Moderate Indexed Risk Control™
An innovative strategy for investors seeking a balanced objective of appreciation and preservation.
Baton_Green
Unlike previous generations, today’s investors nearing retirement are forced to take on more risk in the latter stages of their investment journey. Increasing an investor’s equity position during the preservation phase adds unnecessary risks - market risk, sequence of return risk, longevity risk – possibly impacting a client’s retirement plans. Build created a new solution to solve this dilemma. Rather than increasing equity positions, our strategy reduces equity exposure to less than 20%, while striving to deliver meaningful participation in growing equity markets.
Moderate Indexed Risk Control Performance

Year to Date 

N/A (-1.90% since Inception)

1 Month

-3.92%

3 Month

N/A

1 Year

N/A

$$$

Components of Moderate 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 80% fixed income and cash.

Average Quality: A+
Average Duration: 2.42 years
*As of 9/30/21

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

Strategy Composition as of 9/30/21
5

Strategy Allocation

• Fixed Income: 79.97%
• Derivatives: 13.98%
• Cash: 6.05%

5

Sector Weight

• Corporate: 45.5%
• US Government: 22.45%
• Options: 13.9%
• Securitized: 12.1%
• Cash: 6.05%

5

Top Five Holdings

• Vanguard S/T Corp Bond ETF: 19.25%
• iShares 5-10Y Inv. Grade Corp. ETF: 12.53%
• SPDR Port. Morg. Backed Bond ETF: 12.15%
• Invesco Ultra Short Duration ETF: 11.14%
• US Treasury 0.375 07/15/24: 10.50%

Availability

5

Collective Investment Trust

Available as a CIT for ERISA accounts 

 

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 Asset Management and/or GetBuilding.com) is an investment adviser registered with the U.S. Securities and Exchange Commission.  Registration of an investment adviser does not imply any skill or training.  Build Asset Management does not provide legal or tax advice.  Please consult your legal or tax professionals for specific advice.

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 back-tested performance. Impacts of federal and state taxes and trading costs are not included in the results of index portfolio or index returns. Hypothetical back-tested 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. Unlike  actual performance, hypothetical, back-tested or simulated results are achieved by means of the retroactive application of a back-tested model itself designed with the benefit of hindsight. The back-testing of performance differs from actual performance because the allocation rules may be adjusted at any time, for any reason, and can continue to be changed until desired or better performance results are achieved. Back-testing does not reflect actual trading in any account.

Strategy composition information such as strategy allocation, sector weight, and top five holdings is provided as of a specific date and is subject to change.  The top five holdings are representative of the model portfolio and actual account holdings may vary due to inflows, outflows, liquidity needs or other requirements of the account. It should not be assumed that an investment in the securities identified in the top 5 holdings was or will be profitable.  The holdings identified do not represent all of the securities purchased, sold, or "recommended for our clients." To obtain the contribution calculation methodology and a complete list of every holding’s contribution to the overall portfolio’s performance during the period, please contact info@getbuilding.com.

For more information contact us at (833) 852-8453.  General Disclaimers.

Privacy Policy