Within CLS’s AdvisorOne Protection Strategy, a portion of the investor’s portfolio is invested in CLS’s Shelter Fund, which seeks capital appreciation through diversified stock ETFs when the market is flat or performing well, yet moves to conservative assets if the market severely declines. The remainder of the portfolio is placed into a mix of other CLS funds appropriate for the investor’s Risk Budget.
This strategy:
- Is intended for investors who are particularly sensitive to market declines due to a shortened investing time horizon or an extreme fear of decreasing account value.
- Seeks long-term growth through an allocation to a mix of diversified equity and bond ETFs and mutual funds appropriate for the investor’s Risk Budget.
- Moves portions of the portfolio to low-volatility stock ETFs and/or U.S. Treasury bill ETFs in an attempt to protect principal in the event of a severe market decline.
- Is designed to protect the portfolio from catastrophic losses – those that may permanently derail the investor’s long-term financial objectives or significantly alter his or her lifestyle. This is not simply a conservative investing strategy or designed to protect against normal market volatility.
- Presents a tradeoff for the security this strategy may provide, as the strategy favors security over some market gains.
Explore strategy details
A portion of the investor’s portfolio is invested in a mix of CLS funds appropriate for his or her Risk Budget. The remainder of the portfolio is invested in the CLS Shelter Fund. AdvisorOne Protection Strategy options are shown below. If available through the investor’s custodian, there may be an option to customize the strategy combination. Therefore, the actual percentages in the CLS Shelter Fund or other CLS Funds may vary.
