Mutual fund sub-advisor F-Squared Investments will sub-advise on the newly launched Reliance Trust AlphaSector Target Risk Collective Trust Funds, which is aimed at 401(k) plan sponsors and participants.
The portfolios, which utilize low cost exchange-traded funds as underlying vehicles, are available as collective trust funds through Reliance Trust Company of Atlanta.
The AlphaSector Target Risk Funds employ F-Squared's strategies to systematically de-risk equity and fixed income portfolio investments in challenging or bear markets, and then to re-risk as markets become more favorable. The funds are globally diversified and are allocated across four existing F-Squared investment strategies that encompass US equities, international equities, fixed income, and alternative asset classes.
"In the financial crash of 2008-2009, even broadly diversified target date funds suffered significant losses," stated Bill Carey, president of F-Squared Retirement Solutions. "As fiduciaries, plan sponsors are looking for ways to protect participants from the risk of significant market losses. These new target risk funds offer two important layers of risk management to help participants achieve their retirement goals."
F-Squared had $7.5 billion of assets under management or advisement as of June 30.