ROCKVILLE, Md., July 28, 2014 /PRNewswire/ -- The Gold
Bullion Strategy Fund (QGLDX), the first mutual fund that allows
retail investors to participate in the daily price changes of gold
bullion, has marked its one-year anniversary. Launched in
July 2013, QGLDX seeks to offer a way
for investors to track the daily price changes in gold bullion with
the convenience of a mutual fund.
Previously, those looking for ways to diversify their portfolios
with a gold allocation might choose funds that invest in gold
mining shares, which may not track gold bullion very well, or
commodity futures funds, which might have a more costly and
complicated tax structure than traditional mutual funds. And,
many ETFs that offer gold exposure are subject to "collectables"
taxation and Schedule K-1 tax reporting rules which can cause
investors to delay filing their tax returns, as well as requiring
them to file tax returns in multiple states and deal with unrelated
business taxable income. QGLDX avoids both of these
problems.
"Furthermore, gold is a unique diversifier during trying times,"
explains Jerry Wagner, Portfolio
Manager for the Fund and President of Flexible Plan Investments,
Ltd., the Fund's sub-advisor. "As our recent white paper
shows, over the last 40 years gold has proven to be the best or
second best asset class to hold during seven different investing
scenarios that concern investors. And holding gold in even a
balanced portfolio has increased risk-adjusted returns over that
period."
Wagner notes that recent geopolitical events have sparked more
queries from advisors and investors about gold, sending the young
fund to over $50 million in assets
(6/30/2014). He remarked that while investors don't have to
try and time gold investments given their proven role as a
mitigator of portfolio volatility, at present, from both a
technical and fundamental perspective, gold prices seem quite
low.
Wagner notes that QGLDX is a convenient and effective way to get
exposure to gold with the benefits of daily liquidity and 1099
reporting, and with its included holdings in short-term bonds
actually has the possibility of offsetting the normal expense
associated with other commodity-based mutual funds.
The fund invests in gold bullion ETFs and derivatives to seek to
reflect the daily changes in the price of gold bullion. In
addition, it allocates assets to short maturity bond investments in
order to produce interest income to accomplish its tax strategy and
reduce expenses. During its first year of operation, this tracking
fund yielded a return within 29 basis points of the price change of
the largest gold ETF after all expenses.
The Gold Bullion Strategy Fund is currently available in a
no-load format as well as the recently launched A and C shares.
Additionally, a variable investment trust of the portfolio is
available through Jefferson National.
To obtain a copy of the 40-year gold study entitled "The role
of gold in investment portfolios" and learn more about
QGLDX, please visit: www.goldbullionstrategyfund.com
About Flexible Plan Investments, Ltd.:
Established in 1981, Flexible Plan Investments, Ltd. invests
over $1.7 billion in assets for
clients in its separately managed account business (as of
12/31/13). As a founding member of the National Association of
Active Investment Managers (NAAIM), Flexible Plan, a turnkey asset
management program (TAMP) provider, is one of the trade
association's largest and oldest active money managers. The
company's mission is to provide investors with competitive returns,
while reducing risk through the use of dynamic risk management,
strategic diversification, and cutting-edge technology and support
services. For more information, visit www.flexibleplan.com.
Disclosures
As of the most recent prospectus, the expense ratios for the
Gold Bullion Strategy Fund are as follows: Investors' Class
(No Load), 1.66%; Class A, 1.66%; Class C, 2.41%.
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.
An investor should consider the investment objectives, risks,
charges and expenses of The Gold Bullion Strategy Fund before
investing. This and other information can be found in the Fund's
prospectus, which can be obtained by calling 1-855-650-7453. The
prospectus should be read carefully prior to investing in The Gold
Bullion Strategy Fund.
There is no guarantee that The Gold Bullion Strategy Fund will
achieve its investment objectives.
Flexible Plan Investments, Ltd. serves as investment
sub-advisor to The Gold Bullion Strategy Fund, distributed by Ceros
Financial Services, Inc. (member FINRA). Ceros Financial Services,
Inc. and Flexible Plan Investments, Ltd. are not affiliated
entities. Advisors Preferred, LLC is the Fund's investment
adviser. Advisors Preferred, LLC is a wholly-owned subsidiary of
Ceros Financial Services, Inc.
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.
Contact:
Brian Humphrey, Advisors Preferred
LLC 888-572-8868
bhumphrey@advisorspreferred.com
SOURCE Advisors Preferred, LLC