Moderate Indexed Risk Control™
An innovative strategy for investors seeking a balanced objective of appreciation and preservation.
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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 

8.47%

1 Month

1.25%

3 Month

6.00%

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: 2.0 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 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: 82.18%
• Derivatives: 16.66%
• Cash: 1.16%

5

Sector Weight

• Corporate: 52.20%
• US Government: 23.45%
• Options: 16.66%
• Asset-Backed Securities: 3.71%
• Mortgage: 2.29%
• Cash: 1.16%
• Non-US Government: 0.53%

5

Top Five Holdings

• iShares 5-10 yr IG Corp Bond ETF (IGIB): 8.10%
• US Treasury 1.500 11/30/2021: 7.95%
• U.S. Treasury 0.125 10/15/2023: 6.69%
• U.S. Treasury 1.625 12/15/2022: 6.42%
• SPY US 12/17/2021 C318: 3.29%

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 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.