- Charissa Brinkman 513.534.5204
Fifth Third Asset Management’s New Investment Strategy
Fifth Third Asset Management, Inc. (FTAM) announced today the addition of Structured Large Cap Plus to its existing institutional product array. FTAM’s Structured Large Cap Plus is a 130/30 strategy that employs the objectivity, discipline and consistency of a pure quantitative approach. The new strategy will also be available through a mutual fund.
FTAM has a history of offering innovative products, such as Liability Driven Investment Strategy (LDI) and Strategic Income Plus. Now FTAM continues that approach with Structured Large Cap Plus. Managed by FTAM’s Quantitative Strategies Group, the strategy seeks to outperform the S&P 500 Index with a target active risk between 3%-4% and a target short position of 30%.
"Quantitative investing and 130/30 strategies are highly complimentary. Through a combination of rigorous back testing, validation and live performance, we have a thorough knowledge of our investment model’s ability in predicting stock performance," said Mark Koenig, CFA, Managing Director of Quantitative Strategies at FTAM, "The ability to take limited short positions in the portfolio allows us to express negative views on smaller stocks in the benchmark." FTAM uses its proprietary alpha model to predict individual stock performance. Then FTAM exploits its long/short capability to seek returns in excess of the S&P 500. Adds Koenig, "This product is an alternative to traditional index investing and long-only strategies."
Keith Wirtz, CFA, President and Chief Investment Officer for FTAM, said, "Through our Structured Large Cap Plus product, we leverage the deep resources of our highly skilled quantitative team to seek strong investment results regardless of market conditions, while closely monitoring risk. This will provide clients with a higher level of diversification, more sophisticated risk management and potentially greater performance than is available from traditional long-only investment strategies."
FTAM is an investment adviser registered under the Investment Advisers Act of 1940. FTAM is a diversified asset management firm providing investment advisory services to institutional investors, private accounts, and mutual funds offering value, growth, core, and quantitative equity strategies as well as short-term, intermediate, and core fixed income and specialty income strategies. Through teams of experienced and knowledgeable investment professionals, advanced research resources and a disciplined approach, FTAM’s goal is to produce superior, long-term investment results and client satisfaction.
FTAM is headquartered in Cincinnati, Ohio with offices in Grand Rapids, Michigan; Cleveland, Ohio; Minneapolis, Minnesota; Pittsburgh, Pennsylvania; and New York, New York. As of March 31, 2007 FTAM had over $21.6 billion in assets under management.