Jefferson National Partners with CMG Capital Management Group to Launch Next New Suite of Tactically Managed Model PortfoliosLeading Tax-Advantaged Investing Solution Continues Expanding Selection of Tactical Strategies to Help RIAs and Fee-Based Advisors Manage Volatile Market
Louisville, KY—February 20, 2013— Jefferson National, a recognized innovator of tax-advantaged investing solutions for Registered Investment Advisors (RIAs) and fee-based advisors, has launched three new tactically managed model portfolios with CMG Capital Management Group, an investment advisory firm specializing in tactical management for more than 20 years. Just weeks after adding model portfolios from award-winning Braver Capital Management, Jefferson National continues to lead the industry in meeting advisors' increasing demand to mitigate risk and manage volatility with tactical strategies and alternative investments that are optimized for greater after-tax returns. Jefferson National's Monument Advisor, the first flat-fee variable annuity,1 combines the power of tax deferral with more than 390 underlying funds, including 70 alternative investment options - the most in the industry.2
"Advisors tell us they need tools to build more resilient portfolios, and they recognize the importance of using tactical strategies to manage risk and add more ballast," said David Lau, Chief Operating Officer, Jefferson National. "By partnering with an industry leader like CMG to expand the selection of tactically managed portfolios on Jefferson National's tax-advantaged investing solution, advisors are able to add a proven tactical manager to a portfolio with the click of a button. Further, employing tactical management within our flat-fee VA will improve the inherent tax-inefficiencies of these high-turnover strategies and help enhance performance for clients."
Financial advisors continue grappling with record drops and spikes in all leading indexes. During the first week of February, the Dow reached 14,000 for the first time since 2007â€”and then three days later suffered the worst decline of the year, falling nearly 1%. The threat of ongoing volatility is cited as a primary concern by more than 67% of RIAs and fee-based advisors recently surveyed by Jefferson National.3 Surveys also indicate that a majority of advisors see tactical management and alternative investments as key to navigating the current market.4
Tactically managed portfolios have high turnover, which can produce short-term capital gains, and the subsequent tax burden can erode performance. In fact, Morningstar estimates that over the 74-year period ending in 2010, investors who did not manage investments in a tax-sensitive manner gave up between 100 and 200 basis points of their annual returns to taxes. Jefferson National offers a solution to this problem by wrapping tactically managed models in tax deferral. Research has shown that a low-cost tax-deferred vehicle can improve the performance potential of tactical strategies and other tax-inefficient investments without increasing risk.5
"In today's volatile market, advisors would do well to emulate the strategies of Yale, Harvard and other leading institutional investors by adding the diverse, non-correlating return streams that tactical management can provide," said Steve Blumenthal, Founder and Chief Executive Officer, CMG Capital Management Group, Inc. "Instead of the traditional 60/40 stock/bond allocation, adding a tactical approach to a portion of the portfolio can help increase diversification, add greater risk management and the potential to enhance returns in the long run. And to improve the tax-efficiency of tactical strategies, Jefferson National's tax-advantaged investing solution has proven to be the right fit for our firm, with the industry's most investment options and flat-fee pricing."
Models available to the RIAs and fee-based advisors working with Jefferson National include CMG System Research Treasury Bond Program, CMG Opportunistic All Asset Strategy and CMG Scotia Partners Growth S&P Plus Program.6 These successful tactical strategies aim to provide what CMG refers to as "enhanced modern portfolio theory", through the use of quantitative rules-based trading strategies, incorporating various technical, fundamental and mathematical indicators, with a clearly defined buy and sell discipline. CMG has more than two decades of proven performance managing assets for their own clients as well as other advisors.7
1Jefferson National's Monument Advisor has a $20 monthly flat insurance fee. Additional fees ranging from $19.99-$49.99 will be assessed for investors wishing to purchase shares of ultra low-cost funds. See the prospectus for details. 2Morningstar data as of 12/31/12. 3RIAs and Fee-Based Advisors Fiscal Cliff Survey, published by Jefferson National, December 2012. 4RIAs and Fee-Based Advisors Alternative Investments and Tactical Management Survey, published by Jefferson National, September 2011. 5The Tax-Efficient Frontier: Improving the Efficient Frontier with the Power of Tax Deferral, by David Lau, published by Jefferson National, June 2010. 6Model Portfolios are investments subject to market fluctuation and risk, including possible loss of principal. 7Past performance is no guarantee of future results.
About CMG Capital Management Group
CMG Capital Management Group, Inc. is an SEC Registered Investment Advisor located in King of Prussia, Pennsylvania. Founded in 1992, the firm has more than 20 years managing assets for retail and institutional clients as well as other advisors. To learn more, please visit: http://www.cmgwealth.com/