Investment Process

Step 2

Estimate Risk and Return

We use state-of-the-art statistical techniques to improve the risk and return estimates of investable asset classes. 

We seek to enhance the forecast value of historically estimated information using economic theory and up-to-date market information. Our estimates are sensitive to current market conditions without making directional forecasts. 

Research and Analysis

Our Investment and Research Committees use advanced statistical methods to analyze current information, such as regulatory, economic, financial, and other factors affecting global capital markets.

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Step 3

Construct Portfolio 

All our portfolios utilize Michaud Optimization^TM, which builds a customized mix of ETFs to meet each clients' risk tolerance and investment objectives. 

New Frontier portfolios are more risk-controlled, closely aligned, and intelligently diversified to client investment objectives than traditionally managed portfolios.

About Michaud Optimization^TM

New Frontier is globally recognized for inventing a unique, effective form of portfolio optimization.

Michaud Optimization^TM analyzes thousands of investment scenarios to produce more reliable long-term outcomes. It uniquely addresses financial market uncertainty to create market-adaptive, risk-managed portfolios tailored to investors’ goals. 

Michaud Optimization^TM advantages:

• Enhances portfolio stability and diversification
• Improves out-of-sample performance compared to traditional methods
• Produces more intuitive and investable portfolios
• Reduces sensitivity to estimation errors in input parameters
• Allows for calibration of assumed uncertainty levels
• Provides a more balanced asset allocation
• Addresses limitations of traditional optimization
• Potentially improves overall investment value
• Creates portfolios better suited for real-world market conditions
• Offers sophisticated portfolio management accessible to a wider range of investors

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Step 4

Monitor and Rebalance Portfolios 

Our rebalancing technology provides continuous monitoring and Intelligent Rebalancing^TM.

Portfolios are monitored for risk management. Alerts are issued when statistically significant signals indicate it may be time to rebalance. 

Our proprietary rebalancing test prevents ineffective and costly trades while enhancing investment value. 

Intelligent Rebalancing^TM

We use Monte Carlo simulation to compare the current portfolio with an optimal portfolio on the efficient frontier. Our methodology determines whether trading is likely to benefit the investor by transitioning to a more optimal portfolio.

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