QE Funds Corp.

QE Funds Corp.

November 26, 2010 16:48 ET

QE Funds Corp. Announces Simplified Prospectus Filed for Qwest Inflation-Deflation Trend Allocation Class

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 26, 2010) - QE Funds Corp. is pleased to announce that on November 25, 2010, it filed a simplified prospectus for the initial public offering of Series A and F shares of Qwest Inflation-Deflation Trend Allocation Class (the "Fund"). Qwest Investment Fund Management Ltd. has been retained as the Portfolio Advisor (the "Advisor") and Mr. Cam Hui, Portfolio Manager, will be managing the Fund's portfolio.

Capitalizing on Economic Volatility

Mr. Maurice Levesque, Managing Director, President of Qwest Investment Management ("Qwest") said, "Investors around the world have been challenged by the volatility stemming from significant outbreaks of asset inflation and deflation. Prominent economists and investors remain completely divided in their opinions on the macro-economic outlook. Individual investors will be faced with volatile swings in the markets in the years ahead and will need to know when these major trends change and what assets will respond positively to the change in trend." In response to this investment environment, Mr. Hui developed and launched, in 2009, the Qwest Inflation-Deflation Timer Model (the "Timer Model"), a proprietary quantitative investment model used to identify inflation and deflation trend changes. Mr. Hui explained, "I will use the trend signals from the Timer Model to allocate the Fund's assets into specific asset classes that traditionally respond positively during an inflation trend, a deflation trend or a neutral trend."

About the Fund

Utilizing signals from the Timer Model, the Fund will generally allocate the portfolio into assets as follows:

  • During inflation trends, the Fund would mainly 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 the Fund with exposure to these types of securities, and derivatives or other investments that provide the Fund with exposure to gold in a manner permitted by applicable securities laws;
  • During a neutral trend, the Fund would mainly invest in Equity securities and securities of equity-related ETFs listed on a stock exchange in Canada or the United States, largely because we believe that the economic environment is relatively benign under these circumstances; and
  • During a deflation trend, the Fund would mainly invest in fixed income securities issued by the United States Treasury, and securities of ETFs listed on a stock exchange in Canada or the United States that provide the Fund with exposure to fixed income securities issued by the United States Treasury because default-free U.S. Dollar assets remain the safe haven of choice in a deflationary financial crisis.

Asked about being able to time the market, Mr. Hui said, "Our Timer Model is a trend following model and it is not designed to identify the exact peak or bottom of the market, but rather, confirm a trend. We are not market timers, we are trying to protect asset value and make money during periods of inflation or deflation."

About Cam Hui, Portfolio Manager

Mr. Hui has broad business experience, knowledge and insight, as well as a diverse background in investment management, equity quantitative research and experience in all phases of investment processes.

Prior to joining Qwest, Cam was employed by Merrill Lynch, Pierce, Fenner & Smith in New York City as a Relative Value and Technical Research Analyst. Mr. Hui also has extensive portfolio management experience managing equity long-short portfolios at Graham Capital Management LLC, a Connecticut based hedge fund. He was also a portfolio manager with the Boston based Batterymarch organization for over ten years, first with Batterymarch: Canada and then with Batterymarch Financial Management, where he managed Canadian, U.S., international and emerging market equity portfolios using mainly quantitative modeling techniques. During his tenure at Batterymarch, notable large public sector clients whose portfolios he managed included Ontario Teachers' Pension Plan and California State Teachers' Retirement System. Prior to Batterymarch, Mr. Hui was an equity analyst specializing in quantitative analysis and small capitalization stock research for Wood Gundy Inc. (now CIBC World Markets).

About Qwest

Qwest Investment Management Corp. is an investment management firm which specializes in identifying and structuring investment products in those sectors of the global capital markets in which it has experience and expertise.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

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