© 2026 Research Affiliates, LLC. All Rights Reserved.
As a financial advisor, you are deluged with constant information and market noise. We at Research Affiliates focus on the long run, question conventional thinking, and separate repeatable return sources from the noise. Decades of academic rigor ground our time-tested solutions, tools, and insights that can help you produce better client outcomes.
Products
Through our ongoing research efforts, we design and evolve innovative and systematic strategies that aim to deliver more-efficient long-term returns and fill gaps in the marketplace.
Seek outperformance via contrarian rebalancing
RAFI strategies systematically rebalance holdings to fundamental measures of firm size. Because stock prices fall or rise faster than their fundamentals, RAFI "buys low and sells high" with the goal of harvesting a return premium.
Trade at a valuation discount to passive exposure
RAFI strategies trade at persistent and dynamic valuation discounts to passive approaches. As value stocks cheapen, the strategies systematically increase their valuation discount to benefit from long-horizon mean reversion.
Retain the
advantages of
passive investing
RAFI strategies provide transparency and broad diversification throughout the investment process at low all-in costs and expenses.
Seek outperformance via contrarian rebalancing
RAFI strategies systematically rebalance holdings to fundamental measures of firm size. Because stock prices fall or rise faster than their fundamentals, RAFI "buys low and sells high" with the goal of harvesting a return premium.
Trade at a valuation discount to passive exposure
RAFI strategies trade at persistent and dynamic valuation discounts to passive approaches. As value stocks cheapen, the strategies systematically increase their valuation discount to benefit from long-horizon mean reversion.
Retain the
advantages of
passive investing
RAFI strategies provide transparency and broad diversification throughout the investment process at low all-in costs and expenses.
Seek Maximum Real Return
The All Asset strategies are managed to achieve high returns in excess of inflation over a full market cycle.
Provide Portfolio Diversification
Designed to diversify away from mainstream stock and bond markets, the All Asset strategies aim to deliver a complementary return pattern to traditional portfolio holdings.
Protect Against Inflation
By focusing on inflation-sensitive and diversifying investments, the All Asset strategies are designed to protect investors from the damaging effects of rising inflation.
Anchor
on Valuations
The RAE strategies use multiple ratios, normalized across styles and sectors, to provide a robust measure of a firm’s valuation.
Favor High-Quality Companies
Measures of earnings integrity, distress, investment, and profitably are employed in the RAE strategies to identify financially healthy companies.
Recognize Momentum
Risk-adjusted and “fresh” price momentum inform active share and trade timing in the RAE strategies.
“We know that replicating others’ ideas is an assured path to average returns. Instead, we ask a few questions to explore investments from a different perspective. Where is conventional wisdom ignoring the lessons of history? Where does it lead investors astray? Where is ‘best practice’ missing the mark? Can we create a better solution to serve our customers? As we answer these questions, we help our clients reach their goals. We succeed by helping others succeed.”
Research Affiliates Model Portfolios
Our suite of model portfolios uses a robust, adaptive, and disciplined approach that is informed by decades of research and experience. We apply a systematic asset allocation process to a diversified roster of 16 liquid asset classes. The resulting allocations offer a starting point for well-crafted strategic positioning in client portfolios.
*Models shown are intended for investment professionals only and not the retail public. Your use of this information does not create an investment advisory, fiduciary, or professional services relationship between you and Research Affiliates, LLC. Investors may be required to meet certain suitability and geographic requirements and therefore should consult the provider or a financial adviser for additional information.
Performance is based on data from Bloomberg and MSCI. Returns reported in USD. The simulated performance of the models shown is calculated using indexes only, does not reflect the performance of any actual investment product, and does not reflect any fees that may be charged in connection with implementing the model portfolio. Actual investment results will differ. Please see https://www.researchaffiliates.com/legal/disclosures for additional important information regarding hypothetical performance.
Performance is based on data from Bloomberg and MSCI. Returns reported in USD. The simulated performance of the models shown is calculated using indexes only, does not reflect the performance of any actual investment product, and does not reflect any fees that may be charged in connection with implementing the model portfolio. Actual investment results will differ. Please see https://www.researchaffiliates.com/legal/disclosures for additional important information regarding hypothetical performance.
Our model portfolios are built upon four decades of peer-reviewed research. Our approach is grounded in long-term evidence tested over multiple market cycles and asset classes. With an embedded base of robust, long-horizon research, advisors can help clients embrace long-termism and move forward confidently, prepared for the inevitably wide range of short-term results.
Investment Research Timeline
Past is not prologue. Static portfolios of mainstream assets may miss opportunities for long-horizon mean reversion. Further, some asset classes are better used opportunistically based on current yield levels than in a set-it-and-forget-it approach. Our portfolio weights are responsive to changing asset-class yields and dynamically adjust to corresponding changes in long-term expected returns.
Source: Bloomberg, CRSP, Compustat, Datastream, and MSCI.
Sticking with diversification and weathering bear markets is hard. Our portfolio weights are arrived via a transparent and rules-based approach that counters the behavioral bias to abandon recently underperforming assets. Our systematic asset allocation process ensures a contrarian approach that rebalances into newly cheap asset classes to take advantage of long-horizon mean reversion.
Investment Process
For illustrative purposes only. As of December 31, 2021 and subject to change.
Education
Our long history of providing investor tools and sharing actionable insights allows advisors to communicate long-horizon academic concepts, maximize the value of advice, and focus on what matters in the midst of the market’s constant noise and stimulation.
Timely Insights
Advisor Essentials
The Bucks Stops Here
History Lessons: How "Transitory" is Inflation?
Quantifying the Impact of Direct Indexing
Insights into the Inflation Print
Is Manager Selection Worth The Effort For Financial Advisors?
The Most Dangerous (and Ubiquitous) Shortcut in Financial Planning
