Risk Profile: Moderate Growth
The CMG Opportunistic All Asset Strategy is a rules-based, tactical investment strategy that analyzes a global universe of exchange traded funds (ETFs) or mutual funds to determine an optimal portfolio allocation. With an unconstrained tactical mandate, the strategy seeks to generate positive returns over multiple market cycles.
Our portfolio construction process utilizes a proprietary relative strength ranking system to capitalize on opportunities across US equity, International Equity, Fixed Income and Commodity markets.
The portfolio is comprised of up to 11 positions and is designed to serve as an active, risk managed solution versus traditional buy-and-hold investing.
How it works
The CMG Opportunistic All Asset Strategy has a multi-step process for constructing a portfolio:
- Global Investment Universe – Our potential investment universe is comprised of a broad array of ETFs across the following global asset classes:
US Equities: Large/Mid/Small Cap, Value, and Growth
Sector Specific: Financials, Real Estate, Healthcare, Technology and more…
International Equities: Developed International, Emerging Markets, and Country Specific
Fixed Income: Government Bonds, Municipal Bonds, Investment Grade Bonds, High Yield Bonds, and Emerging Market Bonds
Commodities: Precious Metals, Natural Resources, and MLPs
- “Sleeve” Diversification– The ETF universe is distributed across 11 independent portfolio sleeves with each selecting a single ETF from a diversified combination of asset classes. Unique measurement and investment periods are assigned to each sleeve. Diversification within each sleeve is crucial in order to navigate various market conditions. Each sleeve is comprised of ETFs that offer a broad range of opportunities to participate in upward market movements such as small-, mid- and large-cap ETFs as well as sector ETFs such as biotech, financials, and technology. Additionally, each sleeve will include defensive choices such as government bonds and cash that offer viable investment options in declining equity markets.
- Relative Strength Score – CMG’s proprietary relative strength scoring system ranks each ETF on a daily basis allocating to those showing the highest probabilities for success. ETFs that exhibit strong upward price trends with lower volatility relative to other assets will rank highest. Once selected, positions are re-evaluated after an initial investment period to confirm continued market leadership.
- Risk Management– The strategy incorporates risk management throughout the portfolio construction process. Primarily, risk management is built into the diversification of investment choices within each sleeve and the ranking process to identify ETFs with the highest relative strength scores. Portfolio allocations are flexible and unconstrained with maximum exposures ranging from 100% equity to 100% fixed income/cash. No inverse or leveraged ETFs are used.
** Please note: Distributions from the strategy may be subject to short-term mutual fund redemption fees assessed by the fund companies.
Portfolio Diversification and Correlation Analysis: When diversifying your portfolio, it is important to understand how each strategy correlates to your other positions. We believe the key to long-term success is how you weave a number of low-correlating strategies into your portfolio and manage those allocations over time.
Past performance is no guarantee of future returns.
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Call us at (800) 891-9092. Or go to our contact form.