Source joins forces with FTSE Russell and Research Affiliates to launch innovative index series

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Research Affiliates is a global leader in “smart beta[[Broadly defined as those that determine weightings by using a set of rules other than just market capitalisation.]]” and asset allocation. The innovative strategies and asset allocation models developed by the firm over the years have since been incorporated into portfolios by investment professionals throughout the world.    

Source’s Executive Chairman, Lee Kranefuss, said: “Many investors have been struggling to generate
income in the current environment, with bond yields low and with most high?yielding equity strategies
being overly exposed to low quality or low growth stocks. Our investors said they want a strategy that
focuses on dividends and is better?structured than what is currently available. This is why we approached
Research Affiliates and, together with FTSE, have developed these new investment strategies.”

Jason Hsu, Co?founder and Vice Chairman of Research Affiliates, explained: “Accessing high income
remains an unmet need for a good number of investors. We believe these new indices will address this
gap in the market, and they will aim to deliver high dividends from quality companies that can sustain
and potentially grow their dividends. We were delighted to work with Source on these new indices.”      

Caroline O’Shaughnessy, Managing Director, Sales and Marketing, FTSE Russell, commented:  
“As our partnership with Research Affiliates reaches its tenth year, we are proud that our close
collaboration continues to yield innovative benchmarks that respond to investor needs. Source’s licensing
of the FTSE RAFI Equity Income Index Series reflects this, as alternative benchmarks provide a critical, low
cost investment solution to a wide range of market participants.”

Source is the first ETF provider to license the new FTSE RAFI Equity Income Indices and later this year will
be launching funds that provide exposure to them.  

Research Affiliates and FTSE have been working together since 2005 and strategies linked to indices
developed by the two firms have approximately US$ 75 billion of assets under management[[Data by Research Affiliates and FTSE, as at 31 March 2015.]].

Source UK Services Limited is authorised and regulated by the Financial Conduct Authority in the UK.