ROB ARNOTT
Founder and Chairman
“We look at investment problems with a fresh eye. 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.”
ROB ARNOTT
Founder and Chairman
“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.”
"Achieving our mission of transforming the global investment community for the benefit of investors requires courage, conviction, and commitment to consistently advocate for better investor outcomes and challenge conventional beliefs. We are our people, and our people strive to significantly and positively impact investors’ ability to build wealth over the long term through both insights and strategies. "
KATRINA SHERRERD
CEO
CHRIS BRIGHTMAN
CIO
“We study capital markets to learn about reliable sources of investment returns. Publishing our research and educating investors are worthwhile activities on their own, but also invite others to challenge our ideas. Publicly debating our research findings is essential to deepening our knowledge. Ultimately, we apply our insights using 21st century technology to create simple, transparent, low cost investment strategies that deliver more of the available returns to end investors."
Performance is based on data from Bloomberg, CRSP, Compustat, Datastream, and MSCI. Returns reported in USD. Performance reflected above does not reflect any fees that may be charged in connection with implementing the model portfolio. Actual investment results will differ.
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, 2020 and subject to change.
Interactive Tools
Timely Insights
Advisor Essentials
Past performance is no guarantee of future performance and does not represent actual performance of an investment product based on the index. References to indexes and benchmarks are hypothetical illustrations of aggregate returns and do not reflect the performance of any actual investment. Investors cannot invest directly in an index. Index performance does not reflect the deduction of advisor fees, trading expenses, or other costs. 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. Research Affiliates, LLC is not a broker-dealer and does not effect transactions in securities. More information regarding our methodology and reference index benchmarks is available upon request.
