Ariel International Fund on Reckitt Benckiser Group plc

Ariel reestablished Reckitt because it sees an unjustified valuation discount to consumer staples peers. Its health and hygiene brands have substantial emerging-market exposure, accounting for nearly half of core revenue. Weak cold and flu demand and stranded portfolio costs have depressed recent results, while litigation concerns have also weighed on the shares. Improving margins, resilient emerging-market growth and an initial favorable infant formula liability trial outcome support a stronger earnings outlook.