ALL SEASONS FUND: OCTOBER 2023 – COMMENTARY LETTER
The All Seasons Fund ended the month of October with a return of -1.01%.
Market Review
U.S. equities fell for a third straight month, with the S&P 500 and Nasdaq declining more than 10% from their July peak year-to-date. Small cap stocks took the brunt of losses as the equal-weight S&P 500 was down mid-double digits on the year. The bond market also declined with a notable steepening of the yield curve. 10-year and 30-year yields were both higher by 30 basis points.
The retreat of stocks and bonds may indicate markets have yet to fully digest the possibility of the Federal Reserve maintaining higher rates for longer. More importantly, it is another data point whereby a portfolio of stocks and bonds offered real diversification.
Looking forward, November offers a slew of economic data in the remaining Q3 2023 earnings season. As of this writing, there have been no bolt-from-the-blue surprises, and stocks have generally moved higher. As global tensions increase with wars flaring in the Middle East and Eastern Europe, the path forward remains uncertain. We believe the risk mitigation embedded in our fund strategy may offer a compelling alternative investment with this global uncertainty.
Based on this deluge of data and varying opinions, the fund strategy takes no position. The strategy takes positions when short-term opportunities present themselves, and the risk is insignificant for large drawdowns. The strategy is based on mathematical principles around the movement of broadly-based indices. While the fund is modestly higher year-to-date as of this writing, we believe the next several months and years will offer continued opportunities with the potential for higher volatility across asset classes. We believe the last 20 years will unlikely look like the next 20 years in this higher-rate environment.
Very truly 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 (9/30/2023) Fund Inception (02/01/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| UNAVX | 6.20% | 3.87% | 6.97% | 10.29% |
| S&P 500 Index | 21.62% | 9.92% | 11.91% | 8.49% |
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 3.26% and 1.99%. The advisor has contractually agreed to limit expenses to 1.96% of the average net assets of the Fund through 7/31/2024.
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.
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
