Beaumont Capital Management and Envestnet launch ETF-based sector rotation strategies
Beaumont Capital Management (BCM), a provider of quantitative, ETF-based investment portfolios, has launched nine new strategies on the Envestnet platform.
They represent two new series of sector rotation strategies, BCM Advantage series and Relative Strength series, as well as the new BCM Small Cap Sector Rotation strategy. These strategies offer advisors alternative approaches for using BCM’s defensively-oriented sector rotation strategies that are designed to participate in market upside while avoiding the largest losses of bear markets.
The new BCM Small Cap Sector Rotation and the existing BCM Global Sector Rotation strategies are among the first of their kind in offering investors the ability to apply a sector rotation approach to small cap and global investing.
Aaron Bauer, managing director of strategic partners at Envestnet, says: “We are excited to provide a forum where advisors and their clients can access the latest innovations in ETF strategies. In particular, offering small cap and global sector rotation are two great examples of this. We are pleased to continue our longstanding relationship with Beaumont Capital Management.”
The new strategies follow an established quantitative methodology developed and refined by BCM’s investment team, led by portfolio manager and managing partner David Haviland.
Each of the two new sector rotation series offers advisors access to BCM’s sector rotation through diversified portfolio strategies, including US sector rotation, diversified equity, growth, and moderate growth portfolios. All strategies provide exposure to US large cap equity, with some having the ability to add global macro and international equities, as well as high quality fixed income, according to the client’s desired risk profile.
The BCM Advantage series offers advisors with cost-sensitive clients the lowest transaction costs and expense ratios by investing in Fidelity sector ETFs. For advisors with clients seeking more aggressive risk/reward outcomes, the BCM Relative Strength series uses Powershares Dorsey Wright sector ETFs designed to add alpha through their proprietary “momentum on momentum” process.
“We are pleased to further deepen our relationship with Envestnet by offering advisors new tools to manage their portfolios’ sector and market exposure,” says Haviland. “The new strategies offer advisors more portfolio flexibility by providing a vast selection of sector rotation strategies. They are designed with the same proven, quantitative, risk-mitigating approach that we have been using with our flagship series of portfolios. We believe it provides investors a compelling way to participate in market climbs, while seeking to reduce the risk of large losses.”
All BCM sector rotation portfolios are designed to participate in sectors with positive momentum, while rotating out of sectors with sustained negative momentum. The portfolios can rebalance as frequently as weekly via BCM’s proprietary quantitative process. The strategies may range from fully invested to 100 per cent cash as market conditions warrant.
Several of BCM’s sector rotation strategies available on Envestnet will be reaching performance record milestones over the coming months. By 31 October, three of the strategies in the flagship BCM Sector Rotation series will have reached a five-year performance track record. By 30 November, three of the strategies in the BCM AlphaDEX Sector Rotation series will have reached a three-year performance track record.
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