stone pillars

Multi-Asset Income Portfolios

New Frontier’s Multi-Asset Income portfolios are global strategic core ETF model portfolios designed for investors who want both long-term performance and consistent income.  New Frontier creates and maintains the portfolios at three strategic risk levels with their multi-patented, quantitative investment process.  Since the portfolios aim for both market returns and income, they contain dividend-income-oriented ETFs as well as ETFs that offer significant diversification and risk management benefits.  The resulting portfolios provide the opportunity to benefit from long-term price appreciation and enhanced income.

Though past performance does not guarantee future results, dividend oriented funds have displayed many attractive characteristics historically.  Stocks that produce dividends in one period tend to produce dividends in subsequent periods. And while high yield means higher risk in the case of bonds, the same need not be true for stocks. Reliable dividend streams are often a matter of corporate policy and tradition on the part of the companies issuing the stocks. Indeed, funds that invest in these stocks have exhibited lower volatility and outperformed broader indices over many investment horizons, partly due to the value and low-beta tilts associated with a dividend orientation. Dividends are an important component of strategies that seek to provide sustainable income.
By combining the benefits of dividends with New Frontier’s investment process, the Multi-Asset Income portfolios offer:

  • Optimized for income: The patented Michaud optimization process is used to carefully calibrate the funds to limit capital depletion and provide sustainable income over time.
  • Capital retention: Since price volatility is generally higher than income volatility, distributions from a fund with a larger income component may mitigate the impact of selling at troughs.  The result is less impact on the portfolio’s principal.
  • Transparency:  Assets are invested in low risk, transparent ETFs with an investment process that has been described in patent applications and academic articles.
  • Global perspective: In addition to the well-known potential diversification and performance advantages of global strategies, higher dividends are often found in international markets.
  • Inflation-sensitivity: Unlike annuities that promise non-inflation adjusted income, dividend oriented funds address realistic income objectives relative to market and economic conditions.
  • Limited active risk: New Frontier strategies do not engage in market timing; sector, style, or country rotation; or bets on past performance of active investment strategies.
  • Long-term: Market-based capital appreciation and a strategic approach address concerns of meeting long-term investment objectives.

Launch Presentation

Fact Sheet (for Advisors)

Flyer (for Advisors)

 

Availability
AssetMark offers New Frontier's multi-asset income portfolios.
Presentation