Exploring a Decade of Asset Allocation Innovation by Research Affiliates

Celebrating Ten Years of Innovation in Asset Allocation

Research Affiliates, LLC, a respected investment advisor and leader in smart beta and enhanced indexing, has reached a significant milestone—ten years of its Asset Allocation Interactive (AAI) tool. This powerful online resource has been instrumental in offering capital market expectations (CMEs) based on rigorous research and fundamental insights.

Unveiling the Accuracy of the AAI Tool

The company recently published a new research article titled "Asset Allocation Interactive at 10 Years: The Good, the Not Too Bad, and the Ugly," which reflects on the tool's accuracy in forecasting investment outcomes over the past ten years. This article serves as a testament to AAI's efficacy in providing predictive analysis for investors and advisors alike.

Join the Upcoming Webinar

As part of the anniversary celebration, Research Affiliates will host a webinar designed for financial professionals. This event, titled "10 Years of Asset Allocation Interactive: Evaluating the Results of Conditional Return Expectations," will be led by Jim Masturzo, Chief Investment Officer, and Brent Leadbetter, Head of Solutions Distribution. The insights shared in this session are expected to enhance understanding of how to leverage the AAI tool effectively.

Reflections from Company Leaders

Jim Masturzo highlighted the significance of the AAI tool, stating, "We built Asset Allocation Interactive from scratch ten years ago to provide investors and advisors with a foundational tool for strategic asset allocation. With ten years of data, this is an ideal time to assess our results. AAI’s capital markets expectations have largely been on target, accurately predicting asset return rankings. While there are areas for improvement, particularly in currency and inflation projections, the insights gained from AAI are invaluable for investors focused on effective portfolio construction."

Comprehensive Features of Asset Allocation Interactive

AAI is Research Affiliates’ proprietary online tool, offering extensive functionalities such as analyzing expected returns across a diverse range of over 140 assets and model portfolios. Users can create and customize portfolios with tailored expected returns, leveraging two distinct return models: valuation-dependent and yield-and-growth. This comprehensive resource aims to empower users in making informed investment decisions.

Continuous Improvement and Recognition

The AAI tool is not a static resource; it is continually updated and refined to ensure its relevance in the rapidly evolving financial landscape. Recently, expected returns for systematic equity strategies have been added, along with a more granular breakdown of value and growth factors. Brent Leadbetter remarked, "AAI is a living tool, and we consider it one of the best free resources available for asset allocation and portfolio construction."

Acknowledgements at Prestigious Awards

Research Affiliates and the AAI tool have recently received recognition at significant industry awards. At the 2024 ThinkAdvisor Luminaries Awards, AAI was honored for Thought Leadership and Education, and it was also a finalist in the Innovation Category. Moreover, the tool was nominated as a finalist in the Industry Research Provider category at the 2024 WealthManagement.com 'Wealthies' Awards.

Expert Guidance for Financial Professionals

The upcoming webinar is open to financial professionals seeking to enhance their understanding of effective asset allocation strategies using AAI. Participants can register to explore the insights and methodologies that make AAI a valuable asset in the investment community.

About Research Affiliates

Established in 2002, Research Affiliates is a globally recognized investment advisor committed to challenging conventional investment wisdom. The firm is dedicated to revolutionizing the investment landscape, benefiting investors through innovative research and high-quality product development. Their portfolio includes leading smart beta and enhanced indexing products, as well as multi-asset strategies. With over $156 billion in assets under management as of a recent reporting period, Research Affiliates collaborates with some of the largest investment managers in the world.

Frequently Asked Questions

What is the Asset Allocation Interactive tool?

The Asset Allocation Interactive tool is a comprehensive online resource for analyzing capital market expectations, enabling users to create customized portfolios based on expected returns.

Who should attend the upcoming webinar?

The webinar is tailored for financial professionals interested in optimizing their asset allocation strategies using the AAI tool.

Can I access the Asset Allocation Interactive tool for free?

Yes, AAI is available for free on the Research Affiliates website, continually updated to provide users with the latest insights.

What recent improvements have been made to the AAI tool?

Recent updates include expected returns for systematic equity strategies and detailed analysis of value and growth factors.

What awards has Research Affiliates received?

Research Affiliates and the AAI tool have been recognized for their contributions to investment strategies at prestigious awards, including the ThinkAdvisor Luminaries Awards and WealthManagement.com's Wealthies Awards.

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