ALL SEASONS FUND: JANUARY 2025 – COMMENTARY LETTER
The All Seasons Fund ended the month of January with a return of 1.22%.
Market Review
U.S. equities were higher in January with the equal-weighted S&P notably outperforming the index by over 0.70% after several years of significant underperformance. In short, the AI-growth narrative that has fueled mega-cap technology stocks faced a setback as China’s seemingly affordable DeepSeek AI model triggered a selloff in AI-related stocks. This led to more scrutiny around 1) the spending models and pricing power in U.S. tech and 2) the stretched price valuations in U.S. tech. We believe the cost savings and breakthroughs of DeepSeek are overstated, but create real concerns around current U.S. equity valuations.
The advent of the second Trump administration dominated headlines this month. New U.S. tariffs were announced on Mexico and Canada (25%) and 10% on China. Additionally, President Trump noted tariffs on chips, steel, aluminum, and copper in the near future and mentioned he has not settled on a universal tariff rate. He did suggest, though, it will be “much bigger” than the initial 2.5% Treasury Secretary Bessent reportedly favored.
The January FOMC meeting resulted in no changes to the benchmark rates, which remained at 4.25-4.50%. It was mostly an uneventful meeting and press conference with the market not expecting another rate cut until June. At the press conference, Chair Powell mentioned the Fed is in no hurry to make changes as recent inflation readings have been good and could get help from easing shelter inflation. Analysts generally see an extended hold from the Fed moving forward, though some say in-line inflation readings possibly leading to cuts by midyear.
Turning to economic data, December core CPI came in slightly ahead of consensus, while headline was slightly below. Analysts believe the core CPI inflation trend is still slowing toward the FOMC’s target, particularly after December, when the PPI came in cooler than expected. It should be noted, though, December nonfarm payrolls were much hotter than expected, printing growth of 256k jobs vs consensus estimates between 150k-160k, with the unemployment rate ticking down to 4.1%.
We believe the events of January kicked off a period of less certainty in markets and ostensibly higher market volatility. This may be an opportunity to invest in The All Seasons fund which seeks capital appreciation in all economic cycles. The portfolio managers have met this mandate since taking on management of the fund in late 2020. The fund was positive during the bull markets in 2021, 2023, and 2024, and positive during the bear market in 2022. We believe the fund offers investors the opportunity for positive returns independent of broader equity and bond market moves.
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.
Fund Objective:
The Fund seeks capital appreciation in all economic cycles.
Standardized performance as of (12/31/2024) Fund Inception (2/01/2002)
| 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
| UNAVX | 6.76% | 5.69% | 3.87% | 6.13% | 10.15% |
| S&P 500 Index | 25.02% | 8.94% | 14.53% | 13.10% | 9.59% |
| S&P 500 Target Risk Conservative Index (TR) | 6.59% | 0.57% | 3.21% | 4.02% | 4.83% |
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 expenses are 2.65% and 1.96%.
The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement (but does not include: front-end or contingent deferred loads, shareholder servicing plan fees, taxes, borrowing costs such as interest and dividends on short positions, brokerage fees and commissions, acquired fund fees and expenses, extraordinary expenses such as litigation expenses (which may include indemnification of Fund officers and Trustees, contractual indemnification of Fund service providers (other than the Adviser)) and class-specific expenses like distribution (12b-1) fees) will not exceed 1.96% of the Fund’s average daily net assets for each share class.”
Definitions:
Bull: A bull is an investor who thinks the market, a specific security, or an industry is poised to rise. Investors who adopt a bull approach purchase securities under the assumption that they can sell them later at a higher price.
The S&P 500 Index: An unmanaged composite of 500 large capitalization companies. Professional investors widely use this index as a performance benchmark for large-cap stocks. You cannot invest directly in an index.
The S&P Target Risk Conservative Index: Designed to measure the performance of conservative stock-bond allocations to fixed income, seeking to produce a current income stream and avoid excessive volatility of returns. Equities are included to protect long-term purchasing power.
Performance data quoted prior to October 13, 2017 represents the past performance of the Goldman Navigator Fund, L.P., a limited partnership (the “Predecessor Partnership”). From its inception on February 1, 2002, through October 13, 2017, the Predecessor Partnership maintained investment policies, objectives, guidelines, and restrictions that were, in all material respects, equivalent to those of the Fund. The Predecessor Partnership was not registered under the 1940 Act, and was not subject to certain investment limitations, diversification requirements, and other restrictions imposed by the 1940 Act and the Internal Revenue Code of 1986, as amended (the “Code”), which, if applicable, may have adversely affected its performance. On a going-forward basis after October 13, 2017, the Fund’s performance will be calculated using the standard formula set forth in rules promulgated by the SEC, which differs in certain respects from the methods used to compute total returns for the Predecessor Partnership. Please refer to the Financial Statements section of the Fund’s SAI to review additional information regarding the Predecessor Partnership. The Navigator Fund name was changed to the All Seasons Fund on July 21st, 2021. Past performance is no guarantee of future results.
SYMBOL: UNAVX
