U.S. equity markets had yet another strong week as the January rally slowly pushes last year’s woes into the background. The NASDAQ Composite gained 2.66%, bringing its total performance for the year up to 7.87%. The S&P 500 gained 2.87%, totaling 6.54% for the year so far. The Dow Jones Industrial Average gained 2.96% to bring its performance for the year to 5.91%. Ten of the 11 S&P industrial sectors were positive last week, with Financials leading the pack, gaining 6.12%. The sole laggard of the group was Utilities, which fell by 0.18%. The Quantified Funds had mixed performance last week: The Quantified Market Leaders Fund (QMLFX) recorded a weekly gain of 1.78%, the Quantified All-Cap Equity Fund (QACFX) closed the week up 0.45%, the Quantified Alternative Investment Fund (QALTX) and the Quantified Managed Income Fund (QBDSX) finished up 0.11% each, and the Quantified STF Fund (QSTFX) lost 1.00%.

Last week the Quantified All-Cap Equity Fund (QACFX) changed its weightings in four leading stock baskets, which were around 28% of the portfolio’s composition: “International–Liquidity Premium” (10.25%), “CPMS–Double 10 Dividend and Growth” (7.26%), “Ultimate Dividend Portfolio” (6.08%), and “Leverage Long Treasury Basket” (4.65%). Among domestic sector distributions, Financial Services and Utilities were leaders of the portfolio with allocations of 4% and 3%, respectively. The largest stock holding in the All-Cap portfolio was Banco Santander S.A. (BSBR, 1.50%). The largest ETF holding was the SPDR Barclays Capital High Yield Bond ETF (JNK, 6.00%).

The cash level within the All-Cap Fund decreased to 48.27% last week. The Fund’s daily trading of S&P 500 futures started the week 2.3% net long, changed to 2.6% net long on Monday’s close, and then scaled up to 3.2% net long on Wednesday’s close to begin this week. The Fund’s daily trading of NASDAQ 100 Index futures began 1.2% net short and then changed to 0.6% net short on Friday’s close to begin this week.

The Market Environment Indicator (MEI) moved to a bullish stance last week. On Friday, equity asset-class allocations in the Quantified Market Leaders Fund changed to the following: Large-Cap Value (15.13%), Large-Cap Growth (11.35%), Emerging Markets (7.57%), and Mid-Cap Growth (3.78%). Total sector ETF weightings remained at 28.38%, holding its equal exposures in Health Care, Telecom, and Financials. The individual ETF positions with the leading portfolio weightings were the iShares Russell 1000 Value ETF (IWD, 15.13%) and the iShares Russell 1000 Growth (IWF, 11.35%). Total cash changed to 33.80%.

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 iShares S&P Global Utilities ETF (JXI, 1.85%) increased, while allocation to the Fidelity MSCI Utilities ETF (FUTY, 0.00%) decreased. Last week, the funds were up 0.28% and 0.14%, respectively.

The cash level within the Alternative Fund decreased to 56.30% 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 began the week 2.0% net short but pared down to 1.0% net short on Friday’s close to begin this week.

The Self-adjusting Trend Following strategy’s signal exposure in the NASDAQ 100 Index (NDX) was variable last week, moving from -1X on Monday to 0.00X on Wednesday to begin this week. Last week, the Fund (QSTFX) lost 1.00% compared to a gain of 2.78% on the NASDAQ 100 Index (NDX) and a gain of 2.76% 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 are the SPDR Lehman Municipal Bond ETF (TFI, 13.00%) and the Market Vectors Intermediate Municipal Bond ETF (ITM, 12.13%). Last week, the funds returned 0.15% and -0.32%, respectively. Cash remained at 2.00%.

The 10-year U.S. Treasury yield rose last week, closing at 2.79% on Friday. The 12% active portfolio exposure to 30-year U.S. Treasury bond futures in the Fund was at 10.9% all last week. The position lost approximately 0.97%.

Total Return

Fund (Inception) Symbol Qtr Ending (12/31/19) YTD Ending (12/31/19) 1 Year Ending (12/31/19) 3 Year Ending* (12/31/19) 5 Year Ending* (12/31/19) Since* Inception Ending (12/31/19) Annual Expense Ratio
The Gold Bullion Strategy Fund (7/5/13) QGLDX 2.42% 16.95% 16.95% 7.71% 3.28% 1.43% 1.69%
Quantified Managed Income Fund (8/9/13) QBDSX 0.92% 10.49% 10.49% 3.97% 2.85% 2.51% 1.68%
Quantified All-Cap Equity Fund (8/9/13) QACFX 5.92% 8.81% 8.81% 4.73% 4.38% 4.06% 1.54%
Quantified Market Leaders Fund (8/9/13) QMLFX 14.81% 26.08% 26.08% 8.42% 7.09% 6.96% 1.73%
Quantified Alternative Investment Fund (8/9/13) QALTX 5.27% 9.87% 9.87% 4.96% 1.85% 2.82% 2.06%
Quantified STF Fund (11/13/15) QSTFX 19.38% 16.42% 16.42% 22.30% N/A 10.90% 1.70%
Quantified Common Ground Fund (12/27/19) QCGDX 0.10% N/A N/A N/A N/A 0.10% 1.77%
Quantified Evolution Plus Fund
QEVOX (1.96%) N/A N/A N/A N/A (1.96%) 1.77%
Quantified Pattern Recognition Fund (8/9/19) QSPMX 8.56% N/A N/A N/A N/A 11.50% 1.77%
Quantified Tactical Fixed Income Fund (8/9/19) QFITX (0.86%) N/A N/A N/A N/A 1.32% 1.77%

* 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), 1.48%; Class A, 1.48%; Class C, 2.08%. 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-advisor’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-advisor to The Gold Bullion Strategy and Quantified Funds. Advisors Preferred, LLC serves is the Funds’ investment advisor.