U.S. equity markets experienced mixed performance last week. The NASDAQ Composite gained 0.11% and the Dow Jones Industrial Average gained 0.12%, while the S&P 500 lost 0.22%. Only three of the 11 S&P industrial sectors were positive last week, led by Real Estate, which gained 1.50%. The Quantified Funds all recorded positive performance last week: The Quantified Market Leaders Fund (QMLFX) recorded a weekly gain of 0.93%, both the Quantified Alternative Investment Fund (QALTX) and the Quantified Managed Income Fund (QBDSX) gained 0.33%, the Quantified All-Cap Equity Fund (QACFX) closed the week up 0.22%, and the Quantified STF Fund (QSTFX) gained 0.11%.
Last week the Quantified All-Cap Equity Fund (QACFX) changed its weightings in four leading stock baskets, which were around 31% of the portfolio’s composition: “CPMS–Dividend Growth” (10.10%), “International–Liquidity Premium” (7.88%), “CPMS–Double 10 Dividend and Growth” (7.26%), and “Ultimate Dividend Portfolio” (6.08%). Among domestic sector distributions, Financial Services and Technology were leaders of the portfolio with allocations of 7% and 3%, respectively. The largest stock holding in the All-Cap portfolio was Broadcom Inc. (AVGO, 2.00%). The largest ETF holding was the Direxion Daily 20+ Year Treasury Bull 3x Shares (TMF, 2.00%).
The cash level within the All-Cap Fund decreased to 42.35% last week. The Fund’s daily trading of S&P 500 futures started the week 3.2% net long, changed to 3.8% net long on Tuesday’s close, changed to 2.6% net long on Wednesday’s close, moved up to 4.4% long on Thursday’s close, and increased to 5.3% long on Friday’s close to begin this week. The Fund’s daily trading of NASDAQ 100 Index futures began 0.6% net short, changed to 1.2% net long on Tuesday’s close, and then moved to 0.0% 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: Large-Cap Value (30.26%), Large-Cap Growth (23.70%), Emerging Markets (15.60%), and Mid-Cap Growth (7.56%). Total sector ETF weightings changed to 75.68%, holding equal exposures in Health Care, Telecom, Real Estate, and Financials. The individual ETF positions with the leading portfolio weightings were the iShares Russell 1000 Value ETF (IWD, 30.26%) and the iShares Russell 1000 Growth (IWF, 23.70%). Total cash changed to 21.10%.
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 Invesco Buyback Achievers ETF (PKW, 3.00%) increased, while allocation to the Utilities Select SPDR ETF (XLU, 0.46%) decreased. Last week, the funds were up 0.16% and 0.34%, respectively.
The cash level within the Alternative Fund decreased to 43.24% 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 1.0% net short, jumped to 2.0% net long on Tuesday’s close, and then retreated back to 0.0% on Wednesday’s close to begin this week.
The Self-adjusting Trend Following strategy’s signal exposure in the NASDAQ 100 Index (NDX) was flat all last week. Thanks to the performance of the bond positions being held, the Fund (QSTFX) was up 0.11%, despite having no exposure to the NASDAQ 100. This is compared to a gain of 0.04% for the NASDAQ 100 Index (NDX) and a return of 0.00% 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, 9.88%) and the Market Vectors Intermediate Municipal Bond ETF (ITM, 9.75%). Last week, the funds were down 0.19% and 0.23%, respectively. Cash remained at 2.00%.
The 10-year U.S. Treasury yield fell last week, closing at 2.76% 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 until Friday, when it changed to 9.8% net long. The position gained approximately 0.61%.
|Fund (Inception)||Symbol||Qtr Ending (9/30/19)||YTD Ending (9/30/19)||1 Year Ending (9/30/19)||3 Year Ending* (9/30/19)||5 Year Ending* (9/30/19)||Since* Inception Ending (9/30/19)||Annual Expense Ratio|
|The Gold Bullion Strategy Fund (7/5/13)||QGLDX||3.99%||14.18%||23.30%||1.68%||2.12%||1.10%||1.48%|
|Quantified Managed Income Fund (8/9/13)||QBDSX||1.85%||9.48%||7.14%||3.38%||2.66%||2.48%||1.78%|
|Quantified All-Cap Equity Fund (8/9/13)||QACFX||(0.44%)||2.73%||(15.11%)||4.68%||4.02%||3.26%||1.55%|
|Quantified Market Leaders Fund (8/9/13)||QMLFX||(2.13%)||9.81%||(13.77%)||6.48%||4.90%||4.88%||1.76%|
|Quantified Alternative Investment Fund (8/9/13)||QALTX||0.74%||4.37%||(1.48%)||2.26%||0.77%||2.08%||2.07%|
|Quantified STF Fund (11/13/15)||QSTFX||(4.73%)||(2.48%)||(20.65%)||12.52%||N/A||6.67%||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 as the Funds’ investment adviser.