RiverFront Investment Group Partners With Chautauqua To Offer International ADR Portfolio
RICHMOND, Va., Sept. 30, 2020 /PRNewswire/ -- RiverFront Investment Group and Chautauqua Capital Management are pleased to announce the launch of the RiverFront Chautauqua International ADR Portfolio (the "Portfolio"), now available in the RiverFront suite of investment solutions. The RiverFront Chautauqua International ADR Portfolio is a concentrated portfolio comprised of 25-35 international American Depository Receipts (ADRs) representing both the developed markets outside the US and the emerging markets. Utilizing active management, the goal of the portfolio is to outperform the benchmark (MSCI ACWI ex-US) over a normalized investment period of three to five years.
The strategy is normally diversified among at least 10 countries and invests primarily in developed markets. It also typically invests in emerging and less-developed markets. RiverFront has entered into a Model Provider agreement with Chautauqua Capital Management ("Chautauqua") whereby Chautauqua provides an investment model that is used to make the investment selections in the portfolio. The Chautauqua team's investment process is built upon deep fundamental research and low historical turnover.
"We admire the investment process and the principals of Chautauqua, and we are long-term believers in the international equity markets," said RiverFront President & CEO Pete Quinn. "Our focus on serving the needs of financial advisors paired with Chautauqua's utilization of active management, which we feel is critical in international equity investing, made this a natural partnership as we add solutions to deepen our relationships with financial advisors and their clients."
"We have a great deal of respect for RiverFront's commitment to serving advisors and their clients. This dedication is one of the many reasons we are honored to work with RiverFront to make the RiverFront Chautauqua International Equity ADR available to financial advisors," said Chautauqua Partner, David Lubchenco. "Through RiverFront's marketing and communications support, we are able to bring our strategy to individual investors through SMA model account programs, while focusing our time on deploying the investment process."
RiverFront Chautauqua International ADR Portfolio will be available through financial advisors. To learn more, contact RiverFront Investment Group at www.riverfrontig.com or 866-583-0744.
ABOUT RIVERFRONT: RiverFront Investment Group is a global asset manager focused on Process over Prediction — a dynamic investment approach driven by a systematic, repeatable methodology. The firm provides flexible, risk-managed solutions for a range of investment objectives and risk tolerances. RiverFront is affiliated with Robert W. Baird & Co. Incorporated ("Baird"), member FINRA/SIPC, from its minority ownership interest in RiverFront. 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, a registered broker/dealer and investment adviser. RiverFront and Chautauqua are affiliated via their common ownership under BFC.
ABOUT CHAUTAUQUA CAPITAL MANAGEMENT: Chautauqua Capital Management offers insightful, focused International Growth and Global Growth Equity investment strategies and mutual funds, managed using a conviction-weighted approach and risk-conscious philosophy to help investors achieve their financial goals. Chautauqua Capital Management is a division of Baird, a global financial services firm that has ranked among FORTUNE's 100 Best Companies to Work For® since 2004. For more information, please visit www.chautauquacapital.com.
Important Disclosure Information
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.
RiverFront has entered into a Model Provider agreement with Chautauqua Capital Management ("CCM"), a division of Robert W. Baird & Co., Inc. ("Baird") whereby CCM provides an investment model that is used to make the investment selections for the RiverFront Chautauqua International ADR ("RCIADR") portfolio. Baird Financial Corporation ("BFC") is the parent company of Baird, a registered broker/dealer and investment adviser. CCM and Baird are affiliates of RiverFront via their common ownership under BFC. CCM and Baird are operationally independent from RiverFront.
Third Party Model Risk: RCIADR model is not produced by RiverFront. If CCM can no longer deliver the RCIADR model to RiverFront, there is a risk that RiverFront would not be able to make the RCIADR portfolio available to clients.
American Depository Receipts ("ADRs") are typically issued by a US bank or trust company and represent ownership of underlying foreign securities. In addition to the risks presented in any investment – changes in value, changes in demand – there are several risks unique to ADRs that must be considered. For instance, while they will react to normal market fluctuations like regular stocks, ADRs are still vulnerable to currency risks. If the value of the company's home currency falls too much relative to the US dollar, the effect will trickle down to the ADR eventually. The same can be said for changes in the home country's government.
Investing in foreign companies poses additional risks since political and economic events unique to a country or region may affect those markets and their issuers. In addition to such general international risks, the portfolio may also be exposed to currency fluctuation risks and emerging markets risks as described further below.
Changes in the value of foreign currencies compared to the U.S. dollar may affect (positively or negatively) the value of the portfolio's investments. Such currency movements may occur separately from, and/or in response to, events that do not otherwise affect the value of the security in the issuer's home country. Also, the value of the portfolio may be influenced by currency exchange control regulations. The currencies of emerging market countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the portfolio.
Foreign investments, especially investments in emerging markets, can be riskier and more volatile than investments in the U.S. and are considered speculative and subject to heightened risks in addition to the general risks of investing in non-U.S. securities. Also, inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries.
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). Bonds represent a loan made by an investor to a corporation or government. As such, the investor gets a guaranteed interest rate for a specific period of time and expects to get their original investment back at the end of that time period, along with the interest earned. Investment risk is repayment of the principal (amount invested). In the event of a bankruptcy or other corporate disruption, bonds are senior to stocks. Investors should be aware of these differences prior to investing.
RiverFront Investment Group, LLC ("RiverFront"), is a registered investment adviser with the Securities and Exchange Commission. Registration as an investment adviser does not imply any level of skill or expertise. Any discussion of specific securities is provided for informational purposes only and should not be deemed as investment advice or a recommendation to buy or sell any individual security mentioned. RiverFront is affiliated with Robert W. Baird & Co. Incorporated ("Baird"), member FINRA/SIPC, from its minority ownership interest in RiverFront. 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, a registered broker/dealer and investment adviser.
To review other risks and more information about RiverFront, please visit the website at www.riverfrontig.com and the Form ADV, Part 2A. Copyright ©2020 RiverFront Investment Group. All Rights Reserved. ID 1332946
Media Contact: John Cook | Rally Point Media Strategist | [email protected] | Ph 585-737-7546
SOURCE RiverFront Investment Group, LLC
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