Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

2nd Quarter | 2021

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

U.S. equity markets were mixed last week. The S&P 500 lost 0.43%, the NASDAQ Composite gained 0.31%, and the Dow Jones Industrial Average lost 0.51%. Five of the 11 sectors were up last week; Real-Estate, which posted the largest gain, was up by 0.91%. Five of the 11 Quantified Funds were up or unchanged last week: The Quantified Tactical Fixed Income Fund (QFITX) was up 0.50%, the Quantified Evolution Plus Fund (QEVOX) was up 0.31%, the Quantified Government Income Tactical Fund (QGITX) was up 0.20%, and the Quantified STF Fund (QSTFX) was up 0.07%, the Quantified Pattern Recognition Fund (QSPMX) was unchanged for the week, the Quantified Managed Income Fund (QBDSX) was down 0.11%, the Quantified Rising Dividend Tactical Fund (QRDTX) was down 0.20%, the Quantified Alternative Investment Fund (QALTX) was down 0.46%, the Quantified Common Ground Fund (QCGDX) lost 1.17%, the Quantified Market Leaders Fund (QMLFX) was down 1.83%, and the Quantified Tactical Sectors Fund (QTSSX) was down 3.36%.

The Market Environment Indicator (MEI) remained bullish last week. Equity asset-class allocations in the Quantified Market Leaders Fund were as follows: Small-Cap Value (30.26%), Mid-Cap Value (22.70%), Large-Cap Growth (15.14%), and Large-Cap Value (7.56%). Total sector ETF weightings were at 75.68%, holding equal exposures in Banking, Financial Services, Retail, and Energy. The individual ETF positions with the leading portfolio weightings were the iShares Russell Mid Value (IWS, 22.70%), the Financial SPDR ETF (XLF, 18.91%), and the SPDR KBW Regional Bank ETF (KRE, 18.91%). Swaps from the leveraged portion of the fund can further increase these exposures. Total cash was at 21.10%.

The following were the largest allocation changes within the Quantified Alternative Investment Fund (QALTX) last week: Allocation to the FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR, 2.75%) increased, while allocation to the iShares S&P Global Consumer Discretionary ETF (RXI, 0%) decreased. Last week, the funds were down 1.88% and up 0.17%, respectively.

The cash level within the Quantified Alternative Investment Fund increased to 17% last week. The 10% capital allocation of the volatility-based systematic trading of NASDAQ 100 Index futures started the week at 3% long, changed to 2% long on Monday’s close, and remained there for the rest of the week.

The QFC Self-adjusting Trend Following strategy had an 80% exposure to the NASDAQ 100 Index (NDX) the entire week. The Quantified STF Fund (QSTFX) was up 0.07% for the week, compared to a gain of 0.14% on the NASDAQ 100 Index (NDX) and a gain of 0.14% 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 are the iShares Barclays 1-3 Year Treasury Bond ETF (SHY, 21.90%) and the SPDR Barclays Capital High Yield Bond ETF (JNK, 9.10%). Last week, the funds were unchanged and down 0.06%, respectively. Cash was at 13.10%.

The 10-year U.S. Treasury yield closed the week down 1 basis point to 1.62%. The 12% active portfolio exposure to 30-year U.S. Treasury bond futures in the Fund started the week with a 12.50% net long exposure and changed to a 9% on Friday’s close. The S&P E-mini Futures overlay, which neutralizes equity beta exposure in the equity-income portion of the portfolio, started the week with a 7.50% net short exposure, changed to an 8% net short exposure on Thursday, and remained there for the rest of the week.

The Quantified Pattern Recognition Fund (QSPMX) started the week at 160% net long exposure, changed to a 200% net long exposure on Wednesday, and remained there for the rest of the week.

The Quantified Tactical Fixed Income Fund (QFITX) started the week with a 68% exposure to Treasurys and a 16% exposure to high-yield bonds. On Friday, exposure changed to 48% Treasurys and 16% high-yield bonds to close out the week.

The allocation of the Quantified Evolution Plus Fund (QEVOX) changed to the following: 41% in the S&P, 35% in real estate, 16% in international equity, 4% in the Russell 2000, and 4% in the NASDAQ 100.

The cash exposure in the Quantified Common Ground Fund (QCGDX) was at 3.96%. The Fund’s largest allocations were to American Water Works (AWK, 6.45%) and Nextera Energy (NEE, 5.94%). Last week, the stocks were up 1.50% and 1.81%, respectively.

The Quantified Tactical Sectors Fund (QTSSX) were allocated to the following: SPDR S&P Regional Banking ETF (KRE, 50%), Financial SPDR ETF (XLF, 50%), SPDR Retail ETF (XRT, 50%), and VanEck Vectors Oil Services ETF (OIH, 50%).

The Quantified Government Income Tactical Fund (QGITX) started the week with a 70% net long exposure to long-term government bonds. On Friday, the exposure changed to a 49% net long exposure to long-term government bonds to begin this week.

The Quantified Rising Dividend Tactical Fund (QRDTX) had a bullish exposure last week.

 

Total Return

Fund (Inception) Symbol Qtr Ending (3/31/21) YTD Ending (3/31/21) 1 Year Ending (3/31/21) 3 Year Ending* (3/31/21) 5 Year Ending* (3/31/21) Since* Inception Ending (3/31/21) Annual Expense Ratio
The Gold Bullion Strategy Fund (7/9/13) QGLDX (11.02%) (11.02%) 4.82% 5.74% 4.00% 1.98% 1.51%
Quantified Managed Income Fund (8/9/13) QBDSX  (1.81%)  (1.81%) (1.74%) (0.66%) 0.80% 0.57% 1.64%
Quantified Market Leaders Fund (8/9/13) QMLFX 16.72% 16.72% 82.46% 20.23% 18.97% 12.60% 1.68%
Quantified Alternative Investment Fund (8/9/13) QALTX 5.79% 5.79% 27.44% 4.13% 4.36% 3.25% 2.11%
Quantified STF Fund (11/13/15) QSTFX (2.79%) (2.79%) 76.09% 26.98% 23.69% 19.82% 1.72%
Quantified Common Ground Fund (12/27/19) QCGDX 8.41% 8.41% 39.04% N/A N/A 18.94% 1.86%
Quantified Evolution Plus Fund
(9/30/19)
QEVOX (5.54%) (5.54%) 10.57% N/A N/A (6.15%) 1.81%
Quantified Pattern Recognition Fund (8/30/19) QSPMX 11.80% 11.80% 30.35% N/A N/A 14.65% 1.78%
Quantified Tactical Fixed Income Fund (9/13/19) QFITX (9.24%) (9.24%) (10.08%) N/A N/A 0.96% 1.77%
Quantified Tactical Sectors Fund (3/3/21) QTSSX N/A N/A N/A N/A N/A 0.60% 1.77%

* 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), 1.51%; Class A, 1.51%; Class C, 2.10%. 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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