15)
03/25/2013
AUD
10,816
JPY
951,040
181
03/25/2013
GBP
9,174
CHF
13,588
21
03/25/2013
SGD
9,155
JPY
634,027
171
03/25/2013
AUD
7,158
CHF
6,794
(50)
03/25/2013
AUD
16,440
CHF
15,594
(104)
         
$1,430
Ariel Global Equity Fund
          
01/17/2013
USD
109,397
JPY
8,607,212
$10,038
01/17/2013
USD
115,950
JPY
9,122,799
10,639
02/11/2013
CAD
27,917
EUR
21,884
(854)
02/11/2013
CAD
225,370
EUR
176,673
(6,890)
02/11/2013
SEK
754,851
EUR
88,025
(259)
02/11/2013
AUD
109,181
EUR
88,330
(3,578)
02/11/2013
USD
111,866
EUR
87,538
(3,718)
02/21/2013
SGD
90,270
EUR
57,775
(2,400)
03/25/2013
DKK
254,275
EUR
34,108
(8)
03/25/2013
HKD
875,799
EUR
85,271
389
03/25/2013
AUD
54,239
EUR
42,635
(328)
03/25/2013
AUD
136,711
CHF
129,761
(959)
03/25/2013
ZAR
1,006,303
GBP
72,045
384
03/25/2013
USD
120,732
GBP
74,244
158
03/25/2013
USD
122,933
EUR
92,737
435
03/25/2013
USD
112,689
JPY
9,508,848
2,863
03/25/2013
USD
123,017
CHF
112,056
319
03/25/2013
USD
202,680
JPY
17,102,448
5,149
03/25/2013
USD
112,326
CHF
102,317
292
03/25/2013
USD
113,035
EUR
85,271
400
         
$12,072


 
 


 
 
 
 
Item 2. Controls and Procedures.
 
(a) 
The registrant’s certifying officers have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective based on their evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this document.

(b)
There were no significant changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act), or in other factors that could significantly affect this control, that occurred during the registrant's last fiscal quarter, including any corrective actions with regard to significant deficiencies and material weaknesses.


Item 3. Exhibits.
 
(a) Exhibit 99.Cert. – Certification for each principal executive and principal financial officer of
      the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).

 
 
 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Ariel Investment Trust

 
By:   /s/ Mellody Hobson                                                  
         Mellody Hobson
                         President and Principal Executive Officer

Date:         February 8, 2013                                                


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:   /s/ Mellody Hobson                                                   
                         Mellody Hobson
         President and Principal Executive Officer

Date:         February 8, 2013                                                

 
By:    /s/ Anita Zagrodnik                                                   
         Anita Zagrodnik
         Treasurer and Chief Financial Officer

Date:         February 8, 2013                                                 

 
 
 
EX-99.CERT 2 certs.htm OFFICER CERTIFICATIONS certs.htm
 
EXHIBIT 99.CERT
 

CERTIFICATIONS BY PRINCIPAL EXECUTIVE OFFICER
AND PRINCIPAL FINANCIAL OFFICER OF
ARIEL INVESTMENT TRUST
PURSUANT TO RULE 30a-2 OF
THE INVESTMENT COMPANY ACT OF 1940



I, Mellody Hobson, Principal Executive Officer of Ariel Investment Trust, certify that:

1.  
I have reviewed this report on Form N-Q of Ariel Investment Trust;

2.  
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  
Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.  
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have:

(a)   
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation;

(d)   
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.  
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)   
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b)   
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:           February 8, 2013           
/s/ Mellody Hobson
 
Mellody Hobson
Principal Executive Officer
 

 
 
 

 
I, Anita Zagrodnik, Chief Financial Officer of Ariel Investment Trust certify that:

1.  
I have reviewed this report on Form N-Q of Ariel Investment Trust;

2.  
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  
Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.  
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have:

(a)   
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation;

(d)   
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.  
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)   
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b)   
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:          February 8, 2013          
/s/ Anita Zagrodnik
 
Anita Zagrodnik
Treasurer and Chief Financial Officer