Ariel Investment Trust
11/20/2024 | Press release | Distributed by Public on 11/20/2024 15:49
Annual Report by Investment Company Form N CSR
8dd082435e67e4c
Complete lists of forward currency contracts open as of September 30, 2024 are included in the Schedules of Investments for the respective Fund.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANI
ES
Investment Company Act file number
811-4786
Ariel Investment Trust
(Exact name of registrant as specified in charter)
200 East Radolph Street
Suite 2900
Chicago, Illinois, 60601
(Address of principal executive offices) (Zip code)
Emma Rodriguez-Ayala, Esq.
200 East Randolph Street
Suite 2900
Chicago, Illinois 60601
(Name and address of agent for service)
with a copy to:
Paulita Pike, Esq.
Ropes & Gray LLP
191 North Wacker Drive
32nd Floor
Chicago, Illinois 60606
Registrant's telephone number, including area code:
(312) 726-01
40
Date of fiscal year end:
September 30
Date of reporting period:
September 30, 2024
Item 1. Reports to Stockholders.
(a) The Report to Shareholders is attached herewith
(b) Not Applicable
Ariel Fund
Investor Class/ARGFX
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about Ariel Fund (the "Fund") for the period from October 1, 2023 to September 30, 2024. You can find additional information about the Fund at
arielinvestments.com/fundreports
. You may also request this information by contacting us at 800.292.7435.
Fund Expenses for the Last Year
(Based on a hypothetical $10,000 investment)
|
Fund (Class)
|
Cost of a $10,000 Investment
|
Cost Paid as a Percentage of a $10,000 Investment
|
| Ariel Fund (Investor Class) |
$
114
|
1.00
%
|
Management's Discussion of Fund Performance
TOP PERFORMANCE CONTRIBUTORS
Ariel Fund Investor Class advanced +27.63% over the trailing one-year period, ahead of both the Russell 2500 Value Index's +26.59% gain and the Russell 2500 Index's +26.17% return.
Several stocks in the portfolio had strong returns.
Global cruise vacation company,
Royal Caribbean Group (RCL)
, was the top contributor over the period. Stronger than anticipated consumer demand, healthy onboard spend, robust pricing and solid cost containment lifted results. A
dditio
nally, RCL is benefitting from the addition of new shops, more visits to its private island destination and re-entry into the China market. The resiliency of the core cruise consumer, in combination with management's superior operational expertise and revised earnings outlook, lays the foundation for RCL to exceed its three-year strategic imperative, the Trifecta Program, eighteen months earlier than expected.
Additionally, shares of global leader in for-profit education,
Adtalem Global Education (ATGE)
, jumped following robust quarterly earnings results, accelerating new student enrollment and a subsequent raise in full year guidance. Revenue per student also is better than expected on tuition increases and higher credit hours. Meanwhile, we remain encouraged by management's solid execution of remediation initiatives at the medical and veterinary schools, where revenue growth outperformed and total enrollment trends are improving. As the number one grantor of nursing degrees in the U.S. and the largest producer of African American MDs, PhDs and nurses in the country, we remain confident ATGE will benefit from the healthcare worker shortage in the U.S.
TOP PERFORMANCE DETRACTORS
U.S. direct-to-consumer pool and spa care services company,
Leslie's, Inc. (LESL)
, underperformed following consecutive quarterly earnings disappointments and a significant reduction to full year guidance. Soft consumer demand driven by weather-related headwinds and increased price sensitivity on large discretionary purchases weighed on the top-line.
Produc
t margins also remained under pressure as the company struggled to unwind its higher-cost inventory.
In response, LESL replaced its leadership team, installing both a new CEO and CFO. Although we have been deeply disappointed with this investment, trends have improved on the back of warmer and drier weather conditions. At today's valuation, LESL appears to have more upside than downside and the company's loyal client base, vertically integrated supply chain, scale advantage and seamless customer experience serve as important differentiators.
Global dental manufacturing company,
Envista Holdings Corp. (NVST)
, also weighed on per
form
ance, as the company navigates changes in senior management, weakening demand in North America, sanctions in Russia and pricing pressures in China. The shares are likely range-bound for the next couple of quarters, as the new CEO is assessing the long-term earnings
po
wer of the business and addressing its current challenges. Although we have been deeply disappointed with this investment, after a full reassessment, we concluded NVST has multiple opportunities to outperform over the long-term. In our view, NVST should benefit from its rich research and development pipeline, new products in high-growth dental segments, facility consolidation and previous IT investments. We believe the downside is priced in and we are now evaluating upside return potential.
Fund Performance
The following graph and chart compare the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Investor Shares Class. It assumes a $10,000 initial investment at the b
eginnin
g of the first fiscal year in an appropriate broad-based securities market index for the same period.
Growth of $10,000
|
Average Annual Total
Returns
|
1-Year
|
5-Year
|
10-Year
|
| Ariel Fund (Investor Class) |
27.63
%
|
10.54
%
|
8.57
%
|
| Russell 2500TM Value Index |
26.59
%
|
9.99
%
|
8.47
%
|
| Russell 2500TM Index |
26.17
%
|
10.43
%
|
9.50
%
|
|
S&P 500
®
Index
(Broad-based Index)
|
36.35
%
|
15.98
%
|
13.38
%
|
Performance data quoted represents past performance and does not guarantee
future
results.
All performance assumes the reinvestment of dividends and c
apit
al gains. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Pl
ea
se visit
arielinvestments.com/performance
for recent and since inception perf
orm
ance results.
Key Fund
Statistics
| Net assets |
$
2,787,556,441
|
| Total number of portfolio holdings | 37 |
| Total advisory fees paid |
$
15,215,437
|
| Portfolio turnover rate as of the end of the reporting period |
17
%
|
Graphical Representation of Holdings (% of Net Assets)
Top Ten Holdings
| Mohawk Industries, Inc. |
4.62
%
|
| Madison Square Garden Entertainment Corporation |
4.30
%
|
| Adtalem Global Education, Inc. |
3.70
%
|
| Northern Trust Corporation |
3.69
%
|
| Affiliated Managers Group, Inc. |
3.66
%
|
| Lazard, Inc. |
3.64
%
|
| Royal Caribbean Cruises, Ltd. |
3.60
%
|
| Boyd Gaming Corporation |
3.59
%
|
| J.M. Smucker Company |
3.53
%
|
| Jones Lang LaSalle, Inc. |
3.48
%
|
Industry Allocation
Availability of Additional Information
Please visit
arielinvestments.com/fundreports
for the Fund's prospectus, financial i
nform
ation, fund holdings and proxy voting information. You can also request this information by contacting us at 800.292.7435.
Householding
To reduce fund expenses, we will deliver a single copy of shareholder documents to
investors with multiple accounts at the same address. If you would prefer individual
copies for each account please call 800.292.7435 or contact your financial
intermediary. Instructions are typically effective within 30 days.
Ariel Fund
Institutional Class/ARAIX
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about Ariel Fund (the "Fund") for the period from October 1, 2023 to September 30, 2024. You can find additional information about the Fund at
arielinvestments.com/fundreports
. You may also request this information by contacting us at 800.292.7435.
Fund Expenses for the Last Year
(Based on a hypothetical $10,000 investment)
|
Fund (Class)
|
Cost of a $10,000 Investment
|
Cost Paid as a Percentage of a $10,000 Investment
|
| Ariel Fund (Institutional Class) |
$
79
|
0.69
%
|
Management's Discussion of Fund Performance
TOP PERFORMANCE CONTRIBUTORS
Ariel Fund Institutional Class advanced +28.01% over the trailing one-year period, ahead of both the Russell 2500 Value Index's +26.59% gain and the Russell 2500 Index's +26.17% return.
Several stocks in the portfolio had strong
returns
.
Global cruise vacation company,
Royal Caribbean Group (RCL)
, was the top contributor over the period. Stronger than anticipated consumer demand, healthy onboard spend, robust pricing and solid cost containment lifted results. Additionally, RCL is benefitting from the addition of new shops, more visits to its private island destination and re-entry into the China market. The resiliency of the core cruise consumer, in combination with management's superior operational expertise and revised earnings outlook, lays the foundation for RCL to exceed its three-year strategic imperative, the Trifecta Program, eighteen months earlier than expected.
Additionally, shares of global leader in for-profit education,
Adtalem Global Education (ATGE)
, jumped following robust quarterly earnings results, accelerating new student enrollment and a subsequent raise in full year guidance. Revenue per student also is better than expected on tuition increases and higher credit hours. Meanwhile, we remain encouraged by management's solid execution of remediation initiatives at the medical and veterinary schools, where revenue growth outperformed and total enrollment trends are improving. As the number one grantor of nursing degrees in the U.S. and the largest producer of African American MDs, PhDs and nurses in the country, we remain confident ATGE will benefit from the healthcare worker shortage in the U.S.
TOP PERFORMANCE DETRACTORS
U.S. direct-to-consumer pool and spa care services company,
Leslie's, Inc. (LESL)
, underperformed following consecutive quarterly earnings disappointments and a significant reduction to full year guidance. Soft consumer demand driven by weather-related headwinds and increased price sensitivity on large discretionary purchases weighed on the top-line. Product margins also remained under pressure as the company struggled to unwind its higher-cost inventory.
In response, LESL replaced its leadership team, installing both a new CEO and CFO. Although we have been deeply disappointed with this investment, trends have improved on the back of warmer and drier weather conditions. At today's valuation, LESL appears to have more upside than downside and the company's loyal client base, vertically integrated supply chain, scale advantage and seamless customer experience serve as important differentiators.
Global dental manufacturing company,
Envista Holdings Corp. (NVST)
, also weighed on performance, as the company navigates changes in senior management, weakening demand in North America, sanctions in Russia and pricing pressures in China. The shares are likely range-bound for the next couple of quarters, as the new CEO is assessing the long-term earnings power of the business and addressing its current challenges. Although we have been deeply disappointed with this investment, after a full reassessment, we concluded NVST has multiple opportunities to outperform over the long-term. In our view, NVST should benefit from its rich research and development pipeline, new products in high-growth dental segments, facility consolidation and previous IT investments. We believe the downside is priced in and we are now evaluating
upside
return potential.
Fund Performance
The following graph and chart compare the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Institutional Shares Class. It assumes a $1,000,000 initial investment at the beginning of the first fiscal year in an appropriate broad-based securities market index for the same period.
Growth of $1,000,000
|
Average Annual Total Returns
|
1-Year
|
5-Year
|
10-Year
|
| Ariel Fund (Institutional Class) |
28.01
%
|
10.89
%
|
8.91
%
|
|
Russell 2500
TM
Value Index
|
26.59
%
|
9.99
%
|
8.47
%
|
|
Russell 2500
TM
Index
|
26.17
%
|
10.43
%
|
9.50
%
|
|
S&P 500
®
Index
(Broad-based Index)
|
36.35
%
|
15.98
%
|
13.38
%
|
Performance data quoted represents past performance and does
not
guarantee future results.
All performance assumes the reinvestment of dividends and capital gains. The graph and table do not reflect the deduction of ta
xes
that a shareholder would pay on Fund distributions or redemption of Fund shares. Please visit
arielinvestments.com/performance
for recent and since inception performance results.
Key Fund Statistics
| Net assets |
$
2,787,556,441
|
| Total number of portfolio holdings | 37 |
| Total advisory fees paid |
$
15,215,437
|
| Portfolio turnover rate as of the end of the reporting period |
17
%
|
Graphical Representation of Holdings (% of Net Assets)
Top Ten Holdings
| Mohawk Industries, Inc. |
4.62
%
|
| Madison Square Garden Entertainment Corporation |
4.30
%
|
| Adtalem Global Education, Inc. |
3.70
%
|
| Northern Trust Corporation |
3.69
%
|
| Affiliated Managers Group, Inc. |
3.66
%
|
| Lazard, Inc. |
3.64
%
|
| Royal Caribbean Cruises, Ltd. |
3.60
%
|
| Boyd Gaming Corporation |
3.59
%
|
| J.M. Smucker Company |
3.53
%
|
| Jones Lang LaSalle, Inc. |
3.48
%
|
Industry Allocation
Availability of Additional Information
Please visit
arielinvestments.com/fundreports
for the Fund's prospectus, financial information,
fund
holdings and proxy voti
ng
information. You can also request this information by contacting us at 800.292.7435.
Householding
To reduce fund expenses, we will deliver a single copy of shareholder documents to
investors with multiple accounts at the same address. If you would prefer individual
copies for each account please call 800.292.7435 or contact your financial
intermediary. Instructions are typically effective within 30 days.
Ariel Appreciation Fund
Investor Class/CAAPX
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about Ariel Appreciation Fund (the "Fund") for the period from October 1, 2023 to September 30, 2024. You can find additional information about the Fund at
arielinvestments.com/fundreports
. You may also request this information by contacting us at 800.292.7435.
Fund Expenses for the Last Year
(Based on a hypothetical $10,000 investment)
|
Fund (Class)
|
Cost of a $10,000 Investment
|
Cost Paid as a Percentage of a $10,000 Investment
|
| Ariel Appreciation Fund (Investor Class) |
$
124
|
1.14
%
|
Management's Discussion of Fund Performance
TOP PERFORMANCE CONTRIBUTORS
Ariel Appreciation Fund Investor Class
increased +18.31% over the trailing one-year period, underperforming the Russell Midcap Value Index and Russell Midcap Index, which returned +29.01% and +29.33%, respectively.
Several stocks in the portfolio had strong returns.
Alternative asset manager,
KKR & Co. (KKR)
, was the top contributor over the trailing one-year period as the company delivered robust earnings results in a challenging environment. Strong momentum within the capital markets business drove higher-than-expected transaction and monitoring fees, while management fee growth and insurance related earnings were solid. KKR's business is highly diversified with robust scaling opportunities in multiple verticals, including a best-in-class Alternatives franchise, a large insurance affiliate as well as retirement platform. Meanwhile, the firm has performed quite well across different economic and financial conditions and should continue to outperform for its clients over the long-term, particularly as KKR strives to double the size of the company twice over the next decade.
Shares of global investment bank,
Goldman Sachs Group, Inc. (GS)
, also rose in the period following solid earnings results, highlighted by strength in fixed income, currencies and commodities (FICC) as well as equities trading and better-than-expected investment banking fees. Meanwhile, GS continues to successfully execute on its strategic initiatives to improve the overall return of the company. It is right sizing headcount and narrowing its ambitions in consumer strategy through divestitures and working to improve profitability in Platform Solutions by 2025. With the possibility of increased capital requirement from its regulators, GS plans to reign in buybacks over the short-term but maintain its dividend. Looking ahead, we continue to view the near and long-term outlook for Goldman as attractive, given favorable business trends, continued positive momentum on strategic initiatives and acti
ve
expense/capital management programs.
TOP PERFORMANCE DETRACTORS
Retail drugstore operator,
Walgreens Boots Alliance, Inc. (WBA)
, underperformed over the trailing one-year period following disappointing earnings results and downward revisions to full year guidance. Shares sold off on continued weakness in the U.S. retail business and recent announcements of direct-to-consumer offerings by various pharmaceutical companies. Although we believe the risk/reward is balanced from here, we exited our position in Ariel Appreciation Fund to harvest losses for tax purposes.
Toy manufacturer,
Mattel, Inc. (MAT)
, also declined over the trailing one-year period following mixed quarterly earnings results. We believe this market response runs counter to the company's solid business fundamentals. Although the top-line declined due to a weaker retail environment, the company expanded margins and generated strong free cash flow. In our view, MAT remains an undervalued company with resilient consumer demand for toys such as Barbie
®
, Hot Wheels
®
and Disney Princesses
®
, as
wel
l as an attractive opportunity for future film and TV projects.
Fund Performance
The following graph and chart compare the initial and subsequent account values at the end of each of the most recently comp
le
ted 10 fiscal years of the Investor Shares Class. It assumes a $10,000 initial investment at the beginning of the first fiscal year in an appropriate broad-based securities market index for the same period.
Growth of $10,000
|
Average Annual Total Returns
|
1-Year
|
5-Year
|
10-Year
|
| Ariel Appreciation Fund (Investor Class) |
18.31
%
|
8.66
%
|
6.95
%
|
|
Russell Midcap
®
Value Index
|
29.01
%
|
10.33
%
|
8.93
%
|
|
Russell Midcap
®
Index
|
29.33
%
|
11.30
%
|
10.19
%
|
|
S&P 500
®
Index
(Broad-based Index)
|
36.35
%
|
15.98
%
|
13.38
%
|
Performance data quoted represents past performance and does not guarantee future results.
All performance assumes the reinvestment of dividends a
n
d capital gains. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Please visit
arielinvestments.com/performance
for recent and since inception perf
o
rm
ance results.
Key Fund Statistic
s
| Net assets |
$
1,011,550,147
|
|
Total num
be
r of portfolio holdings
|
43 |
|
Total advis
ory f
ees paid
|
$
7,304,928
|
| Portfolio turnover rate as of the end of the reporting period |
17
%
|
Graphical Representation of
Holdings
(% of Net
Asse
ts)
Top Ten Holdings
| Northern Trust Corporation |
4.14
%
|
| Mattel, Inc. |
3.76
%
|
| Goldman Sachs Group, Inc. |
3.61
%
|
| Generac Holdings, Inc. |
3.26
%
|
| Stanley Black & Decker, Inc. |
3.13
%
|
| Interpublic Group of Companies, Inc. |
3.08
%
|
| Lazard, Inc. |
3.05
%
|
| CarMax, Inc. |
2.96
%
|
| Core Laboratories, Inc. |
2.83
%
|
| Charles River Laboratories International, Inc. |
2.81
%
|
Industry Allocation
Availability of Additional Information
Please visit
arielinvestments.com/fundreports
for the Fund's prospectus, financial information, fund hol
din
gs and pro
x
y voting information. You can also request this information by contacting us at 800.292.7435.
Householding
To reduce fund expenses, we will deliver a single copy of shareholder documents to
investors with multiple accounts at the same address. If you would prefer individual
copies for each account please call 800.292.7435 or contact your financial
intermediary. Instructions are typically effective within 30 days.
Ariel Appreciation Fund
Institutional Class/CAAIX
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about Ariel Appreciation Fund (the "Fund") for the period from October 1, 2023 to September 30, 2024. You can find additional information about the Fund at
arielinvestments.com/fundreports
. Y
ou
may also request this information by contacting us at 800.292.7435.
Fund Expenses for the Last Year
(Based on a hypothetical $10,000 investment)
|
Fund (Class)
|
Cost of a $10,000 Investment
|
Cost Paid as a Percentage of a $10,000 Investment
|
| Ariel Appreciation Fund (Institutional Class) |
$
91
|
0.83
%
|
Management's Discussion of Fund Performance
TOP PERFORMANCE CONTRIBUTORS
Ariel Appreciation Fund Institutional Class
increased +18.64% over the trailing one-year period, underperforming the Russell Midcap Value Index and Russell Midcap Index, which returned +29.01% and +29.33%, respectively.
Several stocks in the portfolio had strong returns.
Alternative asset manager,
KKR & Co. (KKR)
, was the top contributor over the trailing one-year period as the company delivered robust earnings results in a challenging environment. Strong momentum within the capital markets business drove higher-than-expected transaction and monitoring fees, while management fee growth and insurance related earnings were solid. KKR's business is highly diversified with robust scaling opportunities in multiple verticals, including a best-in-class Alternatives franchise, a large insurance affiliate as well as retirement platform. Meanwhile, the firm has performed quite well across different economic and financial conditions and should continue to outperform for its clients over the long-term, particularly as KKR strives to double the size of the company twice over the next decade.
Shares of global investment bank,
Goldman Sachs Group, Inc. (GS)
, also rose in the period following solid earnings results, highlighted by strength in fixed income, currencies and commodities (FICC) as well as equities trading and better-than-expected investment banking fees. Meanwhile, GS continues to successfully execute on its strategic initiatives to improve the overall return of the company. It is right sizing headcount and narrowing its ambitions in consumer strategy through divestitures and working to improve profitability in Platform Solutions by 2025. With the possibility of increased capital requirement from its regulators, GS plans to reign in buybacks over the short-term but maintain its dividend. Looking ahead, we continue to view the near and long-term outlook for Goldman as attractive, given favorable business trends, continued positive momentum on strategic initiatives and active expense/capital management programs.
TOP PERFORMANCE DETRACTORS
Retail drugstore operator,
Walgreens Boots Alliance, Inc. (WBA)
, underperformed over the trailing one-year period following disappointing earnings results and downward revisions to full year guidance. Shares sold off on continued weakness in the U.S. retail business and recent announcements of direct-to-consumer offerings by various pharmaceutical companies. Although we believe the risk/reward is balanced from here, we exited our position in Ariel Appreciation Fund to harvest losses for tax purposes.
Toy manufacturer,
Mattel, Inc. (MAT)
, also declined over the trailing one-year period following mixed quarterly earnings results. We believe this market response runs counter to the company's solid business fundamentals. Although the top-line declined due to a weaker retail environment, the company expanded margins and generated strong free cash flow. In our view, MAT remains an undervalued company with resilient consumer demand for toys such as Barbie
®
, Hot Wheels
®
and Disney Princesses
®
, as well as
an
attractive opportunity for future film and TV projects.
Fund Performance
The following graph and chart compare the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Institutional Shares Class. It assumes a $1,000,000 initial investment at the beginning of the first fiscal year in an appropriate broad-based securities market index for the same
period
.
Growth of $1,000,000
|
Average Annual Total
Returns
|
1-Year
|
5-Year
|
10-Year
|
| Ariel Appreciation Fund (Institutional Class) |
18.64
%
|
8.99
%
|
7.28
%
|
|
Russell Midcap
®
Value Index
|
29.01
%
|
10.33
%
|
8.93
%
|
|
Russell Midcap
®
Index
|
29.33
%
|
11.30
%
|
10.19
%
|
|
S&P 500
®
Index
(Broad-based Index)
|
36.35
%
|
15.98
%
|
13.38
%
|
Performance data quoted represents past performance and does not guarantee future results.
All performance assumes the reinvestment of dividends and capital gains. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Please visit
arielinvestments.com/performance
for recent and since inception performance results.
Key Fund Statistics
| Net assets |
$
1,011,550,147
|
| Total number of portfolio holdings | 43 |
| Total advisory fees paid |
$
7,304,928
|
| Portfolio turnover rate as of the end of the reporting period |
17
%
|
Graphical Representation of Holdings (% of Net Assets)
Top Ten Holdings
| Northern Trust Corporation |
4.14
%
|
| Mattel, Inc. |
3.76
%
|
| Goldman Sachs Group, Inc. |
3.61
%
|
| Generac Holdings, Inc. |
3.26
%
|
| Stanley Black & Decker, Inc. |
3.13
%
|
| Interpublic Group of Companies, Inc. |
3.08
%
|
| Lazard, Inc. |
3.05
%
|
| CarMax, Inc. |
2.96
%
|
| Core Laboratories, Inc. |
2.83
%
|
| Charles River Laboratories International, Inc. |
2.81
%
|
Industry Allocation
Availability of Additional Information
Please visit
arielinvestments.com/fundreports
for the Fund's prospectus, financial information, fund holdings and proxy vot
ing
information. You can also request this information by contacting us at 800.292.7435.
Householding
To reduce fund expenses, we will deliver a single copy of shareholder documents to
investors with multiple accounts at the sam
e
address. If you would prefer individual
copies for each account please call 800.292.7435 or contact your financial
intermediary. Instructions are typically effective within 30 days.
Ariel Focus Fund
Investor Class/ARFFX
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about Ariel Focus Fund (the "Fund") for the period from October 1, 2023 to September 30, 2024. You can find additional information about the Fund at
arielinvestments.com/fundreports
. You may also request this information by contacting us at 800.292.7435.
Fund Expenses for the Last Year
(Based on a hypothetical $10,000 investment)
|
Fund (Class)
|
Cost of a $10,000 Investment
|
Cost Paid as a Percentage of a $10,000 Investment
|
| Ariel Focus Fund (Investor Class) |
$
114
|
1.00
%
|
Management's Discussion of Fund Performance
TOP PERFORMANCE CONTRIBUTORS
Ariel Focus Fund Investor Class advanced +27.54% over the twelve-month period ended September 30, 2024,
trailing
the +27.7
6%
return posted by the Russell 1000 Value Index and the +36.35% gain of the S&P 500 Index.
Several stocks in the portfolio had strong returns.
Manufacturer and distributor of medical devices specializing in spine and dental products,
ZimVie, Inc. (ZIMV)
, was the top contributor to relative results over the period as the company announced an agreement to sell its Spine business. Management
believes
the deal will be accretive to ZIMV's revenue growth, EBITDA margin and cash flow conversion, enabling it to streamline operations and use the sale proceeds to pay down debt. We believe the divestiture allows ZIMV to reshape its portfolio as a pure-play dental company in higher-growth markets with better long-term potential. Meanwhile, news outlets recently reported ZIMV is considering a potential sale and has received interest from buyout firms and other industry participants.
Manufacturer and distributor of floorcovering products,
Mohawk Industries, Inc. (MHK)
advanced following solid earnings results and a subsequent increase in near-term guidance. Although sales volumes remain low and pricing headwinds continue due to the challenging macro backdrop, improved productivity and lower material costs are driving margin expansion. Management also repurchased shares signaling increased confidence that the trough in earnings may be in the rearview mirror. In our view, MHK's healthy balance sheet and progress navigating differing economic cycles position the company to benefit from long-term growth
in
residential remodeling, new home construction and commercial projects.
TOP PERFORMANCE DETRACTORS
Oil and natural gas explorer,
APA Corporation (APA)
was the greatest detractor from relative performance over the trailing one-year period amid weakness in energy prices driven by concerns of slowing global growth. Although the company delivered solid earnings, conservative production guidance due to curtailments in the Permian Basin and higher than expected North Sea maintenance weighed on shares. Notably, the company recently announced the successful sale of its non-core asset, the Central Basin Platform as well as raised synergy targets for the Callon Petroleum Company acquisition. We remain constructive on the name, as APA continues to be laser-focused on increasing the operational efficiency of its Callon assets, free cash flow generation and returning capital to shareholders.
Producer and marketer of crop nutrients,
Mosaic Co. (MOS)
, also traded lower over the period on weaker than expected potash and fertilizer pricing as well as a decline in phosphate sales volumes. Electrical equipment failures and weather-related headwinds due to Hurricane Helene further weighed on shares. Management expects pricing to improve as growers continue to be incentivized to maximize yields by applying fertilizers. MOS is focused on cost discipline, free cash flow generation and paying down debt, while continuing to return significant capital to shareholders through buybacks. Given management's disciplined capital allocation, we continue to believe the company is well positioned.
Fund Performance
The following graph and chart compare the initial and subsequent account values at the end of each of the most rec
entl
y completed
10
fiscal years of the Investor Shares Class. It assumes a $10,000 initial investment at the beginning of the first fiscal year i
n a
n appropriate broad-based securities market index for the same period.
Growth of $10,000
|
Average Annual Total Returns
|
1-Year
|
5-Year
|
10-Year
|
| Ariel Focus Fund (Investor Class) |
27.54
%
|
9.33
%
|
6.74
%
|
|
Russell 1000
®
Value Index
|
27.76
%
|
10.69
%
|
9.23
%
|
|
S&P 500
®
Index
(Broad-based Index)
|
36.35
%
|
15.98
%
|
13.38
%
|
Performance data quoted represents past performance and does not guarantee future results.
All performance assumes the reinvestment of dividends
and
capital gains. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Please visit
arielinvestments.com/performance
for recent and since inception performance results.
Key Fund
Statistics
| Net assets |
$
67,610,270
|
| Total number of portfolio holdings | 28 |
| Total advisory fees paid |
$
325,225
|
| Portfolio turnover rate as of the end of the reporting period |
19
%
|
Graphical Representation of Holdings (% of Net Assets)
Top Ten Holdings
| Mohawk Industries, Inc. |
6.66
%
|
| Oracle Corporation |
6.60
%
|
| Snap-on, Inc. |
5.94
%
|
| Goldman Sachs Group, Inc. |
5.88
%
|
| BOK Financial Corporation |
5.77
%
|
| Lockheed Martin Corporation |
5.51
%
|
| Bank of America Corporation |
4.74
%
|
| PHINIA, Inc. |
4.57
%
|
| Resideo Technologies, Inc. |
4.51
%
|
| J.M. Smucker Company |
4.25
%
|
Industry Allocation
Availability of Additional Information
Please visit
arielinvestments.com/fundreports
for the Fund's prospectus, financial information, fund hol
din
gs and proxy v
oting
information. You can also request this information by contacting us at 800.292.7435.
Householding
To reduce fund expenses, we will deliver a single copy of shareholder documents to
investors with multiple accounts at the same address. If you would prefer individual
copies for each account please call 800.292.7435 or contact your financial
intermediary. Instructions are typically effective within 30 days.
Ariel Focus Fund
Institutional Class/AFOYX
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about Ariel Focus Fund (the "Fund") for the period from October 1, 2023 to September 30, 2024. You can find additional information about the Fund at
arielinvestments.com/fundreports
. You may also request this information by contacting us at 800.292.7435.
Fund Expenses for the Last Year
(Based on a hypothetical $10,000 investment)
|
Fund (Class)
|
Cost of a $10,000 Investment
|
Cost Paid as a Percentage of a $10,000 Investment
|
| Ariel Focus Fund (Institutional Class) |
$
85
|
0.75
%
|
Management's Discussion of Fund Performance
TOP PERFORMANCE CONTRIBUTORS
Ariel Focus Fund Institutional Class advanced +27.93% over the twelve-month period ended September 30, 2024, trailing the +27.76% return posted by the Russell 1000 Value Index and the +36.35% gain of the S&P 500 Index.
Several stocks in the portfolio had strong returns.
Manufacturer and distributor of medical devices specializing in spine and dental products,
ZimVie, Inc. (ZIMV)
, was the top contributor to relative results over the period as the company announced an agreement to sell its Spine business. Management believes the deal will be accretive to ZIMV's revenue growth, EBITDA
margin
and cash flow conversion, enabling it to streamline operations and use the sale proceeds to pay down debt. We believe the divestiture allows ZIMV to reshape its portfolio as a pure-play dental company in higher-growth markets with better long-term potential. Meanwhile, news outlets recently reported ZIMV is considering a potential sale and has received interest from buyout firms and other industry participants.
Manufacturer and distributor of floorcovering products,
Mohawk Industries, Inc. (MHK)
advanced following solid earnings results and a subsequent increase in near-term guidance. Although sales volumes remain low and pricing headwinds continue due to the challenging macro backdrop, improved productivity and lower material costs are driving margin expansion. Management also repurchased shares signaling increased confidence that the trough in earnings may be in the rearview mirror. In our view, MHK's healthy balance sheet and progress navigating differing economic cycles position the company to benefit from long-term growth in residential remodeling, new home construction and commercial projects.
TOP PERFORMANCE DETRACTORS
Oil and natural gas explorer,
APA Corporation (APA)
was the greatest detractor from relative performance over the trailing one-year period amid weakness in energy prices driven by concerns of slowing global growth. Although the company delivered solid earnings, conservative production guidance due to curtailments in the Permian Basin and higher than expected North Sea maintenance weighed on shares. Notably, the company recently announced the successful sale of its non-core asset, the Central Basin Platform as well as raised synergy targets for the Callon Petroleum Company acquisition. We remain constructive on the name, as APA continues to be laser-focused on increasing the operational efficiency of its Callon assets, free cash flow generation and returning capital to shareholders.
Producer and marketer of crop nutrients,
Mosaic Co. (MOS)
, also traded lower over the period on weaker than expected potash and fertilizer pricing as well as a decline in phosphate sales volumes. Electrical equipment failures and weather-related headwinds due to Hurricane Helene further weighed on shares. Management expects pricing to improve as growers continue to be incentivized to maximize yields by applying fertilizers. MOS is focused on cost discipline, free cash flow generation and paying down debt, while continuing to return significant capital to shareholders through buybacks. Given
management's
disciplined capital allocation, we continue to believe the company is well positioned.
Fund Performance
The following graph and chart compare the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Institutional Shares Class. It assumes a $1,000,000 initial investment at the beginning of the first fiscal year in an appropriate broad-based securities market index for the same period.
Growth of $1,000,000
|
Average Annual Total Returns
|
1-Year
|
5-Year
|
10-Year
|
| Ariel Focus Fund (Institutional Class) |
27.93
%
|
9.60
%
|
7.00
%
|
|
Russell 1000
®
Value Index
|
27.76
%
|
10.69
%
|
9.23
%
|
|
S&P 500
®
Index
(Broad-based Index)
|
36.35
%
|
15.98
%
|
13.38
%
|
Performance data quoted represents past performance and does not guarantee future results.
All performance assumes the reinvestment of dividends and capital gains. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Please
visit
arielinvestments.com/performance
for recent and since inception performance results.
Key Fund
Statistics
| Net assets |
$
67,610,270
|
|
Total
number of
portfolio
holdings
|
28 |
| Total advisory fees paid |
$
325,225
|
|
Portfolio
turnover
rate as of the
end
of the reporting period
|
19
%
|
Graphical Representation of Holdings (% of Net Assets)
Top Ten Holdings
| Mohawk Industries, Inc. |
6.66
%
|
| Oracle Corporation |
6.60
%
|
| Snap-on, Inc. |
5.94
%
|
| Goldman Sachs Group, Inc. |
5.88
%
|
| BOK Financial Corporation |
5.77
%
|
| Lockheed Martin Corporation |
5.51
%
|
| Bank of America Corporation |
4.74
%
|
| PHINIA, Inc. |
4.57
%
|
| Resideo Technologies, Inc. |
4.51
%
|
| J.M. Smucker Company |
4.25
%
|
Industry Allocation
Availability of Additional Information
Please visit
arielinvestments.com/fundreports
for the Fund's prospectus,
financial
information
, fund
holdings
and proxy voting information. You can also request this
information
by contacting us at 800.292.7435.
Householding
To reduce fund expenses, we will deliver a single copy of shareholder documents to
investors with multiple accounts at the same address. If you would prefer individual
copies for each account please call 800.292.7435 or contact your financial
intermediary. Instructions are typically effective within 30 days.
Ariel International Fund
Investor Class/AINTX
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about Ariel International Fund (the "Fund") for the period from October 1, 2023 to September 30, 2024. You can find additional information about the Fund at
arielinvestments.com/fundreports
. You may also request this information by contacting us at 800.292.7435.
Fund Expenses for the Last Year
(Based on a hypothetical $10,000 investment)
|
Fund (Class)
|
Cost of a $10,000 Investment
|
Cost Paid as a Percentage of a $10,000 Investment
|
| Ariel International Fund (Investor Class) |
$
128
|
1.17
%
|
Management's Discussion of Fund Performance
TOP PERFORMANCE CONTRIBUTORS
Ariel International Fund Investor Class
advanced +19.60% over the trailing one-year period, trailing both the MSCI EAFE and MSCI ACWI ex-US indices, which returned +24.77% and +25.35%, respectively. Ariel International Fund also lagged both the MSCI EAFE Value Index and the MSCI ACWI ex-US Value Index, which returned +23.14% and +24.04%, respectively.
Several stocks in the portfolio had strong returns.
German mobile telecommunications company,
Telefónica Deutschland Holdings AG
was the top contributor to relative results following Telefónica SA's public tender offer to purchase the remaining 28% it did not own in the German company. We exited the position shortly after the announcement on valuation.
China-based E-commerce company,
JD.com, Inc.
also aided relative performance as the People's Bank of China's (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company's retail operations. Additionally, the strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. Looking ahead, JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment and the company's strategic positioning and fully developed logistics system, we continue to like its long-term growth prospects.
TOP PERFORMANCE DETRACTORS
Shares of multinational automotive manufacturing company,
Stellantis N.V. (STLA)
declined following a significant earnings miss. The company attributed the performance to lower sales, production disruptions from a product overhaul and weak performance in North America. Muted demand for electric vehicles in Europe also weighed on performance. In response, STLA is implementing operational improvement initiatives to bring down U.S. inventory levels through production cuts, consumer incentives and gradual price adjustments. Despite these results, management maintained its previous buyback and dividend commitments. Although we expect discounting to increase as U.S. inventory ages, we maintain a constructive view on the company. We believe STLA's strong global footprint and commitment to industry leading profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.
China's internet search and online community leader,
Baidu, Inc.
also detracted from relative performance over the trailing one-year period as uncertainty surrounding China's economic growth and government regulations weighed on investor sentiment. The country's tech giants also entered an Artificial Intelligence (AI) price war. Baidu responded by slashing prices across its AI offerings and making its Ernie Bot accessible for free. While the delayed monetization of AI does reflect the volatility of the Chinese technology industry, we believe Baidu's core advertising business offers downside protection as the company continues to establish its dominance in China's AI scene. Our thesis on Baidu remains predicated both on the advertising business and a gradual macro recovery. In success, shares will trade higher with AI Cloud and Autonomous Driving offering long-term optionality.
Fund Performance
The following graph and chart compare the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Investor Shares Class. It assumes a $10,000
initial
investment
at the beginning of the first fiscal year in an appropriate broad-based securities market index for the same period.
Growth of $10,000
|
Average Annual Total Returns
|
1-Year
|
5-Year
|
10-Year
|
| Ariel International Fund (Investor Class) |
19.60
%
|
4.83
%
|
3.71
%
|
|
MSCI EAFE Net Index
(Broad-based Index)
|
24.77
%
|
8.20
%
|
5.71
%
|
| MSCI ACWI ex-US Net Index |
25.35
%
|
7.59
%
|
5.22
%
|
| MSCI EAFE Value Net Index |
23.14
%
|
8.27
%
|
4.56
%
|
| MSCI ACWI ex-US Value Net Index |
24.04
%
|
7.79
%
|
4.28
%
|
Performance data quoted represents past performance and does not guarantee future results.
All performance assumes the reinvestment of dividends and capital gains. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Please visit
arielinvestments.com/performance
for recent and since inception performance results.
Key Fund
Statistics
| Net assets |
$
240,844,787
|
| Total number of portfolio holdings | 55 |
| Total advisory fees paid |
$
2,348,174
|
| Portfolio turnover rate as of the end of the reporting period |
69
%
|
Graphical Representation of Holdings (% of Net Assets)
Top Ten Holdings
| Michelin (CGDE) |
6.48
%
|
| Check Point Software Technologies, Ltd. |
5.80
%
|
| Sanofi |
5.51
%
|
| Bandai Namco Holdings, Inc. |
4.56
%
|
| Fresenius Medical Care AG & Company KGaA |
4.39
%
|
| Siemens AG |
4.30
%
|
| KBC Group NV |
4.16
%
|
| AXA SA |
4.12
%
|
| Endesa SA |
3.69
%
|
| BNP Paribas SA |
3.39
%
|
Sector Allocation
| Consumer Discretionary |
23.79
%
|
| Financials |
21.74
%
|
| Health Care |
12.56
%
|
| Information Technology |
12.10
%
|
| Industrials |
9.61
%
|
| Utilities |
9.27
%
|
| Consumer Staples |
4.89
%
|
| Other |
4.26
%
|
Geographic Allocation
Availability of Additional Information
Please visit
arielinvestments.com/fundreports
for the Fund's
prospectus
, financial information, fund holdings and proxy voting information. You can also request this information by contacting us at 800.292.7435.
Householding
To reduce fund expenses, we will deliver a single
copy
of shareholder documents to
investors with multiple accounts at the same address. If you would prefer individual
copies for each account please call 800.292.7435 or contact your financial
intermediary. Instructions are typically effective within 30 days.
Ariel International Fund
Institutional Class/AINIX
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This
annual shareholder report
contains important information about Ariel International Fund (the "Fund") for the period from October 1, 2023 to September 30, 2024. You can find additional information about the Fund at
arielinvestments.com/fundreports
. You may also request this information by contacting us at 800.292.7435.
Fund Expenses for the Last Year
(Based on a hypothetical $10,000 investment)
|
Fund (Class)
|
Cost of a $10,000 Investment
|
Cost Paid as a Percentage of a $10,000 Investment
|
| Ariel International Fund (Institutional Class) |
$
100
|
0.91
%
|
Management's Discussion of Fund Performance
TOP PERFORMANCE CONTRIBUTORS
Ariel International Fund Institutional Class advanced +19.86% over the trailing one-year period, trailing both the MSCI EAFE and MSCI ACWI ex-US indices, which returned +24.77% and +25.35%, respectively. Ariel International Fund also lagged both the MSCI EAFE Value Index and the MSCI ACWI ex-US Value Index, which returned +23.14% and +24.04%, respectively.
Several stocks in the portfolio had strong returns.
German mobile telecommunications company,
Telefónica Deutschland Holdings AG
was the top contributor to relative results following Telefónica SA's public tender offer to purchase the remaining 28% it did not own in the German company. We exited the position shortly after the announcement on valuation.
China-based E-commerce company,
JD.com, Inc.
also aided relative performance as the People's Bank of China's (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company's retail operations. Additionally, the strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. Looking ahead, JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment and the company's strategic positioning and fully developed logistics system, we continue to like its long-term growth prospects.
TOP PERFORMANCE DETRACTORS
Shares of multinational automotive manufacturing company,
Stellantis N.V. (STLA)
declined following a significant earnings miss. The company attributed the performance to lower sales, production disruptions from a product overhaul and weak performance in North America. Muted demand for electric vehicles in Europe also weighed on performance. In response, STLA is implementing operational improvement initiatives to bring down U.S. inventory levels through production cuts, consumer incentives and gradual price adjustments. Despite these results, management maintained its previous buyback and dividend commitments. Although we expect discounting to increase as U.S. inventory ages, we maintain a constructive view on the company. We believe STLA's strong global footprint and commitment to industry leading profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.
China's internet search and online community leader,
Baidu, Inc.
also detracted from relative performance over the trailing one-
year
period as uncertainty surrounding China's economic growth and government regulations weighed on investor sentiment. The country's tech giants also entered an Artificial Intelligence (AI) price war. Baidu responded by slashing prices across its AI offerings and making its Ernie Bot accessible for free. While the delayed monetization of AI does reflect the volatility of the Chinese technology industry, we believe Baidu's core advertising business offers downside protection as the company continues to establish its dominance in China's AI scene. Our thesis on Baidu remains predicated both on the advertising business and a gradual macro recovery. In success, shares will trade higher with AI Cloud and Autonomous Driving offering long-term
optionality
.
Fund Performance
The following graph and chart compare the initial and subsequent account values at the end of each of the most
recently
completed
10
fiscal years of the Institutional Shares Class. It assumes a $1,000,000 initial investment at the beginning of the first fiscal year in an appropriate broad-based securities market index for the same period.
Growth of $1,000,000
|
Average
Annual
Total
Returns
|
1-Year
|
5-Year
|
10-Year
|
| Ariel International Fund (Institutional Class) |
19.86
%
|
5.08
%
|
3.97
%
|
|
MSCI EAFE Net Index
(Broad-based Index)
|
24.77
%
|
8.20
%
|
5.71
%
|
| MSCI ACWI ex-US Net Index |
25.35
%
|
7.59
%
|
5.22
%
|
| MSCI EAFE Value Net Index |
23.14
%
|
8.27
%
|
4.56
%
|
| MSCI ACWI ex-US Value Net Index |
24.04
%
|
7.79
%
|
4.28
%
|
Performance data quoted
represents
past performance and does
not
guarantee
future
results.
All performance assumes the reinvestment of dividends and capital gains. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Please visit
arielinvestments.com/performance
for recent and since inception performance results.
Key Fund Statistics
| Net assets |
$
240,844,787
|
| Total number of portfolio holdings | 55 |
| Total advisory fees paid |
$
2,348,174
|
| Portfolio turnover rate as of the end of the reporting period |
69
%
|
Graphical Representation of Holdings (% of Net Assets)
Top Ten Holdings
| Michelin (CGDE) |
6.48
%
|
| Check Point Software Technologies, Ltd. |
5.80
%
|
| Sanofi |
5.51
%
|
| Bandai Namco Holdings, Inc. |
4.56
%
|
| Fresenius Medical Care AG & Company KGaA |
4.39
%
|
| Siemens AG |
4.30
%
|
| KBC Group NV |
4.16
%
|
| AXA SA |
4.12
%
|
| Endesa SA |
3.69
%
|
| BNP Paribas SA |
3.39
%
|
Sector Allocation
| Consumer Discretionary |
23.79
%
|
| Financials |
21.74
%
|
| Health Care |
12.56
%
|
| Information Technology |
12.10
%
|
| Industrials |
9.61
%
|
| Utilities |
9.27
%
|
| Consumer Staples |
4.89
%
|
| Other |
4.26
%
|
Geographic Allocation
Availability of Additional Information
Please visit
arielinvestments.com/fundreports
for the Fund's prospectus, financial information, fund holdings and proxy voting information. You can also request this information by contacting us at 800.292.7435.
Householding
To reduce fund expenses, we will deliver a single copy of shareholder documents to
investors with multiple accounts at the same address. If you would prefer individual
copies for each account please call 800.292.7435 or contact your financial
intermediary. Instructions are typically effective within 30 days.
Ariel Global Fund
Investor Class/AGLOX
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about Ariel Global Fund (the "Fund") for the period from October 1, 2023 to September 30, 2024. You can find additional information about the Fund at
arielinvestments.com/fundreports
. You may also request this information by contacting us at 800.292.7435.
Fund Expenses for the Last Year
(Based on a hypothetical $10,000 investment)
|
Fund (Class)
|
Cost of a $10,000 Investment
|
Cost Paid as a Percentage of a $10,000 Investment
|
| Ariel Global Fund (Investor Class) |
$
125
|
1.14
%
|
Management's Discussion of Fund Performance
TOP PERFORMANCE CONTRIBUTORS
Ariel Global Fund Investor Class
traded +19.89% higher over the trailing one-year period, underperforming both the MSCI ACWI Index and MSCI ACWI Value Index, which returned +31.76% and +26.89%, respectively.
Several stocks in the portfolio had strong returns.
China-based E-commerce company,
JD.com, Inc.
was the top contributor over the trailing one-year period as the People's Bank of China's (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company's retail operations. Additionally, the strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. Looking ahead, JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment and the company's strategic positioning and fully developed logistics system, we continue to like its long-term growth prospects.
Leading provider of dialysis services,
DaVita, Inc.
outperformed during the period following a top- and bottom-line earnings beat, and subsequent raise in full year guidance. DaVita is benefitting from cost saving initiatives, early signs of a normalization in patient growth trends on par with pre-pandemic levels, improved leverage and an aggressive share buyback program. The company also announced an expansion of its international operations in Latin America, presenting an attractive long-term growth opportunity. In our view, we believe the market misunderstands the long-term clinical impact of glucagon-like-peptide-1 (GLP-1s) on dialysis and as such, DaVita currently trades at a significant discount relative to our estimate of its intrinsic value.
TOP PERFORMANCE DETRACTORS
China's internet search and online community leader,
Baidu, Inc.
was the biggest detractor from relative performance over the trailing one-year period as uncertainty surrounding China's economic growth and government regulations weighed on investor sentiment. The country's tech giants also entered an Artificial Intelligence (AI) price war. Baidu responded by slashing prices across its AI offerings and making its Ernie Bot accessible for free. While the delayed monetization of AI does reflect the volatility of the Chinese technology industry, we believe Baidu's core advertising business offers downside protection as the company continues to establish its dominance in China's AI scene. Our thesis on Baidu remains predicated both on the advertising business and a gradual macro recovery. In success, shares will trade higher with AI Cloud and Autonomous Driving offering long-term optionality.
Shares of semiconductor chip manufacturer,
Intel Corporation (INTC)
also underperformed following a significant earnings miss, disappointing near-term guidance and the subsequent suspension of its dividend. In response, management announced a $10 billion plan aimed at reducing headcount and capturing cost efficiencies. We believe the company is past the trough of the demand cycle and continue to see signs of a cyclical recovery for personal computers (PCs) and central processing units (CPUs). While we are disappointed with the results, we view the sell off as an overreaction and think the market continues to overlook the progress Intel is making to advance its manufacturing process and the company's efforts to serve as a viable second source foundry partner of leading-edge silicon. We believe the separation of the design and manufacturing businesses will be a key catalyst in unlocking improved financial performance while also enhancing the competitiveness of the foundry business.
Fund Performance
The following graph and chart compare the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Investor Shares Class. It assumes a $10,000 initial investment at the beginning of the first fiscal year in an appropriate broad-based securities market index for the same period.
Growth of $10,000
|
Average Annual Total Returns
|
1-Year
|
5-Year
|
10-Year
|
| Ariel Global Fund (Investor Class) |
19.89
%
|
8.56
%
|
6.51
%
|
|
MSCI ACWI Index
(Broad-based Index)
|
31.76
%
|
12.19
%
|
9.39
%
|
| MSCI ACWI Value Index |
26.89
%
|
9.04
%
|
6.65
%
|
Performance data quoted represents past performance and does not guarantee future results.
All performance assumes the reinvestment of dividends and capital gains. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Please visit
arielinvestments.com/performance
for recent and since inception performance results.
Key Fund
Statistics
| Net assets |
$
57,540,291
|
| Total number of portfolio holdings | 56 |
| Total advisory fees paid |
$
340,392
|
| Portfolio turnover rate as of the end of the reporting period |
78
%
|
Graphical Representation of Holdings (% of Net Assets)
Top Ten Holdings
| Check Point Software Technologies, Ltd. |
5.48
%
|
| Microsoft Corporation |
5.29
%
|
| Michelin (CGDE) |
4.76
%
|
| JD.com, Inc. |
4.58
%
|
| Sanofi |
3.63
%
|
| Verizon Communications, Inc. |
3.53
%
|
| Fresenius Medical Care AG & Company KGaA |
3.16
%
|
| Taiwan Semiconductor Manufacturing Company, Ltd. |
2.89
%
|
| NetApp, Inc. |
2.83
%
|
| Allstate Corporation |
2.82
%
|
Sector Allocation
| Information Technology |
22.84
%
|
| Consumer Discretionary |
21.07
%
|
| Financials |
20.61
%
|
| Health Care |
14.75
%
|
| Industrials |
6.66
%
|
| Communication Services |
5.87
%
|
| Utilities |
3.91
%
|
| Other |
3.33
%
|
Geographic Allocation
Availability of Additional Information
Please visit
arielinvestments.com/fundreports
for the Fund's prospectus, financial information, fund holdings and proxy voting information. You can also request this information by contacting us at 800.292.7435.
Householding
To reduce fund expenses, we will deliver a single copy of shareholder documents to
investors with multiple accounts at the same address. If you would prefer individual
copies for each account please call 800.292.7435 or contact your financial
intermediary. Instructions are typically effective within 30 days.
Ariel Global Fund
Institutional Class/AGLYX
ANNUAL SHAREHOLDER REPORT | September 30, 2024
This annual shareholder report contains important information about Ariel Global Fund (the "Fund") for the period from October 1, 2023 to September 30, 2024. You can find additional information about the Fund at
arielinvestments.com/fundreports
. You may also request this information by contacting us at 800.292.7435.
Fund Expenses for the Last Year
(Based on a hypothetical $10,000 investment)
|
Fund (Class)
|
Cost of a $10,000 Investment
|
Cost Paid as a Percentage of a $10,000 Investment
|
| Ariel Global Fund (Institutional Class) |
$
98
|
0.89
%
|
Management's Discussion of Fund Performance
TOP PERFORMANCE CONTRIBUTORS
Ariel Global Fund Institutional Class
traded +20.14% higher over the trailing one-year period, underperforming both the MSCI ACWI Index and MSCI ACWI Value Index, which returned +31.76% and +26.89%, respectively.
Several stocks in the portfolio had strong returns.
China-based E-commerce company,
JD.com, Inc.
was the top contributor over the trailing one-year period as the People's Bank of China's (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company's retail operations. Additionally, the strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. Looking ahead, JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment and the company's strategic positioning and fully developed logistics system, we continue to like its long-term growth prospects.
Leading provider of dialysis services,
DaVita, Inc.
outperformed during the period following a top- and bottom-line earnings beat, and subsequent raise in full year guidance. DaVita is benefitting from cost saving initiatives, early signs of a normalization in patient growth trends on par with pre-pandemic levels, improved leverage and an aggressive share buyback program. The company also announced an expansion of its international operations in Latin America, presenting an attractive long-term growth opportunity. In our view, we believe the market misunderstands the long-term clinical impact of glucagon-like-peptide-1 (GLP-1s) on dialysis and as such, DaVita currently trades at a significant discount relative to our estimate of its intrinsic value.
TOP PERFORMANCE DETRACTORS
China's internet search and online community leader,
Baidu, Inc.
was the biggest detractor from relative performance over the trailing one-year period as uncertainty surrounding China's economic growth and government regulations weighed on investor sentiment. The country's tech giants also entered an Artificial Intelligence (AI) price war. Baidu responded by slashing prices across its AI offerings and making its Ernie Bot accessible for free. While the delayed monetization of AI does reflect the volatility of the Chinese technology industry, we believe Baidu's core advertising business offers downside protection as the company continues to establish its dominance in China's AI scene. Our thesis on Baidu remains predicated both on the advertising business and a gradual macro recovery. In success, shares will trade higher with AI Cloud and Autonomous Driving offering long-term optionality.
Shares of semiconductor chip manufacturer,
Intel Corporation (INTC)
also underperformed following a significant earnings miss, disappointing near-term guidance and the subsequent suspension of its dividend. In response, management announced a $10 billion plan aimed at reducing headcount and capturing cost efficiencies. We believe the company is past the trough of the demand cycle and continue to see signs of a cyclical recovery for personal computers (PCs) and central processing units (CPUs). While we are disappointed with the results, we view the sell off as an overreaction and think the market continues to overlook the progress Intel is making to advance its manufacturing process and the company's efforts to serve as a viable second source foundry partner of leading-edge silicon. We believe the separation of the design and manufacturing businesses will be a key catalyst in unlocking improved financial performance while also enhancing the competitiveness of the foundry bu
sine
ss.
Fund Performance
The following graph and chart compare the initial and subsequent account values at the end of each of the most recently completed 10 fiscal years of the Institutional Shares Class. It assumes a $1,000,000 initial investment at the beginning of the first fiscal year in an appropriate broad-based securities market index for the same period.
Growth of $1,000
,000
|
Average Annual Total Returns
|
1-Year
|
5-Year
|
10-Year
|
| Ariel Global Fund (Institutional Class) |
20.14
%
|
8.83
%
|
6.77
%
|
|
MSCI ACWI Index
(Broad-based Index)
|
31.76
%
|
12.19
%
|
9.39
%
|
| MSCI ACWI Value Index |
26.89
%
|
9.04
%
|
6.65
%
|
Performance data quoted represents past performance and does not guarantee future results.
All performance assumes the reinvestment of dividends and capital gains. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Please visit
arielinvestments.com/performance
for recent and since inception performance results.
Key Fund Statistics
| Net assets |
$
57,540,291
|
| Total number of portfolio holdings | 56 |
| Total advisory fees paid |
$
340,392
|
| Portfolio turnover rate as of the end of the reporting period |
78
%
|
Graphical Representation of Holdings (% of Net
As
s
et
s
)
Top Ten Hold
ings
| Check Point Software Technologies, Ltd. |
5.48
%
|
| Microsoft Corporation |
5.29
%
|
| Michelin (CGDE) |
4.76
%
|
| JD.com, Inc. |
4.58
%
|
| Sanofi |
3.63
%
|
| Verizon Communications, Inc. |
3.53
%
|
| Fresenius Medical Care AG & Company KGaA |
3.16
%
|
| Taiwan Semiconductor Manufacturing Company, Ltd. |
2.89
%
|
| NetApp, Inc. |
2.83
%
|
| Allstate Corporation |
2.82
%
|
Sector Allocation
| Information Technology |
22.84
%
|
| Consumer Discretionary |
21.07
%
|
| Financials |
20.61
%
|
| Health Care |
14.75
%
|
| Industrials |
6.66
%
|
| Communication Services |
5.87
%
|
| Utilities |
3.91
%
|
| Other |
3.33
%
|
Geographic Allocation
Availability of Additional Information
Please visit
arielinvestments.com/fundreports
for the Fund's prospectus, financial information, fund holdings and proxy voting information. You can also request this information by contacting us at 800.292.7435.
Householding
To reduce fund expenses, we will deliver a single copy of shareholder documents to
investors with multiple accounts at the same address. If you would prefer individual
copies for each account please call 800.292.7435 or contact your financial
intermediary. Instructions are typically effective within 30 days.
Item 2. Code of Ethics.
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer and principal financial officer, or persons performing similar functions.
During the period covered by this report, the code of ethics was revised to reflect a change in principal financial officer for the registrant.
A copy of the current code of ethics is available on our web site at www.arielinvestments.com and without charge, upon request by calling toll-free 1-800-292-7435.
During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Trustees has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent: (1) William C. Dietrich, (2) Christopher G. Kennedy, and (3) Kim Y. Lew.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees. The aggregate Audit Fees of Deloitte & Touche LLP ("Deloitte") for professional services rendered for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for the fiscal years ended September 30, 2024 and September 30, 2023, were $123,000 and $119,400, respectively.
(b) Audit-Related Fees. The aggregate Audit-Related Fees of Deloitte for services rendered for assurance and related services that are reasonably related to the performance of the audit or review of the registrant's financial statements, but not reported as Audit Fees for the fiscal years ended September 30, 2024 and September 30, 2023, were $0 and $0, respectively.
For the twelve month periods ended September 30, 2024 and September 30, 2023, aggregate Audit-Related Fees billed by Deloitte that were required to be approved by the Audit Committee of the registrant's Board of Directors (the "Audit Committee") for audit-related services rendered to the registrant's investment advisor and any entity controlling, controlled by or under common control with the investment advisor that provides ongoing services to the registrant (the "Affiliated Service Providers") that relate directly to the operations and financial reporting of the registrant were $0 and $0, respectively.
(c) Tax Fees. The aggregate Tax Fees of Deloitte for professional services rendered for the review of Federal, state and excise tax returns and other tax compliance consultations for the fiscal years ended September 30, 2024 and September 30, 2023 were $23,800 and $22,600, respectively.
Fees included in the Tax Fees category comprise all services performed by professional staff in the independent accountant's tax division except those services related to the audit.
For the twelve month periods ended September 30, 2024 and September 30, 2023, the aggregate Tax Fees billed by Deloitte that were required to be approved by the registrant's Audit Committee for tax compliance, tax advice and tax planning services rendered on behalf of Affiliated Service Providers that relate directly to the operations and financial reporting of the registrant were $0 and $0, respectively.
(d) All Other Fees. The aggregate Other Fees of Deloitte for all other non-audit services rendered to the registrant for the fiscal years ended September 30, 2024 and September 30, 2023, were $0 and $0, respectively.
For the twelve month periods ended September 30, 2024 and September 30, 2023, the aggregate fees in this category billed by Deloitte that were required to be approved by the registrant's Audit Committee for services rendered on behalf of Affiliated Service Providers that relate directly to the operations and financial reporting of the registrant were $0 and $0, respectively.
(e)(1) Audit Committee Pre-Approval Policies and Procedures.
The registrant's Audit Committee must pre-approve all audit and non-audit services provided by the independent accountant relating to the operations or financial reporting of the registrant. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The registrant's Audit Committee has adopted a policy whereby audit and non-audit services performed by the registrant's independent accountant require pre-approval in advance at regularly scheduled Audit Committee meetings. If such a service is required between regularly scheduled Audit Committee meetings, pre-approval may be authorized by the Audit Committee Chairperson with ratification at the next scheduled audit committee meeting.
(2) No services included in (b) - (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) For the twelve month periods ended September 30, 2024 and September 30, 2023, aggregate non-audit fees billed by Deloitte for services rendered to the registrant were $23,800 and $22,600, respectively.
For the twelve month periods ended September 30, 2024 and September 30, 2023, aggregate non-audit fees billed by Deloitte for services rendered to the Affiliated Services Providers were $0 and $0, respectively.
(h) The registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. No such services were rendered.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Included as part of the Financial Statements filed under Item 7 of this Form.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
(a) The Financial Statements are filed herewith.
(b) The Financial Highlights are filed herewith.
Annual Financial Statements
September 30, 2024
Table of Contents
|
Schedules of Investments
|
2
|
|
Statements of Assets and Liabilites
|
12
|
|
Statements of Operations
|
14
|
|
Statements of Changes in Net Assets
|
16
|
|
Financial Highlights
|
19
|
|
Notes to the Financial Statements
|
24
|
|
Report of Independent Registered Public Accounting Firm
|
31
|
|
Important Supplemental Information
|
32
|
|
Changes in and Disagreements with Accountants for Open-End Management Investment
Companies
|
33
|
|
Proxy Disclosures for Open-End Management Investment Companies
|
34
|
|
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment
Companies
|
35
|
|
Statement Regarding Basis for Approval of Investment Advisory Contract
|
36
|
Schedules of Investments
As of September 30, 2024
Ariel Fund
|
Number of Shares
|
Common Stocks-99.48%
|
Value ($)
|
|
|
Consumer Discretionary-37.14%
|
|
|
2,821,143
|
Madison Square Garden Entertainment Corporation(a)
|
119,983,212
|
|
1,366,142
|
Adtalem Global Education, Inc.(a)
|
103,116,398
|
|
565,504
|
Royal Caribbean Cruises, Ltd.
|
100,297,789
|
|
1,548,230
|
Boyd Gaming Corporation
|
100,093,070
|
|
2,180,705
|
Sphere Entertainment Company(a)
|
96,343,547
|
|
8,891,670
|
Paramount Global
|
94,429,535
|
|
4,583,445
|
Mattel, Inc.(a)
|
87,314,627
|
|
25,386,401
|
Leslie's, Inc.(a)(b)
|
80,221,027
|
|
2,454,623
|
Interpublic Group of Companies, Inc.
|
77,639,726
|
|
306,553
|
Madison Square Garden Sports Corporation(a)
|
63,842,728
|
|
2,070,821
|
Gentex Corporation
|
61,482,675
|
|
3,130,262
|
Manchester United plc(a)
|
50,647,639
|
|
|
|
1,035,411,973
|
|
|
Consumer Staples-3.53%
|
|
|
812,952
|
J.M. Smucker Company
|
98,448,487
|
|
|
Energy-2.33%
|
|
|
3,505,349
|
Core Laboratories, Inc.(b)
|
64,954,117
|
|
|
Financials-21.06%
|
|
|
1,142,291
|
Northern Trust Corporation
|
102,840,459
|
|
573,939
|
Affiliated Managers Group, Inc.
|
102,046,354
|
|
2,013,817
|
Lazard, Inc.
|
101,456,100
|
|
2,182,992
|
Carlyle Group, Inc.
|
93,999,636
|
|
947,440
|
First American Financial Corporation
|
62,540,514
|
|
504,588
|
BOK Financial Corporation
|
52,789,997
|
|
1,255,223
|
Janus Henderson Group plc
|
47,786,340
|
|
2,070,647
|
GCM Grosvenor, Inc.
|
23,439,724
|
|
|
|
586,899,124
|
|
|
Health Care-10.22%
|
|
|
4,908,366
|
Envista Holdings Corporation(a)
|
96,989,312
|
|
1,140,938
|
Prestige Consumer Healthcare, Inc.(a)
|
82,261,630
|
|
158,609
|
Bio-Rad Laboratories, Inc.(a)
|
53,067,399
|
|
266,140
|
Charles River Laboratories International, Inc.(a)
|
52,421,596
|
|
|
|
284,739,937
|
|
|
Industrials-21.72%
|
|
|
800,889
|
Mohawk Industries, Inc.(a)
|
128,686,845
|
|
525,550
|
Generac Holdings, Inc.(a)
|
83,499,384
|
|
10,507,416
|
ADT, Inc.
|
75,968,618
|
|
178,206
|
Zebra Technologies Corporation(a)
|
65,993,246
|
|
1,815,278
|
Axalta Coating Systems, Ltd.(a)
|
65,694,911
|
|
2,125,680
|
Kennametal, Inc.
|
55,118,882
|
|
581,567
|
Masco Corporation
|
48,816,734
|
|
2,227,075
|
Resideo Technologies, Inc.(a)
|
44,853,290
|
|
264,461
|
The Middleby Corporation(a)
|
36,794,459
|
|
|
|
605,426,369
|
|
|
Real Estate-3.48%
|
|
|
359,966
|
Jones Lang LaSalle, Inc.(a)
|
97,122,426
|
|
|
Total Common Stocks (Cost $1,931,211,447)
|
2,773,002,433
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Schedules of Investments
As of September 30, 2024
Ariel Fund (Continued)
|
Number of Shares
|
Short-Term Investments-0.22%
|
Value ($)
|
|
6,320,029
|
Northern Institutional Treasury Portfolio, 4.78%(c)
|
6,320,029
|
|
|
Total Short-Term Investments (Cost $6,320,029)
|
6,320,029
|
|
|
|
|
|
|
Total Investments-99.70% (Cost $1,937,531,476)
|
2,779,322,462
|
|
|
Other Assets less Liabilities-0.30%
|
8,233,979
|
|
|
Net Assets-100.00%
|
2,787,556,441
|
Ariel Appreciation Fund
|
Number of Shares
|
Common Stocks-98.99%
|
Value ($)
|
|
|
Consumer Discretionary-25.90%
|
|
|
1,999,421
|
Mattel, Inc.(a)
|
38,088,970
|
|
985,594
|
Interpublic Group of Companies, Inc.
|
31,174,338
|
|
386,415
|
CarMax, Inc.(a)
|
29,900,793
|
|
120,742
|
Madison Square Garden Sports Corporation(a)
|
25,145,729
|
|
1,260,384
|
Knowles Corporation(a)
|
22,724,724
|
|
530,740
|
Madison Square Garden Entertainment Corporation(a)
|
22,572,372
|
|
679,458
|
Gentex Corporation
|
20,173,108
|
|
534,514
|
BorgWarner, Inc.
|
19,397,513
|
|
1,018,060
|
Manchester United plc(a)
|
16,472,211
|
|
335,861
|
Sphere Entertainment Company(a)
|
14,838,339
|
|
80,253
|
Vail Resorts, Inc.
|
13,987,295
|
|
711,339
|
Paramount Global
|
7,554,420
|
|
|
|
262,029,812
|
|
|
Consumer Staples-3.71%
|
|
|
166,777
|
J.M. Smucker Company
|
20,196,695
|
|
300,304
|
Molson Coors Brewing Company
|
17,273,486
|
|
|
|
37,470,181
|
|
|
Energy-4.95%
|
|
|
1,543,335
|
Core Laboratories, Inc.
|
28,597,997
|
|
1,345,112
|
NOV, Inc.
|
21,481,439
|
|
|
|
50,079,436
|
|
|
Financials-24.96%
|
|
|
465,077
|
Northern Trust Corporation
|
41,870,882
|
|
73,776
|
Goldman Sachs Group, Inc.
|
36,527,235
|
|
613,281
|
Lazard, Inc.
|
30,897,097
|
|
648,153
|
Carlyle Group, Inc.
|
27,909,468
|
|
398,697
|
First American Financial Corporation
|
26,317,989
|
|
370,880
|
The Charles Schwab Corporation
|
24,036,733
|
|
220,324
|
BOK Financial Corporation
|
23,050,297
|
|
199,597
|
Aflac, Inc.
|
22,314,945
|
|
149,849
|
KKR & Company, Inc.
|
19,567,282
|
|
|
|
252,491,928
|
|
|
Health Care-11.97%
|
|
|
144,321
|
Charles River Laboratories International, Inc.(a)
|
28,426,907
|
|
125,294
|
Labcorp Holdings, Inc.
|
28,000,703
|
|
1,243,759
|
Envista Holdings Corporation(a)
|
24,576,678
|
|
66,738
|
Bio-Rad Laboratories, Inc.(a)
|
22,329,200
|
|
164,532
|
Zimmer Biomet Holdings, Inc.
|
17,761,230
|
|
|
|
121,094,718
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
3
Schedules of Investments
As of September 30, 2024
Ariel Appreciation Fund (Continued)
|
Number of Shares
|
Common Stocks-98.99%
|
Value ($)
|
|
|
Industrials-22.39%
|
|
|
207,186
|
Generac Holdings, Inc.(a)
|
32,917,712
|
|
287,028
|
Stanley Black & Decker, Inc.
|
31,610,394
|
|
1,055,002
|
Kennametal, Inc.
|
27,356,202
|
|
645,878
|
Axalta Coating Systems, Ltd.(a)
|
23,374,325
|
|
139,467
|
Keysight Technologies, Inc.(a)
|
22,165,490
|
|
157,729
|
The Middleby Corporation(a)
|
21,944,836
|
|
70,674
|
Littelfuse, Inc.
|
18,746,278
|
|
2,579,378
|
ADT, Inc.
|
18,648,903
|
|
788,154
|
Resideo Technologies, Inc.(a)
|
15,873,421
|
|
196,365
|
nVent Electric plc
|
13,796,605
|
|
|
|
226,434,166
|
|
|
Real Estate-5.11%
|
|
|
210,215
|
CBRE Group, Inc., Class A(a)
|
26,167,563
|
|
94,689
|
Jones Lang LaSalle, Inc.(a)
|
25,548,039
|
|
|
|
51,715,602
|
|
|
Total Common Stocks (Cost $659,121,852)
|
1,001,315,843
|
|
Number of Shares
|
Short-Term Investments-1.01%
|
Value ($)
|
|
10,231,000
|
Northern Institutional Treasury Portfolio, 4.78%(c)
|
10,231,000
|
|
|
Total Short-Term Investments (Cost $10,231,000)
|
10,231,000
|
|
|
|
|
|
|
Total Investments-100.00% (Cost $669,352,852)
|
1,011,546,843
|
|
|
Other Assets less Liabilities-0.00%
|
3,304
|
|
|
Net Assets-100.00%
|
1,011,550,147
|
Ariel Focus Fund
|
Number of Shares
|
Common Stocks-99.91%
|
Value ($)
|
|
|
Basic Materials-6.27%
|
|
|
123,024
|
Barrick Gold Corporation
|
2,446,947
|
|
66,915
|
Mosaic Company
|
1,791,984
|
|
|
|
4,238,931
|
|
|
Consumer Discretionary-15.61%
|
|
|
67,168
|
PHINIA, Inc.
|
3,091,743
|
|
36,441
|
Boyd Gaming Corporation
|
2,355,911
|
|
46,584
|
Madison Square Garden Entertainment Corporation(a)
|
1,981,218
|
|
47,536
|
BorgWarner, Inc.
|
1,725,081
|
|
6,705
|
Madison Square Garden Sports Corporation(a)
|
1,396,383
|
|
|
|
10,550,336
|
|
|
Consumer Staples-4.25%
|
|
|
23,727
|
J.M. Smucker Company
|
2,873,340
|
|
|
Energy-11.35%
|
|
|
115,557
|
APA Corporation
|
2,826,524
|
|
18,672
|
Chevron Corporation
|
2,749,826
|
|
113,251
|
Core Laboratories, Inc.
|
2,098,541
|
|
|
|
7,674,891
|
|
|
Financials-24.86%
|
|
|
8,034
|
Goldman Sachs Group, Inc.
|
3,977,714
|
|
37,262
|
BOK Financial Corporation
|
3,898,350
|
|
80,770
|
Bank of America Corporation
|
3,204,953
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Schedules of Investments
As of September 30, 2024
Ariel Focus Fund (Continued)
|
Number of Shares
|
Common Stocks-99.91%
|
Value ($)
|
|
|
Financials-24.86%
|
|
|
11,772
|
Affiliated Managers Group, Inc.
|
2,093,062
|
|
29,110
|
First American Financial Corporation
|
1,921,551
|
|
18,991
|
Northern Trust Corporation
|
1,709,760
|
|
|
|
16,805,390
|
|
|
Health Care-7.96%
|
|
|
9,536
|
Labcorp Holdings, Inc.
|
2,131,105
|
|
11,936
|
Johnson & Johnson
|
1,934,348
|
|
2,522
|
Bio-Rad Laboratories, Inc.(a)
|
843,811
|
|
29,955
|
ZimVie, Inc.(a)
|
475,386
|
|
|
|
5,384,650
|
|
|
Industrials-23.01%
|
|
|
28,040
|
Mohawk Industries, Inc.(a)
|
4,505,467
|
|
13,855
|
Snap-on, Inc.
|
4,013,932
|
|
6,375
|
Lockheed Martin Corporation
|
3,726,570
|
|
151,568
|
Resideo Technologies, Inc.(a)
|
3,052,580
|
|
1,646
|
Generac Holdings, Inc.(a)
|
261,516
|
|
|
|
15,560,065
|
|
|
Technology-6.60%
|
|
|
26,203
|
Oracle Corporation
|
4,464,991
|
|
|
Total Common Stocks (Cost $47,415,378)
|
67,552,594
|
|
Number of Shares
|
Short-Term Investments-0.09%
|
Value ($)
|
|
58,830
|
Northern Institutional Treasury Portfolio, 4.78%(c)
|
58,830
|
|
|
Total Short-Term Investments (Cost $58,830)
|
58,830
|
|
|
|
|
|
|
Total Investments-100.00% (Cost $47,474,208)
|
67,611,424
|
|
|
Other Assets less Liabilities-(0.00)%
|
(1,154
)
|
|
|
Net Assets-100.00%
|
67,610,270
|
Ariel International Fund
|
Number of Shares
|
Common Stocks-97.72%
|
Value ($)
|
|
|
Austria-2.67%
|
|
|
83,116
|
BAWAG Group AG(a)
|
6,434,806
|
|
|
Belgium-4.16%
|
|
|
125,882
|
KBC Group NV
|
10,007,767
|
|
|
China-2.80%
|
|
|
253,050
|
JD.com, Inc.
|
5,439,345
|
|
12,371
|
Baidu, Inc. ADR(a)
|
1,302,543
|
|
|
|
6,741,888
|
|
|
Denmark-1.56%
|
|
|
125,048
|
Danske Bank A/S
|
3,762,709
|
|
|
Finland-1.00%
|
|
|
552,281
|
Nokia Corporation
|
2,412,364
|
|
|
France-21.49%
|
|
|
384,747
|
Michelin (CGDE)
|
15,615,130
|
|
115,732
|
Sanofi
|
13,256,306
|
|
257,937
|
AXA SA
|
9,914,343
|
|
119,290
|
BNP Paribas SA
|
8,173,081
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
5
Schedules of Investments
As of September 30, 2024
Ariel International Fund (Continued)
|
Number of Shares
|
Common Stocks-97.72%
|
Value ($)
|
|
|
France-21.49% (continued)
|
|
|
31,991
|
Publicis Groupe SA
|
3,496,979
|
|
5,648
|
Thales SA
|
896,222
|
|
1,729
|
Safran SA
|
406,291
|
|
|
|
51,758,352
|
|
|
Germany-16.83%
|
|
|
248,837
|
Fresenius Medical Care AG & Company KGaA
|
10,578,360
|
|
51,261
|
Siemens AG
|
10,347,475
|
|
185,034
|
Daimler Truck Holding AG
|
6,926,791
|
|
29,219
|
Deutsche Boerse AG
|
6,853,045
|
|
151,506
|
Infineon Technologies AG
|
5,305,695
|
|
939
|
Muenchener Rueckver AG
|
516,666
|
|
|
|
40,528,032
|
|
|
Hong Kong-2.64%
|
|
|
719,000
|
CLP Holdings, Ltd.
|
6,367,906
|
|
|
Hungary-0.72%
|
|
|
90,020
|
Wizz Air Holdings plc(a)
|
1,745,108
|
|
|
Israel-5.80%
|
|
|
72,461
|
Check Point Software Technologies, Ltd.(a)
|
13,971,205
|
|
|
Italy-4.93%
|
|
|
347,940
|
Stellantis NV
|
4,805,735
|
|
885,557
|
Snam SpA
|
4,505,899
|
|
425,417
|
Italgas SpA
|
2,571,393
|
|
|
|
11,883,027
|
|
|
Japan-12.06%
|
|
|
481,500
|
Bandai Namco Holdings, Inc.
|
10,975,084
|
|
207,000
|
Bridgestone Corporation
|
7,921,378
|
|
424,000
|
Subaru Corporation
|
7,322,094
|
|
76,600
|
Secom Company, Ltd.
|
2,821,502
|
|
|
|
29,040,058
|
|
|
Netherlands-0.92%
|
|
|
63,975
|
Koninklijke Ahold Delhaize NV
|
2,209,763
|
|
|
Singapore-0.30%
|
|
|
65,700
|
Venture Corporation, Ltd.
|
717,703
|
|
|
South Korea-3.24%
|
|
|
75,386
|
KB Financial Group, Inc.
|
4,663,705
|
|
66,818
|
Samsung Electronics Company, Ltd.
|
3,142,393
|
|
|
|
7,806,098
|
|
|
Spain-4.45%
|
|
|
406,587
|
Endesa SA
|
8,884,388
|
|
138,717
|
Tecnicas Reunidas SA(a)
|
1,829,792
|
|
|
|
10,714,180
|
|
|
Switzerland-1.57%
|
|
|
11,845
|
Roche Holding AG
|
3,787,153
|
|
|
Taiwan-1.50%
|
|
|
17,787
|
Taiwan Semiconductor Manufacturing Company, Ltd. ADR
|
3,089,069
|
|
17,000
|
Taiwan Semiconductor Manufacturing Company, Ltd.
|
514,085
|
|
|
|
3,603,154
|
|
|
United Arab Emirates-1.01%
|
|
|
1,025,443
|
Emaar Properties PJSC
|
2,434,452
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Schedules of Investments
As of September 30, 2024
Ariel International Fund (Continued)
|
Number of Shares
|
Common Stocks-97.72%
|
Value ($)
|
|
|
United Kingdom-5.17%
|
|
|
1,626,837
|
Tesco plc
|
7,801,724
|
|
129,852
|
GSK plc
|
2,632,729
|
|
807,470
|
Direct Line Insurance Group plc
|
2,021,992
|
|
|
|
12,456,445
|
|
|
United States-2.90%
|
|
|
72,430
|
Aptiv plc(a)
|
5,215,684
|
|
14,476
|
Philip Morris International, Inc.
|
1,757,387
|
|
|
|
6,973,071
|
|
|
Total Common Stocks (Cost $192,855,205)
|
235,355,241
|
|
Number of Shares
|
Short-Term Investments-0.38%
|
Value ($)
|
|
920,970
|
Northern Institutional Treasury Portfolio, 4.78%(c)
|
920,970
|
|
|
Total Short-Term Investments (Cost $920,970)
|
920,970
|
|
|
|
|
|
|
Total Investments-98.10% (Cost $193,776,175)
|
236,276,211
|
|
|
Foreign Currency, Other Assets less Liabilities-1.90%
|
4,568,576
|
|
|
Net Assets-100.00%
|
240,844,787
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
7
Schedules of Investments
As of September 30, 2024
Ariel International Fund (Continued)
Open Forward Currency Contracts
|
Contract
Settlement
Date
|
Counterparty
|
Currency to
be Received
|
Amount to
be Received
|
Currency to
be Delivered
|
Amount to
be Delivered
|
Unrealized
Appreciation
(Depreciation)
|
|
Open Forward Currency Contracts with Unrealized Appreciation
|
||||||
|
11/25/2024
|
UBS
|
Australian Dollar
|
24,739,920
|
United States Dollar
|
16,803,799
|
$311,940
|
|
11/25/2024
|
UBS
|
Euro
|
2,920,574
|
Swiss Franc
|
2,724,703
|
18,742
|
|
11/25/2024
|
UBS
|
Swedish Krona
|
12,081,477
|
Euro
|
1,063,802
|
5,946
|
|
Subtotal UBS
|
|
|
|
336,628
|
||
|
11/25/2024
|
JPMorgan
|
United States Dollar
|
25,790,847
|
Euro
|
23,017,061
|
110,367
|
|
Subtotal JPMorgan
|
|
|
|
110,367
|
||
|
Subtotal - Open Forward Currency Contracts with Unrealized Appreciation
|
$446,995
|
|
Contract
Settlement
Date
|
Counterparty
|
Currency to
be Received
|
Amount to
be Received
|
Currency to
be Delivered
|
Amount to
be Delivered
|
Unrealized
Appreciation
(Depreciation)
|
|
Open Forward Currency Contracts with Unrealized Depreciation
|
||||||
|
11/25/2024
|
UBS
|
Japanese Yen
|
347,450,854
|
United States Dollar
|
2,439,241
|
$(3,298)
|
|
11/25/2024
|
UBS
|
Swiss Franc
|
3,378,837
|
Euro
|
3,609,460
|
(9,549)
|
|
11/25/2024
|
UBS
|
United States Dollar
|
1,988,477
|
Chinese Offshore Yuan
|
14,043,841
|
(25,197)
|
|
11/25/2024
|
UBS
|
United States Dollar
|
4,168,827
|
Australian Dollar
|
6,181,480
|
(107,686)
|
|
Subtotal UBS
|
|
|
|
(145,730)
|
||
|
11/25/2024
|
JPMorgan
|
Japanese Yen
|
3,803,857
|
Chinese Offshore Yuan
|
188,645
|
(380)
|
|
11/25/2024
|
JPMorgan
|
Japanese Yen
|
1,742,906,693
|
United States Dollar
|
12,235,986
|
(16,640)
|
|
Subtotal JPMorgan
|
|
|
|
(17,020)
|
||
|
Subtotal - Open Forward Currency Contracts with Unrealized Depreciation
|
$(162,750)
|
|||||
|
Net Unrealized Appreciation (Depreciation) on Forward Currency Contracts
|
$284,245
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Schedules of Investments
As of September 30, 2024
Ariel Global Fund
|
Number of Shares
|
Common Stocks-98.60%
|
Value ($)
|
|
|
Austria-1.25%
|
|
|
9,254
|
BAWAG Group AG(a)
|
716,441
|
|
|
Belgium-2.68%
|
|
|
19,397
|
KBC Group NV
|
1,542,084
|
|
|
Brazil-0.49%
|
|
|
14,520
|
Telefonica Brasil SA(a)
|
148,780
|
|
20,497
|
BB Seguridade Participacoes SA
|
133,569
|
|
|
|
282,349
|
|
|
China-6.02%
|
|
|
122,550
|
JD.com, Inc.
|
2,634,230
|
|
6,153
|
Baidu, Inc. ADR(a)
|
647,849
|
|
4,536
|
JD.com, Inc. ADR
|
181,440
|
|
|
|
3,463,519
|
|
|
France-13.09%
|
|
|
67,407
|
Michelin (CGDE)
|
2,735,743
|
|
18,252
|
Sanofi
|
2,090,641
|
|
17,002
|
BNP Paribas SA
|
1,164,882
|
|
25,771
|
AXA SA
|
990,562
|
|
5,018
|
Publicis Groupe SA
|
548,524
|
|
|
|
7,530,352
|
|
|
Germany-10.51%
|
|
|
42,720
|
Fresenius Medical Care AG & Company KGaA
|
1,816,078
|
|
7,427
|
Siemens AG
|
1,499,204
|
|
27,694
|
Daimler Truck Holding AG
|
1,036,731
|
|
3,920
|
Deutsche Boerse AG
|
919,400
|
|
22,109
|
Infineon Technologies AG
|
774,251
|
|
|
|
6,045,664
|
|
|
Hong Kong-1.25%
|
|
|
81,000
|
CLP Holdings, Ltd.
|
717,386
|
|
|
Hungary-0.80%
|
|
|
23,646
|
Wizz Air Holdings plc(a)
|
458,396
|
|
|
Israel-5.48%
|
|
|
16,367
|
Check Point Software Technologies, Ltd.(a)
|
3,155,721
|
|
|
Italy-1.32%
|
|
|
45,125
|
Stellantis NV
|
623,265
|
|
22,840
|
Italgas SpA
|
138,054
|
|
|
|
761,319
|
|
|
Japan-6.15%
|
|
|
65,900
|
Bandai Namco Holdings, Inc.
|
1,502,094
|
|
29,100
|
Bridgestone Corporation
|
1,113,585
|
|
53,300
|
Subaru Corporation
|
920,442
|
|
|
|
3,536,121
|
|
|
Peru-1.11%
|
|
|
3,535
|
Credicorp, Ltd.
|
639,729
|
|
|
South Korea-3.63%
|
|
|
23,398
|
Samsung Electronics Company, Ltd.
|
1,100,388
|
|
15,966
|
KB Financial Group, Inc.
|
987,726
|
|
|
|
2,088,114
|
|
|
Spain-2.42%
|
|
|
63,819
|
Endesa SA
|
1,394,518
|
|
|
Switzerland-0.96%
|
|
|
1,731
|
Roche Holding AG
|
553,445
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
9
Schedules of Investments
As of September 30, 2024
Ariel Global Fund (Continued)
|
Number of Shares
|
Common Stocks-98.60%
|
Value ($)
|
|
|
Taiwan-3.47%
|
|
|
55,000
|
Taiwan Semiconductor Manufacturing Company, Ltd.
|
1,663,217
|
|
45,000
|
Catcher Technology Company, Ltd.
|
336,293
|
|
|
|
1,999,510
|
|
|
United Arab Emirates-1.17%
|
|
|
283,199
|
Emaar Properties PJSC
|
672,328
|
|
|
United Kingdom-2.18%
|
|
|
206,156
|
Tesco plc
|
988,650
|
|
13,163
|
GSK plc
|
266,878
|
|
|
|
1,255,528
|
|
|
United States-34.62%
|
|
|
7,077
|
Microsoft Corporation
|
3,045,233
|
|
45,250
|
Verizon Communications, Inc.
|
2,032,177
|
|
13,164
|
NetApp, Inc.
|
1,625,886
|
|
8,543
|
Allstate Corporation
|
1,620,180
|
|
10,193
|
Capital One Financial Corporation
|
1,526,198
|
|
7,872
|
DaVita, Inc.(a)
|
1,290,457
|
|
19,944
|
CVS Health Corporation
|
1,254,079
|
|
11,915
|
Western Alliance Bancorp
|
1,030,528
|
|
4,631
|
D.R. Horton, Inc.
|
883,456
|
|
75,842
|
CNH Industrial NV
|
841,846
|
|
34,047
|
Intel Corporation
|
798,743
|
|
4,231
|
Lennar Corporation
|
793,228
|
|
10,205
|
Aptiv plc(a)
|
734,862
|
|
7,673
|
Gilead Sciences, Inc.
|
643,304
|
|
21,122
|
Teradata Corporation(a)
|
640,841
|
|
9,793
|
Comerica, Inc.
|
586,699
|
|
11,094
|
Bristol-Myers Squibb Company
|
574,004
|
|
|
|
19,921,721
|
|
|
Total Common Stocks (Cost $44,551,591)
|
56,734,245
|
|
Number of Shares
|
Short-Term Investments-0.37%
|
Value ($)
|
|
214,505
|
Northern Institutional Treasury Portfolio, 4.78%(c)
|
214,505
|
|
|
Total Short-Term Investments (Cost $214,505)
|
214,505
|
|
|
|
|
|
|
Total Investments-98.97% (Cost $44,766,096)
|
56,948,750
|
|
|
Foreign Currency, Other Assets less Liabilities-1.03%
|
591,541
|
|
|
Net Assets-100.00%
|
57,540,291
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Schedules of Investments
As of September 30, 2024
Ariel Global Fund (Continued)
Open Forward Currency Contracts
|
Contract
Settlement
Date
|
Counterparty
|
Currency to
be Received
|
Amount to
be Received
|
Currency to
be Delivered
|
Amount to
be Delivered
|
Unrealized
Appreciation
(Depreciation)
|
|
Open Forward Currency Contracts with Unrealized Appreciation
|
||||||
|
11/25/2024
|
JPMorgan
|
United States Dollar
|
9,968,171
|
Euro
|
8,896,102
|
$42,657
|
|
11/25/2024
|
JPMorgan
|
United States Dollar
|
394,009
|
Japanese Yen
|
56,123,000
|
536
|
|
Subtotal JPMorgan
|
|
|
|
43,193
|
||
|
Subtotal - Open Forward Currency Contracts with Unrealized Appreciation
|
$43,193
|
|
Contract
Settlement
Date
|
Counterparty
|
Currency to
be Received
|
Amount to
be Received
|
Currency to
be Delivered
|
Amount to
be Delivered
|
Unrealized
Appreciation
(Depreciation)
|
|
Open Forward Currency Contracts with Unrealized Depreciation
|
||||||
|
11/25/2024
|
UBS
|
United States Dollar
|
522,952
|
Chinese Offshore Yuan
|
3,693,407
|
$(6,627)
|
|
Subtotal UBS
|
|
|
|
(6,627)
|
||
|
Subtotal - Open Forward Currency Contracts with Unrealized Depreciation
|
$(6,627)
|
|||||
|
Net Unrealized Appreciation (Depreciation) on Forward Currency Contracts
|
$36,566
|
|
(a)
|
Non-income producing.
|
|
(b)
|
Affiliated company (See Note Seven, Transactions with Affiliated Companies).
|
|
(c)
|
The rate presented is the 7-day current yield as of September 30, 2024.
|
|
ADR
|
American Depositary Receipt
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
11
Statements of Assets & Liabilities
As of September 30, 2024
|
|
Ariel Fund
|
Ariel Appreciation
Fund
|
Ariel Focus Fund
|
|
Assets
|
|||
|
Investments in Unaffiliated Issuers, at Value
(cost $1,743,690,710, $659,121,852 and $47,415,378, respectively)
|
$2,627,827,289
|
$1,001,315,843
|
$67,552,594
|
|
Investments in Affiliated Issuers, at Value (cost $187,520,737)
|
145,175,144
(a)
|
-
|
-
|
|
Short-Term Investments, at Value (cost $6,320,029, $10,231,000 and
$58,830, respectively)
|
6,320,029
|
10,231,000
|
58,830
|
|
Dividends and Interest Receivable
|
2,448,516
|
627,332
|
21,268
|
|
Receivable for Dividend Reclaims
|
-
|
-
|
2,532
|
|
Receivable for Fund Shares Sold
|
7,044,755
|
72,467
|
13,394
|
|
Prepaid and Other Assets
|
13,320
|
12,564
|
5,720
|
|
Total Assets
|
2,788,829,053
|
1,012,259,206
|
67,654,338
|
|
Liabilities
|
|||
|
Payable for Fund Shares Redeemed
|
747,964
|
468,424
|
19,305
|
|
Accrued Expenses:
|
|||
|
Shareholder Service Fees
|
220,338
|
99,025
|
2,666
|
|
Transfer Agent Fees
|
183,042
|
78,781
|
6,717
|
|
Custody Fees
|
4,740
|
2,063
|
427
|
|
Trustee Fees
|
-
|
1,165
|
-
|
|
Other Liabilities
|
116,528
|
59,601
|
14,953
|
|
Total Liabilities
|
1,272,612
|
709,059
|
44,068
|
|
Net Assets
|
$2,787,556,441
|
$1,011,550,147
|
$67,610,270
|
|
Net Assets Consist of
|
|||
|
Paid-in Capital
|
$1,871,549,138
|
$625,432,049
|
$47,619,595
|
|
Distributable Earnings
|
916,007,303
|
386,118,098
|
19,990,675
|
|
Net Assets
|
$2,787,556,441
|
$1,011,550,147
|
$67,610,270
|
|
Investor Class Shares
|
|||
|
Net Assets
|
$1,256,281,752
|
$813,234,220
|
$45,631,809
|
|
Shares Outstanding (no par value, unlimited authorized)
|
16,345,487
|
19,443,549
|
2,718,012
|
|
Net Asset Value, Offering and Redemption Price per Share
|
$76.86
|
$41.83
|
$16.79
|
|
Institutional Class Shares
|
|||
|
Net Assets
|
$1,531,274,689
|
$198,315,927
|
$21,978,461
|
|
Shares Outstanding (no par value, unlimited authorized)
|
19,865,703
|
4,720,709
|
1,304,426
|
|
Net Asset Value, Offering and Redemption Price per Share
|
$77.08
|
$42.01
|
$16.85
|
|
(a)
|
See Note Seven, Transactions with Affiliated Companies, for information on affiliated issuers.
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Statements of Assets & Liabilities
As of September 30, 2024
|
|
Ariel International
Fund
|
Ariel Global Fund
|
|
Assets
|
||
|
Investments in Unaffiliated Issuers, at Value (cost $192,855,205 and $44,551,591, respectively)
|
$235,355,241
|
$56,734,245
|
|
Short-Term Investments, at Value (cost $920,970 and $214,505, respectively)
|
920,970
|
214,505
|
|
Foreign Currencies (cost $118 and $37,530, respectively)
|
118
|
37,780
|
|
Dividends and Interest Receivable
|
317,104
|
70,772
|
|
Receivable for Dividend Reclaims
|
4,003,048
|
475,248
|
|
Receivable for Fund Shares Sold
|
32,119
|
3,510
|
|
Unrealized Appreciation on Forward Currency Contracts
|
446,995
|
43,193
|
|
Prepaid and Other Assets
|
5,640
|
5,640
|
|
Total Assets
|
241,081,235
|
57,584,893
|
|
Liabilities
|
||
|
Payable for Fund Shares Redeemed
|
2,499
|
7,506
|
|
Unrealized Depreciation on Forward Currency Contracts
|
162,750
|
6,627
|
|
Accrued Expenses:
|
||
|
Shareholder Service Fees
|
13,111
|
1,890
|
|
Transfer Agent Fees
|
17,961
|
4,553
|
|
Custody Fees
|
11,214
|
3,320
|
|
Trustee Fees
|
1,125
|
360
|
|
Other Liabilities
|
27,788
|
20,346
|
|
Total Liabilities
|
236,448
|
44,602
|
|
Net Assets
|
$240,844,787
|
$57,540,291
|
|
Net Assets Consist of
|
||
|
Paid-in Capital
|
$190,475,712
|
$36,320,624
|
|
Distributable Earnings
|
50,369,075
|
21,219,667
|
|
Net Assets
|
$240,844,787
|
$57,540,291
|
|
Investor Class Shares
|
||
|
Net Assets
|
$19,236,765
|
$12,766,331
|
|
Shares Outstanding (no par value, unlimited authorized)
|
1,217,760
|
739,817
|
|
Net Asset Value, Offering and Redemption Price per Share
|
$15.80
|
$17.26
|
|
Institutional Class Shares
|
||
|
Net Assets
|
$221,608,022
|
$44,773,960
|
|
Shares Outstanding (no par value, unlimited authorized)
|
14,309,630
|
2,695,658
|
|
Net Asset Value, Offering and Redemption Price per Share
|
$15.49
|
$16.61
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
13
Statements of Operations
Year Ended September 30, 2024
|
|
Ariel Fund
|
Ariel Appreciation
Fund
|
Ariel Focus Fund
|
|
Investment Income
|
|||
|
Dividends
|
|||
|
Unaffiliated Issuers
|
$30,397,377
|
$16,175,683
|
$1,352,450
(a)
|
|
Affiliated Issuers
|
128,670
(b)
|
-
|
-
|
|
Interest
|
972,974
|
683,788
|
54,033
|
|
Total Investment Income
|
31,499,021
|
16,859,471
|
1,406,483
|
|
Expenses
|
|||
|
Management Fees
|
15,215,437
|
7,304,928
|
426,920
|
|
Distribution Fees (Investor Class)
|
2,970,443
|
1,990,934
|
107,933
|
|
Shareholder Service Fees
|
|||
|
Investor Class
|
993,490
|
569,465
|
22,565
|
|
Institutional Class
|
602,901
|
65,280
|
5,590
|
|
Transfer Agent Fees and Expenses
|
|||
|
Investor Class
|
264,704
|
185,799
|
15,229
|
|
Institutional Class
|
224,528
|
34,650
|
4,069
|
|
Printing and Postage Expenses
|
|||
|
Investor Class
|
241,637
|
151,838
|
10,021
|
|
Institutional Class
|
99,471
|
22,469
|
1,928
|
|
Trustees' Fees and Expenses
|
560,489
|
219,410
|
14,067
|
|
Professional Fees
|
303,715
|
137,021
|
37,579
|
|
Custody Fees and Expenses
|
30,040
|
12,710
|
2,967
|
|
Federal and State Registration Fees
|
54,845
|
37,942
|
35,220
|
|
Interest Expense
|
1,487
|
-
|
66
|
|
Miscellaneous Expenses
|
321,126
|
137,034
|
18,139
|
|
Total Expenses Before Reimbursements
|
21,884,313
|
10,869,480
|
702,293
|
|
Expense Reimbursements
|
-
|
-
|
(101,695
)
|
|
Net Expenses
|
21,884,313
|
10,869,480
|
600,598
|
|
Net Investment Income
|
9,614,708
|
5,989,991
|
805,885
|
|
Realized and Unrealized Gain (Loss)
|
|||
|
Net Realized Gain (Loss) on Investments
|
|||
|
Unaffiliated Issuers
|
133,375,700
|
57,811,965
|
183,961
|
|
Affiliated Issuers
|
9,849,831
(b)
|
-
|
-
|
|
Total Realized Gain (Loss) on Investments
|
143,225,531
|
57,811,965
|
183,961
|
|
Change in Net Unrealized Appreciation (Depreciation) on Investments
|
|||
|
Unaffiliated Issuers
|
471,164,278
|
105,487,855
|
15,198,849
|
|
Affiliated Issuers
|
21,183,405
(b)
|
-
|
-
|
|
Total Change in Net Unrealized Appreciation (Depreciation) on
Investments
|
492,347,683
|
105,487,855
|
15,198,849
|
|
Net Gain (Loss) on Investments
|
635,573,214
|
163,299,820
|
15,382,810
|
|
Net Increase (Decrease) in Net Assets Resulting from Operations
|
$645,187,922
|
$169,289,811
|
$16,188,695
|
|
(a)
|
Net of $11,429 in foreign taxes withheld.
|
|
(b)
|
See Note Seven, Transactions with Affiliated Companies, for information on affiliated issuers.
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Statements of Operations
Year Ended September 30, 2024
|
|
Ariel International
Fund
|
Ariel Global Fund
|
|
Investment Income
|
||
|
Dividends
|
||
|
Unaffiliated Issuers
|
$10,126,998
(a)
|
$1,289,575
(a)
|
|
Interest
|
91,817
|
22,777
|
|
Total Investment Income
|
10,218,815
|
1,312,352
|
|
Expenses
|
||
|
Management Fees
|
2,708,992
|
512,696
|
|
Distribution Fees (Investor Class)
|
46,566
|
31,211
|
|
Shareholder Service Fees
|
||
|
Investor Class
|
19,104
|
9,484
|
|
Institutional Class
|
128,348
|
13,380
|
|
Transfer Agent Fees and Expenses
|
||
|
Investor Class
|
5,764
|
5,277
|
|
Institutional Class
|
48,158
|
7,163
|
|
Printing and Postage Expenses
|
||
|
Investor Class
|
9,542
|
8,343
|
|
Institutional Class
|
11,652
|
5,226
|
|
Trustees' Fees and Expenses
|
81,303
|
15,736
|
|
Professional Fees
|
72,547
|
44,070
|
|
Custody Fees and Expenses
|
90,127
|
32,177
|
|
Administration Fees
|
28,615
|
12,320
|
|
Fund Accounting Fees
|
18,883
|
7,778
|
|
Federal and State Registration Fees
|
39,833
|
36,388
|
|
Interest Expense
|
112,721
|
8,894
|
|
Miscellaneous Expenses
|
77,844
|
26,231
|
|
Total Expenses Before Reimbursements
|
3,499,999
|
776,374
|
|
Expense Reimbursements
|
(360,818
)
|
(172,304
)
|
|
Net Expenses
|
3,139,181
|
604,070
|
|
Net Investment Income
|
7,079,634
|
708,282
|
|
Realized and Unrealized Gain (Loss)
|
||
|
Net Realized Gain (Loss) on
|
||
|
Investments
|
52,979,544
|
16,421,446
|
|
Foreign Currency Transactions
|
1,554,011
|
(362,696
)
|
|
Forward Currency Contracts
|
(6,941,593
)
|
1,569,258
|
|
Total Realized Gain (Loss) on Investments
|
47,591,962
|
17,628,008
|
|
Change in Net Unrealized Appreciation (Depreciation) on
|
||
|
Investments
|
672,600
|
(4,500,225
)
|
|
Foreign Currency Translation
|
270,672
|
33,809
|
|
Forward Currency Contracts
|
6,673,553
|
(1,904,353
)
|
|
Total Change in Net Unrealized Appreciation (Depreciation) on Investments
|
7,616,825
|
(6,370,769
)
|
|
Net Gain (Loss) on Investments
|
55,208,787
|
11,257,239
|
|
Net Increase (Decrease) in Net Assets Resulting from Operations
|
$62,288,421
|
$11,965,521
|
|
(a)
|
Net of $1,518,461 and $187,775 in foreign taxes withheld, respectively.
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
15
Statements of Changes in Net Assets
|
|
Ariel Fund
|
Ariel Appreciation Fund
|
||
|
|
Year Ended
September 30, 2024
|
Year Ended
September 30, 2023
|
Year Ended
September 30, 2024
|
Year Ended
September 30, 2023
|
|
Operations
|
||||
|
Net Investment Income (Loss)
|
$9,614,708
|
$16,848,380
|
$5,989,991
|
$7,873,689
|
|
Net Realized Gain (Loss) on Investments
|
143,225,531
|
120,830,729
|
57,811,965
|
55,385,069
|
|
Change in Net Unrealized Appreciation
(Depreciation) on Investments
|
492,347,683
|
204,511,300
|
105,487,855
|
91,946,891
|
|
Net Increase (Decrease) in Net Assets from
Operations
|
645,187,922
|
342,190,409
|
169,289,811
|
155,205,649
|
|
Distributions to Shareholders
|
||||
|
Investor Class
|
(60,750,331
)
|
(101,883,426
)
|
(50,933,531
)
|
(90,715,608
)
|
|
Institutional Class
|
(79,576,906
)
|
(114,645,716
)
|
(14,883,187
)
|
(20,435,907
)
|
|
Total Distributions
|
(140,327,237
)
|
(216,529,142
)
|
(65,816,718
)
|
(111,151,515
)
|
|
Share Transactions
|
||||
|
Value of Shares Issued
|
||||
|
Investor Class
|
46,285,664
|
45,557,046
|
22,488,205
|
44,265,501
|
|
Institutional Class
|
286,664,032
|
296,039,638
|
21,492,011
|
61,636,934
|
|
Value of Shares Issued in Reinvestment of
Dividends and Distributions
|
||||
|
Investor Class
|
58,993,510
|
98,914,214
|
49,825,637
|
88,774,874
|
|
Institutional Class
|
75,646,264
|
108,614,831
|
13,906,461
|
18,958,974
|
|
Value of Shares Redeemed
|
||||
|
Investor Class
|
(221,726,414
)
|
(173,819,429
)
|
(135,585,022
)
|
(216,729,674
)
|
|
Institutional Class
|
(513,454,362
)
|
(269,914,715
)
|
(82,106,433
)
|
(37,698,244
)
|
|
Net Increase (Decrease) in Net Assets from
Share Transactions
|
(267,591,306
)
|
105,391,585
|
(109,979,141
)
|
(40,791,635
)
|
|
Total Increase (Decrease) in Net Assets
|
237,269,379
|
231,052,852
|
(6,506,048
)
|
3,262,499
|
|
Net Assets
|
||||
|
Beginning of Year
|
2,550,287,062
|
2,319,234,210
|
1,018,056,195
|
1,014,793,696
|
|
End of Year
|
$2,787,556,441
|
$2,550,287,062
|
$1,011,550,147
|
$1,018,056,195
|
|
Capital Share Transactions
|
||||
|
Investor Shares
|
||||
|
Shares Sold
|
675,606
|
685,350
|
582,959
|
1,145,332
|
|
Shares Issued to Holders in Reinvestment of
Dividends and Distributions
|
961,116
|
1,545,894
|
1,394,741
|
2,302,750
|
|
Shares Redeemed
|
(3,274,407
)
|
(2,620,755
)
|
(3,530,094
)
|
(5,551,218
)
|
|
Net Increase (Decrease)
|
(1,637,685
)
|
(389,511
)
|
(1,552,394
)
|
(2,103,136
)
|
|
Institutional Shares
|
||||
|
Shares Sold
|
4,102,322
|
4,464,644
|
562,956
|
1,544,434
|
|
Shares Issued to Holders in Reinvestment of
Dividends and Distributions
|
1,221,849
|
1,695,357
|
385,779
|
490,193
|
|
Shares Redeemed
|
(7,485,593
)
|
(4,060,517
)
|
(2,123,459
)
|
(960,862
)
|
|
Net Increase (Decrease)
|
(2,161,422
)
|
2,099,484
|
(1,174,724
)
|
1,073,765
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Statements of Changes in Net Assets
|
|
Ariel Focus Fund
|
|
|
|
Year Ended
September 30, 2024
|
Year Ended
September 30, 2023
|
|
Operations
|
||
|
Net Investment Income (Loss)
|
$805,885
|
$904,776
|
|
Net Realized Gain (Loss) on Investments
|
183,961
|
1,253,464
|
|
Change in Net Unrealized Appreciation (Depreciation) on Investments
|
15,198,849
|
2,189,136
|
|
Net Increase (Decrease) in Net Assets from Operations
|
16,188,695
|
4,347,376
|
|
Distributions to Shareholders
|
||
|
Investor Class
|
(1,470,285
)
|
(3,466,117
)
|
|
Institutional Class
|
(779,930
)
|
(1,485,053
)
|
|
Total Distributions
|
(2,250,215
)
|
(4,951,170
)
|
|
Share Transactions
|
||
|
Value of Shares Issued
|
||
|
Investor Class
|
2,582,516
|
3,181,127
|
|
Institutional Class
|
861,647
|
4,563,399
|
|
Value of Shares Issued in Reinvestment of Dividends and Distributions
|
||
|
Investor Class
|
1,291,053
|
3,037,384
|
|
Institutional Class
|
773,975
|
1,474,854
|
|
Value of Shares Redeemed
|
||
|
Investor Class
|
(8,404,212
)
|
(5,535,093
)
|
|
Institutional Class
|
(4,840,569
)
|
(1,286,681
)
|
|
Net Increase (Decrease) in Net Assets from Share Transactions
|
(7,735,590
)
|
5,434,990
|
|
Total Increase (Decrease) in Net Assets
|
6,202,890
|
4,831,196
|
|
Net Assets
|
||
|
Beginning of Year
|
61,407,380
|
56,576,184
|
|
End of Year
|
$67,610,270
|
$61,407,380
|
|
Capital Share Transactions
|
||
|
Investor Shares
|
||
|
Shares Sold
|
176,864
|
222,340
|
|
Shares Issued to Holders in Reinvestment of Dividends and Distributions
|
92,783
|
208,672
|
|
Shares Redeemed
|
(554,042
)
|
(387,121
)
|
|
Net Increase (Decrease)
|
(284,395
)
|
43,891
|
|
Institutional Shares
|
||
|
Shares Sold
|
60,542
|
309,289
|
|
Shares Issued to Holders in Reinvestment of Dividends and Distributions
|
55,338
|
101,225
|
|
Shares Redeemed
|
(311,665
)
|
(89,069
)
|
|
Net Increase (Decrease)
|
(195,785
)
|
321,445
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
17
Statements of Changes in Net Assets
|
|
Ariel International Fund
|
Ariel Global Fund
|
||
|
|
Year Ended
September 30, 2024
|
Year Ended
September 30, 2023
|
Year Ended
September 30, 2024
|
Year Ended
September 30, 2023
|
|
Operations
|
||||
|
Net Investment Income (Loss)
|
$7,079,634
|
$17,974,814
|
$708,282
|
$6,154,047
|
|
Net Realized Gain (Loss) on Investments,
Foreign Currency Transactions and Forward
Currency Contracts
|
47,591,962
|
(3,200,924
)
|
17,628,008
|
5,421,740
|
|
Change in Net Unrealized Appreciation
(Depreciation) on Investments, Foreign
Currency Translations and Forward Currency
Contracts
|
7,616,825
|
89,419,836
|
(6,370,769
)
|
15,826,073
|
|
Net Increase (Decrease) in Net Assets from
Operations
|
62,288,421
|
104,193,726
|
11,965,521
|
27,401,860
|
|
Distributions to Shareholders
|
||||
|
Investor Class
|
(304,378
)
|
-
|
(2,267,487
)
|
(580,195
)
|
|
Institutional Class
|
(7,394,652
)
|
-
|
(11,120,137
)
|
(8,547,814
)
|
|
Total Distributions
|
(7,699,030
)
|
-
|
(13,387,624
)
|
(9,128,009
)
|
|
Share Transactions
|
||||
|
Value of Shares Issued
|
||||
|
Investor Class
|
2,216,635
|
8,325,478
|
2,074,686
|
2,007,385
|
|
Institutional Class
|
11,977,336
|
54,976,147
|
3,089,758
|
25,812,300
|
|
Value of Shares Issued in Reinvestment of
Dividends and Distributions
|
||||
|
Investor Class
|
280,699
|
-
|
2,010,770
|
508,725
|
|
Institutional Class
|
7,098,155
|
-
|
10,712,341
|
8,430,299
|
|
Value of Shares Redeemed
|
||||
|
Investor Class
|
(5,155,054
)
|
(15,219,013
)
|
(4,294,092
)
|
(1,521,455
)
|
|
Institutional Class
|
(391,626,242
)
|
(192,544,647
)
|
(45,030,274
)
|
(122,188,656
)
|
|
Net Increase (Decrease) in Net Assets from
Share Transactions
|
(375,208,471
)
|
(144,462,035
)
|
(31,436,811
)
|
(86,951,402
)
|
|
Total Increase (Decrease) in Net Assets
|
(320,619,080
)
|
(40,268,309
)
|
(32,858,914
)
|
(68,677,551
)
|
|
Net Assets
|
||||
|
Beginning of Year
|
561,463,867
|
601,732,176
|
90,399,205
|
159,076,756
|
|
End of Year
|
$240,844,787
|
$561,463,867
|
$57,540,291
|
$90,399,205
|
|
Capital Share Transactions
|
||||
|
Investor Shares
|
||||
|
Shares Sold
|
153,870
|
619,026
|
127,861
|
116,780
|
|
Shares Issued to Holders in Reinvestment of
Dividends and Distributions
|
20,079
|
-
|
129,772
|
31,024
|
|
Shares Redeemed
|
(361,923
)
|
(1,116,891
)
|
(270,217
)
|
(87,988
)
|
|
Net Increase (Decrease)
|
(187,974
)
|
(497,865
)
|
(12,584
)
|
59,816
|
|
Institutional Shares
|
||||
|
Shares Sold
|
857,938
|
4,190,135
|
193,772
|
1,631,875
|
|
Shares Issued to Holders in Reinvestment of
Dividends and Distributions
|
518,871
|
-
|
717,868
|
531,943
|
|
Shares Redeemed
|
(28,247,448
)
|
(14,542,219
)
|
(2,878,840
)
|
(7,334,814
)
|
|
Net Increase (Decrease)
|
(26,870,639
)
|
(10,352,084
)
|
(1,967,200
)
|
(5,170,996
)
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Financial Highlights
For a Share Outstanding Throughout Each Year
|
|
Year Ended September 30
|
||||
|
Ariel Fund
(Investor Class)
|
2024
|
2023
|
2022
|
2021
|
2020
|
|
Net Asset Value, Beginning of Year
|
$63.65
|
$60.46
|
$85.09
|
$54.40
|
$63.40
|
|
Income from Investment Operations
|
|||||
|
Net Investment Income (Loss)
|
0.25
|
0.33
|
0.39
|
(0.04
)
|
0.50
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
16.44
|
8.47
|
(20.38
)
|
34.33
|
(5.72
)
|
|
Total from Investment Operations
|
16.69
|
8.80
|
(19.99
)
|
34.29
|
(5.22
)
|
|
Distributions to Shareholders
|
|||||
|
Dividends from Net Investment Income
|
(0.29
)
|
(0.27
)
|
(0.03
)
|
(0.20
)
|
(0.55
)
|
|
Distributions from Capital Gains
|
(3.19
)
|
(5.34
)
|
(4.61
)
|
(3.40
)
|
(3.23
)
|
|
Total Distributions
|
(3.48
)
|
(5.61
)
|
(4.64
)
|
(3.60
)
|
(3.78
)
|
|
Net Asset Value, End of Year
|
$76.86
|
$63.65
|
$60.46
|
$85.09
|
$54.40
|
|
Total Return
|
27.63%
|
14.56%
|
(25.05
)%
|
65.59%
|
(9.03
)%
|
|
Supplemental Data and Ratios
|
|||||
|
Net Assets, End of Year, in Thousands
|
$1,256,282
|
$1,144,615
|
$1,110,849
|
$1,778,696
|
$995,861
|
|
Ratios to Average Net Assets:
|
|||||
|
Expenses
|
1.00%
|
0.99%
|
0.98%
|
1.00%
|
1.04%
|
|
Net Investment Income
|
0.19%
|
0.47%
|
0.31%
|
0.15%
|
0.70%
|
|
Portfolio Turnover Rate
|
17%
|
20%
|
33%
|
24%
|
23%
|
|
|
Year Ended September 30
|
||||
|
Ariel Fund
(Institutional Class)
|
2024
|
2023
|
2022
|
2021
|
2020
|
|
Net Asset Value, Beginning of Year
|
$63.82
|
$60.64
|
$85.34
|
$54.53
|
$63.55
|
|
Income from Investment Operations
|
|||||
|
Net Investment Income (Loss)
|
0.37
|
0.47
|
0.38
|
0.25
|
0.58
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
16.57
|
8.55
|
(20.17
)
|
34.34
|
(5.62
)
|
|
Total from Investment Operations
|
16.94
|
9.02
|
(19.79
)
|
34.59
|
(5.04
)
|
|
Distributions to Shareholders
|
|||||
|
Dividends from Net Investment Income
|
(0.49
)
|
(0.50
)
|
(0.30
)
|
(0.38
)
|
(0.75
)
|
|
Distributions from Capital Gains
|
(3.19
)
|
(5.34
)
|
(4.61
)
|
(3.40
)
|
(3.23
)
|
|
Total Distributions
|
(3.68
)
|
(5.84
)
|
(4.91
)
|
(3.78
)
|
(3.98
)
|
|
Net Asset Value, End of Year
|
$77.08
|
$63.82
|
$60.64
|
$85.34
|
$54.53
|
|
Total Return
|
28.01%
|
14.91%
|
(24.82
)%
|
66.12%
|
(8.74
)%
|
|
Supplemental Data and Ratios
|
|||||
|
Net Assets, End of Year, in Thousands
|
$1,531,274
|
$1,405,672
|
$1,208,385
|
$1,273,796
|
$596,645
|
|
Ratios to Average Net Assets:
|
|||||
|
Expenses
|
0.69%
|
0.68%
|
0.67%
|
0.69%
|
0.72%
|
|
Net Investment Income
|
0.51%
|
0.77%
|
0.65%
|
0.45%
|
1.01%
|
|
Portfolio Turnover Rate
|
17%
|
20%
|
33%
|
24%
|
23%
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
19
Financial Highlights
For a Share Outstanding Throughout Each Year
|
|
Year Ended September 30
|
||||
|
Ariel Appreciation Fund
(Investor Class)
|
2024
|
2023
|
2022
|
2021
|
2020
|
|
Net Asset Value, Beginning of Year
|
$37.82
|
$36.32
|
$50.93
|
$38.76
|
$44.43
|
|
Income from Investment Operations
|
|||||
|
Net Investment Income (Loss)
|
0.26
|
0.33
|
0.06
|
0.12
|
0.48
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
6.22
|
5.15
|
(7.89
)
|
16.31
|
(2.77
)
|
|
Total from Investment Operations
|
6.48
|
5.48
|
(7.83
)
|
16.43
|
(2.29
)
|
|
Distributions to Shareholders
|
|||||
|
Dividends from Net Investment Income
|
(0.32
)
|
(0.25
)
|
(0.21
)
|
(0.24
)
|
(0.42
)
|
|
Distributions from Capital Gains
|
(2.15
)
|
(3.73
)
|
(6.57
)
|
(4.02
)
|
(2.96
)
|
|
Total Distributions
|
(2.47
)
|
(3.98
)
|
(6.78
)
|
(4.26
)
|
(3.38
)
|
|
Net Asset Value, End of Year
|
$41.83
|
$37.82
|
$36.32
|
$50.93
|
$38.76
|
|
Total Return
|
18.31%
|
14.95%
|
(18.50
)%
|
45.27%
|
(5.93
)%
|
|
Supplemental Data and Ratios
|
|||||
|
Net Assets, End of Year, in Thousands
|
$813,234
|
$794,113
|
$838,963
|
$1,101,184
|
$777,404
|
|
Ratios to Average Net Assets:
|
|||||
|
Expenses
|
1.14%
|
1.12%
|
1.10%
|
1.12%
|
1.15%
|
|
Net Investment Income
|
0.53%
|
0.64%
|
0.57%
|
0.55%
|
0.98%
|
|
Portfolio Turnover Rate
|
17%
|
17%
|
26%
|
24%
|
24%
|
|
|
Year Ended September 30
|
||||
|
Ariel Appreciation Fund
(Institutional Class)
|
2024
|
2023
|
2022
|
2021
|
2020
|
|
Net Asset Value, Beginning of Year
|
$37.99
|
$36.47
|
$51.10
|
$38.86
|
$44.55
|
|
Income from Investment Operations
|
|||||
|
Net Investment Income (Loss)
|
0.35
|
0.31
|
0.29
|
0.36
|
0.60
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
6.27
|
5.32
|
(8.00
)
|
16.26
|
(2.77
)
|
|
Total from Investment Operations
|
6.62
|
5.63
|
(7.71
)
|
16.62
|
(2.17
)
|
|
Distributions to Shareholders
|
|||||
|
Dividends from Net Investment Income
|
(0.45
)
|
(0.38
)
|
(0.35
)
|
(0.36
)
|
(0.56
)
|
|
Distributions from Capital Gains
|
(2.15
)
|
(3.73
)
|
(6.57
)
|
(4.02
)
|
(2.96
)
|
|
Total Distributions
|
(2.60
)
|
(4.11
)
|
(6.92
)
|
(4.38
)
|
(3.52
)
|
|
Net Asset Value, End of Year
|
$42.01
|
$37.99
|
$36.47
|
$51.10
|
$38.86
|
|
Total Return
|
18.64%
|
15.32%
|
(18.24
)%
|
45.74%
|
(5.65
)%
|
|
Supplemental Data and Ratios
|
|||||
|
Net Assets, End of Year, in Thousands
|
$198,316
|
$223,943
|
$175,831
|
$267,375
|
$196,009
|
|
Ratios to Average Net Assets:
|
|||||
|
Expenses
|
0.83%
|
0.81%
|
0.79%
|
0.81%
|
0.84%
|
|
Net Investment Income
|
0.84%
|
0.96%
|
0.87%
|
0.87%
|
1.26%
|
|
Portfolio Turnover Rate
|
17%
|
17%
|
26%
|
24%
|
24%
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Financial Highlights
For a Share Outstanding Throughout Each Year
|
|
Year Ended September 30
|
||||
|
Ariel Focus Fund
(Investor Class)
|
2024
|
2023
|
2022
|
2021
|
2020
|
|
Net Asset Value, Beginning of Year
|
$13.62
|
$13.67
|
$16.60
|
$12.13
|
$12.89
|
|
Income from Investment Operations
|
|||||
|
Net Investment Income (Loss)
|
0.17
|
0.19
|
0.13
|
0.16
|
0.18
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
3.48
|
0.93
|
(2.50
)
|
4.65
|
(0.80
)
|
|
Total from Investment Operations
|
3.65
|
1.12
|
(2.37
)
|
4.81
|
(0.62
)
|
|
Distributions to Shareholders
|
|||||
|
Dividends from Net Investment Income
|
(0.22
)
|
(0.16
)
|
(0.14
)
|
(0.12
)
|
(0.14
)
|
|
Distributions from Capital Gains
|
(0.26
)
|
(1.01
)
|
(0.42
)
|
(0.22
)
|
-
|
|
Total Distributions
|
(0.48
)
|
(1.17
)
|
(0.56
)
|
(0.34
)
|
(0.14
)
|
|
Net Asset Value, End of Year
|
$16.79
|
$13.62
|
$13.67
|
$16.60
|
$12.13
|
|
Total Return
|
27.54%
|
7.83%
|
(14.91
)%
|
40.39%
|
(4.91
)%
|
|
Supplemental Data and Ratios
|
|||||
|
Net Assets, End of Year, in Thousands
|
$45,632
|
$40,907
|
$40,429
|
$43,721
|
$31,852
|
|
Ratios to Average Net Assets:
|
|||||
|
Expenses, Including Waivers
|
1.00%
|
1.00%
|
1.00%
|
1.00%
|
1.00%
|
|
Expenses, Excluding Waivers
|
1.18%
|
1.16%
|
1.13%
|
1.20%
|
1.25%
|
|
Net Investment Income, Including Waivers
|
1.15%
|
1.31%
|
0.91%
|
0.92%
|
1.23%
|
|
Net Investment Income, Excluding Waivers
|
0.97%
|
1.15%
|
0.78%
|
0.72%
|
0.98%
|
|
Portfolio Turnover Rate
|
19%
|
17%
|
33%
|
63%
|
22%
|
|
|
Year Ended September 30
|
||||
|
Ariel Focus Fund
(Institutional Class)
|
2024
|
2023
|
2022
|
2021
|
2020
|
|
Net Asset Value, Beginning of Year
|
$13.66
|
$13.70
|
$16.63
|
$12.14
|
$12.89
|
|
Income from Investment Operations
|
|||||
|
Net Investment Income (Loss)
|
0.21
|
0.21
|
0.18
|
0.18
|
0.19
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
3.49
|
0.96
|
(2.52
)
|
4.67
|
(0.78
)
|
|
Total from Investment Operations
|
3.70
|
1.17
|
(2.34
)
|
4.85
|
(0.59
)
|
|
Distributions to Shareholders
|
|||||
|
Dividends from Net Investment Income
|
(0.25
)
|
(0.20
)
|
(0.17
)
|
(0.14
)
|
(0.16
)
|
|
Distributions from Capital Gains
|
(0.26
)
|
(1.01
)
|
(0.42
)
|
(0.22
)
|
-
|
|
Total Distributions
|
(0.51
)
|
(1.21
)
|
(0.59
)
|
(0.36
)
|
(0.16
)
|
|
Net Asset Value, End of Year
|
$16.85
|
$13.66
|
$13.70
|
$16.63
|
$12.14
|
|
Total Return
|
27.93%
|
8.05%
|
(14.72
)%
|
40.73%
|
(4.69
)%
|
|
Supplemental Data and Ratios
|
|||||
|
Net Assets, End of Year, in Thousands
|
$21,978
|
$20,500
|
$16,147
|
$17,835
|
$12,732
|
|
Ratios to Average Net Assets:
|
|||||
|
Expenses, Including Waivers
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
0.75%
|
|
Expenses, Excluding Waivers
|
0.87%
|
0.86%
|
0.85%
|
0.86%
|
0.89%
|
|
Net Investment Income, Including Waivers
|
1.38%
|
1.57%
|
1.17%
|
1.14%
|
1.47%
|
|
Net Investment Income, Excluding Waivers
|
1.26%
|
1.46%
|
1.07%
|
1.03%
|
1.33%
|
|
Portfolio Turnover Rate
|
19%
|
17%
|
33%
|
63%
|
22%
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
21
Financial Highlights
For a Share Outstanding Throughout Each Year
|
|
Year Ended September 30
|
||||
|
Ariel International Fund
(Investor Class)
|
2024
|
2023
|
2022
|
2021
|
2020
|
|
Net Asset Value, Beginning of Year
|
$13.43
|
$11.50
|
$14.69
|
$13.68
|
$13.42
|
|
Income from Investment Operations
|
|||||
|
Net Investment Income (Loss)
|
0.51
|
0.68
|
0.14
|
0.36
|
0.36
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
2.09
|
1.25
|
(2.95
)
|
0.86
|
0.12
|
|
Total from Investment Operations
|
2.60
|
1.93
|
(2.81
)
|
1.22
|
0.48
|
|
Distributions to Shareholders
|
|||||
|
Dividends from Net Investment Income
|
(0.23
)
|
-
|
(0.38
)
|
(0.21
)
|
(0.22
)
|
|
Total Distributions
|
(0.23
)
|
-
|
(0.38
)
|
(0.21
)
|
(0.22
)
|
|
Net Asset Value, End of Year
|
$15.80
|
$13.43
|
$11.50
|
$14.69
|
$13.68
|
|
Total Return
|
19.60%
|
16.78%
|
(19.70
)%
|
9.00%
|
3.57%
|
|
Supplemental Data and Ratios
|
|||||
|
Net Assets, End of Year, in Thousands
|
$19,237
|
$18,879
|
$21,887
|
$23,717
|
$21,877
|
|
Ratios to Average Net Assets:
|
|||||
|
Expenses, Including Waivers
|
1.17%
(a)
|
1.13%
|
1.13%
|
1.13%
|
1.13%
|
|
Expenses, Excluding Waivers
|
1.40%
|
1.28%
|
1.28%
|
1.30%
|
1.33%
|
|
Net Investment Income, Including Waivers
|
2.16%
|
2.40%
|
2.27%
|
2.41%
|
1.69%
|
|
Net Investment Income, Excluding Waivers
|
1.93%
|
2.25%
|
2.12%
|
2.24%
|
1.49%
|
|
Portfolio Turnover Rate
|
69%
|
17%
|
20%
|
22%
|
24%
|
|
|
Year Ended September 30
|
||||
|
Ariel International Fund
(Institutional Class)
|
2024
|
2023
|
2022
|
2021
|
2020
|
|
Net Asset Value, Beginning of Year
|
$13.18
|
$11.25
|
$14.38
|
$13.39
|
$13.18
|
|
Income from Investment Operations
|
|||||
|
Net Investment Income (Loss)
|
0.77
|
0.40
|
0.41
|
0.34
|
0.29
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
1.81
|
1.53
|
(3.13
)
|
0.89
|
0.20
|
|
Total from Investment Operations
|
2.58
|
1.93
|
(2.72
)
|
1.23
|
0.49
|
|
Distributions to Shareholders
|
|||||
|
Dividends from Net Investment Income
|
(0.27
)
|
-
|
(0.41
)
|
(0.24
)
|
(0.28
)
|
|
Total Distributions
|
(0.27
)
|
-
|
(0.41
)
|
(0.24
)
|
(0.28
)
|
|
Net Asset Value, End of Year
|
$15.49
|
$13.18
|
$11.25
|
$14.38
|
$13.39
|
|
Total Return
|
19.86%
|
17.16%
|
(19.51
)%
|
9.26%
|
3.74%
|
|
Supplemental Data and Ratios
|
|||||
|
Net Assets, End of Year, in Thousands
|
$221,608
|
$542,585
|
$579,845
|
$837,624
|
$599,770
|
|
Ratios to Average Net Assets:
|
|||||
|
Expenses, Including Waivers
|
0.91%
(a)
|
0.88%
|
0.88%
|
0.88%
|
0.88%
|
|
Expenses, Excluding Waivers
|
1.01%
|
0.92%
|
0.93%
|
0.93%
|
0.96%
|
|
Net Investment Income, Including Waivers
|
2.09%
|
2.61%
|
2.53%
|
2.75%
|
1.98%
|
|
Net Investment Income, Excluding Waivers
|
1.99%
|
2.57%
|
2.48%
|
2.70%
|
1.90%
|
|
Portfolio Turnover Rate
|
69%
|
17%
|
20%
|
22%
|
24%
|
|
(a)
|
Expense ratio exceeds the expense cap due to the impact of certain expenses which are excluded from the expense cap.
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
Financial Highlights
For a Share Outstanding Throughout Each Year
|
|
Year Ended September 30
|
||||
|
Ariel Global Fund
(Investor Class)
|
2024
|
2023
|
2022
|
2021
|
2020
|
|
Net Asset Value, Beginning of Year
|
$17.17
|
$15.57
|
$17.65
|
$15.36
|
$15.40
|
|
Income from Investment Operations
|
|||||
|
Net Investment Income (Loss)
|
0.03
|
0.49
|
0.34
|
0.31
|
0.27
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
2.93
|
1.91
|
(2.05
)
|
2.12
|
0.38
|
|
Total from Investment Operations
|
2.96
|
2.40
|
(1.71
)
|
2.43
|
0.65
|
|
Distributions to Shareholders
|
|||||
|
Dividends from Net Investment Income
|
(0.89
)
|
(0.73
)
|
(0.37
)
|
(0.14
)
|
(0.31
)
|
|
Distributions from Capital Gains
|
(1.98
)
|
(0.07
)
|
-
|
-
|
(0.38
)
|
|
Total Distributions
|
(2.87
)
|
(0.80
)
|
(0.37
)
|
(0.14
)
|
(0.69
)
|
|
Net Asset Value, End of Year
|
$17.26
|
$17.17
|
$15.57
|
$17.65
|
$15.36
|
|
Total Return
|
19.89%
|
15.64%
|
(9.99
)%
|
15.91%
|
4.23%
|
|
Supplemental Data and Ratios
|
|||||
|
Net Assets, End of Year, in Thousands
|
$12,766
|
$12,920
|
$10,781
|
$12,053
|
$10,733
|
|
Ratios to Average Net Assets:
|
|||||
|
Expenses, Including Waivers
|
1.14%
|
1.15%
|
1.13%
|
1.13%
|
1.13%
|
|
Expenses, Excluding Waivers
|
1.53%
|
1.37%
|
1.30%
|
1.36%
|
1.46%
|
|
Net Investment Income, Including Waivers
|
0.93%
|
3.13%
|
1.93%
|
1.73%
|
1.61%
|
|
Net Investment Income, Excluding Waivers
|
0.54%
|
2.90%
|
1.76%
|
1.50%
|
1.28%
|
|
Portfolio Turnover Rate
|
78%
|
31%
|
19%
|
24%
|
23%
|
|
|
Year Ended September 30
|
||||
|
Ariel Global Fund
(Institutional Class)
|
2024
|
2023
|
2022
|
2021
|
2020
|
|
Net Asset Value, Beginning of Year
|
$16.62
|
$15.08
|
$17.11
|
$14.87
|
$14.92
|
|
Income from Investment Operations
|
|||||
|
Net Investment Income (Loss)
|
0.08
|
1.07
|
0.43
|
0.25
|
0.21
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
2.80
|
1.30
|
(2.05
)
|
2.15
|
0.45
|
|
Total from Investment Operations
|
2.88
|
2.37
|
(1.62
)
|
2.40
|
0.66
|
|
Distributions to Shareholders
|
|||||
|
Dividends from Net Investment Income
|
(0.91
)
|
(0.76
)
|
(0.41
)
|
(0.16
)
|
(0.33
)
|
|
Distributions from Capital Gains
|
(1.98
)
|
(0.07
)
|
-
|
-
|
(0.38
)
|
|
Total Distributions
|
(2.89
)
|
(0.83
)
|
(0.41
)
|
(0.16
)
|
(0.71
)
|
|
Net Asset Value, End of Year
|
$16.61
|
$16.62
|
$15.08
|
$17.11
|
$14.87
|
|
Total Return
|
20.14%
|
15.99%
|
(9.81
)%
|
16.26%
|
4.48%
|
|
Supplemental Data and Ratios
|
|||||
|
Net Assets, End of Year, in Thousands
|
$44,774
|
$77,479
|
$148,296
|
$197,299
|
$95,229
|
|
Ratios to Average Net Assets:
|
|||||
|
Expenses, Including Waivers
|
0.89%
|
0.89%
|
0.88%
|
0.88%
|
0.88%
|
|
Expenses, Excluding Waivers
|
1.14%
|
0.97%
|
0.94%
|
0.95%
|
1.01%
|
|
Net Investment Income, Including Waivers
|
1.16%
|
3.48%
|
2.21%
|
2.16%
|
1.93%
|
|
Net Investment Income, Excluding Waivers
|
0.91%
|
3.40%
|
2.15%
|
2.09%
|
1.80%
|
|
Portfolio Turnover Rate
|
78%
|
31%
|
19%
|
24%
|
23%
|
The accompanying notes are an integral part of the financial statements.
SLOW AND STEADY WINS THE RACE
23
Notes to the Financial Statements
As of September 30, 2024
NOTE One | ORGANIZATION
Ariel Investment Trust (the "Trust") is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. Ariel Fund, Ariel Appreciation Fund, Ariel Focus Fund, Ariel International Fund and Ariel Global Fund (each, a "Fund" and collectively, the "Funds") are series of the Trust. Ariel Focus Fund is a non-diversified Fund, all other Funds are diversified. The Funds issue two classes of shares: an Investor Class and an Institutional Class.
The Northern Trust Company ("Northern Trust") provides fund administration and tax reporting services for the Funds in its role as sub-fund administrator engaged by Ariel Investments, LLC (the "Adviser" or "Ariel") for Ariel Fund, Ariel Appreciation Fund and Ariel Focus Fund and as fund administrator engaged by the Trust for Ariel International Fund and Ariel Global Fund. Northern Trust also acts as the Funds' accounting agent and custodian. U.S. Bank Global Fund Services serves as the Funds' transfer agent.
NOTE Two | SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The Funds are investment companies and follow accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards CodificationTMTopic 946 (ASC 946).
Securities valuation-Investments for which market quotations are readily available are valued at the closing price on the national securities exchange or market on which such investments are primarily traded and, in the case of securities reported on the Nasdaq system, at the Nasdaq Official Closing Price. The closing price provided by the pricing vendor for an exchange may differ from the price quoted elsewhere and may represent information such as last sales price, an official closing price, a closing auction price or other information, depending on exchange or market convention. If a closing price is not reported on the national securities exchange or market on which such investments are primarily traded, an investment shall be valued using: (i) the closing price on another exchange on which the investment traded (if such price is made available by the Funds' pricing agent) or (ii) investments for which reliable bid and ask quotations are available are valued at the mean between bid and ask prices. Short-term debt maturing in 60 days or less is valued at evaluated bid prices. Securities and assets for which market quotations are not readily available for any security, a fair value of such security will be determined in good faith by the Adviser, as the Board's Valuation Designee, under procedures adopted and periodically reviewed by the Board and monitored by the Adviser's Valuation Committee. Certain common stocks that trade on foreign exchanges are subject to valuation adjustments to account for the market movement between the close of a foreign market in which the security is traded and the close of the New York Stock Exchange. Such prices are provided by approved pricing vendors or other independent pricing sources.
Securities transactions and investment income-Securities transactions are accounted for on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date and interest income is recognized on an accrual basis. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available. Non-cash dividends are recorded as investment income at the fair value of the assets received.
Subsequent events-In preparing these financial statements, the Trust has evaluated subsequent events occurring after September 30, 2024 through the date the financial statements were issued and determined that there were no such events that would require adjustment to or additional disclosure in these financial statements.
Fair value measurements-Accounting Standards CodificationTMTopic 820-10 (ASC 820-10) establishes a three-tier framework for measuring fair value based on a hierarchy of inputs. The hierarchy distinguishes between market data obtained from independent sources (observable inputs) and the Funds' own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds' investments and are summarized below:
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, "quoted" prices in inactive markets, dealer indications, and inputs corroborated by observable market data)
Level 3 - significant unobservable inputs (including the Funds' own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
SLOW AND STEADY WINS THE RACE
Notes to the Financial Statements
As of September 30, 2024
The following tables summarize the inputs used as of September 30, 2024 in valuing the Funds' investments carried at fair value:
|
|
Ariel Fund
|
Ariel Appreciation
Fund
|
Ariel Focus Fund
|
|
Level 1
|
$2,779,322,462
|
$1,011,546,843
|
$67,611,424
|
|
Level 2
|
-
|
-
|
-
|
|
Level 3
|
-
|
-
|
-
|
|
Total Investments
|
$2,779,322,462
|
$1,011,546,843
|
$67,611,424
|
Industry classifications for Ariel Fund, Ariel Appreciation Fund, and Ariel Focus Fund are included in the Schedules of Investments for the respective Fund.
|
Ariel International Fund
|
Level 1
|
Level 2*
|
Level 3
|
Total
|
|
Common Stocks
|
||||
|
Communication Services
|
$4,799,522
|
$-
|
$-
|
$4,799,522
|
|
Consumer Discretionary
|
57,294,450
|
-
|
-
|
57,294,450
|
|
Consumer Staples
|
11,768,874
|
-
|
-
|
11,768,874
|
|
Energy
|
1,829,792
|
-
|
-
|
1,829,792
|
|
Financials
|
52,348,114
|
-
|
-
|
52,348,114
|
|
Health Care
|
30,254,548
|
-
|
-
|
30,254,548
|
|
Industrials
|
23,143,389
|
-
|
-
|
23,143,389
|
|
Information Technology
|
29,152,514
|
-
|
-
|
29,152,514
|
|
Real Estate
|
2,434,452
|
-
|
-
|
2,434,452
|
|
Utilities
|
22,329,586
|
-
|
-
|
22,329,586
|
|
Total Common Stocks
|
$235,355,241
|
$-
|
$-
|
$235,355,241
|
|
Short-Term Investments
|
920,970
|
-
|
-
|
920,970
|
|
Total Investments
|
$236,276,211
|
$-
|
$-
|
$236,276,211
|
|
Other Financial Instruments
|
||||
|
Forward Currency Contracts^
|
$-
|
$284,245
|
$-
|
$284,245
|
|
Ariel Global Fund
|
Level 1
|
Level 2*
|
Level 3
|
Total
|
|
Common Stocks
|
||||
|
Communication Services
|
$3,377,330
|
$-
|
$-
|
$3,377,330
|
|
Consumer Discretionary
|
12,122,345
|
-
|
-
|
12,122,345
|
|
Consumer Staples
|
988,650
|
-
|
-
|
988,650
|
|
Financials
|
11,857,998
|
-
|
-
|
11,857,998
|
|
Health Care
|
8,488,886
|
-
|
-
|
8,488,886
|
|
Industrials
|
3,836,177
|
-
|
-
|
3,836,177
|
|
Information Technology
|
13,140,573
|
-
|
-
|
13,140,573
|
|
Real Estate
|
672,328
|
-
|
-
|
672,328
|
|
Utilities
|
2,249,958
|
-
|
-
|
2,249,958
|
|
Total Common Stocks
|
$56,734,245
|
$-
|
$-
|
$56,734,245
|
|
Short-Term Investments
|
214,505
|
-
|
-
|
214,505
|
|
Total Investments
|
$56,948,750
|
$-
|
$-
|
$56,948,750
|
|
Other Financial Instruments
|
||||
|
Forward Currency Contracts^
|
$-
|
$36,566
|
$-
|
$36,566
|
|
*
|
As of September 30, 2024, the Level 2 investments held were forward currency contracts. See Schedules of Investments.
|
|
^
|
Forward currency contracts derive their value from underlying exchange rates. These instruments are normally valued by pricing vendors using pricing models. The pricing models typically
use inputs that are observed from trading in active forward foreign currency markets. As such, forward currency contracts are categorized as Level 2. The value of forward currency contracts
that is disclosed in this table is equal to the difference between Open forward currency contracts with unrealized appreciation and Open forward currency contracts with unrealized
depreciation shown in the Schedules of Investments.
|
SLOW AND STEADY WINS THE RACE
25
Notes to the Financial Statements
As of September 30, 2024
Offsetting assets and liabilities-The Funds are subject to various master netting agreements ("Master Netting Agreements") that govern the terms of certain transactions with select counterparties. Master Netting Agreements seek to reduce the counterparty risk associated with relevant transactions by allowing the Funds to close out and net their total exposure to a counterparty in the event of a default by the other party or a termination event. Termination events include, but are not limited to, a failure to pay or deliver or a breach of the terms of the agreement with respect to transactions governed under a single agreement with that counterparty. The Master Netting Agreements may also specify collateral posting arrangements at pre-arranged exposure levels. The Funds are not currently collateralizing their exposures related to foreign exchange trades. For financial reporting purposes, the Funds do not offset financial assets and liabilities that are subject to the Master Netting Agreements in the Statements of Assets and Liabilities. Gross exposure relating to open forward currency contracts by counterparty is disclosed in the Schedules of Investments as open forward currency contracts with unrealized appreciation (assets) and open forward currency contracts with unrealized depreciation (liabilities) and in total by Fund on the Statements of Assets and Liabilities as unrealized appreciation on forward currency contracts (assets) and unrealized depreciation on forward currency contracts (liabilities). The net recognized asset (appreciation) or liability (depreciation) is shown in the Schedules of Investments as net unrealized appreciation (depreciation) on forward currency contracts.
Foreign currency-Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars on a daily basis using exchange rates obtained from an independent third party. Net realized gain (loss) and net unrealized appreciation (depreciation) on investments include the effects of changes in exchange rates on the underlying investments. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are included as distributable earnings on the Statements of Assets and Liabilities until the underlying assets or liabilities are settled in cash, at which time they are recorded as net realized gain (loss) on foreign currency transactions on the Statements of Operations.
Forward currency contracts-Ariel International Fund and Ariel Global Fund use forward currency contracts in a strategy designed to reduce tracking error versus their respective benchmarks. The primary risk associated with a Fund's use of these contracts is that a counterparty will fail to fulfill its obligation to pay gains due to the Fund under the contracts. This counterparty risk is mitigated by entering into forward currency contracts only with highly rated counterparties. Forward currency contracts are "marked-to-market" daily, and as noted above, any resulting unrealized gain (loss) is recorded as net unrealized appreciation (depreciation) on forward currency contracts as disclosed in the Schedules of Investments and in the Statements of Assets and Liabilities as a component of distributable earnings. The Funds record realized gain (loss) when a forward currency contract is settled or closed and disclose such realized gain (loss) on the Statements of Operations as net realized gain (loss) on forward currency contracts.
Class and expense allocations-Each class of shares of the Funds has equal rights as to assets and earnings, except that shareholders of each class bear certain class-specific expenses related to marketing and distribution and shareholder servicing and communication. Income, other non-class-specific expense, and realized and unrealized gains and losses on investments are allocated to each class of shares based on its relative net assets. Expenses that are not directly attributable to one or more Funds are allocated among applicable Funds on an equitable and consistent basis considering such things as the nature and type of expense and the relative net assets of the Funds.
Ariel Fund, Ariel Appreciation Fund and Ariel Focus Fund pay all operating expenses not expressly assumed by the Adviser, including custodial and transfer agency fees, federal and state securities registration fees, legal and audit fees, and brokerage commissions and other costs associated with the purchase and sale of portfolio securities. Ariel International Fund and Ariel Global Fund pay all operating expenses not expressly assumed by the Adviser, including custodial and transfer agency fees, fund administration, fund accounting, federal and state securities registration fees, legal and audit fees, and brokerage commissions and other costs associated with the purchase and sale of portfolio securities.
Distributions to shareholders-Dividends from net investment income and net realized capital gains, if any, are declared and paid to shareholders at least annually and are recorded on ex-dividend date.
Use of Estimates-The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
NOTE Three | INVESTMENT TRANSACTIONS
Purchases and sales-Cost of purchases and proceeds from sales of securities, excluding short-term investments, for the year ended September 30, 2024 were as follows:
|
|
Ariel Fund
|
Ariel
Appreciation
Fund
|
Ariel Focus Fund
|
Ariel
International
Fund
|
Ariel Global Fund
|
|
Purchases
|
$450,427,056
|
$170,035,046
|
$12,435,604
|
$231,297,332
|
$49,812,112
|
|
Sales
|
838,737,925
|
313,394,918
|
20,492,480
|
604,248,638
|
90,914,317
|
SLOW AND STEADY WINS THE RACE
Notes to the Financial Statements
As of September 30, 2024
NOTE Four | INCOME TAX MATTERS AND DISTRIBUTIONS TO SHAREHOLDERS
Income Tax Matters-It is the Funds' policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all taxable income to shareholders. The Funds file U.S. federal income tax returns in addition to any state and local tax returns that may be required. Management has analyzed the Funds' tax positions taken for all open federal income tax years (September 30, 2021 - 2024), and has concluded that no provision for federal income tax is required in the financial statements.
The cost and unrealized appreciation and depreciation of investments (including derivative instruments) on a federal income tax basis at September 30, 2024 were as follows:
|
|
Ariel Fund
|
Ariel
Appreciation
Fund
|
Ariel Focus Fund
|
Ariel
International
Fund
|
Ariel Global
Fund
|
|
Cost of investments
|
$1,991,580,890
|
$674,634,977
|
$48,300,617
|
$195,558,502
|
$45,239,041
|
|
Gross unrealized appreciation
|
875,654,351
|
353,362,491
|
20,297,401
|
45,942,666
|
13,496,235
|
|
Gross unrealized depreciation
|
(87,912,779
)
|
(16,450,625
)
|
(986,594
)
|
(5,224,957
)
|
(1,786,526
)
|
|
Net unrealized appreciation (depreciation)
|
$787,741,572
|
$336,911,866
|
$19,310,807
|
$40,717,709
|
$11,709,709
|
The difference between book basis and tax basis unrealized appreciation and depreciation is attributable primarily to the deferral of losses due to wash sales and prior period partnership adjustments.
Distributions -The tax character of distributions paid during the years ended September 30 was as follows:
|
|
Ariel Fund
|
Ariel Appreciation Fund
|
Ariel Focus Fund
|
|||
|
|
09/30/24
|
09/30/23
|
09/30/24
|
09/30/23
|
09/30/24
|
09/30/23
|
|
Distributions From
|
||||||
|
Ordinary Income
|
$29,811,258
|
$16,029,152
|
$14,710,755
|
$11,151,524
|
$1,068,821
|
$1,701,188
|
|
Long-Term Capital Gains
|
110,515,979
|
200,499,990
|
51,105,963
|
99,999,991
|
1,181,394
|
3,249,982
|
|
Total Distributions
|
$140,327,237
|
$216,529,142
|
$65,816,718
|
$111,151,515
|
$2,250,215
|
$4,951,170
|
|
|
Ariel International Fund
|
Ariel Global Fund
|
||
|
|
09/30/24
|
09/30/23
|
09/30/24
|
09/30/23
|
|
Distributions From
|
||||
|
Ordinary Income
|
$7,699,030
|
$-
|
$6,047,280
|
$8,417,998
|
|
Long-Term Capital Gains
|
-
|
-
|
7,340,344
|
710,011
|
|
Total Distributions
|
$7,699,030
|
$-
|
$13,387,624
|
$9,128,009
|
Reclassifications between net asset accounts are made at the end of the fiscal year for such differences that are permanent in nature. These differences are primarily due to merger adjustments, foreign currency, distribution reclassifications or the utilization of a portion of payments made to redeeming shareholders as a distribution for income tax purposes. Reclassifications recorded at September 30, 2024 were as follows:
|
|
Ariel Fund
|
Ariel
Appreciation
Fund
|
Ariel Focus Fund
|
Ariel
International
Fund
|
Ariel Global
Fund
|
|
Paid in Capital
|
$11,014,994
|
$4,748,992
|
$460
|
$-
|
$2,074,364
|
|
Undistributed Net Investment Income (Loss)
|
(22,680,059
)
|
(15,291,906
)
|
(26,392
)
|
(5,253,099
)
|
1,408,553
|
|
Accumulated Net Realized Gain (Loss)
|
11,665,065
|
10,542,914
|
25,932
|
5,253,099
|
(3,482,917
)
|
The components of accumulated earnings at September 30, 2024 on a federal income tax basis were as follows:
|
|
Ariel Fund
|
Ariel
Appreciation
Fund
|
Ariel Focus Fund
|
Ariel
International
Fund
|
Ariel Global
Fund
|
|
Undistributed
Ordinary Income
|
$6,633,493
|
$6,143,165
|
$408,653
|
$9,432,249
|
$1,798,362
|
SLOW AND STEADY WINS THE RACE
27
Notes to the Financial Statements
As of September 30, 2024
|
|
Ariel Fund
|
Ariel
Appreciation
Fund
|
Ariel Focus Fund
|
Ariel
International
Fund
|
Ariel Global
Fund
|
|
Undistributed Long-
Term Captial Gains
|
121,632,237
|
43,063,067
|
271,215
|
-
|
7,685,496
|
|
Tax Accumulated
Earnings
|
128,265,730
|
49,206,232
|
679,868
|
9,432,249
|
9,483,858
|
|
Accumulated Capital
and Other Losses
|
-
|
-
|
-
|
-
|
-
|
|
Unrealized
Appreciation
(Depreciation)
|
787,741,573
|
336,911,866
|
19,310,807
|
40,936,826
|
11,735,809
|
|
Total Accumulated
Earnings
|
$916,007,303
|
$386,118,098
|
$19,990,675
|
$50,369,075
|
$21,219,667
|
During the tax year ended September 30, 2024, the Ariel International Fund utilized $43,766,538 in capital loss carry-forwards.
On June 28, 2019, Ariel Fund acquired the assets of Ariel Discovery Fund through a tax free reorganization. Pursuant to IRS Code Sections 381 & 382, Ariel Fund is limited as to how much of Ariel Discovery Fund's capital loss carry-forward it can use to offset its net capital gains on an annual basis. The annual limitation available to Ariel Fund is $423,143. During the tax year ended September 30, 2024, the Ariel Fund utilized $423,143 of its capital loss carry-forward.
NOTE Five | INVESTMENT ADVISORY AND OTHER TRANSACTIONS WITH RELATED PARTIES
Management fees-The Adviser provides investment advisory and administrative services to Ariel Fund, Ariel Appreciation Fund and Ariel Focus Fund under a Management Agreement. The Adviser provides investment advisory services to Ariel International Fund and Ariel Global Fund under an Advisory Agreement (the Management Agreement and the Advisory Agreement, collectively, the "Agreements"). Pursuant to the Agreements, the Adviser is paid a monthly fee on average daily net assets at the annual rates shown below:
|
Management Fees
|
Ariel Fund
|
Ariel
Appreciation
Fund
|
Ariel Focus Fund
|
Ariel
International
Fund
|
Ariel Global
Fund
|
|
Average Daily Net Assets
|
|||||
|
First $500 Million
|
0.65%
|
0.75%
|
0.65%
|
0.80%
|
0.80%
|
|
Next $500 Million
|
0.60%
|
0.70%
|
0.60%
|
0.80%
|
0.80%
|
|
Over $1 Billion
|
0.55%
|
0.65%
|
0.55%
|
0.75%
|
0.75%
|
The Adviser has contractually agreed to reimburse the Funds to the extent their respective total annual operating expenses (excluding brokerage, interest, taxes, distribution plan expenses and extraordinary items) exceed certain limits as shown below:
|
|
Ariel Fund
|
Ariel Appreciation Fund
|
Ariel Focus Fund
|
|
|
|
Investor Class
|
Investor 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%
|
|
Expiration of waivers*
|
-
|
-
|
2025
|
2025
|
|
|
Ariel International Fund
|
Ariel Global Fund
|
||
|
|
Investor Class
|
Institutional Class
|
Investor Class
|
Institutional Class
|
|
On average daily net assets
|
1.13%
|
0.88%
|
1.13%
|
0.88%
|
|
Expiration of waivers*
|
2025
|
2025
|
2025
|
2025
|
* Through January 31, 2025. After this date, there is no assurance that such expenses will be limited. The Adviser has no right to recapture previously-waived fees.
SLOW AND STEADY WINS THE RACE
Notes to the Financial Statements
As of September 30, 2024
Distribution fees-Ariel Distributors, LLC is the Funds' distributor and principal underwriter (the "Distributor"). The Trust has adopted a plan of distribution under Rule 12b-1 of the 1940 Act for the Investor Class of the Funds. Under the plan, the Investor Class of each Fund pays 12b-1 distribution fees calculated at an annual rate of 0.25% of average daily net assets on a weekly basis to the Distributor for its services. For the year ended September 30, 2024, distribution fee expenses were as follows:
|
|
Ariel Fund
|
Ariel
Appreciation
Fund
|
Ariel Focus Fund
|
Ariel
International
Fund
|
Ariel Global
Fund
|
|
Paid to Distributor
|
$2,970,443
|
$1,990,934
|
$107,933
|
$46,566
|
$31,211
|
|
Paid to Broker/Dealers
|
$2,159,328
|
$1,369,682
|
$61,176
|
$34,008
|
$17,962
|
The remaining amounts were used by the Distributor to offset the costs of marketing, advertising, and other distribution expenses.
Trustees' fees-Trustees' fees and expenses represent only those expenses of disinterested (independent) trustees of the Funds.
NOTE Six | FORWARD CURRENCY CONTRACTS
Net realized gain (loss) and the change in net unrealized appreciation (depreciation) on forward currency contracts as reflected in the Statements of Operations as well as the volume of forward currency contracts measured by the number of trades during the year, and the average notional value of the forward currency contracts for the year ended September 30, 2024 were:
|
|
Ariel
International
Fund
|
Ariel Global
Fund
|
|
Net Realized Gain (Loss) on Forward Currency Contracts
|
$(6,941,593)
|
$1,569,258
|
|
Change in Net Unrealized Appreciation (Depreciation) on Forward Currency Contracts
|
$6,673,553
|
$(1,904,353
)
|
|
Volume of Forward Currency Contracts
|
77
|
53
|
|
Average Notional Value of Forward Currency Contracts
|
$8,012,865
|
$1,745,285
|
Complete lists of forward currency contracts open as of September 30, 2024 are included in the Schedules of Investments for the respective Fund.
Rule 18f-4 under the 1940 Act requires, among other things, that funds deemed to be full derivatives users under the rule limit derivatives exposure through a value-at-risk test and requires such funds to adopt and implement a derivatives risk management program that is reasonably designed to manage derivatives risk. Accordingly, the Ariel International Fund and Ariel Global Fund have adopted a derivatives risk management program that takes into account how each Fund's derivatives use affects its investment portfolio strategy, including whether derivatives are used to increase or decrease portfolio risks or facilitate efficient portfolio management.
SLOW AND STEADY WINS THE RACE
29
Notes to the Financial Statements
As of September 30, 2024
NOTE Seven | TRANSACTIONS WITH AFFILIATED COMPANIES
If a fund's holding represents ownership of 5% or more of the outstanding voting securities of a company, the company is deemed to be an affiliate of the fund as defined in the 1940 Act. The following transactions were made during the year ended September 30, 2024 in securities of a company deemed to be an affiliated company of the Funds as of September 30, 2024:
|
Security name
|
Shares Held
September 30, 2024
|
Market Value
September 30,
2023
|
Purchases
|
Sales
|
Net
realized
gain (loss)
|
Change in
unrealized
gain (loss)
|
Market Value
September 30, 2024
|
Dividend
Income
|
|
Ariel Fund
|
||||||||
|
Common Stocks - 8.91%
|
||||||||
|
Consumer Discretionary - 6.58%
|
||||||||
|
Adtalem Global Education, Inc.(a)^
|
1,366,142
|
$93,783,010
|
$14,454,769
|
$74,009,359
|
$34,724,939
|
$34,163,039
|
$103,116,398
|
$-
|
|
Leslie's, Inc.(a)
|
25,386,401
|
64,894,736
|
67,376,050
|
28,347,040
|
(24,875,108
)
|
1,172,389
|
80,221,027
|
-
|
|
|
$158,677,746
|
$81,830,819
|
$102,356,399
|
$9,849,831
|
$35,335,428
|
$183,337,425
|
$-
|
|
|
Energy - 2.33%
|
||||||||
|
Core Laboratories,
Inc.
|
3,505,349
|
70,305,482
|
8,800,658
|
-
|
-
|
(14,152,023
)
|
64,954,117
|
128,670
|
|
Total Common
Stocks
|
$228,983,228
|
$90,631,477
|
$102,356,399
|
$9,849,831
|
$21,183,405
|
$248,291,542
|
$128,670
|
|
(a)
|
Non-income producing.
|
|
^
|
This security is no longer deemed to be an affiliate of the Fund as of September 30, 2024.
|
NOTE Eight | LINE OF CREDIT
The Funds have a $125,000,000 Line of Credit (the "Line"), which is uncommitted, with Northern Trust. The Line is for temporary or emergency purposes such as to provide liquidity for shareholder redemptions. The Funds incur interest expense on any amounts drawn (borrowed) under the Line. The interest rate charged on borrowing is equal to the Federal Funds Effective Rate plus 1.00%. As of September 30, 2024, there were no outstanding borrowings under the Line.
Borrowings on the Line for the year ended September 30, 2024 are shown below:
|
Fund
|
Average daily
borrowings
|
Number of days
outstanding
|
Weighted average
annualized interest
rate
|
|
Ariel Fund
|
$2,113,571
|
4
|
6.33%
|
|
Ariel Focus Fund
|
374,239
|
1
|
6.33%
|
|
Ariel International Fund
|
9,042,238
|
70
|
6.33%
|
|
Ariel Global Fund
|
1,995,063
|
26
|
6.33%
|
SLOW AND STEADY WINS THE RACE
Report of Independent Registered Public Accounting Firm
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF ARIEL INVESTMENT TRUST:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Ariel Investment Trust, comprising the Ariel Fund, Ariel Appreciation Fund, Ariel Focus Fund, Ariel International Fund, and Ariel Global Fund (collectively the "Funds"), including the schedules of investments as of September 30, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the funds constituting the Ariel Investment Trust as of September 30, 2024, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2024, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
November 14, 2024
November 14, 2024
We have served as the auditor of one or more Ariel Investment Trust investment companies since 2011.
SLOW AND STEADY WINS THE RACE
31
Important Supplemental Information
September 30, 2024 (Unaudited)
2024 TAX INFORMATION
The following information for the fiscal year ended September 30, 2024 for Ariel Fund, Ariel Appreciation Fund, Ariel Focus Fund, Ariel International Fund and Ariel Global Fund is provided pursuant to provisions of the Internal Revenue Code.
|
|
Ariel Fund
|
Ariel
Appreciation
Fund
|
Ariel Focus Fund
|
Ariel
International
Fund
|
Ariel Global
Fund
|
|
Long term capital gain
distributions paid
during the year *
|
$110,515,979
|
$51,105,963
|
$1,181,394
|
$-
|
$7,340,344
|
|
Dividends received
deduction % for
corporate shareholders
|
100%
|
100%
|
100%
|
11%
|
13%
|
* Designated for purposes of the dividends paid deduction.
Complete information will be reported on Forms 1099-DIV sent to shareholders in January 2025. The Funds intend to designate the maximum amount of qualified dividend income allowed.
FOREIGN TAX CREDIT PASS THROUGH
Pursuant to Section 853 of the Internal Revenue Code, Ariel International Fund and Ariel Global Fund designate the following amounts as foreign taxes paid for the year ended September 30, 2024. Foreign taxes paid for purposes of Section 853 may be less than actual foreign taxes paid for financial statement purposes.
|
|
Ariel
International
Fund
|
Ariel Global
Fund
|
|
Creditable foreign taxes paid
|
$1,518,461
|
$186,782
|
|
Per share amount
|
$0.0978
|
$0.0544
|
|
Portion of ordinary income distribution derived from foreign sourced income*
|
96.40%
|
68.19%
|
* None of the Funds listed above derived any income from "ineligible foreign sources" as defined under Section 901(j) of the Internal Revenue Code.
Foreign taxes paid or withheld should be included in taxable income with an offsetting deduction from gross income or as a credit for taxes paid to foreign governments. Above figures may differ from those cited elsewhere in this report due to differences in the calculation of income and gains under U.S. generally accepted accounting principles (book) purposes and Internal Revenue Service (tax) purposes. Shareholders are strongly advised to consult their own tax advisers with respect to the tax consequences of their investments in the Funds. In January, shareholders, excluding corporate shareholders, will receive an IRS 1099-DIV regarding the Federal tax status of the dividends and distributions they received in the calendar year.
PROXY VOTING POLICIES, PROCEDURES AND RECORD
Both a description of the policies and procedures that the Funds' investment adviser uses to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 are available upon request by calling 800-292-7435. Such information for the Funds is also available on the Securities and Exchange Commission's ("SEC") website at www.sec.gov.
SHAREHOLDER STATEMENTS AND REPORTS
The Funds attempt to reduce the volume of mail sent to shareholders by sending one copy of financial reports, prospectuses and other regulatory materials to two or more account holders who share the same address. We will send you a notice at least 60 days before sending only one copy of these documents if we have not received written consent from you previously. Should you wish to receive individual copies of materials, please contact us at800-292-7435. Once we have received your instructions, we will begin sending individual copies for each account within 30 days.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The Funds file complete schedules of investments with the SEC for the quarters ended December 31 and June 30 of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds' Forms N-PORT are available on the SEC's website at www.sec.gov.
All of the Funds' quarterly reports contain a complete schedule of portfolio holdings. All quarterly reports are made available to shareholders on theFunds' website at www.arielinvestments.com. Shareholders also may obtain copies of shareholder reports upon request by calling 800-292-7435 or by writing to Ariel Investment Trust, c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee,Wisconsin, 53201-0701.
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Changes in and Disagreements with Accountants for Open-End Management Investment Companies
As of September 30, 2024
None to report.
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33
Proxy Disclosures for Open-End Management Investment Companies
As of September 30, 2024
None to report.
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Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
As of September 30, 2024
See amounts disclosed above in the Statements of Operations under "Trustees' Fees and Expenses".
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35
Statement Regarding Basis for Approval of Investment Advisory Contract
As of September 30, 2024
Not applicable.
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Ariel Investment Trust
c/o U.S. Bank Global Fund Services
P.O. Box 701
Milwaukee, WI 53201-0701
800.292.7435
• arielinvestments.com
• linkedin.com/company/ariel-investments
• instagram.com/arielinvestments
• x.com/arielinvests
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Included as part of the Financial Statements under Item 7 of this Form N-CSR.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Included as part of the Financial Statements under Item 7 of this Form N-CSR.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Included as part of the Financial Statements under Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Included as part of the Financial Statements under Item 7 of this Form N-CSR.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the registrant's Board of Trustees.
Item 16. Controls and Procedures.
(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 period covered by this report, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19. Exhibits.
(a)(1) Code of Ethics - Not applicable. Item 2 requirements satisfied through alternative means.
(a)(2) Policy required by the listing standards adopted pursuant to Rule 10D-1 - Not applicable.
(a)(3) Certification for each principal executive and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2(a)) - Filed as an attachment to this filing.
(a)(4) Written solicitation to purchase securities under Rule 23c-1 - Not applicable.
(a)(5) There has been no change to the registrant's independent public accountant.
(b) 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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Ariel Investment Trust |
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By: |
/s/ Mellody L. Hobson |
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Mellody L. Hobson |
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President |
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(Principal Executive Officer) |
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Date: November 20, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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By: |
/s/ Mellody L. Hobson |
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Mellody L. Hobson |
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President |
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(Principal Executive Officer) |
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Date: November 20, 2024 |
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By: |
/s/ Tricia Larkin |
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Tricia Larkin |
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Vice President and Treasurer |
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(Principal Financial Officer) |
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Date: November 20, 2024 |