Important Investor Notification – Changes to WealthBuilder Program

Changes will be made this week to the WealthBuilder investment strategies. The changes are summarized below.  Changes will be implemented on the strategy level.  Actual trades might vary in each account, depending on the account size and cash flows.

  • Tactical Allocation Changes

BOK’s Asset Allocation Committee recommended an increase to developed international equity, funded by a reduction in domestic large cap equity and commodities. The Committee’s view is that developed international markets may offer more opportunities as those markets benefit from accommodative monetary policies, lower oil prices, stronger dollar and lower valuations. The Committee continues to favor equities over fixed income as the Federal Reserve is expected to begin normalizing interest rates later this year. Within fixed income, the decision was made to make a slight reduction from over-weight to conservative alternatives, in favor of high yield bonds as defaults remain low and corporate balance sheets remain strong.

The allocation changes are summarized below and will be made across the different investment objectives, if applicable.

Changes within Fixed Income:  Increase high yield bonds; reduce conservative alternatives

Changes within Equities:  Increase developed international equity; reduce domestic large cap equity; reduce commodities

No changes between the broad asset classes of fixed income and equity

  • Fund Changes

Replace Artisan Mid Cap Value with John Hancock Disciplined Value Mid Cap

Replace Royce Premier with Vanguard Small Cap Index