Strategy Description: The CMG Tactical Equity Strategy promotes exposure to global equities in investment portfolios by employing a dynamic approach to investing. Addressing the challenges of aligning portfolio allocations with investment objectives, the strategy seeks to achieve relative outperformance of the MSCI All Country World Index (ACWI) by investing in certain exchange-traded funds (ETFs) while simultaneously employing a risk management approach within the process. The strategy utilizes a rule-based, algorithmic investment process that evaluates a global universe of equity investment options. The strategy dynamically adjusts allocations within the portfolio by utilizing CMG’s proprietary relative strength investment algorithm to capitalize on a wide range of equity opportunities. The portfolio typically holds ten positions at any point in time. The strategy strives to capitalize on opportunities across global equities as outlined below:
- Domestic Equities: Large-cap, Mid-cap, Small-cap, Value, Growth, Sector
- International Developed Equities: Various Developed Market Country-specific
- Emerging Market Equities: Various Emerging Market Country-specific
- Global equity exposure that seeks to capture positive price trends while minimizing risk during periods when 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 tactically to market conditions, lowering exposure and correlation and enhancing traditional portfolio diversification.
Investment Objective: Capital Appreciation
Suggested Portfolio Positioning: Serves as a complement to a client’s equity portfolio.
Suggested Allocation: Typically representing 20-40% of a client’s traditional equity allocation or 12-24% of a client’s total portfolio.
Benchmark: MSCI All Country World Index
Morningstar Peer Group: World Allocation / Tactical Allocation