VICE FUND: APRIL 2024 – COMMENTARY LETTER
The Vice Fund ended the month of April with a return of -2.14%.
Market Review
In April, inflation data came in hotter than expected, and US equities sold off in mid-to-high single digits. During the final quarter of 2023, the Fed fund futures markets priced in three rate cuts in 2024. After April’s data, markets expect only one twenty-five basis point cut, if any, by year-end.
In our view, combining a less dovish Fed in 2024 and fears of slowing economic growth led some investors to believe a stagnant economy with high inflation was possible. Further, Iran launched hundreds of drones and missiles in a tit-for-tat response to an Iranian general killed by Israel. An increasingly less globalized economy remains another inflationary risk if the wars in Ukraine and Gaza spread. However, we expect investors to focus on earnings results in May. While these developments may bolster the fund’s military defense stock positions, they may slow the growth of consumer cyclical stocks like the fund’s casino holdings.
The Vice Fund remains committed to its core belief that certain stocks are undervalued because certain factions of society deem them morally questionable. Our core holdings remain military defense, casino, alcohol, and tobacco stocks because they typically have an inelastic customer base that is unlikely to be swayed by whether the product price rises or falls.
Sincerely yours,
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.
Standardized performance as of (3/31/2024) Fund Inception (08/30/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| VICEX | -1.44% | 2.33% | 3.70% | 7.60% |
| MSCI World Index | 23.81% | 11.45% | 9.22% | 10.80% |
Investor Class 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 are 1.98% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2024, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.
DEFINITIONS:
The MSCI All Country World Index Total Return (“MSCI ACWI TR”) captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.
The S&P 500 Index: 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.
Volatility – The degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.
SYMBOL: VICEX
