NEWTON, Mass., June 14, 2012 /PRNewswire/ -- F-Squared Investments, one of the fastest growing investment management firms in the country with more than $7 billion in assets, is pleased to announce a significant upgrade to its AlphaSector Fixed Income Indices. Effective June 14, 2012 these Indices will have been redesigned to deliver quality returns in the event of either declining or increasing interest rates, positioning the strategies to succeed in today's ultra-low interest rate environment or in the event that the 25-year bull market in bonds finally comes to an end.
The enhancements are in keeping with the philosophy of the firm's AlphaSector product line which targets superior downside protection while meaningfully participating in rising markets. Key aspects of the modifications include an ability to "de-risk" in challenging markets by going 100% to Short-Term Treasuries, expanding the fixed income sector exposure to include TIPs and Floating Rate securities, and a revised investment algorithm that has an absolute return decision framework.
"Investors have recently had to weather two bear markets in equities, and now their concerns are increasingly turning to the risk of a crushing halt to the long-running bull market in bonds," said Howard Present, President and CEO of F-Squared Investments. "The client impact could be traumatic. Bonds are a critical risk management tool, and client expectations for losses are almost non-existent. Therefore, while our fixed income indices have fully delivered on their investment mandate since their launch in 2009, we have been working since late last year to upgrade the design to make them "inflation neutral", or independent of the direction of interest rates."
The fixed income strategies have been re-named to reflect their new and expanded positioning as a multi-sector, inflation neutral fixed income offering. The strategies are being rebranded as AlphaSector INFInity, derived from Inflation Neutral Fixed Income.
The enhanced INFInity indices will be automatically included within existing AlphaSector Allocator, Asset Allocation, and Target Risk indices and portfolios.
Additionally, given their unique and potentially critical positioning, for the first time the AlphaSector INFInity Indices will be made available as the basis for a stand alone separately managed account (SMA).
About F-Squared Investments
F-Squared Investments, based in Newton, MA, is an SEC registered investment adviser offering a range of investment solutions offered through sub-advised mutual funds, separate accounts, and institutional accounts. The firm's AlphaSector suite of solutions have provided investors a unique combination of upside participation in most bull markets, while delivering aggressive risk controls in bear markets. The firm has seen demand for its products translate to superior growth in assets, with firm assets increasing from $1.5 billion in early 2011 to more than $7 billion as of March 2012. Visit www.f-squaredinvestments.com for more information on F-Squared.
SOURCE F-Squared Investments