Visit FrontierAdvisorTM for more information on our investment process, as well as portfolio performance analytics and digital materials.
Robert Michaud's presentation at a launch event for the Multi-Asset Income portfolios. (MP4 file)
New Frontier’s Multi-Asset Income (MAI) Portfolios are globally diversified ETF portfolios that seek to provide a sustainable and reliable source of income for investors. Launched in 2012, 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.
When building the MAI models, we are able to combine our patented investment process with the many benefits of dividend income:
- Outperformance – Dividend oriented funds have outperformed broader indices over many investment
horizons. Except for the 1990s, U.S. dividend yielding stocks outperformed the broader S&P index in every decade since the 1930s.
- Yield Untied to Risk – 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.
- Lower Volatility – Dividend oriented funds have exhibited lower volatility than broader indices over many time periods.
- Consistent Income – Stocks that produce dividends in one period tend to continue to produce dividends in subsequent periods. The same cannot be said for stocks that produce superior price returns.
- Capital Retention – Since price volatility is generally higher than income volatility, distributions with a larger income component may mitigate the impact of selling at troughs. The result is less impact on the portfolio's principal.
The portfolios are available at three risk levels, and each portfolio contains fifteen to thirty ETFs.