ALL SEASONS FUND: Q2 2025 – QUARTERLY COMMENTARY LETTER
The All Seasons Fund ended the second quarter of 2025 at +3.47%.
Market Review
The second quarter of 2025 illustrated the fragile risks in the current equity markets. The All Seasons fund performed positively, with a relatively modest maximum drawdown during the throes of April’s volatility in particular.
The fund seeks positive performance in all economic cycles. We believe the recent sell-off revealed that many portfolios are “swimming naked,” albeit with the June counter rally bailing out many of them. Below is a recap of the last three months and what we expect going forward.
Sharp Drawdown: “Liberation Day” Tariff Shock (Early April)
- April 2 – President Trump announced sweeping “Liberation Day” tariffs: a 10% baseline and higher levies on imports from China, Canada, the EU, and others, including as much as 34% on Chinese goods and 25% on autos and steel.
- The market reaction was swift and brutal:
- S&P 500 fell over 10% in just two days, marking the worst weekly drop since the COVID-19 crash of March 2020.
- Nasdaq plunged ~11%, and the Dow dropped more than 9%, wiping out roughly $6.6 trillion in market value.
Recovery: Tactics and Reversals
- Policy rollbacks and pauses: Markets began reversing course when Trump delayed implementation and softened his stance, initiating a 90-day pause and beginning discussions with trade partners.
- TACO trade: The “Trump Always Chickens Out” thesis gained traction, with investors betting on tariff de-escalation.
- By mid-May, the S&P 500 erased losses and returned to flat for the year, ultimately closing Q2 at new highs, just days before quarter-end.
Quarter in Review
Themes & Takeaways
- Volatility reigns supreme – The quarter highlighted how quickly equities can be derailed by geopolitical shocks.
- Policy uncertainty dominated. Each wave of tariff headlines hit sentiment hard, yet reversals sparked sharp rebounds.
- Buy-the-dip discipline paid off. Cautious investors who stayed through April’s turmoil reaped gains as markets soared again.
- TACO trade resilience: The idea that Trump’s threats would be softened by economic reality became a self-fulfilling prophecy in Q2.
- Earnings fundamentals survived: Despite tariff pressure, Q2 results held, reinforcing equity strength.
Looking Ahead (Q3 Signals)
- Trade negotiations are critical: Ongoing talks with Japan, the EU, China, and others around the August 1 tariff deadlines will shape Q3.
- Still-volatile waters: While markets seek calm, a misstep in policy or escalation could spark renewed turbulence.
- Macro fundamentals: With the economy holding up and Fed signaling patience, equities currently favor a “muddle-through, risk-on” regime.
- International opportunities: As the dollar weakens amid policy uncertainty, overseas markets currently outperform U.S. equities.
Summary
Q2 2025 was a rollercoaster: a swift, deep drawdown triggered by Trump’s tariff surge, followed by a resilient rebound as policy softened, and closed with equities at fresh highs. The episode reinforced that while headlines can trigger violent market swings, fundamentals and investor conviction ultimately reassert control.
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 (6/30/2025) Fund Inception (2/01/2002)
| 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
| UNAVX | 2.35% | 5.55% | 6.51% | 6.16% | 9.96% |
| S&P 500 Index | 15.16% | 19.71% | 16.64% | 13.65% | 9.66% |
| S&P 500 Target Risk Conservative Index (TR) | 9.50% | 7.44% | 4.13% | 4.60% | 4.98% |
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:
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
