US equity markets were mixed last week. The NASDAQ Composite gained 0.81% last week, the S&P 500 was up 0.16%, and the Dow Jones Industrial Average recorded a weekly loss of 0.22%. Six of the ten S&P industrial sectors were up for the week. The move upward was led by Health Care (0.86%), Information Technology (0.54%), Financials (0.51%), and Utilities (0.51%). The Quantified Funds were mixed for the week: the Quantified Market Leaders Fund (QMLFX, 1.16%) and the Quantified All-Cap Equity Fund (QACFX, 0.50%) were up, while the Quantified Alternative Investment Fund (QALTX, 0.00%) was flat and the Quantified Managed Bond Fund (QBDSX, -0.32%) was down.
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 Low Debt” (19%), “All-Cap Quality Acceleration” (10%), “Ultimate Dividend Portfolio” (9%), and “CPMS-Price Momentum” (8%). Among domestic sector distributions, Information Technology and Industrials led with portfolio allocations of 20% and 12%, respectively. The largest stock holdings in the All-Cap portfolio were in the common stock of II VI Inc. (IIVI, 2.30%) and the common stock of Chemed Corp. (CHE, 1.93%).
The cash level within the All-Cap Fund remained at 10% last week. The Fund’s daily pattern trading of S&P 500 futures started the week 8% long and remained there to begin this week. Our TVA-based futures hedge remained neutral throughout the 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 Growth (9.60%), Mid-Cap Growth (19.20%), Developed Countries / World Stock (4.80%), and Small-Cap Growth (14.40%). Total sector ETF weightings remained at 52% from the prior week. Distribution of sector holdings and weights were as follows: Retail (13.00%), Electronics (13.00%), Internet (13.00%), and Biotech (13.00%). The individual ETF positions with the leading portfolio weightings were the First Trust Dow Jones Internet Index ETF (FDN, 13.00%), the ProShares Ultra Russell 2000 ETF (UWM, 8.00%), the ProShares Ultra Nasdaq Biotechnology ETF (BIB, 6.50%), and the SPDR S&P Retail ETF (XRT, 6.28%).
Within the Quantified Alternative Investment Fund (QALTX), the Long/Short Market Neutral Alternative sub-portfolio increased allocations to the Dreyfus Dynamic Total Return Fund (AVGRX, 4.13%) and the Diamond Hill Long-Short Fund (DIAMX, 2.10%).
Among the largest ETF positions there were a few changes: allocations to the Market Vectors Agribusiness ETF (MOO, 4.61%) and the SPDR S&P International Utilities Sector ETF (IPU, 3.11%) increased, while allocations to the iShares S&P Global Financials Sector ETF (IXG, 3.17%) and the First Trust Utilities AlphaDEX ETF (FXU, 1.81%) decreased.
The cash level within the Fund increased to 12.81% last week. The daily pattern trading of S&P 500 Index futures with 10% fund capital allocation started the week 4% long 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 6% long, changed to 7.5% long on Monday’s close, 6% long on Tuesday’s close, 9% long on Wednesday’s close, and 10.5% long on Thursday’s close to begin this week.
The Quantified Managed Bond Fund’s (QBDSX) two leading broad-bond index ETF holdings, the SPDR Barclays Capital Short Term Corporate Bond ETF (SCPB, -0.28%) and the PowerShares Senior Loan Portfolio ETF (BKLN, 0.08%), were mixed for the week.
The 10-year US Treasury yield increased to 2.21% for the week. The Fund increased weightings in the SPDR Barclay’s Capital Short Term Corporate Bond ETF (SCPB) from 8.33% to 10.13% and in the iShares Barclay’s 1-3 Year Credit Bond ETF (CSJ) from 2.85% to 5.85%, while decreasing allocations in the iShares Barclays Intermediate Credit Bond ETF (CIU) from 10.68% to 7.00% and in the PowerShares Senior Loan Portfolio ETF (BKLN) from 12.13% to 9.98%. Cash decreased to 5.53%
||Qtr Ending 3/31/15
||YTD Ending 3/31/15
||1 Year Ending 3/31/15
||Since Inception Ending 3/31/15*
||Annual Expense Ratio
|The Gold Bullion Strategy Fund (7/5/13)
|Quantified Managed Bond Fund (8/9/13)
|Quantified All-Cap Equity Fund (8/9/13)
|Quantified Market Leaders Fund (8/9/13)
|Quantified Alternative Investment Fund (8/9/13)
As of the most recent prospectus, the expense ratios for the Gold Bullion Strategy Fund are as follows: Investors’ Class (No Load), 1.66%; Class A, 1.66%; Class C, 2.41%. 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, 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, and mortgage backed securities risk. 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, distributed by Ceros Financial Services, Inc. (member FINRA/SIPC). Ceros Financial Services, Inc., and Flexible Plan Investments, Ltd., are not affiliated entities.
Advisors Preferred, LLC, is the Funds’ investment adviser. Advisors Preferred, LLC, is a wholly owned subsidiary of Ceros Financial Services, Inc.