Global Multi-Asset Income Model
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- Global Multi-Asset Income Model
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 optimal risk-adjusted returns. The model targets 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.
GLOBAL MULTI-ASSET INCOME CORE-SATELLITE IMPLEMENTATION
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.
