Disclaimers

Disclaimer


Firm Definition:  ARI Group, LLC is an investment management firm that includes the following entities: 1) ARI Group, LLC (“ARI”) is an US based investment adviser and a Delaware limited liability corporation. The entity is a registered investment advisor with the SEC under the Investment Adviser Act of 1940; and 2) Applied Research Investment Advisors Inc., a Canadian investment advisor incorporated under the Canada Business Corporations Act. Registration with the SEC does not imply any level of expertise or training.


Composite Description:


  • ARI EAFE Composite Description: The investment objective of ARI EAFE Composite is to seek long-term growth of capital through investment primarily in equity securities of companies in developed countries located outside the U.S and Canada. The strategy may invest a portion of total assets in companies in emerging markets. ARI follows a proprietary investment process to identify attractive opportunities and ideas. The process includes quantitative stock screening followed by extensive internal fundamental bottom-up research process, proprietary portfolio construction and risk management, which is regularly monitored. The Composite creation date is 03/01/2017 and the inception date is 07/01/2012.


  • ARI Emerging Markets Composite Description: The investment objective of ARI Emerging Markets Composite is to seek long-term growth of capital through investment primarily in equity securities of companies in emerging markets and other investments that are tied economically to emerging markets. ARI follows a proprietary investment process to identify attractive opportunities and ideas. The process includes quantitative stock screening followed by extensive internal fundamental bottom-up research process, proprietary portfolio construction and risk management, which is regularly monitored. The Composite creation date is 04/01/2017 and the inception date is 05/01/2017.


  • ARI ACWI ex US Composite Description: The investment objective of ARI ACWI ex US Composite is to seek long-term growth of capital through investment primarily in equity securities of companies in developed countries located outside the U.S. The strategy may invest a portion of total assets in companies in emerging markets. The process includes quantitative stock screening followed by extensive internal fundamental bottom-up research process, proprietary portfolio construction and risk management, which is regularly monitored.  The Composite creation date is 10/1/2018. The composite was redefined as of 01/01/2022 to include accounts that invest in ADRs.


  • ARI Global Composite Description: The investment objective of ARI Global Composite is to seek long-term growth of capital through investment primarily in equity securities of companies in Europe, the Far East, and the Pacific Basin, and the Americas. The strategy may invest a portion of total assets in companies in emerging markets. ARI follows a proprietary investment process to identify attractive opportunities and ideas. The process includes quantitative stock screening followed by extensive internal fundamental bottom-up research process, proprietary portfolio construction and risk management, which is regularly monitored. The Composite creation date is 03/01/2017 and the inception date is 04/01/2017.


  • ARI Global Opportunities Composite Description: The investment objective of ARI Global Opportunities Composite is to seek long-term growth of capital through investment primarily in equity securities of companies that are involved in the development, application, production, or distribution of scientific and technology-based products and services as well as the mid and large cap companies classified in the healthcare sector. ARI follows a proprietary investment process to identify attractive opportunities and ideas. The process includes quantitative stock screening followed by extensive internal fundamental bottom-up research process, proprietary portfolio construction and risk management, which is regularly monitored. The Composite creation date is 3/1/2017 and the inception date is 09/01/2009.


  • To obtain a compliant presentation and the firm’s list of composite descriptions, please contact Amira Strasser at (212) 419-0573 or by email: strasser@arinvgroup.com.


*Firm-wide GIPS compliance and GIPS Verification:

       

ARI Group, LLC (“ARI”) claims compliance with the Global Investment Performance Standards (GIPS®).


  • ARI EAFE Composite was managed by prior financial institution for the periods from July 1, 2012, to April 30, 2017.


  • ARI Global Opportunities Composite was managed by prior financial institution for the periods from September 1, 2009, to April 30, 2017.


  • GIPS® is a registered trademark of CFA Institute.  CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.


Notes:


  • Composite returns are calculated gross of management and custodial fees but net of non-reclaimable withholding taxes on dividends, interest income and capital gains at trade date. Net returns reflect the deduction of the highest advisory fees of 1%.


  • The U.S. Dollar is the currency used to express performance.


  • The performance includes the reinvestment return.


  • Please note that the performance is preliminary due to treatment of dividend accrual. ARI will reissue the statement if the difference between final and preliminary performance is out of the error range +/- 5bps.


  • 1Morningstar Rating: Morningstar uses the Morningstar Category as the primary peer group for a number of calculations, including percentile ranks, fund-versus-category-average comparisons, and the Morningstar Rating. The Morningstar Rating compares funds’ risk-adjusted historical returns. Its usefulness depends, in part, on which funds are compared with others. For further information, please refer to:


  • ***Disclaimer: "Distribution of this material to any person other than the person to whom this material was originally delivered and to such person’s advisors is unauthorized and any reproduction of this material, in whole or in part, or the divulgence of any of its contents, without the prior consent of ARI is expressly prohibited. The information provided is for illustration purposes only. Written holdings identified do not represent all of the investments purchased, sold or recommended for clients. Past performance does not guarantee future results. The reader should not assume that an investment in the securities identified was or will be profitable. This presentation is not an offer to sell, nor a solicitation of an offer to buy any security or any separately managed account or fund managed or sponsored by ARI. Offers to sell or solicitations to invest in any investment product shall be made only by means of a contract, if applicable, and in accordance with applicable securities laws. Investors should review the offering documents (including, but not limited to, the information therein as to investment strategy, conflicts and risks as appropriate) prior to making a decision on an investment. The performance results of various indices are provided for comparative purposes only. Material variances exist between the results of the investment strategy’s performance and the methodology of creating each index, and these variances are relative to the differences in performance from the investment strategy’s results. For more information about an investment strategy’s performance relative to the comparative indices, please contact us."



  • ARI’s benchmarks are net MSCI Total Return Indices which reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties.
  • MSCI EAFE Index Description: The MSCI EAFE Index (Europe, Australasia, Far East) is a free float‐adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. The MSCI EAFE Index consists of the following 21 developed market country MSCI indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United. Reference to any benchmark is for comparative purposes only and is not intended to indicate that the composite will contain the same investments as the benchmark. Investors have the opportunity for losses as well as profits.
  • MSCI Emerging Markets Index Description: The MSCI Emerging Markets Index, which consisted of just 10 countries representing less than 1% of world market capitalization.  Today the MSCI Emerging Markets Index consists of 24 countries representing 10% of world market capitalization.  The Index is available for a number of regions, market segments/sizes and covers approximately 85% of the free float-adjusted market capitalization in each of the 24 countries.
  • MSCI ACWI ex US Index Description: The MSCI ACWI ex USA Index captures large and mid-cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 24 Emerging Markets (EM) countries. With 1,860 constituents, the index covers approximately 85% of the global equity opportunity set outside the US.
  • MSCI ACWI Index Description: MSCI ACWI Indexes offer a modern, seamless, and fully integrated approach to measuring the full equity opportunity set with no gaps or overlaps. MSCI ACWI represents the Modern Index Strategy and captures all sources of equity returns in 23 developed and 24 emerging markets.
  • MSCI World Growth Index Description: The MSCI World Growth Index captures large and mid-cap securities exhibiting overall growth style characteristics across 23 Developed Markets (DM) countries*. The growth investment style characteristics for index construction are defined using five variables: long-term forward EPS growth rate, short-term forward EPS growth rate, current internal growth rate and long-term historical EPS growth trend and long-term historical sales per share growth trend.



  • 3ARI Group is proud to incorporate environmental, social and governance (ESG) guidelines – In addition, we have the ability to offer customized ethical filter in order to help clients align their investment strategies with important core values – without sacrificing diversification or return potential.


ESG risks:

       

Market ESG considerations may impact on the market value and performance of investments. It is important for investors to understand market risks: 


  • Regulatory Risks: Changes in environmental, social, and governance regulations can have a substantial impact on an investment's performance. Regulatory developments, both domestically and internationally, can alter the operational landscape, compliance costs, and market opportunities for companies. As regulations evolve, particularly in response to global sustainability goals, investments may be positively or negatively affected. 


  • Environmental Risks: Investments may be exposed to environmental risks that could materially impact their performance. These include, but are not limited to, the effects of climate change, resource scarcity, pollution, and changes in environmental policies. Companies failing to adapt to these changes or mitigate their environmental impact may face decreased market valuation and operational challenges. 


  • Social Risks: Social considerations, including labor practices, community relations, and human rights issues, can significantly influence the market performance of investments. Public sentiment and consumer behavior are increasingly influenced by social factors, which can affect a company’s reputation and financial performance. Investments in companies with poor social practices may face higher volatility and market resistance. 


  • Governance Risks: Governance factors, such as board composition, executive compensation, and audit committee effectiveness, play a critical role in corporate performance and investor confidence. Investments in companies with weak governance structures may be at greater risk of mismanagement, scandal, or fraud, all of which can negatively impact market value. 


  • Market Sentiment and Valuation Risks: The increasing focus of investors on ESG factors can influence market sentiment and valuations. Companies perceived as ESG leaders may enjoy premium valuations, while those viewed as laggards may be discounted. This shifting landscape can introduce volatility as the market reassess company performances based on ESG achievements and failures. 


  • Adaptation and Technological Risks: Companies’ abilities to adapt to ESG‐related technological changes and innovations impact their long‐term sustainability and market competitiveness. Investments in companies that fail to innovate or adapt to these changes may see diminishing returns as markets evolve.
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