CMG Mutual Funds

CMG Mutual Funds > Mutual Funds > CMG Tactical All Asset Strategy Fund

CMG Tactical All Asset Strategy Fund

Print Friendly, PDF & Email

Fund Objective:

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.

Strategy Description:

The CMG Tactical All Asset 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 of each ETF using proprietary relative strength and momentum indicators.  ETFs with the highest rankings are selected for investment and are periodically re-evaluated.  The advisor seeks to adjust allocations within the Fund’s portfolio to capitalize on opportunities across global equity, fixed income, commodity, commodity-related and alternative markets.  An ETF is sold by the Advisor when it is no longer considered to be the highest rated fund by the Advisor’s model.

The Advisor utilizes the tactical asset allocation strategy to adjust allocations in the portfolio to anticipate changing opportunities in various asset classes including:

Domestic Equities International Equities Fixed Income Other
Large Cap International Government Bonds Commodities
Mid Cap Emerging Market Municipal Bonds REITs
Small Cap Country specific Investment Grade Corporate Bonds MLPs
Value High Yield Bonds Currencies
Growth Emerging Market Bonds
Sector specific

The Fund seeks to manage risk through its asset allocation and defined buy and sell process based on proprietary relative strength and momentum indicators.  The fund will hold a maximum of 11 ETFs seeking to identify asset classes with the highest probabilities for continued positive trends. With an unconstrained tactical mandate, the strategy seeks to generate positive returns over multiple market cycles.

There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.

Ticker Information:

Fund Name:
CMG Tactical All Asset Strategy FundTM Class A Shares
Inception Date:
May 2, 2016
Ticker Symbol:
CMGQX
CUSIP:
66537X159
Sales Load:
5.75%1
Minimum Investment:
$2,500 – $5,000 (depending on custodial platform)
Minimum Subsequent:
$1,000
Objective:
Capital Appreciation
Fund Classification:
Macro Trading
Investment Advisor:
CMG Capital Management Group, Inc.
Fund Name:
CMG Tactical All Asset Strategy FundTM Class I Shares
Inception Date:
May 2, 2016
Ticker Symbol:
CMGHX
CUSIP:
66537X142
Sales Load:
None
Minimum Investment:
$15,0002
Minimum Subsequent:
$1,000
Objective:
Capital Appreciation
Fund Classification:
Macro Trading
Investment Advisor:
CMG Capital Management Group, Inc.

¹ Load waivable. Please review prospectus for qualification. Other fees and expenses do apply to investments in the Fund.

² The adviser may waive the Class I shares minimum account requirements if the adviser believes that the aggregated accounts of a financial intermediary will meet the minimum initial investment requirement. Lower minimum initial and additional investments may also be applicable in certain other circumstances, including purchases by certain tax deferred retirement programs.

Definition of terms:

Downside Risk: An estimation of a security’s potential to suffer a decline in price if the market conditions turn negative.

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.

Long: Buying a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.

Volatility:  A statistical measure of the dispersion of returns for a given security or market index.  Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index.  Commonly, the higher the volatility, the riskier the security.

Mutual Funds involve risk including possible loss of principal. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. An investor should consider each individual Fund's investment objective, risks, charges, and expenses carefully before investing.

The Fund may invest more than 5% of its assets in the securities of one or more issuers and the resulting performance may be more sensitive to any single economic, business, political or regulatory occurrence than that of a diversified investment company. Equity prices can fall rapidly. Additionally, smaller companies may trade less frequently and in smaller volumes, experience higher failure rates and disproportionate price fluctuations.

The Fund's use of derivatives and futures contracts involves hedging, leverage risk and tracking risk. Leverage through futures can magnify the Fund's gains or losses. The Fund may invest in short futures positions which could prevent the Fund from participating in market gains. Derivative instruments may be used to hedge against losses, however these positions can potentially offset gains. The Fund may be required to segregates assets or enter into offsetting positions in connections with investments in derivatives but these may not limit exposure to loss.

The Fund's investment in foreign securities may be affected by changes in exchange control regulations, application of foreign tax laws, changes in governmental administration, economic, or monetary policy, currency fluctuations relative to the U.S. dollar and changed circumstances between nations. In addition to these risks, countries with emerging markets may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues

Changes in foreign currency exchange rates will affect the value of what the Fund owns and the price of the Fund's shares. Generally, when the U.S. dollar rises in value against a foreign currency, an investment in that country loses value because that currency is worth fewer U.S. dollars. Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

Foreign investing involves risks not typically associated with U.S. investments, including adverse fluctuations in foreign currency values, adverse political, social and economic developments, less liquidity, greater volatility, less developed or less efficient trading markets, political instability and differing auditing and legal standards. Investments in gold-related securities, such as ETFs and forward and futures contracts, may subject the Fund to greater volatility than investments in traditional securities.

When the Fund invests in fixed income, the value of your investment will fluctuate with changes in interest rates. Lower-quality bonds, known as "high yield" or "junk" bonds, present a greater risk than bonds of higher quality, including an increase of default, maturity length, prepayment, and credit risk. The use of leverage, such as borrowing money to purchase securities, will magnify the Fund's gains or losses. Non-diversification risk, as the Funds are more vulnerable to events affecting a single issuer. Increased portfolio turnover may result in higher brokerage commissions, dealer mark-ups and other transaction costs and may result in taxable capital gains. The Fund's investments in a sector bear the risk that securities within the same group of industries will decline in price due to sector-specific market or economic developments. The Fund (and the Underlying Funds) may engage in short selling activities, which are more risky than "long" positions (purchases) because the cost of the replacement security or instrument is unknown. Debit issuers may not make interest and principal payments on securities held by the Fund, resulting in losses. Mutual funds, closed-end funds and ETFs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in other investment companies and may be higher than other mutual funds that invest directly in stocks and bonds. For a Fund using a sub-advisor, the sub-advisor’s methodology may produce incorrect judgements about the attractiveness, relative value and potential appreciation of an investment.

This and other information about the CMG Family of Funds is contained in each fund's prospectus, which can be obtained by calling 1-866-CMG-9456 (1-866-264-9456). Please read the prospectus carefully before investing. The CMG Mauldin Core Fund™, the CMG Tactical All Asset Strategy Fund™, and the CMG Tactical Bond Fund™ are distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. CMG Capital Management Group, Inc. is not affiliated with Northern Lights Distributors, Inc.

3647-NLD-7/10/2018