Enlightened Investing is a stable approach to portfolio management, emphasizing quantitative principles and proven investment practices, while accentuating asset allocation as the most important determinant of long term success in investment planning.
Island Light's Global ETF Balanced Portfolio is optimally diversified across major asset classes of fixed income, global equity and alternative assets. The Island Light Capital Balanced ETF Portfolio is designed for long term investors seeking current income and some potential for long term capital growth. The Portfolio is targeted to a benchmark allocation of 60% global equities and 40% fixed income investments.
Our portfolios capitalize on the fact that markets are relatively macro-inefficient, allowing value to be added at the asset class level using world-class investment technology, superior investment judgment and a disciplined investment process.
We select passive index Exchange Traded Funds (ETFs) that span the major asset classes suitable for US investors. We offer a mix of global equities (Large Cap US Value and Growth, US Small Cap, International Developed, Emerging Markets), fixed income (US Treasury, US Corporate, High Yield) and alternative asset classes (Gold, TIPS).
We use ETFs that follow well established benchmarks, selected based upon their seasoning, liquidity, low expense ratio, low tracking error and other qualitative factors. We develop capital market estimates using modern statistical techniques that combine our economic and investment views with observations of past market behavior. We then apply the scientifically-proven technique of resampled efficiency to construct a set of efficient portfolios that incorporate our understanding of market structure with the new capital market estimates. This patented approach mitigates the risks of uncertainty in information and outcomes, leading to greater diversification and stability of process.
Enlightened Investing is a stable approach to portfolio management, emphasizing quantitative principles and proven investment practices. This disciplined approach guides overall allocation decision. The Portfolio is targeted to a benchmark allocation of 60% global equities and 40% fixed income investments. Systematic rebalancing incorporates recent market activity, economic factors and expected trading costs to benefit our focus of maximal returns at any given level of risk.
Enlightened Investing is a stable approach to portfolio management, emphasizing quantitative principles and proven investment practices. This disciplined approach guides buy and sell decisions. From time to time, we will replace an ETF security with one which, we believe, may provide a more attractive security position. While we do not explicitly consider the effect of taxes in our buy and sell decisions, as a matter of investment philosophy, we try to keep turnover at or below 30% annually.