Frost Launches Frost-Cinque Large Cap Buy-Write Equity Fund and Frost Credit Fund
Frost-Cinque Fund to use option strategies to potentially reduce volatility
Frost Credit Fund seeks to maximize total returns by investing in non-commoditized assets in domestic fixed-income markets
SAN ANTONIO, Dec. 3, 2012 /PRNewswire/ -- Frost Investment Advisors, LLC, a registered investment advisor, today launched the Frost-Cinque Large Cap Buy-Write Equity Fund (FCBWX - Institutional shares and FCAWX - Class A shares) and the Frost Credit Fund (FCFIX - Institutional shares and FCFAX - Class A shares), adding two new strategies to the firm's mutual fund family.
The Frost-Cinque Large Cap Buy-Write Equity Fund will combine large-cap equity assets with option strategies to potentially reduce market volatility and an investment strategy that includes buy-writes, protective puts and long-call options that may provide downside protection and increase portfolio income. The fund's investment strategy will also include:
- A large-cap equity portfolio diversified across industries and sectors, emphasizing companies that may out-perform their peers or the broader market
- A strategy to potentially mitigate market downside and increase portfolio income levels
- A long-term investment horizon with relatively low portfolio turnover.
Cinque Partners, a registered investment advisor headquartered in California, will manage the Frost-Cinque Fund as a sub-advisor. Cinque Partners' Managing Partner and Chief Investment Officer Alan Adelman will lead the management team for the fund. Adelman previously served as CIO for several large banking companies. "Frost Investment Advisors is a world-class investment organization, and Cinque Partners is proud to sub-advise this innovative fund offering," said Adelman.
"We are very pleased to be working with Cinque Partners on the Large Cap Buy-Write Equity Fund," said Tom Stringfellow , president of Frost Investment Advisors. " Alan Adelman and his team are industry experts on hedged equity investments, which may be appealing to our clients during a time of financial uncertainty and volatility."
The Frost Credit Fund seeks to maximize total return, consisting of income and capital appreciation. The fund invests in U.S. dollar-denominated high-yield fixed-income securities and other lower quality fixed income securities, which typically have a higher-risk profile when compared to government-issued fixed-income securities. The fund's strategy will be a domestic fixed-income portfolio composed of below-investment-grade corporate bonds, combined with both investment-grade and below-investment-grade mortgage-backed and asset-backed securities.
Jeffery Elswick , Director of Frost's Fixed-Income investments, will manage the Frost Credit Fund. Elswick has nearly 20 years of experience in fixed-income management and currently oversees Frost's four other fixed-income funds.
"We believe Frost has a unique opportunity to seek out and invest in assets that are routinely viewed as higher risk," said Tom Stringfellow . "Because the asset classes we are considering for investment are not commoditized, it may establish a competitive advantage relative to our peers."
Frost Investment Advisors began offering mutual funds to institutional clients in April 2008 and retail clients in June 2008. With the Frost-Cinque Large Cap Buy-Write Equity Fund and the Frost Credit Fund, the adviser now offers 16 mutual funds that include institutional and retail shares.
Recent rankings and performance metrics include:
- Four-Star Overall Morningstar Rating™ as of Sept. 30, 2012 for three funds – Frost Total Return Bond Fund (FIJEX), Frost Low Duration Bond Fund (FILDX), Frost Mid-Cap Equity Fund (FIKSX)
- Ranked by Barron's as one of the top 50 mutual fund families for 2010, 2011 and 2012
- More than a 7 percent share count increase in all funds for the 12-month period ending Sept. 30, 2012
- Frost Total Return Bond Fund (Institutional Share Classes) ranked in top 20 percent of peer group managers over a three-year period, as of Sept. 30, 2012, by Morningstar
The investment team includes a staff of more than 50 investment professionals in the main office in San Antonio and satellite locations in Austin, Dallas, Fort Worth and Houston.
About Frost Investment Advisors, LLC
Frost Investment Advisors, LLC, a wholly-owned subsidiary of Cullen/Frost Bankers, Inc. (NYSE: CFR), one of the oldest and largest Texas-based banking organizations, offers a family of mutual funds to institutional and retail investors. The company has offered institutional shares since April 28, 2008, with retail shares available since June 2008.
The family of funds managed by Frost Investment Advisors provides clients diversification by offering separate mutual funds for growth, value and balance across small-cap, small/mid-cap, multi-cap value and international equity classes, as well as taxable and tax-free bonds. Registered with the SEC in January of 2008, Frost Investment Advisors manages more than $2.8 billion in assets in the Frost mutual fund family, while also providing investment advisory services to institutional and high net-worth clients, and to the Frost Trust department, managing more than $8.8 billion in assets, including the mutual fund assets referenced above, as of Sept. 30, 2012.
About Cinque Partners, LLC
Cinque Partners, LLC, formed in 2012, is a registered investment adviser based in Los Angeles. Its investment strategy employs a diversified core equity portfolio, coupled with an integrated-options strategy, designed to reduce downside risk and exploit market volatility. Cinque Partners uses its unique investment perspective and processes to deliver discretionary advisory services to institutional investors and pooled investment vehicles. Led by Managing Partner and Chief Investment Officer Alan Adelman , the four partners on the Cinque team offer more than 100 years of investment management experience.
Cullen/Frost Bankers, Inc. (NYSE: CFR) is a financial holding company, headquartered in San Antonio, with $21.8 billion in assets at Sept. 30, 2012. Among the top 50 largest U.S. banks and one of 24 banks included in the KBW Bank Index, Frost provides a wide range of banking, investments and insurance services to businesses and individuals across Texas in the Austin, Corpus Christi, Dallas, Fort Worth, Houston, Rio Grande Valley and San Antonio regions. Founded in 1868, Frost has helped clients with their financial needs during three centuries. Additional information is available at frostbank.com.
Mutual fund investing involves risk including loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principals or from social, economic or political instability in other nations. To the extent the Fund invests in other investment companies, the Fund will be subject to substantially the same risks as those associated with the direct ownership of the securities held by such other investment companies. The Fund may also invest in derivatives. Derivatives are often more volatile than other investments and may magnify the Fund's gains or losses. Commodities are subject to substantial price fluctuations over short periods of time and may be affected by unpredictable economic, political and environmental events. Bonds and bond funds generally decrease in value as interest rates rise. Mortgage-backed securities are subject to prepayment and extension risk and therefore react differently to changes in interest rates than other bonds, Small movements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities. The use of leverage by the fund managers may accelerate the velocity of potential losses. There can be no assurance that the Fund will achieve its stated objectives. Diversification does not protect against market loss.
To determine if the Fund(s) is an appropriate investment for you, carefully consider the fund(s') investment objectives, risk, charges and expenses. This and other information can be found in the fund(s') prospectus which can be obtained by calling 1-877-71-FROST. Please read the prospectus carefully before investing.
The Frost Funds are distributed by SEI Investments Distribution Co. SEI Investments Distribution Co. is not affiliated with Frost Investment Advisors, Cinque Partners or its affiliates.
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For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ metric each month by subtracting the return on a 90-day U.S. Treasury Bill from the fund's load-adjusted return for the same period, and then adjusting this excess return for risk. The top 10 percent of funds in each category receive 5 stars, the next 22.5 percent receive 4 stars, the next 35 percent receive 3 stars, the next 22.5 percent receive 2 stars and the bottom 10 percent receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Ratings metrics. FIDVX was rated against 1063 (three years); US-domiciled Large Value funds and received a Morningstar rating of 2 stars; FICEX was rated against 1514 (three years); US-domiciled Large Growth funds and received a Morningstar rating of 3 stars; FIBTX was rated against 561 (three years) Conservative Allocation funds and received a Morningstar rating of 3 stars; FIMUX was rated against 213 (three years) Muni National Intermediate Bond funds and received a Morningstar Rating of 2 stars; FILDX was rated against 357 (three years) Short Term Bond funds and received a Morningstar Rating of 4 stars; FILMX was rated against 137 (three years) Muni National Short funds and received a Morningstar Rating of 3 stars; FIJEX was rated against 1019 (three years) Intermediate Term Bond funds and received a Morningstar Rating of 4 stars.
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SOURCE Frost Investment Advisors
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