| Current Price: | $38.52 (as of 08/27/08) |
| Daily Change: | +0.40 +1.05% |
| YTD Return: | -10.54% |
The Value of a $10,000 Investment as of June 30, 2008
| Ticker Symbol: | CAAPX |
| Newspaper Symbol: | Apprec |
| CUSIP: | 040337206 |
| Ariel Mutual Fund #: | 2221 |
| Total Net Assets: | $1.7 billion as of 6/30/2008 |
| Expense Ratio: | 1.12% (as of 9/30/07) |
| Investment Minimum: | $1,000 initial; $50 subsequent; waived min. with automatic investment program |
| Sales Charge: | None |
| Investing in small- and mid-cap stocks is more risky and volatile than investing in large-cap stocks. | |
ANNOUNCEMENTS
LEAD PORTFOLIO MANAGER
PORTFOLIO MANAGER
INVESTMENT OBJECTIVE
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CATEGORY
INVESTMENT STYLE
INCEPTION DATE
FUND DOCUMENTS
FUND RANKINGS
Ariel Appreciation Fund Performance as of July 31, 2008
| Inception date: December 1, 1989 | Annualized | |||||||
| One Month | Three Months | Year To Date | One Year | Three Years | Five Years | Ten Years | Since Inception | |
|---|---|---|---|---|---|---|---|---|
| Ariel Appreciation Fund | 1.08% | -5.92% | -11.03% | -15.79% | -1.02% | 5.11% | 7.16% | 10.65% |
| Russell Midcap Value Index | -1.15% | -6.77% | -9.63% | -13.20% | 2.96% | 12.05% | 8.89% | 12.05% |
| Russell Midcap Index | -2.54% | -6.27% | -9.92% | -10.10% | 4.13% | 11.76% | 8.35% | 11.73% |
| S&P 500 Index | -0.84% | -8.02% | -12.65% | -11.09% | 2.85% | 7.03% | 2.91% | 9.49% |
Ariel Appreciation Fund Performance as of June 30, 2008
| Inception date: December 1, 1989 | Annualized | |||||||
| One Month | Three Months | Year To Date | One Year | Three Years | Five Years | Ten Years | Since Inception | |
|---|---|---|---|---|---|---|---|---|
| Ariel Appreciation Fund | -8.70% | -3.04% | -11.98% | -21.05% | -0.26% | 5.33% | 6.51% | 10.63% |
| Russell Midcap Value Index | -8.91% | 0.07% | -8.58% | -17.09% | 4.97% | 13.00% | 8.45% | 12.18% |
| Russell Midcap Index | -7.99% | 2.67% | -7.57% | -11.19% | 6.84% | 13.07% | 8.10% | 11.94% |
| S&P 500 Index | -8.43% | -2.73% | -11.91% | -13.12% | 4.41% | 7.58% | 2.88% | 9.58% |
Average Annual Total Return does not reflect a maximum 4.75% sales load charged prior to 07/15/94. Assumes reinvestment of dividends and capital gains.
| Net Expense Ratio (as of 9/30/07): | 1.12% |
Performance data quoted represents past performance. All performance assumes the reinvestment of dividends and capital gains. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.
The Russell Midcap® Index measures the performance of mid-sized companies.
The Russell Midcap® Value Index measures the performance of mid-sized, value-oriented companies with lower price-to-earnings ratios
The Standard & Poor’s 500 Index is a broad market weighted index dominated by blue-chip stocks.
For current prospectus, which includes the investment objectives, risks, management fees, charges and expenses as well as other information, call 800-292-7435. Please read the prospectus and consider this information carefully before investing. ©2007, Ariel Distributors, LLC.
The Value of a $10,000 Investment as of June 30, 2008
Morningstar Fund Ratings as of JuLY 31, 2008
Ariel Appreciation Fund |
Overall Rating |
 |
* Assumes reinvestment of dividends and capital gains
Overall Morningstar Rating™ as of 07/31/08 out of 402 Mid-Cap Blend Equity Funds. Ariel Appreciation Fund was rated two stars among 402, two stars among 322 and three stars among 160 domestic mid-cap blend funds for the three-, five- and ten-year periods ended 07/31/08, respectively.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. These ratings change monthly. The top 10% of funds in an investment category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars, and the bottom 10% receive one star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Ratings. Morningstar does not guarantee the accuracy of this information.
© 2008 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Investing in small cap and mid-cap stocks is more risky and more volatile than investing in large cap stocks. Past performance does not guarantee future results.
Please consider the investment objectives, risks, and charges and expenses of the funds carefully before investing. Before investing, you should carefully read the funds’ prospectus, which contains this and other information about the funds. Call Ariel Distributors, LLC at 800-292-7435 for a prospectus or visit our web site, arielinvestments.com.
Top Ten Equity Holdings as of June 30, 2008
| SECURITY DESCRIPTION | % of Net Assets | |
|---|---|---|
| 1. | Accenture Ltd, Class A | 5.8 |
| 2. | Thermo Fisher Scientific Inc. | 4.2 |
| 3. | IMS Health Inc. | 4.2 |
| 4. | Baxter International Inc. | 4.2 |
| 5. | Constellation Brands, Inc. | 4.1 |
| 6. | Equifax Inc. | 3.9 |
| 7. | Pitney Bowes Inc. | 3.9 |
| 8. | Hewitt Associates, Inc., Class A | 3.9 |
| 9. | Janus Capital Group Inc. | 3.8 |
| 10. | Carnival Corp. | 3.8 |
| Grand Total 41.8% |
Portfolio Composition (%) as of June 30, 2008
| Ariel Appreciation Fund | Russell Midcap Value | Russell Midcap | S&P500 | |
|---|---|---|---|---|
| Financial Services | 35.0% | 30.4% | 19.0% | 15.1% |
| Consumer Discretionary and Services | 33.2 | 11.9 | 15.6 | 10.8 |
| Health Care | 12.7 | 4.1 | 7.3 | 12.2 |
| Consumer Staples | 7.1 | 6.2 | 4.1 | 8.2 |
| Producer Durables | 6.0 | 5.1 | 7.8 | 4.9 |
| Technology | 3.4 | 6.1 | 11.0 | 14.0 |
| Materials and Processing | 2.6 | 8.9 | 9.2 | 4.5 |
| Other | 0.0 | 1.3 | 1.7 | 3.8 |
| Utilities | 0.0 | 14.8 | 9.8 | 7.8 |
| Autos and Transportation | 0.0 | 3.1 | 3.0 | 2.6 |
| Other Energy | 0.0 | 8.1 | 11.0 | 7.3 |
| Integrated Oils | 0.0 | 0.0 | 0.5 | 8.8 |
|
* Represents percentage of total equity holdings in the portfolio The Russell Midcap® Value Index measures the performance of mid-sized, value oriented companies with lower price-to-earnings ratios. The Russell Midcap® Index measures the performance of mid-sized companies. The S&P 500 Index is a broad market-weighted index dominated by blue chip stocks. |
||||
| Equity: | 100.0% |
| Cash, Assets & Other Liabilities: | 0.0% |
Portfolio Characteristics (%) as of June 30, 2008
| Ariel Appreciation Fund | Russell Midcap Value | Russell Midcap | S&P 500 | |
|---|---|---|---|---|
| Average Market Capitalization | $7.5 B | $5.8 B | $6.5 B | $47.4 B |
| Median Market Capitalization | 4.9 | 3.4 | 3.9 | 10.8 |
| Number of Holdings | 32 | 544 | 808 | 500 |
| Wall Street Analysts Per Stock | 11 | 11 | 12 | 17 |
| Turnover (%) | 29.8 | N/A | N/A | N/A |
| P/E (forward) | 12.7 | 12.5 | 14.6 | 13.2 |
| Beta (vs. Russell 3000 Index) | 0.92 | 0.94 | 1.10 | 0.89 |
| Price/Book | 2.4 | 1.5 | 2.3 | 2.4 |
| Dividend Yield (%) | 1.7 | 2.6 | 1.7 | 2.3 |
| Return on Equity (5 year) (%) | 20.4 | 13.7 | 17.1 | 20.8 |
| EPS Growth (forward) (%) | 11.9 | 9.8 | 13.5 | 12.0 |
|
The Russell Midcap® Value Index measures the performance of mid-sized, value oriented companies with lower price-to-earnings ratios. The Russell Midcap® Index measures the performance of mid-sized companies. The S&P 500 Index is a broad market-weighted index dominated by blue chip stocks.
|
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Schedule of Holdings as of June 30, 2008
| Shares | Security Description | CUSIP | Ticker | Original Cost | Current Value | % of Net Assets |
|---|---|---|---|---|---|---|
| 2,381,100 | Accenture Ltd, Class A | C:G1150G111 | ACN | 35,063,636 | 96,958,392 | 5.8 |
| 3,021,460 | IMS Health Inc. | C:449934108 | RX | 47,617,657 | 70,400,018 | 4.2 |
| 1,092,150 | Baxter International Inc. | C:071813109 | BAX | 22,562,673 | 69,832,071 | 4.2 |
| 1,245,354 | Thermo Fisher Scientific Inc. | C:883556102 | TMO | 18,747,994 | 69,403,578 | 4.2 |
| 3,413,900 | Constellation Brands, Inc. | C:21036P108 | STZ | 72,240,468 | 67,800,054 | 4.1 |
| 1,908,075 | Pitney Bowes Inc. | C:724479100 | PBI | 68,185,224 | 65,065,357 | 3.9 |
| 1,920,800 | Equifax Inc. | C:294429105 | EFX | 42,540,950 | 64,577,296 | 3.9 |
| 1,678,100 | Hewitt Associates, Inc., Class A | C:42822Q100 | HEW | 45,916,869 | 64,321,573 | 3.9 |
| 2,359,500 | Janus Capital Group Inc. | C:47102X105 | JNS | 27,432,245 | 62,455,965 | 3.8 |
| 1,919,150 | Carnival Corp. | C:143658300 | CCL | 65,772,813 | 63,255,184 | 3.8 |
| 3,143,600 | CBS Corp., Class B | C:124857202 | CBS | 77,462,472 | 61,268,764 | 3.7 |
| 698,322 | Dun & Bradstreet Corp. | C:26483E100 | DNB | 17,041,841 | 61,200,940 | 3.7 |
| 835,100 | Northern Trust Corp. | C:665859104 | NTRS | 24,933,118 | 57,262,807 | 3.4 |
| 953,800 | Anixter International Inc. | C:035290105 | AXE | 60,183,757 | 56,741,562 | 3.4 |
| 2,766,075 | CB Richard Ellis Group, Inc. | C:12497T101 | CBG | 69,023,447 | 53,108,640 | 3.2 |
| 842,700 | Jones Lang LaSalle Inc. | C:48020Q107 | JLL | 72,653,293 | 50,722,113 | 3.1 |
| 1,204,200 | City National Corp. | C:178566105 | CYN | 86,459,629 | 50,660,694 | 3.1 |
| 537,100 | Franklin Resources, Inc. | C:354613101 | BEN | 20,777,883 | 49,225,215 | 3.0 |
| 951,672 | Clorox Co. | C:189054109 | CLX | 37,327,203 | 49,677,278 | 3.0 |
| 851,400 | T. Rowe Price Group, Inc. | C:74144T108 | TROW | 14,485,183 | 48,078,558 | 2.9 |
| 1,053,600 | Omnicom Group Inc. | C:681919106 | OMC | 30,564,169 | 47,285,568 | 2.8 |
| 597,500 | Energizer Holdings, Inc. | C:29266R108 | ENR | 47,817,008 | 43,671,275 | 2.6 |
| 2,014,950 | Gannett Co., Inc. | C:364730101 | GCI | 111,165,168 | 43,663,967 | 2.6 |
| 735,600 | Black & Decker Corp. | C:091797100 | BDK | 27,179,544 | 42,304,356 | 2.6 |
| 1,481,500 | Sotheby's | C:835898107 | BID | 48,177,308 | 39,067,155 | 2.4 |
| 4,373,475 | Interpublic Group of Cos., Inc. | C:460690100 | IPG | 36,241,351 | 37,611,885 | 2.3 |
| 933,500 | YUM! Brands, Inc. | C:988498101 | YUM | 10,416,470 | 32,756,515 | 2.0 |
| 817,300 | Tiffany & Co. | C:886547108 | TIF | 31,052,750 | 33,304,975 | 2.0 |
| 707,800 | Illinois Tool Works Inc. | C:452308109 | ITW | 38,063,057 | 33,627,578 | 2.0 |
| 1,303,500 | HCC Insurance Holdings, Inc. | C:404132102 | HCC | 39,709,391 | 27,555,990 | 1.7 |
| 419,300 | Mohawk Industries, Inc. | C:608190104 | MHK | 29,210,685 | 26,877,130 | 1.6 |
| 239,500 | Aflac Inc. | C:001055102 | AFL | 10,718,889 | 15,040,600 | 0.9 |
| Other Assets and Liabilities | 3,587,651 | 0.2 | ||||
| 281,165 | Fixed Income Clearing Corporation | C:85748R009 | 281,165 | 281,165 | 0.0 | |
| Grand Total | $1,387,025,310 | $1,658,651,869 | 100.0% | |||
Investment Objective
Our mutual funds pursue a common objective: long-term capital appreciation. The Funds invest for appreciation, not income. They seek stocks whose underlying value should increase over time. Any dividend and interest income the Funds earn is incidental to their fundamental objective. The Funds’ Adviser cannot guarantee any Fund will achieve capital appreciation in every circumstance, but we are dedicated to that objective.
Investment Strategy and Approach
Ariel Appreciation Fund invests primarily in the stocks of companies which at the time of initial purchase by the Fund have market capitalizations between $2.5 billion and $15 billion.
Our Approach to Investing
By concentrating on long-term investing, Ariel believes that its patient approach allows it to take advantage of buying opportunities that frequently arise from Wall Street’s excessive focus on the short-term.
The Funds seek to invest in quality companies in industries where Ariel has expertise. The Funds only buy when Ariel determines that these businesses are selling at excellent values.
Quality
Ariel seeks to invest in quality companies whose future prospects include high barriers to entry in the industry; sustainable competitive advantages; and predictable fundamentals that allow for double digit earnings growth. We seek to invest in companies with quality management teams who are candid and honest; are able to clearly articulate and execute a strategy; have proven that they can attract and retain great people; and have demonstrated they invest cash wisely. We seek to invest in companies with quality financials including high returns on capital; strong balance sheets; and low reinvestment requirements.
Expertise
Ariel’s industry concentration helps to add value in areas we know well. Our reading of trade publications, newspapers, press releases, company financials and other corporate communications is critical to our decision making. Our expansive network of third-party contacts includes customers, suppliers, former employees and competitors who serve to independently verify our investment ideas.
Value
Ariel challenges conventional wisdom which allows us to stand out from the investing crowd. As disciplined investors, we generally seek to invest in companies when they are trading at a low valuation relative to potential earnings and/or a low valuation relative to intrinsic worth. As value investors, we make opportunistic purchases when companies that we believe are high quality are temporarily out of favor.
The Investment Process: A Focus On Independent Research
Uncovering Value
Ariel’s proprietary research process begins with the usual Wall Street sources – financial analysts’ reports, daily First Call reports, press releases and company financials. Digging deeper, we review more than 150 newspapers, trade periodicals and technical journals. In this way, we believe we can uncover outstanding opportunities that others may have missed.
We apply the same intensive research once we have identified a candidate for investment. We comb through the company’s financial history and analyze its prospects. We develop independent long-range financial projections and detail the risks.
A network of independent, third-party contacts reveals the invaluable insights of customers, suppliers, former employees, competitors and industry insiders, as well as other investment managers.
We also independently assess key executives. We believe the character and quality of a company’s management weighs at least as heavily as any other factor in determining its success. We believe the skill of the management team will help the company overcome unforeseen obstacles. In addition, the team’s contacts and experience may alert the company to emerging opportunities.
A portfolio consisting exclusively of stocks in these companies is highly select: Ariel Fund and Ariel Appreciation Fund generally contain no more than 50 stocks each; Ariel Focus Fund will generally own 20 stocks.
A Long-term View
Ariel believes the market will ultimately reward the companies in which we invest, and we give them the time such recognition requires, typically two to five years and sometimes even longer. This long-term approach means that the Ariel Mutual Funds typically have low rates of turnover*.
Each time a fund turns over a holding (e.g., sells one stock to buy another), it incurs transaction charges that negatively impact investment returns – the higher the turnover rate, the more negative the impact of the transaction costs. High turnover rates can reduce investment performance while low turnover rates can enhance it. A low rate of turnover can offer yet another advantage because it may defer a fund’s taxable capital gains.
We sell stocks when we believe they are fully valued or when our reasons for purchase no longer apply. We define fully valued to be our assessment of full valuation relative to potential earnings, which includes a price-to-earnings ratio of more than 20 times next year’s earnings and full valuation relative to intrinsic worth (i.e., a 0% discount to our private market value). We also may sell a stock when there is a major change in the competitive landscape, a substantial shift in company fundamentals or a loss of faith in management’s abilities.
Foreign Securities
Ariel Focus Fund may invest up to 20% of its net assets in foreign securities, as classified by the Adviser. Ariel Fund and Ariel Appreciation Fund may invest up to 10% of their respective net assets in foreign securities. Investments in foreign securities may be made through the purchase of individual securities on recognized exchanges and developed over-the-counter markets, or through American Depositary Receipts (“ADRs”) or Global Depositary Receipts (“GDRs”) covering such securities. The Funds expect to invest in foreign securities mainly through ADRs or GDRs.
The value of foreign securities may be affected by changes in exchange rates, as well as other factors that affect securities prices. There generally is less information publicly available about foreign securities and foreign securities markets, and there may be less government regulation and supervision of foreign issuers and foreign securities markets. Foreign securities and markets also may be affected by political and economic instabilities and may be more volatile and less liquid than domestic securities and markets. The Funds have not invested in, and do not currently expect to invest in, “emerging” foreign market securities.
Cash Positions
At times we may maintain larger than normal cash positions in a Fund. However, cash positions in a Fund are generally not held for defensive purposes, but are maintained while we search for compelling investments.
Definitions
Undervalued
Institutional investors consider a stock undervalued when it trades at a price below what they think the business is worth. The concept is relative. Investors might judge a stock undervalued on the basis of price to earnings ratio: they pay less for a dollar of corporate earnings when they buy a particular stock than they would if they bought another stock. Or they might judge a stock undervalued on the basis of the ratio of the value of its assets to the value of its market capitalization: they pay less for a dollar of assets by buying one stock than they would if they bought another stock.
Turnover
Turnover is an indication of how long a fund typically holds the stocks it purchases. A turnover rate of 100% implies that a fund changes its entire investment portfolio every year. As a product of our long-term investment strategy, turnover rates for the Ariel Fund and Ariel Appreciation Fund have been historically low (i.e., less than 50%).
Portfolio Snapshot
Portfolio Snapshots offer monthly and quarterly commentary on the performance of our Funds.
Additional Commentary
For commentary on all of our mutual funds, including Fund Updates, the quarterly letters from our Portfolio Managers and a selection of spotlights on typical Fund holdings, visit our main Commentary area.
Ariel Appreciation Fund Historical Sector Diversification as of December 31
| Sector Diversification(%) | 2003 | 2004 | 2005 | 2006 | 2007 | |
| Technology | 0.0 | 0.0 | 0.0 | 0.0 | 2.2 | |
| Healthcare | 14.8 | 14.2 | 14.1 | 9.5 | 11.3 | |
| Consumer Discretionary & Services | 32.6 | 38.0 | 43.1 | 53.4 | 31.2 | |
| Consumer Staples | 4.8 | 2.6 | 2.5 | 2.2 | 6.3 | |
| Integrated Oils | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Other Energy | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Materials And Processing | 0.0 | 0.0 | 0.0 | 1.2 | 5.5 | |
| Producer Durables | 4.0 | 3.9 | 4.5 | 5.0 | 5.7 | |
| Autos and Transportation | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Financial Services | 40.6 | 39.0 | 32.0 | 28.7 | 37.8 | |
| Utilities | 3.1 | 2.2 | 0.0 | 0.0 | 0.0 | |
| Other | 0.0 | 0.0 | 3.8 | 0.0 | 0.0 | |
|
Our consistent overweight of consumer-related sectors is a natural outgrowth of our bottom-up research process and bias toward predictable industries. We avoid sector rotation and "trendy" industries. |
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Ariel Appreciation Fund Historical Portfolio Characteristics as of December 31
| Market Capitalization* | 2003 | 2004 | 2005 | 2006 | 2007 | |
| Ariel Appreciation Fund | 8470 | 9650 | 8770 | 9990 | 8900 | |
| Russell Midcap Value | 4920 | 6340 | 6400 | 7070 | 7000 | |
| Russell Midcap | 4990 | 6030 | 6410 | 7050 | 7600 | |
| S&P 500 | 46060 | 47530 | 47510 | 53920 | 56600 | |
| Price/Earnings (Forward) | ||||||
| Ariel Appreciation Fund | 16.6 | 17.4 | 15.9 | 17.1 | 14.7 | |
| Russell Midcap Value | 15.4 | 15.4 | 14.7 | 15.2 | 14.3 | |
| Russell Midcap | 17.6 | 17.5 | 16.7 | 17.2 | 16.4 | |
| S&P 500 | 18.5 | 17.1 | 15.4 | 15.4 | 15.2 | |
| Beta (Correlated to the Russell 3000 Index) | ||||||
| Ariel Appreciation Fund | 0.85 | 0.80 | 0.79 | 0.87 | 1.04 | |
| Russell Midcap Value | 0.81 | 0.77 | 0.89 | 0.95 | 0.99 | |
| Russell Midcap | 0.97 | 0.98 | 1.06 | 1.09 | 1.11 | |
| S&P 500 | 0.96 | 0.94 | 0.94 | 0.95 | 0.90 | |
| Number of Issues | ||||||
| Ariel Appreciation Fund | 35 | 35 | 34 | 31 | 35 | |
| Russell Midcap Value | 593 | 562 | 519 | 481 | 485 | |
| Russell Midcap | 790 | 792 | 783 | 784 | 794 | |
| S&P 500 | 500 | 500 | 500 | 500 | 500 | |
| Portfolio Turnover | ||||||
| Ariel Appreciation Fund | 27.5 | 17.4 | 30.4 | 21.6 | 32.3 | |
|
*Dollar-weighted average nlog — in millions |
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|
Past performance does not guarantee future results. Principal value and investment returns will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. All indexes are unmanaged and returns include reinvested dividends. An investor cannot invest directly in an index.
The Russell Midcap ® Value Index measures the performance of mid-sized, value-oriented companies with lower price-to-earnings ratios. The Russell Midcap ® Index measures the performance of mid-sized companies. The S&P 500 Index is a broad market-weighted index dominated by blue chip stocks. |
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Distribution History
| Reinvest Date | Reinvest Price Per Share |
Long Term Capital Gain Per Share |
Short Term Capital Gain Per Share |
Income Dividend Per Share |
Total Distribution Per Share |
| Dec. 28, 1990 | $14.47 | $0.000000 | $0.000000 | $0.242360 | $0.242360 |
| Dec. 27, 1991 | $18.66 | $0.000000 | $0.000000 | $0.191240 | $0.191240 |
| Nov. 25, 1992 | $21.03 | $0.000000 | $0.000000 | $0.064470 | $0.064470 |
| Dec. 24, 1992 | $21.25 | $0.018900 | $0.000000 | $0.000000 | $0.018900 |
| Nov. 24, 1993 | $21.58 | $0.347700 | $0.000000 | $0.048000 | $0.395700 |
| Dec. 30, 1993 | $22.73 | $0.000000 | $0.000000 | $0.004360 | $0.004360 |
| Dec. 30, 1994 | $19.51 | $1.267900 | $0.128650 | $0.062470 | $1.459020 |
| Dec. 28, 1995 | $22.03 | $1.766040 | $0.000000 | $0.199800 | $1.965840 |
| Dec. 30, 1996 | $26.04 | $1.323230 | $0.045636 | $0.074360 | $1.443226 |
| Dec. 30, 1997 | $32.72 | $1.518030 | $1.547280 | $0.067560 | $3.132870 |
| Dec. 30, 1998 | $35.16 | $3.376820 | $0.080320 | $0.035970 | $3.493110 |
| Dec. 15, 1999 | $29.36 | $2.652890 | $0.497700 | $0.042090 | $3.192680 |
| Dec. 4, 2000 | $31.02 | $3.423490 | $0.531280 | $0.116760 | $4.071530 |
| Dec. 10, 2001 | $36.11 | $0.587190 | $0.118650 | $0.064820 | $0.770660 |
| Dec. 27, 2002 | $32.73 | $0.123720 | $0.000000 | $0.000000 | $0.123720 |
| Dec. 29, 2003 | $43.10 | $0.000000 | $0.000000 | $0.000000 | $0.000000 |
| Nov. 17, 2004 | $45.51 | $1.047980 | $0.152410 | $0.000000 | $1.200390 |
| Dec. 29, 2004 | $47.66 | $0.000000 | $0.000000 | $0.045710 | $0.045710 |
| Nov. 17, 2005 | $46.62 | $1.762070 | $0.437950 | $0.000000 | $2.200020 |
| Dec. 29, 2005 | $46.87 | $0.000000 | $0.000000 | $0.132540 | $0.132540 |
| Nov. 16, 2006 | $48.08 | $3.309600 | $0.152320 | $0.000000 | $3.461920 |
| Dec. 28, 2006 | $48.60 | $0.000000 | $0.000000 | $0.021500 | $0.021500 |
| Nov. 15, 2007 | $44.19 | $4.430140 | $0.025760 | $0.000000 | $4.455900 |
| Dec. 27, 2007 | $43.14 | $0.000000 | $0.000000 | $0.229590 | $0.229590 |
Historical Performance
| Period | Ariel Appreciation Fund | Russell Mid Cap Value Index | Russell Mid Cap Index | S&P 500 Index |
|---|---|---|---|---|
| 1Q 1990 | 4.1% | -4.2% | -3.9% | -3.1% |
| 2Q 1990 | 6.2% | 0.0% | 3.7% | 6.3% |
| 3Q 1990 | -22.4% | -19.5% | -19.8% | -13.8% |
| 4Q 1990 | 14.9% | 8.8% | 10.7% | 9.0% |
| Year Ended 1990 | -1.5% | -16.1% | -11.5% | -3.2% |
| 1Q 1991 | 22.6% | 18.6% | 20.5% | 14.6% |
| 2Q 1991 | -0.2% | 2.1% | 0.5% | -0.2% |
| 3Q 1991 | 3.4% | 6.9% | 7.4% | 5.4% |
| 4Q 1991 | 5.3% | 6.6% | 8.8% | 8.4% |
| Year Ended 1991 | 33.2% | 37.9% | 41.5% | 30.6% |
| 1Q 1992 | 2.0% | 4.8% | 1.6% | -2.6% |
| 2Q 1992 | -3.4% | 2.7% | -0.2% | 2.0% |
| 3Q 1992 | 2.9% | 3.0% | 3.9% | 3.1% |
| 4Q 1992 | 11.7% | 9.8% | 10.5% | 5.1% |
| Year Ended 1992 | 13.2% | 21.7% | 16.3% | 7.7% |
| 1Q 1993 | -2.6% | 8.4% | 5.4% | 4.3% |
| 2Q 1993 | -1.9% | 2.6% | 1.6% | 0.5% |
| 3Q 1993 | 4.9% | 4.3% | 5.4% | 2.6% |
| 4Q 1993 | 7.6% | -0.2% | 1.3% | 2.3% |
| Year Ended 1993 | 7.9% | 15.6% | 14.3% | 10.0% |
| 1Q 1994 | -4.9% | -2.8% | -3.0% | -3.8% |
| 2Q 1994 | -0.4% | -0.3% | -2.2% | 0.4% |
| 3Q 1994 | 0.6% | 4.5% | 5.7% | 4.9% |
| 4Q 1994 | -3.9% | -3.4% | 2.4% | 0.0% |
| Year Ended 1994 | -8.4% | -2.1% | -2.1% | 1.3% |
| 1Q 1995 | 7.1% | 10.1% | 10.4% | 9.7% |
| 2Q 1995 | 2.1% | 8.7% | 8.4% | 9.5% |
| 3Q 1995 | 6.8% | 7.9% | 8.9% | 8.0% |
| 4Q 1995 | 6.4% | 4.5% | 3.2% | 5.9% |
| Year Ended 1995 | 24.2% | 34.9% | 34.5% | 37.5% |
| 1Q 1996 | 3.0% | 5.6% | 6.0% | 5.5% |
| 2Q 1996 | 4.7% | 1.9% | 2.8% | 4.5% |
| 3Q 1996 | 4.2% | 2.9% | 3.1% | 3.1% |
| 4Q 1996 | 10.1% | 8.6% | 5.9% | 8.5% |
| Year Ended 1996 | 23.7% | 20.3% | 19.0% | 23.3% |
| 1Q 1997 | -0.4% | 1.7% | -0.8% | 2.6% |
| 2Q 1997 | 14.6% | 12.6% | 13.6% | 17.5% |
| 3Q 1997 | 13.2% | 12.8% | 13.3% | 7.6% |
| 4Q 1997 | 6.7% | 4.1% | 1.1% | 2.8% |
| Year Ended 1997 | 37.9% | 34.4% | 29.0% | 33.4% |
| 1Q 1998 | 9.1% | 10.0% | 10.8% | 14.0% |
| 2Q 1998 | 2.0% | -2.6% | -1.5% | 3.3% |
| 3Q 1998 | -12.9% | -13.7% | -14.8% | 9.9% |
| 4Q 1998 | 23.4% | 13.6% | 5.9% | 21.3% |
| Year Ended 1998 | 19.6% | 5.1% | 10.1% | 28.8% |
| 1Q 1999 | -0.8% | -3.1% | -0.5% | 5.0% |
| 2Q 1999 | 8.3% | 11.2% | 10.9% | 6.9% |
| 3Q 1999 | -11.8% | -10.6% | -8.6% | -6.2% |
| 4Q 1999 | 1.5% | 3.8% | 17.2% | 15.1% |
| Year Ended 1999 | -3.8% | -0.1% | 18.2% | 21.1% |
| 1Q 2000 | -3.7% | 1.0% | 10.1% | 2.4% |
| 2Q 2000 | 4.6% | -1.7% | -4.5% | -2.7% |
| 3Q 2000 | 8.02% | 9.65% | 6.81% | -1.00% |
| 4Q 2000 | 9.26% | 9.44% | -3.59% | -7.83% |
| Year Ended 2000 | 18.82% | 19.18% | 8.25% | -9.11% |
| 1Q 2001 | 1.84% | -3.53% | -10.49% | -11.86% |
| 2Q 2001 | 8.66% | 7.04% | 9.53% | 5.85% |
| 3Q 2001 | -10.00% | -11.55% | -17.86% | -14.68% |
| 4Q 2001 | 16.70% | 12.03% | 17.20% | 10.69% |
| Year Ended 2001 | 16.23% | 2.33% | -5.62% | -11.89% |
| 1Q 2002 | 8.56% | 7.90% | 4.25% | 0.28% |
| 2Q 2002 | -6.77% | -4.67% | -9.55% | -13.40% |
| 3Q 2002 | -15.96% | -17.95% | -17.64% | -17.28% |
| 4Q 2002 | 5.38% | 7.07% | 7.92% | 8.44% |
| Year Ended 2002 | -10.36% | -9.65% | -16.19% | -22.10% |
| 1Q 2003 | -7.05% | -4.06% | -2.37% | -3.15% |
| 2Q 2003 | 21.84% | 17.89% | 18.26% | 15.39% |
| 3Q 2003 | 4.14% | 5.94% | 6.43% | 2.65% |
| 4Q 2003 | 11.05% | 15.22% | 13.97% | 12.18% |
| Year Ended 2003 | 30.97% | 38.07% | 40.06% | 28.68% |
| 1Q 2004 | 3.72% | 5.35% | 5.14% | 1.69% |
| 2Q 2004 | -0.04% | 1.73% | 1.45% | 1.72% |
| 3Q 2004 | -0.60% | 1.73% | -0.84% | -1.87% |
| 4Q 2004 | 9.76% | 13.46% | 13.66% | 9.23% |
| Year Ended 2004 | 13.10% | 23.71% | 20.22% | 10.88% |
| 1Q 2005 | -2.69% | 0.78% | -0.25% | -2.15% |
| 2Q 2005 | 2.63% | 4.70% | 4.18% | 1.37% |
| 3Q 2005 | 1.49% | 5.35% | 5.92% | 3.60% |
| 4Q 2005 | 1.54% | 1.34% | 2.35% | 2.10% |
| Year Ended 2005 | 2.92% | 12.65% | 12.65% | 4.91% |
| 1Q 2006 | 1.86% | 7.62% | 7.61% | 4.21% |
| 2Q 2006 | -3.03% | -0.56% | -2.58% | -1.44% |
| 3Q 2006 | 5.01% | 3.53% | 2.11% | 5.67% |
| 4Q 2006 | 6.96% | 8.50% | 7.67% | 6.70% |
| Year Ended 2006 | 10.94% | 20.22% | 15.26% | 15.79% |
| 1Q 2007 | 1.92% | 4.96% | 4.38% | 0.64% |
| 2Q 2007 | 7.86% | 3.65% | 5.30% | 6.28% |
| 3Q 2007 | -4.67% | -3.55% | -0.39% | 2.03% |
| 4Q 2007 | -5.91% | -5.97% | -3.55% | -3.33% |
| Year Ended 2007 | -1.40% | -1.42% | 5.60% | 5.49% |
| 1Q 2008 | -9.22% | -8.64% | -9.98% | -9.44% |
| Annualized Return Since Inception 12/01/1989 through 3/31/2008 |
10.97% | 12.35% | 11.95% | 9.88% |
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Average Annual Total Return does not reflect a maximum 4.75% sales load charged prior to 07/15/94. Assumes reinvestment of dividends and capital gains. | ||||
Performance data quoted represents past performance. Past performance does not guarantee future results. All performance assumes the reinvestment of dividends and capital gains. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Click here to view performance data current to the most recent month-end.
The Russell Midcap® Index measures the performance of mid-sized companies.
The Russell Midcap® Value Index measures the performance of mid-sized, value-oriented companies with lower price-to-earnings ratios
The S&P 500 Index is a broad market-weighted index dominated by large-sized companies.
For more information about the Ariel Mutual Funds including management fees, expenses and potential risks, please see the current prospectus. Ariel Distributors, Inc. 200 East Randolph Drive, Chicago, IL 60601. 1-800-292-7435.
Quarterly Portfolio Manager Commentary
This quarterly letter offers a performance update as well as our thoughts on the economy and our perspectives on investing.
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