Robert D. Arnott (b. 1954) is an American writer and editor, who focuses on articles about quantitative investing. He edited the CFA Institute's Financial Analysts Journal, as well as three other books on equity and asset allocation management.^[1] Investment is a term with several closely related meanings in finance and economics. ... The CFA Institute, headquartered in the USA at Charlottesville, Virginia and formerly known as the Association for Investment Management and Research (AIMR), awards the prestigious Chartered Financial Analyst(CFA) designation. ... Asset allocation A large part of financial planning is finding an asset allocation that is appropriate for a given person in terms of their appetite for and ability to shoulder risk. ...

Mr. Arnott has also served as a Visiting Professor of Finance at the UCLA Anderson School of Management, on the editorial board of the Journal of Portfolio Management, the product advisory board of the Chicago Mercantile Exchange, and the Chicago Board Options Exchange.^[1] He previously served as Chairman of First Quadrant, LP, as global equity strategist at Salomon (now Salomon Smith Barney), as President of TSA Capital Management (now TSA/Analytic), and as Vice President at The Boston Company (now PanAgora). Mr. Arnott graduated from the University of California in 1977. ^[2] UCLA Anderson School of Management is one of eleven professional schools at the University of California, Los Angeles. ... President George W. Bush at the CME (March 6, 2001). ... The Chicago Board Options Exchange (CBOE), located at 400 South LaSalle Street in Chicago, is one of the worlds largest options exchanges with an annual trade of over 15 billion shares of stock options in more than 1200 companies, 50 stock indexes, and 50 exchange-traded funds (ETFs) [citation... This article needs to be cleaned up to conform to a higher standard of quality. ...

Writing

Arnott has published several academic papers, primarily in journals with which he is associated, on the effect of taxation on actively managed mutual fund returns. Active management refers to a portfolio management strategy where the manager makes specific investments with the goal of outperforming a benchmark index. ... The definition of a mutual fund is a form of collective investment that pools money from many investors and invests their money in stocks, bonds, dividends, short-term money market instruments, and/or other securities. ... In economics and political economy returns are the distributions or payments awarded to the various suppliers of the factors of production. ...

• 2000, "Investment Management Reflections," with Andrew L. Berkin and Jia Le. This paper argued that not only did 75% of actively managed equity mutual funds underperform the Vanguard S&P 500 Index Fund but that after taking into account taxation, 66 out of the 71 mutual funds in the sample underperformed. A later study that looked at the 1990s found that 322 out of 355 mutual funds in the sample underperformed the Vanguard S&P 500 Index Fund after tax.^[3]

• 2002, "What Risk Premium is 'Normal'?" with Peter Bernstein. This paper argued that much of previous stock market returns had come from price-to-earnings ratio expansion and dividend yields, the former of which is unsustainable and the latter of which is historically low. Therefore, stock market returns will be lower in the long-term than they have historically been.^[4] Arnott and Bernstein were awarded the Graham and Dodd Award for excellence in financial writing for this article.^[5]

• 2003, "Surprise! Higher Dividends = Higher Earnings Growth," with Cliff Asness. This paper stated that against traditional theory, that the more a public company paid out in dividends, the greater that company's earnings grew. Results were statistically significant and robust with respect to time period and after controlling for the investment-to-GDP ratio, earnings yield, and the slope of the yield curve. ^[6]

• 2005, "Fundamental Indexation" with Jason Hsu and Phil Moore. This paper introduced the idea of weighting indices by fundamentals instead of capitalization, stating that indices weighted by fundamentals tend to outperform indices weighted by capitalization with similar volatility.^[7] This paper was the recipient of the William F. Sharpe best-index related research paper award. Research Affiliates's fundamentally based indexes won the award for the most innovative benchmark index. ^[8]

Vanguard is an American investment management company that offers mutual funds and other financial products and services to individual and institutional investors in the United States and abroad. ... The S&P 500 is an index containing the stocks of 500 Large-Cap corporations, most of which are American. ... An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions. ... For the band, see 1990s (band). ... In finance, the PE ratio of a stock (also called its earnings multiple, just multiple, or P/E) is used to measure how cheap or expensive share prices are. ... A stock market is a market for the trading of company stock, and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately. ... The cover of Benjamin Graham (May 8, 1894 – September 21, 1976) was an influential economist and professional investor who is today often called the Father of Value Investing and the Dean of Wall Street. ... David LeFevre Dodd (1895 - 1988) was an American economist, financial analyst, collegiate educator, author, and close colleague of Benjamin Graham (1894 - 1976) at Columbia University. ... A dividend is the distribution of profits to a companys shareholders. ... A public company usually refers to a company which is permitted to offer its securites (i. ... Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ... Invest redirects here. ... The US dollar yield curve as of 9 February 2005. ... Fundamentally based indexes are indices in which stocks are weighted by a fundamental factor (e. ... Market capitalization, often abbreviated to market cap, is a measurement of corporate size that refers to the current stock price times the number of outstanding shares. ... An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions. ... Volatility most frequently refers to the standard deviation of the change in value of a financial instrument with a specific time horizon. ... William Forsyth Sharpe (born June 16, 1934) is Professor of Finance, Emeritus at Stanford Universitys Graduate School of Business and the winner of the 1990 Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel. ...

Research Affiliates, LLC

In 2002, Arnott founded Research Affiliates, a Pasadena, California-based investment management firm that manages over $19 billion in assets. The firm has been involved with fundamentally based indexes since mid-2004 and has worked with the FTSE Group to create indices based on this methodology. ^[9] A private company is a company that is independently owned. ... Pasadena is a city in Los Angeles County, California, United States. ... Pasadena is a city in Los Angeles County, California, United States. ... Financial services is a term used to refer to the services provided by the finance industry. ... Asset allocation A large part of financial planning is finding an asset allocation that is appropriate for a given person in terms of their appetite for and ability to shoulder risk. ... A website (or Web site) is a collection of web pages, images, videos and other digital assets and hosted on a particular domain or subdomain on the World Wide Web. ... Pasadena is a city in Los Angeles County, California, United States. ... In business and accounting an asset is anything owned, whether in possession or by right to take possession, by a person or a group acting together, e. ... FTSE Group (Footsie) is a British indices and associated data services provider. ...

On January 8, 2006, Research Affiliates sold a minority interest in the company to Nomura Asset Management.^[10] Minority interest in business is ownership of a company that is less than 50% of outstanding shares. ... The headquarters of Nomura in Tokyo, Japan Nomura Holdings, Inc. ...

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