Hedging & Monetization Solutions for Advisors
Help Investors Manage Concentrated Stock Risk
Advisors frequently work with investors whose wealth is heavily concentrated in a single stock due to employee stock or option compensation, stock inheritance, business liquidity events, or long-term appreciation carrying low cost basis. These positions can introduce significant market, liquidity, and tax risks. Advisors Asset Management, Inc. (AAM) partners with advisors to deliver customized hedging and monetization strategies designed to help manage those risks while preserving the advisor–client relationship.
Why Advisors Use Hedging & Monetization
Concentrated stock positions can limit flexibility and expose investors to single‑security risk. AAM helps wealth managers
protect and monetize concentrated stock positions and other concerns to help neutralize associated risks.
AAM's Capabilities
Diversify investor portfolios without compromising control
AAM works alongside advisors to evaluate and implement solutions tailored to each investor's situation, including low‑cost basis and highly concentrated equity holdings. Our value add lies in our advisor-centric service model as well as our ability to leverage a full spectrum of investment solutions, including capital markets, asset management (funds and managed accounts), and alternative strategies.
How we assist:
- Capital preservation by implementing customized hedging strategies to help mitigate downside risk
- Generation of liquidity, or monetize, the value of a stock position while maintaining ownership characteristics, where appropriate
- Diversification of the stock positions across AAM's full spectrum of investment solutions, including, but not limited to fixed income, structured products, managed accounts, funds, and alternatives
- Deferral of capital gains tax associated with an outright sale of securities achieved through OTC derivatives (e.g. variable pre-paid forwards)
From initial analysis through execution and ongoing reviews, AAM provides full life‑cycle support.
AAM does not provide tax advice. Discussions of tax treatment are for general informational purposes only and do not apply to individual situations and circumstances. Investors should consult their accounting, legal and/or tax advisor before investing.
Create Tailored, High-Value Solutions
Diversify investor portfolios without compromising control
Like a fine, tailored suit many investors desire personalized solutions that are suitable for their individual financial needs and objectives.
With a focus on communication and transparency, AAM's reverse inquiry competencies allow us to help advisors create custom structured solutions designed to help investors express specific market views through market participation, potential yield enhancement, portfolio hedging and risk mitigation.
Built for Advisors.
AAM specifically supports advisors with a singular focus on sales distribution, trading, and asset management. Advisors retain control of the investor-client relationship while leveraging AAM’s experience and resources.
Experienced Team. Institutional Support.
A dedicated team with deep expertise in equity derivatives, structured products, and trading collaborates closely with advisors to support reverse inquiries and complex case analysis. Our team supports strategy design, execution, and education to ensure solutions align with each investor’s goals.
Start a Hedging & Monetization Conversation
AAM helps advisors hedge and monetize concentrated stock positions—let’s take a look at whether a strategy makes sense for you.
Advisors Asset Management, Inc. -- Company Profile
Established in 1979, AAM has become a highly respected financial force providing complete portfolio solutions tailored to the individual needs of financial professionals. Our results-oriented advisor-centric service model and industry experience differentiate us from the competition by adding real value to your financial services business.
For more than 45 years, AAM has been a trusted resource for financial professionals. The firm offers access to alternatives, exchange-traded funds, the fixed income markets, managed accounts, mutual funds, structured products, and unit investment trusts. AAM is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life.
In 2025, AAM facilitated over $27.5 billion in combined sales and investments through 12,350 financial professionals industry-wide who accessed AAM’s investment solutions platform. Of the $27.5, approximately $6 billion were Exchange-Traded Fund (ETF), Managed Account (SMA), Mutual Fund, and Unit Investment Trust (UIT) assets, while $21.5 billion was in Fixed Income securities, including bonds and Structured Products.
Hedging and monetization strategies involve risk and may not be suitable for all investors. Tax and legal considerations should be reviewed with the investor’s professional advisors.
Advisors Asset Management, Inc. (AAM) is not advising you to take any particular action based on the information, opinions or views contained herein. No representation is given with respect to the information’s accuracy or completeness, and it may change without notice.
This webpage is for informational purposes only to provide a high-level summary of various types of derivatives strategies. It is not intended to constitute investment advice or an investment recommendation. Advisors Asset Management, Inc. (“AAM”) has no knowledge of and has not been provided any information regarding any specific investor. This is not an offer or solicitation of an offer to any financial product or services. An investor would need sophisticated financial, legal and tax advice prior to entering any strategies discussed herein.
Any derivative strategies and specific derivative instruments described in this presentation involve a variety of significant risks. The specific risks presented by a particular derivative instrument and/or derivative strategy depend on the specific terms of the transaction and strategy and an investor’s circumstances. Investors and financial professionals should review all documents related to a derivative instrument and derivative strategy and make sure they have a full understanding of all applicable risks prior to entering into any transaction. Selected risks that apply to derivative transactions include but are not limited to market risk, credit and counterparty risk, funding risk, operational risk, liquidity risk.
CRN: 2026-0812-13705 R