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15 important things you should know about Ariel Investments ARFFX mutual fund

Updated: September 09, 2020
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Bull Case
  • No Bull case arguments for now!
Bear Case
  • Low net assets
  • 3-year return below the benchmark
  • 5-year return below the benchmark
  • 10-year return below the benchmark
  • 15-year return below the benchmark
  • High expense ratio
  • Sales load and/or distribution fees

Before we start: if you’re looking for ARFFX “stock” price, you can quickly find it out by visiting Finny and typing "ARFFX quote". If you’re looking for a quick scoop on ARFFX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "ARFFX". You’ll get all this info in one place.

Are you looking to buy or sell ARFFX? Or perhaps you’re looking for ARFFX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this ARFFX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: ARFFX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: ARFFX buy or sell; the pros and cons of investing in ARFFX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to ARFFX.

And here is the list of questions we’ll answer:

  1. Describe Ariel Investment Trust: Ariel Focus Fund; Investor Class Shares (ARFFX).
  2. What are ARFFX holdings?
  3. What is ARFFX performance? What are ARFFX historical returns?
  4. How many up and down years did ARFFX have historically?
  5. What is ARFFX dividend yield?
  6. What is ARFFX minimum initial investment amount?
  7. What is ARFFX expense ratio?
  8. Does ARFFX have any sales loads or 12b-1 distribution expenses?
  9. What is ARFFX tax efficiency (tax-cost ratio)?
  10. What is ARFFX beta? How would you assess ARFFX risk?
  11. What is ARFFX Sharpe ratio?
  12. What is ARFFX Finny Score? ARFFX buy or sell?
  13. What are the pros of investing in ARFFX? What are ARFFX buy reasons?
  14. What are the cons of investing in ARFFX? What are ARFFX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe Ariel Investment Trust: Ariel Focus Fund; Investor Class Shares (ARFFX).

The Fund seeks long-term capital appreciation by investing in undervalued companies that show strong potential for growth. The Fund invests primarily in the stocks of companies with market capitalizations generally in excess of $10 billion at the time of initial purchase.

2. What are ARFFX top holdings?

ARFFX has 28 stock holdings and 0 bond holdings.

The top 10 holdings represent 47.29% of total assets. Here are the top holdings:

Name Symbol % Assets
Snap-on Inc SNA 5.46%
Oracle Corp ORCL 5.38%
Goldman Sachs Group Inc GS 4.95%
Zimmer Biomet Holdings Inc ZBH 4.91%
The Western Union Co WU 4.76%
ViacomCBS Inc Class B VIAC 4.76%
BorgWarner Inc BWA 4.48%
Lazard Ltd Shs A LAZ 4.42%
KKR & Co Inc Ordinary Shares KKR 4.37%
Lockheed Martin Corp LMT 3.80%

3. What is ARFFX performance? What are ARFFX historical returns?

ARFFX has generated the following returns:

  • 1-month return is 3.95%;
  • 3-month return is 4.99%;
  • 1-year return is 2.67%;
  • 3-year return is 2.73%;
  • 5-year return is 6.22%;
  • 10-year return is 8.02%;
  • 15-year return is 4.91%.

4. How many up and down years did ARFFX have historically?

In the last 10 years, ARFFX had 7 up years and 3 down years.

5. What is ARFFX dividend yield?

ARFFX yield is 1.03%.

6. What is ARFFX minimum initial investment amount?

ARFFX minimum initial investment amount is $3.00K.

7. What is ARFFX expense ratio?

ARFFX expense ratio is 1%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. Does ARFFX have any sales loads or 12b-1 distribution expenses?

ARFFX 12b-1 distribution fee is 0.25. ARFFX front-end sales load is 0. ARFFX back-end sales load is 0.

9. What is ARFFX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 0.42%;
  • 3-year ax cost ratio is 1.34%.

10. What is ARFFX beta? How would you assess ARFFX risk?

  • 3-year beta is 1.36;
  • 5-year beta is 1.32;
  • 10-year beta is 1.25.

11. What is ARFFX Sharpe ratio?

  • 3-year Sharpe ratio is 0.02;
  • 5-year Sharpe ratio is 0.14;
  • 10-year Sharpe ratio is 0.48.

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 0. Our quantitative analysis shows 0 reasons to buy and 7 reasons to sell it, resulting in the Finny Score of 0.

13. What are the pros of investing in ARFFX? What are ARFFX buy reasons?

We don't see any strong reasons to buy ARFFX.

14. What are the cons of investing in ARFFX? What are ARFFX negatives?

The following are ARFFX weaknesses from our perspective:

  • ARFFX net assets are $46.30 million. This fund is not a popular choice with retail investors.
  • ARFFX 3-year return is 2.73%, which is lower than the 3-year return of the benchmark index (Russell 1000 Value TR USD), 4.23%.
  • ARFFX 5-year return is 6.22%, which is lower than the 5-year return of the benchmark index (Russell 1000 Value TR USD), 8.09%.
  • ARFFX 10-year return is 8.02%, which is lower than the 10-year return of the benchmark index (Russell 1000 Value TR USD), 10.44%.
  • ARFFX 15-year return is 4.91%, which is lower than the 15-year return of the benchmark index (Russell 1000 Value TR USD), 6.59%.
  • ARFFX expense ratio is 1%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • Warning: this fund has a 12b1 sales fee. The maximum 12b1 fee is 0.25%. A 12b-1 fee is an annual marketing or distribution fee on a mutual fund.
In the ARFFX review, we covered ARFFX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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