Frost Launches Frost-Cinque Large Cap Buy-Write Equity Fund and
Frost Credit Fund
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.
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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.
About Frost
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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Renee Sabel
Media Relations
210.220.5416
rsabel@frostbank.com
SOURCE Frost Investment Advisors