---
title: "Boosting Portfolio Income: Newfound Research Risk Managed Income"
description: Investors looking to boost portfolio income in a tactical way should consider money manager Newfound Research's Risk Managed Income strategy.
image: http://www.wrapmanager.com/images/newsletters/Newfound-Research-Traditional-Income-Yields.jpg
---

[![Assembly Wealth](https://www.letsassemble.com/hs-fs/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png?width=300&height=70&name=Assembly-Wealth-Logo-Orange-500px.png "Assembly Wealth")](https://www.letsassemble.com/)

The Money Manager People TM

[800-541-7774](tel:+18005417774)

[![RESEARCH MONEY MANAGERS](https://no-cache.hubspot.com/cta/default/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5)

[![Client Center](https://no-cache.hubspot.com/cta/default/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2)

[Home](https://www.letsassemble.com/)

WrapManager's Wealth Management Blog

When life changes, we can help you thoughtfully respond.

[< Back to read another post](https://www.letsassemble.com/wealth-management-blog)

# Boosting Portfolio Income: Newfound Research Risk Managed Income

Posted by [ WrapManager's Investment Policy Committee](https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee)  
 June 17, 2014

- [Tweet](https://twitter.com/share)

Many investors today are faced with the same problem: *how do you generate income in your portfolio when interest rates are so low*? In the current market, finding asset classes that generate income at significant enough levels can be difficult:

### Traditional Income Generators

(Click chart for larger version)

[![Newfound Research Traditional Income Yields](http://www.wrapmanager.com/hubfs/images/Newfound-Research-Traditional-Income-Yields.jpg "Newfound Research Traditional Income Yields")](http://admin.wrapmanager.com/images/uploads/pdfs/Newfound-Research-Traditional-Income-Yields.pdf)*Source: Newfound Research LLC. Short-Term U.S. Treasuries represented by SHY. Short-Term Corporates represented by CSJ. MBS represented by MBB. Intermediate Term U.S. Treasuries represented by IEF. Total U.S. Bond Market represented by AGG. Long-Term U.S. Treasuries represented by TLT. Intermediate Term Corporates represented by LQD. High Yield Corporates represented by HYG. Yields computed using smoothed trailing 252-day dividends. Starting date for graph is April 2008 because that is first date yields could be computed for all of the ETFs used in the analysis.*

**[Newfound Research LLC, a Boston-based tactical money manager](https://www.letsassemble.com/money-manager-research/newfound-research-llc)** focused on risk management, recognizes this problem and has created a distinct solution: The Newfound Risk Managed Income Strategy. The overarching goal of the investment strategy is simple: increase portfolio income in a prudent manner, by investing in traditional equity, fixed income and alternative-income vehicles in a risk-managed framework. In a fully bearish environment, the portfolio has the ability to move entirely to cash.

### The Newfound Risk Managed Income Philosophy

Newfound is not your traditional fixed income portfolio manager. They understand that there are many assets – traditional and non-traditional income generators – that can provide yield levels significantly above traditional fixed income.

The approach emphasizes both yield and capital protection, and uses a dynamic combination of traditional equity income exposures (e.g., **[dividend stocks](https://www.letsassemble.com/wealth-management-blog/4-dividend-money-manager-strategies-to-consider)**), traditional fixed income exposures (e.g., high yield corporates, 20+ year U.S. Treasuries), and non-traditional income generators (e.g., bank loans, MLPs, U.S. REITs) in an attempt to facilitate increased portfolio income over a full-market cycle. Newfound gains exposure to these asset classes through 16 different ETFs, with a long-only approach – they do not use derivatives, leverage, or shorting.

### Risk Managed Income Strategy's Income Diversifiers

(Click image for larger version)

[![Newfound Research Risk Managed Income Investments](http://www.wrapmanager.com/hubfs/images/Newfound-Research-Risk-Managed-Income-Investment.jpg "Newfound Research Risk Managed Income Investments")](http://admin.wrapmanager.com/images/uploads/pdfs/Newfound-Research-Risk-Managed-Income-Investment.pdf)

*Source: Newfound Research LLC. Yield on a given day is calculated using smoothed 12-month trailing dividends. Yield presented in the table is computed as of 3/31/2014. Correlation is calculated as Pearson correlation of monthly returns between the asset class ETF and the S&P 500 ETF “SPY” from ETF inception to 3/31/2014.*

### How Does the Risk Managed Income Strategy Work?

The strategy is actively managed, meaning that when an asset class starts to exhibit negative momentum characteristics, the portfolio will reduce exposure to it and instead tilt to favor asset classes exhibiting strong risk-adjusted yield.

Final portfolio allocations are adjusted based on an ETFs “yield-to-risk” ratio. ETFs that offer more yield per unit of risk receive relatively higher allocations, and vice versa. ETF exposures are eliminated altogether if they are deemed to be at increased risk of loss.

The portfolio is analyzed and rebalanced (if necessary) on a weekly basis, and a 25% allocation cap is enforced for each asset class. When fewer than four securities are in the portfolio, a position in short-term treasuries is built.

### Investors Looking for Income and Yield Should Consider Newfound Risk Managed Income

If the low interest rate environment has you searching for innovative retirement income strategies, then you should speak with one of our Wealth Managers about Newfound Research LLC. We can provide you with a more detailed analysis of how their strategy works, and how it could fit in as an income-generating piece of your investment portfolio. Call us today at 1-800-541-7774 or **[request more information here](https://www.letsassemble.com/money-manager-research/newfound-research-llc)**.

[![Like What You've Read? Subscribe Here!](https://no-cache.hubspot.com/cta/default/10700/5ce6db8c-6757-43bb-831d-b67f40d96a4c.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/5ce6db8c-6757-43bb-831d-b67f40d96a4c)

---

Source:

Newfound Research LLC

 

Strategy descriptions listed represent a brief outline of the portfolio’s objective. There is no guarantee that any manager or product will be successful in achieving the objective described. The strategy used by the money manager listed is not suitable for all investors. This material does not represent a personalized recommendation and does not reflect individual investor’s risk and return goals nor does it serve as the receipt of, or a substitute for, personalized advice from WrapManager, Inc. or any other investment professional.

[Newfound Research LLC](https://www.letsassemble.com/wealth-management-blog/topic/newfound-research-llc)

### Subscribe to Updates

[Subscribe to RSS Feed](https://www.letsassemble.com/wealth-management-blog/rss.xml)

[![New Call-to-action](https://no-cache.hubspot.com/cta/default/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf)

### Most Recently Published

### Blog Authors

[![Gabriel Burczyk](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381761-jpg/Athors_Avatars/Gabe-avatar.jpg "Gabriel Burczyk")](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)

[**Gabriel Burczyk,**](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)  
[Founder & CEO](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk)

[![Valerie De Vol](http://www.wrapmanager.com/hs-fs/hub/10700/file-2457588837-jpg/Athors_Avatars/Valerie-De-Vol-avatar.jpg "Valerie De Vol")](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol)

[**Valerie De Vol, **IACCP®  
Chief Operating Officer](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol)

[![Seton-avatar.jpg](http://www.wrapmanager.com/hs-fs/hub/10700/file-2344519198-jpg/Athors_Avatars/Seton-avatar.jpg "Seton-avatar.jpg")](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)

[**Seton McAndrews, **CFP®  
](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)[Vice President - Investments](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)

[![Doug Hutchinson](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381751-jpg/Athors_Avatars/Doug-avatar.jpg "Doug Hutchinson")](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)

**[Doug Hutchinson,](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) **[CFA®  
](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)[Director of Research and Trading](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)

![Katie - square.png](https://www.wrapmanager.com/hubfs/Katie%20-%20square.png "Katie - square.png")

[**Katie O'Connor  
**Director of Client Services](https://www.wrapmanager.com/wealth-management-advisors/katie-oconnor)

**Important Disclosure Concerning WrapManager Blogs**

Blogs found at this site have been created or supported by WrapManager. The information provided in a blog post prepared by WrapManager or an associated person of WrapManager is generally limited to financial and economic issues, but may include a discussion of general interest items. The views and opinions expressed on this blog are purely the blog authors, and not necessarily those of WrapManager, Inc. Certain blog posts include information pertaining to WrapManager’s investment advisory services and the products and services of unaffiliated money managers. Such information is provided for information purposes only. Accordingly, information provided in a blog should not be construed by any consumer and/or prospective client as a solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice. Any subsequent, direct communication by WrapManager with a prospective client shall be conducted by a representative of WrapManager. Moreover, no client or prospective client should assume content contained on the website serves as a substitute for personalized advice from WrapManager. Different types of investments involve varying degrees of risk, and there can be no assurance that any investment, portfolio or money manager referred to within the blog will be suitable for your individual situation and risk tolerance or will be profitable. WrapManager recommends that you retain a financial professional to provide you with specific guidance regarding your financial situation before investing. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested.

Although the information included in the WrapManager, Inc. website and blog has been obtained from sources WrapManager believes to be reliable, we do not guarantee its accuracy and information may be subject to change without notice. This website should not be regarded as a complete analysis of the subjects discussed. Information on this site should not be relied upon as a substitute for legal, tax or accounting advice by a professional in your local jurisdiction.

Comments made by third parties are subject to moderation by WrapManager and may not appear on this blog until they have been deemed appropriate for posting. Also, due to the volume of comments received, not all comments will be posted.

WrapManager does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party website linked to WrapManager's web site or incorporated within a blog post. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

 

 

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "WrapManager's Investment Policy Committee",
    "url" : "https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee"
  },
  "datePublished" : "2014-06-17T16:30:00.000Z",
  "headline" : "Boosting Portfolio Income: Newfound Research Risk Managed Income",
  "image" : [ "http://www.wrapmanager.com/images/newsletters/Newfound-Research-Traditional-Income-Yields.jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://www.letsassemble.com/wealth-management-blog/boosting-portfolio-income-newfound-research-risk-managed-income-strategy",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://www.letsassemble.com/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png"
    },
    "name" : "Assembly"
  }
}
```