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The CMG Managed High Yield Bond Program ("Managed Bond") trades high yield mutual funds using a proprietary quantitative/qualitative buy/sell model. The model identifies opportunities where the short-term and intermediate-term direction of the U.S. high yield market can be predicted with high probability.
The theory behind the investment model is as follows:
- The model looks at daily data such as price, volume, yield spreads and default rates to generate “buy”, “sell” and “hold” signals
- On “buy” signals, 100% of the portfolio is invested in US high yield bond mutual funds
- On “sell” signals money is exchanged from US high yield bond mutual funds to money market mutual funds
The Program trades infrequently, averaging 4 round trip trades per year. All gains will be short-term.
Past performance is no guarantee of future returns.
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