CMG Capital Management launched its third alternative mutual fund on the final business day of April: the CMG Tactical All Asset Strategy Fund (MUTF:CMGQX). The new fund uses a model-driven investment process that evaluates a global universe of ETFs across multiple asset classes. The model ranks each potential ETF with proprietary relative strength and momentum indicators, selects the best investments for the portfolio by those measures, and rebalances periodically.
The fund’s equity investments may include ETFs that hold U.S., foreign developed-market, and emerging-market stocks of any market capitalization, and from any sector or industry. Its fixed-income ETFs may hold securities of any maturity from issuers of any country, including government and corporate bonds of any credit rating. Alternative ETFs may provide exposure to currencies, REITs, and MLPs, among other investments.
CMG CEO Steven Blumenthal, company president PJ Grzywacz, and Head of Due Diligence and Investment Research Michael Hee are listed as portfolio managers in the fund’s prospectus.
The new CMG Tactical All Asset Strategy Fund is available in two share classes: A (MUTF:CMGQX) and I (MUTF:CMGHX), with respective net-expense ratios of 1.65% and 1.40%. Class-A shares have an initial minimum investment of $5,000. The initial minimum for Class-I shares is $15,000.
Other Alternative CMG Funds
CMG’s other alternative mutual funds include the CMG Global Macro Strategy Fund (MUTF:PEGAX) and the CMG Long/Short Fund (MUTF:SCOTX). For the first four months of 2016, PEGAX (which was launched in December 2015) returned -11.11%, ranking in the bottom 2% of funds in its category. For the same period, SCOTX returned -3.78%, ranking in the bottom quarter of its peers. On a three-year basis, SCOTX is down 13.05% through the end of April, placing it in the bottom 3% of all long/short mutual funds.
Messrs. Grzywacz and Hee are listed as the portfolio managers for PEGAX. Mr. Blumenthal is listed as the portfolio manager for SCOTX.
Past performance does not necessarily predict future results.
Jason Seagraves contributed to this article.