Newfound Research, a Boston-based registered investment advisor and quantitative asset manager, has launched a suite of tactical, outcome-oriented mutual funds.
All three funds will invest in either exchange-traded funds or exchange-traded products while implementing varying degrees of risk management in an effort to achieve desired results in any market cycle.
The Newfound Risk Managed Global Sectors Fund seeks long-term capital appreciation with preservation of capital as a secondary objective. The strategy provides access to global equities with the potential to preserve capital by moving to cash to protect against large losses.
The Newfound Multi-Asset Income Fund seeks income with capital appreciation as a secondary objective. The strategy attempts to generate increased income over a full market cycle by emphasising both yield and capital preservation.
The Newfound Total Return Fund seeks income and capital appreciation. The strategy attempt to provide access to the diversification, hedging and income potential of fixed income investing without taking on excessive duration risk.
Corey Hoffstein, chief investment officer, and Justin Sibears, managing director, serve as portfolio managers for the new funds. Each of the funds uses Newfound's proprietary dynamic, volatility-adjusted momentum model.
Hoffstein says: "While we are most well-known for defensive sector rotation strategies, I believe these three mutual funds highlight the breadth and depth in capability of Newfound's tactical models. We have leveraged our significant experience and legacy of success in researching, designing and powering tactical ETF portfolios in the construction of these funds."
Sibears says: "Each strategy was designed to seek its objective through a consistent process and a thoughtful design. The Risk Managed Global Sectors fund most closely aligns with our legacy of powering defensive sector rotation strategies, but can now help investors re-introduce the potential benefits of a globally diversified equity portfolio. The Multi-Asset Income fund seeks to provide investors with a strong risk-adjusted income profile opportunistically accessing higher-yielding, alternative asset classes within a disciplined risk-management framework. Finally, our Total Return fund attempts to offer investors the conservative growth and income profile of fixed-income with reduced interest rate sensitivity."