Risk Profile: Moderate Growth
The CMG Absolute Return Portfolio invests in actively managed mutual funds (and/or ETFs) that seek uncorrelated returns from the broad equity and fixed income markets. The strategy generally chooses from the following list of Morningstar fund categories: Commodities Broad Basket, Long-Short Equity, Long-Short Credit, Managed Futures, Market Neutral, Multialternative, and Tactical Allocation.
How it works
The strategy analyzes funds in the universe based on a combination of quantitative measures such as Sharpe Ratio and correlation. The final selections are selected to construct a well-diversified, equally weighted portfolio. The portfolio is rebalanced quarterly.
- Low correlation to broad equity and fixed income markets
- Exposure to equity, fixed income and commodity markets in one portfolio
- Risk managed allocations
Investment Objective: Absolute Returns
Suggested Portfolio Positioning: Serves as a complement to a client’s equity allocation
Suggested Allocation: Typically representing 10 – 20% of a client’s total portfolio
Benchmark: BBgBarc US Treasury Bill 1-3 Month TR USD
Morningstar Peer Group: US Multialternative
*No inverse or leveraged ETFs are used.
Past performance does not guarantee or indicate future results.
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