Key Points

• Our central philosophy is that the largest and most persistent active investment opportunity arises from long-horizon mean reversion.

• We have three core beliefs: investor preferences are broader than risk and return; prices vary around fair value; and a lack of conviction prevents investors from exploiting long-term value.

• The long-term capital market expectations presented on our Asset Allocation website represent our best forecasts and inform our behavior within the context of our investment beliefs.

• The beliefs underlying Research Affiliates’ asset allocation models and investment strategies are admittedly fallible but have proven useful in the past and should serve well in the future.