<PAGE> PAGE 1
000 B000000 09/30/98
000 C000000 0000798365
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 ARIEL GROWTH
001 B000000 811-4786
001 C000000 3127260140
002 A000000 307 NORTH MICHIGAN AVENUE SUITE 500
002 B000000 CHICAGO
002 C000000 IL
002 D010000 60601
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 3
007 C010100 1
007 C020100 ARIEL GROWTH FUND
007 C030100 N
007 C010200 2
007 C020200 ARIEL APPRECIATION FUND
007 C030200 N
007 C010300 3
007 C020300 ARIEL PREMIER BOND FUND
007 C030300 N
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
008 A00AA01 ARIEL CAPITAL MANAGEMENT, INC.
008 B00AA01 A
008 C00AA01 801-18767
<PAGE> PAGE 2
008 D01AA01 CHICAGO
008 D02AA01 IL
008 D03AA01 60601
010 A00AA01 ARIEL CAPITAL MANAGEMENT, INC.
010 B00AA01 801-18767
010 C01AA01 CHICAGO
010 C02AA01 IL
010 C03AA01 60601
011 A00AA01 ARIEL DISTRIBUTORS, INC.
011 B00AA01 8-48238
011 C01AA01 CHICAGO
011 C02AA01 IL
011 C03AA01 60601
012 A00AA01 DST
012 B00AA01 84-0000
012 C01AA01 KANSAS CITY
012 C02AA01 MO
012 C03AA01 64105
013 A00AA01 ERNST & YOUNG LLP
013 B01AA01 CHICAGO
013 B02AA01 IL
013 B03AA01 60606
014 A00AA01 ARIEL DISTRIBUTORS, INC.
014 B00AA01 8-48238
015 A00AA01 STATE STREET BANK
015 B00AA01 C
015 C01AA01 KANSAS CITY
015 C02AA01 MO
015 C03AA01 64105
015 E01AA01 X
018 00AA00 Y
019 A00AA00 N
019 B00AA00 0
020 A000001 INSTINET CORP.
020 B000001 13-3443395
020 C000001 55
020 A000002 JEFFERIES & CO.
020 B000002 95-2622900
020 C000002 38
020 A000003 DAIWA SECURITIES
020 B000003 13-5680329
020 C000003 29
020 A000004 CANTOR FITZGERALD & CO.
020 B000004 13-3680184
020 C000004 26
020 A000005 BEAR STEARNS & CO.
020 B000005 13-3299429
020 C000005 14
020 A000006 FIRST ALBANY
020 B000006 14-1391446
020 C000006 13
<PAGE> PAGE 3
020 A000007 MERRILL LYNCH PIERCE FENNER
020 B000007 13-2629351
020 C000007 12
020 A000008 WEEDEN & CO.
020 B000008 13-3364318
020 C000008 11
020 A000009 BLAIR, WILLIAM & CO.
020 B000009 36-2214610
020 C000009 11
020 A000010 WILSHIRE ASSOC.
020 B000010 95-2755361
020 C000010 10
021 000000 292
022 A000001 STATE STREET BANK AND TRUST COMPANY
022 B000001 04-1867445
022 C000001 5170168
022 D000001 0
022 A000002 MERRILL LYNCH PIERCE FENNER
022 B000002 13-2629351
022 C000002 134937
022 D000002 18146
022 A000003 SALOMON BROTHERS
022 B000003 13-3082694
022 C000003 39993
022 D000003 25246
022 A000004 LEHMAN BROTHERS
022 B000004 13-2518466
022 C000004 50309
022 D000004 2724
022 A000005 CG FIRST BOSTON CORP.
022 B000005 13-5659485
022 C000005 27264
022 D000005 14151
022 A000006 FORD FINANCIAL SERVICES
022 C000006 30761
022 D000006 3393
022 A000007 GOLDMAN SACHS
022 B000007 13-5108880
022 C000007 12299
022 D000007 15004
022 A000008 MORGAN STANLEY, DEAN WITTER
022 B000008 13-2655998
022 C000008 9700
022 D000008 7884
022 A000009 NORWEST
022 B000009 41-1508325
022 C000009 17213
022 D000009 0
022 A000010 FIRST CHICAGO
022 B000010 36-3595942
022 C000010 16816
<PAGE> PAGE 4
022 D000010 0
023 C000000 5551056
023 D000000 97822
024 00AA00 N
025 D00AA01 0
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
025 D00AA08 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
055 A00AA00 N
055 B00AA00 N
056 00AA00 Y
057 00AA00 N
070 A01AA00 Y
070 A02AA00 Y
070 B01AA00 N
070 B02AA00 N
070 C01AA00 N
070 C02AA00 N
070 D01AA00 N
070 D02AA00 N
070 E01AA00 N
070 E02AA00 N
<PAGE> PAGE 5
070 F01AA00 N
070 F02AA00 N
070 G01AA00 N
070 G02AA00 N
070 H01AA00 N
070 H02AA00 N
070 I01AA00 N
070 I02AA00 N
070 J01AA00 Y
070 J02AA00 Y
070 K01AA00 N
070 K02AA00 N
070 L01AA00 N
070 L02AA00 N
070 M01AA00 N
070 M02AA00 N
070 N01AA00 Y
070 N02AA00 N
070 O01AA00 Y
070 O02AA00 N
070 P01AA00 Y
070 P02AA00 N
070 Q01AA00 N
070 Q02AA00 N
070 R01AA00 N
070 R02AA00 N
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 Y
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 AON FINANCIAL SERVICES GROUP, INC.
080 C00AA00 900000
081 A00AA00 Y
081 B00AA00 2
082 A00AA00 N
<PAGE> PAGE 6
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
028 A010100 37299
028 A020100 0
028 A030100 0
028 A040100 28710
028 B010100 33792
028 B020100 0
028 B030100 0
028 B040100 37643
028 C010100 32259
028 C020100 7
028 C030100 0
028 C040100 40190
028 D010100 9048
028 D020100 0
028 D030100 0
028 D040100 9369
028 E010100 2206
028 E020100 0
028 E030100 0
028 E040100 3042
028 F010100 5471
028 F020100 0
028 F030100 0
028 F040100 2949
028 G010100 120075
028 G020100 7
028 G030100 0
028 G040100 121903
028 H000100 0
029 000100 N
030 A000100 0
030 B000100 0.00
030 C000100 0.00
031 A000100 0
031 B000100 0
032 000100 0
033 000100 0
034 000100 N
035 000100 0
036 B000100 0
037 000100 N
038 000100 0
039 000100 Y
040 000100 Y
<PAGE> PAGE 7
041 000100 Y
042 A000100 15
042 B000100 32
042 C000100 0
042 D000100 34
042 E000100 0
042 F000100 0
042 G000100 19
042 H000100 0
043 000100 446
044 000100 144
045 000100 Y
046 000100 N
047 000100 Y
048 000100 0.000
048 A010100 500000
048 A020100 0.650
048 B010100 500000
048 B020100 0.600
048 C010100 0
048 C020100 0.000
048 D010100 0
048 D020100 0.000
048 E010100 0
048 E020100 0.000
048 F010100 0
048 F020100 0.000
048 G010100 0
048 G020100 0.000
048 H010100 0
048 H020100 0.000
048 I010100 0
048 I020100 0.000
048 J010100 0
048 J020100 0.000
048 K010100 1000000
048 K020100 0.550
049 000100 N
050 000100 N
051 000100 N
052 000100 N
053 A000100 Y
053 B000100 Y
053 C000100 N
058 A000100 N
059 000100 Y
060 A000100 Y
060 B000100 Y
061 000100 1000
062 A000100 N
062 B000100 0.0
<PAGE> PAGE 8
062 C000100 0.0
062 D000100 0.0
062 E000100 0.0
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 0.0
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
063 A000100 0
063 B000100 0.0
066 A000100 Y
066 B000100 Y
066 C000100 N
066 D000100 N
066 E000100 N
066 F000100 N
066 G000100 N
067 000100 N
068 A000100 N
068 B000100 N
069 000100 N
071 A000100 53475
071 B000100 36977
071 C000100 168412
071 D000100 22
072 A000100 12
072 B000100 404
072 C000100 2286
072 D000100 0
072 E000100 0
072 F000100 1159
072 G000100 0
072 H000100 0
072 I000100 329
072 J000100 23
072 K000100 0
072 L000100 77
072 M000100 32
072 N000100 30
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 20
<PAGE> PAGE 9
072 S000100 15
072 T000100 446
072 U000100 0
072 V000100 0
072 W000100 22
072 X000100 2153
072 Y000100 0
072 Z000100 537
072AA000100 22618
072BB000100 5457
072CC010100 0
072CC020100 23286
072DD010100 580
072DD020100 0
072EE000100 14358
073 A010100 0.1439
073 A020100 0.0000
073 B000100 3.5738
073 C000100 0.0000
074 A000100 0
074 B000100 2950
074 C000100 0
074 D000100 0
074 E000100 0
074 F000100 160569
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 0
074 K000100 0
074 L000100 362
074 M000100 18
074 N000100 163899
074 O000100 1373
074 P000100 115
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 132
074 S000100 0
074 T000100 162279
074 U010100 4447
074 U020100 0
074 V010100 36.49
074 V020100 0.00
074 W000100 0.0000
074 X000100 9282
074 Y000100 0
075 A000100 0
075 B000100 176635
<PAGE> PAGE 10
076 000100 0.00
028 A010200 20391
028 A020200 0
028 A030200 0
028 A040200 16696
028 B010200 14950
028 B020200 1
028 B030200 0
028 B040200 16351
028 C010200 13173
028 C020200 1
028 C030200 0
028 C040200 14427
028 D010200 5990
028 D020200 0
028 D030200 0
028 D040200 6759
028 E010200 4279
028 E020200 0
028 E030200 0
028 E040200 4917
028 F010200 8576
028 F020200 0
028 F030200 0
028 F040200 4017
028 G010200 67359
028 G020200 2
028 G030200 0
028 G040200 63167
028 H000200 0
029 000200 N
030 A000200 0
030 B000200 0.00
030 C000200 0.00
031 A000200 0
031 B000200 0
032 000200 0
033 000200 0
034 000200 N
035 000200 0
036 B000200 0
037 000200 N
038 000200 0
039 000200 Y
040 000200 Y
041 000200 Y
042 A000200 14
042 B000200 29
042 C000200 0
042 D000200 41
042 E000200 0
<PAGE> PAGE 11
042 F000200 0
042 G000200 16
042 H000200 0
043 000200 546
044 000200 258
045 000200 Y
046 000200 N
047 000200 Y
048 000200 0.000
048 A010200 500000
048 A020200 0.750
048 B010200 500000
048 B020200 0.700
048 C010200 0
048 C020200 0.000
048 D010200 0
048 D020200 0.000
048 E010200 0
048 E020200 0.000
048 F010200 0
048 F020200 0.000
048 G010200 0
048 G020200 0.000
048 H010200 0
048 H020200 0.000
048 I010200 0
048 I020200 0.000
048 J010200 0
048 J020200 0.000
048 K010200 1000000
048 K020200 0.650
049 000200 N
050 000200 N
051 000200 N
052 000200 N
053 A000200 Y
053 B000200 Y
053 C000200 N
058 A000200 N
059 000200 Y
060 A000200 Y
060 B000200 Y
061 000200 1000
062 A000200 N
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 0.0
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
<PAGE> PAGE 12
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
063 A000200 0
063 B000200 0.0
066 A000200 Y
066 B000200 Y
066 C000200 N
066 D000200 N
066 E000200 N
066 F000200 N
066 G000200 N
067 000200 N
068 A000200 N
068 B000200 N
069 000200 N
071 A000200 68704
071 B000200 40583
071 C000200 206976
071 D000200 20
072 A000200 12
072 B000200 426
072 C000200 2883
072 D000200 0
072 E000200 0
072 F000200 1637
072 G000200 0
072 H000200 0
072 I000200 345
072 J000200 24
072 K000200 0
072 L000200 74
072 M000200 32
072 N000200 36
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 22
072 S000200 15
072 T000200 546
072 U000200 0
072 V000200 0
072 W000200 25
072 X000200 2756
<PAGE> PAGE 13
072 Y000200 0
072 Z000200 553
072AA000200 25353
072BB000200 27
072CC010200 0
072CC020200 19712
072DD010200 394
072DD020200 0
072EE000200 17506
073 A010200 0.0676
073 A020200 0.0000
073 B000200 3.0653
073 C000200 0.0000
074 A000200 0
074 B000200 9395
074 C000200 0
074 D000200 0
074 E000200 0
074 F000200 207708
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 0
074 K000200 0
074 L000200 322
074 M000200 26
074 N000200 217451
074 O000200 3333
074 P000200 168
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 138
074 S000200 0
074 T000200 213812
074 U010200 6723
074 U020200 0
074 V010200 31.80
074 V020200 0.00
074 W000200 0.0000
074 X000200 10766
074 Y000200 0
075 A000200 0
075 B000200 215435
076 000200 0.00
028 A010300 1397
028 A020300 635
028 A030300 0
028 A040300 1488
028 B010300 4031
<PAGE> PAGE 14
028 B020300 0
028 B030300 0
028 B040300 608
028 C010300 4353
028 C020300 701
028 C030300 0
028 C040300 992
028 D010300 2496
028 D020300 663
028 D030300 0
028 D040300 1226
028 E010300 7913
028 E020300 688
028 E030300 0
028 E040300 1314
028 F010300 5657
028 F020300 696
028 F030300 0
028 F040300 5581
028 G010300 25847
028 G020300 3383
028 G030300 0
028 G040300 11209
028 H000300 0
029 000300 N
030 A000300 0
030 B000300 0.00
030 C000300 0.00
031 A000300 0
031 B000300 0
032 000300 0
033 000300 0
034 000300 N
035 000300 0
036 B000300 0
037 000300 N
038 000300 0
039 000300 Y
040 000300 Y
041 000300 Y
042 A000300 18
042 B000300 37
042 C000300 0
042 D000300 21
042 E000300 0
042 F000300 0
042 G000300 24
042 H000300 0
043 000300 2
044 000300 0
045 000300 Y
<PAGE> PAGE 15
046 000300 N
047 000300 Y
048 000300 0.350
048 A010300 0
048 A020300 0.000
048 B010300 0
048 B020300 0.000
048 C010300 0
048 C020300 0.000
048 D010300 0
048 D020300 0.000
048 E010300 0
048 E020300 0.000
048 F010300 0
048 F020300 0.000
048 G010300 0
048 G020300 0.000
048 H010300 0
048 H020300 0.000
048 I010300 0
048 I020300 0.000
048 J010300 0
048 J020300 0.000
048 K010300 0
048 K020300 0.000
049 000300 N
050 000300 N
051 000300 N
052 000300 N
053 A000300 Y
053 B000300 Y
053 C000300 N
058 A000300 N
059 000300 Y
060 A000300 Y
060 B000300 Y
061 000300 1000
062 A000300 Y
062 B000300 0.0
062 C000300 0.0
062 D000300 4.9
062 E000300 0.0
062 F000300 0.0
062 G000300 0.0
062 H000300 0.0
062 I000300 12.1
062 J000300 0.0
062 K000300 0.0
062 L000300 0.0
062 M000300 17.2
062 N000300 24.5
<PAGE> PAGE 16
062 O000300 0.0
062 P000300 16.2
062 Q000300 33.9
062 R000300 0.0
063 A000300 0
063 B000300 8.7
064 A000300 Y
064 B000300 N
066 A000300 N
067 000300 N
068 A000300 N
068 B000300 N
069 000300 N
071 A000300 109088
071 B000300 63459
071 C000300 106166
071 D000300 60
072 A000300 12
072 B000300 8138
072 C000300 0
072 D000300 0
072 E000300 0
072 F000300 581
072 G000300 0
072 H000300 0
072 I000300 0
072 J000300 0
072 K000300 0
072 L000300 0
072 M000300 0
072 N000300 0
072 O000300 0
072 P000300 0
072 Q000300 0
072 R000300 0
072 S000300 0
072 T000300 2
072 U000300 0
072 V000300 0
072 W000300 0
072 X000300 583
072 Y000300 0
072 Z000300 7555
072AA000300 1986
072BB000300 98
072CC010300 3368
072CC020300 0
072DD010300 7559
072DD020300 0
072EE000300 832
073 A010300 0.6075
<PAGE> PAGE 17
073 A020300 0.5720
073 B000300 0.0729
073 C000300 0.0000
074 A000300 0
074 B000300 7398
074 C000300 18362
074 D000300 139289
074 E000300 0
074 F000300 0
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 0
074 K000300 0
074 L000300 1314
074 M000300 0
074 N000300 166363
074 O000300 13752
074 P000300 56
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 799
074 S000300 0
074 T000300 151756
074 U010300 14103
074 U020300 167
074 V010300 10.63
074 V020300 10.63
074 W000300 0.0000
074 X000300 342
074 Y000300 0
075 A000300 0
075 B000300 127659
076 000300 0.00
SIGNATURE JON KIEKHOFER
TITLE FINANCIAL ANALYST
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000798365
<NAME> ARIEL GROWTH FUND
<SERIES>
<NUMBER> 1
<NAME> ARIEL GROWTH FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 115,937,670
<INVESTMENTS-AT-VALUE> 163,519,418
<RECEIVABLES> 361,673
<ASSETS-OTHER> 18,347
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 163,899,438
<PAYABLE-FOR-SECURITIES> 1,372,994
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 247,736
<TOTAL-LIABILITIES> 1,620,730
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 97,368,256
<SHARES-COMMON-STOCK> 4,446,857
<SHARES-COMMON-PRIOR> 3,954,806
<ACCUMULATED-NII-CURRENT> 254,687
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 17,074,017
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 47,581,748
<NET-ASSETS> 162,278,708
<DIVIDEND-INCOME> 2,285,967
<INTEREST-INCOME> 403,538
<OTHER-INCOME> 0
<EXPENSES-NET> (2,153,007)
<NET-INVESTMENT-INCOME> 536,498
<REALIZED-GAINS-CURRENT> 17,160,907
<APPREC-INCREASE-CURRENT> (23,286,493)
<NET-CHANGE-FROM-OPS> (5,589,088)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (580,333)
<DISTRIBUTIONS-OF-GAINS> (14,358,164)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,005,752
<NUMBER-OF-SHARES-REDEEMED> 7,859,564
<SHARES-REINVESTED> 345,863
<NET-CHANGE-IN-ASSETS> (1,786,753)
<ACCUMULATED-NII-PRIOR> 296,358
<ACCUMULATED-GAINS-PRIOR> 14,273,438
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,159,454
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,153,007
<AVERAGE-NET-ASSETS> 176,635,240
<PER-SHARE-NAV-BEGIN> 41.49
<PER-SHARE-NII> 0.13
<PER-SHARE-GAIN-APPREC> (1.41)
<PER-SHARE-DIVIDEND> (0.14)
<PER-SHARE-DISTRIBUTIONS> (3.58)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 36.49
<EXPENSE-RATIO> 1.21
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000798365
<NAME> ARIEL GROWTH FUND
<SERIES>
<NUMBER> 2
<NAME> ARIEL APPRECIATION FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 156,403,276
<INVESTMENTS-AT-VALUE> 217,102,261
<RECEIVABLES> 322,445
<ASSETS-OTHER> 26,483
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 217,451,189
<PAYABLE-FOR-SECURITIES> 3,333,097
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 305,689
<TOTAL-LIABILITIES> 3,638,786
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 127,648,590
<SHARES-COMMON-STOCK> 6,722,858
<SHARES-COMMON-PRIOR> 5,533,096
<ACCUMULATED-NII-CURRENT> 262,188
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 25,202,640
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 60,698,985
<NET-ASSETS> 213,812,403
<DIVIDEND-INCOME> 2,883,413
<INTEREST-INCOME> 425,555
<OTHER-INCOME> 0
<EXPENSES-NET> (2,756,170)
<NET-INVESTMENT-INCOME> 552,798
<REALIZED-GAINS-CURRENT> 25,325,874
<APPREC-INCREASE-CURRENT> (19,712,453)
<NET-CHANGE-FROM-OPS> 6,166,219
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (393,585)
<DISTRIBUTIONS-OF-GAINS> (17,505,645)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,885,967
<NUMBER-OF-SHARES-REDEEMED> 4,187,549
<SHARES-REINVESTED> 491,344
<NET-CHANGE-IN-ASSETS> 27,334,297
<ACCUMULATED-NII-PRIOR> 95,385
<ACCUMULATED-GAINS-PRIOR> 17,390,001
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,637,377
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,756,170
<AVERAGE-NET-ASSETS> 215,435,215
<PER-SHARE-NAV-BEGIN> 33.70
<PER-SHARE-NII> 0.09
<PER-SHARE-GAIN-APPREC> 1.14
<PER-SHARE-DIVIDEND> (0.07)
<PER-SHARE-DISTRIBUTIONS> (3.06)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 31.80
<EXPENSE-RATIO> 1.26
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000798365
<NAME> ARIEL GROWTH FUND
<SERIES>
<NUMBER> 4
<NAME> ARIEL PREMIER BOND FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 160,096,884
<INVESTMENTS-AT-VALUE> 165,049,568
<RECEIVABLES> 1,313,898
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 166,363,466
<PAYABLE-FOR-SECURITIES> 13,752,312
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 855,221
<TOTAL-LIABILITIES> 14,607,533
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 145,207,323
<SHARES-COMMON-STOCK> 167,402
<SHARES-COMMON-PRIOR> 39,000
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,595,926
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,952,684
<NET-ASSETS> 151,755,933
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 8,137,888
<OTHER-INCOME> 0
<EXPENSES-NET> (583,423)
<NET-INVESTMENT-INCOME> 7,554,465
<REALIZED-GAINS-CURRENT> 1,888,489
<APPREC-INCREASE-CURRENT> 3,368,397
<NET-CHANGE-FROM-OPS> 12,811,351
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (7,558,515)
<DISTRIBUTIONS-OF-GAINS> (832,076)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 157,274
<NUMBER-OF-SHARES-REDEEMED> 32,982
<SHARES-REINVESTED> 4,110
<NET-CHANGE-IN-ASSETS> 37,356,722
<ACCUMULATED-NII-PRIOR> 4,050
<ACCUMULATED-GAINS-PRIOR> 539,513
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 581,261
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 583,423
<AVERAGE-NET-ASSETS> 827,442
<PER-SHARE-NAV-BEGIN> 10.29
<PER-SHARE-NII> 0.57
<PER-SHARE-GAIN-APPREC> 0.41
<PER-SHARE-DIVIDEND> (0.57)
<PER-SHARE-DISTRIBUTIONS> (0.07)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.63
<EXPENSE-RATIO> 0.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Report of Independent Auditors
To the Board of Trustees of
The Ariel Appreciation Fund, the Ariel Growth Fund and the Ariel
Premier Bond Fund
In planning and performing our audit of the financial statements of The
Ariel Appreciation Fund, the Ariel Growth Fund and the Ariel Premier
Bond Fund (the Funds), for the year ended September 30, 1998, we
considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing procedures
for the purpose of expressing our opinion on the financial statements and
to comply with the requirements of Form N-SAR, and not to provide
assurance on internal control.
The management of the Funds is responsible for establishing and
maintaining internal control. In fulfilling this responsibility, estimates
and judgments by management are required to assess the expected
benefits and related costs of controls. Generally, controls that are
relevant to an audit pertain to the entitys objective of preparing
financial statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles. Those
controls include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may
occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of one or more of the specific internal control components
does not reduce to a relatively low level the risk that errors or fraud in
amounts that would be material in relation to the financial statements
being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions.
However, we noted no matters involving internal control and its
operation, including controls for safeguarding securities, that we
consider to be material weaknesses as defined above at September 30,
1998.
This report is intended solely for the information and use of the Board of
Trustees and management of The Ariel Appreciation Fund, the Ariel
Growth Fund, the Ariel Premier Bond Fund and the Securities and
Exchange Commission.
Chicago, Illinois
October 16, 1998
Exhibit to Accompany
Item 77J (b)
Form N-SAR
Ariel Growth Fund
(the Funds)
According to the provisions of Statement of Position
93 - 2 (SOP 93 - 2) Determination, Disclosure and
Financial Statement Presentation of Income, Capital
Gain and Return of Capital Distributions by
Investment Companies, the Funds are required to
report the accumulated net investment income (loss)
and accumulated net capital gain (loss) accounts to
approximate amounts available for future distributions
on a tax basis (or to in the Ariel Growth Fund and the
Ariel Appreciation Fund were recorded to
undistributed net investment income to reduce
accumulated net realized gain on investment
transactions by $2,164 and $7, 590, respectively.
These reclassifications have no impact on the net asset
of the Funds and its designed to present the Funds
accumulated net realized income and gain accounts on
a tax basis.
