RICHMOND, Va., Sept. 24, 2019 /PRNewswire/ — RiverFront Investment Group and Strategas Asset Management are pleased to announce the launch of the RiverFront Strategas Policy Opportunities Portfolio (the “Portfolio”), now available in the RiverFront suite of investment solutions. The RiverFront Strategas Policy Opportunities Portfolio is composed of 50 large-cap domestic US stocks, rebalanced quarterly, using a proprietary quantitative approach to identify companies exhibiting the highest degree of “lobbying intensity1.” This portfolio provides a way in which an advisor can implement the thinking and research of Strategas in a portfolio.
The Portfolio (Benchmark: S&P 500) objective is to outperform the S&P 500 by investing in companies closely tied to public policy developments, namely through their lobbying activity with respect to the US federal government. Strategas Asset Management provides an investment model that is used to make the investment selections for the Portfolio.
“We have admired Strategas for many years as one of the global leaders in macro-economic research,” said Pete Quinn, President and CEO of RiverFront. “We followed their political research and saw a natural fit where the Policy Opportunities Portfolio could provide an equity solution that complements our broader global balanced solutions. Our commitment to serve financial advisers and Strategas’ experience as a global macro research firm form the basis for a natural partnership to deliver this solution to our clients.”
“Strategas has long respected the global investing strategies of RiverFront and we are honored to work with RiverFront to make the Policy Opportunities Portfolio available to financial advisors,” said Daniel Clifton, Portfolio Manager at Strategas Asset Management “Our research has found that an increasing share of company profits are being derived from public policy developments. With the government casting a larger shadow over financial markets and the 2020 election quickly approaching, the Policy Opportunities Portfolio is designed to invest in companies that place a priority on lobbying spend.”
RiverFront Strategas Policy Opportunities Portfolio will be available through financial advisors. To learn more contact RiverFront Investment Group at www.riverfrontig.com or 866-583-0744.
RiverFront Investment Group, LLC, is an investment adviser registered with the Securities Exchange Commission under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or expertise. The company manages a variety of portfolios utilizing stocks, bonds, and exchange-traded funds (ETFs). RiverFront also serves as sub-advisor to a series of mutual funds and ETFs. RiverFront is owned primarily by its employees through RiverFront Investment Holding Group, LLC, the holding company for RiverFront. Baird Financial Corporation (BFC) is a minority owner of RiverFront Investment Holding Group, LLC and therefore an indirect owner of RiverFront. BFC is the parent company of Robert W. Baird & Co. Incorporated (“Baird”), a registered broker/dealer and investment adviser. Past results are no guarantee of future results and no representation is made that a client will or is likely to achieve positive returns, avoid losses, or experience returns similar to those shown or experienced in the past.
ABOUT STRATEGAS ASSET MANAGEMENT
Founded in 2014, Strategas Asset Management is a macro thematic investment manager. Strategas Asset Management leverages “top-down” research and quantitative security selection to offer a suite of thematic and tactical investment strategies. SAM, which operates independently, is wholly owned by Baird Financial Corporation and as a result, is an affiliate of RiverFront Investment Group. Dan Clifton is the lead portfolio manager for the model on which the portfolio is based.
RiverFront has entered into a Model Provider Agreement with Strategas Asset Management (“SAM”), whereby SAM provides an investment model that is used to make the investment selections for the RiverFront Strategas Policy Opportunities (“RSPO”) portfolio. SAM is a registered investment advisor wholly owned by Baird Financial Corp. (“BFC”). SAM is an affiliate of RiverFront but is operationally independent from RiverFront. The model portfolio is generated by SAM’s and RiverFront’s affiliate, Strategas Securities, LLC (“STS”), a FINRA member broker-dealer and registered investment adviser. SAM, pursuant to an agreement with STS is authorized to offer and distribute the model portfolios to its clients, including RiverFront. STS is also wholly owned by BFC.
1Lobbying “intensity” is defined by large-cap U.S. companies with the highest lobbying strength based on the aggregate amount of dollars spent on lobbying activities by that company relative to the size of the company measured by reference to several fundamental factors (reported in quarterly corporate filings) and market factors (market capitalization, liquidity).
Information or data shown or used in this material was received from sources believed to be reliable, but accuracy is not guaranteed.
Stocks represent partial ownership of a corporation. If the corporation does well, its value increases, and investors share in the appreciation. However, if it goes bankrupt, or performs poorly, investors can lose their entire initial investment (i.e., the stock price can go to zero).
Model Risk: Any imperfections, limitations, or inaccuracies in a model could affect the viability of that model portfolio. By necessity, model portfolios make simplifying assumptions that may limit the model’s effectiveness. Models that appear to explain prior market data can fail to predict future market events. Further, the data used in models may be inaccurate (because, for example, the data is supplied by third parties) and/or may not include the most current information available. As discussed above, the POP model is not produced by RiverFront. If STS or SAM can or no longer wish to deliver the model to RiverFront, RiverFront will not be able to make the RSPO portfolio available to clients. With respect to the RSPO model, companies are responsible for reporting their lobbying expenses and, if this data is reported inaccurately it could cause a company to be included in, or excluded from, the portfolio when it would not otherwise be included or excluded. Additionally, errors in reporting could cause the model to not perform as expected.
Industry Risk: Investments could be concentrated within one industry or group of industries. Any factors detrimental to the performance of such industries will disproportionately impact investment returns. Investments focused in a particular industry are subject to greater risk and are more impacted by market volatility than less concentrated investments.
Factor Risk: Factors considered in the model, including the dollar amount spent on lobbying activities, fundamental factors and market factors are not necessarily predictive of company stock performance.
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SOURCE RiverFront Investment Group, LLC