$70 Million Allocated to Build Asset Management’s Indexed Risk Control Fund

OneDigital Investment Advisors “OneDigital,” a registered investment advisor focused on corporate retirement plans with over $70 billion in assets under advisement, today announced that it has allocated $70 million to Build Asset Management (Build) to be deployed in Build’s flagship Conservative Indexed Risk Control strategy. Indexed Risk Control is a next gen risk mitigation strategy that seeks to provide investors with downside protection while still offering upside potential.

Build will serve as a sub-advisor for OneDigital’s Risk Mitigation sleeve of the firm’s Personalized Portfolios solution. Personalized Portfolios is OneDigital’s advisor managed accounts (AMA) solution that has reengineered portfolio construction. The Risk Mitigation sleeve of this solution seeks to protect retirement portfolios from catastrophic losses, thereby providing individuals with greater assurance of being able to retire at a planned date.

Vince Morris, President of OneDigital Retirement + Wealth, notes “We are excited about this solution because it is an innovative way to deliver value to participants via advisor managed accounts (AMA). Build’s investment and risk profile fits our core risk mitigation sleeve, given our focus on improving retirement for all. We are committed to providing wealth management approach within the retirement plan. We believe that every individual planning for retirement deserves a customized approach, taking into account a myriad of variables for each person. These variables could include what’s outside their retirement fund, expected social security payout, income-generating real estate, whether they’re the primary earner, other investments they may own, potential inheritance, etc., to reach a customized target allocation. This new strategy will potentially help us protect investors from the possibility of a market correction and is just one of the innovative ways we are building out our personalized portfolios offering.”

Taking risk mitigation into account in a post-COVID environment, OneDigital examined Build’s ability to mitigate losses in severely down markets while also participating in market growth potential. Build’s flagship Conservative Indexed Risk Control™ strategy achieved these goals throughout the volatile markets that 2020 presented. One Digital also examined the strategy for sustainability and repeatability over time as part of their due diligence review.

John Ruth, CEO of Build, noted, “We developed our approach with a similar mindset to that of OneDigital’s Risk Mitigation sleeve, one of rethinking portfolio construction to protect on the downside while still participating in market upside opportunities. We believe the conservative side of classically constructed portfolios are ripe for an update. In an era of historically low interest rates, and stretched P/E ratios, it is important to recognize that investors are being forced further out on the risk curve than they would likely otherwise prefer. Build believes our Indexed Risk Controlä methodology is a timely and necessary evolution to portfolio construction. We believe our innovative approach around limiting downside risk, combined with a growth overlay, makes Build a natural match for OneDigital.”

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