iQ Income Fund Model
IMPORTANT! In any given 3-month period, the iQ Income Fund Model can be heavily allocated to money market / equivalents.
INVESTMENT OBJECTIVE
The iQ Income Fund Model seeks to select top-performing bond mutual funds using a rules-based strategy, while managing risks related to market fluctuations and interest rates.
RULES-BASED PROCESS
The iQ Income Fund Model selects the five bond mutual funds by utilizing the following time-tested and rules-based strategy.
Begin with a starting universe of all bond mutual funds that are NTF (no transaction fee) on most of our members’ platforms
Sort by 8-month exponential price momentum and select the top twenty-five
Sort the remaining mutual funds by 24-month Relative Strength Index (RSI) and select the most attractive five income mutual funds.
As a hedge, move to 100% money market position based on the 14-day Stochastic Indicator level for domestic bond indices.
Potential Benefits of the iQ Income Fund Model.
The iQ Income Fund Model offers the following potential benefits:
Momentum-Based Filtering: Employs an 8-month exponential price momentum strategy to identify the top twenty-five funds, focusing on recent performance trends for selection.
Refined by Relative Strength Index (RSI): Further refines the selection by employing a 24-month RSI, isolating the top five income mutual funds with the strongest historical performance.
Dynamic Risk Management: Integrates a hedge strategy using a 14-day Stochastic Indicator to shift to a 100% money market position in response to adverse market conditions, enhancing risk mitigation.
Compatibility with Platforms: The focus on NTF funds on popular platforms increases accessibility and reduces transaction costs for clients.
Quantitative Strategy Assurance: The model's reliance on time-tested, rules-based strategies provides a systematic and disciplined approach to fund selection, reducing emotional or biased decision-making.
Potential for Superior Returns: By combining momentum and strength metrics, the model is designed to select funds with the potential for superior returns in the bond market.
The iQ Income Fund Model is subject to market, interest rate, and credit risks, with no guarantee that past performance metrics or hedging strategies will accurately predict future results or effectively mitigate market downturns.