Over the next few weeks, you’ll notice a repositioning within Aptus’ Preserve and Conservative portfolios. You’ll also see changes in our high-net-worth stock + ETF portfolios.
Our asset allocation structure is designed to do better in the tails: both the right (good) and left (bad) tails. Simply own more stocks, less bonds, while keeping risk in check, and let the structure work for you – that’s our North Star.
Right Tail Driven by Allocation Effects
A larger allocation to stocks helps capture more upside when markets are friendly
Left Tail Driven by Manager Selection
Ownership of hedges creates separation when markets aren’t as friendly.
The purpose of this rebalance is narrow: lock in some of the yield given the lift in rates, while keeping the stock overweight and the structure that got Preserve and Conservative clients here. The HNW portfolios have this change and an adjustment to the stock sleeve weighting as reflected in the rebalance rationale.
Let the team know if you would like to walk through how these changes impact specific accounts. Thank you for your trust in stewarding your clients’ hard-earned capital.
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