ALL SEASONS FUND: SEPTEMBER 2021 – COMMENTARY LETTER
For the month of September, the All Seasons Fund lost -5.07%.
Market Review
September global equity markets were down as several risk factors weighed on the rally. The political and regulatory risk environment in China spread beyond technology stocks. China proposed greater oversight on of the casino stocks in Macau which were down sharply mid-month. This put a damper on potential Western investment in China with an uncertain outcome. Further, China’s Evergrande developer crisis raised concerns of potential contagion to other frothy real estate markets around the world. In short, markets were weighed by concerns about whether the risks were mainly regional or widespread.
In the United States, politicians continued to debate whether to raise the debt ceiling. This created fear of a default. Congress did pass a stopgap spending bill that will keep the government open until December 3rd. This extension is occurring with ongoing debate around President Biden’s stimulus initiatives, and implied volatility for November is higher than near-term volatility as a result.
On the economic front, Federal Reserve Chair Jerome Powell said the tapering could begin as soon as the next meeting and did not refer to the recent inflationary pressures as “transitory”. This added further headwinds to an uncertain equities market and sent the 10 Year Yield higher.
Despite a down month for the Fund, the Fund seeks less or negatively correlation in bear markets. While September is only one month, we believe the increase in market uncertainty potentially offers opportunities for our tactical strategy or an alternative to long-only equity Funds.
Sincerely yours,
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Share prices and investment returns fluctuate and an investor’s shares may be worth more or less than the original cost upon redemption. For performance data as of the most recent month-end please call 1-866-264-8783.
Fund Objective:
The All Seasons Fund seeks capital appreciation and preservation with lower volatility throughout market cycles. The resulting portfolio targets a high correlation to the S&P 500 in bull markets and a lower, or negative, correlation in bear markets.
Standardized performance as of (09/30/2021) Fund Inception (02/01/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| UNAVX | -4.11% | 5.33% | 6.81% | 10.20% |
| S&P 500 Index | 30.00% | 16.90% | 16.63% | 9.24% |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense 2.36% and 2.01%. The advisor has contractually agreed to limit expenses to 1.99% of the average net assets of the Fund through 7/31/2022.
Definitions:
The S&P 500 Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large-cap stocks. You cannot invest directly in an index.
SYMBOL: UNAVX
