US equity markets were up last week. The NASDAQ Composite gained 2.66% last week, the S&P 500 was up 1.60%, and the Dow Jones Industrial Average recorded a weekly gain of 0.92%. Nine of the ten S&P industrial sectors were up for the week. The move upward was led by Information Technology (3.11%), Industrials (2.36%), Consumer Discretionary (1.71%), and Energy (1.60%). All of the Quantified Funds were up last week. The largest gain was in the Quantified Market Leaders Fund (QMLFX, 2.62%), followed by the Quantified All-Cap Equity Fund (QACFX, 1.34%), the Quantified Alternative Investment Fund (QALTX, 1.26%), and then the Quantified Managed Bond Fund (QBDSX, 0.31%).
Last week the Quantified All-Cap Equity Fund (QACFX) shifted its weightings in four leading stock baskets, which were over 61% of the portfolio’s composition: “All-Cap High Flier” (21%), “All-Cap Low Debt ” (19%), “All-Cap Upside” (15%), and “All-Cap Quality Acceleration” (8%). Among domestic sector distributions, Information Technology and Health Care led with portfolio allocations of 18% and 19%, respectively. The largest stock holdings in the All-Cap portfolio were in the common stock of Amedisys Inc. (AMED, 2.08%) and the common stock of Dollar General Corporation (DG, 2.08%).
The cash level within the All-Cap Fund remained at 9.96% last week. The Fund’s daily pattern trading of S&P 500 futures started the week neutral, changed to 8% short on Thursday’s close, and neutral on Friday’s close to begin this week. Our TVA-based futures hedge remained neutral throughout last 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: Large-Cap Growth (23.70%), Large-Cap Value (9.60%), Mid-Cap Growth (14.41%), and Small-Cap Growth (4.80%). Total sector ETF weightings remained at 47.49% from the prior week. Distribution of sector holdings and weights were as follows: Health Care (12.99%), Biotech (13.00%), Financial Services (13.00%), and Retail (8.50%). The individual ETF positions with the leading portfolio weightings were the ProShares Ultra QQQ ETF (QLD, 8.25%), the ProShares Ultra S&P500 ETF (SSO, 8.25%), the SPDR Financial Select Sector ETF (XLF, 6.93%), and the SPDR S&P Retail ETF (XRT, 6.80%).
Within the Quantified Alternative Investment Fund (QALTX), the Long/Short Market Neutral Alternative sub-portfolio decreased allocation to the Advantage Dynamic Total Return Fund (AVGRX, 1.70%).
Among the largest ETF positions there were a few changes: allocations to the Market Vectors Nuclear ETF (NLR, 5.01%) and the iShares US Pharmaceuticals ETF (IHE, 4.88%) increased, while allocations to the Wisdom Tree Managed Futures Strategy ETF (WDTI, 4.82%) and the SPDR Materials Select Sector ETF (XLB, 2.48%) decreased.
The cash level within the Fund decreased to 18.74% last week. The daily pattern trading of S&P 500 Index futures with 10% fund capital allocation started the week neutral, changed to 4% short on Thursday’s close, and neutral on Friday’s close to begin this week. The 7.5% capital allocation of the volatility-based systematic trading of NASDAQ 100 Index futures started the week 7.5% long, changed to 6.0% long on Tuesday’s close, and 7.5% long on Wednesday’s close to begin this week.
The Quantified Managed Bond Fund’s (QBDSX) two leading broad-bond index ETF holdings, the iShares S&P National Muni Bond ETF (MUB, 0.17%) and the SPDR Nuveen Barclay’s Municipal Bond ETF (TFI, -0.08%), were mixed for the week.
The 10-year US Treasury yield decreased to 1.80% for the week. The Fund increased weightings in the iShares Barclay’s 7-10 Year Treasury Bond ETF (IEF) from 8.12% to 8.44% and in the iShares Barclays 3-7 Year Treasury Bond ETF (IEI) from 0% to 4.20%, while decreasing allocations in the iShares S&P National Muni Bond ETF (MUB) from 12.06% to 11.16% and in the SPDR Nuveen Barclays Municipal Bond ETF (TFI) from 9.42% to 8.58%. Cash increased to 9.82%.
The 10% active portfolio exposure to 30-Year US Treasury bond futures in the Fund started the week long and remained long to begin this week. The position gained around 0.58%.
||Qtr Ending 12/31/14
||YTD Ending 12/31/14
||1 Year Ending (12/31/14)
||Since Inception Ending (12/31/14)*
||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. For current performance, 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.