Quantified Global Fund Investor Class (QGBLX)

Overview

The described fund focuses on international investment, dedicating a substantial portion of its assets to securities from foreign issuers. By mandating an investment of at least 40% of its assets in entities situated in or conducting the majority of their business outside the United States, the fund aims to provide its investors with exposure to foreign markets. Investments span across at least three different countries, diversifying the risk associated with international securities. However, despite this geographic diversification, it's noteworthy that the fund is classified as non-diversified, which typically refers to a concentration of investments in fewer securities than a diversified fund, possibly focusing on particular sectors or countries. This could imply a potentially higher risk and reward profile, as the impacts of market movements may be more pronounced.

Products and Services

The fund utilizes a variety of investment vehicles and strategies to achieve its objective of international exposure, as detailed below:

• American Depositary Receipts (ADRs): ADRs are a popular way for investors to own shares in a foreign company while receiving dividends and capital gains in U.S. dollars. This approach simplifies investing in foreign stocks by eliminating the need to deal with foreign currencies and simplifying the trade process, as ADRs are traded on U.S. markets.
• Futures Contracts: Futures contracts are agreements to buy or sell an asset at a future date at a price that is fixed at the time of the agreement. They can be used for hedging against foreign exchange risk or for speculative purposes to profit from changes in the price of an underlying asset. Given the fund's international focus, futures can be a key tool in managing exposure to currency and market volatility in foreign investment landscapes.
• Exchange-Traded Funds (ETFs) that primarily invest in foreign issuers: ETFs offer a way to invest in a broad array of securities, providing the benefits of diversification. By investing in ETFs focused on foreign issuers, the fund can quickly gain exposure to a diverse range of companies and sectors across multiple countries. This method enhances global diversification and mitigates the risk of investing directly in foreign securities.

The fund's investment strategy, emphasizing ADRs, futures contracts, and ETFs, not only seeks to optimize returns from foreign markets but also manages the associated risks of international investing. Its commitment to investing in at least three foreign countries through these instruments indicates a strategy designed to diversify risk while capitalizing on global investment opportunities.