Rethinking Income Generation through a Risk-Mitigation Lens

The two themes that dominate conversations between advisors and their retirement-oriented clients are income and safety. In a market ruled by historically low bond yields, income-seeking investors are being driven to products that carry risks which may be difficult to identify or evaluate. Asset managers have responded by developing innovative products that seek to deliver income generation and downside protection. One of those innovative solutions is the Nationwide Risk-Managed Income ETF (ticker: NUSI).

Curt Brockelman is a managing partner and co-founder of Harvest Volatility Management (HVM), where he oversees the firm’s portfolio and operational risk management, with responsibility for the daily management of the firm’s investment and human capital. Prior to founding HVM, from 2003-2008, Mr. Brockelman was chief investment officer and founder of Perch Bay Partners, LLC, a volatility-arbitrage hedge fund that traded index options on global markets. From 1996-2003, Mr. Brockelman was a senior vice president of investments at Smith Barney and co-manager of The Brockelman Group. While at Smith Barney, he was a Directors’ Council member, and grew his group into one of the top revenue producing teams in the firm. Mr. Brockelman holds an A.B. in economics from Duke University.

I recently interviewed Curt.

Tell me more about Harvest Volatility Management and your role there.

Founded in 2008, Harvest Volatility Management is an investment solutions-based asset manager headquartered in New York. Harvest’s partners and employees collectively have decades of experience structuring, advising, and managing derivatives-based strategies. The firm’s strategies, which focus on the delivery of yield enhancement, risk reduction, and absolute returns, are offered in overlays, customized solutions, and investable products, respectively. I am the co-founder of Harvest and a managing partner of the firm.

What is Harvest’s relationship with Nationwide and how did that evolve?

Harvest Volatility Management currently serves as the sub-advisor for NUSI. With the goal of delivering a high current monthly income stream, while potentially mitigating investors’ exposure to the interest rate, duration, and credit risks traditionally associated with fixed income investing, the launch of NUSI in December 2019 further reaffirms Nationwide’s commitment to broadening access to institutional-quality investment solutions as a measure for

delivering on its mission to protect people, businesses, and futures with extraordinary care. Harvest and Nationwide’s partnership has been strong, as demonstrated by the well-coordinated launch and early growth of NUSI.