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Frost Investment Advisors Launches the Frost Aggressive Allocation Fund

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SOURCE Frost Investment Advisors, LLC

Completes Series of Frost Asset Allocation Funds

SAN ANTONIO, June 16, 2014 /PRNewswire/ -- Frost Investment Advisors, LLC, a registered investment advisor, recently launched the Frost Aggressive Allocation Fund (FCAAX) class A shares, which is the third in a series of asset allocation funds managed by Frost. This Fund joins the Frost Moderate Allocation Fund (FIBTX/FASTX), formerly the Frost Strategic Balanced Fund and the Frost Conservation Allocation Fund (FDSFX) class A shares, formerly the Frost Diversified Strategies Fund, to provide investors with a suite of funds targeted toward balancing risk and return in order to meet their long term investment objectives, moving beyond a target date focus. The new fund was first available for trading on May 19, 2014.

Frost Investment Advisors, LLC logo.

These three new Funds are actively managed by an experienced team of Frost Investment Advisors, LLC professionals, with an average of 19 years of investment experience. Managers of the Frost Aggressive, Moderate and Conservative Allocation Funds include Alan Tarver, CFA®; Brad Thompson, CFA®; Tom L. Stringfellow, CFA®, CFP®, CPA®, CIC®; David Telling, and Justin Hopkins.

The managers seek to provide total return, diversifying among different asset classes with investments in a combination of proprietary and third-party managed mutual funds and exchange traded funds. 

"Finding this balance takes discipline, experience, knowledge, technology, and strong asset selection," said Tom Stringfellow, president and chief investment officer of Frost Investment Advisors, LLC. "Frost has more than 25 years of experience in helping clients achieve their investment goals through asset allocation."

With total assets under management of $10.2 billion, including mutual fund assets of $2.9 billion as of March 31, 2014, Frost Investment Advisors began offering mutual funds in April 2008, initially to serve the needs of institutional clients, and expanding to offer retail shares in June 2008. With the Frost Target Risk Funds, the adviser now offers 16 managed and sub-advised strategies and mutual funds that include institutional and retail share classes.

Recent accomplishments and performance metrics include:

  • As of March 31, 2014, the Frost Total Return Bond Fund (FIJEX/FATRX) was ranked in the top three for one-year performance, the top three for three-year performance and the top eight for five-year performance, within its peer group, according to Morningstar.
  • In January of this year, the Frost Total Return Bond Fund (FIJEX/FATRX) passed $1 billion in assets for the first time. As of March 31, 2014, the combined share classes of the Fund had total assets of $1.07 billion.

Annualized performance through March 31, 2014, the Frost Total Return Bond Fund: (I share) 3.49% (one year), 6.37% (three year), 9.34% (5 year), 6.16% (since inception), 7.90% since inception of mutual fund (4-25-2008).  Expense ratios are: Total Return – I share: 0.49%; A share: 0.74%; Fee waivers are contractual through November 30, 2014. Investment performance reflects fee waivers in effect. Absent these waivers, total return and yield would be reduced.  There can be no assurance that the Advisor will continue to waive fees. Maximum Sales Charge for Frost Total Return Bond Fund is 2.25%. SEC 30 day yields are: Total Return – I share: 2.94%; A share: 2.64%.

About Frost Investment Advisors, LLC
The family of funds managed by Frost Investment Advisors, a wholly-owned subsidiary of Frost Bank, provides clients diversification by offering separate mutual funds for growth, value, asset allocation 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 $2.9 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 for the $10.2 billion in assets it manages, including the mutual fund assets referenced above, as of March 31, 2014. For more information, visit www.frostinvestmentadvisors.com.

About Frost Bank
Frost Bank is the banking, investments and insurance subsidiary of Cullen/Frost Bankers, Inc. (NYSE: CFR), a financial holding company with $24.7 billion in assets at March 31, 2014. One of 24 banks included in the KBW Bank Index and a top-50 U.S. bank by asset size, Frost provides a full range of business and consumer banking products, investment and brokerage services, insurance products and investment banking services to businesses and individuals  in the Austin, Corpus Christi, Dallas, Fort Worth, Houston, 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.

To determine if this Fund is an appropriate investment for you, carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing.  This and other information may be found in the Fund's prospectus, which may be obtained by calling (877) 713-7678.   Please read the prospectus carefully before investing.

Mutual fund investing involves risk including possible loss of principal.  Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. Bonds and bond funds generally decrease in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than the investment grade securities, due to the speculative nature of their investments. 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. There is no guarantee that the Fund's income will be exempt from federal or state income taxes.  Capital gains, if any, are subject to capital gains tax. Income from municipal bonds may be subject to the alternative minimum tax.

As of 3/31/2014 Frost Total Return Bond Fund (FIJEX, FATRX) was rated against the following number of Intermediate Term Bond funds over the following time periods: 1079 (one year); 942 (three years); 808 (five years).  With respect to these Intermediate Term Bond funds, FIJEX received a Morningstar Rating of 5 and 5 stars and FATRX received a Morningstar Rating of 5 and 4 stars respectively.

The Barclays US Aggregate Bond Index represents securities that are SEC-registered, taxable and dollar denominated. The index covers the US investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities and asset-backed securities. The Barclays 1-5 Yr US Government/Credit Index is comprised of Treasuries, Government-related issues, US dollar corporate securities, and specified foreign debentures and secured notes that have remaining maturities of more than one year but less than five years.  The Barclays Municipal Bond Index is a rules-based, market value weighted index engineered for the long-term tax-exempt bond market. To be included, bonds must have minimum credit rating of Baa and must have an outstanding par value of at least $5 million. Bonds must be at least one year from their maturity date. The Barclays 3 Yr Muni Bond Index is a broad based market index.  To be included, bonds must have minimum credit rating of Baa; outstanding par value of at least $5 million and be issued as part of a transaction of at least $50 million, have a dated date after December 31, 1990 and be at least one year from their maturity date.  Investors cannot invest directly in an index.

The Frost Diversified Strategies Fund's previous Benchmark is a 55/40/5 hybrid of the CBOE S&P 500 Buy/Write Index; HFRI Fund of Funds Composite and the Bank of America Merrill Lynch 3-Month US Treasury Bill Index. The CBOE (Chicago Board of Exchange) S&P 500 Buy/Write Index (BXM) is designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index.  HFRI Fund of Funds Composite is an equal-weighted index of fund of funds, both domestic and offshore.  To be included, the fund of funds needs at least $50 million under management or needs to have been actively traded for at least 12 months.  The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged index of Treasury securities that assumes reinvestment of all income. Indices are unmanaged and one cannot invest directly in an index. 

The Frost Conservative Allocation Fund's benchmark is a hybrid, including  the S&P 500 Index (30%), the MSCI All Country ex-US Index (10%), the Barclays US Aggregate Bond Index (51%), and the Barclays Global Aggregate ex-US Bond Index (9%).

The S&P 500 Index is a market-value weighted index consisting of 500 stocks chosen for market size, liquidity, and industry group representation, with each stock's weight in the Index proportionate to its market value. The Index is divided into two roughly equal Style Indexes. Morgan Stanley Capital International (MSCI) All Country World ex-US Index is a free float-adjusted market capitalization weighted index composed of approximately 2000 companies, and is representative of the market structure of 47 developed and emerging market countries in North and South America, Europe, Africa, and the Pacific Rim, excluding securities of US issuers. Barclays US Aggregate Bond Index represents securities that are SEC registered, taxable, and dollar denominated. The index covers the US investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. Barclays Capital Global Aggregate ex-U.S. Dollar Bond Index tracks investment-grade government, corporate, agency, and mortgage-related bonds in markets outside the U.S. Indices are unmanaged and one cannot invest directly in an index.

As of March 31, 2014, the Frost Conservative Allocation Fund's benchmark changed from the Blended 55/40/5 CBOE Index/HFRI Index/BofA Merrill Lynch Index to the Morningstar Conservative Allocation Index and the Blended 30/10/51/9 S&P Index/MSCI Index/Barclays Index/Barclays Global in connection with the Fund's strategy change.

The Frost Strategic Balanced Fund previous Benchmark is a 48%/12%/40% hybrid of the S&P 500 Index, MSCI All Country World ex-US index and the Barclays US Aggregate Bond Index. The S&P 500 Index is a market-value weighted index consisting of 500 stocks chosen for market size liquidity, and industry group representation, with each stock's weight in the Index proportionate to its market value.  The Morgan Stanley Capital International (MSCI) All Country World ex-US Index is a free float-adjusted market capitalization weighted index composed of approximately 2000 companies, and is representative of the market structure of 47 developed and emerging market countries in North and South America, Europe, Africa, and the Pacific Rim, excluding securities of US issuers.  The Barclays US Aggregate Bond Index represents securities that are SEC registered, taxable, and dollar denominated securities.  Investors cannot invest directly in an index.

As of March 31, 2014, the Frost Moderate Allocation Fund's benchmark changed from the Blended 48/12/40 S&P Index/MSCI Index/Barclays Index to the Morningstar Moderate Allocation Index and the Blended 45/15/34/6 S&P Index/MSCI Index/Barclays Index/Barclays Global in connection with the Fund's strategy change.

As of May 19, 2014, the Frost Aggressive Allocation Fund's benchmark is a 60%/20%/17%/3% hybrid of the S&P 500 Index, the MSCI ACWI Ex USA Index, the Barclay's US Aggregate Index and the Barclay's Global Aggregate Ex US Index. The S&P 500 Index is a market-value weighted index consisting of 500 stocks chosen for market size liquidity, and industry group representation, with each stock's weight in the Index proportionate to its market value.  The Morgan Stanley Capital International (MSCI) All Country World ex-US Index is a free float-adjusted market capitalization weighted index composed of approximately 2000 companies, and is representative of the market structure of 47 developed and emerging market countries in North and South America, Europe, Africa, and the Pacific Rim, excluding securities of US issuers.  The Barclays US Aggregate Bond Index represents securities that are SEC registered, taxable, and dollar denominated securities.  The Barclays Global Aggregate ex US Index represents securities of non-domestic issuers.   Investors cannot invest directly in an index.  

The Frost mutual funds are distributed by SEI Investments Distribution Co., which is not affiliated with the Advisor or its affiliates.

CFA® and Chartered Financial Analyst (CFA®) are trademarks owned by the CFA Institute.

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE

Renee Sabel
Corporate Communication
210.220.5416
rsabel@frostbank.com

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