CMG Managed High Yield Bond Program. 2015 CMG Capital Management Group, Inc.



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CMG Managed High Yield Bond Program

About CMG CMG is a Registered Investment Advisor located in King of Prussia, Pennsylvania founded in 1992 by Stephen Blumenthal. Since our inception, CMG has embraced Uncommon Solutions the application of tactical investments as part of a progressive diversification strategy Enhanced Modern Portfolio Theory. We believe that incorporating tactical strategies into your portfolio will create a deeper balance by helping to reduce risk and enhance return for long-term investment success. Resources to illustrate the necessity of tactical strategies as an essential component in any portfolio.

CMG s Tactical Approach CMG s strategies offer the following benefits to client portfolios: Risk Management: Flexibility to adapt to changing market conditions by moving into defensive asset classes/cash to risk mitigate the portfolio. Systematic: Rules based, disciplined approach designed to minimize the emotional aspect of investing. Daily Liquidity & Full Transparency: Access to portfolio solutions that were previously available only to institutions and high net worth individuals.

CMG Managed High Yield Bond Program Risk Profile: Conservative/Moderate Growth and Income Strategy Summary: Trades high yield bond mutual funds using a proprietary tactical trading strategy. Identifies opportunities where the intermediate-term direction of the US high yield market can be predicted with high probability. Looks at daily data such as price, volume, yield spreads and default rates to identify trend. A disciplined risk management focus with a 20 year history.

The Situation: Challenges Ahead More Issuance with Lower Ratings: o 2006-2007 corporations issued $700 billion in debt with 28% B Rated o 2013-2014 corporations issued $1.1 trillion in debt with 71% B Rated Huge Maturity Cycle Coming over Next 5 Years Rising Interest Rates

The Advantages of High Yield Bonds Equity like returns over the long term with lower volatility than stocks. High Yield as an asset class has historically exhibited less sensitivity to interest rate movements. Higher coupon rates and capital appreciation can potentially provide conservative growth and income.

Our Process A disciplined rules-based tactical trading strategy designed to minimize event risk, economic risk and interest-rate risk. The strategy looks at price movement and current yields to measure and manage risk. On buy signals, we allocate 100% to high yield bond funds. On sell signals, we move 100% to cash (risk protection). CMG Managed HY trades mutual funds to broaden diversification and minimize individual credit risks. 4-5 round trip trades per year. Average hold is approximately 60 days.

Our Strategy Since 2000 CMG Managed HY Bond PHIYX PIMCO HY Bond Fund Barclays Aggregate Bond Index S&P 500 TR See disclosures in this presentation.

Why CMG Managed HY? 20+ year track record of success with same portfolio manager. Participated in 2/3 of upside while avoiding 2/3 of downside vs. HY benchmark. Preserve capital during market declines by moving 100% to cash. Accessible through liquid Separate Account or Mutual Fund.

Disclosure CMG Managed High Yield Bond Program Presentation Disclosure Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by CMG Capital Management Group, Inc. (or any of its related entities-together "CMG") will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. No portion of the content should be construed as an offer or solicitation for the purchase or sale of any security. References to specific securities, investment programs or funds are for illustrative purposes only and are not intended to be, and should not be interpreted as recommendations to purchase or sell such securities. Certain portions of the content may contain a discussion of, and/or provide access to, opinions and/or recommendations of CMG (and those of other investment and non-investment professionals) as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current recommendations or opinions. Moreover, you should not assume that any discussion or information contained herein serves as the receipt of, or as a substitute for, personalized investment advice from CMG or the professional advisors of your choosing. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisors of his/her choosing. CMG is neither a law firm nor a certified public accounting firm and no portion of the presentation content should be construed as legal or accounting advice. This presentation does not discuss, directly or indirectly, the amount of the profits or losses, realized or unrealized, by any CMG client from any specific funds or securities. Please note: In the event that CMG references performance results for an actual CMG portfolio, the results are reported net of advisory fees and inclusive of dividends. The performance referenced is that as determined and/or provided directly by the referenced funds and/or publishers, have not been independently verified, and do not reflect the performance of any specific CMG client. CMG clients may have experienced materially different performance based upon various factors during the corresponding time periods. CMG Managed High Yield Bond Program Performance - Performance from October 1, 1993 through September 30, 1999 was attested to by Deloitte & Touche LLP and reflects the performance of one continuously managed account. A copy of attestation results is available from CMG upon request. Performance results from October 1999 to December 2003 reflect performance on a continuously managed account held at Trust Company of America ( TCA ). From January 2004 to the present, performance results are based off a blend of accounts managed by CMG and held at TCA. Note: from March 2004 to Sept. 2005 CMG created and managed the CMG High Income Bond Plus Fund. Performance of the fund is reflected in the blended accounts held at TCA. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance will be profitable, or equal to any corresponding historical index. (i.e. S&P 500 Total Return or Barclays High Yield Bond Index) is also disclosed. For example, the S&P 500 Composite Total Return Index (the S&P ) is a market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. Standard & Poor s chooses the member companies for the S&P based on market size, liquidity, and industry group representation. Included are the common stocks of industrial, financial, utility, and transportation companies. The historical performance results of the S&P (and those of or all indices) and the model results do not reflect the deduction of transaction and custodial charges, nor the deduction of an investment management fee, the incurrence of which would have the effect of decreasing indicated historical performance results. For example, the deduction combined annual advisory and transaction fees of 1.00% over a 10 year period would decrease a 10% gross return to an 8.9% net return. The S&P is not an index into which an investor can directly invest. The historical S&P performance results (and those of all other indices) are provided exclusively for comparison purposes only, so as to provide general comparative information to assist an individual in determining whether the performance of a specific portfolio or model meets, or continues to meet, his/her investment objective(s). A corresponding description of the other comparative indices, are available from CMG upon request. It should not be assumed that any CMG holdings will correspond directly to any such comparative index. The model and indices performance results do not reflect the impact of taxes. CMG portfolios may be more or less volatile than the reflective indices and/or models. A copy of CMG's current written disclosure statement discussing advisory services and fees is available upon request or via CMG's internet web site at (http://www.cmgwealth.com/disclosures/advs). CMG Global Equity Fund TM, CMG Tactical Bond Fund TM and CMG Tactical Futures Strategy Fund TM : Mutual Funds involve risk including possible loss of principal. An investor should consider the Fund s investment objective, risks, charges, and expenses carefully before investing. This and other information about the CMG Global Equity Fund TM, the CMG Tactical Bond Fund TM and the CMG Tactical Futures Strategy Fund TM is contained in each Fund s prospectus, which can be obtained by calling 1-866-CMG-9456. Please read the prospectus carefully before investing. The CMG Global Equity Fund TM, the CMG Tactical Bond Fund TM and the CMG Tactical Futures Strategy Fund TM are distributed by Northern Lights Distributors, LLC, Member FINRA.NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. In the event that there has been a change in an individual's investment objective or financial situation, he/she is encouraged to consult with his/her investment professionals. PAST PERFORMANCE MAY NOT BE INDICATIVE OF FUTURE RESULTS