A unique U.S. equity market neutral strategy
The Lipper Award Winning Strategy combines long exposure to Research Affiliates Equity (RAE) Fundamental, a
systematic equity strategy, with an equivalent short position in the S&P 500 Index. This equity-market-neutral
position is complemented by a bond portfolio designed to generate alpha, providing potential for positive
returns with low correlation to the U.S. equity market.
Why Invest In This Fund
Systematically capitalizes on market inefficiencies
RAE Fundamental selects and weights U.S. stocks based
on non-price measures of company size including sales, cash flow, dividends and book value. The strategy
then refines these weights by incorporating active insights into quality, momentum, style and size with the
goal of further enhancing returns. By removing price from the portfolio construction process, the fund aims
to buy low and sell high, outperforming cap-weighted indexes over time.
Advantages of market neutral strategies
EEquity-market-neutral strategies offer investors a lower risk and
lower volatility profile while retaining