ALL SEASONS FUND: NOVEMBER 2024 – COMMENTARY LETTER
The All Seasons Fund ended the month of November with a return of +1.57%.
Market Review
US equities staged a post-election rally in November, with all major equity indices moving higher. The rapid and conclusive Republican sweep of the White House and both chambers of Congress created expectations that the new administration may swiftly enact policy changes.
Trump ran on lower taxes, higher tariffs, and government deregulation that we believe fostered hope for economic growth, but uncertainty around the ramifications of these changes to inflation remains uncertain. There are also no guarantees that Trump’s policies will make it through narrowly controlled Republican majorities in the House and Senate. The mixed reception to Trump’s Cabinet nominees may spell a more fractured Congress than expected.
In our opinion, the other major story of the month was the Federal Reserve cutting rates by twenty-five basis points and providing guidance forward. The key words from Federal Reserve Chair Powell were around the labor market normalizing and inflation cooling which he expects to continue. The Federal Reserve’s dual mandate is maximum employment with stable prices, but this has not yet been achieved.
We believe current equity valuations are on the high side by most valuation metrics, and there is little room for error as we advance with inflation. There is a Wall Street saying that ‘when the last doubters throw in the towel, the bull market will end’. In our opinion, wholesale optimism and greed seem rampant across markets. It may be time for equity bulls to take some money off the table.
We believe the All Seasons Fund offers an alternative return stream to equities that may provide positive returns even in a bear market. The Fund seeks positive returns in all economic environments. For example, since its 2002 inception, the S&P has had four down calendar years. The All Seasons fund was positive in three out of four years.
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 (9/30/2024) Fund Inception (2/01/2002)
| 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
| UNAVX | 8.01% | 10.12% | 5.05% | 6.34% | 10.19% |
| S&P 500 Index | 36.35% | 11.91% | 15.98% | 13.38% | 9.59% |
| S&P 500 Target Risk Conservative Index (TR) | 17.48% | 1.96% | 4.18% | 4.37% | 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:
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
