Conservative Indexed Risk Control™
An innovative strategy for investors seeking wealth preservation while participating in long term appreciation.
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Now is the time to rethink your risk/reward concepts
Interest rates have been in a downward trend for decades, forcing investors to choose between safety and growth. Increasing an investor’s equity position too near retirement adds unnecessary risks, sequence of return risk being a primary concern. On the other hand, invest too conservatively and one likely faces longevity risk—the risk of outliving their money. Build created Indexed Risk Control to provide a dual mandate solution with real downside protection for evolving market conditions. Rather than increasing equity positions, our strategy reduces equity exposure to less than 10%, while striving to deliver meaningful participation in growing equity markets.
Conservative Indexed Risk Control Performance

Year to Date 

2.42%

1 Month

1.02%

3 Month

3.42%

1 Year

10.05%

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Components of Conservative 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.  The conservative strategy strives to maintain a level of at least 90% fixed income and cash.

Average Quality: A+
Average Duration: 3.5 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.

Equity Exposure: S&P 500

A Quantitative Framework Powered by Data Science

Build’s proprietary algorithm provides efficiencies to limit downside risk and capture growth. Through a daily rebalancing our strategy is works in real-time to manage risk metrics, weight of the portfolio and credit quality and duration. This allows Indexed Risk Control to deliver a repeatable and smoother experience for the investor.

Strategy Composition as of 6/30/21
5

Fund Allocation

• Fixed Income: 93.56%
• Derivatives: 4.95%
• Cash: 1.49%

5

Sector Weight

  • Corporate: 59.60%
  • US Government: 29.34%
  • Asset-Backed Securities: 4.61%
  • Options: 4.95%
  • Cash: 1.49%
5

Top Five Holdings

• U.S. Treasury 0.125 9/15/2023: 8.30%
• U.S. Treasury 0.125 5/31/2022: 7.51%
• U.S. Treasury 0.375 11/30/2025: 4.56%
• U.S. Treasury 1.750 11/15/2029: 4.56%
• SPX US 12/17/2021 C4050: 1.57%

Availability

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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.