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ALPHAGLIDER ESG1 GLOBAL
BALANCED STRATEGY (AG-B/esg)
December 31, 2023

 

AG-B/esg DESCRIPTION

The AlphaGlider ESG Global Balanced Strategy (AG-B/esg) is a broadly diversified2 strategy that incorporates environmental, social, and governance (ESG) factors. AG-B/esg utilizes exchange-traded funds (ETFs)3 to achieve exposure across multiple asset classes, industries, and geographic regions. Of the five ESG investment strategies offered by AlphaGlider, AG-B/esg is the median in the range of most conservative to most aggressive. AG-B/esg strives to deliver strong risk-adjusted returns over a full market cycle to investors with moderate tolerances to risk and medium to long investment horizons. AlphaGlider anticipates equities to make up between 30% and 90% of AG-B/esg and fixed income to make up between 10% and 70%.

 


Strategy Manager: Doug Kirkpatrick, CFA
Fund Management Fee:4 11bps (0.11%)
Benchmark:5 60% MSCI ACWI IMI, TR Net6 and 40% Bloomberg Barclays US Aggregate Bond Index7
Number of Funds: 19 (18 trade commission-free)
Fund Suppliers: Vanguard ETFs & Mutual Funds, BlackRock iShares ETFs, Schwab ETFs, Invesco ETFs, and Nuveen ETFs

AG-B/esg VALUATIONS8 & ACTIVE DEVIATIONS FROM BENCHMARK

 
 

Active Deviations from Benchmark:

  • underweight equities

    • significantly underweight domestic equities

    • significantly underweight energy and utility sectors, underweight communications, industrials, and technology sectors

    • significantly overweight foreign developed equities and overweight emerging market equities

    • significantly overweight real estate and overweight financial services sectors

  • neutral fixed income

    • underweight duration (lower sensitivity to changes in interest rates), and fixed-rate government and securitized bonds

    • significantly overweight inflation-protected securities (lower sensitivity to changes in inflation)

  • overweight alternatives (market neutral equities)

  • overweight cash

AG-B/esg ASSET CLASS ALLOCATION

 

AG-B/esg EQUITY ALLOCATION — BY REGION


AG-B/esg EQUITY ALLOCATION — BY SECTOR

AG-B/esg FIXED INCOME ALLOCATION — BY REGION


AG-B/esg FIXED INCOME ALLOCATION — BY SECTOR

 
 

Like What You See?

 

Or maybe you have some questions? Either way, let's talk. You can schedule a time with our CIO, Doug Kirkpatrick, CFA.

 

 

Need Help Picking a Strategy?

 

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Notes & Disclosures

1Environmental, Social and Governance ("ESG") investing involves certain risks because the methodology of an underlying strategy selects and assigns weights to securities of issuers for nonfinancial reasons. As such, an ESG strategy may underperform the broader equiity market or other strategies that do not utilize ESG criteria when selecting investments. The compaines selected as demonstrating ESG characteristics may not be the same companies selected by other providers that use similar ESG screens. In addition, companies selected may not exhibit positive or favorable ESG characteristics. Regulatory changes or interpretations regarding the definitions and/or use of ESG criteria could have a material adverse effect on a strategy's ability to invest in accordance with its investment policies and/or achieve its investment objective.

2Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

3Exchange-traded funds (ETFs) and mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges and expenses before investing. The prospectus, which contains this and other information about the investment company, can be obtained directly from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. Past performance is not indicative of future results.

4The fund management fee is the weighted average annual expense ratio of the funds held by the strategies. It does not reflect advisory fees paid to AlphaGlider which are dependent on total assets invested.

5AlphaGlider strategies may differ significantly from the securities held in their benchmarks which are composites of indexes. Benchmarks are rebalanced monthly, assume reinvestment of dividends and interest and do not reflect the effects of taxes. Benchmarks and their underlying indices are unmanaged and do not incur management fees, costs and expenses. One cannot invest directly in the benchmarks or the indices.

6The Bloomberg Barclays Capital US Aggregate Bond Index is a market capitalization weighted index that is designed to track most investment grade bonds traded in the United States. The index includes Treasury securities, government agency bonds, mortgage-backed bonds, corporate bonds and a small amount of foreign bonds traded in the United States. Municipal bonds and Treasury Inflation-Protected Securities (TIPS) are excluded due to tax treatment issues.

7The MSCI All Country World Index (ACWI) Investable Market Index (IMI) Total Return (TR) Net is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets of all market capitalizations.

8Data provided by Morningstar. Forward dividend yield is the weighted average ratio of dividends a strategy's funds are expected to pay over the coming 12 months to the strategy's funds' share prices. Forward price-to-earnings ratio (P/E) is the weighted average ratio of the strategy's equity fund company share prices to the strategy's equity funds' expected company earnings over the coming 12 months. Forward price-to-book ratio (P/B) is the weighted average ratio of the strategy's equity fund company share prices to the strategy's equity funds' company book values over the coming 12 months. Forward price-to-sales ratio (P/S) is the weighted average ratio of the strategy's equity fund company share prices to the strategy's equity funds' expected company revenue over the coming 12 months. Forward price-to-earnings ratio (P/CF) is the weighted average ratio of the strategy's equity fund company share prices to the strategy's equity funds' expected company cash flow over the coming 12 months. Forward dividend yield is the weighted average ratio of the strategy's equity funds' company dividends expected over the coming 12 months to the strategy's equity funds' share prices. Average effective duration measures the sensitivity of the price of the strategy's fixed income funds with or without embedded options to changes in interest rates, taking into account the likelihood of the underlying bonds being called, put and/or sunk prior to their final maturity dates while incorporating after-tax impacts on the bonds. Average effective duration provides a measure of the strategy's fixed income funds' interest-rate sensitivity. Average yield to maturity is the internal rate of return earned on the strategy's fixed income funds' holdings at the holdings' current market prices, assuming the holdings are held until maturity.

Investing internationally carries additional risks such as differences in financial reporting, currency exchange risk, as well as economic and political risk unique to the specific country. This may result in greater share price volatility. Investments in emerging markets may be more volatile and less liquid than investing in developed markets and may involve exposure to economic structures that are generally less diverse and mature and to political systems which have less stability than those of more developed countries. Shares, when sold, may be worth more or less than their original cost.

Alternative investments, including hedge funds, commodities and managed futures involve a high degree of risk, often engage in leveraging and other speculative investments practices that may increase risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are subject to the same regulatory requirements as mutual funds, often charge higher fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager. The performance of alternative investments including hedge funds and managed futures can be volatile. Often, hedge funds or managed futures account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor’s interest in alternative investments, including hedge funds and managed futures and none is expected to develop. There may be restrictions on transferring interests in any alternative investment. Alternative investment products including hedge funds and managed futures often execute a substantial portion of their trades on non-US exchanges. Investing in foreign markets may entail risks that differ from those associated with investments in the US markets. Additionally, alternative investments including hedge funds and managed futures often entail commodity trading which can involve substantial risk of loss.