Seeks to outperform traditional bond strategies; Pursues risk mitigation while seeking upside potential; Aims to address challenges of achieving growth in a low-yield bond market environment
Seattle, WA | February 16, 2022 10:00 AM Eastern Standard Time
Build Asset Management, developers of unique bond and risk mitigation investment strategies, today announced the launch of a new ETF: the BUILD Bond Innovation ETF
(ticker: BFIX on the New York Stock Exchange).
BFIX is a new class of bond allocation fund designed to address headwinds facing traditional bond allocation strategies. Low interest rates, heightened inflation, and constraints to real economic growth challenge conservative investors that traditionally sought bond funds for capital preservation and modest growth. BFIX carries an investment objective of capital appreciation and risk mitigation.
“We designed BFIX with the voice of the American retiree and traditional bond investor in mind. These investors often wonder how they can achieve meaningful returns with a defensive mindset,” says John Ruth, co-founder and CEO of Build Asset Management. “We hope BFIX will serve as a timely compliment to a well-diversified portfolio for years to come.”
BFIX plays defense first. The ETF typically has 90% to 95% of its holdings in fixed income assets, with the intent of providing downside risk mitigation over the long-term. The Fund seeks to maintain a moderate duration profile and requires investment grade credit quality in the Fund’s bond holdings. BFIX goes on offense with the remainder of the Fund’s assets in an actively managed options overlay on US large-cap equities, seeking a risk-managed exposure to their price performance. The combination of this advanced options strategy and prudent fixed income profile aims to weather broad market drawdown events while seeking upside potential.
“Bond investors are currently in a risk versus return conundrum, and BFIX seeks to address the low yield problem without taking on more duration risk or decreasing credit quality,” says Matt Dines, co-founder and Chief Investment Officer at Build Asset Management. “Our approach combines active fixed income management, an equity options overlay, and a rules-based trading framework that seeks repeatable outcomes. The strategy seeks to provide meaningful total return potential with preferred risk-adjusted return metrics relative the strategy’s benchmark.”
For more information about the fund, including definitions of terms discussed, please visit: www.BFIX.fund
Build Asset Management, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Build was founded in 2018 with the mission of taking the best ideas in the financial industry, improving upon them, and making solutions that work for everyone. Build seeks to offer a new way to invest, one with real risk management and upside potential to help investors achieve their financial goals.
Investors should carefully consider the investment objectives, risks, charges, and expenses of Exchange Traded Funds (ETFs) before investing. To obtain an ETF’s prospectus containing this and other important information, please call (833) 852-8453, or visit www.BFIX.fund.
Please read the prospectus carefully before you invest.
IMPORTANT RISK INFORMATION: An investment in the fund involves risk, including possible loss of principal.
Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Investing in mortgage- and asset-backed securities involves interest rate, credit, valuation, extension and liquidity risks and the risk that payments on the underlying assets are delayed, prepaid, subordinated or defaulted on.
There is no guarantee that the investment views will produce the desired results or expected returns, which may cause the Fund to fail to meet its investment objective or to underperform its benchmark index or funds with similar investment objectives and strategies.
While the option overlay is intended to improve the Fund’s performance, there is no guarantee that it will do so. Utilizing an option overlay strategy involves the risk that as the buyer of a call option, the Fund risks losing the entire premium invested in the option if the Fund does not exercise the option. Also, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.
BFIX is distributed by Foreside Fund Services, LLC.
Meir Kahtan Public Relations
Build Asset Management