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The information contained herein should not be construed as financial or investment advice on any subject matter. Some of the information included on this site has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed. Beaumont is not affiliated with any third parties listed on the site unless otherwise specified.
As with all investments, there are associated inherent risks including loss of principal. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Sector and factor investments concentrate in a particular industry, and the investments’ performance could depend heavily on the performance of that industry and be more volatile than 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 which are magnified in emerging markets. The risks are particularly significant for ETFs that focus on a single country or region. The ETF may have additional volatility because it may be comprised significantly of assets in securities of a small number of individual issuers. Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company stocks. Smaller companies may have no or relatively short operating histories or be newly public companies. 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.
Fixed income investments are subject to inflationary, credit, market and interest rate risks.
As market conditions fluctuate, the investment return and principal value of any investment will change. Diversification does not ensure a profit or guarantee against a loss. There are risks involved with investing, including loss of principal. Before investing in any investment portfolio, the client and the financial professional should carefully consider client investment objectives, time horizon, risk tolerance, and fees. Participants and beneficiaries on whose behalf assets are invested in a QDIA have the right to direct the investment to any other investment alternative under the plan, subject to any fees or limitation that may apply to such transfer under the plan.
All index, statistical and return information contained herein was provided by Bloomberg, PSN and Morningstar. An investment cannot be made directly in an index.
Exchange Traded Funds (ETFs) trade like stocks and are subject to investment volatility and the potential for loss. ETFs are securities that track an index, a commodity or a basket of assets like an index fund, but trade like a stock on an exchange; ETFs experience price changes throughout the day as they are bought and sold. Some actively managed ETFs may be used such as AlphaDEX®, which uses a proprietary methodology for the construction of their portfolios. The principal amounts invested in ETFs are not protected, guaranteed or insured.
From inception to July 2016, investment decisions for applicable BCM strategies were based on the Financials and REIT sectors being combined into one. Due to index changes, these two sectors may be considered separately going forward, with a representative ETF used for each. All strategies’ objectives and goals remain the same. The telecommunications sector was treated differently by the indices of the underlying ETFs and within the BCM strategies from inception into Q3 2018. It may have been included as part of the technology or utilities sector, or as its own sector. Effective Q3 2018, the telecommunications sector was eliminated, and the communication services sector was created. This new sector is comprised of names from the now-defunct telecommunications sector plus names that were previously included in the technology and consumer discretionary sectors.
In October 2019, BCM Decathlon Conservative Tactics’ maximum equity limit changed from 80% to 50%. In Q3 2020, the methodology for BCM Decathlon was refined to trade dynamically rather than every 25 trading days. The Decathlon system is typically run and reviewed daily and typically ‘rebalances’ once a sufficient number of securities have fallen far enough in the rankings to justify the resulting trades. Decathlon’s process is subject to ongoing research and enhancement, with the goal of continuous improvement. The algorithms used by the system are usually optimized on a quarterly basis. Performance shown is based on the then current algorithms/system used.
In March 2014, BCM changed the name of several strategies. BCM AlphaDEX Diversified Equity was previously named BCM AlphaDEX Diversified Equity Premium; BCM AlphaDEX Moderate Growth was previously named BCM AlphaDEX Moderate Growth Premium; BCM AlphaDEX U.S. Sector Rotation was previously named BCM AlphaDEX Sector Premium IDX; BCM Diversified Equity was previously named BCM Diversified Equity Premium; BCM Diversified Equity (Monthly) was previously named BCM Diversified Equity; BCM Growth was previously named BCM Growth Premium; BCM Growth (Monthly) was previously named BCM Growth; BCM Moderate Growth was previously named BCM Moderate Growth Premium; BCM Moderate Growth (Monthly) was previously named BCM Moderate Growth; BCM Global Sector Rotation was previously named BCM Sector Global Premium IDX; BCM International Sector Rotation was previously named BCM Sector International Premium IDX; BCM U.S. Sector Rotation was previously named BCM Sector Premium IDX; BCM U.S. Sector Rotation (Monthly) was previously named BCM Sector Rotation IDX.
The inception date of the BCM Paradigm U.S. Factor Selection strategy was June 1, 2015. Prior to October 2017, it was known as BCM Paradigm Tactical Factor Selector and prior to June 2016 it was known as Broadmeadow Tactical US Factor Selector. The portfolio manager changed in April of 2017 and strategy methodology, risks, and goals have not changed since inception. The strategies are designed to identify and differentiate normal periods of investor behavior from more volatile periods, seeking adjusted risk returns. The performance provided is actual performance.
The target allocations shown are buy targets only. Actual allocations will differ due to market fluctuations. Cash levels are estimated to be ~2% even when a model is “fully” invested and can be allocated to a money market or short duration (up to a 1-3 year) bond ETF. Signals calling for trades that are less than $500.00 or 0.25% of the account may not be completed if, at BCM’s sole discretion, they do not warrant incurring the trading costs.
The BCM investment strategies may not be appropriate for everyone. Due to the periodic rebalancing nature of our strategies, they may not be appropriate for those investors who desire regular withdrawals or frequent deposits.
The portfolio manager maintains full discretion over all BCM strategies.
Beaumont Capital Management, LLC (BCM) is an SEC registered investment advisor. BCM offers tactical, defensively oriented strategies using long only ETFs across multiple asset classes with domestic, international and global exposure.
Beaumont Capital Management claims compliance with the Global Investment Performance Standards (GIPS®).
Prior to 1/1/2020, BCM was a division of Beaumont Financial Partners, LLC.
To obtain a GIPS® compliance presentation, or the composite descriptions for our strategies, contact us through any of the following channels, and the information will be sent to you: (P) (888) 777-0535, firstname.lastname@example.org, or by mail to the address provided.
A portion of the management fee collected by Beaumont from certain strategies is paid to Algorithmic Investment Models, LLC (AIM) for research provided. AIM is an independent provider of research to Beaumont. AIM develops and maintains quantitative models that are licensed and used by Beaumont as research when making investment decisions.
Beaumont Capital Management was originally created in 2009 as a separate division of Beaumont Financial Partners, LLC. Beaumont Capital Management LLC spun off as its own entity as of 1/2/2020. Beaumont Financial Partners, LLC was originally registered as Beaumont Trust Associates in 1981 and was reorganized into Beaumont Financial Partners, LLC in 1999.
“S&P 500®,” “S&P Small Cap 600®,” “S&P Global ex-U.S. BMI®,” and SPDR are the registered trademarks of Standard & Poor’s, Inc., a division of S&P Global Inc. All index names of the Barclays indices are trademarks of Barclays Bank PLC.; “MSCI” is the trademark of MSCI Inc. and/or its subsidiaries.
This material is for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument, nor should it be construed as financial or investment advice. The material may contain forward or backward-looking statements regarding intent, or beliefs regarding current or past expectations. The views expressed are also subject to change based on market and other conditions.
DALBAR disclosure from Philosophy web page: Quantitative Analysis of Investor Behavior (QAIB), 2016, DALBAR, Inc. www.dalbar.com. Returns are for the period January 1, 1986 through December 31, 2015. The QAIB uses data from the Investment Company Institute (ICI), Standard & Poor’s, Barclays Capital Index Products and proprietary sources to compare mutual fund investor returns to an appropriate set of benchmarks. Investor returns are represented by the change in total mutual fund assets after excluding sales charges and costs, but do capture realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses and any other costs. After calculating investor returns in dollar terms, two percentages are calculated for the period examined: Total investor return rate and annualized investor return rate. Total return rate is determined by calculating the investor return dollars as a percentage of the net of the sales, redemptions and exchanges for each period.
Social Media Disclosure:
Information posted on the Beaumont Capital Management (“BCM”) social media sites (“Sites”) should not be construed as a recommendation, an offer to buy any securities or as investment advice. If you are investing in BCM strategies and have questions or concerns that are specific to your account(s), please contact your financial advisor directly. If you are not a BCM client and would like more information about the firm or its strategies, please contact us at 844-401-7699 or email@example.com. Any opinions, ideas, perspectives or outlooks expressed by BCM or its employees on the Sites are as of the date of publication and are subject to change. Information used on these Sites, or as a resource to create that information, may be derived from third party resources that BCM believes to be accurate and reliable, however it cannot be guaranteed. BCM’s posts to these Sites are considered communications with the public and are archived as required by the firm’s polices and applicable regulators.
The Sites may contain links to articles or other information on a third-party website. BCM does not endorse the third-party sites where this information is posted, nor does it accept responsibility for the accuracy or reliability of the content. BCM assumes no liability for any inaccuracy, error or exclusion of data or other information provided on the third-party website or resource. Opinions or statements posted by third parties are their own and may not be representative of BCM or the experience of others. BCM reserves the right to remove any comments, posts, third party-posted content or other content that we deem inappropriate, or that contains confidential information, profanity or illegal material. Due to the regulations prohibiting the use of testimonials by investment advisers, visitors to the BCM Sites should avoid posting positive reviews of their experiences with the firm, its personnel, principals or its services as such posts may be considered testimonials. BCM has attempted to address this by not permitting feedback or discussion items on social media platforms. BCM is not affiliated with third party Sites where our information may be posted and has no control over how LinkedIn, Facebook, Google+, Twitter or other third parties will use the information shared on the Sites. We recommend you read and understand the privacy policies and terms of service for each social media site which you frequent and understand how information can be displayed and used throughout the Sites, as well as other third-party sites that may be linked to them.
Exchange Traded Fund (ETF) — 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 and are subject to investment volatility and the potential for loss.
Stock — A type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings. There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders’ meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares.
Bond — A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate, commonly referred to as a fixed-income security. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities.
Credit Risk — The risk of default on a debt that may arise from a borrower failing to make a required payment.
Duration risk — A measure of the sensitivity of the price of a fixed-income investment to a change in interest rates.
Annualized Return — The equivalent annual return an investor receives over a given period
Standard deviation — A measure of variability used in statistics. A low standard deviation indicates that the data points tend to be very close to the mean, whereas high standard deviation indicates that the data points are spread out over a large range of values.
Beta — A number describing the relation of its returns with those of the financial market as a whole. A positive beta means that the asset’s returns generally follow the market’s returns. A negative beta means that the asset’s returns generally move opposite the market’s returns.
Alpha — A risk-adjusted return in excess of that received by a benchmark.
R2 — Represents the percentage of a fund or security’s movements that can be explained by movements in a benchmark index.
Max Drawdown — The maximum peak to trough decline in monthly returns of the strategy over the given time period.
Sharpe Ratio — A measure of the excess return per unit of standard deviation in an investment asset or a trading strategy.
The Standard & Poor’s (S&P) 500® Index is an unmanaged index that tracks the performance of 500 widely held, large-capitalization U.S. stocks. Indices are not managed and do not incur fees or expenses. It is not possible to invest directly in an index. The S&P 500 ® is a registered trademark of Standard & Poor’s, Inc.
The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency).
The MSCI EAFE Index is an equity index which captures large- and mid-cap representation across 21 Developed Markets (Europe, Australasia, Far East) countries around the world, excluding the US and Canada. The index covers approximately 85% of the free float-adjusted market capitalization in each country.
The MSCI USA Index is designed to measure the performance of the large- and mid-cap segments of the US market, covering approximately 85% of the free float-adjusted market capitalization in the US.
The MSCI Europe (ex UK) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in Europe excluding the United Kingdom.
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of September 2016 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
The MSCI World ex-U.S. Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of September 2016 the MSCI World ex US Index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.
The MSCI ACWI captures large- and mid-cap representation across 23 Developed Markets and 26 Emerging Markets countries, covering approximately 85% of the global investable equity opportunity set.
The MSCI ACWI ex USA Index captures large- and mid-cap representation across 22 of 23 Developed Markets countries (excluding the US) and 26 Emerging Markets countries, covering approximately 85% of the global equity opportunity set outside the US.
The MSCI Emerging Markets Index captures large- and mid-cap representation across 26 Emerging Markets (EM) countries, covering approximately 85% of the free float-adjusted market capitalization in each country.
Standard & Poor’s (S&P) Small Cap 600® Index is an unmanaged index that tracks the performance of 600 widely held, small-capitalization U.S. stocks. The FTSE Global Small Cap ex U.S. Index is a market-capitalization weighted index representing the performance of Small cap stocks in Developed and Emerging markets excluding the US.
Dow Jones Relative Risk Indices are total-portfolio indices that allow investors to evaluate the returns on their portfolios considering the amount of risk they have taken. The family includes global and U.S. indices for five risk profiles—aggressive, moderately aggressive, moderate, moderately conservative and conservative. These profiles are defined based on incremental levels of potential risk relative to the risk of an all-stock index. Each Dow Jones Relative Risk Index is made up of composite indices representing the three major asset classes: stocks, bonds and cash and will vary depending on the risk profile. The asset class indices are weighted differently within each relative risk index to achieve the targeted risk level. The weightings are rebalanced monthly to maintain these levels. The appropriate global indices were selected based on composition and risk level compared to the BCM Decathlon strategies.