The first product, the Frost-Cinque Large Cap Buy-Write Equity Fund, is designed to "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."
Cinque's managing partner and chief investment officer, Alan Adelman, will lead the management team for this fund.
Meanwhile, the second product, the Frost Credit Fund will aim 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, according to the companies.
Jeffery Elswick, director of Frost’s fixed-income investments, will manage this fund.
Company Press Release
Frost Launches Frost-Cinque Large Cap Buy-Write Equity Fund
and Frost Credit Fund
Frost-Cinque Fund to use option strategies to potentially reduce volatility
Frost Credit Fund seeks to maximize total returns by investing in
non-commoditized assets in domestic fixed-income markets
SAN ANTONIO — 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.
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 atfrostbank.com.
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