1. BCM Global Sector Rotation

2. Strategy Overview:
BCM Global Sector Rotation is a tactical, rules-based investment strategy. The portfolio is a global equity growth strategy designed to meet or beat the S&P Global 1200 Index over time while reducing portfolio volatility and drawdowns. The quantitatively-researched, ETF-based strategy seeks to help investors participate when markets are healthy and avoid large market losses in times of market failure.
The strategy solely invest in long-only ETFs or money market funds, and avoid leverage, options, inverse and other complicating, risky factors. All eligible BCM strategies are GIPS® verified annually by an independent third party.
Philosophy:
Our investment philosophy is based on 3 main principles:
1. Investors often misinterpret risk.
We believe that investors are not risk averse, they are loss averse. The industry’s primary measurement of risk, standard deviation, can be incomplete and is too often misinterpreted by the average investor as maximum drawdown. We focus on the risk we believe investors care about most – losing a lot of money.
2. Emotion drives investor actions.
Investors tend to make the worst decisions at the worst possible times. Fear consumes them and eventually they panic, selling at or near the bottom of a bear market. Then, as the market recovers, it takes so long for the client to feel comfortable reinvesting, they miss a significant portion of the upside, preventing them from recovering their losses.
3. Large losses can devastate a portfolio.
Whether you’re an investment professional or individual investor, large market losses can devastate any portfolio, hindering your long-term results. Why? When a portfolio experiences a large loss, a disproportionate gain is required just to get back to where you started. For example, if a portfolio sustains a 10% loss, an 11% gain is required to break-even; and if the portfolio sustains a 51% loss, as the S&P 500® Index did in bear market, it requires 105% gain to recover the principal. This investment math further supports the investor’s view of risk and emotion-driven decisions.
The BCM strategies seek to address all 3 of these principles, and align with investor’s needs and expectations. 2

3. Strategy Philosophy:
The strategy invests 100% in Global Sector Equity ETFs. The quantitative model analyzes 11 sectors of the S&P Global 1200 on a weekly basis to establish which sectors have positive momentum. The strategy owns the ETFs representing those sectors with positive momentum, in equal weights, and sells those that have negative momentum. If three or fewer sectors are owned, the strategy starts to raise cash (or substitutes) in 25% increments and can go to 100% cash if conditions warrant. 3

4. Portfolio Construction:
The strategy typically invests in the iShares Global Sector ETFs representing 11 sectors of the S&P Global If the process dictates that all 11 sectors are showing positive momentum, the strategy will own all 11 sectors in equal weights. If the process determines a sector should be sold, those assets will be redeployed in equal weights across the remaining sectors owned. The strategy will begin to raise cash in 25% increments once fewer than 4 sectors are owned and can go to 100% cash or substitutes if market conditions warrant. The maximum position size for the portfolio is 25% 4

5. Risk Management: Max position size: 25% Max sector concentration: 25%
Max country exposure: 100% U.S.
Max Gross Exposure: 100%
Max Net Exposure: 100%
Max Long Exposure: 100%
Max Short Exposure 0% 5

6. Winning Trade
The strategy sold Global Financials at the end of June in 2015 and has not owned it since. This is in relation to a ~20% weighting to the Financials sector in the benchmark. Since it was sold, the Global Financials ETF has fallen roughly 17%, compared to a fall of roughly 4.5% for the MSCI ACWI Index.

7. Losing Trade
During a market selloff in late-August 2015, the strategy allocated 75% of the portfolio to cash. This level of cash was maintained until early-October at which time the strategy began to decrease its cash allocation. The strategy maintained an elevated level of cash until early-November. Although the cash lowered the volatility of the portfolio, it was slow to reinvest as momentum was re-established and the MSCI ACWI Index returned roughly 5% while the portfolio had elevated levels of cash.

8. Company Overview:
Beaumont Capital Management (BCM) provides ETF-based growth strategies that seek to participate in healthy markets while avoiding large bear market losses. Our tactical portfolios provide cost-effective active management to institutions, advisors and retirement plans as SMAs, sub-advisor to 40 Act Funds, Target-Date Funds and standalone CITs. All eligible BCM strategies are independently GIPS verified.
Beaumont Financial Partners, our wealth management division, has been investing for private and institutional clients since After the two most recent financial crisis’, our clients were looking for Beaumont to institutionalize their defense philosophy. With such demand, BCM was created in 2009 to deliver rules-based, growth strategies to help clients meet their long-term financial goals.
Beaumont is a boutique asset management firm located outside Boston, MA with 48 employees and a national team of advisor consultants. Today BCM manages $2.83 billion and Beaumont as a firm has nearly $3.82 billion in AUM/AUA.
Our background in wealth management allows us to see the markets through the lens of an advisor. Our experience has taught us the importance of forming long-lasting relationships with financial advisors and plan sponsors. Using our strategies leaves the asset allocation and security selection decisions with us, so advisors can focus on growing their practice and servicing their clients.
Beaumont Capital Management is a separate division of Beaumont Financial Partners, LLC. 8

9. Management Bios: 9 David M. Haviland
Portfolio Manager, Managing Partner
Dave is a Managing Partner of Boston-based Beaumont Financial Partners and the lead Portfolio Manager of Beaumont Capital Management (BCM). In addition to managing the BCM strategies, his responsibilities include Chairing the BCM Investment Committee, strategy creation, thought leadership and ongoing business development.
With three decades of experience, Dave has worked in the financial industry since 1986 and has spent most of his career as an investment advisor. His advisory background has provided him with a unique perspective on managing the BCM Strategies. In 1993, Dave joined his father at H & Co. Financial Services and in October 2000, under his management, Dave merged H & Co. into Beaumont Financial Partners (BFP). In 2009, Dave created the BCM division and has been the steward of BCM’s rapid yet purposeful growth.
Outside of the office, Dave has always been active in his community. He has served as Treasurer for several organizations, volunteered six years on the Dover School Committee, including multiple chairmanships, and currently serves as Dover’s Assistant Town Moderator. Dave enjoyed coaching his three boys in just about every sport; he and his wife Kate, along with their sons, are active trap and skeet enthusiasts and registered Therapy Dog handlers. Dave is a graduate of Deerfield Academy and an honors graduate of the University of Vermont.
Eric Biegeleisen, CFA
Director of Quantitative Research
Eric Biegeleisen is the Director of Quantitative Research at Beaumont Capital Management (BCM). In addition to leading the quantitative analysis team, Eric’s overall responsibilities include incubating new investment portfolios, enhancing existing strategies, and researching industry and ETF trends. As an ETF industry expert, he is experienced in investment modeling, implementing best trading practices and providing unique investment strategies to individual and institutional investors.
Prior to joining BCM, Eric was the Chief Investment Officer and Portfolio Manager of BroadmeadowCapital, LLC an investment firm which he co-founded in Previously, he worked for Windhaven Investment Management as a Senior Investment Analyst and then Director of Research, specifically leading the firm’s quantitative modeling, product due diligence and portfolio structuring. Before joining the investment industry, Biegeleisen was an engineer for General Dynamics and Textron, working to develop next-generation communications and defense solutions.
Eric earned his B.S. in electrical engineering from Trinity College in Hartford, CT, an M.S. in electrical engineering from the University of Southern California, and an MBA from Boston University’s Questrom School of Business. He also became a CFA charterholder in 2011. 9