Disclosures & Disclaimers

Research Affiliates, LLC and its affiliated entities, including Research Affiliates Global Holdings, LLC and Research Affiliates Global Advisors (Europe) Limited (collectively, “Research Affiliates” “we,” “us” or “our”) hereby provide these disclosures and disclaimers.  You acknowledge your understanding of these disclosures and disclaimers with respect to the Research Affiliates activities and you, including with respect to the document, information or website (“Communication”) that linked to these disclosures and disclaimers.

Research Affiliates is not responsible in any manner for direct, indirect, special or consequential damages, however caused, arising out of your use of our Communication. Links to other websites from our Communication are for convenience only. No endorsement of any third-party products, services or information is expressed or implied by any information, material or content referred to or included on, or linked from or to our Communication.

Users of any content found on or accessible through our Communication or on Research Affiliates’ website (“Content”) should be aware of the risks associated with data sources and quantitative processes used to produce Content. Errors may exist in data acquired from third party vendors, the calculations or coding used to produce Content, the assumptions or models used in relation to Content, or the display or updating of any Content. While Research Affiliates takes steps to identify errors so as to minimize the potential likelihood or impact of such errors, Research Affiliates cannot guarantee that such errors will not occur. The user therefore agrees, as a condition precedent to usage of such Content that (i) all Content is accepted on an “as is” basis; (ii) the user hereby fully disclaims all warranties of merchantability, fitness for a particular use, or any implied warranties; (iii) the user freely and knowingly assumes all risks of any Content usage; and (iv) the user fully releases and holds Research Affiliates harmless, along with its affiliates and all of their employees, owners, managers, and agents, from any damages or losses resulting from the use of such Content by the user along with indemnifying Research Affiliates for any damages, costs or attorneys’ fees incurred by Research Affiliates as a result of any uses of such Content by the user.

The Content in our Communication is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Research Affiliates to any registration requirement within such jurisdiction or country.  Information provided by Research Affiliates and other sources in our Communication is believed to be accurate and reliable when placed in our Communication, but we cannot guarantee it is accurate or complete or current at all times.

Information provided by Research Affiliates to you, including these Disclosures & Disclaimers, is the property of Research Affiliates. Research Affiliates intends to retain all of the rights in such property and by allowing public access to it, does not grant any license to any person to copy, retransmit (either electronically or otherwise), revise, or otherwise exercise any rights of ownership associated with intellectual property generally under the copyright and other applicable laws of the United States and equivalent laws of any other country. Any person who seeks to exercise any ownership right in the information provided to you by Research Affiliates without first obtaining the express written consent of Research Affiliates will be prosecuted to the fullest extent permitted under law.

Research Affiliates, LLC is an SEC registered investment adviser pursuant to the Investment Advisers Act of 1940. This registration as an investment adviser does not imply a certain level of skill or training. Our Communication is limited to the dissemination of general information pertaining to investment strategies and financial planning and does not constitute an offer to issue or sell, or a solicitation of an offer to subscribe, buy, or acquire an interest in, any securities, financial instruments or other services, nor does it constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment.  Our Communication may not be used or relied upon in connection with any offer or sale of any such securities, financial instruments, investments or other services. No securities commission or regulatory authority in the United States or in any other country has in any way passed upon the merits of an investment in any investment or strategy or the accuracy or adequacy of the information or material contained herein or otherwise. This information is not, and under no circumstances is to be construed as, a prospectus, a public offering, or an offering memorandum as defined under applicable securities legislation. Research Affiliates does not, and will not, effect or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any material provided in our Communication either directly or through cross-reference to another site is for informational purposes only. Any information provided in our Communication does not purport to be, and is not intended to be, financial, legal, accounting, tax or investment advice. Research Affiliates does not represent that the securities, products, or services discussed in our Communication are suitable or appropriate for any or all investors.  The information provided, therefore, should not be viewed as financial, legal, accounting, tax or investment advice. Investment advice can only be rendered after all of the following conditions are met:

1. Delivery of our Form ADV Parts 2A and 2B to you. 
2. Execution of a written agreement.

Research Affiliates provides investment advice and solicits investment advisory services only in those states and countries where it is registered or where it is exempt from such registration.  Research Affiliates does not provide investment advice outside of the United States and neither it nor its affiliated entities or their officers, managers, owners or employees offer or sell any securities, commodities or derivative instruments or products. Any such business may only be conducted through registered or licensed entities and individuals permitted to do so within the respective jurisdiction and only in conjunction with the legally required disclosure documents and subject to the legally required regulatory filings.

Research Affiliates does not pay fees to be considered for the awards mentioned on this website or in any Communication. For more information regarding the methodology and selection criteria for any awards mentioned, please contact marketing@rallc.com. 

Past performance is not necessarily indicative of future results. Any investment involves significant risks, including loss of the entire investment.  Future market conditions are unpredictable, and may vary significantly from current and past conditions, particularly given current worldwide market uncertainty. Some of the investment strategies presented in our Communication may involve transactions in foreign currencies. A foreign currency is a currency other than that issued by the government of the country in which you are domiciled or, in some cases, in which you reside. Transactions in foreign currencies may introduce additional risk to the investment transaction.

Persons engaging in investment activities should be aware that investing is an inherently risky activity. Depending on the nature of the investment, these risks include, but are not limited to, interest rate, foreign currency, liquidity, credit, legal, and political risk. The information contained in our Communication is based on factual assumptions that may not be applicable to the particular circumstances of any user accessing our Communication scientific assumptions that are liable to require revision due to changing circumstances, and statistical assumptions that are based on confidence levels which may require revision. For these reasons, no representations or warranties, expressed or implied, are made to the accuracy or applicability of any information contained in our Communication or any linked site to any particular viewer specifically, or to all viewers generally. Also, no representations or warranties, express or implied, are made as to the result any viewer might experience from using any of the information contained in our Communication or to any linked site. 

The investment strategies presented in our Communication cannot, in all likelihood, remove all of the risks associated with investing activities generally and persons engaging in investment activities are cautioned that they should familiarize themselves with the associated risks of any investment transaction before it is entered into. While Research Affiliates, its agents, and employees have exercised due diligence to ensure that the information and any calculations presented in our Communication is accurate, neither Research Affiliates, its agents, and employees warrant that the information or calculations are free from error.

Investors should be aware of the risks associated with data sources and quantitative processes used in our investment management process. Errors may exist in data acquired from third party vendors, the construction of model portfolios, and in coding related to the index and portfolio construction process. While Research Affiliates takes steps to identify data and process errors so as to minimize the potential impact of such errors on index and portfolio performance, we cannot guarantee that such errors will not occur.

Except for historical information and discussions contained in our Communication, statements published on Research Affiliates’ Communication may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Forward-looking statements can be identified by the use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”, “continue” or “believe” (or the negatives thereof) or other variations thereof. Due to various risks and uncertainties, actual events or results or actual performance may differ materially from those reflected or contemplated in such forward-looking statements, which speak only of the date they are made. Any projection of the performance of an investment provided is highly speculative and represents the opinion of Research Affiliates, which may change. The projected performance is based on certain investment models, predictions and assumptions. To the extent these models, predictions and assumptions are not correct or circumstances change, the actual performance may vary substantially, and be less than, the projected performance. The projected performance is not a guaranteed return and any investment includes significant risks, including the loss of your entire investment. Contact info@rallc.com for a copy of the Research Affiliates current Form ADV Part 2A or Part 2B. Research Affiliates Form ADV Part 1A is available through the SEC’s public website.

No investment process is risk free and there is no guarantee of profitability; investors may lose all of their investments. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Diversification does not guarantee a profit or protect against loss. Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. The prices of small- and mid-cap company stocks are generally more volatile than large-company stocks. They often involve higher risks because smaller companies may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions. 

Equities may decline in value due to both real and perceived general market, economic and industry conditions and investors should be prepared and able to absorb a loss of some or all of their investment. There is no guarantee that Research Affiliates’ investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. Investors should consult their investment professional prior to making an investment decision.

Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline of the value of your investment. High-yield bonds, also known as junk bonds, are subject to greater risk of loss of principal and interest, including default risk, than higher-rated bonds. Investing in fixed-income securities involves certain risks such as market risk if sold prior to maturity and credit risk especially if investing in high-yield bonds which have lower ratings and are subject to greater volatility. All fixed-income investments may be worth less than their original cost upon redemption or maturity. Income from municipal securities is generally free from federal taxes and state taxes for residents of the issuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income for some investors may be subject to the federal alternative minimum tax (AMT). 

Investments that are concentrated in a specific sector or industry increase their vulnerability to any single economic, political or regulatory development. This may result in greater price volatility.

RAFI Indices, LLC is a California limited liability company which is a wholly-owned subsidiary of Research Affiliates Global Holdings, LLC.  RAFI Indices, LLC constructs and publishes various indices and does not offer or provide investment advice or offer or sell any securities, commodities or derivative instruments or products. Any such business may only be conducted through registered or licensed entities and individuals permitted to do so within the respective jurisdiction and only in conjunction with the legally required disclosure documents and subject to the legally required regulatory filings.

The RAFI trademark is used under license by RAFI Indices, LLC.  The RAFI Indices, LLC corporate name and all related logos are the exclusive intellectual property of RAFI Indices, LLC.

RAFI Indices, LLC, its affiliates, agents, and each of their respective officers, directors, employees, agents, representatives and licensors (collectively “RI”) shall not be liable to any third party for any loss or damage, direct, indirect or consequential, arising from or related to (i) any inaccuracy or incompleteness in, errors or omissions in the website content or (ii) any decision made or action taken by any third party in reliance upon such content.  RI does not make any warranties, express or implied, to anyone regarding the website content, including, without limitation, any warranties with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for a particular purpose or any warranties as to the results to be obtained by any third-party in connection with the use of the content.  RI shall not be liable to anyone for loss of business revenues, lost profits or any indirect, consequential, special or similar damages whatsoever, whether in contract, tort or otherwise, even if advised of the possibility of such damages.

The content displayed in our Communication that is associated in any way with RAFI Indices, LLC is for information purposes only. This material is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument, nor is it advice or a recommendation to enter into any transaction. Any offer to sell or a solicitation of an offer to buy or sell shall be made solely by the legally permitted entity registered or licensed with the applicable regulator(s) and only to qualified investors through a regulatory registration statement or subject to an applicable exemption and disclosure document such as a private placement memorandum for pooled investment vehicles, or investment management agreement for separately managed accounts. The information contained herein should not be construed as financial or investment advice on any subject matter. RI does not warrant the accuracy of the information provided herein, either expressed or implied, for any particular purpose.

The index data published in our Communication may be simulated and, in such instances, no allowance has been made for trading costs, management fees, or other costs, are not indicative of any specific investment, are unmanaged and cannot be invested in directly. Past performance, including simulated performance, is no guarantee of future performance and actual index results may differ. Any information and data pertaining to an index contained in this document relate only to the index itself and not to any asset management product based on the index.

Investors should be aware of the risks associated with data sources and quantitative processes used in the creation of index related data. Errors may exist in data acquired from third party vendors, the construction of indices, and in coding related to the index construction process. While RI takes steps to identify data and process errors so as to minimize the potential impact of such errors on index performance, they cannot guarantee that such errors will not occur.

Certain names, words, titles, phrases, logos, icons, graphics or designs in the pages of our Communication may constitute trade names, registered or unregistered trademarks or service marks ("Trademarks") of Research Affiliates or its affiliated entities or of third parties and used under license by Research Affiliates. However, the display of Trademarks on pages in our Communication does not imply that any license has been granted to any third party.

All information in our Communication is protected under the copyright laws of the United States and/or other countries. Users of this Website are prohibited from using any information or data from this Website unless functionality to facilitate such use is clearly provided and any such use shall only be permitted for personal, non-commercial use. All other uses, redistributions, reproductions, or republishing, in any form, are strictly prohibited without the prior written consent of Research Affiliates.

Any unauthorized downloading, re-transmission, or other copying or modification of Trademarks or other contents of our Communication may be a violation of statutory or common law rights which could subject the violator to legal action.

The FTSE Research Affiliates Fundamental Indexes are calculated by FTSE International Limited (“FTSE”) in conjunction with Research Affiliates. All rights and interests in the FTSE Research Affiliates Fundamental Indexes vest in FTSE. All rights in and to the Research Affiliates Fundamental Index™ weighting methodology used in the calculation of the FTSE Research Affiliates Fundamental Indexes vest in Research Affiliates. All rights in the FTSE indexes and / or FTSE ratings (together the “FTSE Data”) vest in FTSE and/or its licensors. Except to the extent disallowed by applicable law, neither FTSE nor Research Affiliates nor their licensors shall be liable (including in negligence) for any loss arising out of use of the FTSE Research Affiliates Fundamental Indexes, the FTSE Data or underlying data by any person. “FTSE®” is a trademark of the London Stock Exchange Plc and is used by FTSE under license. “Research Affiliates” and “Fundamental Index” are trademarks of Research Affiliates. FTSE is not an investment adviser and makes no representation regarding the advisability of investing in any security. Inclusion of a security in an index is not a recommendation to buy, sell or hold such security. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Copyright MSCI. All Rights Reserved. Without prior written permission of MSCI, this information and any other MSCI intellectual property may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an “as is” basis, and the user of this information assumes the entire risk of any use made of this information. Neither MSCI nor any third party involved in or related to the computing or compiling of the data makes any express or implied warranties, representations or guarantees concerning the MSCI index-related data, and in no event will MSCI or any third party have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) relating to any use of this information.

Certain indices referenced herein may be calculated by S&P Dow Jones Indices LLC or its affiliates. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates. Investment products based on any such indices are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and none of S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates makes any representation regarding the advisability of investing in such product(s).

S&P Dow Jones Indices LLC, its affiliates, sources and distribution agents, and each of their respective officers, directors, employees, agents, representatives and licensors (collectively, the “Index Calculation Agent”) shall not be liable to Research Affiliates, any customer or any third party for any loss or damage, direct, indirect or consequential, arising from (i) any inaccuracy or incompleteness in, or delays, interruptions, errors or omissions in the delivery of the RAFI™ US Equity Long/Short Index or any data related thereto (the “Index Data”) or (ii) any decision made or action taken by Research Affiliates, any customer or third party in reliance upon the Index Data. The Index Calculation Agent does not make any warranties, express or implied, to Research Affiliates, any of its customers or anyone else regarding the Index Data, including, without limitation, any warranties with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for a particular purpose or any warranties as to the results to be obtained by Research Affiliates, any of its customers or other person in connection with the use of the Index Data. The Index Calculation Agent shall not be liable to Research Affiliates, its customers or other third parties for loss of business revenues, lost profits or any indirect, consequential, special or similar damages whatsoever, whether in contract, tort or otherwise, even if advised of the possibility of such damages.

Citigroup Index LLC, a subsidiary of Citigroup Inc., and Research Affiliates, have agreed to jointly create and distribute investable fixed income indices (the “Citi RAFI Bonds Index Series”) based on the Research Affiliates’ patented Fundamental Index™ methodology. All intellectual property, including trademarks, contributed by Research Affiliates and Citigroup Index LLC shall remain solely vested with the respective contributor. Neither Citigroup Index LLC nor Research Affiliates make any warranties, express or implied, to any of their customers or anyone else regarding the accuracy or completeness of any data related to the Citi RAFI Bonds Index Series. All information is provided for information purposes only. Neither Citigroup Index LLC nor Research Affiliates accept any liability for any errors or any loss arising from the use of any data or information set forth herein. The opinions expressed herein are solely those of Research Affiliates, except where otherwise indicated. Citigroup Index, LLC is not responsible for the formatting or configuration of this material, for any opinions expressed, or for any inaccuracy in Research Affiliates’ presentation thereof. CITI is a registered trademark and service mark of Citigroup Inc. or Citibank, N.A., is used under license by Research Affiliates and is used and registered throughout the world. 

The RAFI™ Bonds US Investment Grade Index and RAFI Bonds US High Yield Index is calculated by ALM Research Solutions, LLC in conjunction with Research Affiliates. All rights and interests in the RAFI Bonds US Investment Grade Index and the RAFI Bonds US High Yield Index vest in Research Affiliates. All rights in and to the Research Affiliates Fundamental Index™ concept used in the calculation of the RAFI Bonds US Investment Grade Index and the RAFI Bonds US High Yield Index vest in Research Affiliates. The RAFI™ Bonds US Investment Grade Index and the RAFI Bonds US High Yield Index are not sponsored, endorsed, sold or promoted by ALM Research Solutions, LLC, and ALM Research Solutions, LLC makes no representation regarding the advisability of investing in such product(s). Neither ALM Research Solutions, LLC nor Research Affiliates make any warranties, express or implied, to any of their customers nor anyone else regarding the accuracy or completeness of any data related to the RAFI Bonds US Investment Grade Index or the RAFI Bonds US High Yield Index. All information is provided for information purposes only. Neither ALM Research Solutions, LLC nor Research Affiliates accept any liability for any errors or any loss arising from the use of information in this publication. 

Frank Russell Company is the source and owner of the Russell index data contained or reflected in this material and copyrights related thereto. Frank Russell Company and Research Affiliates have entered into a strategic alliance with respect to the Russell Fundamental Indexes. Subject to Research Affiliates’ intellectual property rights in certain content, Frank Russell Company is the owner of all copyrights related to the Russell Fundamental Indexes. Russell® is a trademark of Frank Russell Company. Frank Russell Company and Research Affiliates jointly own all trademark and service mark rights in and to the Russell Fundamental Indexes. Research Affiliates is the owner of the trademarks, service marks, patents and copyrights related to the Fundamental Index™ and the Fundamental Index methodology. The presentation may contain confidential information and unauthorized use, disclosure, copying, dissemination, or redistribution is strictly prohibited. This is a presentation of Research Affiliates. Frank Russell Company is not responsible for the formatting or configuration of this material or for any inaccuracy in Research Affiliates’ presentation thereof.

The trademarks Fundamental Index™, RAFI™, RAFI Low Volatility™, RAFI Dynamic Multi-Factor™ ; RAFI Multi-Factor™; RAFI Indices™ ; Research Affiliates Equity™, RAE™ and the Research Affiliates™ trademark and corporate name and all related logos are the exclusive intellectual property of Research Affiliates and in some cases are registered trademarks in the U.S. and other countries including United States Registrations 3,286,704; 3,275,863; 4,501,481; 4,296,159; 4,368,339; 3,319,055; 4,327,921; 4,828,093; 4,828,094; 4,942,123; US Pending Registrations 87,807083; 87,328856; 87,792024; 87,640004; Australia Registrations 1,142,019; 1,151,464; 1,430,186; 1,640,100; 1640099; Australia Pending Application 1677419; Brazil Pending Applications 840,827,261; Brazil Registrations 840,815,425; 840,827,270; 840,827,300; 840,827,253; 840,815,328; 840,827,237; 840,827,245; Brazil Pending Application 840,827,261; Canada Registrations TMA722,568; TMA715,271;TMA 917,309; TMA 927,651; Canada Pending Application 1796972;  China Registrations 7,234,013; 7,234,014; 8,805,524; 13,271,508; 15136525; 15136526; 13271509; European Community Registrations 4,201,844; 4,364,097; 010,045,383; 013,033,337; 013,161,856; 013,161,849; 013,723,861; European Pending Registration 017858671; Hong Kong Registrations 300,945,748; 303096027;303096036; India Registrations 2,033,339; 2,033,337; 2638593; India Pending Applications 2,638,595, 2,638,594, 2,920,877; Ireland Registration 255828; Israel Pending Application 278415; Japan Registrations 5,044,103; 4,918,995; 5,763,741; 5,772,652; 5,772,651; 5796486; South Africa Registrations 2007/14048; 2007/14049; 2007/26574; 2007/26575; 2007/26689; 2007/26690; 2014/21188; 2014/21189; Switzerland Pending Applications 62793/2017; 52658/2018; Taiwan Registrations 013,511,611; 1,315,612;1729071; United Kingdom Registration UK00003093530; United Kingdom Pending Registration 00003292353.

Various features of the Fundamental Index methodology, including an accounting data-based non-capitalization data processing system and method for creating and weighting an index of securities, are protected by various patents, and patent-pending intellectual property of Research Affiliates (US Patent Nos. 7,117,175;  7,587,352; 7,778,905; 7,620,577; 7,792,719; 8,374,937; 8,374,939; 8,374,951; 8,380,604; 8,533,081; 8,589,276; 8,560,414; 8,589,276; 8,694,402; RE 44,098; RE 44,362; Patent Pending Publ. Nos., WO 2005/076812; WO 2007/078399 A2; WO 2008/118372; Patent Pending App. Nos. 15/229129; 2017,221899; AU Patent Nos. 2005213425; 2007288236; AU Innovation Patent No. 2012101980; AU Patent Pending App. No. 2012298732; Bahamas Patent No. 2085; Bermuda Patent Pending App. No. 529BM; Japan Patent Nos. 5219835; 5503839; Korea Patent No. 10-1179346; New Zealand Patent Nos. 549626; 549656; 569869; PCT Patent Pending App. Nos. US05/02345; US06/042430; US08/03762; US12/52173; US2005/003673; US07/18595; Singapore Patent Nos. 118042; 124568; 144959; 155418; South Africa Patent Nos. 2006/08264; 2006/08265; 2007/08442; 2008/05950; 2009/06267; Taiwan Patent No. I346909). Intellectual property protected by one, or more, of the foregoing may be used in material presented.