Author: Matthew Pierce
Covestor model: Island Light Capital Income Portfolio
Disclosure: None
In the natural world, the month of April is a time of renewal, anticipation and new life. Animals and plants awaken, bloom and begin their warm weather plans.
Investors also seek renewal, growth and future prosperity.
But this April, our hopes for continued prosperity from the equity markets were dampened by showers, following a first quarter of torrid growth.
The US equity market, as measured by the Russell 1000, declined 0.6% for the month but is still up 12.3% for the year.
International and emerging equities, as measured by MSCI ACWI ex-US declined 1.6% but remain up 9.5% for the year. Fixed income investments, as measured by the BarCap US Government Credit Index, returned to modestly positive territory, returning 1.4% in April and 1.4% for the year.
The Island Light Global ETF Portfolios are risk-targeted portfolios designed to participate in global economic growth while controlling for risk through optimal diversification of broad asset classes. These assets include global large and small equities, a variety of US fixed income classes, and real assets, such as gold. Our Enlightened Investing ™ process integrates proven investment technology, disciplined investment process, efficient funds and our breadth of experience with sound judgment to create cost effective, risk-controlled and transparent portfolios for the disciplined investor.
The Island Light Income Portfolio Benchmark, a weighted index of global equities (40%) and US fixed income (60%) returned 0.4% for the month and 5.2% for the year. The Island Light Income Portfolio on Covestor returned 0.3% for the month and is up 5.3% for the year.
We expect to make few allocation changes, if any, in the coming month.
