U.S. equity markets were up last week. The Dow Jones Industrial Average recorded a weekly gain of 2.09%, the S&P 500 was up 2.23%, and the NASDAQ Composite gained 2.31%. All 11 of the S&P industrial sectors were up for the week, led by Health Care (3.54%) and Telecommunications (3.52%). The Quantified Funds were up last week: The Quantified STF Fund (QSTFX) was up 5.33%, the Quantified Market Leaders Fund (QMLFX) gained 2.87%, the Quantified Alternative Investment Fund (QALTX) finished the week up 1.52%, the Quantified All-Cap Equity Fund (QACFX) recorded a weekly gain of 1.07%, and the Quantified Managed Income Fund (QBDSX) gained 0.63%.
Last week the Quantified All-Cap Equity Fund (QACFX) shifted its weightings in four leading stock baskets, which were over 45% of the portfolio’s composition: “All-Cap Cash Flow” (15%), “All-Cap Smart Money” (14%), “CPMS-Double 10 Value” (8%), and “International Payout” (8%). Among domestic sector distributions, Technology and Financial Services led with portfolio allocations of 32% and 17%, respectively. The largest stock holdings in the All-Cap portfolio were in the common stock of Tech Data Corp. (TECD 3.08%) and in Silicon Motion Technology Corp. (SIMO, 2.77%). The largest ETF holding was in the ProShares Ultra S&P 500 ETF (SSO, 8.41%).
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 4.4% long, changed to 1.9% long on Tuesday’s close, changed to 1.3% long on Thursday’s close, and changed to 4.4% long on Friday’s close to begin this week. The Fund’s daily trading of NASDAQ 100 Index futures started the week 6% long and remained there 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 remained at the following: Emerging Markets (31.20%), Large-Cap Growth (23.40%), Mid-Cap Growth (15.60%), and Small-Cap Growth (7.80%). Total sector ETF weightings remained at 78% from the prior week. The individual ETF positions with the leading portfolio weightings were the iShares MSCI Emerging Markets ETF (EEM, 31.20%) and iShares Russell 1000 Growth ETF (IWF, 23.40%).
Within the Quantified Alternative Investment Fund (QALTX), the Long/Short Market Neutral Alternative subportfolio made no major changes last week.
There were a few slight changes among the largest ETF positions: Allocation to the iShares Global Financials ETF (IXG, 3.25%) increased, while allocation to the PowerShares WilderHill Clean Energy ETF (PBW, 3.65%) decreased.
The cash level within the Fund decreased to 7.18% last week. The daily trading of S&P 500 Index futures with 10% fund capital allocation started the week neutral and remained there to begin this week. The 7.5% capital allocation of the volatility-based systematic trading of NASDAQ 100 Index futures started the week 15% long and remained there to begin this week.
The Self-adjusting Trend Following strategy’s signal held its 2X exposure in the NASDAQ 100 Index (NDX). Last week, the Fund (QSTFX) gained 5.33%, compared to a gain of 2.76% on the NASDAQ 100 Index (NDX) and a 2.72% gain 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 SPDR Bloomberg Barclays High Yield Bond ETF (JNK, 0.27%) and the PIMCO 0-5 Year High Yield Corporate Bond Index ETF (HYS, 0.45%), were both up for the week.
The 10-year U.S. Treasury yield closed the week at 2.66%. Last week, the Fund decreased allocation to the WisdomTree U.S. Large-Cap Dividend ETF (DLN) from 10.50% to 7.13%, and it increased its weighting in the PIMCO 0-5 Year High Yield Corporate Bond Index ETF (HYS) from 12.25% to 17.63%. Cash remained at 3%.
The 12% active portfolio exposure to 30-year U.S. Treasury bond futures in the Fund started the week 0.5% long and changed to 1.8% long on Thursday’s close to begin this week. The position lost approximately 0.05%.
|Fund (Inception)||Symbol||Qtr Ending (9/30/20)||YTD Ending (9/30/20)||1 Year Ending (9/30/20)||3 Year Ending* (9/30/20)||5 Year Ending* (9/30/20)||Since* Inception Ending (9/30/20)||Annual Expense Ratio|
|The Gold Bullion Strategy Fund (7/5/13)||QGLDX||3.79%||19.02%||21.90%||10.47%||8.46%||3.20%||1.51%|
|Quantified Managed Income Fund (8/9/13)||QBDSX||(0.89%)||(8.57%)||(7.73%)||(0.45%)||1.63%||0.97%||1.68%|
|Quantified Market Leaders Fund (8/9/13)||QMLFX||7.62%||12.52%||29.19%||9.05%||10.76%||7.98%||1.73%|
|Quantified Alternative Investment Fund (8/9/13)||QALTX||4.87%||(8.78%)||(3.97%)||(1.36%)||1.19%||1.21%||2.06%|
|Quantified STF Fund (11/13/15)||QSTFX||20.53%||52.79%||82.39%||23.26%||N/A||19.05%||1.70%|
|Quantified Common Ground Fund (12/27/19)||QCGDX||5.98%||(0.80%)||N/A||N/A||N/A||(0.70%)||1.77%|
|Quantified Evolution Plus Fund
|Quantified Pattern Recognition Fund (8/30/19)||QSPMX||(0.67%)||(2.98%)||(5.33%)||N/A||N/A||7.49%||1.77%|
|Quantified Tactical Fixed Income Fund (9/13/19)||QFITX||1.00%||11.49%||10.53%||N/A||N/A||12.32%||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), 1.51%; Class A, 1.51%; Class C, 2.10%. 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.