RAE Fundamental Advantage PLUS Fund


Updated December 11, 2019


Seeks maximum total return, consistent with prudent investment management

Primary Portfolio

Derivatives providing long exposure to the RAE Fundamental US Large portfolio hedged by short exposure to the S&P 500 Index, backed by an actively managed portfolio of fixed income securities with an absolute return orientation


Fund Overview

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