Press Release

Research Affiliates Launches RAFI Multi-Factor and Single-Factor Index Suite


Media Contacts:
U.S. & Canada:
Tucker Hewes
Hewes Communications, Inc.
Phone: 212-207-9451
hewesteam@hewescomm.com

EMEA:
JPES Partners (London)
Phone: +44 (0) 20 7520 7620
ra@jpespartners.com

  • RAFI Multi-Factor Indices are designed to provide diversified factor exposures.
  • Single-factor RAFI Indices are based on robust research.
  • RAFI Indices, LLC, will publish and license indices based on Research Affiliates’ insights and strategies.
     

NEWPORT BEACH, California (January 31, 2017) – Research Affiliates announces the launch of new RAFI™ Multi-Factor and Single-Factor Indices.

Building on Research Affiliates’ latest research on equity factors, the RAFI Multi-Factor index suite aims to provide diversified exposures through allocations to the empirically robust factor strategies of value, low volatility, quality, momentum, and size.

RAFI Multi-Factor Indices combine five single-factor strategies. Four of these factor strategies—RAFI Value Factor Index, RAFI Low Volatility Factor Index, RAFI Quality Factor Index, and RAFI Size Factor Index—and fundamental indices will also be available in a variety of geographic categories, providing investors a wide range of choices to meet their unique preferences. The RA Momentum Factor Index will not be available outside the RAFI Multi-Factor index suite due to the high turnover and high trading costs of the strategy as a stand-alone index. We strongly recommend against using it as a stand-alone strategy.

These indices will be published through RAFI Indices, LLC, a subsidiary of Research Affiliates Global Holdings, LLC, and calculated by Solactive AG. Founded in 2007 and based in Frankfurt, Germany, Solactive focuses on tailor-made indices across all asset classes, currently calculating over 3,500 indices. More than 250 ETFs now follow its calculated indices. We’re excited to expand our relationship with Solactive, a member of our world-class network of index companies—including FTSE Russell, S&P Dow Jones, Citi, and Ryan ALM—with whom we collaborate in bringing our smart beta strategies to market.

For more information, please visit www.rafi.com

Rob Arnott, Chairman and CEO, Research Affiliates:
“Our new RAFI Dynamic Multi-Factor strategy addresses two critical weaknesses in many existing multi-factor portfolios: first, they may hold too much in a factor that is trading at high valuations relative to its history, and second, they work well only on paper, without regard to turnover, trading costs, and or capacity. In a series of publications last year, we shared our insights on why we believe emphasizing factors or strategies that are trading cheap relative to their own historical norms, and deemphasizing the more expensive factors or strategies, can improve performance. Now we offer a product that reflects these insights.”

Chris Brightman, Chief Investment Officer, Research Affiliates:
“From the hundreds of published factors purporting to predict equity returns, we have identified the few we believe can provide market-beating performance. Our new multi-factor strategies, along with the new single-factor RAFI indices, provide a comprehensive suite that we have conviction will benefit investors.”

For further information please contact:
US: Tucker Hewes, Hewes Communications, Inc., +1 (212) 207-9450,
hewesteam@hewescomm.com

Europe: Matt Rogers, JPES Partners, +44 (0)20 7520 7624, ra@jpespartners.com

About RAFI Indices
RAFI Indices, LLC, is a California limited liability company established in 2016, which is a wholly owned subsidiary of Research Affiliates Global Holdings, LLC. RAFI Indices, LLC, constructs, publishes, and licenses various indices and does not offer or provide investment advice or offer or sell any securities, commodities, or derivative instruments or products. The RAFI trademark is used under license by RAFI Indices, LLC. The RAFI Indices, LLC, corporate name and all related logos are the exclusive intellectual property of RAFI Indices, LLC.

About Research Affiliates
Research Affiliates, LLC, is a global leader in smart beta and asset allocation. Founded in 2002 and based in Newport Beach, California, Research Affiliates is dedicated to creating value for investors and seeking to have a profound impact on the global investment community through its insights and products. The firm’s investment strategies are built on a strong research base and are led by Rob Arnott and Chris Brightman. Research Affiliates delivers solutions in partnership with some of the world’s leading financial institutions through their offerings of mutual funds, ETFs, separately managed accounts, and/or commingled accounts. As of December 31, 2016, about $169 billion in assets are managed worldwide using investment strategies developed by Research Affiliates. 

Web: www.researchaffiliates.com
Twitter: @ra_insights

Neither Research Affiliates, LLC, nor its related entities provide investment advice outside of the United States, Ireland, and Canada, and do not offer or sell any securities, commodities, or derivative instruments or products. Any such business may only be conducted through registered or licensed entities and individuals permitted to do so within the respective jurisdiction and only in conjunction with the legally required disclosure documents and subject to all legally required regulatory filings and/or exemptions.

The trademarks Fundamental Index™ and RAFI™, and the Research Affiliates™ trademark and corporate name and all related logos, are the exclusive intellectual property of Research Affiliates, LLC, and in some cases are registered trademarks in the United States and other countries. Various features of the Fundamental Index™ methodology, including an accounting data–based noncapitalization data–processing system and method for creating and weighting an index of securities, are protected by various patents, and patent-pending intellectual property of Research Affiliates, LLC. (See all applicable US Patents, Patent Publications, Patent Pending intellectual property and protected trademarks located at https://www.researchaffiliates.com/en_us/about-us/legal.html#d, which are fully incorporated herein.)  Any use of these trademarks, logos, patented, or patent-pending methodologies without the prior written permission of Research Affiliates, LLC, is expressly prohibited. Research Affiliates, LLC, reserves the right to take any and all necessary action to preserve all of its rights, title, and interest in, and to, these marks, patents, or pending patents.