U.S. equity markets posted losses in two of the three indexes last week. The NASDAQ Composite gained 1.11%, the S&P 500 lost 0.63%, and the Dow Jones Industrial Average lost 1.75%. Three of the 11 sectors were up last week; Information Technology, which posted the largest gain, was up 2.13%. Three of the eight Quantified Funds were up last week: The Quantified Tactical Fixed Income Fund (QFITX) was up 1.08%, the Quantified STF Fund (QSTFX) was up 0.31%, the Quantified Common Ground Fund (QCGDX) gained 0.31%, the Quantified Managed Income Fund (QBDSX) remained neutral, the Quantified Pattern Recognition Fund (QSPMX) was down 0.48%, the Quantified Alternative Investment Fund (QALTX) was down 0.89%, the Quantified Market Leaders Fund (QMLFX) was down 1.45%, and the Quantified Evolution Plus Fund (QEVOX) lost 6.67%.
The Market Environment Indicator (MEI) remained bullish last week. Equity asset-class allocations in the Quantified Market Leaders Fund changed to the following: Emerging Markets (23.40%), Small-Cap Growth (15.60%), Mid-Cap Growth (7.80%), and Large-Cap Growth (7.20%). Total sector ETF weightings changed to 39.00%, holding equal exposures in Basic Materials and Electronics. The individual ETF positions with the leading portfolio weightings were the iShares-MSCI Emerging Markets Index ETF (EEM, 23.40%), the Materials Select SPDR ETF (XLB, 19.50%), and the iShares Semiconductor ETF (SOXX, 19.50%). Total cash changed to 7.00%.
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 Bridgeway Managed Volatility Fund (BRBPX, 3.93%) increased, while allocation to the BNY Mellon-Dynamic Total Return Fund (AVGRX, 3.03%) decreased. Last week, the funds were up 0.25% and down 0.30%, respectively.
The cash level within the Alternative Fund increased to 27.82% last week. The daily trading of S&P 500 Index futures with 10% fund capital allocation remained neutral for the week. The 7.50% capital allocation of the volatility-based systematic trading of NASDAQ 100 Index futures started the week at 1.00% net long, increased to 2.00% net long on Monday, increased to 4.00% net long on Wednesday’s close, and finished the week at 5.00% net long on Friday’s close.
The Self-adjusting Trend Following strategy started the week with 120% exposure in the NASDAQ 100 Index (NDX), increased to 160% exposure on Tuesday’s close, and decreased to 100% exposure on Wednesday’s close. The Quantified STF Fund (QSTFX) gained 0.31% for the week, compared to a gain of 1.96% on the NASDAQ 100 Index (NDX) and a gain of 1.95% 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 Barclays 1-3 Year Treasury Bond (SHY, 33.01%) and the iShares Barclays 20+ Year Treasury Bond (TLT, 16.80%). Last week, the funds were up 0.01% and 0.95%, respectively. Cash changed to 15.00%.
The 10-year U.S. Treasury yield closed the week up 0.65%. The 12% active portfolio exposure to 30-year U.S. Treasury bond futures in the Fund started and finished the week at 5.00% net long. The S&P E-mini Futures were 6.50% net short throughout last week.
The Quantified Pattern Recognition Fund (QSPMX) started the week with 160% exposure to the market, increased to 200% exposure on Monday’s close, decreased to 4% exposure on Tuesday’s close, decreased to 0% exposure on Wednesday’s close, and remained there through Friday’s close.
The Quantified Tactical Fixed Income Fund (QFITX) started and finished the week with an allocation of 92% in RYHBX and 8% in MPIXX.
The allocation of the Quantified Evolution Plus Fund (QEVOX) remained at the following: 67% in gold, 13% in the S&P, 12% in the NASDAQ, 6% in emerging markets, and 2% in cash.
The cash exposure in the Quantified Common Ground Fund (QCGDX) remained at 2.50%. The Fund’s largest allocations were to West Pharmaceutical Services Inc. (WST, 8.39%) and NVIDIA Corp. (NVDA, 7.41%). Last week, the stocks were down 2.96% and up 5.62%, respectively.
|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.