Frost Investment Advisors' Funds Celebrate 10 Year Anniversary

SAN ANTONIO, June 1, 2018 /PRNewswire/ -- As its parent company, Frost Bank, celebrates its 150^th anniversary all through 2018, Frost Investment Advisors, LLC is commemorating an important milestone of its own: the Frost family of mutual funds' launch 10 years ago.

In the second quarter of 2008, Frost Investment Advisors – which itself had been created only months before – created seven internally managed mutual funds. Over the past decade, two of the original seven funds were retired and two new ones created. All have seen remarkable growth, with the total assets under management growing from $1.35 billion in early 2008 to over $3.6 billion as of April 30, 2018.

"Much of the growth of the fund family stemmed from the early history of Frost investment management within the fiduciary area of Frost," said Tom Stringfellow, the president, managing director and chief investment officer at Frost Investment Advisors. "Given the strong support of Frost management and our senior investment team, we were able to launch Frost Investment Advisors in record time."

Along with celebrating the 10^th anniversary of the funds, Frost Investment Advisors is launching Class A shares for two of its best-known funds, the Frost Total Return Bond Fund (FIJEX) and the Frost Credit Bond Fund (FCFBX). The launch of the Class A shares will help make the funds accessible to retail investors with sales charges of 2.5 percent up to $100,000; 2.0 percent from $100,001 to $249,000; 1.5 percent from $250,000 to $500,000; and 1.0 percent from $500,001 to $1 million. Above $1 million, the trade will execute at net asset value, similar to the funds' existing investor share class.

"These new Class A shares open up the opportunity for investors to benefit from the Frost fixed income team's expertise," Stringfellow said.

Over the past decade, the Frost family of funds has amassed a series of accolades. The Frost Total Return Bond Fund (FIJEX) is currently rated five stars by Morningstar, and has been a first-percentile fund on a 10-year basis and a second-percentile fund on a five-year basis. The Frost Credit Fund (FCFIX) has been rated four stars by Morningstar for five years and is an 18^th-percentile fund over five years. All of the other funds have received either three-star or two-star rankings.

Stringfellow noted that the funds' growth comes despite the turbulent timing of their beginning. "The markets were in their downturn by the time we had launched our mutual funds in April 2008," he said. "Over the ensuing year, while we did see a downturn in market values, our clients held in there. This spoke to the trust in our company and in our investment team."

The family of funds includes four fixed-income funds (Frost Total Return Bond, Frost Credit, Frost Low Duration Bond and Frost Municipal Bond) as well as three equity funds (Large Growth, Large Value and Mid-Cap). The management team overseeing them relies on a client-first investment philosophy that uses a disciplined selection process and an eye on long-term success to actively manage portfolios.

"The launching of Frost Investment Advisors and the funds was one of the more rewarding, and challenging, events in my life," Stringfellow said. "Since then, the senior management has remained intact, and we've had the full support from the senior management team at Frost to grow our footprint out of the traditional Texas markets to one where we compete with top mutual funds across the country."

About Frost:

Frost is the banking, investments and insurance subsidiary of Cullen/Frost Bankers, Inc. (NYSE: CFR), a financial holding company with $31.5 billion in assets at March 31, 2018. One of the 50 largest U.S. banks by asset size, Frost provides a full range of banking investments and insurance services to businesses and individuals in the Austin, Corpus Christi, Dallas, Fort Worth, Houston, Permian Basin, Rio Grande Valley and San Antonio regions. Founded in 1868, Frost has helped Texans with their financial needs during three centuries. For more information, visit www.frostbank.com.

About Frost Investment Advisors LLC
Frost Investment Advisors LLC, a wholly owned subsidiary of Frost Bank, one of the oldest and largest Texas-based banking organizations, offers a family of mutual funds to institutional and retail investors. The firm has offered institutional and retail shares since 2008.

Frost Investment Advisors' (FIA) family of funds provides clients with diversification by offering separate funds for equity, fixed income and allocation strategies. Registered with the SEC in January 2008, FIA manages more than $3.6 billion in assets in mutual funds, in addition to providing investment advisory services to institutional and high net-worth clients and Frost Bank's Trust department. The firm manages more than $4 billion in assets, including the mutual fund assets referenced above, as of April 30, 2018. 

Mutual fund investing involves risk, including possible loss of principal.

To determine if a Fund 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 (877) 713-7678. 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 the Advisor or its affiliates.

©2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Morningstar Rating™ for funds, or "star rating" is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three- year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

As of 04/30/2018: Frost Value Equity Fund (FIDVX, FADVX) was rated against the following numbers of U.S.-domiciled Large Value funds over the following time periods: 1081 funds in the last three years, 948 funds in the last five and 682 in the last ten. With respect to these Large Value funds, FIDVX received a Morningstar Rating of 3, 4 and 3 stars for those time periods and FADVX received a Morningstar Rating of 3, 3 and 3 stars as well. Frost Growth Equity Fund (FICEX and FACEX) was rated against the following numbers of U.S.-domiciled Large Growth funds over the following time periods: 1246 funds in the last three years, 1125 funds in the last five and 802 in the last ten. With respect to these Large Growth funds, FICEX received a Morningstar Rating of 4, 4, and 3 stars for the time periods of 3, 5 and 10 years and FACEX received a Morningstar Rating of 4, 3 and 3 stars for each period. Frost Municipal Bond Fund (FIMUX, FAUMX) was rated against the following numbers of U.S.-domiciled Muni National Intermediate Bond funds over the following time periods: 255 funds in the last three years, 232 funds in the last five and 154 in the last ten. With respect to these Muni National Intermediate Bond funds, FIMUX received a Morningstar Rating of 2, 3 and 2 stars for each time period. FAUMX received a Morningstar Rating of 2, 2 and 2 stars for the three, five and ten year periods. Frost Low Duration Bond Fund (FILDX, FADLX) was rated against the following numbers of U.S.-domiciled Short Term Bond funds over the following time periods: 447 funds in the last three years, 386 funds in the last five years and 254 in the last ten. With respect to these Short Term Bond funds,    FILDX received a Morningstar Rating of 3, 3 and 4 stars for those time periods and FADLX received a Morningstar Rating of 3, 3 and 4 stars. Frost Total Return Bond Fund (FIJEX, FATRX) was rated against the following number of Short Term Bond funds over the following time periods: 447 funds in the last three years, 386 funds in the last five and 254 in the last ten years. With respect to these Short Term Bond funds, FIJEX received a Morningstar Rating of 5, 5 and 5 stars and FATRX received a Morningstar Rating of 5, 5 and 5 stars for each time period. Frost Mid-Cap Equity Fund (FIKSX and FAKSX) was rated against 544 Mid Cap Growth Funds over the last three years, 480 in the last five and 344 in the last ten years. With respect to these Mid Cap Growth Funds, FIKSX received a Morningstar Rating of 2, 2 and 3 for those time periods and FAKSX received a rating of 2, 2 and 3 stars for the three, five and ten year periods. Frost Credit Fund (FCFIX and FCFAX) was rated against 583 High Yield Bond funds over the last three years and 489 funds in the last five. With respect to these High Yield Bond funds, FCFIX received a Morningstar Rating of 4 and 4 stars respectively and FCFAX received a rating of 4 and 4 stars respectively.

Investment products are not FDIC insured, are not a deposit or obligation of Frost Bank, and involves risk including possible loss of principal.

For more information:
Bill Day
210-220-5427 office
210-288-5498 mobile

SOURCE Frost

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http://www.frostbank.com