Model Construction

Core Philosophy

Brightlight's models are build around our core investment principles:

  • We align portfolios with purpose.

  • We tailor strategies to achieve portfolio alignment.

  • Objectives drive portfolio construction.

  • Diversification is important, and requires courage.

  • Markets are not perfectly efficient.

  • We are disciplined in research, and act with conviction.

  • Robust governance should empower timely decisions.

Portfolio Approach

Our approach to improving values alignment of portfolios while seeking investment excellence uses the following building blocks:

  • Core Research - we maintain research on the state of faith-based investing in public markets so that we can understand trends and identify strengths and weaknesses.

  • Asset Allocation - the asset allocation decision, and particularly the level of exposure to growth assets such as equities, is the primary driver of investment performance.  We offer models with a range of growth exposures to enable advisors and their clients to tailor their investment strategy to their risk preferences.

  • Values Integration - for each asset class within the asset allocation, we look for ways to express values in accordance with client preferences.

  • Manager Selection - products are selected for inclusion in the portfolio based on our forward-looking views on the quality of their strategy measured across a range of qualitative and quantitative factors.

  • Portfolio Construction - approved products are built into portfolios based on principles of diversification and our overall views on the market.

Our Research Focus Areas

  • Philosophy - the core investment strategy that represents the product's value proposition.

  • Purpose - the way in which faith-based and responsible investment are built into the product's core value proposition , and how impact is measured.

  • People - the collective experience and expertise of the team, how they are governed and how they make decisions.

  • Process - operational and risk management processes.

  • Positioning - current tactical positioning of the portfolio (or, where relevant, the manager's other products )

  • Performance - track record, expected performance, likely key risks.

  • Pricing - reasonableness of the fees & costs structure.

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