iSectors® Endowment Allocation

iSectors Endowment Allocation is an institutional quality asset allocation model designed with the objective of achieving returns in excess of a 60-40 stock-bond benchmark portfolio (as measured by 60% S&P 500 Index + 40% Barclays Aggregate Bond Index) over a complete market cycle, while maintaining a similar or better risk profile. This portfolio embraces the philosophy pursued by the managers of endowment portfolios at institutions such as Yale and Harvard, which have been aggressively allocating to “Alternative Investments” like hedge funds, private equity and real assets, for decades. The strategy of over weighting alternatives has enabled them to out-perform their university endowment fund peer group; they have achieved this superior performance while reducing overall portfolio volatility (risk). While the iSectors Endowment allocation is not designed to mimic a university endowment fund to the fullest extent, a significant portion of the model is dedicated to “Alternative Investments.” While seeking its allocation to alternative investments, the model does not invest in private partnerships which are illiquid and only available to accredited investors, (i.e. investors with a net worth exceeding one million dollars). Rather, only registered, publicly traded securities are held in the portfolio Therefore, the Endowment Allocation offers daily liquidity and does not require an investor to be accredited. These unique advantages are achieved by using alternative investments that are available either through an exchange traded fund, a mutual fund, a registered business development company, or a SEC registered private fund.

%d bloggers like this: