HEADLINES

September, 2008 - Parametric and Research Affiliates join forces to bring eRAFI Indexes to Wealth Management Market

We are pleased to announce a new capability within our suite of services for the high-net-worth investor.

In August of 2008 Parametric entered into a limited exclusive agreement with Research Affiliates®, LLC (RA) to license RA’s Enhanced Research Affiliates Fundamental Index® (eRAFI®) methodology. The eRAFI suite builds upon RA’s very popular RAFI® methodology. eRAFI portfolios are enhanced through RA’s proprietary research utilizing additional factors which may include quality of earnings, financial distress and momentum. RA’s enhancements are intended to reduce risk and/or improve the rate of return.

As an extension to its Tax Managed Core equity product, Parametric will offer customized, explicitly tax-managed separate accounts benchmarked to the eRAFI indexes. Parametric will target a broad wealth management market – including single and multi-family offices, independent Registered Investment Advisors, and broker/dealer based SMA and UMA product platforms. The agreement between Parametric and RA establishes Parametric as the sole partner providing the eRAFI index suite for the tax-managed separate account market. Parametric has been offering Tax Managed Core portfolios benchmarked to RAFI indexes since the indexes were made available.

Research Affiliates began managing U.S. enhanced RAFI Large Company assets through a limited partnership in 2004. Their back-tested results go back to 1962 for U.S. equities.

Brian Langstraat, CEO of Parametric, stated, "Fundamentals Weighted® index strategies are very attractive to our clients and are a natural addition to the array of benchmarks we offer for a Tax Managed Core portfolio. Research Affiliates is a high quality partner and a demonstrated leader in this area. Clients and advisors are particularly attracted to their depth of research, product support, and the fact that their methodology is naturally tax-efficient.”

About Research Affiliates

Research Affiliates is a global leader in innovative investing and asset allocation strategies. Dedicated to solving complex investment issues, Research Affiliates creates innovative strategies that respond to the current needs of the market. Leveraging our strong research focus, RA distributes products in partnership with some of the world's leading financial institutions. Approximately $40 billion in assets are managed worldwide using investment strategies developed by RA.

The trademarks Research Affiliates®, Fundamental Index®, RAFI®, eRAFI® and Fundamentals Weighted® are the exclusive intellectual property of and are being used under license with Research Affiliates, LLC. Any use of these tradenames and logos without the prior written permission of Research Affiliates, LLC is expressly prohibited. Fundamental Index®, the non capitalization method for creating and weighting of an index of securities, is the patent pending proprietary intellectual property of Research Affiliates, LLC (Patent Pending. Publ. Nos. US 2005-0171884-A1, US 2006 0015433-A1, US 2006 0149645 A1, US 2007 0055598 A1, WO 2005/076812, WO 2007/078399 A2 and EPN 1733352).