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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.
The CMG Absolute Return Strategies Fund is a multi-manager absolute return strategy mutual fund. The Fund’s investment objective is to generate absolute returns by seeking capital appreciation during bull and bear market cycles (positive and negative market environments). While the majority of mutual funds are dependent upon a rising market cycle, absolute return strategies have the unique objective of generating positive returns in all market environments. Not all investment strategies are successful all of the time. That’s why we believe in allocating among a diversified blend of non-correlating strategies that offer the potential for attractive investment returns – all in one multi-alternative mutual fund.
The CMG Tactical Equity Strategy Fund is a single strategy long/short equity strategy fund that seeks to generate capital appreciation by investing directionally, long or short, using a proprietary quantitative investment model designed to identify long-, intermediate- and short-term trends in the S&P 500 Index. Based on the analysis of S&P 500 Index data across these multiple time frames, the strategy attempts to generate high probability trades with a high degree of selectivity, actively trading S&P 500 Index futures contracts.
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.
S&P 500 Index: An unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large-cap stocks. You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
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.
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 the Fund's investment objective, risks, charges, and expenses carefully before investing.
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. In general, the price of a fixed income security falls when interest rates rise.
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.
Lower-quality bonds, known as "high yield" or "junk" bonds, present a greater risk than bonds of higher quality, including an increased risk of default. 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.
This and other information about the CMG Absolute Return Strategies FundTM and the CMG Tactical Equity Strategy FundTM 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 Absolute Return Strategies FundTM and CMG Tactical Equity Strategy FundTM are distributed by Northern Lights Distributors, LLC, Member FINRA. CMG Capital Management Group, Inc. is not affiliated with Northern Lights Distributors, Inc.
0454-NLD-4/23/2012
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