Qwest Funds Corp. - Qwest Inflation-Deflation Trend Allocation Class
Qwest Inflation-Deflation Trend Allocation ClassQwest Inflation-Deflation Trend Allocation Class ("QIDTA") is part of Qwest Funds Corp.'s corporate class mutual fund family and, as such, can be switched with our Qwest Energy Canadian Resource Class mutual fund with no capital gain tax being triggered.
Investment ObjectiveThe fundamental investment objective of QIDTA is to provide long-term capital appreciation by investing primarily in investments that provide QIDTA with exposure to a diversified portfolio of equity and fixed income securities of companies, governments and other issuers located around the world. QIDTA will allocate its investments based principally on the Qwest Asset Inflation-Deflation Trend Model, a proprietary quantitative investment model developed by the portfolio adviser.
Investment StrategiesQIDTA will generally allocate the assets of the fund among the following asset classes based principally on the Qwest Asset Inflation-Deflation Trend Model (the "Trend Model"), a proprietary quantitative investment model developed by the portfolio manager:
Investment ProcessWe use our Trend Model signals to identify a trend change in commodity and equity prices. During a risk-on signal, we look for equity prices to be in an uptrend and bond prices to be in downtrend. During a risk-off trend, we look for bond prices to be in an uptrend and equity prices to be in a downtrend. Our Trend Model signals act as a "trigger" to adjust asset class exposure in a portfolio. Our aim is not to forecast or predict specific price levels, but rather, know when to adjust asset classes based the Trend Model's signals.
Investment PhilosophyWe believe that equity markets are currently in the middle of a long sideways, or range-bound, market phase. We believe this sideways market commenced in 2000 and will persist until the end of this decade. Over the last 100 years bull and sideways market phases have repeated themselves on many occasions. The last completed sideways market phase occurred from 1966 to 1982. Click here for a complete overview of past sideways markets
Performance BenchmarkOur objective is to outperform a typical balanced fund (i.e. 60% equities/40% bonds) by using our Trend Model signals to adjust asset classes based on an emerging trend.
Utilizing signals from the Trend Model, QIDTA will generally allocate the portfolio into assets as follows:
- During a risk-on trend, QIDTA may invest in inflation protected fixed-income securities or ETFs holding inflation protected fixed income securities, equity securities of companies engaged in resource extraction activities, equity securities of issuers located in emerging markets and securities of ETFs that provide exposure to these types of securities.
- During a neutral trend, QIDTA may invest in equity securities and securities of equity-related ETFs listed on a stock exchange in Canada or the United States, and in fixed income securities or ETFs holding fixed income securities.
- During a risk-off trend, QIDTA may invest in fixed income securities issued by the United States Treasury, and ETFs listed on a stock exchange in Canada or the United States that provide exposure to fixed income securities issued by the United States Treasury.
Portfolio Management TeamQIDTA has retained Qwest Investment Fund Management Ltd.'s quant team to provide investment advisory services and fund management services to QIDTA. Mr. Cam Hui, Portfolio Manager, manages QIDTA.
Click here for Mr. Hui's biography.