FundQuest will be putting its ActivePassive Funds on the Schwab platform soon. The ActivePassive Funds are already available through Fidelity Investments, Pershing and TD Ameritrade. FundQuest received the go-ahead from the SEC to launch the funds, which include four equity funds, two bond funds and three international funds, in December.
Company Press Release
Boston, MA, April 21, 2008 – FundQuest, a provider of turnkey managed account
solutions, launched nine mutual funds as part of their new ActivePassive Funds
family. These funds combine active and passive investment strategies within a
single portfolio and are now available through Fidelity, Pershing and TD Ameritrade.
The ActivePassive Funds will soon launch with Schwab and a number of other major
firms.
The ActivePassive Funds family offers four U.S. equity funds, two U.S. bond funds
and three international funds. The funds are founded on proprietary research that
FundQuest conducts on an ongoing basis which compares the benefits of active and
passive portfolio management in 58 major categories or styles of investments. The
study evaluated more than 16,000 actively managed funds representing over $7
trillion in assets and examined historical data going back 15 years. The research was
designed to uncover what portion of a fund’s true return was actually derived from
the unique skill of the manager, as well as the percentage of active managers that
outperformed their category benchmark over different time periods.
“FundQuest has been conducting research on the benefits and challenges of active
and passive investment management for years,” says Tim Clift, Chief Investment
Officer at FundQuest. “This most recent research was enhanced and provided us
with remarkable information. By leveraging the results of the study, we believe we
are providing investors with a unique product.”
The results of FundQuest’s study determined the optimal percentage of actively and
passively managed investments for each of the nine funds. The range of active
management in each fund varies from an optimal 36% for large cap to an optimal
95% for emerging markets. Though, as Clift explains, “the current ratios between
active and passive investments may change over time as markets fluctuate and
performance changes.” FundQuest hired subadvisers for the active management
portion of the funds and the passive investments incorporate either exchange traded
funds or index-based mutual funds that closely track each category’s index.
“These new funds are examples of our ongoing efforts to build upon our Investment
Management Team’s core strengths in investment research, analysis and selection”,
continued Clift, “and the innovative construction of the ActivePassive Funds
reinforces FundQuest’s dedication to providing a breadth of wealth management
solutions to investors.”
To learn more about the ActivePassive Funds, visit www.activepassivefunds.com.
About FundQuest
FundQuest can help financial institutions and their financial advisors to grow their
business. Services are delivered via partnerships with over 110 financial institutions.
The combined US and European operations of FundQuest have $43 billion in assets
under management and administration. Financial institutions leverage FundQuest’s
flexible menu of wealth management solutions to provide: retirement income
management, unified managed accounts, mutual fund advisory, separately managed
accounts, trust services, annuities, exchange-traded funds, and alternative
investments.
FundQuest is an innovative and flexible partner providing overall support for
advisors and management. The company’s open architecture investments, objective
investment management services, and sales and operational support services help
financial advisors to address their clients’ important financial goals. Services are
offered in the US through FundQuest Incorporated, a Registered Investment Advisor
founded in 1993. FundQuest is owned by BNP Paribas, which provides banking and
financial services, and has operations in 85 countries.
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