The Fund
AFQSX
The Fund seeks to achieve its investment objective by investing primarily in a portfolio
of exchange-traded funds (“ETFs”) and equity index futures. The Fund implements a
quantitative trend-following strategy by generally holding long positions in S&P 500®
Index ETF(s) and equity index futures that provide either long and/or short exposure
to the equity markets. The Fund’s ETF investments will typically consist of ETFs that
have the S&P 500® Index as the reference index. The reference index and
corresponding ETF investment(s) may be market cap or equal weighted. Alpha
Fiduciary, Inc., the Fund’s investment adviser (the “Adviser”), has developed a
quantitative trend-following strategy that is designed to determine the Fund’s exposure
to the equity markets, adjusting that exposure from approximately -105% to 165% at
the time of purchase or sale. The exposure to the equity markets may move outside
the range of -105% to 165% due to market changes and shareholder transactions.
The Adviser will use one or more sets of data inputs in its model as well as the
corresponding ETF(s) which they believe most appropriate for the prevailing market
conditions. As a result of the Fund’s use of derivatives, the Fund may also hold
significant amounts of U.S. Treasuries or short-term investments, including money
market funds, cash and time deposits.
The Adviser’s quantitative strategy seeks to identify price trends in the equity markets
as indicated by the S&P 500® reference index. The quantitative investment model
uses past asset prices and other market information to seek to determine the direction
of the price trend in the S&P 500® reference index. The investment model tends to
overweight the equity markets as the market moves towards the upper end of its
intermediate trading range and underweight the equity markets when the market
trades toward the lower end of its intermediate trading range. For certain months
where market events produce large upward or downward price patterns, the
quantitative model is designed to adjust the Fund’s exposure to the equity markets
accordingly (i.e., greater exposure when market is moving up and less exposure when
market is moving down).
Based on the signals being received from the quantitative investment model, the Fund
will generally take a long or short position in S&P 500® equity index futures. Stock
index futures are contracts based on the future value of the basket of securities that
comprise the underlying stock index (e.g. S&P 500® Index). The Fund’s long positions
will benefit from an increase in price of the S&P 500®, while short positions benefit
from a decrease in price of the S&P 500®. The Fund adjusts its equity index futures
exposure based on the strength of signals from the quantitative investment model. The
Adviser may, in its discretion, override or modify its quantitative investment model and
rely solely on its own proprietary research
Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. You may obtain a prospectus on this website or by calling the transfer agent at 1-888-266-3996. The prospectus should be read carefully before investing.
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. An investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. For the most recent month-end performance please call 1-888-266-3996. The Fund's total annual operating expense ratio is 1.74%.
Important Risk Information
An investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. There can be no assurance that the Fund will be successful in meeting its objectives. The risks associated with the Fund, detailed in the Prospectus, include the risks of investing in exchange traded funds (ETFs). The Fund may invest in ETFs that carry the following risks: general market risks and equity securities risks. There also may be risks associated with the Fund’s investment in a specific sector, and non-diversification. The Fund may also engage in short-term trading to try to achieve its objective and may have portfolio turnover rates significantly in excess of 100%. The Fund uses futures contracts. Futures contracts may adversely affect the Fund’s net asset value and total return. The Fund’s use of futures contracts will have the economic effect of financial leverage. Financial leverage magnifies exposure to the swings in prices of an asset class underlying an instrument and results in increased volatility, which means the Fund will have the potential for greater gains, as well as the potential for greater losses, than if the Fund does not use instruments that have a leveraging effect.
Distributed by Arbor Court Capital, LLC - Member FINRA / SIPC