NEEDHAM, Mass.--(EON: Enhanced Online News)--Beaumont Capital Management (BCM), a leading provider of tactical, ETF-based investment solutions, has announced the launch of a new smart beta fixed income solution, the BCM Dynamic Global Fixed Income strategy. The new strategy is part of a diverse fixed income suite, which includes three distinct defensive fixed income offerings to meet the challenges faced by today’s investors in a rising interest-rate environment.
“In this type of prolonged bull market, investors commonly start shifting a portion of profits taken in equities to fixed income in their portfolios. However, investors may forget that with rises in interest rates and the potential for continued hikes, passive fixed income is at risk of drawdowns as well”
“As we’ve experienced in recent months, the bond market is far from immune to periods of volatility and the risk of significant asset loss,” said Dave Haviland, BCM’s Managing Partner. “More than ever, investors need the same benefits of tactical management in their fixed income portfolio as they do for their equity investments. BCM Dynamic Global Fixed Income and the suite of BCM fixed income strategies aims to provide that level of protection as we face greater uncertainty in the bond markets.”
The Dynamic Global Fixed Income process seeks risk-adjusted returns and downside protection through rules-based analysis, primarily focusing on volatility. The strategy uses a set of quantitative models seeking to identify patterns in the volatility of domestic and international fixed income markets as a whole to either take advantage of opportunities or avoid negative volatility by reallocating to defensive positioning. The strategy’s inception date is 10/1/2013, giving the portfolio more than a three-year track record.
“In this type of prolonged bull market, investors commonly start shifting a portion of profits taken in equities to fixed income in their portfolios. However, investors may forget that with rises in interest rates and the potential for continued hikes, passive fixed income is at risk of drawdowns as well,” said Eric Biegeleisen, BCM’s Director of Quantitative Research and Portfolio Manager of the strategy. “Compounding this with the U.S. dollar’s strength, investors need a more dynamic approach to fixed income as a way to invest in a lower-than-equity risk portfolio.”
The new Dynamic Global Fixed Income strategy joins the BCM Paradigm Tactical Fixed Income and the BCM Income portfolios in the firm’s fixed income suite. BCM Paradigm Tactical Fixed Income strategy uses a process based on analysis of investor behavior to identify shifts between ‘normal’ and ‘volatile’ bond environments in the U.S. The BCM Income strategy is a fundamental portfolio option following a long-term approach with investments in high quality fixed income ETFs with diversification across geography, type, credit quality, and duration. All three BCM fixed income strategies can go to 100% cash or short-term bond positions in a bond bear market.
Each strategy aligns with the firm’s philosophy of delivering relative returns in up markets, while aiming to offer defensive capabilities, attempting to protect against down markets. In addition, the new strategies are consistent with BCM’s desire to fulfill its mission to offer asset transparency and low cost solutions.
About Beaumont Capital Management (BCM)
Beaumont Capital Management provides tactical, growth strategies to advisors, institutions and retirement plan providers. BCM’s rules-based, defensive-oriented investment solutions seek to provide growth while avoiding large bear market losses. The firm’s tactical, ETF-based portfolios offer cost-effective, active management for virtually any investor, and the TDFs are DALBAR certified. Created in 2009, Beaumont Capital Management is a separate division of Beaumont Financial Partners, which traces its history to 1981. Beaumont as a firm has approximately $3.7 billion in AUM & AUA as of 9/30/16. For more information, visit www.investbcm.com.