In a financial environment marked by volatility and shifting investor expectations, understanding how asset managers adapt has become increasingly important. That perspective was central to a recent discussion with Derek Izuel, chief investment officer at Shelton Capital Management, who outlined the firm’s latest strategic move and what it means for clients navigating today’s markets.
Shelton Capital Management recently announced its acquisition of Stringer Asset Management, a transaction that brings Shelton’s total assets under management to roughly $7 billion. Stringer is known for its ETF based asset allocation strategies and a track record of strong risk adjusted returns. Izuel described the acquisition as a natural extension of Shelton’s long term goal to broaden and strengthen its investment offerings in an increasingly complex market environment.
Izuel noted that client expectations have evolved. Registered investment advisors and individual investors alike are looking for solutions that can withstand elevated volatility, persistent inflation, and uncertain economic conditions. By integrating Stringer’s strategies into its platform, Shelton is expanding its ability to meet those demands, offering tools designed to perform across a wider range of market scenarios.
Among the products highlighted was the SEPI ETF, a new equity income fund built on Shelton’s five star rated equity income mutual fund from Morningstar. Izuel explained that SEPI focuses on high quality companies with strong cash flows and uses covered call strategies to enhance income. The structure allows investors to maintain equity exposure while also seeking to generate consistent income through market volatility.
Izuel also addressed a broader shift in portfolio construction. In an environment of rising inflation and higher interest rates, traditional diversification between stocks and bonds has become less reliable. As a result, investors are increasingly looking for alternatives that can provide income and risk management at the same time. The SEPI ETF is designed to meet that need by blending equity exposure with an income focused strategy that can help smooth returns.
According to Izuel, investors are paying closer attention to how income and risk are balanced within their portfolios. With global economic uncertainty continuing to drive market swings, strategies that can turn volatility into a source of opportunity are gaining traction. Products like SEPI, he said, allow investors to treat volatility as an asset class, generating income while adding a different layer of diversification.
Looking ahead, Izuel emphasized that Shelton Capital Management is focused on delivering investment solutions that go beyond traditional index products. By offering access to strategies that are not always available through conventional mutual funds or passive vehicles, the firm aims to add meaningful value for clients. As market conditions continue to evolve, Izuel said Shelton remains committed to standing alongside investors, providing tailored solutions designed to meet the demands of a changing investment landscape.