F-Squared Investments to Sub-Advise New Series of Target Risk Retirement Funds Designed to Provide Downside Tail Risk Protection

NEWTON, Mass., July 31, 2012 /PRNewswire/ -- F-Squared Investments today announced that it will serve as sub-advisor on the newly launched Reliance Trust AlphaSector Target Risk Collective Trust Funds. The series of five broadly diversified risk-based portfolios is aimed at 401(k) plan sponsors and participants who are looking for retirement investments that offer two critical layers of risk management - diversification and an active process of managing the threat of significant market losses, or tail risk.

The AlphaSector Target Risk Funds employ F-Squared's strategies to systematically de-risk equity and fixed income portfolio investments in challenging or bear markets, and then to re-risk as markets become more favorable.  The funds are globally diversified and are allocated across four existing F-Squared investment strategies that encompass US Equities, International Equities, Fixed Income, and Alternative asset classes. The allocation to each strategy depends on the risk-tolerance of each fund.

"During severe market downturns, traditional products are 'locked in' to the market decline because of their buy-and-hold approach. In the financial crash of 2008-2009, even broadly diversified target date funds suffered significant losses," said Bill Carey, President of F-Squared Retirement Solutions. "As fiduciaries, plan sponsors are looking for ways to protect participants from the risk of significant market losses. These new target risk funds offer two important layers of risk management to help participants achieve their retirement goals."

All of the new funds employ strategies designed to de-risk by eliminating sectors within each asset class that are expected to generate near-term losses for investors. They may also invest aggressively in cash equivalents to minimize losses from equity and fixed-income investments. F-Squared's US Equity strategy, incepted in 2001, has successfully defended clients against the brunt of the bear markets of 2002 and 2008. The Fixed Income strategy is one of the first designed to de-risk against both negative credit and interest rate events.

Research by F-Squared has shown that most current retirement investments, including popular target date and target risk funds, lack tail risk management and are not designed to react to significant market downturns. In contrast, the AlphaSector Target Risk Funds aim to deliver downside protection while providing meaningful participation in rising markets, improving the overall client experience.

The portfolios, which utilize low cost ETFs as underlying vehicles, are available as collective trust funds through Reliance Trust Company of Atlanta, Georgia.

About F-Squared Investments:

F-Squared Investments, based in Newton, MA, is an SEC registered investment adviser offering a range of investment solutions through sub-advised mutual funds, separate accounts, and institutional accounts. The firm's AlphaSector suite of solutions has provided investors a unique combination of upside participation in most bull markets, while seeking to deliver risk controls in bear markets. As of June 30, 2012, the firm had $7.5 billion of assets under management or advisement.

Visit www.f-squaredinvestments.com for more information on F-Squared.

For further information, please contact Brendan McCarthy at 857-404-0849 or via e-mail at [email protected].

Copyright © F-Squared Investments, Inc. All rights reserved. "AlphaSector" is a service mark of F-Squared Investments, Inc.

Media Contacts:

Doug Hesney/Zach Kouwe
Dukas Public Relations
212-704-7385
[email protected]/[email protected]

SOURCE F-Squared Investments