"In an economy defined by overcapacity, oversupply, and utter sensory overload . . . the only way to stand out from the crowd is to stand for a truly distinctive set of ideas about where your industry should be going. You can't do big things as a competitor if you're content with doing things only a little better than the competition."
F-Squared believes that by rethinking the investment process, from the construction of investment solutions through the means of delivering it, we can materially improve the investment result for clients, while also substantially reducing the cost of investing.
How F-Squared Investments is different:
- We are the industry's low cost leader in providing active equity investment management 1
- Our investment process is built upon an institutionally-proven approach that previously had been readily available to only the world's largest investors1
- Our Mission Statement is to deliver the industry's highest retained investor returns
LOW COST LEADER
Reducing fees is simply the most powerful, repeatable means of improving performance. F-Squared was founded on the premise of delivering active investment management at index level pricing. We designed the firm from the bottom up with this goal in mind, and believe we have set new industry standards for delivering world-class active management at price points that are up to 50% less expensive than the market.2
INSTITUTIONALLY-PROVEN INVESTMENT PROCESS
Our investment process is designed to deliver "institutional-caliber" results. Our goal is to deliver longer-term outperformance while attempting to avoid short-term performance disappointments.
The power of our investment process can be seen through the performance of our 18 specialty indexes (AlphaCycle™ Indexes), published daily by the American Stock Exchange. (Full performance data and Index construction information is available at www.activeindexsolutions.com.) Our AlphaCycle Indexes have historically outperformed both passive benchmarks and mutual fund peer groups on a consistent, repeatable basis3. For a complete overview of historical performance results: Performance Summary
F-Squared's primary investment solution involves creating Tracking Portfolios of individual stocks that are designed to replicate the performance of the AlphaCycle Indexes. The Tracking Portfolios are sometimes also known as Model Portfolios. Investments sponsored by F-Squared do not result in purchasing any of the funds that are reflected in our Indexes. Client investments are in a portfolio of individual stocks designed to replicate the performance of the Indexes.
We currently deliver our investments as personalized investment portfolios also known as Separately Managed Accounts (SMAs), and as Individually Managed Accounts (IMAs). IMAs are next generation versions of SMAs4 with significantly lower minimums and reduced costs. For more information on: IMAs:
TARGETING THE INDUSTRY'S HIGHEST RETAINED INVESTOR RETURNS
For most investors, the only return that counts is the return that they keep.
F-Squared has built a powerful investment engine while also establishing ourselves as the low cost leader for active equity management. We have also forged relationships with other firms that share our philosophy on client value and low costs to create tax efficient, low cost investment vehicles. The most compelling vehicle is the IMA, but our focus is to always identify the most efficient means of maximizing retained investor returns.
1
Sources: Morningstar Direct, Financial Research Corporation, F-Squared Investments
2
Sources: Morningstar Direct, Financial Research Corporation, Dover Research, and F-Squared Investments
3
Sources: American Stock Exchange, Morningstar Direct, F-Squared Investments, and "The Difficulty of Selecting Superior Mutual Fund Performance", Thomas P. McGulgan, Journal of Financial Planning, 2/2006.
4
F-Squared Investments DOES NOT GUARANTEE that the performance of the tracking models will in fact replicate the performance of the target AlphaCycle Index.
Copyright © F-Squared Investments, LLC. All rights reserved. "AlphaCycle" is a service mark of F-Squared Investments, LLC. This material is proprietary and may not be reproduced, transferred or distributed in any form without prior written permission from Active F-Squared Investments, LLC. F-Squared Investments, LLC reserves the right at any time and without notice to change, amend, or cease publication of the information. This material has been prepared solely for informative purposes. The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed. It is made available on an "as is" basis without warranty. Investment products that may be based on AlphaCycle Indexes are not sponsored by Active Index Solutions, LLC, and neither F-Squared Investments, LLC nor Active Index Solutions, LLC makes any representation regarding the advisability of investing in them. Inclusion of a mutual fund in an index does not in any way reflect an opinion of Active Index Solutions or F-Squared Investments regarding the investment merits of such a mutual fund. None of the mutual funds included in an index have given any real or implied endorsement or support to Active Index Solutions or to this index. One cannot invest directly in an index. Returns represent past performance, and are not guarantees of future results or indicative of any specific investment.
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