From the SEC report above:

According to Applicants, the Fund’s current portfolio includes swap instruments (the “Swaps”) for which Infinity Q calculates fair value using models provided by a third-party pricing vendor.

Applicants state that on February 18, 2021, based on information learned by the Commission staff and shared with Infinity Q, Infinity Q informed the Fund that Infinity Q’s Chief Investment Officer had been adjusting certain parameters within the third-party pricing model that affected the valuation of the Swaps.

Aren't annual audits for the mutual fund supposed to uncover this? Or were they just looking at the cooked books?
Would ETF (transparent ones) format prevent this as pricing discrepancies would be seen more immediately on a day-to-day basis?

@WABAC - have you sold all of your bond funds on the expectation of a rise in rates? I'm just trying to understand why anyone would do this while those who control the rates indicate no interest or reason for doing so at this time. I read the articles and I've listened to all the chatter and I just don't see what indications are pointing to a need for disposing bond funds.

Rates can go up even if the Fed isn't actively raising them. Rates will go up if the bonds don't sell.
I found this article this morning.

The 10-year U.S. Treasury yield topped the 1.49% level on Thursday morning, its highest level in more than a year. . .
. . . The move higher in rates is unnerving investors fearing inflation could be driving it instead of just the economy recovering. The 10-year yield ended January at 1.09%. It closed 2020 well under 1%. So it’s moved more than a half percentage point in under two months, quite rapid for the bond market and relative to rates at these historically low levels.

I don't particularly like bond funds. So rather than watch some remarkable gains -- for bonds -- evaporate, I decided to sell. When I'm ahead 8% on a TIPs index fund it's no fun for me to watch the drip, drip, drip. And so on with the other funds, even if the returns were smaller.
I still have assets that will do well if inflation explodes. FFRHX has been going up while my other bond funds have been going down. MERKX has shown signs of life. But so far, there aren't any wins to lock in.
I might move into ultra-short bond funds if they offer any improvement over Vanguard's money-market settlement fund.
I'm late on reexamining, and re-balancing, my portfolio for the year. For the past 14-15 months I have been as completely invested as I have been for a while. So this season I have been taking some profits, closing positions I no longer have faith in, and generally raising cash.

Follow-up articles on the etf:
https://www.etftrends.com/humankind-investments-launches-first-sustainable-etf-hknd/
https://finance.yahoo.com/finance/news/humankind-investments-launches-first-sustainable-143000573.html

As of 10:45 this morning Bloomberg is displaying a 1.49% yield on the 10-Year treasury bond. (Story from CNBC) The equity market doesn’t appear to like it very much. If you own intermediate term bonds (5 year duration) you’ll loose a bit, but equity investors may take a much larger hit if rates continue to rise. (conjecture, of course).
Running into equities to avoid the bond risk might amount to burning down the house to get rid of the mice. Keep in mind that as your bond / bond fund loses paper “value”, the rate of interest you are being paid increases. So it’s a 2-way street for those on the short-intermediate end of the curve.
Good thread from @Sven re Munger’s take on bitcoin. I tend to agree with Charlie. https://www.mutualfundobserver.com/discuss/discussion/57794/munger-on-bitcoin
Yesterday GameStop’s stock price rose over 100% in a single day. That kind of speculative erotism amounts to gambling. I also fear it points to a lot of “froth” in other areas / asset classes. Which ones? That’s the puzzle.

One might expect that this etf will obtain investment flows. Will the etf find the "Robinhood" run? Fidelity indicates at this time, that options are not available. I consider this a positive for a somewhat more normal (whatever normal is today for the traders) flow of investment monies.
Humankind, home page overview including prospectus.

Having a large cash allows him to be tactical when opportunities present themselves. He talked about the stressful time in March when the team vetted through new companies in shorter timeframe and to build positions quickly. When one can buy companies with solid balance sheets at depressed prices, downside risk is greatly reduced. Utility stocks and GE are such examples. His mindfulness on risk management is under appreciated. Kinda like what Buffet did with BOA in 2008 and paid out nicely years later. In a 10 years period the fund was able to out-performed S&P500 while having lower drawdown. What more can you ask for?

List of holdings- all 16 pages- that's a lot of companies to being assessing.
https://devxuryre6186.cloudfront.net/holdings.pdf

One of the individuals used to work at Vanguard.
James Katz - Chief Executive Officer and Chief Compliance Officer, Humankind Investments LLC (since 2019); Quantitative Equity Analyst, Data Scientist, Vanguard (2016-2018)

Thought it was another gimmick at first, but this one seems legit, especially with a low 0.11% expense ratio. Too often these ESG funds take advantage of good-intentioned investors to gouge them price wise which seems hypocritical to their entire mission. But this one has a reasonable mission, eliminate the worst corporate actors from the portfolio while trying to change or improve the remaining ones through shareholder activism: https://humankind.co/mission

How We Create Impact
Investors seeking to promote more responsible corporate behavior can wield power in two ways:
a) By investing more money in and providing more capital to companies that create greater positive value for humanity
b) By utilizing the rights associated with stock ownership to promote company policies that positively impact humanity
At Humankind Investments we aim to do both of those things for you. We do the socially responsible research, so you don't have to. Then we invest in the companies that, according to our research, offer the greatest potential returns for humanity and our clients. We also keep track of opportunities to use your corporate voting power to positively influence company policy.
We believe that an investment made through us is an investment made in your and humanity’s future.

https://www.sec.gov/Archives/edgar/data/1821080/000158064221000749/humankind497.htm
Registration filing:
https://www.sec.gov/Archives/edgar/data/1821080/000114036121004727/brhc10020262_n1aa.htm

@JonGaltIII. You are correct about FSMAX. It is a small/mid cap blend fund and in that category it actually is in the top 10% for performance. I hold the equivalent of this fund in my 401k and am very pleased with it.

Nah. When someone posts a query the likes of
\\ Would our population be growing or shrinking without immigration?
let them also figure out what that lookupable abbreviation might mean.
There is even a site:
https://lmgtfy.app/#gsc.tab=0
and its first return was
https://www.nytimes.com/2019/04/18/upshot/how-much-slower-would-the-us-grow-without-immigration-in-many-places-a-lot.html

Very disturbing news.
I'm invested in the fund through Schwab and several weeks ago received at least 15 statement letters in the mail notating adjustments to the closing nav
Thought that kind of strange and that with the vaccine development sold off 90% of my holdings in iqdax but still hold approx $25k. Maybe I should say what my account says I hold
I'm sure by the time the class action law suits are settled and the sell down of the fund it will be notably less. Hard to believe the fund manager would play make believe with the valuations of the holdings
Always knew it was kinda black boxey and I could deal with a large drawdown due to black swan bad investment but not fraud bullspit
I know it's a reach but have to say I'm concerned about tmsrx as they are big into derivatives and swaps etc. Of course t rowe is very reputable but so was Lehman and aig and bear stearns etc
Someone said keep it simple. Probably right
Best
Baseball Fan

Really clear and concise statement of his views on the market. A great read. I was particularly intrigued by his discussion on FISERV which I now want to consider as an investment. Does anyone know how many times a year PRWCX releases its full portfolio holdings? I see they do their top 10. holdings monthly.

Great quote from Charlie Munger

Another shareholder asked Munger whether the Daily Journal would follow Tesla’s lead and put bitcoin on the balance sheet. “We will not be following Tesla into bitcoin,” Munger replied flatly.
In the meeting Munger delivered plenty of more burns and digs at cryptocurrency, investment bankers (“they’ll sell shit as long as shit can be sold”) as well as brokers like Robinhood (“dirty way to make money”).

https://finance.yahoo.com/news/munger-recommends-not-buying-bitcoin-by-quoting-oscar-wilde-195247281.html

From the Institutional Investor:
https://institutionalinvestor.com/article/b1qphp8ytrkv20/Months-Before-SEC-Investigation-Infinity-Q-s-CIO-Touted-Strong-Performance
"In September 2019, the Texas Municipal Retirement System allocated $125 million to the firm’s volatility alpha fund, meeting minutes show. The State Teachers Retirement System of Ohio also lists Infinity Q among its investment managers, a 2020 annual report shows."

...Oh, now I see what you meant. :)
At the end of of 2020 cash was at 12%. I’m thinking he’s raised that over the past 1-2 months just looking at the lagging performance.

+1.

+1.

12% cash???? That might very well account for the lagging performance.

Doubt it. He typically carries a lot of cash. Was up around 30% cash just before the mini-crash last February. And paid off handsomly. But I suspect he’s way over that 12% at this time. If so, that would explain the performance.
FWIW - D&C has overweighted financials for years. Paid a big price too in subpar performance, But this year DODBX is stomping PRWCX. I don’t think this proves anything except that investment trends come and go. With rising rates financials are doing better.
Disclosure: I own both funds, but have more in DODBX.