New Frontier Advisors launches ETF-based global balanced index

Dec 15th, 2017 | By | Category: Alternatives / Multi-Asset

Boston-based research house New Frontier Advisors has unveiled the New Frontier Global Balanced Index tracking the performance of a global multi-asset risk-managed portfolio. The index is a 60/40 balanced portfolio currently comprising 27 ETFs.

Dr. Richard Michaud, CEO of New Frontier Advisors.

Dr. Richard Michaud, CEO of New Frontier Advisors.

A 60/40 stock-vs.-bond allocation has been the poster child for a moderate-risk retirement portfolio. The formula, once widely used by pension funds, is supposed to produce relatively stable long-term growth, with bonds cushioning the risk of stocks.

“We believe the New Frontier Global Balanced Index represents the next step in the evolution of major financial indices: an optimized multi-asset global risk-managed index for institutional and long-term investors,” explains Dr. Richard Michaud, CEO of New Frontier Advisors. “A 60/40 risk-targeted multi-asset ETF portfolio may often represent a valuable benchmark for large financial intermediaries and many investors in a well-defined investment program.”

The index includes equity, commodity, and fixed income ETFs from iShares, SPDR, and Vanguard that meet New Frontier’s asset class, quality, and diversified risk standards. Index performance is based on the multi-patented Michaud optimizer and investment management technologies.

The Michaud-Esch rebalancing procedure is not based on calendar or asset rules but on the statistical, holistic characteristics of the portfolio at each point in time.

New Frontier launched its first 60/40 multi-asset ETF portfolio in October 2004, shortly after the availability of institutional quality fixed-income ETFs, making New Frontier’s portfolio one of the longest surviving, global ETF portfolios.

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