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Beaumont Capital Management and Envestnet Offer New Sector Rotation Strategies

August 13, 2014

NEEDHAM, Mass.--(BUSINESS WIRE)-- Beaumont Capital Management (BCM), 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 utilizing 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 amongst the first of their kind in offering investors the ability to apply a sector rotation approach to Small Cap and Global investing. Combining these new strategies with their existing Large Cap and International sector rotation strategies, BCM now provides a robust selection of sector rotation portfolios.

Aaron Bauer, Managing Director of Strategic Partners at Envestnet, commented, “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 U.S. Sector Rotation, Diversified Equity, Growth, and Moderate Growth portfolios. All strategies provide exposure to U.S. 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 costs1 and expense ratios by investing in Fidelity® sector ETFs. For advisors with clients seeking more aggressive risk/reward outcomes, the BCM Relative Strength series utilizes 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,” said Mr. 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,” he explained.

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% 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 October 31st, three of the strategies in the flagship BCM Sector Rotation series will have reached a five-year performance track record. By November 30th, three of the strategies in the BCM AlphaDEX® Sector Rotation series will have reached a three-year performance track record.

In addition to Envestnet, many of Beaumont Capital Management’s sector rotation strategies are available through a number of investment platforms, including: Argentus, Mid-Atlantic Trust Company and others, as well as through many broker-dealers.

About Beaumont Capital Management

Beaumont Capital Management (BCM) helps investors participate in bull markets while protecting against bear market losses. BCM is committed to providing objective, rules-based investment strategies in a clear, straightforward manner. Offering a wide range of investment solutions to advisors, institutional investors and retirement plan providers, clients can opt for diversified, packaged solutions or discrete tools to complement core holdings; and can select the degree of quantitative exposure they prefer, from purely quantitative strategies to portfolios that combine quantitative and fundamental approaches. BCM’s Sector and Decathlon strategies invest solely through long-only ETFs, to provide greater transparency of investors’ underlying holdings while minimizing costs. Whichever solution investors choose, BCM can help them take advantage of the market’s potential for compound growth. BCM is a separate division of Beaumont Financial Partners, which traces its history to 1981. Beaumont as a firm has $2.17 billion in assets under management as of 6/30/14.

1 The Fidelity Sector ETFs and certain complementary iShares ETFs will trade commission-waived at Fidelity and National Financial Services (NFS) only. This does not apply to Asset Based Pricing programs; not all Broker Dealers will participate. Fidelity and iShares may change their commission-waived policies at any time.

Copyright © 2014 Beaumont Financial Partners, LLC. All rights reserved.

As with all investments, there are associated inherent risks. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Sector investments concentrate in a particular industry and the investments’ performance could depend heavily on the performance of that industry and be more volatile that the performance of less concentrated investment options and the market as a whole. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of region. The ETF may have additional volatility because it may be comprised significantly of assets in securities of small number of individual issuers. Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company stocks. Some of these companies have aggressive capital structures, including high debt levels, or are involved in rapidly growing or changing industries and/or new technologies, which pose additional risks.

ETFs are not actively managed, trade like stocks and are subject to investment volatility and the potential for loss. The principal amounts invested in ETFs are not protected, guaranteed or insured. An Exchange Traded Fund (ETF) is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.

The Beaumont Capital Management investment strategies are not appropriate for everyone. Due to the periodic rebalancing nature of our strategies, they are not appropriate for those investors who need or desire monthly or quarterly withdrawals or who wish to make periodic deposits.

“PowerShares®” is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). “AlphaDEX®” is a registered trademark of First Trust Portfolios L.P. “Fidelity®” are registered trademarks of FMR LLC or an affiliate.

For additional information about Beaumont Capital Management or any of our strategies please contact us as at (888) 777-0535, bcmadmin@investbcm.com or visit investBCM.com.




Beaumont Capital Management

Media contact:

Courtney Bartlett, Marketing Manager

888-777-0535

cbartlett@investBCM.com

Source: Beaumont Capital Management (BCM)


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