Research Affiliates, LLC (Newport Beach)

Name: Research Affiliates, LLC
Address: 620 Newport Center Drive, Newport Beach, CA, 92660
Telephone: 949 325 8700

Research Affiliates, LLC is a large advisory firm based in Newport Beach. It manages $36.99 billion of regulatory assets for 57 client accounts. It has been registered with the SEC as an adviser since 2002 and has operated in the jurisdictions of California, Pennsylvania, Texas, and Virginia.

Research Affiliates provides portfolio management for investment companies, portfolio management for businesses and institutional clients, and non-discretionary investment advice to entities and licensing of intellectual property. It doesn't provide financial planning services to its clients. On top of advisory services, the firm doesn't engage in other business activities.

Research Affiliates: assets under management

The assets under management (AUM) of Research Affiliates, LLC is $36.99 billion. The firm's AUM has grown by 43419% since the beginning of its operation, and $774.35 million of the total AUM is attributable to clients outside of the United States.

The firm manages $10.14 billion in discretionary accounts and $26.85 billion in non-discretionary accounts. On average, the discretionary accounts where all decisions are made on behalf of the client hold $281.71 million each. Non-discretionary accounts, where clients actively manage their portfolios, generally hold around $1.28 billion.

Investments

The firm invests in exchange traded securities the most. They account for 96% of the total AUM. The second-largest asset type is investment and business development companies, which make up 1% of the firm’s portfolio. Investments in cash and cash equivalents form 1% of the total invested assets.

Fees & Commissions

The advisory firm has several streams of revenue. Clients pay Research Affiliates, LLC for their services and products based on a percentage of assets under management and performance-based fees. Compensation based on assets under management promotes a long-term relationship between a client and the adviser and helps align mutual interests. These fees don’t include brokerage commissions, interest, taxes, and other account expenses.

What kind of clients Research Affiliates serves?

The firm provides services to investment companies, other investment advisers, pooled investment vehicles, corporations or other businesses, pension and profit sharing plans, and state or municipal government entities. The largest group of clients of Research Affiliates is investment companies with 21 clients and $27.89 billion of assets under management. Among the 8 most similar advisory firms, Research Affiliates has the highest percentage of investment companies out of all clients.

The amount of regulatory assets under management is $36.99 billion for 57 clients. 19% of the firm’s clients are foreign persons or businesses.

Research Affiliates also advises several private funds.

Careers at Research Affiliates, LLC

The company employs 87 people that are either part- or full-time employees. 46 percent of the employees work as investment advisers or researchers. No employees are registered as investment adviser representatives with the state securities authorities.

There isn’t anyone with the role of looking for and bringing in new clients on behalf of the firm. The firm doesn’t compensate employees in addition to the salary for bringing in new clients. Employees don’t receive compensation from other entities for client referrals.

Direct owners and executive officers

Name	Entity	Date acquired	Ownership	Employer ID
Robert Douglas Arnott	Chairman, ceo, bd of members mgr	1 Mar 2002	Other	1532951
First Quadrant Lp	Member, owner class b stock	1 Mar 2002	Other	106698
Arnott Family Trust	Member, voting class a & non-voting class b	1 Aug 2002	75% - 100%	xxx-xx-xxxx
Janine Ann Nesbit	Chief administrative officer & chief compliance officer	1 Feb 2003	Other	4758984
Robert L. Arnott Trust	Member, non-voting class b	1 Dec 2003	Other	xxx-xx-xxxx
Sydney Arnott Trust	Member, non-voting class b	1 Dec 2003	Other	xxx-xx-xxxx
Richard J. Wiles Arnott Trust	Member, non-voting class b	1 Dec 2003	Other	xxx-xx-xxxx
Jason Hsu	Director, research	1 Jan 2005	Other	4923405
David Michael Hennessy	Director of marketing	1 Dec 2006	Other	1500915
Katrina Foulkrod Sherrerd	Member, non-voting class b, director strategic planning	1 Dec 2006	Other	5309454
Daniel Michael Harkins	Chief compliance officer	1 Mar 2008	Other	1010541
Llc Quatre Saisons Real Estate	Member, non-voting class b	1 Apr 2008	Other	26-2343839
Katrina Foulkrod Sherrerd	Member, non-voting class b, managing director, chief operating officer	1 Jan 2009	Other	5309454
Daniel Michael Harkins	Chief legal officer	1 Sep 2009	Other	1010541
Llc Research Affiliates Global Holdings	Holding company	1 Jan 2012	75% - 100%	45-3984434
Joseph Diederich Hattesohl	Chief financial officer	1 Jan 2012	Other	4371041
Jeffrey Andrew Smith	Chief compliance officer & assistant general counsel	1 Oct 2013	Other	4926961
Jason Hsu	Managing director, vice chairman	1 Apr 2014	Other	4923405
Katrina Foulkrod Sherrerd	Managing director, president and chief operating officer	1 Apr 2014	Other	5309454
Christopher Jon Brightman	Managing director, chief investment officer	1 Apr 2014	Other	4281210
Asher Kamali Ailey	Chief compliance officer and assistant general counsel	1 May 2017	Other	5990508

Indirect Owners

The SEC currently registers 13 indirect owners.

Name	Entity	Date acquired	Ownership	Employer ID
Robert Douglas Arnott	Chairman, limited partner	1 Apr 1988	Other	1532951
Timothy Stephan Meckel	Director of client serivce, limited partner	1 Sep 1988	Other	4348755
Max Darnell	Director of research, limited partner	1 Apr 1991	Other	2725102
Curtis Justin Ketterer	Chief operating officer, limited partner	1 Jun 1995	Other	4348261
Christopher Gerald Luck	Director of equity portfolio management, limited partner	1 Sep 1995	Other	4348289
First Quadrant Corp.	General partner	1 Dec 1995	50% - 75%	22-260400
Inc. First Quadrant Holdings	Owner	1 Dec 1995	75% - 100%	04-3413545
Inc. Affiliated Managers Group	Owner	1 Dec 1995	75% - 100%	04-3218510
Kent Charles Roberts	Director of marketing, limited partner	1 Mar 1997	Other	4348761
Phillip Todd Miller	Director of options products, limited partner	1 Mar 1999	Other	1284784
Robert Douglas Arnott	Trustor and trustee arnott family trust a member of research affiliates global holdings, llc	1 Aug 2002	25% - 50%	1532951
Robert Douglas Arnott	Trustor	1 Aug 2003	Other	1532951
Arnott Family Trust	Member of research affiliates global holdings, llc	1 Oct 2011	25% - 50%	xxx-xx-xxxx

Based in Newport Beach

The principal office where Research Affiliates, LLC performs its advisory services is located at 620 Newport Center Drive, Newport Beach, CA 92660, which is also the mailing address of the firm. It doesn’t run an office outside of the United States.

You can reach the main office by calling the phone number 949 325 8700 or by fax 949 718 0454. The normal business hours are 8:00 am pst to 5:00 pm pst on Monday - Friday. You can find more information about the New York firm at researchaffiliates.com and its LinkedIn profile.