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, 2015
Date of reporting period: December 31, 2014

 
 
 
 
 
Item 1. Schedule of Investments.
 

 
Ariel Fund schedule of investments
   12.31.14 (UNAUDITED)  
 
Number of shares
  
Common stocks—96.53%
  
Value
  
             
   
Consumer discretionary & services—26.73%
      
    2,515,621  
Gannett Co., Inc.
   $ 80,323,779  
    931,640  
Royal Caribbean Cruises Ltd.
     76,795,085  
    2,320,896  
International Speedway Corp., Class A
     73,456,358  
    3,415,066  
Interpublic Group of Cos., Inc.
     70,930,921  
    1,301,708  
Meredith Corp.
     70,708,779  
    1,786,754  
Newell Rubbermaid Inc.
     68,057,460  
    1,416,965  
Sotheby's
     61,184,549  
    366,304  
Mohawk Industries, Inc.(a)
     56,908,989  
    577,274  
Madison Square Garden Co., Class A(a)
     43,445,641  
    31,183  
Graham Holdings Co., Class B
     26,933,069  
              628,744,630  
       
Consumer staples—3.26%
        
    758,445  
J.M. Smucker Co.
     76,587,776  
                 
       
Energy—2.34%
        
    1,884,817  
Contango Oil & Gas Co.(a)(b)
     55,112,049  
                 
       
Financial services—30.60%
        
    2,586,988  
First American Financial Corp.
     87,698,893  
    3,567,339  
KKR & Co. L.P.
     82,797,938  
    1,624,903  
Lazard Ltd, Class A
     81,293,897  
    4,418,855  
Western Union Co.
     79,141,693  
    515,299  
JLL
     77,258,779  
    2,200,353  
CBRE Group, Inc., Class A(a)
     75,362,090  
    561,678  
Dun & Bradstreet Corp.
     67,940,571  
    3,791,116  
Janus Capital Group Inc.
     61,150,701  
    767,258  
Fair Isaac Corp.
     55,472,753  
    638,860  
City National Corp.
     51,626,277  
              719,743,592  
       
Health care—10.35%
        
    1,109,050  
Hospira, Inc.(a)
     67,929,313  
    1,036,626  
Charles River Laboratories Intl, Inc.(a)
     65,970,879  
    549,100  
Laboratory Corp. of America Holdings(a)
     59,247,890  
    416,083  
Bio-Rad Laboratories, Inc., Class A(a)
     50,162,966  
              243,311,048  
       
Materials & processing—4.71%
        
    1,785,997  
Simpson Manufacturing Co., Inc.
     61,795,496  
    1,905,382  
U.S. Silica Holdings, Inc.
     48,949,264  
              110,744,760  
       
Producer durables—15.53%
        
    2,771,862  
Brady Corp., Class A
     75,782,707  
    1,145,260  
Bristow Group Inc.
     75,346,655  
    2,046,541  
Kennametal Inc.
     73,245,702  
    706,816  
MTS Systems Corp.
     53,032,405  
    335,613  
Snap-on Inc.
     45,891,722  
    362,266  
Littelfuse, Inc.
     35,020,254  
    89,576  
IDEX Corp.
     6,972,596  
              365,292,041  
       
Technology—3.01%
        
    800,203  
Anixter Intl Inc.(a)
     70,785,957  
                 
                 
       
Total common stocks (Cost $1,335,134,197)
     2,270,321,853  
 
 
 
 
 
   
 
            
 
Principal amount
  
Repurchase agreement—3.82%
  
Value
  
                 
    90,010,279  
Fixed Income Clearing Corporation, 0.00%, dated 12/31/2014, due 01/02/2015, repurchase price $90,010,279, (collaterized by U.S. Treasury Note, value $91,814,649, 2.13%, due 08/31/2020) (Cost $90,010,279)
   $ 90,010,279  
       
Total Investments—100.35% (Cost $1,425,144,476)
     2,360,332,132  
       
Liabilities less Other Assets—(0.35)%
     (8,333,505 )
       
Net Assets—100.00%
   $ 2,351,998,627  
                 
(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
   12.31.14 (UNAUDITED)  
 
Number of shares
  
Common stocks—98.10%
  
Value
  
             
   
Consumer discretionary & services—24.57%
      
    3,738,530  
Interpublic Group of Cos., Inc.
   $ 77,649,268  
    1,155,700  
CBS Corp., Class B
     63,956,438  
    802,600  
Omnicom Group Inc.
     62,177,422  
    707,600  
Nordstrom, Inc.
     56,176,364  
    1,577,656  
International Speedway Corp., Class A
     49,932,812  
    603,300  
Viacom, Inc., Class B
     45,398,325  
    988,700  
Newell Rubbermaid Inc.
     37,659,583  
    899,700  
Coach, Inc.
     33,792,732  
    847,500  
Gannett Co., Inc.
     27,060,675  
    556,900  
Sotheby's
     24,046,942  
    262,100  
Madison Square Garden Co., Class A(a)
     19,725,646  
    80,400  
Tiffany & Co.
     8,591,544  
              506,167,751  
       
Consumer staples—3.25%
        
    662,275  
J.M. Smucker Co.
     66,876,529  
                 
       
Energy—2.07%
        
    387,600  
National Oilwell Varco
     25,399,428  
    586,482  
Contango Oil & Gas Co.(a)
     17,148,734  
              42,548,162  
       
Financial services—35.55%
        
    3,012,100  
First American Financial Corp.
     102,110,190  
    5,373,100  
Western Union Co.
     96,232,221  
    1,025,500  
Northern Trust Corp.
     69,118,700  
    1,248,300  
Franklin Resources, Inc.
     69,118,371  
    1,376,020  
Lazard Ltd, Class A
     68,842,281  
    1,095,900  
AFLAC Inc.
     66,948,531  
    391,500  
JLL
     58,697,595  
    638,000  
City National Corp.
     51,556,780  
    1,120,100  
Blackstone Group L.P.
     37,892,983  
    1,516,168  
KKR & Co. L.P.
     35,190,259  
    790,150  
CBRE Group, Inc., Class A(a)
     27,062,638  
    311,500  
T. Rowe Price Group, Inc.
     26,745,390  
    1,405,442  
Janus Capital Group Inc.
     22,669,779  
              732,185,718  
       
Health care—14.10%
        
    664,200  
Zimmer Holdings, Inc.
     75,333,564  
    817,300  
St. Jude Medical, Inc.
     53,149,019  
    389,754  
Thermo Fisher Scientific Inc.
     48,832,279  
    443,200  
Laboratory Corp. of America Holdings(a)
     47,821,280  
    644,400  
Hospira, Inc.(a)
     39,469,500  
    214,725  
Bio-Rad Laboratories, Inc., Class A(a)
     25,887,246  
              290,492,888  
       
Producer durables—18.56%
        
    1,026,599  
Stanley Black & Decker, Inc.
     98,635,632  
    1,368,518  
Bristow Group Inc.
     90,034,799  
    1,783,900  
Kennametal Inc.
     63,845,781  
    610,950  
Illinois Tool Works Inc.
     57,856,965  
    332,100  
Snap-on Inc.
     45,411,354  
    234,600  
Towers Watson, Class A
     26,549,682  
              382,334,213  
                 
       
Total common stocks (Cost $1,191,624,418)
     2,020,605,261  
 
 
 
 
 
                 
 
Principal amount
  
Repurchase agreement—2.03%
  
Value
  
                 
    41,910,666  
Fixed Income Clearing Corporation, 0.00%, dated 12/31/2014, due 01/02/2015, repurchase price $41,910,666, (collaterized by U.S. Treasury Note, value $42,753,230, 2.13%, due 08/31/2020) (Cost $41,910,666)
   $ 41,910,666  
       
Total Investments—100.13% (Cost $1,233,535,084)
     2,062,515,927  
       
Liabilities less Other Assets—(0.13)%
     (2,682,027 )
       
Net Assets—100.00%
   $ 2,059,833,900  
                 
(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
   12.31.14 (UNAUDITED)  
 
Number of shares
  
Common stocks—99.49%
  
Value
  
             
   
Consumer discretionary & services—16.58%
      
    64,800  
Newell Rubbermaid Inc.
   $ 2,468,232  
    152,000  
Pier 1 Imports, Inc.
     2,340,800  
    30,000  
Bed Bath & Beyond Inc.(a)
     2,285,100  
    21,700  
Target Corp.
     1,647,247  
    38,500  
Apollo Education Group, Inc., Class A(a)
     1,313,235  
    60,200  
International Game Technology
     1,038,450  
              11,093,064  
       
Consumer staples—4.61%
        
    32,000  
CVS Health
     3,081,920  
                 
       
Energy—13.01%
        
    47,500  
National Oilwell Varco
     3,112,675  
    29,700  
Exxon Mobil Corp.
     2,745,765  
    76,500  
Chesapeake Energy Corp.
     1,497,105  
    21,500  
Apache Corp.
     1,347,405  
              8,702,950  
       
Financial services—17.08%
        
    193,000  
Western Union Co.
     3,456,630  
    11,900  
Goldman Sachs Group, Inc.
     2,306,577  
    56,250  
Morgan Stanley
     2,182,500  
    29,000  
JPMorgan Chase & Co.
     1,814,820  
    41,100  
Bank of New York Mellon Corp.
     1,667,427  
              11,427,954  
       
Health care—15.23%
        
    21,900  
Johnson & Johnson
     2,290,083  
    19,600  
Zimmer Holdings, Inc.
     2,223,032  
    19,800  
Laboratory Corp. of America Holdings(a)
     2,136,420  
    87,300  
Hanger, Inc.(a)
     1,911,870  
    22,200  
Baxter Intl Inc.
     1,627,038  
              10,188,443  
       
Materials & processing—5.71%
        
    57,300  
Mosiac Co.
     2,615,745  
    111,982  
Barrick Gold Corp.
     1,203,807  
              3,819,552  
       
Producer durables—14.94%
        
    40,700  
Stanley Black & Decker, Inc.
     3,910,456  
    16,100  
Lockheed Martin Corp.
     3,100,377  
    55,400  
Kennametal Inc.
     1,982,766  
    7,300  
Snap-on Inc.
     998,202  
              9,991,801  
       
Technology—12.33%
        
    78,000  
Oracle Corp.
     3,507,660  
    18,100  
International Business Machines Corp.
     2,903,964  
    39,600  
Microsoft Corp.
     1,839,420  
              8,251,044  
                 
       
Total common stocks (Cost $52,613,907)
     66,556,728  
                 
 
Principal amount
  
Repurchase agreement—0.46%
  
Value
  
                 
    308,721  
Fixed Income Clearing Corporation, 0.00%, dated 12/31/2014, due 01/02/2015, repurchase price $308,721, (collaterized by U.S. Treasury Note, value $317,715, 2.13%, due 08/31/2020) (Cost $308,721)
   $ 308,721  
       
Total Investments—99.95% (Cost $52,922,628)
     66,865,449  
       
Other Assets less Liabilities—0.05%
     31,800  
       
Net Assets—100.00%
   $ 66,897,249  
                 
(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
   12.31.14 (UNAUDITED)  
 
Number of shares
  
Common stocks—95.90%
  
Value
  
             
   
Consumer discretionary & services—15.72%
      
    119,963  
XO Group Inc.(a)
   $ 2,184,526  
    146,155  
Rosetta Stone Inc.(a)
     1,426,473  
    277,000  
Century Casinos, Inc.(a)
     1,398,850  
    43,900  
International Speedway Corp., Class A
     1,389,435  
    39,900  
Superior Industries Intl, Inc.
     789,621  
              7,188,905  
       
Energy—8.44%
        
    75,254  
Contango Oil & Gas Co.(a)
     2,200,427  
    58,700  
Gulf Island Fabrication, Inc.
     1,138,193  
    87,700  
Mitcham Industries, Inc.(a)
     520,061  
              3,858,681  
       
Financial services—18.58%
        
    621,073  
Cowen Group, Inc., Class A(a)
     2,981,150  
    63,200  
First American Financial Corp.
     2,142,480  
    43,700  
Capital Southwest Corp.
     1,656,667  
    80,300  
AV Homes, Inc.(a)
     1,169,971  
    16,700  
MB Financial, Inc.
     548,762  
              8,499,030  
       
Health care—3.24%
        
    83,155  
POZEN Inc.(a)
     665,240  
    437,800  
Vical Inc.(a)
     459,690  
    47,700  
Kindred Biosciences, Inc.(a)
     355,365  
              1,480,295  
                 
       
Materials & processing—8.95%
        
    99,431  
Landec Corp.(a)
     1,373,142  
    966,894  
Rentech, Inc.(a)
     1,218,286  
    160,291  
Orion Energy Systems, Inc.(a)
     881,601  
    17,973  
Simpson Manufacturing Co., Inc.
     621,866  
              4,094,895  
       
Producer durables—11.20%
        
    150,730  
Erickson Inc.(a)
     1,257,088  
    159,700  
Furmanite Corp.(a)
     1,248,854  
    224,425  
Spartan Motors Inc.
     1,180,476  
    21,939  
Team, Inc.(a)
     887,652  
    22,500  
Brink's Co.
     549,225  
              5,123,295  
       
Technology—19.72%
        
    174,780  
PCTEL, Inc.
     1,513,595  
    207,300  
RealNetworks, Inc.(a)
     1,459,392  
    350,900  
Imation Corp.(a)
     1,329,911  
    93,500  
Brooks Automation, Inc.
     1,192,125  
    224,700  
Rubicon Technology, Inc.(a)
     1,026,879  
    132,140  
Sigma Designs, Inc.(a)
     977,836  
    129,015  
Telenav Inc.(a)
     860,530  
    58,800  
Multi-Fineline Electronix, Inc.(a)
     660,324  
              9,020,592  
       
Utilities—10.05%
        
    408,312  
ORBCOMM, Inc.(a)
     2,670,360  
    1,396,612  
Pendrell Corp.(a)
     1,927,325  
              4,597,685  
                 
       
Total common stocks (Cost $43,555,655)
     43,863,378  
 
 
 
 
 
                 
 
Principal amount
  
Repurchase agreement—3.82%
  
Value
  
                 
    1,746,308  
Fixed Income Clearing Corporation, 0.00%, dated 12/31/2014, due 01/02/2015, repurchase price $1,746,308, (collaterized by U.S. Treasury Note, value $1,783,306, 2.13%, due 08/31/2020) (Cost $1,746,308)
   $ 1,746,308  
       
Total Investments—99.72% (Cost $45,301,963)
     45,609,686  
       
Other Assets less Liabilities—0.28%
     129,164  
       
Net Assets—100.00%
   $ 45,738,850  
                 
(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 Fund schedule of investments
   12.31.14 (UNAUDITED)  
 
Number of shares
  
Common stocks—93.18%
  
Value
  
             
   
Austria—0.66%
      
    1,910  
Vienna Insurance Group
   $ 85,365  
       
Canada—0.39%
        
    95  
Fairfax Financial Holdings Ltd.
     49,780  
       
China—6.32%
        
    9,562  
China Mobile Ltd. ADR
     562,437  
    887  
Baidu, Inc. ADR(a)
     202,209  
    4,500  
China Mobile Ltd.
     52,824  
              817,470  
       
Denmark—0.08%
        
    278  
Vestas Wind Systems AS(a)
     10,096  
       
Finland—4.58%
        
    62,101  
Nokia Corp. ADR
     488,114  
    6,962  
Nokia Corp.
     55,061  
    2,038  
Nokian Renkaat Corp.
     49,714  
              592,889  
       
France—6.54%
        
    9,194  
Eutelsat Communications
     297,331  
    3,520  
BNP Paribas SA
     207,800  
    2,268  
Technip SA
     135,099  
    831  
L'Air Liquide SA
     102,828  
    824  
Michelin (CGDE)
     74,380  
    990  
Societe Television Francaise 1
     15,220  
    134  
Euler Hermes Group
     13,876  
              846,534  
       
Germany—12.46%
        
    9,751  
Deutsche Boerse AG
     692,925  
    75,168  
Telefonica Deutschland GmgH & Co.
     398,379  
    11,251  
Dialog Semiconductor plc(a)
     392,836  
    698  
SAP SE
     48,740  
    418  
MTU Aero Engines AG
     36,327  
    941  
Deutsche Post AG
     30,547  
    156  
Beiersdorf AG
     12,666  
              1,612,420  
       
Hong Kong—0.89%
        
    32,085  
Yue Yuen Industrial Holdings Ltd.
     115,165  
       
Ireland—3.61%
        
    6,562  
Ryanair Holdings plc ADR(a)
     467,674  
       
Israel—0.21%
        
    4,890  
Bank Leumi Le-Israel BM(a)
     16,705  
    996  
Mizrahi Tefahot Bank LTD
     10,424  
              27,129  
       
Italy—2.28%
        
    26,011  
Snam SpA
     128,734  
    30,109  
Mediaset SpA(a)
     123,885  
    1,062  
DiaSorin SpA
     42,786  
              295,405  
 
 
 
 
 
       
Japan—14.92%
        
    3,900  
Shimamura Co., Ltd.
     336,558  
    10,100  
Canon Inc.
     321,016  
    2,800  
Nintendo Co., Ltd.
     292,201  
    4,400  
Toyota Motor Corp.
     274,196  
    2,200  
Daito Trust Construction Co., Ltd.
     249,563  
    4,200  
Japan Tobacco Inc.
     115,596  
    1,200  
Tokyo Electron Ltd.
     90,996  
    1,700  
Denso Corp.
     79,233  
    2,100  
OBIC Co., Ltd.
     68,144  
    4,900  
Nikon Corp.
     65,106  
    532  
Canon Inc. ADR
     16,843  
    936  
Nintendo Co., Ltd. ADR
     12,121  
    1,000  
Shizuoka Bank Ltd.
     9,144  
              1,930,717  
       
Luxembourg—0.50%
        
    400  
RTL Group(b)
     37,611  
    283  
RTL Group(c)
     26,986  
              64,597  
       
Macau—0.10%
        
    4,800  
Wynn Macau Ltd
     13,422  
       
Netherlands—5.43%
        
    37,647  
Ahold N.V.
     669,095  
    404  
Gemalto N.V.
     32,971  
              702,066  
       
Portugal—0.14%
        
    1,805  
Jeronimo Martins SGPS SA
     18,087  
       
Singapore—0.43%
        
    3,000  
United Overseas Bank Ltd.
     55,362  
       
Spain—0.80%
        
    1,682  
Tecnicas Reunidas SA
     73,519  
    6,133  
Banco Popular Español SA
     30,572  
              104,091  
       
Sweden—0.52%
        
    1,629  
H&M Hennes & Mauritz AB, Class B
     67,677  
       
Switzerland—14.37%
        
    2,417  
Roche Holding AG
     654,867  
    4,917  
Nestle SA
     358,454  
    892  
Zurich Insurance Group Ltd
     278,752  
    524  
Swisscom AG
     274,962  
    10,179  
UBS AG
     174,974  
    120  
Banque Cantonale Vaudoise
     64,831  
    248  
Kuehne & Nagel Intl AG
     33,687  
    9  
SGS SA
     18,378  
              1,858,905  
       
United Kingdom—15.77%
        
    13,249  
GlaxoSmithKline plc ADR
     566,262  
    34,110  
HSBC Holdings plc
     322,331  
    4,194  
Royal Dutch Shell plc ADR
     280,788  
    3,214  
Reckitt Benckiser Group plc
     260,315  
    21,851  
British Telecom Group plc
     135,915  
    6,200  
GlaxoSmithKline plc
     133,012  
    2,867  
Royal Dutch Shell plc, Class A
     95,680  
    868  
British American Tobacco plc ADR
     93,588  
    3,283  
IG Group Holdings plc
     36,686  
    4,643  
Sage Group plc
     33,535  
    454  
BT Group plc ADR
     28,143  
    568  
HSBC Holdings plc ADR
     26,827  
    680  
Diageo PLC
     19,480  
    3,214  
Indivior PLC(a)
     7,484  
              2,040,046  
 
 
 
 
 
       
United States—2.18%
        
    974  
Harman Intl Industries, Inc.
     103,936  
    822  
Philip Morris Intl, Inc.
     66,952  
    1,805  
Tumi Holdings Inc.(a)
     42,833  
    325  
Core Laboratories N.V.
     39,112  
    2,469  
Ruckus Wireless, Inc.(a)
     29,677  
              282,510  
                 
       
Total common stocks (Cost $11,258,660)
     12,057,407  
                 
 
Number of shares
  
Investment companies—0.85%
  
Value
  
       
Exchange Traded Funds—0.85%
        
    2,896  
Vanguard MSCI EAFE ETF
   $ 109,700  
       
Total investment companies (Cost $88,905)
     109,700  
       
Total Investments—94.03% (Cost $11,347,565)
     12,167,107  
       
Cash, Other Assets less Liabilities—5.97%
     773,200  
       
Net Assets—100.00%
   $ 12,940,307  
   
(a) Non-income producing.
          
(b) This security was purchased through more than one stock exchange and this line represents shares purchased through Euronext Brussels.
  
(c) This security was purchased through more than one stock exchange and this line represents shares purchased through Xetra.
  
ADR American Depositary Receipt
        
See Notes to Schedules of Investments.
        

 
 
 
 
 
 
Ariel Global Fund schedule of investments
   12.31.14 (UNAUDITED)  
 
Number of shares
  
Common stocks—93.10%
  
Value
  
             
   
Brazil—0.89%
      
    14,966  
Itau Unibanco Holding SA ADR
   $ 194,708  
    22,338  
Souza Cruz SA
     162,668  
    8,279  
Telefonica Brasil SA ADR
     146,373  
              503,749  
       
Canada—0.27%
        
    289  
Fairfax Financial Holdings Ltd.
     151,435  
       
Chile—0.96%
        
    27,437  
Banco Santander-Chile ADR
     541,058  
       
China—7.42%
        
    160,000  
China Mobile Ltd.
     1,878,181  
    5,791  
Baidu, Inc. ADR(a)
     1,320,174  
    17,000  
China Mobile Ltd. ADR
     999,940  
              4,198,295  
       
Finland—1.58%
        
    72,459  
Nokia Corp. ADR
     569,528  
    34,994  
Nokia Corp.
     276,761  
    1,836  
Nokian Renkaat Corp.
     44,787  
              891,076  
       
France—2.33%
        
    7,553  
BNP Paribas SA
     445,884  
    11,364  
Eutelsat Communications
     367,508  
    4,949  
Technip SA
     294,800  
    2,344  
Michelin (CGDE)
     211,585  
              1,319,777  
       
Germany—5.40%
        
    24,957  
Deutsche Boerse AG
     1,773,492  
    152,833  
Telefonica Deutschland GmgH & Co.
     809,991  
    13,476  
Dialog Semiconductor plc(a)
     470,524  
              3,054,007  
       
Hong Kong—0.39%
        
    61,000  
Yue Yuen Industrial Holdings Ltd.
     218,951  
       
Ireland—0.44%
        
    3,460  
Ryanair Holdings plc ADR(a)
     246,594  
       
Israel—0.07%
        
    10,701  
Bank Leumi Le-Israel BM(a)
     36,557  
       
Italy—0.76%
        
    56,889  
Snam SpA
     281,556  
    35,638  
Mediaset SpA(a)
     146,634  
              428,190  
       
Japan—7.58%
        
    9,900  
Shimamura Co., Ltd.
     854,339  
    6,350  
Nintendo Co., Ltd.
     662,671  
    5,400  
Daito Trust Construction Co., Ltd.
     612,564  
    18,600  
Canon Inc.
     591,178  
    8,000  
Toyota Motor Corp.
     498,539  
    15,100  
Japan Tobacco Inc.
     415,594  
    2,900  
Tokyo Electron Ltd.
     219,908  
    3,200  
Denso Corp.
     149,145  
    1,155  
Toyota Motor Corp. ADR
     144,929  
    10,600  
Nikon Corp.
     140,841  
              4,289,708  
       
Mexico—0.10%
        
    5,390  
Santander Mexico Financial Group ADR
     55,840  
       
Netherlands—3.06%
        
    97,343  
Ahold N.V.
     1,730,063  
       
Portugal—0.09%
        
    5,136  
Jeronimo Martins SGPS SA
     51,465  
       
Singapore—0.26%
        
    8,000  
United Overseas Bank Ltd.
     147,632  
       
Spain—0.42%
        
    5,440  
Tecnicas Reunidas SA
     237,780  
       
Switzerland—8.01%
        
    9,289  
Roche Holding AG
     2,516,782  
    8,451  
Nestle SA
     616,086  
    1,907  
Zurich Insurance Group Ltd.
     595,942  
    1,076  
Swisscom AG
     564,617  
    12,423  
UBS AG
     213,548  
    13  
SGS SA
     26,546  
              4,533,521  
 
 
 
 
 
       
Turkey—0.47%
        
    6,347  
BIM Birlesik Magazalar A.S.
     135,730  
    8,625  
Turkcell Iletisim Hizmetleri AS ADR(a)
     130,410  
              266,140  
       
United Kingdom—9.16%
        
    42,493  
GlaxoSmithKline plc ADR
     1,816,151  
    48,159  
GlaxoSmithKline plc
     1,033,184  
    14,261  
Royal Dutch Shell plc ADR
     954,774  
    68,951  
HSBC Holdings plc
     651,570  
    5,236  
Reckitt Benckiser Group plc
     424,084  
    27,462  
British Telecom Group plc
     170,815  
    2,549  
HSBC Holdings plc ADR
     120,389  
    5,236  
Indivior PLC(a)
     12,192  
              5,183,159  
       
United States—43.44%
        
    68,682  
Microsoft Corp.
     3,190,279  
    33,282  
Gilead Sciences, Inc.(a)
     3,137,161  
    25,640  
Johnson & Johnson
     2,681,175  
    19,692  
Harman Intl Industries, Inc.
     2,101,333  
    61,910  
Tumi Holdings Inc.(a)
     1,469,124  
    76,398  
Acacia Research Corp.
     1,294,182  
    17,779  
Quest Diagnostics Inc.
     1,192,260  
    27,464  
Broadcom Corp., Class A
     1,190,015  
    20,607  
U.S. Bancorp
     926,285  
    63,521  
QLogic Corp.(a)
     846,100  
    15,049  
Verizon Communications Inc.
     703,992  
    7,318  
Wal-Mart Stores, Inc.
     628,470  
    48,608  
Ruckus Wireless, Inc.(a)
     584,268  
    7,149  
Philip Morris Intl, Inc.
     582,286  
    9,312  
Southern Co.
     457,312  
    2,926  
Berkshire Hathaway Inc., Class B(a)
     439,339  
    4,630  
The PNC Financial Service Group, Inc.
     422,395  
    12,804  
EMC Corp.
     380,791  
    7,914  
Coach, Inc.
     297,250  
    2,178  
Praxair, Inc.
     282,182  
    1,944  
Core Laboratories N.V.
     233,941  
    10,168  
NVIDIA Corp.
     203,868  
    2,386  
Schlumberger Ltd.
     203,788  
    4,373  
Altera Corp.
     161,539  
    1,867  
Ansys, Inc.(a)
     153,094  
    3,428  
Expeditors Intl of Washington
     152,923  
    1,418  
Accenture plc, Class A
     126,642  
    1,456  
Rockwell Collins, Inc.
     123,003  
    1,009  
CME Group Inc.
     89,448  
    492  
Panera Bread Co.(a)
     86,002  
    851  
State Street Corp.
     66,804  
    977  
JPMorgan Chase & Co.
     61,141  
    458  
M&T Bank Corp.
     57,534  
    327  
American Express Co.
     30,424  
    349  
Wisconsin Energy Corp.
     18,406  
              24,574,756  
                 
       
Total common stocks (Cost $46,770,993)
     52,659,753  
                 
 
Number of shares
  
Investment Companies—0.99%
  
Value
  
       
Exchanged Traded Funds—0.99%
        
    7,104  
Vanguard FTSE Emerging Markets ETF
   $ 284,302  
    4,599  
Vanguard Total World Stock Index Fund (ETF)
     276,492  
       
Total investment companies (Cost $570,502)
     560,794  
 
Principal amount
  
Repurchase agreement—2.57%
  
Value
  
  $ 1,455,621  
Fixed Income Clearing Corporation, 0.00%, dated 12/31/2014, due 01/02/2015, repurchase price $1,455,621, (collaterized by U.S Treasury Note, value $1,486,089, 2.13%, due 08/31/2020) (Cost $1,455,621)
   $ 1,455,621  
       
Total Investments—96.66% (Cost $48,797,116)
     54,676,168  
       
Cash, Other Assets less Liabilities—3.34%
     1,891,429  
       
Net Assets—100.00%
   $ 56,567,597  
   
(a) Non-income producing.
      
ADR American Depositary Receipt
      
See Notes to Schedules of Investments.
      
 
 
 
 
 
 
Notes to Schedules of Investments
  12.31.14 (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 Fund and Ariel Global 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, 2014.

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, a security shall be valued using i) the closing price on another exchange on which the security traded (if such price is made available by the pricing vendor) or ii) securities for which reliable bid and ask quotations are available are valued at the mean between bid and ask prices.  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.

Certain common stocks that trade on foreign exchanges are subject to valuation adjustments to account for the market movement between the close of a foreign market in which the security is traded and the close of the New York Stock Exchange.  In the event the Funds become aware of a significant event that may materially affect the value of a security, a fair value of such security will be determined in accordance with procedures established by the Board of Trustees.

Debt securities having a maturity over 60 days are valued at the yield equivalent as obtained from a pricing source or one or more market makers for such securities.  Short-term debt obligations having a maturity of 60 days or less are valued at amortized cost, so long as it approximates fair 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 Codification TM (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 Funds use 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, 2014 in valuing the Funds’ investments carried at fair value:

 
Ariel Fund
Ariel Appreciation
Fund
Ariel Focus
Fund
Ariel
Discovery
Fund
Ariel International
Fund
Ariel Global Fund
Level 1
$2,270,321,853
$2,020,605,261
$66,556,728
$43,863,378
$3,369,453
$32,753,593
Level 2
 
    Foreign equity
    Repurchase
    agreements
    Forward foreign
    currency contracts
 
 
 
-
      90,010,279
 
    -
 
 
 
-
     41,910,666
 
   -
 
 
-
308,721
 
  -
 
 
-
      1,746,308
 
   -
 
 
8,797,654
          -
 
       (32,337)
 
 
20,466,954
        1,455,621
 
      56,576
Level 3
-
-
-
-
-
-
Fair Value at 12/31/14
$2,360,332,132
$2,062,515,927
$66,865,449
$45,609,686
 $12,134,770
$54,732,744
           
 
 
 
 
 
 
Notes to Schedules of Investments
  12.31.14 (UNAUDITED)
 
 
Ariel International Fund
Ariel Global Fund
        
Transfers into Level 1
$-
$-
        
Transfers out of Level 1
8,615,425
20,430,397
        
Transfers into Level 2
8,615,425
20,430,397
        
Transfers out of Level 2
-
-
        

There were no transfers between levels for the Ariel Fund, Ariel Appreciation Fund, Ariel Focus Fund and Ariel Discovery Fund.  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. The forward currency contracts are reflected at the unrealized appreciation (depreciation) on the contract. See Note Five, Forward Currency Contracts.

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).

Forward currency contracts–Ariel International Fund and Ariel Global 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) at the time the forward currency contract is settled or closed on the Statement of Operations as realized gain (loss) on foreign currency transactions. 

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, 2014, with affiliated companies:
   
Share Activity
    
Three Months Ended
December 31, 2014
  
Security Name
  
Balance
September 30,
2014
    
Purchases
    
Sales
    
Balance
December 31,
2014
    
Market value
    
Dividends
credited to
income
    
Amount of loss
realized on sale
of shares
  
Contango Oil & Gas Co.
     1,833,617       51,200       -       1,884,817     $ 55,112,049     $ -     $ -  
 
 
NOTE FOUR | FEDERAL INCOME TAXES

At December 31, 2014, 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
      $1,425,144,476
       $1,233,535,084
$52,922,628
$45,301,963
         
Gross unrealized appreciation
        1,004,387,069
   871,551,821
16,543,286
6,131,322
Gross unrealized depreciation
          (69,199,413)
      (42,570,978)
(2,600,465)
(5,823,599)
 
 
 
 
 
 
Notes to Schedules of Investments
  12.31.14 (UNAUDITED)
 
 
Net unrealized appreciation
         $935,187,656
   $828,980,843
$13,942,821
$307,723

 
Ariel International Fund
Ariel Global Fund
Cost of investments
$11,347,565
$48,797,116
     
Gross unrealized appreciation
1,457,265
7,870,253
Gross unrealized depreciation
(637,723)
(1,991,201)
Net unrealized appreciation
$819,542
$5,879,052
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, 2014, 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 Fund
          
02/18/2015
SGD
50,239
EUR
30,906
$476
02/18/2015
AUD
195,397
CHF
162,803
(4,861)
02/18/2015
SEK
107,660
EUR
11,622
(257)
02/18/2015
SEK
369,569
EUR
39,896
(882)
02/18/2015
SEK
107,145
EUR
11,567
(256)
02/18/2015
AUD
274,053
USD
238,370
(15,347)
02/18/2015
AUD
177,154
USD
154,088
(9,921)
02/18/2015
CAD
80,871
USD
71,560
(2,023)
02/18/2015
NOK
568,499
USD
83,876
(7,694)
02/18/2015
JPY
9,482,876
CHF
77,583
1,105
02/18/2015
SGD
51,524
EUR
31,544
672
02/18/2015
SGD
23,616
EUR
14,458
308
02/18/2015
AUD
47,062
CAD
44,832
(250)
02/18/2015
AUD
39,066
CAD
37,215
(207)
02/18/2015
SEK
601,621
EUR
63,089
813
02/18/2015
AUD
80,034
CAD
76,242
(425)
02/18/2015
AUD
86,539
CAD
82,439
(460)
02/18/2015
AUD
126,662
CHF
99,398
3,024
02/18/2015
SEK
389,529
EUR
40,848
526
02/18/2015
AUD
19,871
CHF
15,594
474
02/18/2015
GBP
9,003
CHF
13,588
351
02/18/2015
GBP
43,541
CHF
65,710
1,697
02/18/2015
GBP
167,311
EUR
210,299
6,097
02/18/2015
SGD
47,145
USD
36,125
(569)
02/18/2015
SEK
688,087
USD
90,314
(2,034)
02/18/2015
AUD
89,181
USD
72,957
(382)
02/18/2015
AUD
71,816
USD
58,751
(308)
02/18/2015
GBP
12,840
USD
20,202
(196)
02/18/2015
GBP
37,342
USD
58,751
(570)
02/18/2015
GBP
34,746
USD
54,667
(530)
02/18/2015
GBP
46,371
USD
72,957
(708)
         
$(32,337)
           
           
Ariel Global Fund
          
02/18/2015
NOK
723,194
GBP
68,113
$(9,213)
02/18/2015
AUD
176,231
EUR
122,280
(4,614)
02/18/2015
CAD
250,266
EUR
176,673
1,315
02/18/2015
CAD
31,000
EUR
21,884
163
02/18/2015
AUD
127,301
EUR
88,330
(3,333)
02/18/2015
AUD
170,575
CHF
142,121
(4,243)
02/18/2015
SEK
815,405
EUR
88,025
(1,946)
02/18/2015
CAD
500,533
USD
442,903
(12,522)
02/18/2015
USD
332,973
JPY
38,683,489
9,900
02/18/2015
SEK
2,161,489
GBP
185,007
(10,937)
02/18/2015
CAD
406,871
CHF
335,157
12,485
02/18/2015
CAD
88,130
CHF
72,596
2,704
02/18/2015
AUD
165,353
CHF
129,761
3,948
02/18/2015
AUD
655,850
CHF
514,680
15,661
02/18/2015
SEK
953,254
EUR
99,963
1,288
02/18/2015
SEK
551,532
CHF
69,440
864
02/18/2015
CAD
308,897
EUR
211,929
9,048
 
 
 
 
 
 
Notes to Schedules of Investments
  12.31.14 (UNAUDITED)
 
02/18/2015
MXN
2,244,154
EUR
121,282
4,869
02/18/2015
AUD
65,232
EUR
42,635
1,472
02/18/2015
AUD
134,362
EUR
87,819
3,031
02/18/2015
AUD
264,191
EUR
172,675
5,961
02/18/2015
SGD
107,354
CHF
78,909
1,536
02/18/2015
SGD
112,466
CHF
82,667
1,610
02/18/2015
USD
116,809
GBP
74,244
1,133
02/18/2015
USD
106,665
CHF
102,317
3,675
02/18/2015
USD
273,034
GBP
173,540
2,649
02/18/2015
USD
171,414
CHF
164,427
5,906
02/18/2015
USD
116,818
CHF
112,056
4,025
02/18/2015
USD
309,093
EUR
246,950
10,141
         
$56,576


 
 
 
 
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 6, 2015                                                       


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 6, 2015                                                        

 
By:     /s/  Jeffrey Rapaport                                                       
          Jeffrey Rapaport
         Treasurer and Chief Financial Officer

Date:        February 6, 2015