Smart beta continues to roll, and now Boston-based Beaumont Capital Management has launched a new fixed income exchange traded fund strategy – BCM Dynamic Global Fixed Income
The new strategy is part of a suite, which includes three defensive offerings to “meet the challenges faced by today’s investors in a rising interest-rate environment.”
“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,” Dave Haviland, BCM’s managing partner, said in a statement. “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 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 percent cash or short-term bond positions in a bond bear market.