Jason Hsu, a co-founder of California-based Research Affiliates, creator of the ‘fundamental index’ and promoter of smart beta, has bought a majority interest in the firm’s Asian business, which has been re-formed into a new company known as Rayliant Global Advisors.
Hsu will remain the vice chairman and a shareholder of Research Affiliates, which will be a “significant minority” shareholder in the Hong Kong-based Rayliant.
The new fund management company will focus on smart beta strategies tailored to the Asian market, as well as strategies based on Greater China equities and/or bonds which are designed for foreign institutional investors.
Hsu said there was an enormous opportunity in Asia to impact the investment marketplace to achieve better investor outcomes, much as Research Affiliates has done in the US and EMEA.
Rob Arnott, the other co-founder of Research Affiliates, and its chairman and chief executive, said would continue to support Research Affiliates’ mission. “We think Jason is uniquely qualified to lead this effort in Asia. He’s researched Asian investment markets extensively and built an extraordinary network in East Asia,” Arnott said. “Jason will continue to help our business to grow with his entrepreneurial spirit, and we look forward to continuing to collaborate in research and product innovation.”
Newport Beach-based Research Affiliates was founded in 2002 and has about US$162 billion in assets worldwide being managed using investment strategies developed by the firm. An estimated US$4 billion in assets were managed using Rayliant’s strategies and another $21 billion were supported by Rayliant as the representative of Research Affiliates in Asia, as of January 1.
Hsu said: “In the future, the firm plans to add strategies based on Greater China equities and/or bonds. With this dual focus, Rayliant seeks to disrupt the Asian investment ecosystem to create better investor outcomes.”
Research Affiliates co-founder buys out Asian business