Beaumont Capital Management (BCM), a specialist in quantitative, ETF-based investment strategies, it has launched new retirement-planning financial products for 2016 with the introduction of risk-managed target date Collective Investment Funds (CIFs).
BCM’s retirement products address the need for a more versatile investment solution that seeks to benefit in growing markets and can react appropriately and decisively in periods of market volatility. In addition, the products are designed to address the current Department of Labor and industry concerns with other target date funds.
The risk-managed target date CIFs offered are the BCM DynamicBelay 2060 QDIA through the year 2020, in 10-year intervals. These age-based portfolios are designed to meet the varied needs across a workforce from ageing Baby Boomers on the verge of retirement to Millennials just starting their first job. The portfolios mirror the design of a target-date fund, but the overall strategic allocations are adjusted over longer periods the way most investment advisors would manage a portfolio, rather than small annual adjustments. Additionally, BCM launched their U.S. Sector Rotation and Decathlon Growth Tactics strategies as collective investment funds, which can easily be included and accessed in virtually any retirement plan.
“The premise of our new retirement products is to offer portfolios that are low cost, have active management, are defensively oriented and meet the needs of investors regardless of where they are in their life stage,” says Dave Haviland (pictured), Managing Partner and Portfolio Manager of Beaumont Capital Management. “In 2008, we saw many target date funds did not adequately decrease portfolio risk for investors approaching retirement age and they endured significant losses when they could least afford to play catch up. The lesson we took was to build portfolios that follow the philosophy we’ve been applying to our existing portfolios for years that both adjust to changing market cycles and also decrease equity risk over time.”
BCM’s new products are aligned with the firm’s ongoing philosophy of delivering asset-transparent, defensively oriented and market-responsive investment products with a straightforward and low, all-in cost structure.
“With the majority of employees selecting, or being placed into default options in their employer’s 401(k) programs, plan sponsors and financial advisors need better options in their portfolios for not only reasonable long-term growth, but also a defensive orientation as markets begin to turn into negative territory,” says Bob Peatman, Director of National Sales. “Given the current financial picture, a change in the market is not a question of if but when. Having dynamic, ETF-based QDIA options in a company’s retirement portfolio can provide peace of mind for plan sponsors knowing their employees are being given proper investment options as they prepare for their retirement.”