Risk Profile: Conservative Growth and Income
Strategy Description: The CMG Tactical Fixed Income Strategy enhances the foundational role of bonds in investment portfolios by employing a disciplined trend following investment approach to fixed income investing. The strategy is a rules-based investment process that evaluates a universe of nine fixed income investment options. The following fixed income categories are considered: U.S. Treasury Bills, Investment Grade Corporate Bonds, U.S. Treasury Bonds, Convertible Bonds, High Yield Bonds, Emerging Market Bonds, International Sovereign Bonds, Municipal Bonds and U.S. Treasury Inflation Protected Securities. The process compares daily prices of each constituent and selects the top two fixed income ETFs demonstrating the strongest prices trends. The process has a flexible approach to fixed income investing that seeks to maximize income and minimize the risk of loss. The unconstrained process attempts to capitalize on a wider opportunity set than traditional buy-and-hold core fixed income approaches and has the ability to position defensively in short-term Treasury Bills.
- Reduce interest rate and duration exposure of your core fixed income portfolio to minimize volatility.
- An unconstrained portfolio that has the flexibility to tactically allocate across the global fixed income investments so you don’t have to.
Investment Objective: Capital preservation and risk reduction through tactical asset allocation. The strategy’s secondary objective is to generate income.
Suggested Portfolio Positioning: Serves as a complement to a client’s fixed income portfolio.
Suggested Allocation: Typically representing 10-20% of a client’s traditional fixed income allocation or 6-12% of a client’s total portfolio.
Benchmark: Barclays Global Aggregate Bond Index
Morningstar Peer Group: Nontraditional Bond
Past performance is no guarantee of future returns.
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