New Frontier Advisors on Thursday launched a new index consisting of 27 well-diversified, high-quality, low-cost, tax-efficient ETFs.
The New Frontier Global Balanced Index (NFGBI) sets out to provide institutional asset managers and long-term investors with a unique benchmark to track the performance of an institutional quality global multi-asset risk-managed portfolio.
NFGBI is a 60/40 risk-targeted global balanced portfolio currently including 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.
New Frontier Advisors CEO Dr. Richard Michaud said the index represents the next step in the evolution of major financial indexes: an optimized multi-asset global risk-managed index for institutional and long-term investors.
“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,” Dr. Michaud said.
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.
NFGBI’s historical performance is not based on a theoretical back test but on the actual 13-year-performance of New Frontier’s global ETF balanced risk-managed portfolios. NFGBI serves as a demonstration index for New Frontier’s multi-patented innovations.
The multi-patented Michaud-Esch rebalancing procedure used in managing the index is another unique innovation introduced in the NFGBI.This process is not based on calendar or asset rules but is based on the statistical, holistic characteristics of the portfolio, at each point in time, with the purpose of avoiding trading in noise but recommending to trade when likely effective. NFGBI performance will be available on a daily basis, accessible on both Solactive and Bloomberg [BLOOMBERG: NFGBI INDEX].
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.