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[LOGO OF ARIEL MUTUAL FUNDS]
Ariel Growth Fund
Ariel Appreciation Fund
Quarterly Report--December 31, 1995
[ARTWORK OF LEAF APPEARS HERE]
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Ariel Growth Fund
Inception November 6, 1986
Average Annual Total Return
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1 Year 3 Year 5 Year Life of Fund
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Ariel +18.5% +7.3% +12.9% +13.0%
Growth
Fund
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Total return does not reflect a maximum 4.75% sales load that was charged
prior to July 15, 1994.
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[Pie Chart: Ariel Growth Fund Portfolio Composition appears here]
Consumer Discretionary and Services 44.1%
Health Care 3.2%
Financial Services 11.7%
Producer Durables 10.1%
Materials and Processing 19.5%
Consumer Staples 11.4%
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[Pie Chart: S&P 500 appears here]
Consumer Discretionary and Services 9.4%
Health Care 10.8%
Technology 8.6%
Utilities 13.2%
Financial Services 14.1%
Autos and Transportation 4.4%
Producer Durables 4.9%
Materials and Processing 8.4%
Other Energy 1.0%
Integrated Oils 8.1%
Consumer Staples 11.7%
[GRAPH APPEARS HERE--PLOT POINTS TO COME]
Comparison of change in value of $10,000 invested
in Ariel Growth Fund and comparable indices*
Measurement Period Ariel Russell
(Fiscal Year Covered) Growth Fund S&P 500 2500
- ------------------- ----------- -------- -------
Measurement Pt-
1986 $10,000 $10,000 $10,000
1987 $11,367 $10,256 $ 9,281
1988 $15,905 $11,960 $11,391
1989 $19,900 $15,749 $13,604
1990 $16,699 $15,260 $11,580
1991 $22,163 $19,910 $16,988
1992 $24,763 $21,427 $19,738
1993 $26,924 $23,587 $23,002
1994 $25,786 $23,897 $22,759
1995 $30,562 $32,878 $29,975
*Statistics represent past performance which is not indicative of future
results.
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Ariel Appreciation Fund
Inception December 1, 1989
Average Annual Total Return
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1 Year 3 Year 5 Year Life of Fund
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Ariel +24.2% +7.1% +13.1% +10.5%
Appreciation
Fund
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Total return does not reflect a maximum 4.75% sales load that was charged
prior to July 15, 1994.
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[Pie Chart: Ariel Appreciation Fund Portfolio Composition appears here]
Consumer Staples 9.6%
Technology 1.6%
Consumer Discretionary and Services 36.4%
Materials and Processing 14.4%
Health Care 9.8%
Autos and Transportation 1.7%
Producer Durables 7.8%
Financial Services 18.8%
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[Pie Chart: S&P 500 appears here]
Consumer Discretionary and Services 9.4%
Health Care 10.8%
Technology 8.6%
Utilities 13.2%
Financial Services 14.1%
Autos and Transportation 4.4%
Producer Durables 4.9%
Materials and Processing 8.4%
Other Energy 1.0%
Integrated Oils 8.1%
Consumer Staples 11.7%
[GRAPH APPEARS HERE--PLOT POINTS TO COME]
Comparison of change in value of $10,000 invested
in Ariel Appreciation Fund and comparable indices*
Ariel
Measurement Period Appreciation Russell
(Fiscal Year Covered) Fund S&P 500 2500
- ------------------- ------------ -------- -------
Measurement Pt-
1989 $10,000 $10,000 $10,000
1990 $ 9,902 $ 9,922 $ 8,554
1991 $13,184 $12,945 $12,549
1992 $14,930 $13,932 $14,580
1993 $16,115 $15,336 $16,992
1994 $14,763 $15,539 $16,812
1995 $18,330 $21,378 $22,142
*Statistics represent past performance which is not indicative of future
results.
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[PHOTO OF John W. Rogers, Jr.]
[PHOTO OF Eric T. McKissack]
[PHOTO OF Franklin Morton]
"In a roaring bull market where high tech stocks are all the rage and
consistent franchise businesses with quality products and services are
left for dead, the value style is temporarily disadvantaged."
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Quarterly Report--December 31, 1995
Ariel Mutual Funds
Ariel Growth Fund
Ariel Appreciation Fund
Dear Shareholder:
Having successfully weathered a very volatile stock market environment, we are
pleased to report that the Ariel Appreciation Fund and the Ariel Growth Fund
returned 6.4% and 3.9% respectively for the fourth quarter ending December 31,
1995. As is commonly the case when there are dramatic changes in stock market
conditions, large company stocks posted stronger results than those of the
smaller companies which can sometimes be more susceptible to market vagaries.
Accordingly, the S&P 500 Index of large company stocks ended the quarter with a
6.0% gain while the Russell 2500 Index of small and mid-sized issues returned
2.7%.
In The Adventures of Alice in Wonderland, Lewis Caroll writes, "Everything's got
a moral, if only you can find it." Although a rather harsh lesson may have been
obfuscated by the longest uninterrupted bull market in stock market history, in
reality, the story never changes. The stock market may always find new ways of
surprising and amazing its willing participants but as one market watcher once
noted, "There are no new investment eras, only old eras that go to new
extremes."
A new American pastime
For most of the first nine months of 1995, it was as if the stock market had
replaced baseball as America's favorite pastime. In the face of complete and
total investor elation, the boom performance of red hot technology issues
feverishly drove market indices to unprecedented highs. By mid-year, the
Hambrecht and Quist Technology Index of small company tech issues had already
charged ahead nearly 35% and many saw no end in sight as "all things Internet"
were sure to be big winners. Likewise, the Dow Jones Industrial Average outdid
itself on 69 occasions and then effortlessly crossed the 5,000 mark just nine
months after having trampled the 4,000 barrier. By November 1995, investors had
poured more than $420 billion into mutual funds and with this kind of insatiable
demand for equities, more companies came public than ever before. Many scrambled
to get a piece
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Ariel Growth Fund
Ten Largest Holdings
as of December 31, 1995
1 Longs Drug Stores, Inc.
A leading operator of retail drug stores in California
2 First Brands Corporation
Manufacturer and marketer of consumer products for home and automobile markets
3 Ecolab, Inc.
Leading developer and marketer of premium cleaning and sanitizing products and
services for the hospitality markets
4 Rouse Company
Retail mall developer
5 Northern Trust Corporation
Chicago-based bank holding company
6 Central Newspapers, Inc.
Leading media company that publishes daily and weekly newspapers in metropolitan
Phoenix and Indianapolis
7 Interface, Inc.
Manufacturer and marketer of world's two leading brands of carpet tiles--
Interface and Heuga
8 Harte-Hanks Communications
Diversified communications company with businesses in newspapers,
publication, direct marketing and broadcasting
9 Hasbro, Inc.
World's largest toy manufacturer
10 Russell Corp.
Manufacturer and marketer of leisure apparel, athletic uniforms, and lightweight
woven fabrics
of the next hot deal and the frenzy that resulted drove new issues to sky-high
prices. A reckless mood prevailed and The New York Times told us that, "the
mutual funds that took the biggest risks generated the most profits."
Against this backdrop, value managers, like ourselves, were left to feel like
motionless spectators as we watched the fast moving market catapult the most
popular and riskiest issues so far ahead. By definition, a value manager seeks
out widely misunderstood, ignored or underfollowed issues and thereby follows a
more conservative long-term strategy. In a roaring bull market where high tech
stocks are all the rage and consistent franchise businesses with quality
products and services are left for dead, the value style is temporarily
disadvantaged. The drawback is only temporary for two simple reasons: (1) the
market eventually recognizes value and (2) stocks do not go straight up forever.
Thus, it is over the course of a full market cycle --one with the peaks and
troughs that all cycles have -- when the value manager can benefit from the
upside potential of owning less popular securities while simultaneously
insulating a portfolio from a significant downside risk.
A reversal of fortune?
Although our portfolios spent much of 1995 trailing the investment returns of
the tech laden, aggressive growth portfolios, the benefits of our value style
finally did become evident in the volatile fourth quarter when the inevitable
tide began to turn for the stock market's leading sector. Barron's characterized
the arresting shift in the fol-
2
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Ariel Appreciation Fund
Ten Largest Holdings
as of December 31, 1995
1 Rouse Company
A retail mall developer
2 Northern Trust Corporation
Chicago-based bank holding company
3 Longs Drug Stores, Inc.
A leading operator of retail drug stores in California
4 Harte-Hanks Communications
Diversified communications company with businesses in newspapers, publications,
direct marketing and broadcasting
5 Hasbro, Inc.
World's largest toy manufacturer
6 Merry Land &
Investment Co., Inc.
One of the largest owners and operators of upscale garden apartments in the
southeast (a real estate investment trust-REIT)
7 Omnicom Group, Inc.
Fourth largest advertising agency in the world
8 MBIA, Inc.
Leading insurer of municipal bonds
9 Russell Corp.
Manufacturer and marketer of leisure apparel, athletic uniforms, and lightweight
woven fabrics
10 Bergen Brunswig Corp.
Nation's second largest distributor/wholesaler of pharmaceuticals and health
care products
lowing manner, "Late in the year, one by one, the tech stocks were taken out and
shot." As a result, the average technology fund lost more than 6% during a
period when the Dow Jones Industrial Average rose by that same amount. Perhaps
not surprisingly, the third quarter's best performing fund devoted strictly to
technology stocks became the fourth quarter's very worst. It was this rapid
downturn spiral that led one of the most famous tech fund manager's of the year
to ruefully proclaim, "I've given up more performance in a shorter period of
time than I ever thought was imaginable." This remark came on the heels of a 19%
loss over three month's time.
We had been anticipating this difficulty for some time. Just 12 months ago, we
expressed concerns about the harm that could result from a significant sell off
in the tech sector. In our shareholder letter last December, we said, "the real
danger of the current technology craze lies in the potential damage that could
be done when the winds change -- for whatever reason -- and fund managers look
to get out of these large positions." This past June, we reiterated our concerns
and urged our investors to consider, "...that given the unparalleled returns in
this one sector, the rich valuations of these volatile issues and the
complexities of these businesses, the risks are very great and the real values
are to be found elsewhere." We continue to believe that the worst is not over --
especially as we anticipate feverish competition in this ever changing arena
joined with increased instances of earnings disappointments as the economy
weakens.
3
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Portfolio comings and goings
During the fourth quarter, the Ariel Appreciation Fund and Ariel Growth Fund
portfolios were very favorably impacted by the acquisition of CCH, Inc.
(formerly known as Commerce Clearing House, Inc.) by Walters Kluwer, a Dutch-
based media company for a premium price of $55.50 a share. CCH had been a
significant holding since the shares in the company were first acquired in July
of 1991 at $17.50.
At the time of purchase, we were attracted to CCH's leadership in publication of
current information primarily in the fields of tax and business law -- a
reputation that had been built over its 75-year history. Its best sellers are
the 18 volume Standard Tax Reporter and the Federal Tax Guide. CCH also provides
corporations with statutory representation and assists professional tax
preparers with computer processing of income tax returns.
Despite the company's long history of industry leadership, CCH's earnings had
stumbled in 1989 and 1990. In keeping with our value approach, we viewed this as
a perfect opportunity to purchase shares in a prominent company while its shares
were out-of-favor. Although there was very little Wall Street interest in the
stock at the time, we were convinced that CCH was well positioned for a rebound.
Even though CCH's turnaround took longer than we had originally anticipated, our
patience was eventually rewarded. The company's recent acquisition has thereby
confirmed our initial thesis. At three times 1995 estimated revenues and more
than 50 times 1995 estimated earnings per share, the price paid by Walters
Kluwer was well beyond Wall Street's estimates of a takeout value for the
company. This transaction only serves to reinforce our thinking that high
quality, franchise businesses will command premium prices. As we stated earlier,
the market will eventually recognize value.
As always, we are grateful for the opportunity to serve you and welcome any
comments or suggestions that you might have.
Sincerely,
/s/ John W. Rogers, Jr /s/ Eric T. McKissack
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John W. Rogers, Jr. Eric T. McKissack
Portfolio Manager Portfolio Manager
Ariel Growth Fund Ariel Appreciation Fund
4
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Ariel Mutual Funds
Ariel Growth Fund
Schedule of Investments
December 31, 1995 (Unaudited)
Number COMMON STOCKS 97.63% Value
of Shares
Advertising--3.24%
105,000 Omnicom Group, Inc. $ 3,911,250
------------
Apparel & Shoes--3.79%
164,900 Russell Corp. 4,575,975
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Business Services--6.79%
128,350 Angelica Corp. 2,631,175
185,400 Ecolab, Inc. 5,562,000
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8,193,175
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Consumer Products--9.93%
72,900 Armor All Products Corp. 1,321,312
53,800 Clorox Co. 3,853,425
122,600 First Brands Corp. 5,838,825
61,420 Oil-Dri Corporation of America 959,688
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11,973,250
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Education--1.98%
88,274 DeVRY, Inc.* 2,383,398
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Entertainment/Leisure--5.81%
149,500 Hasbro, Inc. 4,634,500
105,400 Johnson Worldwide Associates, Inc.,
Class A* 2,371,500
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7,006,000
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Environmental--2.28%
175,750 Safety Kleen Corp. 2,746,094
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Financial Services--10.54%
44,900 MBIA, Inc. 3,367,500
88,300 Northern Trust Corp. 4,944,800
201,925 Phoenix Duff & Phelps Corp. 1,388,234
61,100 T. Rowe Price Associates 3,009,175
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12,709,709
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Food/Restaurants--5.58%
161,233 Bob Evans Farms, Inc. 3,158,427
5
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Ariel Mutual Funds
Ariel Growth Fund
Schedule of Investments
December 31, 1995 (Unaudited)
Number COMMON STOCKS 97.63%--(continued) Value
of Shares
Food/Restaurants--5.58% (continued)
147,900 McCormick & Co., Inc. $ 3,568,088
------------
6,726,515
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Furniture & Furnishings--9.75%
281,000 Interface, Inc., Class A 4,777,000
108,000 Leggett & Platt, Inc. 2,619,000
145,695 Miller (Herman), Inc. 4,370,850
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11,766,850
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Health Care--3.18%
154,300 Bergen Brunswig Corp., Class A 3,838,212
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Industrial--1.38%
71,500 Watts Industries, Inc., Class A 1,662,375
------------
Miscellaneous--3.68%
235,400 Specialty Equipment Cos., Inc.* 2,707,100
59,400 Stanhome, Inc. 1,730,025
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4,437,125
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Newspapers--9.61%
464,410 American Media, Inc., Class A 1,973,743
154,600 Central Newspapers, Inc., Class A 4,850,575
241,200 Harte-Hanks Communications 4,763,700
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11,588,018
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Office & Business Equipment--4.43%
161,420 General Binding Corp. 3,188,045
124,000 Hunt Mfg. Co. 2,154,500
------------
5,342,545
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Packaging--3.85%
153,900 Sealright Co., Inc. 1,712,137
205,400 Shorewood Packaging Corp.* 2,926,950
------------
4,639,087
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Real Estate--5.17%
47,000 Merry Land and Investment Co., Inc. 1,110,375
251,400 Rouse Co. 5,122,275
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6,232,650
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6
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Ariel Mutual Funds
Ariel Growth Fund
Schedule of Investments
December 31, 1995 (Unaudited)
Number COMMON STOCKS 97.63%--(continued) Value
of Shares
Retailing--6.64%
126,400 Longs Drug Stores, Inc. $ 6,051,400
461,680 Payless Cashways, Inc.* 1,962,140
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8,013,540
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Total Common Stocks
(cost $92,109,267) 117,745,768
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Principal REPURCHASE AGREEMENTS 4.00%
Amount
$4,824,309 State Street Bank & Trust Company
Repurchase Agreement, 4.25%, dated
12/29/95, repurchase price $4,826,587,
maturing 1/2/96 (collateralized by U.S.
Treasury Bond, 8.75%, 5/15/17) 4,824,309
------------
Total Repurchase Agreements
(cost $4,824,309) 4,824,309
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Total Investments 101.63%
(cost $96,933,576) 122,570,077
Liabilities less
Other Assets and Cash (1.63)% (1,961,789)
------------
NET ASSETS 100.00% $120,608,288
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*Non-income producing security
7
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Ariel Mutual Funds
Ariel Appreciation Fund
Schedule of Investments
December 31, 1995 (Unaudited)
Number COMMON STOCKS 97.25% Value
of Shares
Advertising--3.22%
120,250 Omnicom Group, Inc. $ 4,479,313
------------
Apparel & Shoes--2.90%
145,600 Russell Corp. 4,040,400
------------
Autos & Transportation--1.63%
127,600 Harper Group, Inc. 2,264,900
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Business Services--3.74%
64,800 Ecolab, Inc. 1,944,000
152,600 Equifax, Inc. 3,261,825
------------
5,205,825
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Chemicals--2.25%
87,500 Morton International, Inc. 3,139,062
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Consumer Products--5.22%
153,800 Armor All Products Corp. 2,787,625
23,950 Clorox Co. 1,715,419
58,110 First Brands Corp. 2,767,489
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7,270,533
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Electronics--1.55%
63,800 Dovatron International, Inc.* 2,153,250
------------
Entertainment/Leisure--6.41%
161,140 Carnival Cruise Lines, Inc. 3,927,787
161,500 Hasbro, Inc. 5,006,500
------------
8,934,287
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Environmental--2.71%
241,800 Safety Kleen Corp. 3,778,125
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Financial Services--12.37%
54,700 MBIA, Inc. 4,102,500
70,320 MBNA Corp. 2,593,050
99,300 Northern Trust Corp. 5,560,800
185,750 Phoenix Duff & Phelps Corp. 1,277,031
8
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Ariel Mutual Funds
Ariel Appreciation Fund
Schedule of Investments
December 31, 1995 (Unaudited)
Number COMMON STOCKS 97.25%--(continued) Value
of Shares
Financial Services--12.37% (continued)
75,100 T. Rowe Price Associates $ 3,698,675
------------
17,232,056
------------
Food/Restaurants--5.65%
115,400 Bob Evans Farms, Inc. 2,192,600
92,055 McCormick & Co., Inc. 2,220,827
86,000 Universal Foods Corp. 3,450,750
------------
7,864,177
------------
Furniture & Furnishings--6.96%
349,400 INTERCO, Inc.* 3,144,600
153,860 Leggett & Platt, Inc. 3,731,105
94,100 Miller (Herman), Inc. 2,823,000
------------
9,698,705
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Health Care--7.51%
161,987 Bergen Brunswig Corp., Class A 4,029,427
46,800 Invacare Corp. 1,181,700
91,000 Sybron Corp.* 2,161,250
123,000 Vivra, Inc.* 3,090,375
------------
10,462,752
------------
Industrial--2.28%
136,600 Watts Industries, Inc., Class A 3,175,950
------------
Miscellaneous--3.75%
83,000 Fisher Scientific International 2,770,125
41,500 Specialty Equipment Cos., Inc.* 477,250
67,600 Stanhome, Inc. 1,968,850
------------
5,216,225
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Newspapers--5.38%
274,275 Harte-Hanks Communications 5,416,931
34,000 Tribune Co. 2,078,250
------------
7,495,181
------------
Office & Business Equipment--2.91%
129,305 General Binding Corp. 2,553,774
31,900 Pitney-Bowes, Inc. 1,499,300
------------
4,053,074
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9
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Ariel Mutual Funds
Ariel Appreciation Fund
Schedule of Investments
December 31, 1995 (Unaudited)
Number COMMON STOCKS 97.25%--(continued) Value
of Shares
Packaging--2.19%
214,470 Shorewood Packaging Corp.* $ 3,056,197
------------
Printing & Publishing--5.55%
83,750 Banta Corp. 3,685,000
35,700 Donnelley (R.R.) & Sons Co. 1,405,688
61,300 Houghton Mifflin Co. 2,635,900
------------
7,726,588
------------
Real Estate--7.79%
210,050 Merry Land and Investment Co., Inc. 4,962,431
289,150 Rouse Co. 5,891,431
------------
10,853,862
------------
Retailing--5.28%
115,920 Longs Drug Stores, Inc. 5,549,670
425,350 Payless Cashways, Inc.* 1,807,738
------------
7,357,408
------------
Total Common Stocks
(cost $106,231,347) 135,457,870
------------
Principal REPURCHASE AGREEMENTS 2.56%
Amount
$3,560,245 State Street Bank & Trust Company
Repurchase Agreement, 4.25%, dated
12/29/95, repurchase price $3,561,926,
maturing 1/2/96 (collateralized by U.S.
Treasury Bond, 8.75%, 5/15/17) 3,560,245
------------
Total Repurchase Agreements
(cost $3,560,245) 3,560,245
------------
Total Investments 99.81%
(cost $109,791,592) 139,018,115
Other Assets and Cash
less Liabilities 0.19% 263,866
------------
NET ASSETS 100.00% $139,281,981
============
*Non-income producing security
10
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11
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Ariel Mutual Funds News
FOCUS ON IRAs
What is an IRA?
An Individual Retirement Account is a personal, tax-deferred, retirement account
that a person with earned income can set up with a deposit limited to $2,000 per
year.
Why should I invest in an IRA?
An IRA offers investors the opportunity to earn a significantly greater return
for their retirement dollars than a taxable alternative. Since you pay no
federal income tax on dividends or capital gains, all earnings from an IRA grow
on a tax-deferred basis and are taxed upon withdrawal. Some investors are even
eligible for tax deductions on IRAs.
Can I set up an IRA even if I am self-employed?
Yes. A Simplified Employee Pension or "SEP" is a special IRA plan which permits
employers, including those who are self-employed, to make deductible
contributions to IRAs established for their employees.
Why should I open an Ariel Mutual Funds IRA?
Investing for retirement is a goal that demands patience and discipline. It
takes time to build the capital you'll need to retire comfortably and only
through a careful, long-term approach to investing can you hope to achieve
financial security.
Opening an IRA with the Ariel Mutual Funds can help you reach your goal. Our
unique patient investing philosophy is well suited for IRA investors who are
seeking to build wealth over the long term.
- --------------------------------------------------------------------------------
IT'S NOT TOO LATE TO MAKE 1995 CONTRIBUTIONS TO AN IRA
You can make 1995 contributions to an IRA account up until April 15, 1996. For
more information, please call an Ariel Mutual Funds Investor Services
Representative at 1-800-29-ARIEL (1-800-292-7435).
- --------------------------------------------------------------------------------
12
<PAGE>
THE BENEFITS OF INVESTING IN BOND FUNDS
Building Capital
Bond funds are attractive investments for those seeking a relatively
conservative way to build capital over the medium term.
Balancing a Portfolio
Bond mutual funds provide a practical method for complementing a
portfolio comprised mostly of growth-oriented investments.
Bonds Have Outpaced Short-Term Investments--and Inflation
Investors who have kept their money in bonds over longer periods
have been well rewarded over time. Bond returns are even more
attractive when compared to inflation, which erodes the value of
any investment.
- -------------------------------------------------------------------------------
You can take advantage of these benefits by investing in the newest
addition to the Ariel Mutual Funds family. The Ariel Premier Bond
Fund is a diversified portfolio of high-quality fixed income securities.
The Fund seeks to maximize total return to investors through a
combination of income and capital appreciation by investing in high-
quality, highly liquid fixed income securities.
- -------------------------------------------------------------------------------
For more information, including a prospectus and application, please call an
Ariel Mutual Funds Investor Services Representative at 1-800-29-ARIEL
(1-800-292-7435).
<PAGE>
Ariel Mutual Funds
Ariel Growth Fund
Ariel Appreciation Fund
Ariel Premier Bond Fund
Money Market Options
Cash Resource Money Market
U.S. Government Money Market
Cash Resource Tax-Exempt Money Market
For a free investment kit on any of the Ariel Mutual Funds, including a
prospectus containing more information, please call 1-800-29-ARIEL. Please
read the prospectus carefully before investing or sending money.
<PAGE>
Board of Directors
Bert N. Mitchell, C.P.A. Bert is founder, chairman and CEO of Mitchell & Titus,
LLP, the nation's largest minority-owned accounting firm. He holds B.B.A.,
M.B.A. and Honorary Doctorate degrees from the Baruch School of Business of the
City University of New York, where he has also been a member of the accounting
faculty. Bert is also a graduate of the Owner-President Management Program of
the Harvard Business School. Bert is active in community affairs, philanthropy
and politics.
Mario L. Baeza President of Wasserstein Perella International, a leading
international investment bank, CEO of its Latin American operations and co-head
of operations in Spain and Portugal. Mario is widely regarded as a preeminent
expert in business and legal issues in Latin America. He received a B.A. from
Cornell University and a J.D. from Harvard Law School, where he later taught.
William C. Dietrich, C.P.A. Bill is a director and vice president, treasurer and
CFO of Shopping Alternatives, Inc., a provider of home shopping services to the
retail grocery and pharmacy industries. He has a B.A. from Georgetown
University. Bill serves on the board and program staff of the Shalem Institute,
and internationally known ecumenical organization.
Royce N. Flippin, Jr. Director of program advancement for the Massachusetts
Institute of Technology, Royce is also president of Flippin Associates, a
broad-based consulting firm providing strategic and implementation services in
the management of critical needs for the public and private sectors. He earned
his B.A. from Princeton University and an M.B.A. from Harvard Business School.
Royce is on the board of several corporations and non-profit institutions.
John G. Guffey Currently, John is treasurer of Silby, Guffey & Co., Inc., a
venture capital firm investing in early stage companies in the health care and
environmental industries. John has a B.S. from the University of Pennsylvania's
Wharton School. He does volunteer work and holds directorships with various
local and national non-profit organizations.
Mellody Hobson As senior vice president and director of marketing, Mellody
oversees the servicing of Ariel Capital Management Inc.'s 32 institutional
clients, as well as the marketing of the Ariel Mutual Funds. She received a B.A.
from Princeton University's Woodrow Wilson School. Mellody works with a variety
of civic institutions, including those affiliated with Princeton.
Christopher G. Kennedy Chris is executive vice president of Merchandise Mart
Properties, Inc. which manages, among other prime properties, The Merchandise
Mart; The Washington Design Center; and New York's Decoration and Design
Building. He earned his B.A. from Boston College and his M.B.A. at the J.L.
Kellogg Graduate School of Management at Northwestern University. Chris serves
on the board of directors of the Chicago Convention & Tourism Bureau;
Boston-based Citizens Energy Corp. and Citizens Corp.; and the Greater Chicago
Food Depository.
Eric T. McKissack, CFA In the capacity of vice chairman & co-chief investment
officer of Ariel Capital Management, Inc., Eric is responsible for co-managing
client and mutual fund portfolios. He received a B.S. in both Management and
Architecture from the Massachusetts Institute of Technology and he earned his
M.B.A. from the University of California at Berkeley. He is also a Chartered
Financial Analyst. Eric serves on a variety of civic and corporate boards.
Ariel Investment Trust
307 North Michigan Avenue
Suite 500
Chicago, Illinois 60601
800.292.7435
312.726.0140
[LOGO RECYCLED PAPER] Printed on recycled paper Fax 312.726.7473
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