AssetLock^® monitors the investor’s household portfolio value and AssetLock^® Value and communicates key changes to both the investor and financial advisor. This approach helps the investor capture portfolio gains and reduce the potential for losses by keeping the portfolio strategy and investor’s risk tolerance aligned.

How AssetLock^® Works

The hypothetical example below demonstrates using AssetLock^® on an initial portfolio valued at $100,000. The investor’s household Value at Risk (VaR) Analysis and portfolio allocation determined a 10% AssetLock^® Threshold desired in the portfolio making the starting AssetLock^® Value $90,000. If the portfolio experiences growth to a High-Water Value of $146,793, the AssetLock^® Value would then increase to $132,114. If the portfolio then experiences a 10% loss, breaching the AssetLock^® Value of $132,114, the financial advisor and investor will be notified to discuss the possibility of portfolio allocation adjustments.

AssetLock^®® is tracking software used to monitor the performance of a client’s household portfolio, and to predetermine the amount of downside the client is willing to tolerate. It is NOT an actual stop order and will NOT automatically sell the individual securities in the household portfolio. The AssetLock^®® Value is a reference point to encourage a conversation between the advisor/firm and the client to determine if the client’s household portfolio should remain unchanged, reset the AssetLock^®® Threshold by reallocating to a different risk profile, or liquidate part or all of their household portfolio. AssetLock^®® will send the client and their advisor alerts when the household portfolio reaches the client’s determined values, new all-time highs and/or the maximum targeted amount of downside the client is willing to accept. The client and their advisor are notified about changes in the client’s household portfolio. This notification requires that the client is subscribed to receive text message and/or email alerts from AssetLock^®®. Message frequency varies. Standard message and data rates may apply.

Within the initial review, we help investors understand their risk threshold. We do this by deploying a Value at Risk (VaR) Analysis that helps us quantify attitudes toward financial uncertainty, specifically one’s emotional tolerance with respect to the magnitude and speed of potential investment loss.

This Analysis produces a VaR Score that is indexed on a scale from conservative to aggressive. The VaR Score can help us determine if the current portfolio aligns with the investor’s risk tolerance and provides insight as to whether changes to that portfolio are needed.