Risk Profile: Moderate Growth
The CMG Tactical Rotation Strategy seeks to generate returns in all market conditions based on the concept that various asset classes and sectors experience bull and bear markets at different times. The strategy utilizes a proprietary tactical investment model that analyzes various technical indicators to determine which asset classes are in a bullish environment and likely to achieve a positive return. The strategy employs an equally weighted strategic rotation model which allocates the portfolio to the top two asset classes from a universe of six: Domestic Equities, International Equities, Bonds, Commodities, REITs & Cash. If none of the first five asset classes exhibit a positive uptrend, the strategy has the ability to allocate the portfolio entirely to cash. The strategy makes investment allocation decisions on a monthly basis. Once the portfolio is allocated, the positions are held and monitored for the entire month.
How it works:
The CMG Tactical Rotation Strategy employs a 100% quantitative proprietary algorithm to determine portfolio positions.
- The strategy uses a technical indicator to determine the top two of six asset classes:
- Domestic Equities, International Equities, Bonds, Commodities, REITs & Cash.
- Once the top two are determined, other technical indicators are applied to these two asset classes to confirm the selection.
- The portfolio can have the following allocations:
- 100% invested
- 50% invested
- 100% cash
Investment Objective: Capital Appreciation
Suggested Portfolio Positioning: Serves as a complement to a client’s traditional equity portfolio
Suggested Allocation: Typically representing 10-25% of a client’s total portfolio
Benchmark: Global Allocation Benchmark — (32% S&P 500 Index TR, 21.6% FTSE World Ex-US Index TR, 21.6% ICE BofA Current 5 Year US Treasury Index, 14.4% FTSE World Government Bond Index Non-USD, and 10% Bloomberg Commodity Index TR)
Morningstar Peer Group: Tactical Allocation
*No inverse or leveraged ETFs are used.
Past performance is no guarantee of future returns.
Want to continue the conversation?
Call us at (800) 891-9092. Or go to our contact form.