Machine Learning Based Strategies Designed for a Smoother Ride
The BCM Decathlon Strategies are powered by a machine learning system designed to remove emotion from decision-making and provide investors with a “smoother ride”—consistent returns with less volatility.
These global, go-anywhere products use a quantitative, machine learning-based approach to seek growth opportunities wherever they may be and help preserve capital by managing volatility and timely equity exposure.
Disciplined, Predictive and Quantitative Approach Applied to Virtually Every Investible Asset Class
Using pattern recognition technology, the system analyzes the historical return and volatility data of each ETF in the managed investment universe. Selecting from a carefully curated pool of 240 ETFs, the system was engineered to identify, predict and take advantage of meaningful and desirable historical patterns that are repeating in today’s markets.
Investment Pool. The Decathlon strategies’ universe consists of 240 ETFs and was designed to provide the system with diverse options to select from, including broad asset classes to focused or niche ETFs.
Identify repeating patterns. On a daily basis, Decathlon’s algorithms are designed to identify performance and behavior patterns for each ETF in the investment pool.
Rank ETFs based on patterns. The system will then use the predicted patterns to rank each ETF in the investment universe daily from the most desirable to the least, based on the risk/reward expected.
Invest in the top 10. When the portfolio is rebalanced, the 10 most attractive, risk-appropriate ETFs are selected and included in the portfolios.
BCM Decathlon Strategies
Objectives:
The system is designed to create portfolios that have overall volatility within the specified levels and equity exposure in-line with their risk category given the market environment. Using varying target ranges for maximum volatility, and optimizing the strategies for risk-appropriate equity exposure, allows investors to select their desired level of risk.
Fit within a client account:
As asset allocation strategies with targeted equity ranges, Decathlon can be used as a core holding in a portfolio, or it can be a 25-30% wedge used to diversify holdings and time equity exposure based on market conditions.
Setting expectations:
Decathlon seeks to provide consistent returns with less volatility over time. Each strategy has an average strategic allocation expected over longer-term periods but can significantly deviate from that allocation over shorter periods.
BCM Decathlon Conservative Tactics
4-7% Expected Volatility Range
0-30% Expected Equity Exposure
The benchmark for the Conservative Tactics strategy is 20% MSCI ACWI / 80% ICE BofA US Broad Market Index, which represents the “neutral” asset allocation of the strategy expected over time. However, there will be significant deviation from this asset allocation over shorter periods due to the strategy’s opportunistic nature.
BCM Decathlon Moderate Tactics
7-12% Expected Volatility Range
30-70% Expected Equity Exposure
The benchmark for the Moderate Tactics strategy is 50% MSCI ACWI / 50% ICE BofA US Broad Market Index, which represents the “neutral” asset allocation of the strategy expected over time. However, there will be significant deviation from this asset allocation over shorter periods due to the strategy’s opportunistic nature.
BCM Decathlon Growth Tactics
11-16% Expected Volatility Range
50-100% Expected Equity Exposure
The benchmark for the Growth Tactics strategy is 70% MSCI ACWI / 30% ICE BofA US Broad Market Index, which represents the “neutral” asset allocation of the strategy expected over time. However, there will be significant deviation from this asset allocation over shorter periods due to the strategy’s opportunistic nature.
BCM Decathlon Conservative Aspect*
4-5.5% Expected Volatility Range
0-30% Expected Equity Exposure
The benchmark for the Conservative Aspect strategy is 20% MSCI ACWI / 80% ICE BofA US Broad Market Index, which represents the “neutral” asset allocation of the strategy expected over time. However, there will be significant deviation from this asset allocation over shorter periods due to the strategy’s opportunistic nature.
BCM Decathlon Moderate Aspect*
7-10.5% Expected Volatility Range
30-70% Expected Equity Exposure
The benchmark for the Moderate Aspect strategy is 50% MSCI ACWI / 50% ICE BofA US Broad Market Index, which represents the “neutral” asset allocation of the strategy expected over time. However, there will be significant deviation from this asset allocation over shorter periods due to the strategy’s opportunistic nature.
BCM Decathlon Growth Aspect*
11-14.5% Expected Volatility Range
50-100% Expected Equity Exposure
The benchmark for the Growth Aspect strategy is 70% MSCI ACWI / 30% ICE BofA US Broad Market Index, which represents the “neutral” asset allocation of the strategy expected over time. However, there will be significant deviation from this asset allocation over shorter periods due to the strategy’s opportunistic nature.
*BCM Decathlon Aspect Strategies are only available on the AssetMark™ platform. Please visit eWealthManager for more information, including performance, on the strategies.
Market Insights
Want to know how you can access BCM’s strategies?
Thanks to current technology, Decathlon is available to virtually any financial professional or institution in one way or another. We would welcome a conversation to find out the most efficient way for you to access us based on your preferences and business model.
Fill out this quick form and we will get back to you with the best method to access the BCM Decathlon strategies, or any of our other strategies that may be available to you.
Or call our consultants at (844) 401-7699.