Our Investment Process combines Investment Selection, Global Diversification, Portfolio Construction and Portfolio Rebalancing tp achieve our Client objectives. Island Light attempts to add investment value at every step in the investment process.
We diversify across investment asset classes that cover the major global sources of economic growth. The portfolios have exposure to domestic, international and emerging market equities, bonds and real assets. Diversification is achieved through the use of Exchange Traded Funds (“ETFs”) or mutual funds that track these markets.
Research has shown that the asset allocation decision is the most important determinant of long term success in investment planning. We strongly agree with this research. We believe that markets are relatively macro-inefficient, so that value can be added at the asset class level using superior investment judgment and a disciplined investment process. Asset weightings in investment portfolios are globally diversified and developed to substantially conform to the investment policy objectives.
As markets change over time, so will the weightings in a portfolio. Changes in markets and securities will also provide opportunities to trade to a new portfolio, balancing the costs versus the benefits of trading. When a rebalance is called for, we will implement the changes using best practices for trading securities.