F-Squared Investments Announces First Multi-Asset High Income Strategy with Embedded Downside Risk Management

The AlphaSector® Multi-Asset High Income strategy is designed to deliver above-market current income with the downside protection demanded by clients

PR Newswire

WELLESLEY, Mass., Sept. 9, 2013 /PRNewswire/ -- F-Squared Investments, one of the fastest growing investment management firms in the country with more than $15 billion in assets, is pleased to announce the launch of a new strategy linked to the AlphaSector Multi-Asset High Income Index (MAHI). The MAHI strategy is designed to provide investors with a globally diversified portfolio of high yielding equity and fixed income investments, while offering investors protection against significant market declines – including declines triggered by a dramatic rise in interest rates, which can cause significant losses in a fixed income portfolio, or material declines in global equity markets.

The MAHI strategy builds on the strength of F-Squared's industry-leading ability to embed downside risk management directly into traditional asset classes. MAHI invests in a globally diversified portfolio of exchange-traded funds (ETFs) that represent higher income investments in both fixed income and equity markets, as well as a short term Treasury ETF.  These ETFs are actively evaluated on a weekly basis to determine whether any individual ETF is in danger of meaningful declines, in which case it is removed from investment consideration.  If a majority of the ETFs in the portfolio are deemed unattractive, the Index (and corresponding Separate Accounts) will begin to include "cash" via the short-term Treasury ETF.  Although unlikely, the strategy can go 100% to short-term Treasuries if necessary.

"The historic decline in yields for traditional, higher quality bonds over the past few years has created a dangerous trap for investors," said Howard Present, President and CEO of F-Squared Investments. "As investors have crept out on the risk curve to capture higher yields, they put their capital, as well as their emotional wellbeing, increasingly at risk.  MAHI is designed to offer the yield investors are searching for while still protecting them from the ravages of significant market declines."

MAHI is being made immediately available to clients and prospects through a Separate Account format.

About F-Squared Investments

F-Squared, based in Wellesley, MA, is an SEC registered investment adviser offering a full range of investment solutions based on their proprietary AlphaSector® and PoRT™ investment capabilities. The AlphaSector strategies represent the industry's largest suite of investment solutions targeting upside participation in rising markets with embedded downside risk management.  By seeking to deliver innovative solutions targeting the real needs of investors, F-Squared Investments has achieved superior growth, with firm assets, including wholly-owned subsidiaries, now exceeding $15 billion. Visit www.f-squaredinvestments.com for more information on F-Squared.    



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