Aggressive Indexed Risk Control™
An innovative strategy for investors that want to excel in growth without giving up downside protection.
Baton_Green
One may be willing to accept higher risk in their portfolio but that doesn't take away the significance of losing big when market downturns happen. Build created a new strategy that allows investors to opt in for high growth while seeking to reduce loss during those major down markets. Our approach allows us to achieve this smoother ride without taking on significant equity positions – which can add unnecessary risks to a portfolio – our strategy reduces equity exposure to less than 40%. We utilize long-only call options to magnify the upside of equity markets and to hedge against volatility.
Aggressive Indexed Risk Control Performance

Year to Date 

7.95%

1 Month

1.29%

3 Month

5.36%

1 Year

n/a

$$$

Components of Aggressive Indexed Risk Control
A Core of Fixed Income That Seeks To Preserve Capital

The fixed income core accounts for the majority of assets in the portfolio. We focus on quality to mitigate credit risk and duration to mitigate interest rate risk. This strategy strives to maintain a level of at least 60% fixed income and cash.

Average Quality: A
Average Duration: 1.3 years
*As of 6/30/21

An Overlay of Call Options That Seek Capital Appreciation

By investing long in call options, the strategy limits potential losses in the options overlay to a known, fixed amount, while providing the possibility for unlimited upside potential. Additionally, the strategy invests in call options of the VIX Index to hedge against volatility.

Equity Exposure: S&P 500
Volatility Hedge: VIX Index

 

A Quantitative Framework Powered by Data Science

Build’s proprietary quantitative construct provides efficiencies to limit downside risk, capture growth, and deliver a repeatable and smoother experience for the investor.

Strategy Composition as of 6/30/21
5

Fund Allocation

• Fixed Income: 71.83%
• Derivatives: 27.09%
• Cash: 1.08%

5

Sector Weight

• Corporate: 49.90%
• Options: 27.09%
• US Government: 13.64%
• Asset-Backed Securities: 3.74%
• Mortgage: 3.45%
• Non-US Government: 1.10%
• Cash: 1.08%

5

Top Five Holdings

• iShares Floating Rate Bond ETF (FLOT): 11.26%
• US Treasury 1.625 12/15/2022: 10.39%
• SPY US 03/17/2023 C355: 3.80%
• SPDR Portfolio Mortgage Backed Bond ETF (SPMB): 3.45%
• SPY US 12/15/2023 C380: 3.39%

Availability

5

Collective Investment Trust

Available as a CIT for ERISA accounts 

 

5

Reg D Private Trust

Available to Accredited Investors

5

Separately Managed Account

For Advisors looking for a more customized investment strategy

Indexed Risk Control Fact Sheet

Contact Us

Build Asset Management, LLC (a/k/a Build and/or Get Building) is a registered investment adviser in the States of Missouri, South Dakota, and Washington. The Adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.

Build does not guarantee any minimum level of investment performance or the success of any index portfolio, index, mutual fund or investment strategy. Past performance does not guarantee future results. There is a potential for loss in any investment, including loss of principal invested. All investments involve risk, and different types of investments involve varying degrees of risk. Investment recommendations will not always be profitable. No representation is being made that any client account will or is likely to achieve profit or losses similar to those shown in hypothetical backtested performance. Impacts of federal and state taxes and trading costs are not included in the results of index portfolio or index returns. Hypothetical backtested performance information shown in text, charts, tables and graphs is provided for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any types of securities. Terms of Use Policy.