“Today’s settlement resolves the SEC’s investigation,” Dagan said in a video on F-Squared’s website. She noted the falsified, pre-2008 performance data has been removed from all of its marketing materials and replaced with its six-plus-years performance record.
“Our financial position remains strong, and the terms of the settlement will allow us to continue investing in our firm and people,” Dagan said.
Along with the AlphaSector Premium Index strategy, F-Squared has two other long-only strategies: the AlphaSector Global Premium Index that combines U.S. equities with both developed and emerging markets; and the AlphaSector Allocator Premium Index that includes U.S. equities, international equities, fixed income and alternative asset classes.
Its Dynamic AlphaSector Index employs leverage and shorting.
F-Squared’s strategies underlie five mutual funds from Virtus Investment Partners, along with SMAs used by financial advisors.
As of September, F-Squared had garnered more than $28 billlion in assets.