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San Francisco, August 11, 2009—Forward Management, LLC (Forward) today announced that it has taken a minority ownership position in Broadmark Asset Management (Broadmark). Forward plans to launch a mutual fund, Forward Tactical Growth Fund, which will be sub-advised by the investment team at Broadmark. Forward and Broadmark recently partnered to offer separately managed accounts based on the Broadmark Long Short Strategy LP.
Broadmark is an investment advisor focused on outperforming the equity markets. They believe that portfolio risk and return can be enhanced with a strategy that is not required to be long only and fully invested, and that stock market risk can be addressed. They use a multi-factor process which seeks to identify market opportunities over time. Their investment management approach is research-driven, and employs a qualitative top-down analysis combined with quantitative risk management.
“Broadmark’s strength in up and down markets will give our clients unique access to a management style that seeks to maximize market opportunities and minimize market risk,” said J. Alan Reid, CEO of Forward Management.
Forward Tactical Growth Fund’s investment objective is to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the market itself. In attempting to achieve this objective, the fund will be able to invest in both U.S. and non-U.S. securities, including exchange traded funds (ETFs), equities, fixed income and derivatives. The fund’s strategy includes evaluating individual securities, sectors and entire markets to determine if they are over or undervalued, and accordingly to take both long or short positions as a result of their analysis. The fund will accomplish this by primarily investing through ETFs.
“We are seeing advisors modifying their traditional manager allocation and rebalancing approach. When correlations all went to ‘1,’ that approach did little to manage risk. As a result, many are making an additional allocation to products that manage risk and enhance alpha by having the flexibility to be long, short or neutral on the market,” added Jeff Cusack, President of Forward Management.
The equity investment in Broadmark is the fourth investment or acquisition Forward has completed in the last 11 months. In early June, Forward completed its acquisition of Kensington Funds adding almost $900 million to Forward’s AUM. Forward acquired the assets of Accessor Capital Management LP, investment advisor to the Accessor Funds in 2008, as well as the assets of Berkeley Capital Management, LLC including the investment portfolios and team responsible for managing the Global Dividend, International Dividend, U.S. Dividend and SmallMid Core Portfolios.
“We are excited to partner with Forward to expand access to our investment strategies that have been traditionally limited to hedge funds and now will be made available via mutual funds and separately managed accounts,” said Chris Guptill, CEO and CIO of Broadmark Asset Management.
About Forward Management, LLC
Forward Management, LLC, based in San Francisco, is the investment advisor to the Forward Funds and the Accessor Funds. The firm also markets a range of separately managed accounts. Forward Management offers institutional money managers, financial advisors and individual investors access to industry leading investment managers, investment products and services. The firm specializes in identifying sub-advisors who have long track records of managing assets in specific investment disciplines and asset classes. More information on Forward Management and the Forward Funds can be found at www.forwardmgmt.com.
The underlying investments of the Fund (such as ETFs, and futures and options on securities, securities indexes and shares of ETFs) may involve heightened risks related to liquidity, increased volatility and unfavorable fluctuations in currency values. The underlying international and real estate investments may also be subject to economic or political instability in the U.S. and other countries, credit risk and interest rate fluctuations. Investors will indirectly bear the expenses of the Fund's underlying investments. The Fund’s use of short selling involves additional risks and transaction costs, and creates leverage, which can increase the volatility of the Fund.
You should consider the investment objectives, risks, charges and expenses of the Forward Funds carefully before investing. A prospectus, when available, with this and other information may be obtained by calling (800) 999-6809 or by downloading one from www.forwardfunds.com. It should be read carefully before investing.
A registration statement relating to the Forward Tactical Growth Fund has been filed with the Securities and Exchange Commission. This Fund may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The registration statement does not constitute an offer to buy nor shall there be any sale of this Fund in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.
Correlation refers to the statistical measure of how two securities move in relation to each other and is computed as the correlation coefficient, with ranges from -1 to +1.
Alpha is a coefficient measuring risk-adjusted performance.
Forward Funds are distributed by ALPS Distributors, Inc.
J. Alan Reid, Jr. is a registered representative of ALPS Distributors, Inc.
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