ALL SEASONS FUND: DECEMBER 2022 – COMMENTARY LETTER
The All Seasons Fund was +1.79% in December and was +6.91% in 2022.
Market Review
We are pleased to report positive returns in 2022, an unusually challenging year for both equities and bond markets. Both stocks and bonds were negative for only the second time since the S&P’s inception. Our existing team has spent decades building and implementing the current Fund strategy with a research emphasis on intended robustness in risk management. 2022 was a firm test of our model.
The current All Seasons portfolio management team took the lead on the Fund at the end of 2020. Our mandate was to achieve the goals stated in the prospectus objective: “The Fund seeks capital appreciation and capital preservation with lower volatility throughout market cycles – highly correlated with the Standard & Poor’s (“S&P”) 500® Index in bull markets, and less or negatively correlated in bear markets.”
Since the current portfolio management team took the helm, we have fulfilled our Fund objective with double-digit gains in the bull market of 2021 and high single-digit gains in the bear market of 2022. However, we believe this is only the beginning of accomplishing our long-term mission. We look forward to the opportunity to meet our Fund objective with investors in the years and decades to follow.
The management team will continue to focus its quantitative research on reducing risk and decreasing correlation in down equity and bond markets. While the Fund strategy uses inputs such as (but not limited to) price movement, volume, and implied option prices to drive its buy and sell signals, we are constantly scouring the market landscape for other signals that may further benefit our return stream. Above all, we value our investors and their expectations. Therefore, we will continue to work diligently to meet the fund objectives.
We are grateful for our investors and interest from all parties in our strategy and Fund. Please let us know how we can serve you better.
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.
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 (12/31/2022) Fund Inception (02/01/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| UNAVX | 6.91% | 5.50% | 8.38% | 10.65% |
| S&P 500 Index | -18.11% | 9.42% | 12.56% | 8.17% |
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 3.46% and 2.00%. The advisor has contractually agreed to limit expenses to 1.99% of the average net assets of the Fund through 7/31/2023.
Definitions:
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.
SYMBOL: UNAVX
