The TREND series of portfolios represents our investment philosophy and our commitment to wealth through ingenuity. The TREND series of portfolios utilizes our Tactical, Relative Strength process to build portfolios of ETFs that provide Non-Traditional Diversification. It is the essence of our investment philosophy.
Tactical investments attempt to move in and out of asset classes, sectors or countries to take advantage of market opportunities or to mitigate risk. CMG’s TREND portfolios make short- to intermediate-term decisions based on quantitative factors like price momentum and relative strength.
CMG’s proprietary relative strength engine powers the TREND portfolios. Our quantitative process measures and compares the price momentum of different ETFs and attempts to invest in ETFs showing the greatest relative strength and upside potential. The TREND series is built on the quantitative process that powers the CMG Opportunistic All Asset Strategy.
The growth of ETFs has provided investors with more precise tools to implement diversified portfolios with lower fees than mutual funds and tax advantages due to their structure. A wide range of ETFs, across many asset classes, allows investors to implement strategies that align with long-term planning goals in a more effective way than ever before. The TREND portfolios utilize ETFs to get exposure to specific market segments helping to capture market upside and mitigate market downside with more precision, flexibility and timely execution.
Traditional investment strategies have followed a passive “buy and hold” philosophy that historically deployed investor capital to only two asset classes: stocks and bonds. At CMG, we believe that is a strategy for the previous millennium. Today, investors face a more challenging investing environment, one that is more global, more dynamic and one that requires a broader, more holistic approach to portfolio construction. The TREND series seeks to capture market upside and limit the market declines through tactical asset allocation that adapts to changing market conditions using a broader set of tools than traditional investment management philosophies.
Diversification is not what it used to be. After the financial crisis, investors demanded real diversification more than ever before. Historically, asset allocation was the primary source of portfolio diversification; when stocks did poorly, bonds played the role of risk diversifier. We have entered a new paradigm where traditional asset allocation approaches may not work as effectively as they have in the past. Specifically, global equity markets are more correlated than in the past and fixed income allocations may not be the “safe” portion of a portfolio when interest rates rise. We believe there is a different way: independent, tactical ETF strategists that specialize in making these types of asset allocation decisions so investors and advisors don’t have to. We believe this is the new world of diversification, one that allows investors to focus on their goals and advisors to focus on serving their clients more effectively.
The TREND series of portfolios is a suite of four investment strategies powered by CMG’s proprietary relative strength process and evolved from the CMG Opportunistic All Asset Strategy, our flagship strategy with a 5+ year GIPS track record. The CMG Tactical Equity Strategy, the CMG Tactical Fixed Income Strategy and the CMG Beta Rotation Strategy give you more tools to build better, more holistic portfolios. To learn more about the TREND suite of strategies, please click on the strategy links below or call us today.