"An Intelligent Way to Own Core/Satellite"
          Enhance.  Defend.  Repeat.


Volatility Needs Guardrails™

Since 2008, the Managed Volatility category has been one of the fastest growing segments of the investment management industry with over $450 billion in assets under management, and growing faster than 40% per year internally.1  

IronGate partnered with industry leader Newfound Research, to build a Managed Volatility strategy that would complement most other existing equity and fixed income Managed Volatility strategies, by incorporating Newfound's systematic risk controls around the satellite assets that have historically enhanced core portfolio returns. 

Why ETF Managed Portfolios Are Rapidly Growing In Popularity
Morningstar  - Scott Burns


Investment Philosophy

  • When present, diversification offers the cheapest form of risk management within a portfolio
  • Diversification can disappear when needed the most
  • Large drawdowns can derail good financial plans
  • Rules-based strategies offer the potential for superior long-term risk-adjusted returns when implemented with quantitative integrity

Investment Objective

"An Intelligent Way to Own Core/Satellite"
Enhance.  Defend.  Repeat.

  • Enhance.  Enhance diversification and potential returns by investing in satellite assets: MLPs, REITs, emerging market equities and bonds, Smart Beta equities, inflation bonds, high yield bonds, commodities, and safety positions
  • Defend.  Defend against losses (drawdowns) - since diversification can disappear when it's needed the most, add tactical as a second line of defense to defend against drawdowns
  • Repeat.  Repeatable process - rules based, unemotional, and adaptive - Powered by Newfound Research, a leader in the Managed Volatility category

Investor Focused

  • Participate in up markets, Protect in down markets
  • View risk from the investor's perspective -   maximum loss
  • K.I.S.S. - Keep Investment altS Simple
  • Increase confidence - Added risk controls can help investors focus on their financial goals
  • Prepare for Rising Rates - Near zero interest rates, causes investors to rethink the role of bonds in the portfolio. Expanding the investable universe to include alternative sources of income and exposures that can do well in a rising rate environment should be considered

Investment Highlights

  • Simple - No shorting, no leverage, no derivatives creates a single solution around the satellite assets
  • Play offense and defense - Newfound's rules-based model is momentum based.  Eugene Fama describes momentum as "the premier anomaly
  • Go to cash ability - reduces the need for perpetual hedging which can brag performance
  • Powered by Newfound Research - Newfound's models powers tens of billions of dollars in the Managed Volatility category
  • IronGate partnered with Newfound to build a risk managed, custom index around the satellite assets that have historically enhanced portfolio returns
  • IronGate exclusively replicates the RMCD Index in separately managed accounts for the lower cost and tax efficiency

Investment Strategy

The IronGate Risk Managed Core Diversifier strategy, tracks the IronGate Risk Managed Core Diversifier Index.  The strategy invests within an universe of 22 liquid ETFs, spanning six asset classes: alternative equities, alternative fixed income, commodities, non-U.S. equities, smart beta equities, and traditional fixed income (safety positions).  The strategy is benchmarked to a 50/50 non-core equity (emerging markets, real estate, and commodities) / bond portfolio.  The equity allocation cannot exceed 75% and the commodity allocation cannot exceed 20%.  The strategy can be 100% allocated to short term U.S. Treasuries in lieu of cash.  The index is evaluated for rebalancing on a weekly basis.