U.S. equity markets ended with lagging performance last week. The NASDAQ Composite lost 0.66%, the S&P 500 was down 0.54%, and the Dow Jones Industrial Average recorded a weekly loss of 0.47%. Just four of the 11 S&P industrial sectors were up last week. The best-performing sectors of the week were Materials (+1.60%) and Energy (+1.52%). The Quantified Funds ended with mixed performance on the week: The Quantified Market Leaders Fund (QMLFX) was up 0.79%, the Quantified All-Cap Equity Fund (QACFX) ended the week up 0.39%, the Quantified Alternative Investment Fund (QALTX) was down 0.10%, the Quantified Managed Income Fund (QBDSX) recorded a weekly loss of 0.21%, and the Quantified STF Fund (QSTFX) finished the week down 2.54%.
Last week the Quantified All-Cap Equity Fund (QACFX) changed its weightings in four leading stock baskets, which were over 48% of the portfolio’s composition: “CPMS-Price Momentum” (19.10%), “All Cap–Est EPS Revision Upward” (12.72%), “International-52WK” (11.02%), and All Cap–Gross Profit Enterprise Value (5.77%). Among domestic sector distributions, Industrials and Energy led with portfolio allocations of 23% and 18%, respectively. The largest stock holding in the All-Cap portfolio was KLX Inc. (KLXI, 1.83%). The largest ETF holding was the Ultra S&P 500 ProShares ETF (SSO, 12.74%).
The cash level within the All-Cap Fund remained at 5% last week. The Fund’s daily trading of S&P 500 futures started the week 2.4% long, changed to 2.9% on Monday’s close, switched to 2.6% on Tuesday’s close, changed to 3.2% on Thursday’s close, and changed to 3.5% long on Friday to begin this week. The Fund’s daily trading of NASDAQ 100 Index futures started the week 2.4% long, changed to 3.0% long on Monday’s close, switched to 3.6% on Tuesday’s close, and then changed to 3.0% long on Wednesday’s close to begin this week.
The Market Environment Indicator (MEI) remained bullish last week. On Friday, equity asset-class allocations in the Quantified Market Leaders Fund changed to the following: Small-Cap Growth (30.26%), Large-Cap Growth (22.70%), Mid-Cap Growth (15.14%), and Emerging Markets (7.56%). Total sector ETF weightings remained at 56.76%. The individual ETF positions with the leading portfolio weightings were the iShares Russell 1000 Growth ETF (IWF, 22.70%) and Market Vectors Oil Services ETF (OIH, 18.92%).
Within the Quantified Alternative Investment Fund (QALTX), the Long/Short Market Neutral Alternative subportfolio made no major changes last week. There were a few changes among the largest ETF positions: Allocation to the SPDR Technology Select Sector ETF (XLK, 0.87%) increased, while allocation to the iShares MSCI Malaysia ETF (EWM, 0.00%) decreased from 0.93%.
The cash level within the Alternative Fund increased slightly to 13.58% last week. The daily trading of S&P 500 Index futures with 10% fund capital allocation remained neutral for the week. The 7.5% capital allocation of the volatility-based systematic trading of NASDAQ 100 Index futures started the week 4.0% long, changed to 3.0% long on Monday’s close, and then changed back to 4.0% long on Wednesday’s close to begin this week.
The Self-adjusting Trend Following strategy’s signal exposure in the NASDAQ 100 Index (NDX) remained at 2X last week and into this week. Last week, the Fund (QSTFX) lost 2.54%, compared to a loss of 1.24% on the NASDAQ 100 Index (NDX) and a loss of 1.21% for the Rydex Series NASDAQ 100 Fund (RYHOX), a current potential holding of the STF strategy.
The Quantified Managed Income Fund’s (QBDSX) two leading broad-bond index ETF holdings, the Pimco 0-5 Year High Yield Corporate Bond Index (HYS, -0.26%) and the PowerShares Senior Loan Portfolio ETF (BKLN, -0.04%), were both up for the week.
The 10-year U.S. Treasury yield was up 2.89% last week. The Fund allocations to the Pimco 0-5 Year High Yield Corporate Bond Index (HYS) and the PowerShares Senior Loan Portfolio ETF (BKLN) changed to 18.38% and 7.88%, respectively. Cash remained unchanged at 2.63%.
The 12% active portfolio exposure to 30-year U.S. Treasury bond futures in the Fund started the week 6.5% long and remained there for the week. The position lost approximately 0.90%.
|Fund (Inception)||Symbol||Qtr Ending 12/31/18||YTD Ending 12/31/18||1 Year Ending 12/31/18||3 Year Ending* 12/31/18||5 Year Ending* 12/31/18||Since * Inception Ending 12/31/18||Annual Expense Ratio|
|The Gold Bullion Strategy Fund (7/5/13)||QGLDX||7.10%||(4.08%)||(4.08%)||4.50%||(0.67%)||(1.16%)||1.54%|
|Quantified Managed Income Fund (8/9/13)||QBDSX||(2.14%)||(3.16%)||(3.16%)||2.54%||1.22%||1.10%||1.78%|
|Quantified All-Cap Equity Fund (8/9/13)||QACFX||(17.37%)||(11.15%)||(11.15%)||5.37%||2.52%||3.20%||1.55%|
|Quantified Market Leaders Fund (8/9/13)||QMLFX||(21.47%)||(13.46%)||(13.46%)||6.06%||2.79%||3.76%||1.76%|
|Quantified Alternative Investment Fund (8/9/13)||QALTX||(5.61%)||(8.89%)||(8.89%)||1.51%||0.08%||1.57%||2.07%|
|Quantified STF Fund (11/13/15)||QSTFX||(18.64%)||(6.93%)||(6.93%)||10.33%||N/A||9.20%||1.71%|
* Performance for periods of greater than one year are annualized.
As of the most recent prospectus, the expense ratios for the Gold Bullion Strategy Fund are as follows: Investors’ Class (No Load), 1.54%; Class A, 1.54%; Class C, 2.14%. The maximum sales charge imposed on Class A share purchases (as percentage of offering price) is 5.75%. An additional 2% redemption fee applies to all share classes, including Investors’ Class, when shares are redeemed within 7 days of purchase.
The performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate and an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. To obtain performance data current to the most recent month-end please call 1-855-647-8268.
Risks associated with the Quantified Funds include active frequent trading risk, aggressive investment techniques, small and mid-cap companies risk, counter party risk, depository receipt risk, derivatives risk, equity securities risk, foreign securities risk, holding cash risk, limited history of operations risk, lower quality debt securities risk, convertible bond risk, non-diversification risk, investing in other investment companies (including ETFs) risk, shorting risk, asset backed securities risk, commodity risk, credit risk, interest risk, prepayment risk, mortgage backed securities risk, hedging and leverage risk, preferred stock risk, and MLP and REIT risks. For detailed information relating to these risks, please see prospectus.
The principal risks of investing in The Gold Bullion Strategy Fund are Risks of the Sub-adviser’s Investment Strategy, Risks of Aggressive Investment Techniques, High Portfolio Turnover, Risk of Investing in Derivatives, Risks of Investing in ETFs, Risks of Investing in Other Investment Companies, Leverage Risk, Taxation Risk, Concentration Risk, Gold Risk, Wholly-owned Corporation Risk, Risk of Non-Diversification and interest rate risk. “Gold Risk” includes volatility, price fluctuations over short periods, risks associated with global monetary, economic, social and political conditions and developments, currency devaluation and revaluation and restrictions, trading and transactional restrictions.
An investor should consider the investment objectives, risks, charges and expenses of each Quantified Fund and The Gold Bullion Strategy Fund before investing. This and other information can be found in the Funds’ prospectus, which can be obtained by calling 1-855-647-8268. The prospectus should be read carefully prior to investing in The Quantified Funds or The Gold Bullion Strategy Fund.
There is no guarantee that any of the Quantified Funds or The Gold Bullion Strategy Fund will achieve their investment objectives.
Flexible Plan Investments, Ltd., serves as investment sub-adviser to The Gold Bullion Strategy and Quantified Funds. Advisers Preferred, LLC serves is the Funds’ investment adviser.