CHICAGO, July 10, 2001 (PRIMEZONE) -- Ibbotson Associates, an industry leader in the field of asset allocation tools and knowledge, today announced that it was named as consultant for Nike Securities L.P. in the creation of three new diversified equity unit investment trusts (UITs). These three trusts, named the Ibbotson Equity Style Portfolios, combine the asset allocation strategies of Ibbotson with the securities expertise of Nike Securities. Now, instead of investing in multiple investment products to achieve an optimal portfolio allocation, investors can fulfill the equity portion of their investment policies in one Ibbotson-designed portfolio.
On June 26, Nike Securities began offering these three Ibbotson UITs:
1. The Ibbotson(r) Cornerstone Equity Style Portfolio will invest in U.S. securities
2. The Ibbotson(r) Centerpiece Equity Style Portfolio will combine U.S. and international equities.
3. The Ibbotson(r) Pinnacle Equity Style Portfolio will blend U.S. and international equities and real estate investment trusts (REITs).
"Ibbotson has more than 25 years of asset allocation experience building model portfolios and risk assessment questionnaires, which makes Ibbotson the perfect partner," said Peter Shannon III, CFA, Vice President of Nike Securities. "We strongly believe in taking a disciplined approach to investing. With each Ibbotson Equity Style Portfolio, investors receive a known portfolio without manager-driven style drift. The equity portion of the investor's asset allocation is professionally diversified to reduce risk."
UITs are fixed portfolios of stocks that are supervised daily by Nike Securities. Portfolio risk is minimized because investors hold a basket of well-chosen stocks in different asset classes. And, since the trusts have a limited cash position, more of the investor's money is at work in the market. Additionally, UITs tend to be less expensive than other packaged products.
"The combination of Ibbotson and Nike Securities should be enticing to many investors. Ibbotson is well known for managing the risk-reward tradeoff at the asset class level and Nike Securities has a solid track record of security selection," said Mark Kowalczyk, managing director of sales and marketing for Ibbotson Associates. "We are excited to work with an innovative company like Nike Securities that understands today's investors and creates products to meet their demands."
About Ibbotson Associates
Ibbotson Associates, founded by Professor Roger Ibbotson in 1977, is a leading authority on asset allocation, providing products and services to help investment professionals make the best asset allocation decisions for their clients.
The company's business lines include consulting and research; investment forecasting, planning and analysis software; educational services ranging from on-site workshops to computer-based training; and a widely used line of presentation materials designed to educate clients on asset allocation concepts and investment principles. With offices in Chicago and New York, Ibbotson Associates fills a growing need in the finance and investment industry for an independent, single-source provider of investment knowledge, practical application expertise, leading-edge technology, educational services and sales presentation tools. Ibbotson markets its integrated product line of investment analytical tools and services to institutional money managers, plan sponsors and consultants for quantitative analysis, high-level decision-making, and presentations. The company's clients also include financial planners, brokers, mutual fund firms, private bankers and small money managers.
Ibbotson Associates is located at 225 North Michigan Ave, Suite 700, Chicago, Illinois 60601-7676. Phone: (312) 616-1620; Fax: (312) 616-0404; www.ibbotson.com.
About Nike Securities L.P.
Since its inception in 1991, Nike Securities L.P. has focused on its mission to be the most innovative packaged-product solutions provider in the financial services industry. Nike Securities sponsors the First Trust(r) line of unit investment trusts, which was created in 1974. Since 1974, approximately 2,500 First Trust(r) products have been deposited, providing customers all over the world with strategically diverse investment opportunities. First Trust(r) Portfolios are available in many asset classes for packaged products that include 401(K), Variable Annuity, and Fee Based Accounts.
Nike Securities L.P. is located at 1001 Warrenville Road, Suite 300, Lisle, Illinois 60532; Phone: (630) 241-4141; www.nikesec.com.
Request a prospectus for more complete information, including sales charges, expenses, and a discussion of the risks inherent in equity investments. Read it carefully before you invest or send money.
Additional Considerations:
An investment in these unmanaged trusts should be made with an understanding of the risks involved with owning common stocks, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market.
An investment in a portfolio containing small-cap companies is subject to additional risks, as the share prices of small-cap companies are often more volatile than those of larger companies due to several factors, including limited trading volumes, products, or financial resources, management inexperience and less publicly available information.
An investment in a portfolio containing equity securities of foreign issuers is subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers.
An investment in a portfolio containing REIT securities is subject to additional risks, as companies involved in the real estate industry are subject to changes in the real estate market, vacancy rates and competition, volatile interest rates and economic recession.
Each portfolio's objective is to provide investors the potential for above-average capital appreciation; however, there is no assurance the objective will be met. The portfolios terminate in approximately three years.