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New Enhanced Index Products launched by OakBrook Investments, LLC
Lisle, IL, November 9, 2000 - OakBrook Investments, LLC is expanding its lineup of enhanced index products. Joining the successful OakBrook Enhanced Index are three new products: OakBrook Enhanced Large Cap Value, OakBrook Enhanced Large Cap Growth, and OakBrook Enhanced Top 1000. All three products rely on the auction theory based stock selection methodology utilized in OakBrooks Enhanced Index product to augment S&P 500 Index returns. This methodology is then combined with OakBrooks three level risk control system to limit tracking error to approximately 1%," said Dr. Neil Wright, President and Chief Investment Officer. Dr. Wright and his partners at OakBrook have managed enhanced index portfolios benchmarked to the S&P 500 Index for more than 5 years.
The OakBrook Enhanced Large Cap Value is benchmarked to the S&P/BARRA Value Index, OakBrook Enhanced Large Cap Growth is benchmarked to the S&P/BARRA Growth Index, and the OakBrook Enhanced Top 1000 is benchmarked to an index of the 1000 largest US companies constructed by OakBrook. All seek to achieve a gross excess return of 1% to 2% with an annualized tracking error of approximately 1%. OakBrook began managing a $6.3 million Enhanced Large Cap Value account on September 29.
Initial results have been exceptional, with the account well on its way toward achieving OakBrooks goal of out performing the S&P/BARRA Value Index by 1% to 2% over a full year," said Janna Sampson, Director of Portfolio Management. OakBrook plans to market these products to national and regional consultants as well as directly to plan sponsors.
Enhanced index strategies bring together the best aspects of active and passive management, offering the possibility of out performing a benchmark while at the same time providing tight tracking. Enhanced index strategies often employ highly structured, risk controlled approaches designed to prevent the substantial under performance that can occur with more aggressive active approaches. A modest level of out performance gives them an edge over purely passive strategies that seek only to replicate benchmark performance and risk profiles.
OakBrook Investments, LLC is a registered investment advisor specializing in managing large-cap institutional equities and mutual funds. OakBrook sub-advises two mutual funds, the AmSouth Select Equity Fund (Ticker: ASECX) and the AmSouth Enhanced Market Fund (Ticker: AMEMX). The Enhanced Market Fund utilizes OakBrooks Enhanced Index Strategy and is benchmarked to the S&P 500 Index.
The S&P 500 Index is a registered trademark of the McGraw-Hill Companies, Inc. The S&P/BARRA Indices are registered trademarks of the McGraw-Hill Companies, Inc. and BARRA RogersCasey. The S&P/BARRA Indices are unmanaged portfolios derived from the S&P 500 Index, which is itself an unmanaged portfolio of 500 widely held stocks. OakBrook Investments is not affiliated in any way with either McGraw-Hill Companies, Inc. or BARRA RogersCasey.
This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Described products may not be suitable or available for all types of clients.
For additional information on OakBrooks products, please contact Michael Lorenzen, Director of Marketing, at 630-271-0100 or visit OakBrooks web site at www.oakbrookinvest.com.
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