Investment Strategy Seeks investment results that correspond generally to the performance of the A.I. Quality Value Momentum Index (AIQVM), before fees and expenses.
The AIQVM Index is based on the analysis and expertise of Ford Equity Research, long time leaders in factor-based investment strategies. As the name implies, the QVM strategy relies on a Tri-Factor approach of stock selection through a combination of quality, value, and momentum. The use of quality metrics attempts to provide defensive characteristics to the portfolio by reducing historical volatility and mitigating losses during market declines. Value and momentum factors have been known to complement one another. By including a mix of stocks that are relatively undervalued and stocks whose prices are exhibiting long term momentum, the QVM strategy takes a diversified approach for seeking equity gains during market advances.
The AIQVM Index uses a Tri-FactorTM approach to provide equally weighted exposure to 50 equities at the intersection of Quality, Value and Momentum.
Fund Highlights
Core equity strategy with a strict buy and sell discipline based on multiple investment factors
Equal-weighted to reduce over-exposure to individual securities, as often displayed by cap- weighted indexes
Access to an index strategy based on the expertise of Ford Equity Research
Dynamic Index Construction The AIQVM Index consists of 50 equally weighted domestic equities selected semiannually and rebalanced quarterly. The index constituents are selected from approximately 3,500 companies within the Ford Equity Research universe of stocks that meet minimum liquidity and price standards—three month average daily dollar volume above $1 million and a minimum price of $5 per share.
QVM model inputs are combined to create a ranking score for the stocks that meet the liquidity and price standard. The top 50 stocks based on this ranking are selected as portfolio constituents at the end of January and July, and rebalanced quarterly to maintain equal weighting.
Quality
Value
Momentum
Quality factor scores are based on earnings variability, return on equity, and return of earnings to shareholders in the form of dividends or share buybacks.
Value factor scores are determined by a modified earnings-to-price ratio in which the operating earnings are adjusted to account for unusual and non-recurring items.
Momentum factor scores are based on selecting stocks that are exhibiting price momentum as an indication of market confirmation of long term relative performance.
*Income/Other and Total Distribution may include income, dividends, return of capital, or other forms of payment. Return of capital is considered a return of the investment principal and is not derived from net profits.
Past performance is no guarantee of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.
Past distributions are not indicative of future distributions. There is no guarantee a distribution will occur. Shares of funds are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
