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Inside of office building

Fully Invested Strategy

Why Fully Invested?

Fully Invested Strategies remain invested throughout market cycles with the goal of achieving outperformance and long-term superior growth. Using an active management approach, fully invested strategies continuously strive to keep your portfolio in alignment by investing in market leadership, consistent with the specific strategy, and adjusting based on changes in the market environment.

Depending upon the specific strategy, our Fully Invested Strategies overweight investments that are believed to be poised for strong performance. On the other hand, by underweighting investments that appear overpriced or have the potential to trail the leadership, the portfolio aims to limit some downside risk.

Traditional Asset Allocation
Not Recommended

Typical models often just allocate with a mandated weighting across equity classes

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Small Cap
Mid Cap
Large Cap
Managing to Leadership
Churchill Recommended

This more tactical approach moves allocations relative to market cycles

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Health Care
Consumer Discretionary

Using A Fully Invested Approach

Keeping tabs on the market can be difficult. Our Fully Invested Strategies seek to remove the worry for investors by employing actively managed and transparent tactics. They aim to reduce volatility and increase return, depending upon where we are in the market cycle. Often, the best outcomes for investors are met when a few or more strategies are considered, along with a Tactical Investment component.

While each has a unique objective, whether that be growth, income, or value, these strategies can also include defensive tactics such as diversification, defensive positions, and stop losses.

Typical Market Cycle

Tactical & Fully Invested strategies aim to achieve superior returns.
Tactical Strategies aim to reduce equity exposure because of increased market volatility, while Fully Invested Strategies aim to achieve superior performance.
Tactical Strategies aim to protect capital, while Fully Invested Strategies aim to outperform the benchmark and remain exposed to the market.
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Our Fully Invested Strategies

Churchill Management Group offers four fully invested strategies: Equity Dividend Income, ETF Sector Rotation, Equity Growth and Value, and Equity Growth Opportunity.

Equity Dividend Income
To combine income from equities with their potential for growth.

The Equity Dividend Income strategy is designed for Clients seeking to combine income from equities with their potential for growth. The strategy seeks to put together a fully invested equity portfolio with a well diversified group of high quality stocks paying a dividend higher than the average found in the S&P 500. The strategy looks to include high quality companies that have a high probability of continually growing dividends that are paid to shareholders. Earnings stability and future earnings prospects are reviewed for dividend payment stability and potential for long-term capital appreciation.

In addition to strong fundamentals, the portfolio also wants to hold those dividend paying stocks that are more technically favorable with positive relative strength as compared to other dividend paying stocks.

ETF Sector Rotation
ETF Sector Rotation’s philosophy is that certain sectors in the market tend to out-perform and under-perform for prolonged periods of time. The Investment Management Team believes we can achieve superior returns by aiming to invest in the out-performing and often under-weighted sectors of the market.

ETF Sector Rotation may initially purchase an exchange traded fund (ETF) that is comprised of all equities on the S&P 500. Once Churchill has identified specific sectors in the S&P 500 that it believes have the potential to outperform the S&P 500, Churchill may sell a portion of or all of this ETF to overweight the account in those sectors by purchasing sector specific ETFs. These sector ETFs may hold a larger number of equities than those in the Standard & Poor’s 500 Index, including equities not within the Index. The Investment Management Team uses a variety of technical and fundamental indicators to identify the sectors that Churchill believes will exhibit the potential for significant price appreciation versus the overall market. While ETF Sector Rotation is typically fully invested and subject to market risk, certain sectors will be employed as defensive positions with the aim of outperforming the index in down markets.

Based on a Client’s needs, individual goals, and chosen allocation, Churchill may also invest a portion of the account in various stylistic ETFs (i.e. large cap, growth) and International ETFs (Emerging and International Markets) consistent with Churchill’s analysis of the market. In smaller accounts, CMG may choose to solely purchase and stay invested in ETFs not normally purchased in Sector Rotation that invest in macro market indices despite client’s strategy selection until such time as the account grows to a level making managing in the selected strategy appropriate.

Equity Growth & Value
Identify and hold stocks with strong technical characteristics that may outperform the S&P 500.

Individual sectors in the S&P 500 tend to outperform and underperform the S&P 500 for extended periods of time. The strategy identifies stocks within these sectors with strong technical characteristics that may outperform the S&P 500. By purchasing these stocks across various sectors, the strategy aims to reduce risk by providing an appropriate level of diversification.

It seeks to provide long-term growth and value by successfully identifying stock trends that can be measured in years. By identifying these trends, it aims to hold winning stocks for at least a one-year period, while offsetting short-term gains with short-term losses, to minimize the tax impact.

Equity Growth Opportunity
Generate excess returns over the long-term by investing in both growth and value equities.

Equity Growth Opportunity allows investors to take advantage of both growth and value opportunities in order to seek the best overall return for their portfolio.

Growth investing focuses on companies during their growth stages where significant revenue and/or earnings increases are realized. Value investing takes advantage of companies that have been out of favor, are in special situation, or may have been oversold and are positioned for an up-cycle that can lead to results that are above expectations.

Equity Growth Opportunity employs fundamental, technical, and sentiment indicators in order to identify both the growth and value opportunities available, while considering the entire universe of domestically traded equities available.

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