Through the CLS ETF Managed Income Strategy, CLS builds customized and flexible Risk-Budgeted portfolios of ETFs for investors seeking consistent income from a diversified portfolio of traditional and non-traditional income-producing assets.

CLS Managed Income portfolios:

  • Utilize a multi-asset approach that may be particularly beneficial in today’s low interest rate environment.
  • May help investors meet distribution needs while keeping up with inflation.
  • Provide security, as the availability of monthly income is not dependent upon current market conditions.
  • Are tailored to investor needs (the investor sets the reserve account and cash account amounts).
  • Potentially provide capital appreciation.
  • Actively adjust between asset classes to maximize total return and income generation, and to maintain a consistent level of risk.
Explore Portfolio Segments

ChevronMIThe bulk of the portfolio is placed in traditional and non-traditional income-generating investments with combined risk appropriate for the investor’s comfort level, as defined by the Risk Budget.

Income-generating investments may include, among others:

  • Preferred Stocks
  • High-Dividend Paying Stocks
  • Bonds
  • Real Estate Investment Trusts (REITs)
  • Managed Futures

Diversifying among assets with varying levels of risk and return expectations gives CLS the flexibility to seek out global opportunities and easily adjust the portfolio when market conditions change.

Next, the investor designates an amount to be invested in a low-risk reserve account. This optional “bucket” is designed to generate returns in excess of the average money market fund, but expose the investor to risk less than or equal to low duration investment bonds.

Last, if the investor has a recurring distribution from his or her account, CLS will invest a portion of the portfolio in a low-risk cash account. This account is designed for income for immediate needs and is rebalanced/replenished quarterly with income from the investor’s long-term investments.