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Quantified Funds 4/17/17 Print PDF

U.S. equity markets were down last week. The NASDAQ Composite lost 1.24%, the S&P 500 was down 1.13%, and the Dow Jones Industrial Average recorded a weekly loss of 0.98%. Eight of the 11 S&P industrial sectors were down for the week, led by Financials (-2.65%) and Materials (-2.42%). The Quantified Funds were also down for the week: The Quantified Managed Income Fund (QBDSX) was down 0.11%, the Quantified Alternative Investment Fund (QALTX) lost 1.08%, the Quantified All-Cap Equity Fund (QACFX) finished the week down 1.12%, the Quantified STF Fund (QSTFX) recorded a weekly loss of 2.12%, and the Quantified Market Leaders Fund (QMLFX) was down 2.52%.

Last week the Quantified All-Cap Equity Fund (QACFX) shifted its weightings in four leading stock baskets, which were more than 56% of the portfolio’s composition: “All-Cap Low Debt” (19%), “International Payout” (17%), “All-Cap Liquidity Premium” (14%), and “CPMS-Price Momentum” (6%). Among domestic sector distributions, Technology and Financial Services led with portfolio allocations of 21% and 22%, respectively. The largest stock holdings in the All-Cap portfolio were in the common stock of Adobe Systems (ADBE, 2.15%) and Cabot Microelectronics Corp. (CCMP, 2.15%).

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 last week neutral and remained there to begin this week. Our Targeted Volatility Analysis (TVA)–based futures hedge started the week neutral and remained there to begin this 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: Small-Cap Value (31.20%), Large-Cap Value (23.40%), Large-Cap Growth (15.60%), and Mid-Cap Value (7.80%). Total sector ETF weightings remained at 58.50% from the prior week. The individual ETF positions with the leading portfolio weightings were the iShares U.S. Financials Services ETF (IYG, 19.50%) and the PowerShares Dynamic Leisure and Entertainment ETF (PEJ, 19.50%).

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 ETF positions: Allocation to the SPDR S&P Global Infrastructure ETF (GII, 2.80%) increased, and allocation to the PowerShares DB Base Metals ETF (DBB, 2.05%) decreased.

The cash level within the Fund increased to 10.75% last week. The daily pattern trading of S&P 500 Index futures with 10% fund capital allocation started the week neutral 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 15% long and remained there to begin this week.

The Self-adjusting Trend Following strategy’s signal held its 2X exposure in the NASDAQ 100 Index (NDX). Last week, the Fund (QSTFX) lost 2.12%, compared to a 1.20% loss on the NASDAQ 100 Index (NDX) and 1.23% loss 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, the Pimco 0-5 Year High Yield Corporate Bond Index ETF (HYS, 0.04%) and the SPDR DoubleLine Total Return Tactical ETF (TOTL, 0.63%), were up for the week.

The 10-year U.S. Treasury yield decreased to 2.24% for the week. Last week, the Fund increased allocation to the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) from 5.13% to 8.50%, and decreased its weighting in the WisdomTree Large-Cap Dividend ETF (DLN) from 6.38% to 5.13%. Cash decreased to 4%.

The 10% active portfolio exposure to 30-year U.S. Treasury bond futures in the Fund started the week neutral and remained there to begin this week. Because there were no trades, the position finished the week flat.

Total Return
Fund (Inception) Symbol Qtr Ending 3/31/17 YTD Ending 3/31/17 1 Year Ending 3/31/17 3 Year Ending * 3/31/17 Since * Inception Ending 3/31/17 Annual Expense Ratio
The Gold Bullion Strategy Fund (7/5/13) QGLDX 8.17% 8.17% (0.78%)
Quantified Managed Income Fund (8/9/13) QBDSX 0.96%
Quantified All-Cap Equity Fund (8/9/13) QACFX 1.21%
Quantified Market Leaders Fund (8/9/13) QMLFX 4.95%
Quantified Alternative Investment Fund (8/9/13) QALTX 3.34%
Quantified Self Adjusting Trend Following Fund (11/13/15) QSTFX 24.82% 24.82%

* 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), 1.62%; Class A, 1.62%; Class C, 2.22%. 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.

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Everything in the newsletter pertains to strategies available on our Strategic Solutions platform at Trust Company of America. The same strategies are implemented on many other products: mutual funds, variable annuity, variable life and retirement platforms. Therefore, we expect the strategic discussion may be of interest to you. Note, however, that since these products have their own subaccount and fund universes and different internal expenses, the results and trading of the same strategy on other platforms may differ substantially from those described herein.

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