US equity markets were up last week. The NASDAQ Composite gained 5.29%, the S&P 500 was up 4.12%, and the Dow Jones Industrial Average recorded a weekly gain of 2.59%. All ten of the S&P industrial sectors were up for the week. The move upward was led by Health Care (6.57%), Information Technology (4.68%), Industrials (4.29%), and Consumer Discretionary (3.79%). Except for the Quantified Managed Bond Fund (QBDSX, -0.39%), all of the Quantified Funds were up. The largest gain was in the Quantified Market Leaders Fund (QMLFX, 4.88%), followed by the Quantified All-Cap Equity Fund (QACFX, 2.42%), and then the Quantified Alternative Investment Fund (QALTX, 1.74%).
The Quantified All-Cap Equity Fund (QACFX) made some changes last week, shifting its weightings in four leading stock baskets, which were over 65% of the portfolio’s composition: “Ultimate Dividend Portfolio” (40%), “All-Cap Quality Acceleration” (11%), “All-Cap Upside” (11%), and “All-Cap Earnings” (4%). Among domestic sector distributions, Consumer Staples and Financials led with portfolio allocations of 11% and 27%, respectively. The largest stock holdings in the All-Cap portfolio were in the common stock of McDonald’s Corp. (MCD, 4.00%) and the common stock of 3M Company (MMM, 4.00%).
The cash level within the All-Cap Fund decreased to 10.88% last week. The Fund’s daily pattern trading of S&P 500 futures started the week 20% long, changed to 8% short on Tuesday’s close, and neutral on Wednesday’s close to begin this week. Our TVA-based futures hedge started the week 10% short, changed to 5% short on Monday’s close, and neutral on Tuesday’s close to begin this week.
The Market Environment Indicator (MEI) remained bullish last week. On Friday, equity asset class allocations changed to the following: Large-Cap Growth (19.2%), Large-Cap Value (14.4%), Mid-Cap Growth (9.6%), and Mid-Cap Value (4.8%). Total sector ETF weightings were increased from 14.6% the prior week to 27.6% at the end of last week. Distribution of sector holdings and weights were as follows: Electronics (0.35%), Health Care (13%), Biotech (13%), and Technology (1.25%). As a result, the Fund held 24% of the portfolio as cash into this week. The individual ETF positions with the leading portfolio weightings were the Ultra Mid-Cap 400 ProShares ETF (MVV, 9.0%), the Ultra Dow30 ProShares ETF (DDM, 7.0%), the ProShares Ultra Nasdaq Biotechnology ETF (BIB, 6.5%), and the Ultra QQQ ProShares ETF (QLD, 6.0%).
Within the Quantified Alternative Investment Fund (QALTX), the Long/Short Market Neutral Alternative sub-portfolio decreased allocations to the Hundredfold Select Alternative Svc Fund (SFHYX, 1.70%) and to the Driehaus Active Income Fund (LCMAX, 1.40%).
Among the largest ETF positions there were a few changes: allocations to the Market Vectors Nuclear ETF (NLR, 4.3%) and the SPDR S&P Pharmaceuticals ETF (XPH, 3.0%) increased, while allocations to the Schwab Dow Jones US Select REIT ETF (SCHH, 1.8%) and the DJ Wilshire REIT ETF (RWR, 1.7%) decreased.
The cash level within the Fund decreased to 27.5% last week. The daily pattern trading of S&P 500 Index futures with 10% fund capital allocation started the week 10% long, changed to 4% short on Tuesday’s close, and neutral on Wednesday’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 4.5% long, changed to 3% long on Tuesday’s close, 1.5% long on Wednesday’s close, and 3% long on Thursday’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, -0.48%) and the Peritus High Yield Bond ETF (HYLD, 0.66%), were mixed for the week.
The 10-year US Treasury yield increased to 2.27% for the week. The Fund increased weightings in the iShares S&P National Muni Bond ETF (MUB) from 10.98% to 13.26% and in the Peritus High Yield Bond ETF (HYLD) from 5.26% to 9.86%, while decreasing allocation in the SPDR Nuveen Barclay Capital Short-Term Municipal Bond ETF (SHM) from 1.50% to 0.30%. Cash decreased to 5.14%.
The 10% active portfolio exposure to 30-Year US Treasury Bond futures in the Fund started the week long and remained long into Friday’s close to begin this week. The position lost around 1.32%.
||Qtr Ending 9/30/14
||YTD Ending 9/30/14
||1 Year Ending 9/30/14
||Since Inception Ending (9/30/14)*
||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.