SEMI-ANNUAL REPORT: 03/31/16
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Value
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Deep value
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Global
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Ariel Fund
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Ariel Appreciation Fund
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Ariel Focus Fund
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Ariel Discovery Fund
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Ariel International Fund
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Ariel Global Fund
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One of Ariel Investments’ guiding principles is to communicate openly with our shareholders so they may gain a clear understanding of our investment philosophy, portfolio decisions and results, as well as our opinions on the underlying market. In reviewing the materials contained in The Patient Investor, please consider the information provided on this page. While our investment decisions are rooted in detailed analysis, it is important to point out that actual results can differ significantly from those we seek. We candidly discuss a number of individual companies. Our opinions are current as of the date they were written but are subject to change.
We want to remind investors that the information in this report is not sufficient on which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. Equity investments are affected by market conditions. The intrinsic value of the stocks in which the Funds invest may never be recognized by the broader market. Ariel Fund, Ariel Appreciation Fund, Ariel Focus Fund and Ariel Discovery Fund invest in micro, small and/or mid-cap companies. Investing in micro, small and mid-cap stocks is riskier and more volatile than investing in large cap stocks, in part because smaller companies may not have the scale, depth of resources and other assets of larger firms. Ariel Fund and Ariel Appreciation Fund often invest a significant portion of their assets in companies within the consumer discretionary and financial services sectors and their performance may suffer if these sectors underperform the overall stock market. Ariel Focus Fund invests primarily in equity securities of companies of any size in order to provide investors access to superior opportunities in companies of all market capitalizations. Ariel Focus Fund is a non-diversified fund in that it generally holds only 20-30 stocks and therefore may be more volatile than a more diversified investment. Ariel International Fund and Ariel Global Fund invest in foreign securities and may use currency derivatives and ETFs. Investments in foreign securities may underperform and may be more volatile than comparable U.S. stocks because of the risks involving foreign economies and markets, foreign political systems, foreign regulatory standards, foreign currencies and taxes. The use of currency derivatives and ETFs may increase investment losses and expenses and create more volatility. Investments in emerging markets present additional risks, such as difficulties selling on a timely basis and at an acceptable price.
Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end for the Funds may be obtained by visiting our website, arielinvestments.com.
Investors should consider carefully the investment objectives, risks, and charges and expenses before investing. For a current summary prospectus or full prospectus which contains this and other information about the Funds offered by Ariel Investment Trust, call us at 800.292.7435 or visit our website, arielinvestments.com. Please read the summary prospectus or full prospectus carefully before investing. Distributed by Ariel Distributors, LLC, a wholly owned subsidiary of Ariel Investments, LLC.
Ariel Investment Trust
c/o U.S. Bancorp Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
800.292.7435
• arielinvestments.com
• linkedin.com/company/ariel-investments • twitter.com/ArielFunds • facebook.com/ArielInvestments |
Fund performance at a glance
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AS OF 03/31/16
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Annualized
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|||||||
Quarter (%)
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1-year (%)
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3-year (%)
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5-year (%)
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10-year (%)
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20-year (%)
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Since
inception (%)
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Small/mid cap value strategy
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11/06/86
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||||||
Ariel Fund–Investor Class
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– 0.32
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–10.38
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+ 9.85
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+ 8.53
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+ 5.75
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+10.26
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+ 11.11
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Ariel Fund–Institutional Class
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– 0.24
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–10.10
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+ 10.19
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+ 8.83
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+ 5.90
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+10.34
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+ 11.17
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Russell 2500TM Value Index
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+ 3.33
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– 5.20
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+ 7.15
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+ 8.33
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+ 5.80
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+10.07
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+ 11.01
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Russell 2000® Value Index
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+ 1.70
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– 7.72
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+ 5.73
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+ 6.66
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+ 4.42
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+ 9.12
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+ 10.17
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S&P 500® Index
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+ 1.35
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+ 1.78
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+ 11.82
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+ 11.58
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+ 7.01
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+ 7.98
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+ 9.99
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Mid cap value strategy
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12/01/89
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Ariel Appreciation Fund–Investor Class
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+ 1.09
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– 9.14
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+ 9.06
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+ 9.15
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+ 7.48
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+10.62
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+ 10.61
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Ariel Appreciation Fund–Institutional Class
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+ 1.20
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– 8.82
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+ 9.43
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+ 9.44
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+ 7.62
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+10.70
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+ 10.67
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Russell Midcap® Value Index
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+ 3.92
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– 3.39
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+ 9.88
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+ 10.52
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+ 7.23
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+10.50
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+ 11.34
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Russell Midcap® Index
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+ 2.24
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– 4.04
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+ 10.45
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+ 10.30
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+ 7.45
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+10.02
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+ 11.10
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S&P 500® Index
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+ 1.35
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+ 1.78
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+ 11.82
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+ 11.58
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+ 7.01
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+ 7.98
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+ 9.27
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All cap value strategy
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06/30/05
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Ariel Focus Fund–Investor Class
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+ 1.62
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–12.08
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+ 4.94
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+ 5.89
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+ 3.69
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–
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+ 4.09
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Ariel Focus Fund–Institutional Class
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+ 1.72
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–11.86
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+ 5.21
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+ 6.11
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+ 3.80
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–
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+ 4.20
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Russell 1000® Value Index
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+ 1.64
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– 1.54
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+ 9.38
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+ 10.25
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+ 5.72
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–
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+ 6.37
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S&P 500® Index
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+ 1.35
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+ 1.78
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+ 11.82
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+ 11.58
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+ 7.01
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–
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+ 7.47
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Small cap deep value strategy
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01/31/11
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Ariel Discovery Fund–Investor Class
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+ 2.20
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–21.90
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– 6.81
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– 1.51
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–
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–
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– 0.84
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Ariel Discovery Fund–Institutional Class
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+ 2.29
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–21.69
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– 6.58
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– 1.28
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–
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–
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– 0.61
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Russell 2000® Value Index
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+ 1.70
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– 7.72
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+ 5.73
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+ 6.66
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–
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–
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+ 7.76
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S&P 500® Index
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+ 1.35
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+ 1.78
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+ 11.82
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+ 11.58
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–
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–
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+ 11.93
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International all cap strategy
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12/30/11
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Ariel International Fund–Investor Class
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+ 1.27
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– 0.04
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+ 7.72
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–
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–
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–
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+ 7.40
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Ariel International Fund–Institutional Class
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+ 1.30
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+ 0.18
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+ 7.93
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–
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–
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–
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+ 7.64
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MSCI EAFE Index (net)
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– 3.01
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– 8.27
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+ 2.23
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–
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–
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–
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+ 6.71
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MSCI ACWI ex-US Index (net)
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– 0.38
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– 9.19
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+ 0.32
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–
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–
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–
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+ 4.73
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Global all cap strategy
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12/30/11
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Ariel Global Fund–Investor Class
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+ 2.41
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– 0.13
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+ 8.57
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–
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–
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–
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+ 9.29
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Ariel Global Fund–Institutional Class
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+ 2.48
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+ 0.08
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+ 8.86
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–
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–
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–
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+ 9.57
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MSCI ACWI Index (net)
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+ 0.24
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– 4.34
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+ 5.54
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–
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–
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–
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+ 9.20
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TURTLE TALK
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Portfolio manager viewpoints
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“In the global markets, a volatile environment provided a wonderful opportunity for us to apply our contrarian intrinsic value investing strategy. We currently believe international valuations are attractive and ideal for bottom-up stock pickers like ourselves. Sharp moves tend to mean big shifts in valuation, and on the downside that can create opportunities.”
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-Rupal J. Bhansali, Chief Investment Officer, Ariel Global Equites
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Please turn to page 17 to read Rupal Bhansali’s full letter to shareholders on year-to-date performance drivers, stocks and sectors.
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A born investor
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![]() |
Rupal J. Bhansali,Portfolio Manager, Ariel International Fund & Ariel Global Fund
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2
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ARIELINVESTMENTS.COM
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Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains and represents returns of the Investor Class shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end for Ariel Fund and Ariel Appreciation Fund may be obtained by visiting our website, arielinvestments.com.
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800.292.7435 |
3
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12/31/13–03/31/16
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Cumulative return
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Annualized return
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Russell 2000 Value
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–
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1.92
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% |
–
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0.86
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% |
Russell 2000 Value–Utilities
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+
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29.66
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+
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12.28
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S&P 500
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+
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16.82
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+
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7.15
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S&P 500–Utilities
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+
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41.83
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+
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16.80
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03/31/91–12/31/13
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Cumulative return
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Annualized return
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Russell 2000 Value
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+
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1226.84
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% |
+
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12.03
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% |
Russell 2000 Value–Utilities
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+
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676.89
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+
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9.43
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S&P 500
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+
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687.50
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+
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9.50
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S&P 500–Utilities
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+
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440.51
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+
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7.70
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03/31/91–03/31/16
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Cumulative return
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Annualized return
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Russell 2000 Value
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+
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1203.95
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% |
+
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10.81
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% |
Russell 2000 Value–Utilities
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+
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907.60
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+
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9.67
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S&P 500
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+
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819.92
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+
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9.28
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S&P 500–Utilities
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+
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666.60
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+
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8.49
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4
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ARIELINVESTMENTS.COM
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Sincerely,
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![]() |
![]() |
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John W. Rogers, Jr.
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Mellody Hobson
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Chairman and CEO
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President
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![]() |
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We recently asked our portfolio managers what they thought were the most important factors to consider when evaluating risk.
Here’s how Timothy R. Fidler, CFA, Co-Portfolio Manager of Ariel Appreciation Fund and Director of Research, responded:
“I focus on evaluating the strength of a business’s franchise. In my view, stable high quality businesses exhibit lower risk, thus our research effort evaluates every company’s competitive advantages and points of differentiation. Additionally, balance sheet strength can serve to lower risk as financial distress can harm even the most competitively advantaged businesses.”
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800.292.7435 |
5
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Ariel Fund performance summary
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INCEPTION: 11/06/86
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![]() |
![]() |
![]() |
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John W. Rogers, Jr.
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John P. Miller, cfa
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Kenneth E. Kuhrt, cpa
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Lead portfolio
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Portfolio
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Portfolio
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manager
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manager
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manager
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Composition of equity holdings (%)
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Ariel
Fund† |
Russell
2500 Value Index |
Russell
2000 Value Index |
S&P
500 Index |
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Consumer discretionary
|
29.99
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9.88
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10.26
|
14.25
|
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Financial services |
29.56
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39.07
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43.08
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17.70
|
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Producer durables
|
18.98
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12.94
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12.26
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10.61
|
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Health care
|
8.60
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4.27
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4.14
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14.22
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Materials & processing
|
5.50
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6.63
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4.66
|
3.02
|
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Technology
|
3.12
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8.31
|
9.79
|
17.88
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Consumer staples |
3.11
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2.73
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3.16
|
9.30
|
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Energy
|
1.14
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5.28
|
3.46
|
6.79
|
|
Utilities
|
0.00
|
10.89
|
9.20
|
6.23
|
|
† Represents percentage of total equity holdings in the portfolio.
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Average annual total returns (%) as of 03/31/16 | |||||||||||||||
Since
|
|||||||||||||||
Quarter
|
1-year
|
3-year
|
5-year
|
10-year
|
20-year
|
inception
|
|||||||||
Ariel Fund–Investor Class
|
–
|
0.32
|
–
|
10.38
|
+
|
9.85
|
+
|
8.53
|
+
|
5.75
|
+
|
10.26
|
+
|
11.11
|
|
Ariel Fund–Institutional Class +
|
–
|
0.24
|
–
|
10.10
|
+
|
10.19
|
+
|
8.83
|
+
|
5.90
|
+
|
10.34
|
+
|
11.17
|
|
Russell 2500TM Value Index
|
+
|
3.33
|
–
|
5.20
|
+
|
7.15
|
+
|
8.33
|
+
|
5.80
|
+
|
10.07
|
+ |
11.01
|
|
Russell 2000® Value Index
|
+
|
1.70
|
–
|
7.72
|
+
|
5.73
|
+
|
6.66
|
+
|
4.42
|
+
|
9.12
|
+
|
10.17
|
|
S&P 500® Index
|
+
|
1.35
|
+
|
1.78
|
+
|
11.82
|
+
|
11.58
|
+
|
7.01
|
+
|
7.98
|
+
|
9.99
|
Expense ratio (as of 9/30/15)
|
|
Investor Class
|
1.02%
|
Institutional Class
|
0.72%
|
Top ten equity holdings (% of net assets)
|
||
1.
|
Lazard Ltd
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4.6
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2.
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KKR & Co. L.P.
|
4.3
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3.
|
TEGNA, Inc.
|
4.0
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4.
|
Brady Corp.
|
3.7
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5.
|
Kennametal Inc.
|
3.7
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6.
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Interpublic Group of Cos., Inc.
|
3.3
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7.
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Meredith Corp.
|
3.3
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8.
|
JLL
|
3.2
|
9.
|
Janus Capital Group Inc.
|
3.2
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10.
|
Royal Caribbean Cruises Ltd.
|
3.2
|
6
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ARIELINVESTMENTS.COM
|
Ariel Appreciation Fund performance summary
|
INCEPTION: 12/01/89
|
|
![]() |
![]() |
|
John W. Rogers, Jr.
Co-portfolio
manager |
Timothy R. Fidler, cfa
Co-portfolio
manager |
Composition of equity holdings (%)
|
|||||
Ariel
|
Russell
|
||||
Apprec-
|
Midcap
|
Russell
|
S&P
|
||
iation
|
Value
|
Midcap
|
500
|
||
Fund†
|
Index
|
Index
|
Index
|
||
Financial services
|
33.81
|
33.43
|
25.05
|
17.70
|
|
Consumer discretionary
|
24.17
|
9.11
|
17.64
|
14.25
|
|
Health care
|
16.97
|
5.64
|
8.61
|
14.22
|
|
Producer durables
|
16.76
|
9.06
|
12.12
|
10.61
|
|
Consumer staples
|
3.41
|
4.36
|
6.31
|
9.30
|
|
Technology
|
2.64
|
8.17
|
11.10
|
17.88
|
|
Energy
|
2.24
|
8.59
|
4.78
|
6.79
|
|
Materials & processing
|
0.00
|
6.96
|
6.82
|
3.02
|
|
Utilities
|
0.00
|
14.68
|
7.57
|
6.23
|
|
† Represents percentage of total equity holdings in the portfolio.
|
Average annual total returns (%) as of 03/31/16
|
|||||||||||||||
Since
|
|||||||||||||||
Quarter
|
1-year
|
3-year
|
5-year
|
10-year
|
20-year
|
inception
|
|||||||||
Ariel Appreciation Fund–Investor Class
|
+
|
1.09
|
–
|
9.14
|
+
|
9.06
|
+
|
9.15
|
+
|
7.48
|
+
|
10.62
|
+
|
10.61
|
|
Ariel Appreciation Fund–Institutional Class +
|
+
|
1.20
|
–
|
8.82
|
+
|
9.43
|
+
|
9.44
|
+
|
7.62
|
+
|
10.70
|
+
|
10.67
|
|
Russell Midcap® Value Index
|
+
|
3.92
|
–
|
3.39
|
+
|
9.88
|
+
|
10.52
|
+
|
7.23
|
+
|
10.50
|
+
|
11.34
|
|
Russell Midcap® Index
|
+
|
2.24
|
–
|
4.04
|
+
|
10.45
|
+
|
10.30
|
+
|
7.45
|
+
|
10.02
|
+
|
11.10
|
|
S&P 500® Index
|
+
|
1.35
|
+
|
1.78
|
+
|
11.82
|
+
|
11.58
|
+
|
7.01
|
+
|
7.98
|
+
|
9.27
|
Expense ratio (as of 9/30/15)
|
|
Investor Class
|
1.12%
|
Institutional Class
|
0.79%
|
Top ten equity holdings (% of net assets)
|
||
1.
|
Zimmer Biomet Holdings, Inc.
|
4.8
|
2.
|
AFLAC Inc.
|
4.4
|
3.
|
Kennametal Inc.
|
4.1
|
4.
|
Northern Trust Corp.
|
4.1
|
5.
|
Stanley Black & Decker, Inc.
|
4.0
|
6.
|
Laboratory Corp. of America Holdings
|
4.0
|
7.
|
First American Financial Corp.
|
3.9
|
8.
|
Omnicom Group Inc.
|
3.9
|
9.
|
Interpublic Group of Cos., Inc.
|
3.7
|
10.
|
Lazard Ltd
|
3.6
|
800.292.7435
|
7
|
Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains and represents returns of the Investor Class shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end for Ariel Focus Fund may be obtained by visiting our website, arielinvestments.com.
|
8
|
ARIELINVESTMENTS.COM
|
800.292.7435 |
9
|
![]() |
EVALUATING RISK | ||
We recently asked our portfolio managers what they thought were the most important factors to consider when evaluating risk.
|
|||
Here’s how Charles K. Bobrinskoy, Portfolio Manager of Ariel Focus Fund, responded:
|
|||
“I believe that certainty of underlying asset value is the most important factor to consider when evaluating risk. In addition, management can make a decision that leads to permanent impairment of capital. Thus we focus on identifying companies with strong, properly incentivized leadership.” | |||
10
|
ARIELINVESTMENTS.COM
|
Ariel Focus Fund performance summary
|
INCEPTION: 06/30/05
|
|
![]() |
Charles K. Bobrinskoy
Portfolio manager
|
Composition of equity holdings (%) |
|
|||
Ariel
Focus
Fund† |
Russell
Value1000
|
S&P
500 |
||
Financial services
|
25.59
|
28.50
|
17.70
|
|
Technology
|
16.60
|
11.10
|
17.88
|
|
Health care
|
16.35
|
11.66
|
14.22
|
|
Producer durables
|
14.98
|
10.26
|
10.61
|
|
Energy
|
10.30
|
12.83
|
6.79
|
|
Consumer discretionary
|
8.48
|
6.50
|
14.25
|
|
Materials & processing
|
7.70
|
3.10
|
3.02
|
|
Consumer staples
|
0.00
|
6.24
|
9.30
|
|
Utilities
|
0.00
|
9.81
|
6.23
|
Average annual total returns (%) as of 03/31/16 | |||||||
Since
|
|||||||
Quarter
|
1-year
|
3-year
|
5-year
|
10-year
|
inception
|
||
Ariel Focus Fund–Investor Class
|
+ 1.62
|
– 12.08
|
+ 4.94
|
+ 5.89
|
+ 3.69
|
+ 4.09
|
|
Ariel Focus Fund–Institutional Class+
|
+ 1.72
|
– 11.86
|
+ 5.21
|
+ 6.11
|
+ 3.80
|
+ 4.20
|
|
Russell 1000® Value Index
|
+ 1.64
|
– 1.54
|
+ 9.38
|
+10.25
|
+ 5.72
|
+ 6.37
|
|
S&P 500® Index
|
+ 1.35
|
+ 1.78
|
+11.82
|
+11.58
|
+ 7.01
|
+ 7.47
|
Expense ratio (as of 9/30/15) 1
|
Net
|
Gross
|
||
Investor Class
|
1.00%
|
1.37%
|
||
Institutional Class
|
0.75%
|
1.07%
|
Top ten equity holdings (% of net assets)
|
|
|
1.
|
Western Union Co.
|
5.7
|
2.
|
Oracle Corp.
|
5.6
|
3.
|
Intl Business Machines Corp.
|
5.6
|
4.
|
Stanley Black & Decker, Inc.
|
5.5
|
5.
|
Lockheed Martin Corp.
|
5.1
|
6.
|
Zimmer Biomet Holdings, Inc.
|
4.5
|
7.
|
Laboratory Corp. of America Holdings
|
4.4
|
8.
|
Exxon Mobil Corp.
|
3.9
|
9.
|
Mosaic Co.
|
3.9
|
10.
|
Barrick Gold Corp.
|
3.8
|
800.292.7435 |
11
|
Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains and represents returns of the Investor Class shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end for Ariel Discovery Fund may be obtained by visiting our website, arielinvestments.com.
|
1Q16
|
1-year
|
3-year
|
5-year
|
Since inception*
|
||||||||||||||||
Ariel Discovery Fund
|
+ 2.20
|
%
|
– 21.90
|
%
|
– 6.81
|
%
|
– 1.51
|
%
|
– 0.84
|
%
|
||||||||||
Russell 2000® Value Index
|
+ 1.70
|
– 7.72
|
+ 5.73
|
+ 6.66
|
+ 7.76
|
|||||||||||||||
S&P 500® Index
|
+ 1.35
|
+ 1.78
|
+ 11.82
|
+ 11.58
|
+ 11.93
|
*
|
The inception date for Ariel Discovery Fund is 01/31/11.
|
•
|
A greatly improved Board of Directors. David Nierenberg joined, as did John Hass after an introduction by John Lewis.
|
•
|
A decision to focus the company on the E&E business and to vastly streamline the consumer side in pursuit of only serious learners.
|
•
|
John Hass appointed as Interim CEO in March 2015, and recently appointed as permanent CEO and Chair.
|
•
|
Engagement of renowned turnaround consultant Al Angrisani.
|
•
|
$65 million in annual costs were taken out last year, and another $19 million are expected on an annualized basis. A leaner, more efficient company has emerged.
|
•
|
The decision to stop the bleeding on the consumer side may have been the single most important decision made by the board. Not only was the division in decline, the constant price cutting needed to entice the casual user was cannibalizing the institutional business. A powerful brand built over decades was in danger of becoming irrelevant. The contribution margin has more than doubled in a year to 25% in the fourth quarter.
|
•
|
Lexia Learning is now the crown jewel of Rosetta Stone. Purchased in 2013 for $22.5 million, this software focuses on first-language literacy, not learning additional languages. It has renewal rates of more than 90%. As a true Software as a Service (SaaS) business fulfilling a vital need to the nation’s schools, we believe it alone is worth more than the current RST enterprise value of just less than $100 million. Bookings of more than $30 million and a sustainable 30%+ growth rate should garner a price/ sales multiple of at least 3x and perhaps as much as 5x.
|
•
|
The institutional language business, under the leadership of Judy Verses, will soon launch its next-generation Language Learning Suite. Its core markets of enterprise and K12 digital learning are more than $1 billion in size. While it has struggled awaiting the launch of a cohesive platform, this is a solid business with high renewal rates. Even at only 1x revenue, it would be worth $70 million.
|
•
|
This collection of valuable assets is bolstered by a debt-free balance sheet with nearly $2 per share in cash.
|
•
|
Furmanite Corp. (FRM)– acquired by Team, Inc. (TISI), a current portfolio favorite.
|
•
|
CSW Industrials, Inc. (CSWI)– we believe the spinoff from Capital Southwest Corp. (CSWC) reached full value.
|
•
|
LeapFrog Enterprises, Inc. (LF)– agreed to be acquired by VTech for cash.
|
•
|
Broadwind Energy, Inc. (BWEN)– we had initiated a small position last year, but lost confidence in the company’s ability to avoid losses and protect its asset base.
|
•
|
Rentech, Inc., Rubicon Technology, Inc., Vical Inc. (VICL)– we believe each is deeply discounted, however, as discussed earlier, their very small market capitalizations and the opportunity to add the somewhat larger names below at similarly attractive valuations led us to eliminate these from this portfolio (note: the first two were still in the process of being sold at quarter-end, but are completed as of this writing).
|
•
|
ArcBest Corp. (ARCB)– This well-managed freight transportation and logistics company trades below book value despite being solidly profitable. Macro-economic concerns provided us with an opportunity to purchase a company with potential to achieve higher returns as it grows its asset-light logistics business.
|
•
|
CRA International, Inc. (CRAI)– CRA International is a global consulting firm that offers litigation, regulatory, and financial consulting, as well as management consulting services. Trading below book value and with approximately 25% of the market cap in cash, we believe our investment has sizable downside protection. In addition, CRA International consistently generates cash and has solid long-term growth prospects.
|
•
|
Digi International Inc. (DGII)– Headquartered in Minnetonka, Minnesota, Digi International is a machine-to-machine (M2M) hardware provider in transition. The new management team is working strategically to reposition the company for sustainable long-term growth. DGII currently trades well below book value and has approximately 50% of its market cap in cash.
|
•
|
Movado Group Inc. (MOV)– Movado Group is a watch retailer and wholesaler with an international presence that operates through its iconic brands, along with six licensed brands. The company has a clean balance sheet with a sizable cash balance. Outstanding leadership has enabled the company to generate solid returns in a very challenging environment. Undemanding valuation multiples add to our enthusiasm.
|
•
|
Real Industry Inc.– Real Industry is a holding company based in Southern California backed by notable investors, including Sam Zell. With over $800 million in federal net operating losses (NOLs), management plans to acquire cash generating, stand-alone businesses that can utilize the NOL asset. Its first major purchase was Real Alloy, an aluminum recycling company. We believe the value of Real Alloy alone is more than the current market capitalization of Real Industry. With the value of the NOLs, we see an asymmetric risk/reward opportunity.
|
•
|
STRATTEC Security Corp. (STRT)– Headquartered in Milwaukee, STRATTEC Security designs, manufactures, and sells automotive access control products. The company has a clean balance sheet and trades near tangible book value. Additionally, advancement in automated cars should provide a tailwind, driving demand for STRATTEC products.
|
•
|
West Marine, Inc. (WMAR)– West Marine operates retail stores for boating supplies and accessories. It trades at a sizable discount to book value despite being profitable, and has a clean balance sheet with no debt and excess cash. West Marine is positioned to take advantage of an ongoing recovery in the boating industry.
|
![]() |
EVALUATING RISK
|
||
We recently asked our portfolio managers what they thought were the most important factors to consider when evaluating risk.
|
|||
Here’s how David M. Maley, Lead Portfolio Manager of Ariel Discovery Fund, responded:
|
|||
“One of the core beliefs that our Domestic Research Team shares is that certainty of underlying asset value is the most important factor to consider when evaluating risk. An additional consideration is that management can make a decision that leads to permanent impairment of capital. We therefore focus on identifying companies with strong, properly incentivized leadership.”
|
1
|
“Investor Insight: Activism,” Value Investor Insight, March 31, 2016, 12-13.
|
Ariel Discovery Fund performance summary
|
INCEPTION: 01/31/11
|
|
![]() |
![]() |
David M. Maley
|
Kenneth E. Kuhrt, cpa
|
Lead portfolio
manager |
Portfolio
manager |
Composition of equity holdings (%)
|
||||||||||
Ariel
Discovery
Fund†
|
Russell
2000
Value
Index
|
S&P
500
Index
|
||||||||
Consumer discretionary
|
24.39
|
10.26
|
14.25
|
|||||||
Technology
|
21.30
|
9.79
|
17.88
|
|||||||
Producer durables
|
17.68
|
12.26
|
10.61
|
|||||||
Financial services
|
13.66
|
43.08
|
17.70
|
|||||||
Utilities
|
9.29
|
9.20
|
6.23
|
|||||||
Materials & processing
|
5.83
|
4.66
|
3.02
|
|||||||
Energy
|
5.77
|
3.46
|
6.79
|
|||||||
Health care
|
2.08
|
4.14
|
14.22
|
|||||||
Consumer staples
|
0.00
|
3.16
|
9.30
|
Average annual total returns (%) as of 03/31/16
|
|||||
|
Since
|
||||
Quarter
|
1-year
|
3-year
|
5-year
|
inception
|
|
Ariel Discovery Fund–Investor Class
|
+ 2.20
|
– 21.90
|
– 6.81
|
– 1.51
|
– 0.84
|
Ariel Discovery Fund–Institutional Class+
|
+ 2.29
|
– 21.69
|
– 6.58
|
– 1.28
|
– 0.61
|
Russell 2000®Value Index
|
+ 1.70
|
– 7.72
|
+ 5.73
|
+ 6.66
|
+ 7.76
|
S&P 500® Index
|
+ 1.35
|
+ 1.78
|
+ 11.82
|
+ 11.58
|
+ 11.93
|
Expense ratio (as of 9/30/15) 1
|
Net
|
Gross
|
Investor Class
|
1.25%
|
2.10%
|
Institutional Class
|
1.00%
|
1.29%
|
Top ten equity holdings (% of net assets)
|
1.
|
ORBCOMM, Inc.
|
6.2
|
2.
|
Cowen Group, Inc.
|
6.0
|
3.
|
Team, Inc.
|
4.8
|
4.
|
Gaiam, Inc.
|
4.6
|
5.
|
Rosetta Stone Inc.
|
4.4
|
6.
|
RealNetworks, Inc.
|
4.1
|
7.
|
SeaChange Intl, Inc.
|
3.7
|
8.
|
Telenav Inc.
|
3.5
|
9.
|
XO Group Inc.
|
3.4
|
10.
|
Bristow Group Inc.
|
3.3
|
16
|
ARIELINVESTMENTS.COM
|
Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains and represents returns of the Investor Class shares. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end for Ariel International Fund and Ariel Global Fund may be obtained by visiting our website, arielinvestments.com.
|
800.292.7435 | 17 |
![]() |
EVALUATING RISK
|
||
We recently asked our portfolio managers what they thought were the most important factors to consider when evaluating risk.
|
|||
Here’s how Rupal J. Bhansali, Portfolio Manager of Ariel International Fund and Ariel Global Fund, responded:
|
|||
“Both qualitative and quantitative factors should be considered when evaluating risk. Our qualitative risk assessment considers whether a company’s business model and strategy will stand the test of time, competitive threats, corporate governance matters, and capital allocation priorities. Quantitative risk factors incorporate an assessment of a company’s returns relative to its risk profile, balance sheet strength, and trading liquidity, among other factors.”
|
18
|
ARIELINVESTMENTS.COM
|
Ariel International Fund performance summary
|
INCEPTION: 12/30/11
|
|
![]() |
|
Rupal J. Bhansali
|
|
Portfolio manager
|
Composition of equity holdings* (%)
|
|||||||
Ariel
International Fund† |
MSCI
EAFE Index |
MSCI
ACWI ex-US Index |
|||||
Information technology
|
20.43
|
5.25
|
8.35
|
||||
Financials
|
17.36
|
23.78
|
25.79
|
||||
Telecommunication services
|
15.21
|
5.11
|
5.34
|
||||
Consumer staples
|
13.43
|
12.66
|
11.23
|
||||
Health care
|
12.15
|
11.47
|
8.86
|
||||
Consumer discretionary
|
11.87
|
13.17
|
11.99
|
||||
Energy
|
3.56
|
4.67
|
6.38
|
||||
Industrials
|
3.00
|
13.29
|
11.54
|
||||
Utilities
|
2.60
|
3.88
|
3.58
|
||||
Materials
|
0.39
|
6.73
|
6.94
|
*
|
The sectors above are the Global Industry Classification Standard (“GICS”) sector classifications. 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.
|
Average annual total returns (%) as of 03/31/16
|
|||||||||
Quarter
|
1-year
|
3-year
|
Since
inception |
||||||
Ariel International Fund–Investor Class
|
+
|
1.27
|
– |
0.04
|
+
|
7.72
|
+
|
7.40
|
|
Ariel International Fund–Institutional Class
|
+ |
1.30
|
+ |
0.18
|
+
|
7.93
|
+
|
7.64
|
|
MSCI EAFE Index (gross)
|
–
|
2.88
|
–
|
7.87
|
+
|
2.68
|
+
|
7.18
|
|
MSCI EAFE Index (net)
|
–
|
3.01
|
–
|
8.27
|
+
|
2.23
|
+
|
6.71
|
|
MSCI ACWI ex-US Index (gross)
|
–
|
0.26
|
–
|
8.78
|
+
|
0.76
|
+
|
5.19
|
|
MSCI ACWI ex-US Index (net)
|
–
|
0.38
|
–
|
9.19
|
+
|
0.32
|
+
|
4.73
|
Expense ratio (as of 9/30/15) 1
|
Net
|
Gross
|
||
Investor Class
|
1.26%
|
3.49%
|
||
Institutional Class
|
1.01%
|
2.68%
|
Top ten companies^ (% of net assets)
|
||||||
1.
|
Deutsche Boerse AG
|
3.5
|
||||
2.
|
GlaxoSmithKline plc
|
3.2
|
||||
3.
|
China Mobile Ltd.
|
3.0
|
||||
4.
|
Roche Holding AG
|
3.0
|
||||
5.
|
Dialog Semiconductor plc
|
2.7
|
||||
6.
|
Ahold N.V.
|
2.7
|
||||
7.
|
Nokia Corp.
|
2.3
|
||||
8.
|
Reckitt Benckiser Group plc
|
2.2
|
||||
9.
|
Baidu, Inc.
|
2.0
|
||||
10.
|
Telefonica Deutschland GmbH & Co.
|
1.8
|
Country weightings† (%)
|
||||
United Kingdom
|
18.07
|
|||
Germany
|
15.68
|
|||
Japan
|
15.22
|
|||
Switzerland
|
11.20
|
|||
China
|
9.91
|
|||
Netherlands
|
5.80
|
|||
France
|
5.14
|
|||
Finland
|
4.52
|
|||
United States
|
4.47
|
|||
Canada
|
2.58
|
|||
Spain
|
2.06
|
|||
Italy
|
1.35
|
|||
Ireland
|
0.90
|
|||
Hong Kong
|
0.73
|
|||
Luxembourg
|
0.62
|
|||
Israel
|
0.61
|
|||
Sweden
|
0.58
|
|||
Singapore
|
0.48
|
|||
United Arab Emirates
|
0.08
|
1
|
Effective February 1, 2014, Ariel Investments, LLC, the Adviser, has contractually agreed to waive fees and reimburse expenses in order to limit Ariel International Fund’s total annual operating expenses to 1.25% of net assets for the Investor Class and 1.00% for the Institutional Class through the end of the fiscal year ending September 30, 2017. For the year ended 9/30/15, the net expense ratios for both Classes of the Fund rounded above the expense caps due to interest expense which is excluded from the expense reimbursement. Through January 31, 2014, the Expense Cap was 1.40% for the Investor Class and 1.15% for the Institutional Class.
|
†
|
Sector and country weightings are calculated based on equity holdings in the Fund and exclude cash and ETFs in order to make a relevant comparison to the indexes. Notes: The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. See index descriptions on page 65.
|
800.292.7435 19
|
Ariel Global Fund performance summary
|
INCEPTION: 12/30/11
|
|
![]() |
|
Rupal J. Bhansali
|
|
Portfolio manager
|
Composition of equity holdings* (%)
|
|||||||
Ariel
Global Fund† |
MSCI
ACWI Index |
||||||
Health care
|
24.77
|
11.72
|
|||||
Information technology
|
21.20
|
15.01
|
|||||
Telecommunication services
|
13.88
|
3.98
|
|||||
Financials
|
13.19
|
20.38
|
|||||
Consumer discretionary
|
12.53
|
12.91
|
|||||
Utilities
|
4.99
|
3.47
|
|||||
Consumer staples
|
4.68
|
10.67
|
|||||
Energy
|
3.20
|
6.49
|
|||||
Industrials
|
1.24
|
10.56
|
|||||
Materials
|
0.32
|
4.81
|
*
|
The sectors above are the Global Industry Classification Standard (“GICS”) sector classifications. 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.
|
Average annual total returns (%) as of 03/31/16
|
|||||||||
Quarter
|
1-year
|
3-year
|
Since
inception |
||||||
Ariel Global Fund–Investor Class
|
+
|
2.41
|
–
|
0.13
|
+
|
8.57
|
+
|
9.29
|
|
Ariel Global Fund–Institutional Class
|
+
|
2.48
|
+
|
0.08
|
+
|
8.86
|
+
|
9.57
|
|
MSCI ACWI Index (gross)
|
+
|
0.38
|
–
|
3.81
|
+
|
6.10
|
+
|
9.79
|
|
MSCI ACWI Index (net)
|
+
|
0.24
|
–
|
4.34
|
+
|
5.54
|
+
|
9.20
|
Expense ratio (as of 9/30/15) 1
|
Net
|
Gross
|
|||
Investor Class
|
1.25%
|
2.71%
|
|||
Institutional Class
|
1.00%
|
1.30%
|
Top ten companies^ (% of net assets)
|
||||||
1.
|
Microsoft Corp.
|
6.4
|
||||
2.
|
Gilead Sciences, Inc.
|
6.3
|
||||
3.
|
Baidu, Inc.
|
5.5
|
||||
4.
|
GlaxoSmithKline plc
|
5.5
|
||||
5.
|
Roche Holding AG
|
5.0
|
||||
6.
|
China Mobile Ltd.
|
5.0
|
||||
7.
|
Johnson & Johnson
|
4.1
|
||||
8.
|
Southern Co.
|
3.9
|
||||
9.
|
Verizon Communications Inc.
|
3.8
|
||||
10.
|
Harman Intl Industries, Inc.
|
3.4
|
Country weightings† (%)
|
||||
United States
|
47.07
|
|||
China
|
11.36
|
|||
United Kingdom
|
8.63
|
|||
Switzerland
|
7.52
|
|||
Germany
|
6.55
|
|||
Japan
|
5.90
|
|||
France
|
2.97
|
|||
Finland
|
2.63
|
|||
Netherlands
|
1.84
|
|||
Canada
|
1.37
|
|||
Chile
|
1.26
|
|||
Spain
|
0.98
|
|||
Brazil
|
0.66
|
|||
Singapore
|
0.30
|
|||
Hong Kong
|
0.28
|
|||
Mexico
|
0.24
|
|||
Israel
|
0.17
|
|||
Thailand
|
0.12
|
|||
Sweden
|
0.09
|
|||
Luxembourg
|
0.06
|
1
|
Effective February 1, 2014, Ariel Investments, LLC, the Adviser, has contractually agreed to waive fees and reimburse expenses in order to limit Ariel International Fund’s total annual operating expenses to 1.25% of net assets for the Investor Class and 1.00% for the Institutional Class through the end of the fiscal year ending September 30, 2017. Through January 31, 2014, the Expense Cap was 1.40% for the Investor Class and 1.15% for the Institutional Class.
|
†
|
Sector and country weightings are calculated based on equity holdings in the Fund and exclude cash and ETFs in order to make a relevant comparison to the indexes.
|
|
Notes: The graph does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. See index descriptions on page 65.
|
20 ARIELINVESTM ENTS.COM
|
![]() |
BorgWarner, Inc. (NYSE: BWA)
3850 Hamlin Road
Auburn Hills, MI 48326 248.754.9200 | borgwarner.com |
|
800.292.7435 21
|
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Landec Corporation (NASDAQ: LNDC)
3603 Haven Avenue
Menlo Park, CA 94025 650.306.1650 | landec.com |
|
22 ARIELINVESTM ENTS.COM
|
![]() Expertise Applied | Answers Delivered
|
Littelfuse (NASDAQ: LFUS)
8755 West Higgins Road, Suite 500
Chicago, IL 60631 773.628.1000 | littelfuse.com |
|
800.292.7435 23
|
Ariel Fund statistical summary
|
(UNAUDITED)
|
|
52-week range
|
Earnings per share
|
P/E calendar
|
|||||||||
Company
|
Ticker symbol
|
Price
03/31/16 |
Low
|
High
|
2014
actual calendar |
2015
actual calendar |
Forward
12 months estimate |
2014
actual P/E |
2015
actual P/E |
Forward
12 months P/E |
Market
cap. ($MM) |
Contango Oil & Gas Co.
|
MCF
|
11.79
|
3.68
|
25.41
|
(1.15)
|
(2.59)
|
(2.16)
|
NM
|
NM
|
NM
|
229
|
Bristow Group Inc.
|
BRS
|
18.92
|
11.02
|
64.64
|
4.44
|
2.18
|
2.10
|
4.3
|
8.7
|
9.0
|
661
|
MTS Systems Corp.
|
MTSC
|
60.85
|
48.64
|
76.68
|
3.55
|
2.94
|
3.38
|
17.1
|
20.7
|
18.0
|
898
|
International Speedway Corp.
|
ISCA
|
36.91
|
28.96
|
38.27
|
1.45
|
1.54
|
1.63
|
25.5
|
24.0
|
22.6
|
986
|
MSG Networks, Inc.
|
MSGN
|
17.29
|
15.30
|
87.22
|
N/A
|
1.94
|
2.05
|
N/A
|
8.9
|
8.4
|
1,059
|
DeVry Education Group Inc.
|
DV
|
17.27
|
15.81
|
37.79
|
2.79
|
2.44
|
2.29
|
6.2
|
7.1
|
7.5
|
1,091
|
Brady Corp.
|
BRC
|
26.84
|
18.46
|
28.25
|
1.65
|
1.42
|
1.60
|
16.3
|
18.9
|
16.8
|
1,253
|
U.S. Silica Holdings, Inc.
|
SLCA
|
22.72
|
13.48
|
40.17
|
2.23
|
0.22
|
(0.42)
|
10.2
|
103.3
|
NM
|
1,411
|
Sotheby’s
|
BID
|
26.73
|
18.86
|
47.28
|
2.05
|
2.60
|
1.60
|
13.0
|
10.3
|
16.7
|
1,634
|
Anixter Intl Inc.
|
AXE
|
52.11
|
37.61
|
78.68
|
5.91
|
5.29
|
4.82
|
8.8
|
9.9
|
10.8
|
1,718
|
Gannett Co. Inc.
|
GCI
|
15.14
|
10.75
|
17.91
|
N/A
|
1.69
|
1.62
|
N/A
|
9.0
|
9.3
|
1,764
|
Kennametal Inc.
|
KMT
|
22.49
|
15.11
|
39.91
|
2.74
|
2.26
|
1.33
|
8.2
|
10.0
|
16.9
|
1,792
|
Meredith Corp.
|
MDP
|
47.50
|
35.03
|
55.56
|
3.26
|
3.45
|
3.59
|
14.6
|
13.8
|
13.2
|
1,792
|
Simpson Manufacturing Co., Inc.
|
SSD
|
38.17
|
30.25
|
38.45
|
1.56
|
1.41
|
1.73
|
24.5
|
27.1
|
22.1
|
1,843
|
Graham Holdings Co.
|
GHC
|
480.00
|
425.14
|
1119.54
|
43.29
|
39.25
|
25.66
|
11.1
|
12.2
|
18.7
|
2,243
|
Janus Capital Group Inc.
|
JNS
|
14.63
|
11.07
|
18.98
|
0.84
|
0.96
|
0.94
|
17.4
|
15.2
|
15.6
|
2,717
|
Littelfuse, Inc.
|
LFUS
|
123.11
|
82.53
|
124.59
|
5.09
|
5.45
|
6.13
|
24.2
|
22.6
|
20.1
|
2,752
|
Bio-Rad Laboratories, Inc.
|
BIO
|
136.72
|
122.03
|
152.38
|
5.28
|
4.75
|
5.25
|
25.9
|
28.8
|
26.0
|
3,314
|
Fair Isaac Corp.
|
FICO
|
106.09
|
77.57
|
106.64
|
3.05
|
3.24
|
3.77
|
34.8
|
32.7
|
28.1
|
3,329
|
The Madison Square Garden Co
|
MSG
|
166.36
|
139.10
|
184.67
|
N/A
|
1.02
|
1.02
|
N/A
|
163.1
|
163.1
|
3,343
|
Charles River Laboratories Intl, Inc.
|
CRL
|
75.94
|
59.99
|
81.61
|
3.46
|
3.76
|
4.30
|
21.9
|
20.2
|
17.7
|
3,548
|
Zebra Technologies Corp.
|
ZBRA
|
69.00
|
52.14
|
119.47
|
3.61
|
4.78
|
5.58
|
19.1
|
14.4
|
12.4
|
3,598
|
Dun & Bradstreet Corp.
|
DNB
|
103.08
|
85.99
|
134.92
|
7.73
|
7.25
|
7.30
|
13.3
|
14.2
|
14.1
|
3,734
|
First American Financial Corp.
|
FAF
|
38.11
|
31.74
|
43.16
|
2.04
|
2.62
|
2.82
|
18.7
|
14.5
|
13.5
|
4,164
|
Lazard Ltd
|
LAZ
|
38.80
|
29.26
|
59.82
|
3.20
|
3.74
|
3.46
|
12.1
|
10.4
|
11.2
|
5,035
|
TEGNA, Inc.
|
TGNA
|
23.46
|
21.11
|
38.48
|
N/A
|
1.78
|
2.57
|
N/A
|
13.2
|
9.1
|
5,129
|
JLL
|
JLL
|
117.32
|
96.67
|
179.97
|
8.84
|
10.28
|
10.06
|
13.3
|
11.4
|
11.7
|
5,289
|
KKR & Co. L.P.
|
KKR
|
14.69
|
8.00
|
24.79
|
1.84
|
1.50
|
1.94
|
8.0
|
9.8
|
7.6
|
6,599
|
Snap-on Inc.
|
SNA
|
156.99
|
133.09
|
174.52
|
6.94
|
8.10
|
9.12
|
22.6
|
19.4
|
17.2
|
9,125
|
Interpublic Group of Cos., Inc.
|
IPG
|
22.95
|
18.16
|
23.80
|
1.07
|
1.25
|
1.42
|
21.4
|
18.4
|
16.2
|
9,229
|
Western Union Co.
|
WU
|
19.29
|
16.02
|
22.84
|
1.70
|
1.73
|
1.75
|
11.3
|
11.2
|
11.0
|
9,560
|
CBRE Group, Inc.
|
CBG
|
28.82
|
22.74
|
39.77
|
1.94
|
2.38
|
2.62
|
14.9
|
12.1
|
11.0
|
9,633
|
Mattel, Inc.
|
MAT
|
33.62
|
19.45
|
34.36
|
1.57
|
1.46
|
1.65
|
21.4
|
23.0
|
20.4
|
11,431
|
Laboratory Corp. of America Holdings
|
LH
|
117.13
|
97.79
|
129.33
|
6.80
|
7.91
|
8.72
|
17.2
|
14.8
|
13.4
|
11,912
|
Mohawk Industries, Inc.
|
MHK
|
190.90
|
148.56
|
212.16
|
8.42
|
10.56
|
12.19
|
22.7
|
18.1
|
15.7
|
14,118
|
Northern Trust Corp.
|
NTRS
|
65.17
|
54.38
|
79.25
|
3.41
|
3.85
|
4.07
|
19.1
|
16.9
|
16.0
|
14,923
|
J.M. Smucker Co.
|
SJM
|
129.84
|
104.30
|
130.61
|
6.14
|
7.27
|
7.45
|
21.1
|
17.9
|
17.4
|
15,540
|
Royal Caribbean Cruises Ltd.
|
RCL
|
82.15
|
64.21
|
103.40
|
3.47
|
4.83
|
6.07
|
23.7
|
17.0
|
13.5
|
17,860
|
24
|
ARIELINVESTMENTS.COM
|
Ariel Appreciation Fund statistical summary
|
(UNAUDITED)
|
|
52-week range
|
Earnings per share
|
P/E calendar
|
|||||||||
Company
|
Ticker
symbol |
Price
03/31/16 |
Low
|
High
|
2014
actual calendar |
2015
actual calendar |
Forward
12 months estimate |
2014
actual P/E |
2015
actual P/E |
Forward
12 months P/E |
Market
cap. ($MM) |
Contango Oil & Gas Co.
|
MCF
|
11.79
|
3.68
|
25.41
|
(1.15)
|
(2.59)
|
(2.16)
|
NM
|
NM
|
NM
|
229
|
Houlihan Lokey, Inc.
|
HLI
|
24.90
|
18.22
|
26.75
|
N/A
|
1.27
|
1.75
|
N/A
|
19.6
|
14.2
|
301
|
Bristow Group Inc.
|
BRS
|
18.92
|
11.02
|
64.64
|
4.44
|
2.18
|
2.10
|
4.3
|
8.7
|
9.0
|
661
|
International Speedway Corp.
|
ISCA
|
36.91
|
28.96
|
38.27
|
1.45
|
1.54
|
1.63
|
25.5
|
24.0
|
22.6
|
986
|
MSG Networks, Inc.
|
MSGN
|
17.29
|
15.30
|
87.22
|
N/A
|
1.94
|
2.05
|
N/A
|
8.9
|
8.4
|
1,059
|
Anixter Intl Inc.
|
AXE
|
52.11
|
37.61
|
78.68
|
5.91
|
5.29
|
4.82
|
8.8
|
9.9
|
10.8
|
1,718
|
Kennametal Inc.
|
KMT
|
22.49
|
15.11
|
39.91
|
2.74
|
2.26
|
1.33
|
8.2
|
10.0
|
16.9
|
1,792
|
Bio-Rad Laboratories, Inc.
|
BIO
|
136.72
|
122.03
|
152.38
|
5.28
|
4.75
|
5.25
|
25.9
|
28.8
|
26.0
|
3,314
|
The Madison Square Garden Co
|
MSG
|
166.36
|
139.10
|
184.67
|
N/A
|
1.02
|
1.02
|
N/A
|
163.1
|
163.1
|
3,343
|
First American Financial Corp.
|
FAF
|
38.11
|
31.74
|
43.16
|
2.04
|
2.62
|
2.82
|
18.7
|
14.5
|
13.5
|
4,164
|
Lazard Ltd
|
LAZ
|
38.80
|
29.26
|
59.82
|
3.20
|
3.74
|
3.46
|
12.1
|
10.4
|
11.2
|
5,035
|
TEGNA, Inc.
|
TGNA
|
23.46
|
21.11
|
38.48
|
N/A
|
1.78
|
2.57
|
N/A
|
13.2
|
9.1
|
5,129
|
JLL
|
JLL
|
117.32
|
96.67
|
179.97
|
8.84
|
10.28
|
10.06
|
13.3
|
11.4
|
11.7
|
5,289
|
KKR & Co. L.P.
|
KKR
|
14.69
|
8.00
|
24.79
|
1.84
|
1.50
|
1.94
|
8.0
|
9.8
|
7.6
|
6,599
|
Snap-on Inc.
|
SNA
|
156.99
|
133.09
|
174.52
|
6.94
|
8.10
|
9.12
|
22.6
|
19.4
|
17.2
|
9,125
|
Interpublic Group of Cos., Inc.
|
IPG
|
22.95
|
18.16
|
23.80
|
1.07
|
1.25
|
1.42
|
21.4
|
18.4
|
16.2
|
9,229
|
Tiffany & Co.
|
TIF
|
73.38
|
59.73
|
96.43
|
4.20
|
4.27
|
3.77
|
17.5
|
17.2
|
19.5
|
9,249
|
Western Union Co.
|
WU
|
19.29
|
16.02
|
22.84
|
1.70
|
1.73
|
1.75
|
11.3
|
11.2
|
11.0
|
9,560
|
CBRE Group, Inc.
|
CBG
|
28.82
|
22.74
|
39.77
|
1.94
|
2.38
|
2.62
|
14.9
|
12.1
|
11.0
|
9,633
|
Nordstrom, Inc.
|
JWN
|
57.21
|
44.49
|
80.92
|
3.75
|
3.77
|
3.37
|
15.3
|
15.2
|
17.0
|
9,893
|
Mattel, Inc.
|
MAT
|
33.62
|
19.45
|
34.36
|
1.57
|
1.46
|
1.65
|
21.4
|
23.0
|
20.4
|
11,431
|
National Oilwell Varco
|
NOV
|
31.10
|
25.74
|
56.64
|
6.66
|
3.42
|
0.47
|
4.7
|
9.1
|
66.2
|
11,687
|
Newell Rubbermaid Inc.
|
NWL
|
44.29
|
33.26
|
50.90
|
2.00
|
2.54
|
2.57
|
22.1
|
17.4
|
17.2
|
11,873
|
Laboratory Corp. of America Holdings
|
LH
|
117.13
|
97.79
|
129.33
|
6.80
|
7.91
|
8.72
|
17.2
|
14.8
|
13.4
|
11,912
|
Viacom, Inc.
|
VIAB
|
41.28
|
30.11
|
73.52
|
5.47
|
5.51
|
5.59
|
7.5
|
7.5
|
7.4
|
14,302
|
Northern Trust Corp.
|
NTRS
|
65.17
|
54.38
|
79.25
|
3.41
|
3.85
|
4.07
|
19.1
|
16.9
|
16.0
|
14,923
|
J.M. Smucker Co.
|
SJM
|
129.84
|
104.30
|
130.61
|
6.14
|
7.27
|
7.45
|
21.1
|
17.9
|
17.4
|
15,540
|
St. Jude Medical, Inc.
|
STJ
|
55.00
|
48.83
|
80.84
|
4.17
|
3.94
|
4.18
|
13.2
|
14.0
|
13.2
|
15,602
|
Stanley Black & Decker, Inc.
|
SWK
|
105.21
|
88.72
|
111.18
|
6.41
|
6.55
|
6.77
|
16.4
|
16.1
|
15.5
|
15,771
|
Blackstone Group L.P.
|
BX
|
28.05
|
22.31
|
44.43
|
3.76
|
1.82
|
3.14
|
7.5
|
15.4
|
8.9
|
15,854
|
Willis Towers Watson plc
|
WLTW
|
118.66
|
104.11
|
132.34
|
6.17
|
6.39
|
7.88
|
19.2
|
18.6
|
15.1
|
16,395
|
T. Rowe Price Group, Inc.
|
TROW
|
73.46
|
63.57
|
83.52
|
4.55
|
4.63
|
4.69
|
16.1
|
15.9
|
15.7
|
18,190
|
Omnicom Group Inc.
|
OMC
|
83.23
|
64.12
|
84.23
|
4.43
|
4.67
|
5.05
|
18.8
|
17.8
|
16.5
|
19,941
|
Progressive Corp.
|
PGR
|
35.14
|
26.44
|
35.27
|
1.90
|
2.05
|
2.30
|
18.5
|
17.1
|
15.3
|
20,487
|
Zimmer Biomet Holdings, Inc.
|
ZBH
|
106.63
|
88.27
|
119.10
|
6.48
|
6.90
|
7.87
|
16.5
|
15.5
|
13.5
|
21,202
|
Franklin Resources, Inc.
|
BEN
|
39.05
|
31.00
|
52.76
|
3.69
|
3.16
|
2.70
|
10.6
|
12.4
|
14.5
|
23,143
|
CBS Corp.
|
CBS
|
55.09
|
38.51
|
63.95
|
3.00
|
3.34
|
3.99
|
18.4
|
16.5
|
13.8
|
23,238
|
AFLAC Inc.
|
AFL
|
63.14
|
51.41
|
66.53
|
6.19
|
6.08
|
6.36
|
10.2
|
10.4
|
9.9
|
26,458
|
Illinois Tool Works Inc.
|
ITW
|
102.44
|
78.79
|
102.98
|
5.09
|
5.82
|
5.91
|
20.1
|
17.6
|
17.3
|
36,966
|
Thermo Fisher Scientific Inc.
|
TMO
|
141.59
|
117.10
|
143.65
|
6.96
|
7.39
|
8.03
|
20.3
|
19.2
|
17.6
|
56,107
|
800.292.7435 | 25 |
Ariel Fund schedule of investments
|
|
|
Number of shares
|
Common stocks—98.87%
|
Value
|
|||||
Consumer discretionary & services—29.65%
|
|||||||
3,434,077
|
TEGNA, Inc.
|
$80,563,446
|
|||||
2,891,966
|
Interpublic Group of Cos., Inc.
|
66,370,620
|
|||||
1,377,908
|
Meredith Corp.
|
65,450,630
|
|||||
777,440
|
Royal Caribbean Cruises Ltd.
|
63,866,696
|
|||||
315,304
|
Mohawk Industries, Inc.(a)
|
60,191,534
|
|||||
1,630,502
|
International Speedway Corp., Class A
|
60,181,829
|
|||||
1,517,300
|
Mattel, Inc.
|
51,011,626
|
|||||
2,350,674
|
MSG Networks Inc.(a)
|
40,643,153
|
|||||
192,424
|
Madison Square Garden Co., Class A(a)
|
32,011,657
|
|||||
1,703,753
|
DeVry Education Group Inc.
|
29,423,814
|
|||||
775,065
|
Sotheby’s(a)
|
20,717,487
|
|||||
1,080,710
|
Gannett Co., Inc.
|
16,361,949
|
|||||
19,883
|
Graham Holdings Co., Class B
|
9,543,840
|
|||||
596,338,281
|
|||||||
Consumer staples—3.07%
|
|||||||
475,845
|
J.M. Smucker Co.
|
61,783,715
|
|||||
Energy—1.13%
|
|||||||
1,928,817
|
Contango Oil & Gas Co.(a)(b)
|
22,740,752
|
|||||
Financial services—29.23%
|
|||||||
2,376,403
|
Lazard Ltd., Class A
|
92,204,436
|
|||||
5,931,039
|
KKR & Co. L.P.
|
87,126,963
|
|||||
555,899
|
JLL
|
65,218,071
|
|||||
4,434,616
|
Janus Capital Group Inc.
|
64,878,432
|
|||||
561,678
|
Dun & Bradstreet Corp.
|
57,897,768
|
|||||
1,503,188
|
First American Financial Corp.
|
57,286,495
|
|||||
1,984,053
|
CBRE Group, Inc., Class A(a)
|
57,180,407
|
|||||
697,700
|
Northern Trust Corp.
|
45,469,109
|
|||||
2,310,754
|
Western Union Co.
|
44,574,445
|
|||||
150,163
|
Fair Isaac Corp.
|
15,930,793
|
|||||
587,766,919
|
|||||||
Health care—8.50%
|
|||||||
806,526
|
Charles River Laboratories Intl, Inc.(a)
|
61,247,584
|
|||||
406,443
|
Bio-Rad Laboratories, Inc.(a)
|
55,568,887
|
|||||
462,600
|
Laboratory Corp. of America Holdings(a)
|
54,184,338
|
|||||
171,000,809
|
|||||||
Materials & processing—5.44%
|
|||||||
1,554,797
|
Simpson Manufacturing Co., Inc.
|
59,346,602
|
|||||
2,206,161
|
U.S. Silica Holdings, Inc.
|
50,123,978
|
|||||
109,470,580
|
26
|
ARIELINVESTMENTS.COM
|
03/31/16 (UNAUDITED)
|
|
|
Number of shares
|
Common stocks—98.87%
|
Value
|
|||||
Producer durables—18.77%
|
|||||||
2,780,662
|
Brady Corp., Class A
|
$74,632,968
|
|||||
3,279,341
|
Kennametal Inc.
|
73,752,379
|
|||||
856,616
|
MTS Systems Corp.(b)
|
52,125,084
|
|||||
2,683,655
|
Bristow Group Inc.(b)
|
50,774,753
|
|||||
721,100
|
Zebra Technologies Corp.(a)
|
49,755,900
|
|||||
328,166
|
Littelfuse, Inc.
|
40,400,516
|
|||||
229,013
|
Snap-on Inc.
|
35,952,751
|
|||||
377,394,351
|
|||||||
Technology—3.08%
|
|||||||
1,189,103
|
Anixter Intl Inc.(a)
|
61,964,157
|
|||||
Total common stocks (Cost $1,496,119,543)
|
1,988,459,564
|
||||||
Principal amount
|
Repurchase agreement—0.60%
|
Value
|
|||||
$12,089,402
|
Fixed Income Clearing Corporation, 0.03%, dated 03/31/2016, due 04/01/2016, repurchase price
$12,089,402, (collaterized by Federal Home Loan Bank, value $12,332,597, 5.50% due 07/15/2036)
(Cost $12,089,402)
|
$12,089,402
|
|||||
Total Investments—99.47% (Cost $1,508,208,945)
|
2,000,548,966
|
||||||
Other Assets less Liabilities—0.53%
|
10,727,312
|
||||||
Net Assets—100.00%
|
$2,011,276,278
|
800.292.7435 | 27 |
Ariel Appreciation Fund schedule of investments
|
|
|
Number of shares
|
Common stocks—97.81%
|
Value
|
|||||
Consumer discretionary & services—23.64%
|
|||||||
810,000
|
Omnicom Group Inc.
|
$67,416,300
|
|||||
2,779,430
|
Interpublic Group of Cos., Inc.
|
63,787,918
|
|||||
1,351,000
|
Viacom, Inc., Class B
|
55,769,280
|
|||||
1,597,300
|
Mattel, Inc.
|
53,701,226
|
|||||
855,800
|
CBS Corp., Class B
|
47,146,022
|
|||||
694,500
|
Nordstrom, Inc.
|
39,732,345
|
|||||
648,258
|
International Speedway Corp., Class A
|
23,927,203
|
|||||
899,500
|
TEGNA, Inc.
|
21,102,270
|
|||||
241,400
|
Tiffany & Co.
|
17,713,932
|
|||||
195,000
|
Newell Rubbermaid Inc.
|
8,636,550
|
|||||
474,800
|
MSG Networks Inc.(a)
|
8,209,292
|
|||||
33,466
|
Madison Square Garden Co., Class A(a)
|
5,567,403
|
|||||
412,709,741
|
|||||||
Consumer staples—3.34%
|
|||||||
449,075
|
J.M. Smucker Co.
|
58,307,898
|
|||||
Energy—2.20%
|
|||||||
1,036,100
|
National Oilwell Varco
|
32,222,710
|
|||||
519,982
|
Contango Oil & Gas Co.(a)
|
6,130,588
|
|||||
38,353,298
|
|||||||
Financial services—33.06%
|
|||||||
1,231,900
|
AFLAC Inc.
|
77,782,166
|
|||||
1,097,200
|
Northern Trust Corp.
|
71,504,524
|
|||||
1,797,600
|
First American Financial Corp.
|
68,506,536
|
|||||
1,626,820
|
Lazard Ltd., Class A
|
63,120,616
|
|||||
2,884,600
|
Western Union Co.
|
55,643,934
|
|||||
1,248,300
|
Franklin Resources, Inc.
|
48,746,115
|
|||||
2,183,868
|
KKR & Co. L.P.
|
32,081,021
|
|||||
911,400
|
Progressive Corp.
|
32,026,596
|
|||||
271,600
|
JLL
|
31,864,112
|
|||||
999,500
|
Blackstone Group L.P.
|
28,035,975
|
|||||
213,300
|
Willis Towers Watson Pub Ltd Shs
|
25,310,178
|
|||||
234,950
|
T. Rowe Price Group, Inc.
|
17,259,427
|
|||||
533,030
|
Houlihan Lokey, Inc.
|
13,272,447
|
|||||
423,250
|
CBRE Group, Inc., Class A(a)
|
12,198,065
|
|||||
577,351,712
|
|||||||
Health care—16.60%
|
|||||||
785,300
|
Zimmer Biomet Holdings, Inc.
|
83,736,539
|
|||||
594,500
|
Laboratory Corp. of America Holdings(a)
|
69,633,785
|
|||||
1,135,100
|
St. Jude Medical, Inc.
|
62,430,500
|
|||||
354,654
|
Thermo Fisher Scientific Inc.
|
50,215,460
|
|||||
174,125
|
Bio-Rad Laboratories, Inc.(a)
|
23,806,370
|
|||||
289,822,654
|
28
|
ARIELINVESTMENTS.COM
|
|
03/31/16 (UNAUDITED)
|
||
Number of shares
|
Common stocks—97.81%
|
Value
|
|||||
Producer durables—16.39%
|
|||||||
3,197,100
|
Kennametal Inc.
|
$71,902,779
|
|||||
667,299
|
Stanley Black & Decker, Inc.
|
70,206,528
|
|||||
585,250
|
Illinois Tool Works Inc.
|
59,953,010
|
|||||
2,426,964
|
Bristow Group Inc.(b)
|
45,918,159
|
|||||
243,600
|
Snap-on Inc.
|
38,242,764
|
|||||
286,223,240
|
|||||||
Technology—2.58%
|
|||||||
864,400
|
Anixter Intl Inc.(a)
|
45,043,884
|
|||||
Total common stocks (Cost $1,253,054,750)
|
1,707,812,427
|
||||||
Principal amount
|
Repurchase agreement—1.70%
|
Value
|
|||||
$29,743,923
|
Fixed Income Clearing Corporation, 0.03%, dated 03/31/2016, due 04/01/2016, repurchase price
$29,743,923, (collaterized by Federal Home Loan Mortgage Corp., value $30,340,144, 4.125%,
due 10/11/2033) (Cost $29,743,923)
|
$29,743,923
|
|||||
Total Investments—99.51% (Cost $1,282,798,673)
|
1,737,556,350
|
||||||
Other Assets less Liabilities—0.49%
|
8,584,607
|
||||||
Net Assets—100.00%
|
$1,746,140,957
|
800.292.7435 | 29 |
Ariel Focus Fund schedule of investments
|
03/31/16 (UNAUDITED)
|
|
Number of shares
|
Common stocks—99.10%
|
Value
|
|||||
Consumer discretionary & services—8.41%
|
|||||||
27,800
|
Bed Bath & Beyond Inc.(a)
|
$1,379,992
|
|||||
32,600
|
BorgWarner Inc.
|
1,251,840
|
|||||
139,000
|
Pier 1 Imports, Inc.
|
974,390
|
|||||
3,606,222
|
|||||||
Energy—10.21%
|
|||||||
20,200
|
Exxon Mobil Corp.
|
1,688,518
|
|||||
48,600
|
National Oilwell Varco
|
1,511,460
|
|||||
20,200
|
Apache Corp.
|
985,962
|
|||||
47,700
|
Chesapeake Energy Corp.(a)
|
196,524
|
|||||
4,382,464
|
|||||||
Financial services—25.36%
|
|||||||
127,400
|
Western Union Co.
|
2,457,546
|
|||||
108,900
|
KKR & Co. L.P.
|
1,599,741
|
|||||
9,800
|
Goldman Sachs Group, Inc.
|
1,538,404
|
|||||
56,550
|
Morgan Stanley
|
1,414,316
|
|||||
23,200
|
JPMorgan Chase & Co.
|
1,373,904
|
|||||
36,800
|
Progressive Corp.
|
1,293,152
|
|||||
32,700
|
Bank of New York Mellon Corp.
|
1,204,341
|
|||||
10,881,404
|
|||||||
Health care—16.20%
|
|||||||
18,000
|
Zimmer Biomet Holdings, Inc.
|
1,919,340
|
|||||
16,000
|
Laboratory Corp. of America Holdings(a)
|
1,874,080
|
|||||
14,900
|
Johnson & Johnson
|
1,612,180
|
|||||
20,000
|
St. Jude Medical, Inc.
|
1,100,000
|
|||||
68,600
|
Hanger, Inc.(a)
|
445,900
|
|||||
6,951,500
|
|||||||
Materials & processing—7.63%
|
|||||||
61,000
|
Mosaic Co.
|
1,647,000
|
|||||
119,782
|
Barrick Gold Corp.
|
1,626,639
|
|||||
3,273,639
|
|||||||
Producer durables—14.84%
|
|||||||
22,600
|
Stanley Black & Decker, Inc.
|
2,377,746
|
|||||
9,900
|
Lockheed Martin Corp.
|
2,192,850
|
|||||
51,100
|
Kennametal Inc.
|
1,149,239
|
|||||
9,400
|
Zebra Technologies Corp.(a)
|
648,600
|
|||||
6,368,435
|
|||||||
Technology—16.45%
|
|||||||
59,100
|
Oracle Corp.
|
2,417,781
|
|||||
15,900
|
International Business Machines Corp.
|
2,408,055
|
|||||
22,400
|
Microsoft Corp.
|
1,237,152
|
|||||
19,100
|
Anixter Intl Inc.(a)
|
995,301
|
|||||
7,058,289
|
|||||||
Total common stocks (Cost $41,430,038)
|
42,521,953
|
||||||
Principal amount
|
Repurchase agreement—0.93%
|
Value
|
|||||
$399,615
|
Fixed Income Clearing Corporation, 0.03%, dated 03/31/2016, due 04/01/2016, repurchase price $399,615, (collaterized by Federal Home Loan Bank, value $408,777, 5.50%, due 07/15/2036) (Cost $399,615)
|
$399,615
|
|||||
Total Investments—100.03% (Cost $41,829,653)
|
42,921,568
|
||||||
Other Assets less Liabilities—(0.03)%
|
(13,068)
|
||||||
Net Assets—100.00%
|
$42,908,500
|
30
|
ARIELINVESTMENTS.COM
|
Ariel Discovery Fund schedule of investments
|
03/31/16 (UNAUDITED)
|
|
Number of shares
|
Common stocks— 96.83%
|
Value
|
|||||
Consumer discretionary & services—23.62%
|
|||||||
236,100
|
Gaiam, Inc., Class A(a)
|
$1,511,040
|
|||||
214,974
|
Rosetta Stone Inc.(a)
|
1,442,476
|
|||||
69,402
|
XO Group Inc.(a)
|
1,113,902
|
|||||
169,157
|
Century Casinos, Inc.(a)
|
1,042,007
|
|||||
39,900
|
Superior Industries Intl, Inc.
|
880,992
|
|||||
177,500
|
Skullcandy Inc.(a)
|
631,900
|
|||||
15,200
|
International Speedway Corp., Class A
|
561,032
|
|||||
3,600
|
Strattec Security Corp.
|
206,604
|
|||||
21,700
|
West Marine, Inc.(a)
|
197,253
|
|||||
5,600
|
Movado Group Inc.
|
154,168
|
|||||
7,741,374
|
|||||||
Energy—5.58%
|
|||||||
75,254
|
Contango Oil & Gas Co.(a)
|
887,245
|
|||||
84,100
|
Gulf Island Fabrication, Inc.
|
660,185
|
|||||
92,500
|
Mitcham Industries, Inc.(a)
|
283,050
|
|||||
1,830,480
|
|||||||
Financial services—13.22%
|
|||||||
516,718
|
Cowen Group, Inc., Class A(a)
|
1,968,696
|
|||||
21,800
|
First American Financial Corp.
|
830,798
|
|||||
18,900
|
MB Financial, Inc.
|
613,305
|
|||||
57,400
|
Real Industry Inc.(a)
|
499,380
|
|||||
30,500
|
Capital Southwest Corp.
|
423,035
|
|||||
4,335,214
|
|||||||
Health care—2.01%
|
|||||||
191,385
|
Kindred Biosciences, Inc.(a)
|
660,278
|
|||||
Materials & processing—5.65%
|
|||||||
80,631
|
Landec Corp.(a)
|
846,626
|
|||||
11,373
|
Simpson Manufacturing Co., Inc.
|
434,107
|
|||||
288,191
|
Orion Energy Systems, Inc.(a)
|
400,585
|
|||||
77,036
|
Rentech, Inc.(a)
|
171,020
|
|||||
1,852,338
|
|||||||
Producer durables—17.12%
|
|||||||
52,099
|
Team, Inc.(a)
|
1,582,768
|
|||||
56,600
|
Bristow Group Inc.
|
1,070,872
|
|||||
81,400
|
Electro Rent Corp.
|
753,764
|
|||||
183,525
|
Spartan Motors Inc.
|
724,924
|
|||||
14,100
|
Brink’s Co.
|
473,619
|
|||||
22,500
|
CRA International, Inc.(a)
|
441,900
|
|||||
16,600
|
ArcBest Corp.
|
358,394
|
|||||
124,902
|
Erickson Inc.(a)
|
206,088
|
|||||
5,612,329
|
|||||||
Technology—20.63%
|
|||||||
330,500
|
RealNetworks, Inc.(a)
|
1,341,830
|
|||||
221,800
|
SeaChange Intl, Inc.(a)
|
1,224,336
|
|||||
193,040
|
Telenav Inc.(a)
|
1,138,936
|
|||||
100,400
|
Brooks Automation, Inc.
|
1,044,160
|
|||||
156,880
|
PCTEL, Inc.
|
749,886
|
|||||
456,197
|
Imation Corp.(a)
|
707,105
|
|||||
35,400
|
Electro Scientific Industries, Inc.(a)
|
253,110
|
|||||
20,900
|
Digi International Inc.(a)
|
197,087
|
|||||
144,313
|
Rubicon Technology, Inc.(a)
|
105,349
|
|||||
6,761,799
|
800.292.7435 | 31 |
Ariel Discovery Fund schedule of investments (continued)
|
03/31/16 (UNAUDITED)
|
|
Number of shares
|
Common stocks— 96.83%
|
Value
|
|||||
Utilities—9.00%
|
|||||||
201,286
|
ORBCOMM, Inc.(a)
|
$2,039,027
|
|||||
1,716,312
|
Pendrell Corp.(a)
|
909,645
|
|||||
2,948,672
|
|||||||
Total common stocks (Cost $39,664,646)
|
31,742,484
|
||||||
Principal amount
|
Repurchase agreement—3.15%
|
Value
|
|||||
$1,032,364
|
Fixed Income Clearing Corporation, 0.03%, dated 03/31/2016, due 04/01/2016, repurchase price $1,032,364, (collaterized by Federal Home Loan Bank, value $1,053,121, 5.50%, due 07/15/2036) (Cost $1,032,364)
|
$1,032,364
|
|||||
Total Investments—99.98% (Cost $40,697,010)
|
32,774,848
|
||||||
Other Assets less Liabilities—0.02%
|
7,104
|
||||||
Net Assets—100.00%
|
$32,781,952
|
32
|
ARIELINVESTMENTS.COM
|
Ariel International Fund schedule of investments
|
03/31/16 (UNAUDITED)
|
|
Number of shares
|
Common stocks— 51.73%
|
Value
|
|||||
Canada—1.33%
|
|||||||
20,675
|
Rogers Communications Inc.
|
$827,796
|
|||||
20,257
|
IGM Financial Inc.
|
610,167
|
|||||
8,369
|
Suncor Energy, Inc.
|
233,075
|
|||||
1,671,038
|
|||||||
China—5.13%
|
|||||||
13,403
|
Baidu, Inc. ADR(a)
|
2,558,365
|
|||||
45,570
|
China Mobile Ltd. ADR
|
2,526,856
|
|||||
109,000
|
China Mobile Ltd.
|
1,214,023
|
|||||
162,000
|
Lenovo Group Ltd.
|
126,553
|
|||||
6,425,797
|
|||||||
Finland—2.34%
|
|||||||
467,926
|
Nokia Corp. ADR
|
2,765,443
|
|||||
28,466
|
Nokia Corp.
|
169,245
|
|||||
2,934,688
|
|||||||
France—2.66%
|
|||||||
17,644
|
Michelin (CGDE)
|
1,805,534
|
|||||
18,515
|
BNP Paribas SA
|
931,847
|
|||||
1,961
|
L’Air Liquide SA
|
220,665
|
|||||
1,875
|
Euler Hermes Group
|
169,917
|
|||||
4,184
|
Eutelsat Communications
|
135,164
|
|||||
1,327
|
Technip SA
|
73,552
|
|||||
3,336,679
|
|||||||
Germany—8.12%
|
|||||||
51,211
|
Deutsche Boerse AG
|
4,369,891
|
|||||
85,298
|
Dialog Semiconductor plc(a)
|
3,375,282
|
|||||
417,720
|
Telefonica Deutschland GmbH & Co.
|
2,263,015
|
|||||
4,813
|
Deutsche Post AG
|
133,741
|
|||||
461
|
BASF SE
|
34,779
|
|||||
10,176,708
|
|||||||
Hong Kong—0.38%
|
|||||||
803,321
|
Li & Fung Ltd.
|
476,358
|
|||||
Ireland—0.47%
|
|||||||
6,800
|
Ryanair Holdings plc ADR(a)
|
583,576
|
|||||
Israel—0.31%
|
|||||||
109,767
|
Bank Leumi Le-Israel BM(a)
|
394,211
|
|||||
Italy—0.70%
|
|||||||
121,101
|
Snam SpA
|
758,593
|
|||||
1,976
|
DiaSorin SpA
|
114,111
|
|||||
872,704
|
800.292.7435 | 33 |
Ariel International Fund schedule of investments (continued)
|
||
Number of shares
|
Common stocks— 51.73%
|
Value
|
|||||
Japan—7.87%
|
|||||||
14,200
|
Shimamura Co., Ltd.
|
$1,772,713
|
|||||
9,300
|
Nintendo Co., Ltd.
|
1,322,138
|
|||||
8,700
|
Daito Trust Construction Co., Ltd.
|
1,235,293
|
|||||
78,700
|
Nikon Corp.
|
1,204,153
|
|||||
35,500
|
Canon Inc.
|
1,058,266
|
|||||
19,900
|
Toyota Motor Corp.
|
1,052,422
|
|||||
175,400
|
Anritsu Corp.
|
964,704
|
|||||
12,700
|
Japan Tobacco Inc.
|
529,237
|
|||||
17,201
|
Canon Inc. ADR
|
512,934
|
|||||
1,677
|
Toyota Motor Corp. ADR
|
178,299
|
|||||
2,400
|
Japan Exchange Group, Inc.
|
36,764
|
|||||
9,866,923
|
|||||||
Luxembourg—0.32%
|
|||||||
2,624
|
RTL Group(b)
|
222,267
|
|||||
6,309
|
Tenaris ADR
|
156,211
|
|||||
268
|
RTL Group(c)
|
22,658
|
|||||
401,136
|
|||||||
Netherlands—3.00%
|
|||||||
149,846
|
Ahold N.V.
|
3,370,977
|
|||||
5,321
|
Gemalto N.V.
|
393,378
|
|||||
3,764,355
|
|||||||
Singapore—0.25%
|
|||||||
22,100
|
United Overseas Bank Ltd.
|
309,402
|
|||||
Spain—1.06%
|
|||||||
48,429
|
Endesa SA
|
929,661
|
|||||
8,249
|
Tecnicas Reunidas SA
|
232,082
|
|||||
41,425
|
Banco Popular Español SA
|
107,803
|
|||||
6,448
|
Distribuidora Internacional
|
33,502
|
|||||
7,075
|
Banco Santander SA(a)
|
31,188
|
|||||
1,334,236
|
|||||||
Sweden—0.30%
|
|||||||
11,219
|
H&M Hennes & Mauritz AB, Class B
|
374,093
|
|||||
Switzerland—5.79%
|
|||||||
15,083
|
Roche Holding AG
|
3,712,907
|
|||||
4,027
|
Swisscom AG
|
2,188,246
|
|||||
344
|
SGS SA
|
726,960
|
|||||
21,915
|
UBS AG
|
353,038
|
|||||
2,430
|
Nestle SA
|
181,577
|
|||||
826
|
Novartis AG
|
59,835
|
|||||
1,968
|
ABB Ltd.
|
38,355
|
|||||
7,260,918
|
|||||||
United Arab Emirates—0.04%
|
|||||||
133,741
|
Dubai Financial Market
|
49,520
|
34
|
ARIELINVESTMENTS.COM
|
|
03/31/16 (UNAUDITED)
|
||
Number of shares
|
Common stocks— 51.73%
|
Value
|
|||||
United Kingdom—9.05%
|
|||||||
28,282
|
Reckitt Benckiser Group plc
|
$2,733,726
|
|||||
117,105
|
GlaxoSmithKline plc
|
2,374,870
|
|||||
39,823
|
GlaxoSmithKline plc ADR
|
1,614,823
|
|||||
207,033
|
HSBC Holdings plc
|
1,290,206
|
|||||
7,697
|
British American Tobacco plc ADR
|
899,856
|
|||||
102,462
|
British Telecom Group plc
|
648,244
|
|||||
33,730
|
IMI plc
|
461,436
|
|||||
10,585
|
Markit Ltd.(a)
|
374,180
|
|||||
66,307
|
Countrywide plc
|
367,220
|
|||||
10,311
|
HSBC Holdings plc ADR
|
320,878
|
|||||
7,694
|
Diageo plc
|
207,915
|
|||||
6,070
|
BT Group plc ADR
|
194,726
|
|||||
16,787
|
IG Group Holdings plc
|
192,882
|
|||||
319
|
Diageo plc ADR
|
34,411
|
|||||
11,715,373
|
|||||||
United States—2.61%
|
|||||||
7,943
|
Core Laboratories N.V.
|
892,873
|
|||||
9,965
|
EOG Resources Inc.
|
723,260
|
|||||
7,346
|
Philip Morris Intl, Inc.
|
720,716
|
|||||
5,082
|
Harman Intl Industries, Inc.
|
452,501
|
|||||
1,747
|
AFLAC Inc.
|
110,306
|
|||||
2,899,656
|
|||||||
Total common stocks (Cost $63,630,868)
|
64,847,371
|
||||||
Number of shares
|
Investment companies—1.63%
|
Value
|
|||||
Exchange Traded Funds—1.63%
|
|||||||
52,452
|
iShares MSCI Switzerland Cap ETF
|
$1,559,398
|
|||||
13,629
|
Vanguard MSCI EAFE ETF
|
488,736
|
|||||
2,048,134
|
|||||||
Total Investment companies (Cost $2,100,141)
|
2,048,134
|
||||||
Principal amount
|
Repurchase agreement—2.95%
|
Value
|
|||||
$3,691,233
|
Fixed Income Clearing Corporation, 0.03%, dated 03/31/2016, due 04/01/2016, repurchase price
|
||||||
$3,691,233, (collaterized by Federal Home Loan Bank., value $3,769,063, 5.50%, due 07/15/2036)
|
|||||||
(Cost $3,691,233)
|
$3,691,233
|
||||||
Total Investments—(Cost $69,422,242) 56.31%
|
70,586,738
|
||||||
Cash, Foreign Currency, Other Assets less Liabilities—43.69%
|
54,761,003
|
||||||
Net Assets—100.00%
|
$125,347,741
|
800.292.7435 | 35 |
Ariel Global Fund schedule of investments
|
||
Number of shares
|
Common stocks— 93.56%
|
Value
|
|||||
Brazil—0.61%
|
|||||||
47,769
|
Itau Unibanco Holding SA ADR
|
$410,336
|
|||||
Canada—1.28%
|
|||||||
10,871
|
Rogers Communications Inc.
|
435,259
|
|||||
10,216
|
IGM Financial Inc.
|
307,719
|
|||||
4,149
|
Suncor Energy, Inc.
|
115,549
|
|||||
858,527
|
|||||||
Chile—1.17%
|
|||||||
40,624
|
Banco Santander-Chile ADR
|
786,074
|
|||||
China—10.63%
|
|||||||
19,280
|
Baidu, Inc. ADR(a)
|
3,680,166
|
|||||
172,500
|
China Mobile Ltd.
|
1,921,275
|
|||||
25,647
|
China Mobile Ltd. ADR
|
1,422,126
|
|||||
108,000
|
Lenovo Group Ltd.
|
84,369
|
|||||
7,107,936
|
|||||||
Finland—2.46%
|
|||||||
243,687
|
Nokia Corp. ADR
|
1,440,190
|
|||||
34,994
|
Nokia Corp.
|
208,058
|
|||||
1,648,248
|
|||||||
France—2.78%
|
|||||||
13,887
|
Michelin (CGDE)
|
1,421,075
|
|||||
8,658
|
BNP Paribas SA
|
435,751
|
|||||
1,856,826
|
|||||||
Germany—6.13%
|
|||||||
25,816
|
Deutsche Boerse AG
|
2,202,908
|
|||||
26,081
|
Dialog Semiconductor plc(a)
|
1,032,037
|
|||||
152,833
|
Telefonica Deutschland GmbH & Co.
|
827,979
|
|||||
450
|
BASF SE(a)
|
33,949
|
|||||
4,096,873
|
|||||||
Hong Kong—0.27%
|
|||||||
300,000
|
Li & Fung Ltd.
|
177,896
|
|||||
Israel—0.16%
|
|||||||
29,464
|
Bank Leumi Le-Israel BM(a)
|
105,815
|
|||||
Japan—5.52%
|
|||||||
46,300
|
Nikon Corp.
|
708,415
|
|||||
4,200
|
Daito Trust Construction Co., Ltd.
|
596,348
|
|||||
4,700
|
Shimamura Co., Ltd.
|
586,743
|
|||||
9,500
|
Toyota Motor Corp.
|
502,412
|
|||||
3,250
|
Nintendo Co., Ltd.
|
462,037
|
|||||
14,300
|
Canon Inc.
|
426,287
|
|||||
3,100
|
Japan Tobacco Inc.
|
129,184
|
|||||
22,600
|
Anritsu Corp.
|
124,301
|
|||||
1,155
|
Toyota Motor Corp. ADR
|
122,800
|
|||||
2,100
|
Japan Exchange Group, Inc.
|
32,168
|
|||||
3,690,695
|
36
|
ARIELINVESTMENTS.COM
|
|
03/31/16 (UNAUDITED)
|
||
Number of shares
|
Common stocks— 93.56%
|
Value
|
|||||
Luxembourg—0.05%
|
|||||||
1,496
|
Tenaris ADR
|
$37,041
|
|||||
Mexico—0.23%
|
|||||||
16,777
|
Santander Mexico Financial Group ADR
|
151,496
|
|||||
Netherlands—1.72%
|
|||||||
48,125
|
Ahold N.V.
|
1,082,633
|
|||||
959
|
Gemalto N.V.
|
70,898
|
|||||
1,153,531
|
|||||||
Singapore—0.28%
|
|||||||
13,200
|
United Overseas Bank Ltd.
|
184,801
|
|||||
Spain—0.92%
|
|||||||
26,067
|
Endesa SA
|
500,392
|
|||||
3,979
|
Tecnicas Reunidas SA
|
111,948
|
|||||
612,340
|
|||||||
Sweden—0.08%
|
|||||||
1,596
|
H&M Hennes & Mauritz AB, Class B
|
53,218
|
|||||
Switzerland—7.04%
|
|||||||
13,650
|
Roche Holding AG
|
3,360,153
|
|||||
2,413
|
Swisscom AG
|
1,311,209
|
|||||
17
|
SGS SA
|
35,925
|
|||||
4,707,287
|
|||||||
Thailand—0.12%
|
|||||||
15,700
|
Kasikornbank PCL
|
78,098
|
|||||
United Kingdom—8.07%
|
|||||||
50,512
|
GlaxoSmithKline plc ADR
|
2,048,262
|
|||||
79,279
|
GlaxoSmithKline plc
|
1,607,765
|
|||||
7,152
|
Reckitt Benckiser Group plc
|
691,309
|
|||||
86,458
|
HSBC Holdings plc
|
538,796
|
|||||
31,544
|
British Telecom Group plc
|
199,569
|
|||||
5,694
|
HSBC Holdings plc ADR
|
177,197
|
|||||
1,153
|
British American Tobacco plc
|
67,730
|
|||||
2,475
|
Diageo plc
|
66,882
|
|||||
5,397,510
|
800.292.7435 | 37 |
Ariel Global Fund schedule of investments (continued)
|
03/31/16 (UNAUDITED)
|
||
Number of shares
|
Common stocks— 93.56%
|
Value
|
|||||
United States—44.04%
|
|||||||
77,226
|
Microsoft Corp.
|
$4,265,192
|
|||||
45,893
|
Gilead Sciences, Inc.
|
4,215,731
|
|||||
25,065
|
Johnson & Johnson
|
2,712,033
|
|||||
50,678
|
Southern Co.
|
2,621,573
|
|||||
47,409
|
Verizon Communications Inc.
|
2,563,879
|
|||||
25,239
|
Harman Intl Industries, Inc.
|
2,247,281
|
|||||
66,691
|
Tumi Holdings Inc.(a)
|
1,788,653
|
|||||
21,742
|
Quest Diagnostics Inc.
|
1,553,466
|
|||||
15,563
|
American Express Co.
|
955,568
|
|||||
8,367
|
Philip Morris Intl, Inc.
|
820,886
|
|||||
6,247
|
Core Laboratories N.V.
|
702,225
|
|||||
69,062
|
Ruckus Wireless, Inc.(a)
|
677,498
|
|||||
15,316
|
U.S. Bancorp
|
621,676
|
|||||
8,188
|
Schlumberger Ltd.
|
603,865
|
|||||
3,362
|
Berkshire Hathaway Inc., Class B(a)
|
477,001
|
|||||
115,294
|
Acacia Research Corp.(a)
|
436,964
|
|||||
21,965
|
QLogic Corp.(a)
|
295,210
|
|||||
3,599
|
EOG Resources Inc.
|
261,215
|
|||||
2,844
|
Ansys, Inc.(a)
|
254,424
|
|||||
5,783
|
Coach, Inc.
|
231,841
|
|||||
7,777
|
EMC Corp.
|
207,257
|
|||||
1,466
|
Praxair, Inc.
|
167,784
|
|||||
1,665
|
Rockwell Collins, Inc.
|
153,530
|
|||||
1,809
|
Occidental Petroleum Corp.
|
123,790
|
|||||
1,001
|
The PNC Financial Service Group, Inc.
|
84,655
|
|||||
463
|
Costco Wholesale Corp.
|
72,960
|
|||||
1,294
|
Fastenal Co.
|
63,406
|
|||||
221
|
W.W. Grainger Inc.
|
51,588
|
|||||
714
|
AFLAC Inc.
|
45,082
|
|||||
318
|
Pioneer Natural Resources Co.
|
44,755
|
|||||
431
|
Union Pacific
|
34,286
|
|||||
290
|
Accenture plc, Class A
|
33,466
|
|||||
128
|
IntercontinentalExchange, Inc.
|
30,098
|
|||||
524
|
Cullen/Frost Bankers, Inc.
|
28,878
|
|||||
29,447,716
|
|||||||
Total common stocks (Cost $57,048,246)
|
62,562,264
|
||||||
Number of shares
|
Investment companies—0.40%
|
Value
|
|||||
Exchange Traded Funds—0.40%
|
|||||||
4,623
|
Vanguard Total World Stock Index Fund ETF
|
$266,701
|
|||||
Total Investment companies (Cost $249,419)
|
266,701
|
||||||
Principal amount
|
Repurchase agreement—3.47%
|
Value
|
|||||
$2,319,961
|
Fixed Income Clearing Corporation, 0.03%, dated 03/31/2016, due 04/01/2016, repurchase price$2,319,961, (collaterized by Federal Home Loan Bank., value $2,369,521, 5.50%, due 07/15/2036) (Cost $2,319,961)
|
$2,319,961
|
|||||
Total Investments—(Cost $59,617,626) 97.43%
|
65,148,926
|
||||||
Cash, Foreign Currency, Other Assets less Liabilities—2.57%
|
1,715,518
|
||||||
Net Assets—100.00%
|
$66,864,444
|
38
|
ARIELINVESTMENTS.COM
|
Statements of assets & liabilities
|
03/31/16 (UNAUDITED)
|
|
|
|
Ariel Fund
|
Ariel Appreciation Fund
|
|
|
|
Ariel Focus Fund
|
|
|
|
Ariel Discovery Fund
|
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in unaffiliated issuers, at value (cost $1,230,947,090, $1,119,701,417,$41,430,038 and $39,664,646, respectively)
|
|
$1,862,818,975
|
|
|
$1,661,894,268
|
|
|
$42,521,953
|
|
|
$31,742,484
|
|
||||
Investments in affiliated issuers, at value (cost $265,172,453, $133,353,333, respectively)
|
|
|
125,640,589
|
|
|
|
45,918,159
|
|
|
|
—
|
|
|
|
—
|
|
Repurchase agreements, at value (cost $12,089,402,$29,743,923, $399,615 and $1,032,364, respectively)
|
|
|
12,089,402
|
|
|
|
29,743,923
|
|
|
|
399,615
|
|
|
|
1,032,364
|
|
Receivable for fund shares sold
|
|
|
2,071,561
|
|
|
|
1,098,832
|
|
|
|
4,286
|
|
|
|
660
|
|
Receivable for securities sold
|
|
|
12,273,824
|
|
|
|
9,564,680
|
|
|
|
105,906
|
|
|
|
16,583
|
|
Dividends and interest receivable
|
|
|
1,307,055
|
|
|
|
3,020,873
|
|
|
|
10,520
|
|
|
|
18,578
|
|
Prepaid and other assets
|
|
|
73,748
|
|
|
|
55,515
|
|
|
|
20,046
|
|
|
|
23,307
|
|
Total assets
|
|
|
2,016,275,154
|
|
|
|
1,751,296,250
|
|
|
|
43,062,326
|
|
|
|
32,833,976
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for securities purchased
|
|
|
2,751,490
|
|
|
|
798,584
|
|
|
|
100,881
|
|
|
|
—
|
|
Payable for fund shares redeemed
|
|
|
1,337,584
|
|
|
|
3,594,267
|
|
|
|
750
|
|
|
|
8,537
|
|
Other liabilities
|
|
|
909,802
|
|
|
|
762,442
|
|
|
|
52,195
|
|
|
|
43,487
|
|
Total liabilities
|
|
|
4,998,876
|
|
|
|
5,155,293
|
|
|
|
153,826
|
|
|
|
52,024
|
|
Net assets
|
|
$2,011,276,278
|
|
|
$1,746,140,957
|
|
|
$42,908,500
|
|
|
$32,781,952
|
|
||||
Net assets consist of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid-in capital
|
|
$1,489,973,325
|
|
|
$1,230,012,229
|
|
|
$42,185,216
|
|
|
$45,532,980
|
|
||||
Undistributed net investment income (loss)
|
|
|
14,252,805
|
|
|
|
16,238,232
|
|
|
|
183,715
|
|
|
|
(30,886
|
)
|
Accumulated net realized gain (loss) on investments
|
|
|
14,710,127
|
|
|
|
45,132,819
|
|
|
|
(552,346
|
)
|
|
|
(4,797,980
|
)
|
Net unrealized appreciation (depreciation) on investments
|
|
|
492,340,021
|
|
|
|
454,757,677
|
|
|
|
1,091,915
|
|
|
|
(7,922,162
|
)
|
Total net assets
|
|
$2,011,276,278
|
|
|
$1,746,140,957
|
|
|
$42,908,500
|
|
|
$32,781,952
|
|
||||
Investor class shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
$1,497,121,944
|
|
|
$1,513,661,467
|
|
|
$32,463,713
|
|
|
$6,262,547
|
|
||||
Shares outstanding (no par value, unlimited authorized)
|
|
|
25,270,369
|
|
|
|
33,212,692
|
|
|
|
3,036,251
|
|
|
|
748,644
|
|
Net asset value, offering and redemption price per share
|
|
$59.24
|
|
|
$45.57
|
|
|
$10.69
|
|
|
$8.37
|
|
||||
Institutional class shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
$514,154,334
|
|
|
$232,479,490
|
|
|
$10,444,787
|
|
|
$26,519,405
|
|
||||
Shares outstanding (no par value, unlimited authorized)
|
|
|
8,670,857
|
|
|
|
5,093,875
|
|
|
|
979,730
|
|
|
|
3,128,099
|
|
Net asset value, offering and redemption price per share
|
|
$59.30
|
|
|
$45.64
|
|
|
$10.66
|
|
|
$8.48
|
|
800.292.7435 | 39 |
Statements of assets & liabilities (continued)
|
03/31/16 (UNAUDITED)
|
|
|
Ariel International Fund
|
|
|
|
Ariel Global Fund
|
|
||
Assets:
|
|
|
|
|
|
|
|
|
Investments in unaffiliated issuers, at value (cost $65,731,009 and $57,297,665, respectively)
|
|
$66,895,505
|
|
|
$62,828,965
|
|
||
Repurchase agreements, at value (cost $3,691,233 and $2,319,961, respectively)
|
|
|
3,691,233
|
|
|
|
2,319,961
|
|
Foreign currencies (cost $423,435 and $1,750,676, respectively)
|
|
|
424,575
|
|
|
|
1,806,412
|
|
Cash
|
|
|
4,174,449
|
|
|
|
—
|
|
Dividends and interest receivable
|
|
|
289,779
|
|
|
|
194,543
|
|
Receivable for dividend reclaims
|
|
|
50,455
|
|
|
|
75,038
|
|
Receivable for fund shares sold
|
|
|
50,369,068
|
|
|
|
29,764
|
|
Receivable for securities and foreign currencies sold
|
|
|
15,696
|
|
|
|
80,048
|
|
Appreciation of forward currency contracts
|
|
|
430,422
|
|
|
|
134,711
|
|
Prepaid and other assets
|
|
|
40,146
|
|
|
|
31,769
|
|
Total assets
|
|
|
126,381,328
|
|
|
|
67,501,211
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Payable for securities and foreign currencies purchased
|
|
|
838,527
|
|
|
|
428,210
|
|
Payable for fund shares redeemed
|
|
|
73
|
|
|
|
—
|
|
Depreciation of forward currency contracts
|
|
|
142,057
|
|
|
|
147,647
|
|
Other liabilities
|
|
|
52,930
|
|
|
|
60,910
|
|
Total liabilities
|
|
|
1,033,587
|
|
|
|
636,767
|
|
Net assets
|
|
$125,347,741
|
|
|
$66,864,444
|
|
||
Net assets consist of:
|
|
|
|
|
|
|
|
|
Paid-in capital
|
|
$123,895,056
|
|
|
$61,157,947
|
|
||
Undistributed net investment income (loss)
|
|
|
160,359
|
|
|
|
207,221
|
|
Accumulated net realized gain (loss) on investments, foreign currencies and forward currency contracts
|
|
|
(161,597
|
)
|
|
|
(71,175
|
)
|
Net unrealized appreciation (depreciation) on:
|
|
|
|
|
|
|
|
|
Investments
|
|
|
1,164,496
|
|
|
|
5,531,300
|
|
Translation of assets and liabilities in foreign currencies
|
|
|
1,062
|
|
|
|
52,087
|
|
Forward currency contracts
|
|
|
288,365
|
|
|
|
(12,936
|
)
|
Total net assets
|
|
$125,347,741
|
|
|
$66,864,444
|
|
||
Investor class shares:
|
|
|
|
|
|
|
|
|
Net assets
|
|
$46,166,952
|
|
|
$7,899,011
|
|
||
Shares outstanding (no par value, unlimited authorized)
|
|
|
3,629,899
|
|
|
|
563,513
|
|
Net asset value, offering and redemption price per share
|
|
$12.72
|
|
|
$14.02
|
|
||
Institutional class shares:
|
|
|
|
|
|
|
|
|
Net assets
|
|
$79,180,789
|
|
|
$58,965,433
|
|
||
Shares outstanding (no par value, unlimited authorized)
|
|
|
6,334,044
|
|
|
|
4,329,776
|
|
Net asset value, offering and redemption price per share
|
|
$12.50
|
|
|
$13.62
|
|
40
|
ARIELINVESTMENTS.COM
|
Statements of operations
|
SIX MONTHS ENDED 03/31/16 (UNAUDITED)
|
|
|
|
Ariel Fund
|
Ariel Appreciation Fund
|
|
|
|
Ariel Focus Fund
|
|
|
|
Ariel Discovery Fund
|
|
||||
Investment income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaffiliated issuers
|
|
$21,034,812
|
|
|
$26,160,482
|
|
|
$525,757
|
(b)
|
|
$133,034
|
|
||||
Affiliated issuers
|
|
|
1,147,777
|
(a)
|
|
|
834,407
|
(a)
|
|
|
—
|
|
|
|
—
|
|
Interest
|
|
|
1,656
|
|
|
|
1,001
|
|
|
|
40
|
|
|
|
73
|
|
Total investment income
|
|
|
22,184,245
|
|
|
|
26,995,890
|
|
|
|
525,797
|
|
|
|
133,107
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
|
5,935,136
|
|
|
|
6,046,899
|
|
|
|
139,656
|
|
|
|
125,473
|
|
Distribution fees (Investor Class)
|
|
|
1,880,092
|
|
|
|
1,916,512
|
|
|
|
40,875
|
|
|
|
7,123
|
|
Shareholder service fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Class
|
|
|
890,875
|
|
|
|
911,839
|
|
|
|
10,929
|
|
|
|
620
|
|
Institutional Class
|
|
|
230,530
|
|
|
|
53,034
|
|
|
|
1,649
|
|
|
|
11,595
|
|
Transfer agent fees and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Class
|
|
|
293,344
|
|
|
|
243,723
|
|
|
|
30,326
|
|
|
|
14,150
|
|
Institutional Class
|
|
|
10,728
|
|
|
|
11,520
|
|
|
|
8,657
|
|
|
|
9,268
|
|
Printing and postage expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Class
|
|
|
193,478
|
|
|
|
176,147
|
|
|
|
4,965
|
|
|
|
1,966
|
|
Institutional Class
|
|
|
22,429
|
|
|
|
5,499
|
|
|
|
915
|
|
|
|
310
|
|
Trustees’ fees and expenses
|
|
|
158,338
|
|
|
|
138,276
|
|
|
|
30,183
|
|
|
|
28,904
|
|
Professional fees
|
|
|
60,627
|
|
|
|
54,597
|
|
|
|
20,956
|
|
|
|
21,501
|
|
Custody fees and expenses
|
|
|
23,873
|
|
|
|
20,030
|
|
|
|
3,002
|
|
|
|
5,496
|
|
Federal and state registration fees
|
|
|
50,285
|
|
|
|
29,383
|
|
|
|
17,255
|
|
|
|
18,968
|
|
Interest expense
|
|
|
—
|
|
|
|
286
|
|
|
|
173
|
|
|
|
—
|
|
Miscellaneous expenses
|
|
|
76,419
|
|
|
|
67,032
|
|
|
|
5,070
|
|
|
|
6,274
|
|
Total expenses before reimbursements
|
|
|
9,826,154
|
|
|
|
9,674,777
|
|
|
|
314,611
|
|
|
|
251,648
|
|
Expense reimbursements
|
|
|
—
|
|
|
|
—
|
|
|
|
(112,431
|
)
|
|
|
(87,655
|
)
|
Net expenses
|
|
|
9,826,154
|
|
|
|
9,674,777
|
|
|
|
202,180
|
|
|
|
163,993
|
|
Net investment income (loss)
|
|
|
12,358,091
|
|
|
|
17,321,113
|
|
|
|
323,617
|
|
|
|
(30,886
|
)
|
Realized and unrealized gain (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaffiliated issuers
|
|
|
79,196,420
|
|
|
|
83,152,048
|
|
|
|
431,735
|
|
|
|
(4,374,224
|
)
|
Affiliated issuers
|
|
|
—
|
(a)
|
|
|
—
|
(a)
|
|
|
—
|
|
|
|
—
|
|
Change in net unrealized appreciation (depreciation) on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaffiliated issuers
|
|
|
(12,966,059
|
)
|
|
|
16,704,957
|
|
|
|
783,891
|
|
|
|
4,106,908
|
|
Affiliated issuers
|
|
|
66,585,587
|
|
|
|
(16,023,939
|
)
|
|
|
—
|
|
|
|
—
|
|
Net gain (loss) on investments
|
|
|
132,815,948
|
|
|
|
83,833,066
|
|
|
|
1,215,626
|
|
|
|
(267,316
|
)
|
Net increase (decrease) in net assets resulting from operations
|
|
$145,174,039
|
|
|
$101,154,179
|
|
|
$1,539,243
|
|
|
$(298,202
|
)
|
800.292.7435 | 41 |
Statements of operations (continued)
|
SIX MONTHS ENDED 03/31/16 (UNAUDITED)
|
|
|
|
Ariel International Fund
|
|
|
|
Ariel Global Fund
|
|
|
Investment income:
|
|
|
|
|
|
|
|
|
Dividends
|
|
|
|
|
|
|
|
|
Unaffiliated issuers
|
|
$521,891
|
(a)
|
|
$685,548
|
(a)
|
||
Interest
|
|
|
247
|
|
|
|
248
|
|
Total investment income
|
|
|
522,138
|
|
|
|
685,796
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Management fees
|
|
|
191,383
|
|
|
|
253,620
|
|
Distribution fees (Investor Class)
|
|
|
38,475
|
|
|
|
8,725
|
|
Shareholder service fees
|
|
|
|
|
|
|
|
|
Investor Class
|
|
|
8,897
|
|
|
|
1,396
|
|
Institutional Class
|
|
|
1,761
|
|
|
|
10,971
|
|
Transfer agent fees and expenses
|
|
|
|
|
|
|
|
|
Investor Class
|
|
|
14,676
|
|
|
|
13,529
|
|
Institutional Class
|
|
|
8,777
|
|
|
|
8,656
|
|
Printing and postage expenses
|
|
|
|
|
|
|
|
|
Investor Class
|
|
|
2,081
|
|
|
|
2,021
|
|
Institutional Class
|
|
|
186
|
|
|
|
186
|
|
Trustees’ fees and expenses
|
|
|
27,138
|
|
|
|
29,749
|
|
Professional fees
|
|
|
20,437
|
|
|
|
22,788
|
|
Custody fees and expenses
|
|
|
9,295
|
|
|
|
12,004
|
|
Administration fees
|
|
|
26,825
|
|
|
|
26,825
|
|
Fund accounting fees
|
|
|
23,291
|
|
|
|
21,960
|
|
Federal and state registration fees
|
|
|
17,616
|
|
|
|
17,556
|
|
Interest expense
|
|
|
349
|
|
|
|
1,093
|
|
Miscellaneous expenses
|
|
|
5,606
|
|
|
|
6,699
|
|
Total expenses before reimbursements
|
|
|
396,793
|
|
|
|
437,778
|
|
Expense reimbursements
|
|
|
(118,727
|
)
|
|
|
(110,953
|
)
|
Net expenses
|
|
|
278,066
|
|
|
|
326,825
|
|
Net investment income
|
|
|
244,072
|
|
|
|
358,971
|
|
Realized and unrealized gain (loss):
|
|
|
|
|
|
|
|
|
Net realized gain (loss) on:
|
|
|
|
|
|
|
|
|
Investments
|
|
|
(215,002
|
)
|
|
|
(132,079
|
)
|
Foreign currency translations
|
|
|
(58,429
|
)
|
|
|
33,326
|
|
Forward currency contracts
|
|
|
157,262
|
|
|
|
78,260
|
|
Total
|
|
|
(116,169
|
)
|
|
|
(20,493
|
)
|
Change in net unrealized appreciation (depreciation) on:
|
|
|
|
|
|
|
|
|
Investments
|
|
|
1,237,868
|
|
|
|
4,307,715
|
|
Foreign currency translations
|
|
|
(1,260
|
)
|
|
|
56,372
|
|
Forward currency contracts
|
|
|
339,258
|
|
|
|
42,481
|
|
Total
|
|
|
1,575,866
|
|
|
|
4,406,568
|
|
Net gain (loss) on investments
|
|
|
1,459,697
|
|
|
|
4,386,075
|
|
Net increase (decrease) in net assets resulting from operations
|
|
$1,703,769
|
|
|
$4,745,046
|
|
42
|
ARIELINVESTMENTS.COM
|
Statements of changes in net assets
|
|
|
Ariel Fund
|
Ariel Appreciation Fund
|
||||||||||||
Six Months Ended
|
Six Months Ended
|
||||||||||||
March 31, 2016
|
Year Ended
|
March 31, 2016
|
Year Ended
|
||||||||||
(Unaudited)
|
September 30, 2015
|
(Unaudited)
|
September 30, 2015
|
||||||||||
Operations:
|
|||||||||||||
Net investment income (loss)
|
$12,358,091
|
$17,866,642
|
$17,321,113
|
$20,080,679
|
|||||||||
Net realized gain (loss) on investments
|
79,196,420
|
279,416,969
|
83,152,048
|
173,148,634
|
|||||||||
Change in net unrealized appreciation (depreciation) on investments
|
53,619,528
|
(369,916,825
|
)
|
681,018
|
(258,092,734
|
)
|
|||||||
Net increase (decrease) in net assets from operations
|
145,174,039
|
(72,633,214
|
)
|
101,154,179
|
(64,863,421
|
)
|
|||||||
Distributions to shareholders:
|
|||||||||||||
Net investment income
|
|||||||||||||
Investor Class
|
(10,754,988
|
)
|
(9,991,682
|
)
|
(17,090,416
|
)
|
(12,975,423
|
)
|
|||||
Institutional Class
|
(5,542,010
|
)
|
(4,565,741
|
)
|
(3,428,879
|
)
|
(1,997,000
|
)
|
|||||
Capital gains
|
|||||||||||||
Investor Class
|
(213,884,059
|
)
|
(218,025,914
|
)
|
(157,811,879
|
)
|
(192,280,387
|
)
|
|||||
Institutional Class
|
(74,522,019
|
)
|
(52,469,101
|
)
|
(19,534,087
|
)
|
(19,253,268
|
)
|
|||||
Total distributions
|
(304,703,076
|
)
|
(285,052,438
|
)
|
(197,865,261
|
)
|
(226,506,078
|
)
|
|||||
Share transactions:
|
|||||||||||||
Shares issued
|
|||||||||||||
Investor Class
|
76,691,114
|
362,867,652
|
68,297,113
|
236,934,382
|
|||||||||
Institutional Class
|
25,888,828
|
374,354,633
|
56,979,847
|
79,585,733
|
|||||||||
Shares issued in reinvestment of dividends and distributions
|
|||||||||||||
Investor Class
|
219,814,850
|
222,753,416
|
170,592,360
|
200,305,949
|
|||||||||
Institutional Class
|
80,060,597
|
57,031,676
|
21,813,451
|
20,271,790
|
|||||||||
Shares redeemed
|
|||||||||||||
Investor Class
|
(176,323,718
|
)
|
(577,044,021
|
)
|
(197,003,152
|
)
|
(396,872,526
|
)
|
|||||
Institutional Class
|
(66,793,421
|
)
|
(221,046,008
|
)
|
(29,184,670
|
)
|
(44,725,150
|
)
|
|||||
Net increase (decrease) from share transactions
|
159,338,250
|
218,917,348
|
91,494,949
|
95,500,178
|
|||||||||
Total increase (decrease) in net assets
|
(190,787
|
)
|
(138,768,304
|
)
|
(5,216,133
|
)
|
(195,869,321
|
)
|
|||||
Net assets:
|
|||||||||||||
Beginning of year
|
2,011,467,065
|
2,150,235,369
|
1,751,357,090
|
1,947,226,411
|
|||||||||
End of period
|
$2,011,276,278
|
$2,011,467,065
|
$1,746,140,957
|
$1,751,357,090
|
|||||||||
Undistributed net investment income (loss) included in net assets at end of period
|
$14,252,805
|
$18,191,712
|
$16,238,232
|
$19,436,414
|
|||||||||
Capital share transactions:
|
|||||||||||||
Investor shares
|
|||||||||||||
Shares sold
|
1,263,005
|
4,871,741
|
1,489,753
|
4,328,562
|
|||||||||
Shares issued to holders in reinvestment of dividends
|
3,587,119
|
3,117,567
|
3,605,383
|
3,759,118
|
|||||||||
Shares redeemed
|
(2,959,847
|
)
|
(7,961,074
|
)
|
(4,329,871
|
)
|
(7,312,435
|
)
|
|||||
Net increase (decrease)
|
1,890,277
|
28,234
|
765,265
|
775,245
|
|||||||||
Institutional shares
|
|||||||||||||
Shares sold
|
426,466
|
5,113,496
|
1,252,859
|
1,451,957
|
|||||||||
Shares issued to holders in reinvestment of dividends
|
1,303,317
|
795,751
|
460,523
|
378,926
|
|||||||||
Shares redeemed
|
(1,122,777
|
)
|
(3,028,127
|
)
|
(637,919
|
)
|
(830,083
|
)
|
|||||
Net increase (decrease)
|
607,006
|
2,881,120
|
1,075,463
|
1,000,800
|
800.292.7435 | 43 |
Statements of changes in net assets (continued)
|
|
|
Ariel Focus Fund
|
Ariel Discovery Fund
|
||||||||||||
Six Months Ended
|
Six Months Ended
|
||||||||||||
March 31, 2016
|
Year Ended
|
March 31, 2016
|
Year Ended
|
||||||||||
(Unaudited)
|
September 30, 2015
|
(Unaudited)
|
September 30, 2015
|
||||||||||
Operations:
|
|||||||||||||
Net investment income (loss)
|
$323,617
|
$588,222
|
$(30,886
|
)
|
$(192,677
|
)
|
|||||||
Net realized gain (loss) on investments
|
431,735
|
4,501,775
|
(4,374,224
|
)
|
2,921,401
|
||||||||
Change in net unrealized appreciation (depreciation)on investments
|
783,891
|
(12,497,190
|
)
|
4,106,908
|
(8,990,160
|
)
|
|||||||
Net increase (decrease) in net assets from operations
|
1,539,243
|
(7,407,193
|
)
|
(298,202
|
)
|
(6,261,436
|
)
|
||||||
Distributions to shareholders:
|
|||||||||||||
Net investment income
|
|||||||||||||
Investor Class
|
(401,524
|
)
|
(403,404
|
)
|
—
|
—
|
|||||||
Institutional Class
|
(175,566
|
)
|
(136,885
|
)
|
—
|
—
|
|||||||
Capital gains
|
|||||||||||||
Investor Class
|
(3,802,984
|
)
|
(5,136,235
|
)
|
(384,753
|
)
|
(494,961
|
)
|
|||||
Institutional Class
|
(1,167,998
|
)
|
(1,205,972
|
)
|
(1,706,059
|
)
|
(1,846,490
|
)
|
|||||
Total distributions
|
(5,548,072
|
)
|
(6,882,496
|
)
|
(2,090,812
|
)
|
(2,341,451
|
)
|
|||||
Share transactions:
|
|||||||||||||
Shares issued
|
|||||||||||||
Investor Class
|
1,405,102
|
7,446,501
|
1,140,932
|
1,617,271
|
|||||||||
Institutional Class
|
105,480
|
149,009
|
622,669
|
3,713,192
|
|||||||||
Shares issued in reinvestment of dividends and distributions
|
|||||||||||||
Investor Class
|
3,621,973
|
4,800,743
|
382,050
|
485,212
|
|||||||||
Institutional Class
|
1,341,538
|
1,339,752
|
1,706,060
|
1,846,490
|
|||||||||
Shares redeemed
|
|||||||||||||
Investor Class
|
(3,078,199
|
)
|
(20,887,925
|
)
|
(863,966
|
)
|
(4,684,689
|
)
|
|||||
Institutional Class
|
(363,587
|
)
|
(680,965
|
)
|
(315,419
|
)
|
(8,117,031
|
)
|
|||||
Net increase (decrease) from share transactions
|
3,032,307
|
(7,832,885
|
)
|
2,672,326
|
(5,139,555
|
)
|
|||||||
Total increase (decrease) in net assets
|
(976,522
|
)
|
(22,122,574
|
)
|
283,312
|
(13,742,442
|
)
|
||||||
Net assets:
|
|||||||||||||
Beginning of year
|
43,885,022
|
66,007,596
|
32,498,640
|
46,241,082
|
|||||||||
End of period
|
$42,908,500
|
$43,885,022
|
$32,781,952
|
$32,498,640
|
|||||||||
Undistributed net investment income (loss) included in net assets at end of period
|
$183,715
|
$437,188
|
$(30,886
|
)
|
$—
|
||||||||
Capital share transactions:
|
|||||||||||||
Investor shares
|
|||||||||||||
Shares sold
|
128,810
|
532,475
|
138,272
|
139,906
|
|||||||||
Shares issued to holders in reinvestment of dividends
|
326,427
|
340,544
|
44,684
|
41,578
|
|||||||||
Shares redeemed
|
(286,817
|
)
|
(1,543,154
|
)
|
(105,383
|
)
|
(396,400
|
)
|
|||||
Net increase (decrease)
|
168,420
|
(670,135
|
)
|
77,573
|
(214,916
|
)
|
|||||||
Institutional shares
|
|||||||||||||
Shares sold
|
9,832
|
10,694
|
72,694
|
342,262
|
|||||||||
Shares issued to holders in reinvestment of dividends
|
121,077
|
94,904
|
197,005
|
156,748
|
|||||||||
Shares redeemed
|
(33,848
|
)
|
(49,255
|
)
|
(37,648
|
)
|
(680,129
|
)
|
|||||
Net increase (decrease)
|
97,061
|
56,343
|
232,051
|
(181,119
|
)
|
44
|
ARIELINVESTMENTS.COM
|
|
|
|
Ariel International Fund
|
Ariel Global Fund
|
||||||||||||
Six Months Ended
|
Six Months Ended
|
||||||||||||
March 31, 2016
|
Year Ended
|
March 31, 2016
|
Year Ended
|
||||||||||
(Unaudited)
|
September 30, 2015
|
(Unaudited)
|
September 30, 2015
|
||||||||||
Operations:
|
|||||||||||||
Net investment income (loss)
|
$244,072
|
$242,342
|
$358,971
|
$823,095
|
|||||||||
Net realized gain (loss) on investments and foreign currency
|
(116,169
|
)
|
(278,165
|
)
|
(20,493
|
)
|
(56,724
|
)
|
|||||
Change in net unrealized appreciation (depreciation) on investments and foreign currency
|
1,575,866
|
(735,095
|
)
|
4,406,568
|
(3,854,262
|
)
|
|||||||
Net increase (decrease) in net assets from operations
|
1,703,769
|
(770,918
|
)
|
4,745,046
|
(3,087,891
|
)
|
|||||||
Distributions to shareholders:
|
|||||||||||||
Net investment income
|
|||||||||||||
Investor Class
|
(60,860
|
)
|
(51,220
|
)
|
(57,676
|
)
|
—
|
||||||
Institutional Class
|
(36,774
|
)
|
(160,003
|
)
|
(830,402
|
)
|
(728,413
|
)
|
|||||
Capital gains
|
|||||||||||||
Investor Class
|
(10,016
|
)
|
(125,440
|
)
|
—
|
(28,533
|
)
|
||||||
Institutional Class
|
(4,359
|
)
|
(221,181
|
)
|
—
|
(551,839
|
)
|
||||||
Total distributions
|
(112,009
|
)
|
(557,844
|
)
|
(888,078
|
)
|
(1,308,785
|
)
|
|||||
Share transactions:
|
|||||||||||||
Shares issued
|
|||||||||||||
Investor Class
|
39,391,965
|
8,597,223
|
1,794,356
|
4,233,566
|
|||||||||
Institutional Class
|
68,890,952
|
1,520,495
|
3,390,316
|
1,323,358
|
|||||||||
Shares issued in reinvestment of dividends and distributions
|
|||||||||||||
Investor Class
|
68,255
|
140,873
|
49,300
|
17,785
|
|||||||||
Institutional Class
|
40,280
|
366,323
|
825,218
|
1,271,708
|
|||||||||
Shares redeemed
|
|||||||||||||
Investor Class
|
(5,306,132
|
)
|
(1,531,911
|
)
|
(475,004
|
)
|
(541,673
|
)
|
|||||
Institutional Class
|
(206,033
|
)
|
(184,759
|
)
|
(674,570
|
)
|
(562,837
|
)
|
|||||
Net increase (decrease) from share transactions
|
102,879,287
|
8,908,244
|
4,909,616
|
5,741,907
|
|||||||||
Total increase (decrease) in net assets
|
104,471,047
|
7,579,482
|
8,766,584
|
1,345,231
|
|||||||||
Net assets:
|
|||||||||||||
Beginning of year
|
20,876,694
|
13,297,212
|
58,097,860
|
56,752,629
|
|||||||||
End of period
|
$125,347,741
|
$20,876,694
|
$66,864,444
|
$58,097,860
|
|||||||||
Undistributed net investment income (loss) included in net assets at end of period
|
$160,359
|
$13,921
|
$207,221
|
$736,328
|
|||||||||
Capital share transactions:
|
|||||||||||||
Investor shares
|
|||||||||||||
Shares sold
|
3,130,793
|
661,312
|
129,623
|
301,181
|
|||||||||
Shares issued to holders in reinvestment of dividends
|
5,369
|
11,371
|
3,567
|
1,263
|
|||||||||
Shares redeemed
|
(433,817
|
)
|
(121,811
|
)
|
(34,642
|
)
|
(39,169
|
)
|
|||||
Net increase (decrease)
|
2,702,345
|
550,872
|
98,548
|
263,275
|
|||||||||
Institutional shares
|
|||||||||||||
Shares sold
|
5,546,133
|
121,091
|
257,075
|
98,900
|
|||||||||
Shares issued to holders in reinvestment of dividends
|
3,228
|
30,111
|
61,492
|
93,004
|
|||||||||
Shares redeemed
|
(16,899
|
)
|
(14,782
|
)
|
(49,686
|
)
|
(41,550
|
)
|
|||||
Net increase (decrease)
|
5,532,462
|
136,420
|
268,881
|
150,354
|
800.292.7435 | 45 |
Financial highlights For a share outstanding throughout each period
|
|
|
Year ended September 30 | ||||||||||||||||||||||||
Ariel Fund
(Investor Class) |
Six months
ended March 31, 2016 (Unaudited) |
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||||||||||
Net asset value, beginning of period
|
|
$63.93
|
|
$75.33
|
|
$65.57
|
|
$49.67
|
|
$36.74
|
|
$42.78
|
||||||||||||
Income from investment operations:
|
||||||||||||||||||||||||
Net investment income
|
0.27
|
0.50
|
0.67
|
0.48
|
0.29
|
0.09
|
||||||||||||||||||
Net realized and unrealized gain (loss) on investments
|
4.71
|
(2.07
|
)
|
9.50
|
15.91
|
12.73
|
(6.13
|
)
|
||||||||||||||||
Total from investment operations
|
4.98
|
(1.57
|
)
|
10.17
|
16.39
|
13.02
|
(6.04
|
)
|
||||||||||||||||
Distributions to shareholders:
|
||||||||||||||||||||||||
Dividends from net investment income
|
(0.41
|
)
|
(0.40
|
)
|
(0.41
|
)
|
(0.49
|
)
|
(0.09
|
)
|
(0.00
|
)(a)
|
||||||||||||
Distributions from capital gains
|
(9.26
|
)
|
(9.43
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||
Total distributions
|
(9.67
|
)
|
(9.83
|
)
|
(0.41
|
)
|
(0.49
|
)
|
(0.09
|
)
|
(0.00
|
)
|
||||||||||||
Net asset value, end of period
|
|
$59.24
|
|
$63.93
|
|
$75.33
|
|
$65.57
|
|
$49.67
|
|
$36.74
|
||||||||||||
Total return
|
7.39
|
%(b)
|
(3.40
|
)%
|
15.52
|
%
|
33.28
|
%
|
35.48
|
%
|
(14.11
|
)%
|
||||||||||||
Supplemental data and ratios:
|
||||||||||||||||||||||||
Net assets, end of period, in thousands
|
|
$1,497,122
|
|
$1,494,724
|
|
$1,759,016
|
|
$1,787,490
|
|
$1,422,415
|
|
$1,350,852
|
||||||||||||
Ratio of expenses to average net assets
|
1.06
|
%(c)
|
1.02
|
%
|
1.03
|
%
|
1.03
|
%
|
1.06
|
%
|
1.04
|
%
|
||||||||||||
Ratio of net investment income to average net assets
|
1.14
|
%(c)
|
0.67
|
%
|
0.88
|
%
|
0.83
|
%
|
0.56
|
%
|
0.16
|
%
|
||||||||||||
Portfolio turnover rate
|
13
|
%(b)
|
25
|
%
|
29
|
%
|
30
|
%
|
27
|
%
|
29
|
%
|
Year ended September 30 | ||||||||||||||||||||||||
Ariel Fund
(Institutional Class) |
Six months
ended
March 31, 2016
(Unaudited)
|
2015
|
2014
|
2013
|
December 30,
2011(d) to
September 30,
2012
|
|||||||||||||||||||
Net asset value, beginning of period
|
|
$64.08
|
|
$75.49
|
|
$65.70
|
|
$49.79
|
|
$42.97
|
||||||||||||||
Income from investment operations:
|
||||||||||||||||||||||||
Net investment income
|
0.40
|
0.57
|
0.81
|
0.59
|
0.36
|
|||||||||||||||||||
Net realized and unrealized gain (loss)on investments
|
4.71
|
(1.93
|
)
|
9.60
|
16.00
|
6.46
|
||||||||||||||||||
Total from investment operations
|
5.11
|
(1.36
|
)
|
10.41
|
16.59
|
6.82
|
||||||||||||||||||
Distributions to shareholders:
|
||||||||||||||||||||||||
Dividends from net investment income
|
(0.63
|
)
|
(0.62
|
)
|
(0.62
|
)
|
(0.68
|
)
|
—
|
|||||||||||||||
Distributions from capital gains
|
(9.26
|
)
|
(9.43
|
)
|
—
|
—
|
—
|
|||||||||||||||||
Total distributions
|
(9.89
|
)
|
(10.05
|
)
|
(0.62
|
)
|
(0.68
|
)
|
—
|
|||||||||||||||
Net asset value, end of period
|
|
$59.30
|
|
$64.08
|
|
$75.49
|
|
$65.70
|
|
$49.79
|
||||||||||||||
Total return
|
7.58
|
%(b)
|
(3.11
|
)%
|
15.88
|
%
|
33.72
|
%
|
15.87
|
%(b)
|
||||||||||||||
Supplemental data and ratios:
|
||||||||||||||||||||||||
Net assets, end of period, in thousands
|
|
$514,154
|
|
$516,743
|
|
$391,219
|
|
$365,694
|
|
$103,092
|
||||||||||||||
Ratio of expenses to average net assets
|
0.73
|
%(c)
|
0.72
|
%
|
0.72
|
%
|
0.72
|
%
|
0.68
|
%(c)
|
||||||||||||||
Ratio of net investment income to average net assets
|
1.47
|
%(c)
|
0.97
|
%
|
1.21
|
%
|
1.04
|
%
|
1.06
|
%(c)
|
||||||||||||||
Portfolio turnover rate
|
13
|
%(b)
|
25
|
%
|
29
|
%
|
30
|
%
|
27
|
%(b)
|
46
|
ARIELINVESTMENTS.COM
|
|
|
|
Year ended September 30
|
||||||||||||||||||||||||
Six months
|
||||||||||||||||||||||||
ended
|
||||||||||||||||||||||||
Ariel Appreciation Fund
|
March 31, 2016
|
|||||||||||||||||||||||
(Investor Class)
|
(Unaudited)
|
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||||||||||
Net asset value, beginning of period
|
|
$48.01
|
|
$56.12
|
|
$53.83
|
|
$45.13
|
|
$34.81
|
|
$37.79
|
||||||||||||
Income from investment operations:
|
||||||||||||||||||||||||
Net investment income
|
0.42
|
0.50
|
0.43
|
0.44
|
0.35
|
0.13
|
||||||||||||||||||
Net realized and unrealized gain (loss) on investments
|
2.57
|
(2.08
|
)
|
5.92
|
13.08
|
10.52
|
(3.10
|
)
|
||||||||||||||||
Total from investment operations
|
2.99
|
(1.58
|
)
|
6.35
|
13.52
|
10.87
|
(2.97
|
)
|
||||||||||||||||
Distributions to shareholders:
|
||||||||||||||||||||||||
Dividends from net investment income
|
(0.50
|
)
|
(0.37
|
)
|
(0.42
|
)
|
(0.33
|
)
|
(0.16
|
)
|
(0.01
|
)
|
||||||||||||
Distributions from capital gains
|
(4.93
|
)
|
(6.16
|
)
|
(3.64
|
)
|
(4.49
|
)
|
(0.39
|
)
|
—
|
|||||||||||||
Total distributions
|
(5.43
|
)
|
(6.53
|
)
|
(4.06
|
)
|
(4.82
|
)
|
(0.55
|
)
|
(0.01
|
)
|
||||||||||||
Net asset value, end of period
|
|
$45.57
|
|
$48.01
|
|
$56.12
|
|
$53.83
|
|
$45.13
|
|
$34.81
|
||||||||||||
Total return
|
5.92
|
%(a)
|
(3.89
|
)%
|
12.22
|
%
|
34.31
|
%
|
31.57
|
%
|
(7.86
|
)%
|
||||||||||||
Supplemental data and ratios:
|
||||||||||||||||||||||||
Net assets, end of period, in thousands
|
|
$1,513,661
|
|
$1,557,796
|
|
$1,777,388
|
|
$1,758,277
|
|
$1,290,470
|
|
$1,143,406
|
||||||||||||
Ratio of expenses to average net assets
|
1.15
|
%(b)
|
1.12
|
%
|
1.12
|
%
|
1.13
|
%
|
1.17
|
%
|
1.15
|
%
|
||||||||||||
Ratio of net investment income to average net assets
|
1.94
|
%(b)
|
0.95
|
%
|
0.79
|
%
|
1.00
|
%
|
0.79
|
%
|
0.30
|
%
|
||||||||||||
Portfolio turnover rate
|
9
|
%(a)
|
22
|
%
|
24
|
%
|
28
|
%
|
28
|
%
|
26
|
%
|
Year ended September 30 | ||||||||||||||||||||||||
Six months
|
December 30,
|
|||||||||||||||||||||||
ended
|
2011(c) to
|
|||||||||||||||||||||||
Ariel Appreciation Fund
|
March 31, 2016
|
September 30,
|
||||||||||||||||||||||
(Institutional Class)
|
(Unaudited)
|
2015
|
2014
|
2013
|
2012
|
|||||||||||||||||||
Net asset value, beginning of period
|
|
$48.17
|
|
$56.28
|
|
$53.95
|
|
$45.19
|
|
$38.70
|
||||||||||||||
Income from investment operations:
|
||||||||||||||||||||||||
Net investment income
|
0.43
|
0.65
|
0.60
|
0.35
|
0.32
|
|||||||||||||||||||
Net realized and unrealized gain (loss)on investments
|
2.66
|
(2.04
|
)
|
5.96
|
13.34
|
6.17
|
||||||||||||||||||
Total from investment operations
|
3.09
|
(1.39
|
)
|
6.56
|
13.69
|
6.49
|
||||||||||||||||||
Distributions to shareholders:
|
||||||||||||||||||||||||
Dividends from net investment income
|
(0.69
|
)
|
(0.56
|
)
|
(0.59
|
)
|
(0.44
|
)
|
—
|
|||||||||||||||
Distributions from capital gains
|
(4.93
|
)
|
(6.16
|
)
|
(3.64
|
)
|
(4.49
|
)
|
—
|
|||||||||||||||
Total distributions
|
(5.62
|
)
|
(6.72
|
)
|
(4.23
|
)
|
(4.93
|
)
|
—
|
|||||||||||||||
Net asset value, end of period
|
|
$45.64
|
|
$48.17
|
|
$56.28
|
|
$53.95
|
|
$45.19
|
||||||||||||||
Total return
|
6.12
|
%(a)
|
(3.55
|
)%
|
12.59
|
%
|
34.76
|
%
|
16.77
|
%(a)
|
||||||||||||||
Supplemental data and ratios:
|
||||||||||||||||||||||||
Net assets, end of period, in thousands
|
$232,480
|
$193,561
|
$169,839
|
$118,732
|
$14,934
|
|||||||||||||||||||
Ratio of expenses to average net assets
|
0.80
|
%(b)
|
0.79
|
%
|
0.79
|
%
|
0.80
|
%
|
0.99
|
%(b)
|
||||||||||||||
Ratio of net investment income to average net assets
|
2.32
|
%(b)
|
1.31
|
%
|
1.16
|
%
|
1.35
|
%
|
1.08
|
%(b)
|
||||||||||||||
Portfolio turnover rate
|
9
|
%(a)
|
22
|
%
|
24
|
%
|
28
|
%
|
28
|
%(a)
|
800.292.7435 | 47 |
Financial highlights For a share outstanding throughout each period (continued)
|
|
|
|
|
|
|
Year ended September 30
|
||||||||||||||||||||
|
|
Six months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ariel Focus Fund
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Investor Class)
|
|
(Unaudited)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2011
|
|
|
Net asset value, beginning of period
|
|
$11.70
|
|
|
$15.12
|
|
|
$13.85
|
|
|
$10.95
|
|
|
$9.27
|
|
|
$9.49
|
|
||||||
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
0.07
|
|
|
|
0.14
|
|
|
|
0.11
|
|
|
|
0.14
|
|
|
|
0.10
|
|
|
|
0.04
|
|
Net realized and unrealized gain (loss) on investments
|
|
|
0.38
|
|
|
|
(1.99
|
)
|
|
|
1.95
|
|
|
|
2.89
|
|
|
|
1.64
|
|
|
|
(0.23
|
)
|
Total from investment operations
|
|
|
0.45
|
|
|
|
(1.85
|
)
|
|
|
2.06
|
|
|
|
3.03
|
|
|
|
1.74
|
|
|
|
(0.19
|
)
|
Distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.13
|
)
|
|
|
(0.11
|
)
|
|
|
(0.09
|
)
|
|
|
(0.13
|
)
|
|
|
(0.06
|
)
|
|
|
(0.03
|
)
|
Distributions from capital gains
|
|
|
(1.33
|
)
|
|
|
(1.46
|
)
|
|
|
(0.70
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total distributions
|
|
|
(1.46
|
)
|
|
|
(1.57
|
)
|
|
|
(0.79
|
)
|
|
|
(0.13
|
)
|
|
|
(0.06
|
)
|
|
|
(0.03
|
)
|
Net asset value, end of period
|
|
$10.69
|
|
|
$11.70
|
|
|
$15.12
|
|
|
$13.85
|
|
|
$10.95
|
|
|
$9.27
|
|
||||||
Total return
|
|
|
3.55
|
%(a)
|
|
|
(13.98
|
)%
|
|
|
15.42
|
%
|
|
|
28.02
|
%
|
|
|
18.81
|
%
|
|
|
(2.07
|
)%
|
Supplemental data and ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period, in thousands
|
|
$32,464
|
|
|
$33,553
|
|
|
$53,500
|
|
|
$43,925
|
|
|
$33,274
|
|
|
$42,547
|
|
||||||
Ratio of expenses to average net assets, including waivers
|
|
|
1.00
|
%(b)
|
|
|
1.00
|
%
|
|
|
1.08
|
%
|
|
|
1.25
|
%
|
|
|
1.25
|
%
|
|
|
1.25
|
%
|
Ratio of expenses to average net assets, excluding waivers
|
|
|
1.54
|
%(b)
|
|
|
1.37
|
%
|
|
|
1.40
|
%
|
|
|
1.54
|
%
|
|
|
1.58
|
%
|
|
|
1.51
|
%
|
Ratio of net investment income to average net assets, including waivers
|
|
|
1.45
|
%(b)
|
|
|
0.89
|
%
|
|
|
0.78
|
%
|
|
|
1.19
|
%
|
|
|
0.88
|
%
|
|
|
0.37
|
%
|
Ratio of net investment income to average net assets, excluding waivers
|
|
|
0.91
|
%(b)
|
|
|
0.52
|
%
|
|
|
0.46
|
%
|
|
|
0.90
|
%
|
|
|
0.55
|
%
|
|
|
0.11
|
%
|
Portfolio turnover rate
|
|
|
11
|
%(a)
|
|
|
16
|
%
|
|
|
40
|
%
|
|
|
41
|
%
|
|
|
32
|
%
|
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended September 30
|
|
|
|
|
||||||||||
|
|
Six months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30,
|
|
|||
|
|
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011(c) to
|
|
|||
Ariel Focus Fund
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|||
(Institutional Class)
|
|
(Unaudited)
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2013
|
|
|
2012
|
|
|||
Net asset value, beginning of period
|
|
$11.71
|
|
|
$15.14
|
|
|
|
$13.87
|
|
|
|
$10.97
|
|
|
|
$9.82
|
|
||
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
0.08
|
|
|
|
0.15
|
|
|
|
0.15
|
|
|
|
0.19
|
|
|
|
0.10
|
|
Net realized and unrealized gain (loss) on investments
|
|
|
0.38
|
|
|
|
(1.97
|
)
|
|
|
1.96
|
|
|
|
2.87
|
|
|
|
1.05
|
|
Total from investment operations
|
|
|
0.46
|
|
|
|
(1.82
|
)
|
|
|
2.11
|
|
|
|
3.06
|
|
|
|
1.15
|
|
Distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.18
|
)
|
|
|
(0.15
|
)
|
|
|
(0.14
|
)
|
|
|
(0.16
|
)
|
|
|
—
|
|
Distributions from capital gains
|
|
|
(1.33
|
)
|
|
|
(1.46
|
)
|
|
|
(0.70
|
)
|
|
|
—
|
|
|
|
—
|
|
Total distributions
|
|
|
(1.51
|
)
|
|
|
(1.61
|
)
|
|
|
(0.84
|
)
|
|
|
(0.16
|
)
|
|
|
—
|
|
Net asset value, end of period
|
|
$10.66
|
|
|
$11.71
|
|
|
$15.14
|
|
|
$13.87
|
|
|
$10.97
|
|
|||||
Total return
|
|
|
3.65
|
%(a)
|
|
|
(13.77
|
)%
|
|
|
15.74
|
%
|
|
|
28.36
|
%
|
|
|
11.71
|
%(a)
|
Supplemental data and ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period, in thousands
|
|
$10,445
|
|
|
$10,332
|
|
|
|
$12,507
|
|
|
|
$11,372
|
|
|
|
$10,470
|
|
||
Ratio of expenses to average net assets, including waivers
|
|
|
0.75
|
%(b)
|
|
|
0.75
|
%
|
|
|
0.83
|
%
|
|
|
1.00
|
%
|
|
|
1.00
|
%(b)
|
Ratio of expenses to average net assets, excluding waivers
|
|
|
1.23
|
%(b)
|
|
|
1.07
|
%
|
|
|
1.06
|
%
|
|
|
1.19
|
%
|
|
|
1.29
|
%(b)
|
Ratio of net investment income to average net assets, including waivers
|
|
|
1.71
|
%(b)
|
|
|
1.15
|
%
|
|
|
1.02
|
%
|
|
|
1.46
|
%
|
|
|
1.15
|
%(b)
|
Ratio of net investment income to average net assets, excluding waivers
|
|
|
1.23
|
%(b)
|
|
|
0.84
|
%
|
|
|
0.79
|
%
|
|
|
1.27
|
%
|
|
|
0.86
|
%(b)
|
Portfolio turnover rate
|
|
|
11
|
%(a)
|
|
|
16
|
%
|
|
|
40
|
%
|
|
|
41
|
%
|
|
|
32
|
%(a)
|
48
|
ARIELINVESTMENTS.COM
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
Year ended September 30
|
|
|
|
|
||||||||||||||||
|
|
Six months
|
|
|
|
|
|
|
|
|
|
January 31,
|
|
|||||||||||
|
|
ended
|
|
|
|
|
|
|
|
|
|
2011(c) to
|
|
|||||||||||
Ariel Discovery Fund
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|||||||||||
(Investor Class)
|
|
(Unaudited)
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
|||||||||||
Net asset value, beginning of period
|
|
$9.03
|
|
|
$11.59
|
|
|
$12.47
|
|
|
$10.63
|
|
|
$7.71
|
|
|
$10.00
|
|
||||||
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss
|
|
|
(0.01
|
)
|
|
|
(0.11
|
)
|
|
|
(0.10
|
)
|
|
|
(0.06
|
)
|
|
|
(0.08
|
)
|
|
|
(0.06
|
)
|
Net realized and unrealized gain (loss) on investments
|
|
|
0.64
|
|
|
|
(1.79
|
)
|
|
|
(0.60
|
)
|
|
|
1.90
|
|
|
|
3.00
|
|
|
|
(2.23
|
)
|
Total from investment operations
|
|
|
0.63
|
|
|
|
(1.90
|
)
|
|
|
(0.70
|
)
|
|
|
1.84
|
|
|
|
2.92
|
|
|
|
(2.29
|
)
|
Distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from capital gains
|
|
|
(1.29
|
)
|
|
|
(0.66
|
)
|
|
|
(0.18
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total distributions
|
|
|
(1.29
|
)
|
|
|
(0.66
|
)
|
|
|
(0.18
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net asset value, end of period
|
|
$8.37
|
|
|
$9.03
|
|
|
$11.59
|
|
|
$12.47
|
|
|
$10.63
|
|
|
$7.71
|
|
||||||
Total return
|
|
|
(0.98
|
)%(a)
|
|
|
(17.69
|
)%
|
|
|
(5.80
|
)%
|
|
|
17.31
|
%
|
|
|
37.87
|
%
|
|
|
(22.90
|
)%(a)
|
Supplemental data and ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period, in thousands
|
|
$6,263
|
|
|
$6,058
|
|
|
$10,272
|
|
|
$10,239
|
|
|
$4,240
|
|
|
$3,177
|
|
||||||
Ratio of expenses to average net assets, including waivers
|
|
|
1.25
|
%(b)
|
|
|
1.25
|
%
|
|
|
1.33
|
%
|
|
|
1.50
|
%
|
|
|
1.50
|
%
|
|
|
1.50
|
%(b)
|
Ratio of expenses to average net assets, excluding waivers
|
|
|
2.15
|
%(b)
|
|
|
2.10
|
%
|
|
|
1.93
|
%
|
|
|
2.90
|
%
|
|
|
5.18
|
%
|
|
|
6.75
|
%(b)
|
Ratio of net investment loss to average net assets, including waivers
|
|
|
(0.40
|
)%(b)
|
|
|
(0.67
|
)%
|
|
|
(0.79
|
)%
|
|
|
(0.79
|
)%
|
|
|
(0.92
|
)%
|
|
|
(1.17
|
)%(b)
|
Ratio of net investment loss to average net assets, excluding waivers
|
|
|
(1.30
|
)%(b)
|
|
|
(1.52
|
)%
|
|
|
(1.39
|
)%
|
|
|
(2.19
|
)%
|
|
|
(4.60
|
)%
|
|
|
(6.42
|
)%(b)
|
Portfolio turnover rate
|
|
|
25
|
%(a)
|
|
|
29
|
%
|
|
|
36
|
%
|
|
|
31
|
%
|
|
|
33
|
%
|
|
|
18
|
%(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended September 30
|
|
|
|
|
||||||||||
|
|
Six months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30,
|
|
||
|
|
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011(c) to
|
|
||
Ariel Discovery Fund
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
||
(Institutional Class)
|
|
(Unaudited)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2013
|
|
|
2012
|
|
||
Net asset value, beginning of period
|
|
$9.13
|
|
|
$11.69
|
|
|
$12.54
|
|
|
$10.66
|
|
|
$9.01
|
|
|||||
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment loss
|
|
|
(0.01
|
)
|
|
|
(0.04
|
)
|
|
|
(0.06
|
)
|
|
|
(0.03
|
)
|
|
|
(0.05
|
)
|
Net realized and unrealized gain (loss) on investments
|
|
|
0.65
|
|
|
|
(1.86
|
)
|
|
|
(0.61
|
)
|
|
|
1.91
|
|
|
|
1.70
|
|
Total from investment operations
|
|
|
0.64
|
|
|
|
(1.90
|
)
|
|
|
(0.67
|
)
|
|
|
1.88
|
|
|
|
1.65
|
|
Distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from capital gains
|
|
|
(1.29
|
)
|
|
|
(0.66
|
)
|
|
|
(0.18
|
)
|
|
|
—
|
|
|
|
—
|
|
Total distributions
|
|
|
(1.29
|
)
|
|
|
(0.66
|
)
|
|
|
(0.18
|
)
|
|
|
—
|
|
|
|
—
|
|
Net asset value, end of period
|
|
$8.48
|
|
|
$9.13
|
|
|
$11.69
|
|
|
$12.54
|
|
|
$10.66
|
|
|||||
Total return
|
|
|
(0.85
|
)%(a)
|
|
|
(17.53
|
)%
|
|
|
(5.52
|
)%
|
|
|
17.64
|
%
|
|
|
18.31
|
%(a)
|
Supplemental data and ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period, in thousands
|
|
$26,519
|
|
|
$26,441
|
|
|
$35,970
|
|
|
$27,096
|
|
|
|
$2,244
|
|
||||
Ratio of expenses to average net assets, including waivers
|
|
|
1.00
|
%(b)
|
|
|
1.00
|
%
|
|
|
1.07
|
%
|
|
|
1.25
|
%
|
|
|
1.25
|
%(b)
|
Ratio of expenses to average net assets, excluding waivers
|
|
|
1.48
|
%(b)
|
|
|
1.29
|
%
|
|
|
1.25
|
%
|
|
|
1.93
|
%
|
|
|
4.78
|
%(b)
|
Ratio of net investment loss to average net assets, including waivers
|
|
|
(0.15
|
)%(b)
|
|
|
(0.42
|
)%
|
|
|
(0.53
|
)%
|
|
|
(0.61
|
)%
|
|
|
(0.75
|
)%(b)
|
Ratio of net investment loss to average net assets, excluding waivers
|
|
|
(0.63
|
)%(b)
|
|
|
(0.71
|
)%
|
|
|
(0.71
|
)%
|
|
|
(1.29
|
)%
|
|
|
(4.28
|
)%(b)
|
Portfolio turnover rate
|
|
|
25
|
%(a)
|
|
|
29
|
%
|
|
|
36
|
%
|
|
|
31
|
%
|
|
|
33
|
%(a)
|
800.292.7435 | 49 |
Financial highlights For a share outstanding throughout each period (continued)
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
Year ended September 30
|
|
|
||||||||||||||
|
|
|
Six months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30,
|
|
|
|
|
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011(c) to
|
|
|
Ariel International Fund
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
||
(Investor Class)
|
|
(Unaudited)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2012
|
|
|
Net asset value, beginning of period
|
|
$12.17
|
|
|
|
$12.85
|
|
|
|
$12.38
|
|
|
|
$9.77
|
|
|
|
$10.00
|
|
|
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
|
(0.01
|
)
|
|
|
0.01
|
|
|
|
0.22
|
|
|
|
0.07
|
|
|
|
0.16
|
|
Net realized and unrealized gain (loss) on investments
|
|
|
0.59
|
|
|
|
(0.23
|
)
|
|
0.41
|
|
|
2.65
|
|
|
(0.39
|
)
|
|||
Total from investment operations
|
|
|
0.58
|
|
|
|
(0.22
|
)
|
|
|
0.63
|
|
|
|
2.72
|
|
|
|
(0.23
|
)
|
Distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.01
|
)
|
|
|
(0.13
|
)
|
|
|
—
|
|
|
|
(0.11
|
)
|
|
|
—
|
|
Distributions from capital gains
|
|
|
(0.02
|
)
|
|
|
(0.33
|
)
|
|
|
(0.16
|
)
|
|
|
—
|
|
|
|
—
|
|
Total distributions
|
|
|
(0.03
|
)
|
|
|
(0.46
|
)
|
|
|
(0.16
|
)
|
|
|
(0.11
|
)
|
|
|
—
|
|
Net asset value, end of period
|
|
|
$12.72
|
|
|
|
$12.17
|
|
|
|
$12.85
|
|
|
|
$12.38
|
|
|
|
$9.77
|
|
Total return
|
|
|
4.73
|
%(a)
|
|
|
(1.79
|
)%
|
|
|
5.22
|
%
|
|
|
28.11
|
%
|
|
|
(2.30
|
)%(a)
|
Supplemental data and ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period, in thousands
|
|
|
$46,167
|
|
|
|
$11,290
|
|
|
|
$4,842
|
|
|
|
$2,260
|
|
|
|
$1,313
|
|
Ratio of expenses to average net assets, including waivers
|
|
|
1.25
|
%(b)
|
|
|
1.26
|
%(d)
|
|
|
1.29
|
%
|
|
|
1.40
|
%
|
|
|
1.40
|
%(b)
|
Ratio of expenses to average net assets, excluding waivers
|
|
|
1.76
|
%(b)
|
|
|
3.49
|
%
|
|
|
4.24
|
%
|
|
|
9.36
|
%
|
|
|
17.00
|
%(b)
|
Ratio of net investment income to average net assets, including waivers
|
|
|
0.90
|
%(b)
|
|
|
1.39
|
%
|
|
|
2.13
|
%
|
|
|
0.98
|
%
|
|
|
2.93
|
%(b)
|
Ratio of net investment income (loss) to average net assets, excluding waivers
|
|
|
0.39
|
%(b)
|
|
|
(0.84
|
)%
|
|
|
(0.82
|
)%
|
|
|
(6.98
|
)%
|
|
|
(12.67
|
)%(b)
|
Portfolio turnover rate
|
|
|
13
|
%(a)
|
|
|
34
|
%
|
|
|
19
|
%
|
|
|
29
|
%
|
|
|
21
|
%(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
Year ended September 30
|
|
|
|
|
||||||||||||
|
|
Six months
|
|
|
|
|
|
|
|
December 30,
|
|
|||||||||
|
|
ended
|
|
|
|
|
|
|
|
|
2011(c) to
|
|
||||||||
Ariel International Fund
|
|
March 31, 2016
|
|
|
|
|
|
|
|
September 30,
|
|
|||||||||
(Institutional Class)
|
|
(Unaudited)
|
|
2015
|
|
2014
|
|
2013
|
|
|
2012
|
|
||||||||
Net asset value, beginning of period
|
$11.96
|
$12.71
|
$12.26
|
$9.78
|
$10.00
|
|||||||||||||||
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
0.05
|
|
|
|
0.18
|
|
|
|
0.29
|
|
|
|
0.14
|
|
|
|
0.11
|
|
Net realized and unrealized gain (loss) on investments
|
|
|
0.53
|
|
|
|
(0.37
|
)
|
|
|
0.38
|
|
|
|
2.59
|
|
|
|
(0.33
|
)
|
Total from investment operations
|
|
|
0.58
|
|
|
|
(0.19
|
)
|
|
|
0.67
|
|
|
|
2.73
|
|
|
|
(0.22
|
)
|
Distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.01
|
)
|
|
|
(0.23
|
)
|
|
|
(0.06
|
)
|
|
|
(0.25
|
)
|
|
|
—
|
|
Distributions from capital gains
|
|
|
(0.03
|
)
|
|
|
(0.33
|
)
|
|
|
(0.16
|
)
|
|
|
—
|
|
|
|
—
|
|
Total distributions
|
|
|
(0.04
|
)
|
|
|
(0.56
|
)
|
|
|
(0.22
|
)
|
|
|
(0.25
|
)
|
|
|
—
|
|
Net asset value, end of period
|
|
|
$12.50
|
|
|
|
$11.96
|
|
|
|
$12.71
|
|
|
|
$12.26
|
|
|
|
$9.78
|
|
Total return
|
|
|
4.79
|
%(a)
|
|
|
(1.48
|
)%
|
|
|
5.48
|
%
|
|
|
28.42
|
%
|
|
|
(2.20
|
)%(a)
|
Supplemental data and ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period, in thousands
|
|
|
$79,181
|
|
|
|
$9,587
|
|
|
|
$8,455
|
|
|
|
$4,129
|
|
|
|
$1,926
|
|
Ratio of expenses to average net assets, including waivers
|
|
|
1.00
|
%(b)
|
|
|
1.01
|
%(d)
|
|
|
1.03
|
%
|
|
|
1.15
|
%
|
|
|
1.15
|
%(b)
|
Ratio of expenses to average net assets, excluding waivers
|
|
|
1.48
|
%(b)
|
|
|
2.68
|
%
|
|
|
3.17
|
%
|
|
|
6.53
|
%
|
|
|
15.70
|
%(b)
|
Ratio of net investment income to average net assets, including waivers
|
|
|
1.24
|
%(b)
|
|
|
1.69
|
%
|
|
|
2.49
|
%
|
|
|
1.09
|
%
|
|
|
3.41
|
%(b)
|
Ratio of net investment income (loss) to average net assets, excluding waivers
|
|
|
0.76
|
%(b)
|
|
|
0.02
|
%
|
|
|
0.35
|
%
|
|
|
(4.29
|
)%
|
|
|
(11.14
|
)%(b)
|
Portfolio turnover rate
|
|
|
13
|
%(a)
|
|
|
34
|
%
|
|
|
19
|
%
|
|
|
29
|
%
|
|
|
21
|
%(a)
|
(a)Not annualized.
(b)Annualized.
(c)Commencement of operations.
(d)These ratios round to 1.26% and 1.01% due to interest expense which is excluded from the expense waiver.
The accompanying notes are an integral part of the financial statements.
50
|
ARIELINVESTMENTS.COM
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
Year ended September 30
|
|
|
||||||||||||||
|
|
|
Six months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30,
|
|
|
|
|
|
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011(c) to
|
|
Ariel Global Fund
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
||
(Investor Class)
|
|
|
(Unaudited)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2012
|
|
Net asset value, beginning of period
|
|
$13.11
|
|
|
$13.96
|
|
|
$12.91
|
|
|
$10.02
|
|
|
$10.00
|
|
|||||
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
|
(0.09
|
)
|
|
|
(0.07
|
)
|
|
|
0.14
|
|
|
|
0.02
|
|
|
|
0.18
|
|
Net realized and unrealized gain (loss) on investments
|
1.11
|
(0.64
|
)
|
1.20
|
2.87
|
(0.16
|
)
|
|||||||||||||
Total from investment operations
|
|
|
1.02
|
|
|
|
(0.71
|
)
|
|
|
1.34
|
|
|
|
2.89
|
|
|
|
(0.02
|
)
|
Distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from capital gains
|
|
|
(0.11
|
)
|
|
|
(0.14
|
)
|
|
|
(0.29
|
)
|
|
|
—
|
|
|
|
—
|
|
Total distributions
|
|
|
(0.11
|
)
|
|
|
(0.14
|
)
|
|
|
(0.29
|
)
|
|
|
—
|
|
|
|
—
|
|
Net asset value, end of period
|
|
$14.02
|
|
|
$13.11
|
|
|
$13.96
|
|
|
$12.91
|
|
|
$10.02
|
|
|||||
Total return
|
|
|
7.80
|
%(a)
|
|
|
(5.15
|
)%
|
|
|
10.52
|
%
|
|
|
28.84
|
%
|
|
|
0.20
|
%(a)
|
Supplemental data and ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period, in thousands
|
|
$7,899
|
|
|
$6,095
|
|
|
$2,816
|
|
|
$1,954
|
|
|
$992
|
|
|||||
Ratio of expenses to average net assets, including waivers
|
|
|
1.25
|
%(b)
|
|
|
1.25
|
%
|
|
|
1.29
|
%
|
|
|
1.40
|
%
|
|
|
1.40
|
%(b)
|
Ratio of expenses to average net assets, excluding waivers
|
|
|
1.97
|
%(b)
|
|
|
2.71
|
%
|
|
|
3.70
|
%
|
|
|
5.37
|
%
|
|
|
12.33
|
%(b)
|
Ratio of net investment income to average net assets, including waivers
|
|
|
0.92
|
%(b)
|
|
|
1.30
|
%
|
|
|
1.56
|
%
|
|
|
0.81
|
%
|
|
|
2.67
|
%(b)
|
Ratio of net investment income (loss) to average net assets, excluding waivers
|
|
|
0.20
|
%(b)
|
|
|
(0.16
|
)%
|
|
|
(0.85
|
)%
|
|
|
(3.16
|
)%
|
|
|
(8.26
|
)%(b)
|
Portfolio turnover rate
|
|
|
12
|
%(a)
|
|
|
35
|
%
|
|
|
20
|
%
|
|
|
39
|
%
|
|
|
26
|
%(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended September 30
|
|
|
|
|
|
||||||||
|
|
|
Six months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 30,
|
|
|
|
|
|
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011(c) to
|
|
Ariel Global Fund
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
||
(Institutional Class)
|
|
|
(Unaudited)
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2012
|
|
Net asset value, beginning of period
|
|
$12.81
|
|
|
$13.79
|
|
|
$12.76
|
|
|
$10.04
|
|
|
$10.00
|
|
|||||
Income from investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
0.06
|
|
|
|
0.18
|
|
|
|
0.16
|
|
|
|
0.08
|
|
|
|
0.14
|
|
Net realized and unrealized gain (loss) on investments
|
1.13
|
(0.84
|
)
|
1.20
|
2.81
|
(0.10
|
)
|
|||||||||||||
Total from investment operations
|
|
|
1.19
|
|
|
|
(0.66
|
)
|
|
|
1.36
|
|
|
|
2.89
|
|
|
|
0.04
|
|
Distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from net investment income
|
|
|
(0.18
|
)
|
|
|
(0.18
|
)
|
|
|
(0.04
|
)
|
|
|
(0.17
|
)
|
|
|
—
|
|
Distributions from capital gains
|
|
|
(0.20
|
)
|
|
|
(0.14
|
)
|
|
|
(0.29
|
)
|
|
|
—
|
|
|
|
—
|
|
Total distributions
|
|
|
(0.38
|
)
|
|
|
(0.32
|
)
|
|
|
(0.33
|
)
|
|
|
(0.17
|
)
|
|
|
—
|
|
Net asset value, end of period
|
|
$13.62
|
|
|
$12.81
|
|
|
$13.79
|
|
|
$12.76
|
|
|
$10.04
|
|
|||||
Total return
|
|
|
7.89
|
%(a)
|
|
|
(4.88
|
)%
|
|
|
10.84
|
%
|
|
|
29.15
|
%
|
|
|
0.40
|
%(a)
|
Supplemental data and ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period, in thousands
|
|
$58,965
|
|
|
$52,002
|
|
|
$53,937
|
|
|
$25,975
|
|
|
$10,677
|
|
|||||
Ratio of expenses to average net assets, including waivers
|
|
|
1.00
|
%(b)
|
|
|
1.00
|
%
|
|
|
1.04
|
%
|
|
|
1.15
|
%
|
|
|
1.15
|
%(b)
|
Ratio of expenses to average net assets, excluding waivers
|
|
|
1.31
|
%(b)
|
|
|
1.30
|
%
|
|
|
1.51
|
%
|
|
|
2.51
|
%
|
|
|
4.07
|
%(b)
|
Ratio of net investment income to average net assets, including waivers
|
|
|
1.16
|
%(b)
|
|
|
1.40
|
%
|
|
|
1.71
|
%
|
|
|
0.97
|
%
|
|
|
3.26
|
%(b)
|
Ratio of net investment income (loss) to average net assets, excluding waivers
|
|
|
0.85
|
%(b)
|
|
|
1.10
|
%
|
|
|
1.24
|
%
|
|
|
(0.39
|
)%
|
|
|
0.34
|
%(b)
|
Portfolio turnover rate
|
|
|
12
|
%(a)
|
|
|
35
|
%
|
|
|
20
|
%
|
|
|
39
|
%
|
|
|
26
|
%(a)
|
(a)Not annualized.
(b)Annualized.
(c)Commencement of operations.
The accompanying notes are an integral part of the financial statements.
800.292.7435 | 51 |
Notes to the financial statements
|
|
||
52 ARIELINVESTMENTS.COM
|
|
03/31/16 (UNAUDITED)
|
||
Ariel
Fund |
Ariel
Appreciation Fund |
Ariel
Focus Fund |
Ariel
Discovery Fund |
|||||||||||||
Level 1
|
$1,988,459,564
|
$1,707,812,427
|
$42,521,953
|
$31,742,484
|
||||||||||||
Level 2*
|
12,089,402
|
29,743,923
|
399,615
|
1,032,364
|
||||||||||||
Level 3
|
—
|
—
|
—
|
—
|
||||||||||||
Fair value at 03/31/16
|
$2,000,548,966
|
$1,737,556,350
|
$42,921,568
|
$32,774,848
|
||||||||||||
Ariel International Fund
|
Level 1
|
Level 2*
|
Level 3
|
Total
|
||||||||||||
Common stocks
|
||||||||||||||||
Consumer discretionary
|
$7,696,162
|
$—
|
$—
|
$7,696,162
|
||||||||||||
Consumer staples
|
8,711,917
|
—
|
—
|
8,711,917
|
||||||||||||
Energy
|
2,311,053
|
—
|
—
|
2,311,053
|
||||||||||||
Financials
|
11,254,713
|
—
|
—
|
11,254,713
|
||||||||||||
Health care
|
7,876,547
|
—
|
—
|
7,876,547
|
||||||||||||
Industrials
|
1,944,068
|
—
|
—
|
1,944,068
|
||||||||||||
Information technology
|
13,246,307
|
—
|
—
|
13,246,307
|
||||||||||||
Materials
|
255,444
|
—
|
—
|
255,444
|
||||||||||||
Telecommunication services
|
9,862,906
|
—
|
—
|
9,862,906
|
||||||||||||
Utilities
|
1,688,254
|
—
|
—
|
1,688,254
|
||||||||||||
Total common stocks
|
$64,847,371
|
—
|
—
|
$64,847,371
|
||||||||||||
Exchange traded funds
|
2,048,134
|
—
|
—
|
2,048,134
|
||||||||||||
Repurchase agreement
|
—
|
3,691,233
|
—
|
3,691,233
|
||||||||||||
Total investments
|
$66,895,505
|
$3,691,233
|
—
|
$70,586,738
|
||||||||||||
Other financial instruments
|
||||||||||||||||
Forward currency contractsˆ
|
$—
|
$288,365
|
$—
|
$288,365
|
||||||||||||
Ariel Global Fund
|
Level 1
|
Level 2*
|
Level 3
|
Total
|
||||||||||||
Common stocks
|
||||||||||||||||
Consumer discretionary
|
$7,840,333
|
$—
|
$—
|
$7,840,333
|
||||||||||||
Consumer staples
|
2,931,585
|
—
|
—
|
2,931,585
|
||||||||||||
Energy
|
2,000,388
|
—
|
—
|
2,000,388
|
||||||||||||
Financials
|
8,250,467
|
—
|
—
|
8,250,467
|
||||||||||||
Health care
|
15,497,410
|
—
|
—
|
15,497,410
|
||||||||||||
Industrials
|
775,699
|
—
|
—
|
775,699
|
||||||||||||
Information technology
|
13,261,390
|
—
|
—
|
13,261,390
|
||||||||||||
Materials
|
201,733
|
—
|
—
|
201,733
|
||||||||||||
Telecommunication services
|
8,681,294
|
—
|
—
|
8,681,294
|
||||||||||||
Utilities
|
3,121,965
|
—
|
—
|
3,121,965
|
||||||||||||
Total common stocks
|
$62,562,264
|
—
|
—
|
$62,562,264
|
||||||||||||
Exchange traded funds
|
266,701
|
—
|
—
|
266,701
|
||||||||||||
Repurchase agreement
|
—
|
2,319,961
|
—
|
2,319,961
|
||||||||||||
Total investments
|
$62,828,965
|
$2,319,961
|
$—
|
$65,148,926
|
||||||||||||
Other financial instruments
|
||||||||||||||||
Forward currency contractsˆ
|
$—
|
$(12,936
|
) |
$—
|
$(12,936
|
) | ||||||||||
800.292.7435 53
|
Notes to the financial statements(continued)
|
|
||
Gross amounts not offset in the
Statement of Assets & Liabilities |
||||||||||||||||||||||||
Gross amounts of
recognized assets |
Gross amounts
offset in the Statement of Assets & Liabilities |
Net amounts
presented in the Statement of Assets & Liabilities |
Financial
instruments |
Collateral pledged
(received) |
Net amount
|
|||||||||||||||||||
Forward currency contracts
|
||||||||||||||||||||||||
Ariel International Fund
|
430,422
|
—
|
430,422
|
(142,057
|
) |
—
|
$288,365
|
|||||||||||||||||
Ariel Global Fund
|
134,711
|
—
|
134,711
|
(147,647
|
) |
—
|
(12,936
|
) |
54 ARIELINVESTMENTS.COM
|
03/31/16 (UNAUDITED)
|
|
Ariel Fund
|
Ariel
Appreciation Fund |
Ariel
Focus Fund |
Ariel
Discovery Fund |
Ariel
International Fund |
Ariel
Global Fund |
|||||||||||||||||||
Purchases
|
|
$260,836,914
|
|
$153,501,889
|
|
$4,862,194
|
|
$7,801,672
|
|
$52,792,392
|
|
$8,783,341
|
||||||||||||
Sales
|
404,606,744
|
281,723,466
|
6,827,378
|
7,670,214
|
5,931,452
|
6,964,005
|
Ariel Fund
|
Ariel
Appreciation Fund |
Ariel
Focus Fund |
Ariel
Discovery Fund |
Ariel
International Fund |
Ariel
Global Fund |
|||||||||||||||||||
Cost of investments
|
|
$1,550,762,914
|
|
$1,295,145,787
|
|
$42,639,233
|
|
$41,070,555
|
|
$69,544,885
|
|
$59,813,295
|
||||||||||||
Gross unrealized appreciation
|
736,475,634
|
667,847,215
|
8,974,945
|
4,454,519
|
4,117,963
|
9,619,085
|
||||||||||||||||||
Gross unrealized depreciation
|
(286,689,581
|
)
|
(225,436,652
|
)
|
(8,692,610
|
)
|
(12,750,225
|
)
|
(3,076,109
|
)
|
(4,283,454
|
)
|
||||||||||||
Net unrealized appreciation (depreciation)
|
|
$449,786,053
|
|
$442,410,563
|
|
$282,335
|
|
$(8,295,706
|
)
|
|
$1,041,854
|
|
$5,335,631
|
Ariel Fund | Ariel Appreciation Fund | Ariel Focus Fund | ||||||||||||||||||||||
3/31/16
|
9/30/15
|
3/31/16
|
9/30/15
|
3/31/16
|
9/30/15
|
|||||||||||||||||||
Distributions from:
|
||||||||||||||||||||||||
Ordinary income
|
|
$16,296,998
|
|
$34,143,344
|
|
$31,164,768
|
|
$54,262,132
|
|
$736,856
|
|
$1,911,066
|
||||||||||||
Long-term capital gains
|
288,406,078
|
250,909,094
|
166,700,493
|
172,243,946
|
4,811,216
|
4,971,430
|
||||||||||||||||||
Total distributions
|
|
$304,703,076
|
|
$285,052,438
|
|
$197,865,261
|
|
$226,506,078
|
|
$5,548,072
|
|
$6,882,496
|
||||||||||||
Ariel Discovery Fund
|
Ariel International Fund | Ariel Global Fund | ||||||||||||||||||||||
3/31/16
|
9/30/15
|
3/31/16
|
9/30/15
|
3/31/16
|
9/30/15
|
|||||||||||||||||||
Distributions from:
|
||||||||||||||||||||||||
Ordinary income
|
|
$15,925
|
|
$1,505,861
|
|
$97,634
|
|
$365,219
|
|
$888,078
|
|
$1,035,548
|
||||||||||||
Long-term capital gains
|
2,074,887
|
835,590
|
14,375
|
192,625
|
—
|
273,237
|
||||||||||||||||||
Total distributions
|
|
$2,090,812
|
|
$2,341,451
|
|
$112,009
|
|
$557,844
|
|
$888,078
|
|
$1,308,785
|
800.292.7435 55
|
Notes to the financial statements (continued)
|
|
|
Ariel
|
Ariel
|
Ariel
|
Ariel
|
Ariel
|
Ariel
|
||||||||
Management fees
|
Fund
|
Appreciation Fund
|
Focus Fund
|
Discovery Fund
|
International Fund
|
Global Fund
|
|||||||
Average daily net assets:
|
|||||||||||||
First $500 million
|
0.65%
|
0.75%
|
0.65%
|
0.80%
|
0.80%
|
0.80%
|
|||||||
Next $500 million
|
0.60%
|
0.70%
|
0.60%
|
0.75%
|
0.80%
|
0.80%
|
|||||||
Over $1 billion
|
0.55%
|
0.65%
|
0.55%
|
0.70%
|
0.75%
|
0.75%
|
Ariel Focus Fund | Ariel Discovery Fund | |||||||||||||
Ariel
|
||||||||||||||
Ariel Fund
|
Appreciation Fund
|
|||||||||||||
Investor Class
|
Investor Class
|
Investor Class
|
Institutional Class
|
Investor Class
|
Institutional Class
|
|||||||||
First $30 million*
|
1.50%
|
1.50%
|
—
|
—
|
—
|
—
|
||||||||
Over $30 million*
|
1.00%
|
1.00%
|
—
|
—
|
—
|
—
|
||||||||
On average daily net assets**
|
—
|
—
|
1.00%
|
0.75%
|
1.25%
|
1.00%
|
||||||||
Waiver**
|
—
|
—
|
2017
|
2017
|
2017
|
2017
|
Ariel International Fund
|
Ariel Global Fund
|
|||||||||||||
Investor Class
|
Institutional Class
|
Investor Class
|
Institutional Class
|
|||||||||||
On average daily net assets**
|
1.25%
|
1.00%
|
1.25%
|
1.00%
|
||||||||||
Waiver**
|
2017
|
2017
|
2017
|
2017
|
Ariel
|
Ariel
|
Ariel
|
Ariel
|
Ariel
|
|||||||||
Ariel Fund
|
Appreciation Fund
|
Focus Fund
|
Discovery Fund
|
International Fund
|
Global Fund
|
||||||||
Paid to distributor
|
$1,880,092
|
$1,916,512
|
$40,875
|
$7,123
|
$38,475
|
$8,725
|
|||||||
Paid to broker/dealers
|
1,256,169
|
1,352,766
|
13,426
|
2,058
|
22,859
|
3,961
|
56
|
ARIELINVESTMENTS.COM
|
03/31/16 (UNAUDITED)
|
|||
Contract
|
Unrealized
|
||||||||||||||
Settlement
|
Currency to
|
Amount to
|
Currency to
|
Amount to
|
appreciation
|
||||||||||
date
|
Counterparty
|
be received
|
be received
|
be delivered
|
be delivered
|
(depreciation)
|
|||||||||
Ariel International Fund
|
|||||||||||||||
04/11/2016
|
State Street Bank
|
USD
|
262,674
|
CAD
|
371,306
|
(23,228
|
) | ||||||||
04/11/2016
|
State Street Bank
|
USD
|
522,689
|
CNH
|
3,547,749
|
(26,018
|
) | ||||||||
04/11/2016
|
State Street Bank
|
USD
|
711,082
|
CNH
|
4,827,889
|
(35,616
|
) | ||||||||
04/11/2016
|
State Street Bank
|
USD
|
401,552
|
CNH
|
2,708,389
|
(17,336
|
) | ||||||||
04/11/2016
|
State Street Bank
|
AUD
|
606,257
|
CHF
|
418,550
|
29,163
|
|||||||||
04/11/2016
|
State Street Bank
|
EUR
|
238,412
|
CNH
|
1,773,874
|
(3,005
|
) | ||||||||
04/11/2016
|
State Street Bank
|
JPY
|
91,952,289
|
CNH
|
5,321,621
|
(5,816
|
) | ||||||||
04/13/2016
|
State Street Bank
|
AUD
|
980,018
|
USD
|
681,000
|
69,928
|
|||||||||
04/13/2016
|
State Street Bank
|
SEK
|
4,291,036
|
USD
|
505,000
|
23,735
|
|||||||||
04/13/2016
|
State Street Bank
|
NOK
|
1,402,662
|
USD
|
157,000
|
12,507
|
|||||||||
04/13/2016
|
State Street Bank
|
JPY
|
109,314,012
|
USD
|
933,000
|
38,600
|
|||||||||
04/13/2016
|
State Street Bank
|
SGD
|
193,010
|
USD
|
134,000
|
9,194
|
|||||||||
04/13/2016
|
State Street Bank
|
EUR
|
95,414
|
USD
|
104,056
|
4,546
|
|||||||||
04/13/2016
|
State Street Bank
|
USD
|
121,425
|
CNH
|
819,823
|
(5,364
|
) | ||||||||
04/13/2016
|
State Street Bank
|
AUD
|
383,373
|
CAD
|
379,000
|
1,928
|
|||||||||
04/13/2016
|
State Street Bank
|
EUR
|
269,417
|
CNH
|
1,983,777
|
(144
|
) | ||||||||
05/12/2016
|
State Street Bank
|
SGD
|
143,468
|
USD
|
101,249
|
5,174
|
|||||||||
05/12/2016
|
State Street Bank
|
SEK
|
3,411,250
|
USD
|
406,000
|
14,758
|
|||||||||
05/12/2016
|
State Street Bank
|
JPY
|
50,043,327
|
USD
|
426,000
|
19,126
|
|||||||||
05/12/2016
|
State Street Bank
|
AUD
|
1,481,863
|
USD
|
1,060,000
|
73,938
|
|||||||||
05/12/2016
|
State Street Bank
|
SGD
|
245,086
|
USD
|
172,793
|
9,010
|
|||||||||
05/12/2016
|
State Street Bank
|
AUD
|
353,220
|
CAD
|
348,000
|
2,325
|
|||||||||
05/16/2016
|
State Street Bank
|
USD
|
200,019
|
CNH
|
1,348,407
|
(8,243
|
) | ||||||||
05/20/2016
|
State Street Bank
|
AUD
|
326,786
|
CAD
|
320,352
|
3,295
|
|||||||||
05/23/2016
|
State Street Bank
|
JPY
|
67,225,277
|
USD
|
598,497
|
(379
|
) | ||||||||
05/23/2016
|
State Street Bank
|
SEK
|
1,175,866
|
USD
|
139,649
|
5,444
|
|||||||||
05/23/2016
|
State Street Bank
|
AUD
|
248,630
|
USD
|
176,817
|
13,342
|
|||||||||
06/07/2016
|
State Street Bank
|
EUR
|
493,366
|
USD
|
554,555
|
7,925
|
|||||||||
06/07/2016
|
State Street Bank
|
AUD
|
525,236
|
USD
|
389,000
|
12,440
|
|||||||||
06/07/2016
|
State Street Bank
|
JPY
|
79,954,010
|
USD
|
710,957
|
684
|
|||||||||
06/07/2016
|
State Street Bank
|
SEK
|
1,078,358
|
USD
|
129,483
|
3,649
|
|||||||||
06/07/2016
|
State Street Bank
|
SGD
|
122,542
|
USD
|
88,559
|
2,327
|
|||||||||
06/07/2016
|
State Street Bank
|
USD
|
585,882
|
CNH
|
3,841,275
|
(6,800
|
) | ||||||||
06/07/2016
|
State Street Bank
|
AUD
|
377,228
|
CAD
|
374,000
|
331
|
|||||||||
06/07/2016
|
State Street Bank
|
EUR
|
127,000
|
CAD
|
191,000
|
(2,282
|
) | ||||||||
06/07/2016
|
UBS AG
|
SEK
|
1,683,647
|
USD
|
198,107
|
9,752
|
|||||||||
06/07/2016
|
UBS AG
|
SGD
|
137,754
|
USD
|
99,054
|
3,115
|
|||||||||
06/07/2016
|
UBS AG
|
JPY
|
186,909,700
|
USD
|
1,650,892
|
12,722
|
|||||||||
06/07/2016
|
UBS AG
|
GBP
|
933,044
|
USD
|
1,320,714
|
19,611
|
|||||||||
06/07/2016
|
UBS AG
|
AUD
|
719,789
|
USD
|
528,286
|
21,852
|
|||||||||
06/07/2016
|
UBS AG
|
USD
|
648,160
|
CNH
|
4,250,000
|
(7,585
|
) | ||||||||
06/22/2016
|
UBS AG
|
USD
|
217,962
|
CNH
|
1,415,442
|
(240
|
) | ||||||||
$288,365
|
800.292.7435 | 57 |
Notes to the financial statements (continued)
|
|
|
Contract
settlement date |
Counterparty
|
Currency to
be received |
Amount to
be received |
Currency to
be delivered |
Amount to
be delivered |
Unrealized
appreciation (depreciation) |
Ariel Global Fund
|
||||||
04/11/2016
|
State Street Bank
|
USD
|
618,650
|
CNH
|
4,199,090
|
(30,795)
|
04/11/2016
|
State Street Bank
|
USD
|
600,826
|
CNH
|
4,079,307
|
(30,093)
|
04/11/2016
|
State Street Bank
|
USD
|
235,615
|
CNH
|
1,589,175
|
(10,172)
|
04/11/2016
|
State Street Bank
|
EUR
|
282,182
|
CNH
|
2,099,545
|
(3,557)
|
04/11/2016
|
State Street Bank
|
JPY
|
72,556,076
|
CNH
|
4,199,090
|
(4,589)
|
04/13/2016
|
State Street Bank
|
USD
|
909,010
|
CHF
|
904,938
|
(32,480)
|
04/13/2016
|
State Street Bank
|
USD
|
406,666
|
CNH
|
2,745,685
|
(17,966)
|
05/12/2016
|
State Street Bank
|
CAD
|
563,509
|
CHF
|
407,753
|
9,149
|
05/12/2016
|
State Street Bank
|
AUD
|
408,969
|
CHF
|
291,480
|
9,312
|
05/16/2016
|
State Street Bank
|
USD
|
431,364
|
CNH
|
2,908,000
|
(17,778)
|
05/16/2016
|
State Street Bank
|
JPY
|
76,767,785
|
EUR
|
588,039
|
12,931
|
05/16/2016
|
State Street Bank
|
AUD
|
389,043
|
GBP
|
190,026
|
24,688
|
05/16/2016
|
State Street Bank
|
SEK
|
2,274,871
|
GBP
|
185,007
|
14,884
|
05/16/2016
|
State Street Bank
|
CAD
|
630,980
|
EUR
|
410,487
|
18,181
|
05/16/2016
|
State Street Bank
|
AUD
|
1,188,662
|
EUR
|
761,513
|
41,797
|
05/16/2016
|
State Street Bank
|
SEK
|
1,762,365
|
EUR
|
187,988
|
3,228
|
06/07/2016
|
State Street Bank
|
SGD
|
127,259
|
CHF
|
89,985
|
541
|
06/22/2016
|
UBS AG
|
USD
|
197,687
|
CNH
|
1,283,780
|
(217)
|
$(12,936)
|
Ariel International Fund
|
Ariel Global Fund
|
|
Net realized gain (loss) on forward currency contracts
|
$157,262
|
$78,260
|
Change in net unrealized appreciation (depreciation) on forward currency contracts
|
339,258
|
42,481
|
Share activity | Six months ended March 31, 2016 | ||||||||
Security name
|
Balance
September 30, 2015 |
Purchases
|
Sales
|
Balance
March 31, 2016 |
Market value
|
Dividends
credited to income |
Amount of gain
(loss) realized on sale of shares |
||
Ariel Fund
|
|||||||||
Bristow Group Inc.
|
2,067,460
|
616,195
|
—
|
2,683,655
|
$50,774,753
|
$890,792
|
$—
|
||
Contango Oil & Gas Co.
|
1,928,817
|
—
|
—
|
1,928,817
|
22,740,752
|
—
|
—
|
||
MTS Systems Corp.
|
856,616
|
—
|
—
|
856,616
|
52,125,084
|
256,985
|
—
|
||
$125,640,589
|
$1,147,777
|
$—
|
|||||||
Ariel Appreciation Fund | |||||||||
Bristow Group, Inc.
|
1,973,718
|
453,246
|
—
|
2,426,964
|
$45,918,159
|
$834,407
|
$—
|
58
|
ARIELINVESTMENTS.COM
|
|
03/31/16 (UNAUDITED)
|
||
Fund
|
Average daily borrowings
|
Number of days outstanding
|
Weighted average annualized interest rate
|
|
Ariel Appreciation Fund
|
870,283
|
8
|
1.48%
|
|
Ariel Focus Fund
|
903,128
|
5
|
1.38%
|
800.292.7435 | 59 |
Important supplemental information
|
|
|
60
|
ARIELINVESTMENTS.COM
|
|
03/31/16 (UNAUDITED)
|
|
800.292.7435 | 61 |
Fund expense example
|
|
|
Actual | Hypothetical (5% return before expenses)
|
||||||||||||||
Fund and return
|
Beginning
account value 10/01/15 |
Ending
account value 03/31/16 |
Expenses
paid during period* |
Ending
account value 03/31/16 |
Expenses
paid during period* |
Annualized expense
ratio* |
|||||||||
Ariel Fund
Investor Class
|
$1,000.00
|
$1,073.90
|
$5.50
|
$1,019.70
|
$5.35
|
1.06%
|
|||||||||
Institutional Class
|
1,000.00
|
1,075.80
|
3.79
|
1,021.35
|
3.69
|
0.73%
|
|||||||||
Ariel Appreciation Fund
Investor Class
|
$1,000.00
|
$1,059.20
|
$5.92
|
$1,019.25
|
$5.81
|
1.15%
|
|||||||||
Institutional Class
|
1,000.00
|
1,061.20
|
4.12
|
1,021.00
|
4.04
|
0.80%
|
|||||||||
Ariel Focus Fund
Investor Class
|
$1,000.00
|
$1,035.50
|
$5.09
|
$1,020.00
|
$5.05
|
1.00%
|
|||||||||
Institutional Class
|
1,000.00
|
1,036.50
|
3.82
|
1,021.25
|
3.79
|
0.75%
|
|||||||||
Ariel Discovery Fund
Investor Class
|
$1,000.00
|
$990.20
|
$6.22
|
$1,018.75
|
$6.31
|
1.25%
|
|||||||||
Institutional Class
|
1,000.00
|
991.50
|
4.98
|
1,020.00
|
5.05
|
1.00%
|
|||||||||
Ariel International Fund
Investor Class
|
$1,000.00
|
$1,047.30
|
$6.40
|
$1,018.75
|
$6.31
|
1.25%
|
|||||||||
Institutional Class
|
1,000.00
|
1,047.90
|
5.12
|
1,020.00
|
5.05
|
1.00%
|
|||||||||
Ariel Global Fund
Investor Class
|
$1,000.00
|
$1,078.00
|
$6.49
|
$1,018.75
|
$6.31
|
1.25%
|
|||||||||
Institutional Class
|
1,000.00
|
1,078.90
|
5.20
|
1,020.00
|
5.05
|
1.00%
|
62
|
ARIELINVESTMENTS.COM
|
Board of trustees |
|
|
Name and age
|
Position(s) held
with Fund
|
Term of office and
length of time served
|
Principal occupation(s)
during past 5 years
|
Other directorships
|
|||||
James W. Compton
Age: 78
|
Trustee, Chairman of Governance Committee, Member of Management Contracts and Audit Committees
|
Indefinite, until successor elected Trustee since 1997; Governance Committee Chair since 2015
|
Retired Executive Director, President and CEO, Chicago Urban League, 1972 to 2006
|
Seaway Bank and Trust Company, Commonwealth Edison Company
|
|||||
William C. Dietrich
Age: 66
|
Lead Independent Trustee, Member of Management Contracts and Audit Committees, Chairman of Executive Committee
|
Indefinite, until successor elected Trustee since 1986; Lead Independent Trustee and Executive Committee Chair since 2014
|
Retired Executive Director, Shalem Institute for Spiritual Formation, Inc., 2006 to 2009
|
||||||
Mellody L. Hobson
Age: 47
|
Chairman of the Board of Trustees and President, Member of Executive Committee
|
Indefinite, until successor elected Trustee since 1993; President since 2002; Chairman since 2006
|
President, Ariel Investments since 2000
|
DreamWorks Animation SKG, Inc. (Chairman), The Estée Lauder Companies Inc., Starbucks Corporation
|
|||||
Christopher G. Kennedy
Age: 52
|
Trustee, Chairman of Audit Committee, Member of Management Contracts, Governance and Executive Committees
|
Indefinite, until successor elected Trustee since 1995; Audit Committee Chair since 2014
|
Chairman, Joseph P. Kennedy Enterprises, Inc. since 2012; Founder and Chairman, Top Box Foods since 2012; Former President, Merchandise Mart Properties, Inc., 2000 to 2011; Executive Officer, Vornado Realty Trust, 2000 to 2011
|
Interface Inc.; Knoll, Inc.
|
|||||
Merrillyn J. Kosier
Age: 56
|
Trustee and Vice President
|
Indefinite, until successor elected Trustee since 2003; Vice President since 1999
|
Executive Vice President, Ariel Investments since 1999; Chief Marketing Officer, Mutual Funds since 2007
|
||||||
Kim Y. Lew
Age: 49
|
Trustee, Member of Management Contracts and Audit Committees
|
Indefinite, until successor elected Trustee since 2014
|
Vice President and Chief Investment Officer, Carnegie Corporation of New York since 2016; Vice President and Co-Chief Investment Officer, Carnegie Corporation of New York, 2011 to 2015; Director of Investments, Carnegie Corporation of New York, 2007 to 2011
|
||||||
William M. Lewis, Jr.
Age: 59
|
Trustee, Member of Management Contracts Committee
|
Indefinite, until successor elected Trustee since 2007
|
Managing Director and Co-Chairman of Investment Banking, Lazard Ltd. since 2004
|
||||||
Stephen C. Mills
Age: 56
|
Trustee, Member of Management Contracts Committee
|
Indefinite, until successor elected Trustee since 2015
|
General Manager, New York Knickerbockers since 2013
|
||||||
John W. Rogers, Jr.
Age: 58
|
Trustee
|
Indefinite, until successor elected Trustee, 1986 to 1993 and since 2000
|
Founder, Chairman, CEO and Chief Investment Officer, Ariel Investments since 1983; Lead Portfolio Manager, Ariel Fund since 1986; Co-Portfolio Manager, Ariel Appreciation Fund since 2002
|
Exelon Corporation, McDonald’s Corporation
|
|||||
James M. Williams
Age: 68
|
Trustee, Chairman of Management Contracts Committee, Member of Governance Committee
|
Indefinite, until successor elected Trustee since 2006; Management Committee Chair since 2007
|
Vice President and Chief Investment Officer, J. Paul Getty Trust since 2002
|
SEI Mutual Funds
|
|||||
TRUSTEES EMERITUS (no Trustee duties nor responsibilities)
|
|||||||||
Royce N. Flippin, Jr.
|
|||||||||
John G. Guffey, Jr.
|
|||||||||
H. Carl McCall
|
|||||||||
Bert N. Mitchell, CPA, Chairman
|
800.292.7435 | 63 |
Officers |
|
|
Name and age
|
Position(s) held
with Fund
|
Term of office and
length of time served
|
Principal occupation(s)
during past 5 years
|
Other directorships
|
|||||
Mareile B. Cusack
Age: 57
|
Vice President, Anti-Money Laundering Officer and Secretary
|
Indefinite, until successor elected Vice President since 2008; Anti-Money Laundering Officer since 2010; Secretary since 2014; Assistant Secretary, 2008 to 2014
|
Senior Vice President, Ariel Investments since 2012; Vice President, Ariel Investments, 2007-2012; General Counsel, Ariel Investments since 2008
|
||||||
Wendy D. Fox
Age: 53
|
Chief Compliance Officer and Vice President
|
Indefinite, until successor elected Chief Compliance Officer and Vice President since 2014
|
Chief Compliance Officer and Vice President, Ariel Investments, since 2004
|
||||||
Mellody L. Hobson
Age: 47
|
Chairman of the Board of Trustees and President, Member of Executive Committee
|
Indefinite, until successor elected Trustee since 1993; President since 2002; Chairman since 2006
|
President, Ariel Investments since 2000
|
DreamWorks Animation SKG, Inc. (Chairman), The Estée Lauder Companies Inc., Starbucks Corporation
|
|||||
Merrillyn J. Kosier
Age: 56
|
Trustee and Vice President
|
Indefinite, until successor elected Trustee since 2003; Vice President since 1999
|
Executive Vice President, Ariel Investments since 1999; Chief Marketing Officer, Mutual Funds since 2007
|
||||||
James R. Rooney
Age: 57
|
Chief Financial Officer, Vice President and Treasurer
|
Indefinite, until successor elected Chief Financial Officer, Vice President and Treasurer since 2015
|
Vice President, Fund Administration, Ariel Investments, since 2015; Vice President, Shareholder Reporting, Fidelity Pricing & Cash Management Services, Fidelity Management, 2007 to 2015
|
64
|
ARIELINVESTMENTS.COM
|
800.292.7435 | 65 |
●
|
Quarterly Update Read investment viewpoints, commentaries and outlooks from our portfolio managers. Find out which stocks or sectors contributed to performance.
|
●
|
Seeing Stars Learn more about our Morningstar RatingTM for Ariel International Fund and Ariel Global Fund. Find out where Portfolio Manager Rupal Bhansali is finding values overseas.
|
●
|
Utility Futility Find out why John Rogers and his fellow portfolio managers are not investing in utilities.
|
●
|
Company Spotlights Read our investment thesis on BorgWarner, Landec and Littelfuse and learn why we believe these companies have intriguing valuations and long-term opportunities for growth.
|
![]() |
The materials used to produce this
report were sourced responsibly.
The paper used along with the
packaging are all recyclable.
|
![]() TPI (145,000) ©05/16 AI–01
|
(a)
|
Included as part of the report to shareholders filed under Item 1 of this Form.
|
(b)
|
Not applicable.
|
(a)
|
The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to them by others, particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures 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 report.
|
(b)
|
There were no significant changes in the registrant's internal controls over financial reporting, or in other factors that could significantly affect these controls, that occurred during the registrant's first fiscal half-year, including any corrective actions with regard to significant deficiencies and material weaknesses.
|
(a)
|
(1) Code of Ethics – Not applicable.
|
(b)
|
Certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350). A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference – Filed as an attachment to this filing.
|
1.
|
I have reviewed this report on Form N-CSR 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
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; and
|
(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: May 18, 2016
|
/s/ Mellody Hobson | |
Mellody Hobson
|
||
Principal Executive Officer
|
1.
|
I have reviewed this report on Form N-CSR 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
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; and
|
(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: May 18, 2016
|
/s/ James Rooney | |
James Rooney
|
||
Treasurer and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: __ May 18, 2016
|
/s/ Mellody Hobson | |
Mellody Hobson
|
||
President and Principal Executive Officer
|
Date: __ May 18, 2016
|
/s/ James Rooney | |
James Rooney
|
||
Treasurer and Chief Financial Officer
|
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