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Quantified Funds 07/10/17 Print PDF

U.S. equity markets were up last week. The Dow Jones Industrial Average recorded a weekly gain of 0.30%, the S&P 500 was up 0.07%, and the NASDAQ Composite rose 0.21%. Seven of the 11 S&P industrial sectors were down for the week, led by Telecommunications (-2.17%) and Real Estate (-1.51%). The Quantified Funds were mixed for the week: The Quantified STF Fund (QSTFX) finished the week up 0.09%, the Quantified Managed Income Fund (QBDSX) recorded a weekly loss of 0.31%, the Quantified Alternative Investment Fund (QALTX) fell 0.32%, the Quantified All-Cap Equity Fund (QACFX) was down 0.35%, and the Quantified Market Leaders Fund (QMLFX) lost 0.37%.

Last week the Quantified All-Cap Equity Fund (QACFX) shifted its weightings in four leading stock baskets, which were over 55% of the portfolio’s composition: “All-Cap Steady Acceleration” (30%), “International Payout” (9%), “All-Cap Asset Efficiency” (9%), and “All-Cap Dividend Yield” (8%). Among domestic sector distributions, Financial Services and Technology led with portfolio allocations of 20% and 16%, respectively. The largest stock holdings in the All-Cap portfolio were in the common stock of Chubb Ltd. (CB, 3.41%) and in Everest Reinsurance Group Ltd. (RE, 3.41%).

The cash level within the All-Cap Fund remained at 10% last week. The Fund’s daily pattern trading of S&P 500 futures was neutral for the week. Our Targeted Volatility Analysis (TVA)–based futures hedge was also neutral for 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: Emerging Markets (31.20%), Developed International (23.40%), Large-Cap Growth (15.60%) and Mid-Cap Growth (7.80%). Total sector ETF weightings remained at 78% from the prior week. The individual ETF positions with the leading portfolio weightings were the First Trust Dow Jones Internet Index ETF (FDN, 19.50%) and the iShares Nasdaq Biotechnology ETF (IBB, 14.50%).

Within the Quantified Alternative Investment Fund (QALTX), the Long/Short Market Neutral Alternative subportfolio reduced its position in the Dreyfus Dynamic Total Return Fund (AVGRX) from 2.60% to 1.28% last week.

There were a few changes among the largest ETF positions: Allocation to the PowerShares S&P Small-Cap Health Care Portfolio ETF (PSCH, 3.17%) increased, while allocation to the SPDR SSgA Income Allocation ETF (INKM, 2.85%) decreased.

The cash level within the Fund decreased to 13.33% last week. The daily pattern trading of S&P 500 Index futures with 10% fund capital allocation was neutral for the week. The 7.5% capital allocation of the volatility-based systematic trading of NASDAQ 100 Index futures started the week 9% long, changed to 10.5% long on Wednesday’s close, changed to 9% long on Thursday’s close, and changed to 10.5% long on Friday’s close 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) rose 0.09%, compared to a gain of 0.17% on the NASDAQ 100 Index (NDX) and a 0.17% gain 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 SPDR Bloomberg Barclays High Yield Bond ETF (JNK, -0.54%) and the Pimco 0-5 Year High Yield Corporate Bond Index ETF (HYS, -0.38%), were down for the week.

The 10-year U.S. Treasury yield increased to 2.39% for the week. Last week, the Fund increased allocation to the Pimco 0-5 Year High Yield Corporate Bond Index ETF (HYS) from 8.25% to 13.25%, and decreased its weighting in the PowerShares Preferred Portfolio ETF (PGX) from 12.00% to 9.50%. Cash remained at 4%.

The 10% active portfolio exposure to 30-year U.S. Treasury bond futures in the Fund started the week neutral, changed to 10% short on Monday’s close, and changed to neutral on Wednesday’s close to begin this week. The position lost approximately 0.21%.

* 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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