U.S. equity markets posted losses in all three indexes last week. The S&P 500 lost 1.25%, the Dow Jones Industrial Average lost 1.38%, and the NASDAQ Composite lost 1.59%. Ten of 11 sectors were down last week; Real Estate remained neutral. Three of the eight Quantified Funds were up last week: The Quantified Evolution Plus Fund (QEVOX) was up 1.13%, the Quantified Tactical Fixed Income Fund (QFITX) gained 0.61%, the Quantified Managed Income Fund (QBDSX) was up 0.30%, the Quantified Common Ground Fund (QCGDX) was down 0.10%, the Quantified Alternative Investment Fund (QALTX) lost 0.29%, the Quantified Pattern Recognition Fund (QSPMX) lost 1.97%, the Quantified Market Leaders Fund (QMLFX) was down 2.16%, and the Quantified STF Fund (QSTFX) was down 3.61%.
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: Large-Cap Growth (30.26%), Small-Cap Growth (22.70%), Mid-Cap Growth (15.14%), and Emerging Markets (7.56%). Total sector ETF weightings remained at approximately 75.68%, holding equal exposure in Electronics, Health Care, Biotechnology, and Technology. The individual ETF positions with the leading portfolio weightings were the Technology SPDR ETF (XLK, 18.92%), the iShares Semiconductor ETF (SOXX, 18.92%), and the Health Care SPDR ETF (XLV, 18.92%). Total cash remained at 21.11%.
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 positions: Allocation to the SPDR Global Infrastructure ETF (GII, 4.00%) increased, while allocation to the ProShares DJ Brookfield Global Infrastructure ETF (TOLZ, 0.53%) decreased. Last week, the funds were down 0.09% and 0.49%, respectively.
The cash level within the Alternative Fund increased to 7.31% 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 7.0% net long, increased to 9.0% net long on Tuesday’s close, and then increased to 10.0% net long on Thursday’s close, where it remained through Friday.
The Self-adjusting Trend Following strategy’s signal exposure in the NASDAQ 100 Index (NDX) was 200% exposed throughout the week. The Quantified STF Fund (QSTFX) was down 3.61%, compared to a loss of 1.84% on the NASDAQ 100 Index (NDX) and a loss of 1.81% 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 iShares iBoxx Investment Grade Corporate Bond ETF (LQD, 20.63%) and Invesco Emerging Markets Sovereign Debt ETF (PCY, 15.75%). Last week, the funds were up 0.59% and 0.53%, respectively. Cash remained at 2.50%.
The 10-year U.S. Treasury yield closed the week down 7.25%. The 12% active portfolio exposure to 30-year U.S. Treasury bond futures in the Fund started the week at 2.0% net long, increased to 3.0% net long on Tuesday’s close, increased to 4.0% net long on Thursday’s close, and decreased to 3.0% net long on Friday’s close.
The Quantified Pattern Recognition Fund (QSPMX) started and ended the week with a leverage factor of 1.6.
The Quantified Tactical Fixed Income Fund (QFITX) started the week with an allocation of 20% in RYHBX, 53% in PAIQX, and 27% in DXHYX. On Friday, the allocations changed to 14% in RYHBX, 54% in PAIQX, and 32% in DXHYX.
The Quantified Evolution Plus Fund (QEVOX) changed to the following: 32% in gold, 32% in long-term Treasurys, 16% in the S&P 500, 8% in real estate, 7% in European markets, and 5% in the NASDAQ.
|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.