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WealthBuilder Update

February 2016

The Strategic Investment Advisors team at BOK Financial has implemented several changes to the WealthBuilder program in February 2016. The changes are summarized below. Please note that the changes will be implemented on the strategy level. Actual trades might vary in each account, depending on the account size and cash flows.

Tactical Asset Allocation Changes

The Asset Allocation Committee at BOK Financial recommended several tactical changes based on the current market environment. The Committee’s view is that the lower oil prices have increased risks in the capital markets through the currency markets, emerging economies and the energy sector. As a result, the Committee has recommended a reduction in risk assets with highest exposure to these areas. Volatility may also create attractive opportunities, and the increased cash position could be deployed to capitalize on those opportunities when they arise.

  • Changes within Equities & Growth Alternatives
    • Removed commodities
    • Reduced infrastructure
    • Reduced emerging markets equity
    • Increased cash
  • Changes within Fixed Income
    • Reduced high yield bonds
    • Increased U.S. investment-grade fixed income

Fund Changes

  • Removed Cavanal Hill World Energy Fund (AIWEX)

The Cavanal Hill World Energy Fund was used in the WealthBuilder Strategies to provide exposure to commodities. As a result of the tactical allocation decision to remove commodities, the fund has been removed from the strategies.

  • Replaced Templeton Global Bond (TGBAX) with Vanguard International Bond Index Fund (VTABX)

Templeton Global Bond Fund invests in government and agency bonds globally with significant exposure to emerging markets debt and currencies. Given our concerns regarding the currency markets and emerging economies, the fund has been replaced with Vanguard International Bond Index Fund that fully hedges currency risk and provides broad exposure across major bond markets outside of the U.S. with low exposure to emerging countries.

  • Remove Cavanal Hill Large Cap Equity Fund (AIEQX)

This fund has been removed in favor of indexing in the large cap core space and putting the allocation to the Vanguard Institutional Index Fund (VINIX).

 

Disclosures

 The information provided in this was prepared by members of the investment management group, Strategic Investment Advisors (SIA), of BOKF, NA.  This commentary is not a complete analysis of any sector, industry or security.

BOK Financial Corporation (BOKF) offers wealth management and trust services through various affiliate companies and non-bank subsidiaries including advisory services offered by BOKF, NA and its subsidiaries BOK Financial Asset Management, Inc. and Cavanal Hill Investment Management, Inc. each an SEC registered investment adviser. BOKF offers additional investment services and products through its subsidiary BOSC, Inc., a broker/dealer, member FINRA/SIPC, and an SEC registered investment adviser and The Milestone Group, also an SEC registered investment adviser.

Investments are not insured by the FDIC and are not guaranteed by BOKF, NA or any of its affiliates. Investments are subject to risks, including the possible loss of the principal amount invested.

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