Beaumont Capital Management (BCM), a Massachusetts-based wealth manager specialising in quantitative analysis, has launched a range of new products aimed at retirement savers. The Collective Investments Funds (CIFs) are based on portfolios of low-cost exchange-traded funds and provide risk-managed investment solutions for customers from any generation.

Beaumont’s newly launched range of ETF-based retirement products are offered with target maturity dates ranging from 2020 to 2060 in 10-year increments.

The suite of CIFs focus on target maturity dates from 2020 through to 2060 in 10-year intervals. The funds are actively managed, which the firm states allows enhanced growth during bull markets but also better navigation during future market volatility.

Bob Peatman, Director of National Sales, Beaumont Capital Management, commented: “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. Having dynamic, ETF-based 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.”

The portfolios are similar to regular target-date funds, but shift a larger proportion of assets towards lower risk assets as the date of maturity approaches. In this way the wealth of investors closer to retirement age may be better protected.

Dave Haviland, Managing Partner and Portfolio Manager of Beaumont Capital Management, added: “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 have included its US Sector Rotation and Decathlon Growth Tactics strategies within its CIF range, allowing investors to access these popular strategies in virtually any retirement plan.

The US Sector rotation strategy invests assets evenly among the nine S&P 500 sectors that are displaying positive momentum signals. Caps of 25% per ETF are used and then remaining assets are allocated to cash if only three or fewer sectors are displaying positive trends.

A Decathlon strategy holds 10 equally-weighted ETFs at any time while focusing on global exposure. The strategies differ in their target portfolio variability to allow investors to better understand and choose their level of accepted risk; the Decathlon Growth strategies aim for a portfolio standard deviation between 14.5% and 15.5%.