Chicago Investment Firms Launch Joint Venture Bond Fund

Ariel Capital Management, Inc. and Lincoln Capital Management Company are partnering to offer the Ariel Premier Bond Fund, a new high-quality, total return bond fund targeting institutional and individual investors. The fund will be managed by Lincoln Capital's fixed-income team, seeking to maximize total return through a combination of income and capital appreciation. The partnership aims to tap into an untapped market of potential investors.

Key Takeaways:

• The Ariel Premier Bond Fund is a joint-venture between Ariel Capital Management, Inc. and Lincoln Capital Management Company, launched on June 26, 1995.
• The fund will offer Class A shares for institutional investors and Class B shares for the general public, with a minimum initial investment of $1,000,000 and $1,000, respectively.
• The portfolio will be managed by Lincoln Capital's fixed-income team, with a focus on maximizing total return through a combination of income and capital appreciation.
• The fund will be administered and managed by Ariel Capital Management, Inc., while Lincoln Capital will manage the investment of the fund's assets.
• Ariel Capital Management has $1.6 billion in assets under management, while Lincoln Capital Management has over $25 billion in assets under management.
• The funds will seek to invest in high-quality bonds and take advantage of perceived yield opportunities.
• The Ariel Growth Fund and Ariel Appreciation Fund are Ariel Capital Management's existing equity funds, which also invest in small- and medium-sized companies.
• Lincoln Capital Management serves as the investment adviser to the U.S. Growth Fund, an equity mutual fund distributed by The Vanguard Group.

Statistics:

• $1.6 billion in assets under management by Ariel Capital Management, Inc. (1995)
• $25 billion in assets under management by Lincoln Capital Management Company (1995)
• $1,000,000 minimum initial investment for Class A shares
• $1,000 minimum initial investment for Class B shares
• 1995: Year of the launch of the Ariel Premier Bond Fund
• 1983: Founding year of Ariel Capital Management, Inc.
• 1967: Founding year of Lincoln Capital Management Company

Sources:

• BUSINESS WIRE, June 26, 1995
• Mellody Hobson, 312/726-0140
• Sean Essex, 312/988-2703