RAFIEMT

RAFI Fundamental Emerging Markets Index

DATA AS OF: 2017-12-31  ASSET CLASS: Equity

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Commentary

The RAFI Fundamental Emerging Markets Index underperformed the market by 60bps in Q3 2017. Value headwinds have been a big driver to underperformance in 2017. After a strong rebound for value in 2016, value within Emerging Markets has gotten crushed, underperforming by 234bps in Q3 (5.7% for MSCI EM Value vs. 8.0% for MSCI EM) and 782bps for the entire year (20.3% for MSCI EM Value vs. 28.1% for MSCI EM).

Trailing Returns

Source: FactSet | Data: As of 12/31/2017 in USD | Inception Date: 01/31/2017

*Inception to Date (ITD) uses the first full month of returns after inception date. All returns prior to inception are simulated. Please see disclosures for important information regarding simulated performance.

** Tracking Error (TE) calculated against each section’s appropriate benchmark using the first full month of returns following index inception. Index returns prior to inception are simulated.

Characteristics

Source: FactSet | Data: As of 12/31/2017 in USD | Inception Date: 01/31/2017

Note: Portfolio characteristics derived from FactSet. Data prior to launch is simulated. One-way turnover data is historical average based on simulated history. Capacity is estimated at 50 basis point market impact level.

Top 10 Holdings

Source: FactSet | Data: From 1/1/1968 to 12/31/2017

Sectors

Source: FactSet | Data: From 1/1/1968 to 12/31/2017

Regions

Source: FactSet | Data: From 1/1/1968 to 12/31/2017

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