The objective of this model is to generate a high combined dividend and interest income from equity, fixed income and hybrid securities, while maintaining long term capital appreciation. The model will strive to maintain a balance between equity, fixed income and hybrid securities to generate the most optimal risk-adjusted returns. Moreover, the model will include securities that have a global footprint. The model may provide less interest rate sensitivity than traditional fixed income securities due to income being generated from multiple sources.


A Core and Satellite approach has been used to build this model, with the Core including low cost, primarily market capitalization weighted ETFs across four main segments of the market: 1) Global High Income Equities 2) Global Real Estate Investment Trusts/Master Limited Partnerships 3) Business Development Companies/Closed End Funds and 4) High Yield Fixed Income/Preferred Securities. The Satellite allocations include ETFs that track alternative indices, attempting to add alpha over the Core indices. Examples include sector/thematic ETFs, mortgage REITs, MLPs, closed end funds, high yield muni’s, emerging market corporate bonds and short duration high yield bonds, etc.


Global Multi-Asset Income Model Cost Summary

  • The 12-month yield on this Model as of 3/31/2014 was 7.24%
  • The weighted average cost of the Global Multi-Asset Income Model is 1.19%
  • This compares very favorably to the Morningstar Category Average of Global Balanced Mutual Funds of 1.45% (Source: Morningstar Direct)
  • This is a reduction of 18% when compared to active money manager costs!