A. Description of Firm
Research Affiliates, LLC (“Research Affiliates”), a California limited liability company, was
founded in 2002 and offers globally innovative investment, smart beta, and asset allocation
strategies. One of its competitive advantages rests in the strength of its research and development
capabilities and ability to respond to the current needs of the global investment community.
Leveraging its strong research focus, Research Affiliates designs and creates innovative products
and services, which are distributed through various financial institutions. The strategic alliances
Research Affiliates has with major financial institutions throughout the world predominantly take
the form of sub-advisory and licensing relationships.
RAFI Indices, LLC (“RI”), a California limited liability company, was established in 2016 and
constructs, publishes and licenses various indices; RI does not provide investment advisory
services. RI does not have any employees and instead relies on the employees of Research
Affiliates to provide certain contract-based services. In addition, RI relies on Research Affiliates’
intellectual property to construct its indices pursuant to a licensing agreement.
Christopher Brightman serves as Chief Executive Officer and Chief Investment Officer of
Research Affiliates, whose primary office is in Newport Beach, California.
Both Research Affiliates and RI are wholly owned subsidiaries of Research Affiliates Global
Holdings, LLC.
B. Principal Owners
Research Affiliates Global Holdings, LLC (“RAGH”) is the holding company for Research
Affiliates. RAGH is owned and principally controlled by members of Research Affiliates’ senior
leadership team. RAGH, through its Board of Directors (“Board”), oversees the firm’s strategic
direction and supervises the Chief Executive Officer. The Board is comprised of those certain
executive and non-executive members of Research Affiliates’ senior leadership team, with Robert
D. Arnott serving as Chairman.
C. Types of Advisory Services Provided
Many of the services described and offered by Research Affiliates are based on its patented
intellectual property.
1. Management and Advisory Services
Research Affiliates provides management and discretionary investment advisory services to
private funds.
2. Sub-Advisory Services
Research Affiliates provides investment sub-advisory services on a discretionary and non-
discretionary basis to registered investment companies by creating a model portfolio and providing
updated input data and consulting services regarding the models. Research Affiliates also provides
sub-advisory services to other independent third-party investment advisers, private funds,
registered investment companies and separately managed accounts (“sub-advised accounts”). The
private funds, registered investment companies and separately managed accounts are offered by
unaffiliated third parties.
3. Model Portfolios
Research Affiliates, on a non-discretionary basis, designs model portfolios, pursuant to its
proprietary research, with monthly weighting allocations and exposure to a wide range of asset
classes and geographic regions, (each a “Model Portfolio”). Model Portfolios are generally
provided to third parties for implementation in separately managed accounts and / or distribution
to financial advisors, including independent advisor (RIAs) or wealth management firms.
4. General Information Relating to Research Affiliates’ Advisory Services
Prior to the start of a client relationship, each client enters into a written agreement with Research
Affiliates setting forth the terms and conditions under which Research Affiliates will provide its
services (each, an “Agreement”). In accordance with applicable laws and regulations, Research
Affiliates will provide its disclosure brochure (Form ADV Part 2A) and most recent privacy notice
to each advisory client prior to or contemporaneously with the execution of the Agreement. The
Agreement between Research Affiliates and a client will continue in effect until terminated by
either party pursuant to the terms of the Agreement. Any fees paid to Research Affiliates in
advance shall be prorated through the date of termination and any remaining balance shall be
charged or refunded to the client, as appropriate, in a timely manner.
Neither Research Affiliates nor any client may assign the Agreement without the written consent
of the other party. Transactions that do not result in a change of actual control or management of
Research Affiliates shall not be considered an assignment.
Information relating to our senior management team members is provided in Form ADV Part 2B,
Research Affiliates’ Supplemental Brochure.
As of December 31, 2023, Research Affiliates, LLC managed approximately $28,392,009,518 in
regulatory assets under management, $27,017,858,370 on a discretionary basis, and
$1,374,151,148 on a non-discretionary basis. In total, the regulatory assets under management,
combined with assets managed by third parties utilizing index strategies developed or branded by
Research Affiliates, equaled approximately $139,128,734,097 as of December 31, 2023.
5. Other Research Affiliates Services
Research Affiliates also provides non-advisory services utilizing the Fundamental Index™
methodology to the creator of various indexes. Investment products tracking these indexes are
distributed by broker dealers.