Risk Profile: Moderate Growth
Strategy Description: The CMG Opportunistic All Asset Strategy is a rules-based, tactical investment strategy that analyzes a global universe of exchange-traded funds (ETFs) to determine an optimal portfolio allocation. The strategy seeks growth opportunities with the ability to defensively allocate to non-equity (i.e., fixed income and/or commodities) asset classes and cash.
The investment process analyzes the individual price trends of more than 400 ETFs, seeking to capitalize on opportunities across U.S. equity, international equity, fixed income and commodity markets. The ETFs are individually ranked based on their relative strength price trends allocating to a maximum of 10 ETFs.
The strategy is designed to serve as an active, risk-managed solution to complement traditional buy-and-hold investing.
The CMG Opportunistic All Asset Strategy has a multi-step portfolio construction process:
- 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
- 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.
- 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 will rank highest. Once selected, positions are re-evaluated after an initial holding period to confirm persistent relative strength.
- Portfolio Allocation: Allocations are flexible and unconstrained with maximum exposures ranging from 100% equity to 100% fixed income/cash.
- 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.
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: Morningstar Moderate Target Risk
Morningstar Peer Group: Tactical Allocation
*No inverse or leveraged ETFs are used.
Past performance is no guarantee of future returns.
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