CMG Family of Funds
The CMG Family of Funds has been developed to provide investors access to tactical, alternative investment solutions. CMG is committed to making tactical investments accessible to all investors. At the core of CMG’s investment DNA is the premise that tactical investment management can achieve a better risk adjusted return than traditional buy-and-hold, stock and bond investments. We believe that active risk management, the ability to trade long, short or move to cash and the incorporation of non-traditional asset classes reduces portfolio risk and enhances return. By blending tactical investments with traditional stock and bond portfolios, we believe you can create a balanced investment approach and, importantly, a balanced emotional experience.
Liquid and Accessible Solutions
The CMG Mauldin Solutions Core Fund seeks to generate capital appreciation. The Fund invests across various asset classes and sectors of the U.S., foreign and emerging equity and fixed income markets. The Fund’s tactical asset allocation approach is managed by the Fund’s sub-advisor, Mauldin Solutions, LLC. The Sub-Adviser seeks to achieve the Fund’s investment objective by investing in U.S., foreign and emerging markets equities of any capitalization during sustained equity market rallies and investing defensively in U.S. Treasury securities and other fixed income securities during periods of weakness in equity markets. To determine equity market strength and the allocation of the Fund’s assets between equities and fixed income, the Sub-Adviser analyzes and evaluates the research data and market reports of multiple research providers selected by the Sub-Adviser. These reports and data include tactical research that focuses on specific asset classes, sectors, investment styles and other market exposures.
The CMG Global Macro Strategy Fund seeks to generate capital appreciation by investing in a global macro strategy based on the proprietary model developed by P/E Investments. The Global Macro strategy is designed to capture returns related to trends in currency exchange rates, equity indices and government bonds. The Global Macro strategy uses multiple factors and quantitative techniques to analyze macroeconomic and financial indicators to determine long and short positions in currencies, equity indices and government bonds that have the potential to generate positive returns over time. Utilizing Bayesian statistical models, the strategy predicts returns and volatilities for currencies, equity indices and government bonds around the world and then optimizes potential investments based on risk/reward trade-offs.
The CMG Long/Short Fund seeks to generate capital appreciation in rising and falling markets using a model-based long/short strategy that invests primarily in exchange-traded funds, inverse exchange-traded funds and other mutual funds that are representative of various U.S. large cap equity indices. The Fund’s investment adviser utilizes a model in pursuing the Fund’s investment objective. The model produces long or short signals by using technical analysis that attempts to gauge the direction of the overall market by determining market breadth. Market breadth is a technique used in technical analysis that seeks to determine overall market direction by analyzing the number of companies/sectors advancing relative to the number declining or which companies/sectors are exhibiting positive vs. negative momentum.
The CMG Tactical All Asset Strategy Fund seeks to generate capital appreciation by investing in a portfolio of ETFs that have exposure to U.S. equity indices and sectors, international equities, fixed income, and commodities. The strategy utilizes a model-driven investment process that evaluates a global universe of ETFs in determining the Fund’s portfolio allocation. The Advisor’s quantitative model ranks each potential ETF investment option based on the price data using proprietary relative strength and momentum indicators. ETFs with the highest rankings are selected for investment, periodically re-evaluated and sold when they are no longer considered the highest rated fund in the Advisor’s proprietary model.
The CMG Tactical Bond Fund seeks to generate total returns over a complete market cycle through capital appreciation and income. The Fund invests in high yield bond markets using a proprietary quantitative investment model that looks at price, volume, yield spreads and default rates to identify trends in U.S. high yield bonds. The investment model seeks to identify opportunities where the short-term and intermediate-term direction of the U.S. high yield bond market can be predicted with high probability. The Advisor utilizes its proprietary risk management “Asset Allocation Program” in managing the Fund. In down trending price environments, the Fund can also invest in put and call options as a means to protect (hedge) the portfolio’s high yield bond exposure and/or move its high yield bond exposure temporarily to cash or short-term cash equivalents in an attempt to mitigate market declines as well as lower portfolio volatility.
There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.
Seeking Portfolio Diversification with Low Correlation
Risk exists in all aspects of portfolio management; however, we believe it can be lowered by blending an allocation of non-correlating tactical trading strategies into your portfolio. We believe tactical investment solutions are an important part of your overall investment portfolio allocation.
Definition of terms:
Long: Buying a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.
Short: Any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume they will be able to buy the stock at a lower amount that the price at which they sold short.
Futures Contracts: A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future.
Hedge: an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.
Derivative: A security whose price is dependent upon or derived from one or more underlying assets. The value is determined by fluctuations in the underlying asset.