ALL SEASONS FUND: NOVEMBER 2022 – COMMENTARY LETTER
For the month of November, the All Seasons Fund was +4.32%.
Market Review
Global equity markets rallied through the month end. On the last day of November, Federal Reserve Chairman Powell signaled a downshift in the pace of tightening interest rates. Midterm elections were also held with Republicans winning a majority in the House and Democrats retaining control of the Senate.
Geopolitics has a continued hold on markets. The war in Ukraine, global inflation, and China’s Zero Covid policy may have moved markets on a daily basis. In particular, China’s loosening of Zero Covid policy seemed to propel China’s Hang Seng Index to its best monthly performance in 24 years (October 1998).
The yield on the U.S. 10-year Treasury is now lower than its October peak and below 4%. However, the yield curve remains inverted which may be a cause for recession concern among many market participants. However, with earnings season concluding with a slight increase in Q3 2022 and the volatility index subsiding, we believe markets have generally reverted to a risk-on environment. We believe this may lead to ongoing higher risk environment in the months to come.
The All Seasons Fund remains positive for the year with equities and bonds both down double digits in percentage terms. 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.
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 (09/30/2022) Fund Inception (02/01/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| UNAVX | 16.42% | 5.62% | 7.71% | 10.50% |
| S&P 500 Index | -15.47% | 9.24% | 11.70% | 7.89% |
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
