Additional Resources
The CMG Traditional Asset Allocation Portfolios (“Portfolios”) allocate to a diversified selection of ETFs across equities and fixed income assets and multiple sub-asset classes. The goal of the Portfolios is to provide clients the capability to invest in a diversified core portfolio seeking high market beta exposure with a long-term investment time horizon.
Each Portfolio is designed with a risk target range and maintains a certain level of equity and bond exposure. The Strategic Portfolios are rebalanced annually while the Dynamic Portfolio rebalances quarterly. Asset classes and the proportional weightings in the portfolios may change at any time subject to the direction of CMG.
The CMG Strategic Conservative Portfolio seeks to provide a conservative level of capital appreciation by allocating approximately 30% to equities and 70% to fixed income assets. The portfolio is targeting an approximately 8% risk level as measured by standard deviation.
The CMG Strategic Moderate Portfolio seeks to provide a moderate level of capital appreciation by allocating approximately 60% to equities and 40% to fixed income assets. The portfolio is targeting an approximate 8% to 16% risk level as measured by standard deviation.
The CMG Strategic Aggressive Portfolio seeks to provide an aggressive level of capital appreciation by allocating approximately 70% of the portfolio to equities and 30% to fixed income assets. The portfolio is targeting an approximate 16% or greater risk level as measured by standard deviation.
The CMG Dynamic Portfolio seeks to provide a moderate level of capital appreciation by allocating approximately 50% of the portfolio to equities and 50% to fixed income assets. The portfolio is targeting an approximate 18% or lower risk level as measured by standard deviation. The Dynamic Portfolio has a wider universe of ETF’s it can invest in (vs. the Strategic Portfolio’s).
Investment Objective: Capital Appreciation
Suggested Portfolio Positioning: Serves as a client’s core equity allocation
Suggested Allocation: Typically representing 25 – 50% of a client’s total portfolio
Benchmarks**:
CMG Strategic Conservative – Conservative Allocation Benchmark
CMG Strategic Moderate – Global Allocation Benchmark
CMG Strategic Aggressive – Aggressive Allocation Benchmark
CMG Dynamic – Global Allocation Benchmark
Morningstar Peer Group:
CMG Strategic Conservative – Allocation 30-50% Equity
CMG Strategic Moderate – Allocation 50-70% Equity
CMG Strategic Aggressive – Allocation 70-85% Equity
CMG Dynamic – Allocation 50-70% Equity
*No inverse or leveraged ETFs are used.
**The Conservative Allocation Benchmark is a custom benchmark that is rebalanced annually. The underlying components of the benchmark and their respective static allocations are: 20% S&P 500 Total Return, 10% FTSE World Ex US Total Return, 45% ICE BofA Current 5 Year US Treasury, and 25% FTSE World Government Bond Index Non USD.
** The Global Allocation Benchmark is a custom benchmark that is rebalanced annually. The underlying components of the benchmark and their respective static allocations are: 32% S&P 500 Total Return, 21.6% FTSE World Ex US Total Return, 21.6% ICE BofA Current 5 Year US Treasury, 14.4% FTSE World Government Bond Index Non USD, and 10% Bloomberg Commodity Total Return.
** The Aggressive Allocation Benchmark is a custom benchmark that is rebalanced annually. The underlying components of the benchmark and their respective static allocation are: 64% S&P 500 Total Return, 26% FTSE World Ex US Total Return, 5% ICE BofA Current 5 Year US Treasury, and 5% FTSE World Government Bond Index Non USD.
Past performance does not guarantee or indicate future results.
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