CMG

Wealth through ingenuity

Linkedin
CMG > Our products > TREND Series of Portfolios > CMG Tactical All Asset Strategy

CMG Tactical All Asset Strategy

Print Friendly, PDF & Email

Risk Profile: Moderate Growth

Strategy Description:  The CMG Tactical All Asset Strategy is a rules-based investment trading strategy that analyzes a global universe of exchange-traded funds (ETFs) or mutual funds to determine an optimal allocation.  The strategy seeks growth opportunities with the ability to defensively position in fixed income asset classes and cash.  The investment process analyzes the individual price trends of more than 400 ETF’s seeking to capitalize on opportunities across the U.S. equity, International Equity, Fixed Income, and Commodity markets.  The ETFs are analyzed based on price momentum indicators like relative strength, trend following and mean reversion.  The portfolio allocates to 10 ETF’s in the portfolio but fewer than 10 positions may be held if cash is demonstrating the strongest relative strength.  The strategy may be appropriate for a portion of an overall investment portfolio and is designed to serve as an active, risk-managed solution.

The CMG Tactical All Asset Strategy has a multi-step portfolio construction process:

  1. Global Investment Universe– The investment process considers a broad universe comprised of more than 400 ETFs across the following global asset classes:
    • U.S. equities: large/mid/small cap, value, and growth, factor-based and more
    • Sector-specific: financials, real estate, healthcare, technology, consumer staples, biotechnology, utilities, industrials and more
    • International equities: developed international, emerging markets and country-specific
    • Fixed income: government bonds, municipal bonds, investment-grade bonds, high yield bonds, convertible bonds, international developed and emerging market bonds
    • Commodities: precious metals, natural resources, and MLPs
  1. Assets in Uptrend– The investment process identifies ETFs that are in defined uptrends. Only ETFs in a defined uptrend will be eligible for selection into the portfolio.
  2. Relative Strength Score –The investment process analyzes short-, intermediate- and long-term time frames to rank ETFs with CMG’s proprietary relative strength scoring system. ETFs that exhibit strong upward price trends with lower volatility rank highest. Once selected, positions are re-evaluated after an initial holding period to confirm persistent relative strength.
  3. Portfolio Allocation: Allocations are flexible and unconstrained with maximum asset class exposures ranging from 100% equity to 100% fixed income/cash.

Benefits: 

  • Global market exposure that seeks to capture positive price trends while minimizing risk during periods of market decline.
  • Flexible, active asset allocation adapts the portfolio to changing risks and market conditions.
  • CMG’s TREND engine deploys a quantitative tactical process that adjusts to market conditions, and when prudent, lowering exposure and correlation to enhance traditional portfolio diversification.

**The CMG Tactical All Asset Strategy was previously named the CMG Opportunistic All Asset Strategy

Investment Objective:  Capital Appreciation / Absolute Return

Suggested Portfolio Positioning:  Serves as a core holding in an overall portfolio

Suggested Allocation:  Typically representing 20-40% 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.

Important disclosure information: This website, and above links, contains information that has multiple authors and will offer multiple opinions on topics of interest. Any original written material on this website, either authored by CMG staff or external authors, are strictly the opinion of the author and not of CMG. If you find material that is inaccurate or defaming in any way, please contact us.

No Solicitation or Investment Advice: The material contained on this website is for informational purposes only and CMG is not soliciting any action based upon such material. The material is not to be construed as an offer or a recommendation to buy or sell a security nor is it to be construed as investment advice. Additionally, the material accessible through this website does not constitute a representation that the investments described herein are suitable or appropriate for any person.
Various links on this site will allow you to leave the CMG Web site. The linked sites are not under the control of CMG, and CMG is not responsible for the contents of any linked site or any link contained in a linked site, or any changes or updates to such sites. CMG is not responsible for any correspondence via email or any other medium, email list servers, webcasting or any other form of transmission received from any linked site. Links to external sources do not imply any official endorsement by CMG or the opinions, ideas or information contained therein, nor guarantees the validity, completeness or utility of the information provided. Reference herein to any products, services, processes, hypertext links to third parties or other information does not necessarily constitute or imply endorsement, sponsorship or recommendation. CMG shall not be held liable for improper or incorrect use of data or information contained in any electronic publications. Data, information, and related graphics contained in electronic publications are not legal documents and are not intended to be used as such. CMG gives no warranty, express or implied, as to the accuracy, reliability, utility or completeness of any information contained in any electronic document.