<PAGE>
Ariel Growth Fund (d/b/a Ariel Investment Trust)
Supplement dated May 17, 1996
to the Prospectus dated October 1, 1995
for the Ariel Premier Bond Fund - Institutional Class
EFFECTIVE MAY 14, 1996, THE FEES TO BE PAID UNDER THE INVESTMENT ADVISORY
AND ADMINISTRATIVE SERVICES AGREEMENTS BETWEEN ARIEL INVESTMENT TRUST (THE
"TRUST") AND ARIEL CAPITAL MANAGEMENT, INC. (THE "ADVISER") ARE REDUCED TO 0.35%
AND 0.10% OF AVERAGE NET ASSETS, RESPECTIVELY.
The following section replaces the section headed "Annual Fund operating
expenses" on pages 3 and 4:
Annual Fund operating expenses (as a percentage of average net assets)(1):
Management Fees 0.49%
12b-1 Fees 0.00%
Other Expenses(2) 0.00%
-----
Total Fund Operating Expenses(3) 0.49%
- ----------
(1) The operating expenses are annualized and are estimated for the fiscal year
ending September 30, 1996. The fees have been restated to reflect current fees.
Please refer to the section "Management and Organization of the Fund" for
further information.
(2) Pursuant to an Investment Advisory Agreement and an Administrative Services
Agreement, the Adviser pays all expenses of the Fund except fees under the
Agreements, interest, taxes, brokerage commissions and extraordinary expenses.
(3) THE CURRENT MANAGEMENT FEES ARE 0.45%. However, for the first seven months
of the fiscal year, the total Management Fees were 0.58%. Therefore, the Total
Fund Operating Expenses for the full fiscal year are estimated at 0.49%.
Example:
We can illustrate these expenses with the example below. You would pay the
following expenses on a $1,000 investment (assuming a 5% annual return and
redemption at the end of each period):
One Year $5
Three Years $16
Explanation of Table: The purpose of the table is to assist you in understanding
the various costs and expenses that an investor in the Institutional Class of
the Fund would bear directly (shareholder transaction costs) or indirectly
(annual fund operating expenses). The information is based on amounts for the
Fund's first fiscal year. Fees and expenses have been restated to reflect
current fees.
THE 5% RATE USED IN THE EXAMPLE IS FOR ILLUSTRATION PURPOSES ONLY AND IS NOT
INTENDED TO BE INDICATIVE OF THE FUTURE PERFORMANCE OF THE FUND, WHICH MAY BE
MORE OR LESS THAN THE ASSUMED RATE. ACTUAL EXPENSES MAY BE MORE OR LESS THAN
THOSE SHOWN.
<PAGE>
The following sentence replaces next to last sentence of first paragraph under
"Ariel Capital Management, Inc. serves as the Adviser to the Fund" on page 19:
Under the Investment Advisory Agreement, the Adviser is paid a fee based on the
average daily net assets of the Fund at the annual rate of 0.35%.
The following sentence replaces the last sentence of the first paragraph under
"Ariel Capital Management, Inc. serves as Administrator to the Fund" on page 23:
For services under the Administrative Services Agreement, the Institutional
Class pays a fee based on the average daily net assets of the Institutional
Class at the annual rates of 0.10%.
The following replaces the section entitled "Certain Shareholders of the Fund"
on page 34:
CERTAIN SHAREHOLDERS OF THE FUND
The Racine Construction Industry Pension Plan, 2100 N. Mayfair Road, Milwaukee,
WI 53226, may be deemed to control the Fund as a result of its ownership of
shares in the Fund.
<PAGE>
Ariel Growth Fund (d/b/a Ariel Investment Trust)
Supplement dated May 17, 1996
to the Statement of Additional Information dated October 1, 1995
for the Ariel Premier Bond Fund
The following is inserted before "Calculation of Performance Data" on page 16:
CERTAIN SHAREHOLDERS OF THE FUND
The following table sets forth, as of May 15, 1996, the name and holdings of
each person known by the Fund to be a record owner of more than 5% of its
outstanding shares. As of such date, there were no Investor Class shares
outstanding.
<TABLE>
<CAPTION>
PERCENTAGE OF
-------------
NAME AND ADDRESS NUMBER OF SHARES OWNED OUTSTANDING SHARES
- ---------------- ---------------------- ------------------
<S> <C> <C>
Racine Construction Industry Pension Plan 445,165.4890 62.58%
2100 N. Mayfair Rd.
Milwaukee, WI 53226
Ariel Capital Management 73,460.5880 10.30%
307 N. Michigan Avenue
Chicago, IL 60601
LaSalle National Trust Cust 50,125.0120 7.03%
FBO Oil-Dri Corporation of America
P.O. Box 3443
Chicago, IL 60690
</TABLE>
