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

Updated: September 10, 2020
33
Bull Case
  • 10-year return above the benchmark
  • No sales load or distribution fees
Bear Case
  • Low net assets
  • 3-year return below the benchmark
  • 5-year return below the benchmark
  • High expense ratio

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

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

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

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

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

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

Fact Sheet

1. Describe Ariel Investment Trust: Ariel Appreciation Fund; Institutional Class Shares (CAAIX).

The Fund seeks long-term growth by investing in equities of issues which are undervalued, but demonstrate potential for growth. The Fund invests primarily in common stocks of U.S. companies and the Fund generally will have a weighted average market capitalization between $2 billion and $15 billion.

2. What are CAAIX top holdings?

CAAIX has 40 stock holdings and 0 bond holdings.

The top 10 holdings represent 39.00% of total assets. Here are the top holdings:

Name Symbol % Assets
Northern Trust Corp NTRS 4.59%
Stanley Black & Decker Inc SWK 4.59%
BorgWarner Inc BWA 4.02%
Kennametal Inc KMT 3.94%
Progressive Corp PGR 3.89%
Mattel Inc MAT 3.88%
The Interpublic Group of Companies Inc IPG 3.72%
Lazard Ltd Shs A LAZ 3.47%
BOK Financial Corp BOKF 3.46%
Laboratory Corp of America Holdings LH 3.44%

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

CAAIX has generated the following returns:

  • 1-month return is 3.52%;
  • 3-month return is 2.22%;
  • 1-year return is 1.14%;
  • 3-year return is 2.06%;
  • 5-year return is 4.97%;
  • 10-year return is 9.49%.

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

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

5. What is CAAIX dividend yield?

CAAIX yield is 1.27%.

6. What is CAAIX minimum initial investment amount?

CAAIX minimum initial investment amount is $1.00M.

7. What is CAAIX expense ratio?

CAAIX expense ratio is 0.82%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

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

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

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

  • 1-year ax cost ratio is 2.03%;
  • 3-year ax cost ratio is 2.37%.

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

  • 3-year beta is 1.28;
  • 5-year beta is 1.28;
  • 10-year beta is 1.33.

11. What is CAAIX Sharpe ratio?

  • 3-year Sharpe ratio is -0.04;
  • 5-year Sharpe ratio is 0.10;
  • 10-year Sharpe ratio is 0.55.

Analysis

12. What is Finny Score? buy or sell?

Finny Score is 33. Our quantitative analysis shows 2 reasons to buy and 4 reasons to sell it, resulting in the Finny Score of 33.

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

The following are CAAIX strengths from our perspective:

  • CAAIX 10-year return is 9.49%, which is in line with the 10-year return of the benchmark index (Russell Mid Cap Value TR USD), 10.31%.
  • Good news: this fund does not have 12b1, front-end or back-end sales fees.

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

The following are CAAIX weaknesses from our perspective:

  • CAAIX net assets are $268.80 million. This fund is not a popular choice with retail investors.
  • CAAIX 3-year return is 2.06%, which is lower than the 3-year return of the benchmark index (Russell Mid Cap Value TR USD), 2.36%.
  • CAAIX 5-year return is 4.97%, which is lower than the 5-year return of the benchmark index (Russell Mid Cap Value TR USD), 6.76%.
  • CAAIX expense ratio is 0.82%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
In the CAAIX review, we covered CAAIX 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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