F-Squared Investments has exceeded USD10bn in assets under management or model manager agreements as of 4 January 2013, up from approximately USD5.6bn in the previous year.
2012 marked the second year in a row that the firm’s assets grew by more than USD4bn, with growth coming across all business segments.
F-Squared’s growth has been fuelled by strong demand for the firm’s AlphaSector suite of solutions, which provide investors with upside participation plus embedded downside risk management.
F-Squared’s growth in 2012 came primarily from its Advisor Solutions and Alternatives business units. F-Squared continued to be one of the industry’s more successful firms in gathering Separately Managed Account (SMA) assets, with net flows exceeding USD1.5bn in 2012. The firm’s Liquid Alternative offerings were commercially launched in 2012 through a sub-advised 40 Act mutual fund, SMAs, and institutional investment vehicles, and grew by more than USD400m in assets.
"Our growth over the past two years reflects growing recognition of the need for a different approach to investing that prioritises downside risk management and repeatability of returns, rather than attempting to just beat benchmarks," says Howard Present (pictured), president and chief executive of F-Squared Investments. "Investors are tired of losing money, and financial professionals at all levels recognise that clients cannot reach their investment goals while being forced to repeatedly suffer through significant periods of loss."
