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Dear Clients and Friends

For the quarter ended September 30, 2026, the Ariel Emerging Markets Value Composite returned -0.52% gross of fees (-0.70% net of fees), while the Ariel Emerging Markets Value ex-China Composite returned -2.41% gross of fees (-2.61% net of fees). Both composites trailed their respective benchmarks: the MSCI EM Index which declined -0.37%, and the MSCI EM ex-China Index which fell -1.32%.

The modest index declines masked a sharp rotation in market leadership. Technology stocks traded down on the heels of exceptional second-quarter gains. During the third quarter, investors reassessed the durability of artificial intelligence ( AI ) capital spending against a higher cost of capital.…