RiverShares™ Moderate Tactical Income / RSMTI

Investment Objective

Seeks to provide total return primarily through investments in exchange traded funds that seek income including equity securities, equity income securities, alternatives, master limited partnerships, real estate investment trusts, fixed income instruments (including high yield) and other income producing assets.

Implementation: Advantage



40% S&P 500 High Dividend Index
60% Bloomberg US Aggregate Bond Index


Portfolio Overview

The RiverShares™ Moderate Tactical Income model attempts to achieve a floating yield target of three month United States Treasury bills’ yield + 400 basis points (“bp” = 1/100 of 1%) (or higher) in normal yield, spread and volatility environments. In abnormal yield, spread and volatility environments, the portfolio may target a yield lower than the three month United States Treasury bills’ yield + 400 basis points. The mix between assets in the portfolio is determined through a fundamental selection process, a tactical overlay and a risk management discipline. The primary objective of the composite is to achieve a yield target and thus the composite’s total return is expected to have high tracking error to its stated performance benchmark.

All investments in securities, including this portfolio, include a risk of loss of the amount invested and any profits that have not been realized. Performance of any investment is not guaranteed. Markets fluctuate substantially over time, and have experienced increased volatility in recent years due to global and economic events. Fixed income securities carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. In a rising interest rate environment, the value of fixed-income securities generally declines. Dividends are not guaranteed and are subject to change or elimination. Some of the ETFs used in this portfolio invest in securities that carry specific risks, for example: REITs, Master Limited Partnerships (MLPs), high yield securities and covered call strategies. Please see the end of this publication for more information on these types of securities and the risks associated with them.


Distribute ~ More Conservative

Goal: Spend
Outcome: Income

RiverSharesModerate Tactical Income is designed to seek total return through a balance of income-oriented equity and fixed income investments. The principal value of the portfolio should be expected to regularly fluctuate due to the presence of higher risk asset classes and more limited liquidity. The portfolio's benchmark is comprised of 40% S&P 500 High Dividend Index and 60% Bloomberg Aggregate Bond Index, and RiverFront will use its discretion to raise and lower weightings based on our strategic and tactical view of stocks and bonds.