ALL SEASONS FUND: JULY 2024 – COMMENTARY LETTER
The All Seasons Fund ended the month of July with a return of -2.05%.
Market Review
In July, equity prices experienced a rotational shift of the market leaders from mega-cap technology stocks to small-cap stocks. Based on implied Fed Fund futures markets, signs of cooling inflation and a weaker jobs market increased the odds of a Federal Reserve rate cut this year and increased the likelihood of an economic soft landing. This July-specific change in investor sentiment has been dubbed “The Great Rotation.”
Thus far, August markets indicate little follow-through on major leadership changes away from mega-cap to small-cap stocks. We believe the important lesson from July is that markets are dynamic, and the current trends, whatever they may be, can change rapidly in a month’s time. In this case, the sky-high expectations for mega-cap quarterly earnings did not help the bull investors’ case.
The bond market’s two- and 10-year Treasury yields fell 46 and 32 basis points, respectively. The yield curve also became less inverted over the month. Moreover, Federal Reserve Chair Jerome Powell left a September rate cut firmly on the table, which bodes well for a soft economic landing. After the Producer Price Index and Consumer Price Index releases in mid-August, we believe the Fed will cut by at least twenty-five basis points in September.
As markets move into the historically volatile presidential election cycle, options prices suggest slightly higher volatility through the November election. The All Seasons fund typically has more actionable trading opportunities in higher-volatility environments. In any case, we remain true to the Fund objective across all markets.
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 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.
Standardized performance as of (6/30/2024) Fund Inception (02/01/2002)
| 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
| UNAVX | 4.99% | 9.49% | 5.24% | 6.43% | 10.32% |
| S&P 500 Index | 24.56% | 10.01% | 15.05% | 12.86% | 9.42% |
| S&P 500 Target Risk Conservative Index (TR) | 7.96% | 0.03% | 3.42% | 3.68% | 4.78% |
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 2.04%.
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 2.04% 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.
Volatility – The degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.
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
