Research Affiliates® Global Multi-Asset Index

Research Affiliates® Global Multi-Asset Index

A forward–looking index designed to benefit from where markets are headed, not where they have been. The Index provides diversified exposure to global stocks, bonds, and commodities, while utilizing a proprietary risk management process to manage volatility. The Index is grounded upon three core principles:

Global Diversification

To help provide broader diversification and the opportunity for greater growth through changing markets, the Index provides access to 22 assets including global stocks, global bonds and commodities.

Forward–Looking Perspective

The Index incorporates proprietary forecasting models of the long-term expected returns to each asset class. It then uses this information to identify and systematically and optimally allocate to assets that are expected to perform well going forward.

Return Stabilization

To help provide more stable returns through volatile markets, the Index uses a proprietary volatility control methodology to improve accuracy and precision.


Global Diversification

The Research Affiliates® Global Multi-Asset Index provides diversified exposure to six global stocks, six global bonds and 10 commodities.1 The flexibility to allocate to a broad universe of global asset classes offers growth opportunities in a variety of market environments.


Dynamic Forward-Looking Allocation Process

Leveraging Research Affiliates’ experience in forecasting returns and deep expertise in multi-asset investing, the Index first creates a strategic allocation using its long-term forecasting models. It then makes tactical reallocations to the selected stocks, bonds and commodities using shorter-term quantitative signals to help determine an optimized allocation each month.

The Index also applies a proprietary daily volatility control methodology designed to help stabilize returns through changing markets. The Index rebalances daily between the monthly selected allocation of equity, bond and commodity allocations and interest free cash to help maintain a longer term volatility target of 5%.


Historical Performance

The Research Affiliates® Global Multi-Asset Index leverages global diversification, forward-looking perspective and an optimization process with the aim to provide stable, long-term returns through changing market environments. The graph below shows how the Index would have provided relatively consistent growth had it been available in past markets.

Index performance from 1/3/2005 through 12/31/2023. The index performance shown is hypothetical and for illustrative purposes only and does not represent the performance of a specific product. The Research Affiliates Global Multi-Asset Index was established on 11/24/2023. Performance before this date is back-tested. Hypothetical performance is back-tested by applying the Index methodology to historical financial data when all components were available and was designed with the benefit of hindsight. Back-tested performance is hypothetical and has been provided for informational purposes only. Past performance is not a guarantee of any future performance.

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