U.S. equity markets posted losses in all three indexes last week. The NASDAQ Composite lost 0.60%, the S&P 500 lost 0.77%, and the Dow Jones Industrial Average lost 1.34%. Six of the 11 sectors were up last week; Consumer Discretionary, up 1.16% for the week, posted the largest gain out of all of the sectors. The Quantified Funds recorded gains in only two of the five funds last week: the Quantified STF Fund (QSTFX) recorded a weekly gain of 0.52%, the Quantified Managed Income Fund (QBDSX) finished up 0.32%, the Quantified Alternative Investment Fund (QALTX) lost 0.21%, the Quantified Market Leaders Fund (QMLFX) lost 1.18%, and the Quantified All-Cap Equity Fund (QACFX) closed the week down 1.65%.
The All-Cap Fund’s daily trading of S&P 500 futures started the week 5.9% net long, decreased to 5.6% net long on Tuesday’s close, and increased to 6.2% net long on Thursday’s close to end the week. The Fund’s daily trading of NASDAQ 100 Index futures began the week 0.6% net long, increased to 1.2% net long on Thursday’s close, and then increased to 1.8% net long on Friday’s close.
The Market Environment Indicator (MEI) remained bullish last week. On Friday, equity asset-class allocations in the Quantified Market Leaders Fund remained at the following: Emerging Markets (30.26%), Mid-Cap Growth (22.70%), Large-Cap Value (15.14%), and Mid-Cap Value (7.56%). Total sector ETF weightings remained at 75.68%, holding equal exposures in Health Care, Internet, Real Estate, and Electronics. The individual ETF positions with the leading portfolio weightings were the iShares MSCI Emerging Markets ETF (EEM, 30.26%), the iShares US Russell Mid Growth ETF (IWP, 22.70%), and the iShares DJ Real Estate ETF (IYR, 7.02%). Total cash remained at 21.10%.
Within the Quantified Alternative Investment Fund (QALTX), the Long/Short Market Neutral Alternative subportfolio made no major changes this week. There were a few changes among the largest ETF positions: Allocation to the Fidelity MSCI Utilities Index ETF (FUTY, 2.90%) increased, while allocation to the iShares iBoxx $ Invest Grade Corp Bond ETF (LQD, 0.78%) decreased. Last week, the funds were up 0.44% and 1.45%, respectively.
The cash level within the Alternative Fund increased to 7.89% 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 long, increased to 2.0% net long on Thursday’s close, and finished the week at 3.0% net long.
The Self-adjusting Trend Following strategy’s signal exposure in the NASDAQ 100 Index (NDX) was 100% exposed to the NDX all week. The Fund (QSTFX) was up 0.52%, compared to a gain of 0.26% on the NASDAQ 100 Index (NDX) and a gain of 0.23% 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 Invesco Preferred ETF (PGX, 20.50%) and the Invesco Emerging Markets Sovereign Debt ETF (PCY, 18.25%). Last week, the funds were down 0.63% and up 0.64%, respectively. Cash remained at 2.00%.
The 10-year U.S. Treasury yield lost last week, closing down 2.44% on Friday. The 12% active portfolio exposure to 30-year U.S. Treasury bond futures in the Fund started the week at 1.3% net long, changed to 2.5% net long on Tuesday’s close, increased to 3.0% net long on Wednesday’s close, and then decreased to 2.5% net long on Thursday’s close to end the week. The position gained approximately 0.56%.
|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.