Business Services Industry
Curian Capital Introduces New Defensive Implementation Strategy
Business Wire, Feb 4, 2008
Enhancements to Fixed Income and International Asset Class Options Also Added to Curian Platform
DENVER -- Curian Capital, LLC (www.Curian.com), a registered investment advisor that provides a fee-based separately managed account (SMA) platform to financial professionals, today announced that it has expanded its Custom Style Portfolios to include a new implementation strategy that attempts to offer a higher level of customization by addressing investors' concerns about market uncertainty and volatility. The new Defensive Implementation Strategy will include investment managers and strategies that seek to add long-term value with a distinct focus on managing downside market risk.
Additionally, Curian has made enhancements to provide greater diversification benefits and return potential in its fixed income and international portfolios. Curian's fixed income asset class now includes exposure to both high-yield and international bonds through investing in exchange-traded funds (ETFs). The international equity portfolios have been expanded to include a variety of new ETFs, including sector and regional funds. Curian's expanded ETF structure provides a broad range of investment options to help advisors meet the distinct asset allocation needs of their clients and demonstrates the company's ongoing commitment to active management strategies.
"Curian's value proposition is built around the concept of delivering customized account portfolios to investors of all risk profiles, time horizons and investment objectives," said Michael Bell, president and CEO of Curian Capital. "The latest enhancements to the platform are designed to expand our relevance to an even wider set of investors, and they represent important developments in the evolution of our asset management process. Our dedicated asset management group performs rigorous due diligence in its manager selection process and conducts ongoing research to ensure that Curian's portfolios are diversified across a broad range of asset classes and investment vehicles."
Curian's Defensive Implementation Strategy is designed for clients who may find it difficult to remain committed to their long-term plan during times of high market volatility and short-term market declines. The strategy may be appropriate for individuals who are emotional investors, self-described "value" investors or clients who avoid commitment because the market is perceived as being highly or overly valued. It may also be appropriate for those nearing or in retirement, but whose situation suggests a need for some stock exposure to meet long-term income objectives.
The defensive strategy focuses on managers and investment vehicles that typically invest in securities with less price volatility during an extended market downturn, such as high quality blue chip companies, stocks that pay a dividend, stocks whose price compared to the company's earnings are cheaper than the market, and stocks of companies with consistent earnings growth. To formulate the strategy, Curian added three new institutional money managers - Lazard Asset Management LLC, Atlanta Capital Management Company, LLC and Smith Asset Management Group, LP - in addition to PPM America, Inc., an advisory affiliate of Curian.
"Our goal is to help investors navigate market volatility by offering a portfolio strategy that concentrates on a group of managers and investment vehicles that acknowledge the defensive temperament and behavior of investors," said Steve Young, chief investment officer for Curian. "The defensive strategy is designed to improve the likelihood that clients who are particularly risk averse will adhere to their strategic asset allocation plans over the long term. It also offers upside potential during a market upturn, which provides another incentive for investors to keep their investment plans on course."
For more information about Curian's Defensive Implementation Strategy or fixed income and international asset class enhancements, registered investment advisors, broker-dealers and financial institutions can visit www.curian.com or contact the Curian Sales Desk at 877-847-4192.
About Curian Capital
Curian Capital, LLC (www.Curian.com) is a registered investment advisor providing innovative fee-based separately managed accounts to financial professionals through a state-of-the-art technology platform. The company has $3.3 billion in assets under management as of 6/30/07, and ranks among the top 10 third party managed account vendors in the industry by AUM (source: Cerulli Associates). Curian also received the 2006 Boomer Market Advisor magazine Readers' Choice Award for the SMA platform that best fits clients' needs.
Curian Capital is an indirect subsidiary of Prudential plc (NYSE: PUK), a company incorporated and with its principal place of business in the United Kingdom. Prudential plc and its affiliated companies constitute one of the world's leading financial service groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for more than 150 years and had more than $500 billion in assets under management as of June 30, 2007. Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
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