Summary

High headline risk drives indices, choppy underneath

• Major U.S. equity indices ended Q1 2026 mainly lower, with the S&P 500 down 4.33%. While near recent highs, the path was uneven.
• Factor leadership rotated quickly between growth vs. value and large vs. small caps. Sector dispersion increased, creating a high-churn backdrop beneath relatively stable index levels.

Persistent “snapbacks” after sell-offs

• Pullbacks driven by macro headlines or policy repricing were typically short-lived and followed by rapid recoveries.
• Systematic and passive flows, along with entrenched buy-the-dip behavior, continued to compress realized volatility soon after each drawdown.
• This pattern can foster investor complacency even as underlying risks build.

Option skew signaled ongoing downside concern

• Index implied volatility hovered around long-term averages, but downside skew remained elevated.
• Investors showed consistent demand for downside protection despite resilient spot levels, reflecting concern over a larger-than-usual correction.
• The CBOE SKEW Index steepened during sell-offs and only partially normalized during snapbacks.

Elevated volatility of volatility

• Pricing of options on volatility indices and far out-of-the-money options implied heightened uncertainty around the stability of volatility itself.
• Volatility-of-volatility remained above recent years’ norms, indicating markets were willing to pay up for tail protection.
• This created selective opportunities for strategies able to distinguish between genuinely stressed tails and episodically overpriced protection.

All Seasons Fund Positioning and Activity

The Fund focused on:

• Monetizing episodes where implied volatility, skew, or volatility-of-volatility became stretched relative to realized behavior.
• Maintaining hedges against larger systemic shocks despite frequent snapbacks eroding option premiums.

Positioning emphasized:

• Liquidity and diversification across indices, tenors, and strikes.
• Careful management of short-dated risk in the face of fast reversals.
• Emphasis on avoiding very large losses to stay in line with the Fund’s goal of seeking positive returns across all economic environments.
• While this emphasis on large losses has caused several stop losses to trigger before rapid market snapbacks, historically, it has helped the strategy avoid double-digit drawdowns.

Key Risks for the Remainder of 2026

Equities

• Elevated index concentration and rich valuations in select growth and quality names increase vulnerability to adverse earnings or macro surprises.
• A credible catalyst, whether a policy mistake, earnings downturn, or geopolitical shock, could shift the regime from buy-the-dip to sell-the-rally, turning brief air pockets into a more persistent drawdown.
• Even in a correction scenario, mechanical and passive flows may still drive sharp countertrend rallies, keeping the equity return path nonlinear and volatility episodes abrupt.

Bonds and cross-asset

• Uncertainty around the inflation and policy-rate path may sustain elevated rate volatility and an unstable yield curve shape.
• Traditional stock-bond diversification is less reliable if inflation or policy shocks cause equity and duration risk to move together.
• Credit markets could face spread widening if growth slows, even as government yields decline, complicating risk-off positioning.
• In this backdrop, maintaining access to options-based convexity across equities and rates, as the All Seasons strategy is designed to do, remains central to managing downside risk while seeking to benefit from volatility dislocations.

Overview

The first quarter of 2026 was defined by a tug-of-war between resilient corporate earnings and mounting macro uncertainty, producing an equity environment characterized by sharp rotations and frequent, if short-lived, air pockets. Index-level performance masked a high-churn backdrop: factor leadership shifted repeatedly, dispersion within and across sectors widened, and intraday ranges expanded meaningfully versus 2025 averages. Against this backdrop, the USA Mutuals All Seasons Fund remained focused on managing downside risk while seeking to monetize dislocations in volatility markets, in keeping with its objective of delivering risk-adjusted returns across cycles.

Equity markets continued to exhibit the now-familiar pattern of rapid snapbacks following drawdowns, a feature that has increasingly defined index behavior in the post-2008 era. Episodes of de-risking, often triggered by macro headlines, shifts in policy expectations, or concentration risk in large index constituents, were typically met by aggressive dip-buying and CTA/systematic flows that compressed realized volatility almost as quickly as it had expanded. Historically, such snapbacks can lull investors into complacency, yet they also speak to the structural demand for equities in a world still adjusting to higher nominal rates and uncertain growth trajectories.

Looking ahead to the remainder of 2026, we believe that both equity and bond markets face a non-trivial set of risks that could sustain, or even amplify, current levels of volatility and vol-of-vol. On the equity side, stretched valuations in certain growth and quality segments, elevated index concentration, and ongoing uncertainty around the trajectory of inflation and policy rates raise the potential for sharper corrections than those seen in early 2026. History shows that periods marked by frequent snapbacks can precede more persistent drawdowns once a catalyst emerges that undermines the buy-the-dip reflex, whether that catalyst is an earnings recession, a policy mistake, or an exogenous shock. At the same time, the persistence of systematic and passive flows suggests that any such drawdowns may be punctuated by powerful rallies, keeping the path of returns highly nonlinear.

Bond markets are unlikely to offer a simple hedge in this environment. While yields have adjusted substantially from their post-pandemic lows, the path of policy from here, potentially involving a narrower margin for error on both inflation and growth, could inject additional volatility into the term structure of interest rates. A re-steepening yield curve driven by renewed inflation concerns would challenge traditional duration-heavy allocations, while a growth scare could widen credit spreads even as sovereign yields decline. For multi-asset portfolios, this raises the possibility that equity and bond correlations remain unstable, limiting the effectiveness of conventional diversification. As a result, owning convexity through options on both equity indices and rates may become increasingly valuable, particularly if vol-of-vol remains bid.

In this context, the USA Mutuals All Seasons Fund will continue to emphasize risk management, diversification, and opportunistic use of options to navigate an environment where both prices and volatility can move abruptly. The Fund’s mandate and process are designed for precisely these conditions: a landscape where equity markets can overshoot in both directions, option markets periodically misprice risk, and traditional asset-class relationships become less reliable.

Sincerely yours,

Paul Strehle

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 (3/31/2026) Fund Inception (2/01/2002)

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 2.79% 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, 2026, 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:

CBOE SKEW Index: Measures the market’s perception of “tail risk”—the probability of extreme, negative outlier events (market crashes) for the S&P 500 over a 30-day horizon.

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

CLICK HERE TO INVEST

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Market Review

Q3 2025 – Quick Recap

Q3 was a continuation of the AI-led growth narrative and a broad risk-on tone. Large-cap tech again drove headline gains while market breadth improved as equal-weight and small-cap indices picked up steam. Investors increasingly priced in near-term Fed easing, which supported higher-multiple sectors and sometimes encouraged rotation back into cyclicals. That said, episodic macro/political shocks (tariff headlines earlier in 2025 and a late-September Washington scare over a possible government shutdown) produced sharp, short-lived bouts of volatility and headline-driven repricing. In short:

• Q3 2025: markets advanced on AI and rate-cut hopes, but with clear event-driven volatility.
• Valuations are elevated (CAPE high; forward P/E still above long-run average), which raises the risk that negative surprises may produce outsized drawdowns.

For Q4, it is important to closely monitor Fed communication, Q3 corporate guidance, and policy developments across the political and fiscal landscape. In our view, market risks remain elevated. Investors focused on reducing single-name concentration and seeking smoother expected outcomes may explore diversified approaches and strategies that incorporate dynamic hedging or demonstrated downside management, such as the All Seasons Fund UNAVX.

Themes that Mattered

1. AI and Concentration: AI/semiconductor leaders delivered outsized returns and continued to compound indexes’ gains; this reinforced a market structure where a handful of names dominate performance, keeping headline returns high even when breadth is mixed.
2. Rate-Cut Expectations: As data softened in parts of the labor market and inflation trended toward the Fed’s band, futures markets moved to price earlier or more aggressive cuts than earlier in the year—this underpinned multiple expansion, especially in growth names.
3. Cyclical Catch-Up and Rotation: Equal-weight rallies and small-cap strength in parts of Q3 signaled investors testing risk outside mega-cap tech. Seasonality and positioning also played into the late-Q3 uplift.

Volatility (What we saw and what it means)

• Implied volatility stayed relatively subdued by historical crisis standards: the VIX spent much of Q3 in the mid-teens, reflecting a calmer option market baseline but with clear skew when risk headlines arrived. The market’s “calm” masked periodic spikes tied to specific events (tariff headlines, Washington fiscal headlines).
• Term structure and option markets showed investors paying up for short-dated protection around known political/economic windows, which is consistent with a market that expects ongoing, event-driven jumps rather than a sustained regime of fear.

Takeaway: lower average VIX + event-driven spikes = environment where active risk management (position sizing, tactical hedges, nimble rebalancing) still matters. Calm doesn’t mean “safe”.

Fundamental Analysis – US Valuations & Risks (Where we stand)

Long-run valuation gauges are elevated. The Shiller CAPE (10-year cyclically adjusted P/E) is currently in the high 30s–40s range, levels only seen near the dot-com peak and a few other rare periods, flagging that long-term valuations are rich versus historical norms. This implies lower long-term expected real returns if mean reversion occurs.

Near-term forward multiples are elevated but less extreme. The S&P 500 forward P/E sits in the low- to mid-20s (roughly ~23–24x), a bit lower than a year ago but still above long-run averages; that multiple is justified by robust earnings growth expectations, but it leaves little margin for negative macro surprises.

Earnings Momentum vs. Valuation Tradeoff: Q3 corporate earnings expectations (positive year-over-year growth driven by tech and some cyclical sectors) support current prices in the near term, but high valuation starting points increase sensitivity to downgrades or recession risk.

Key Risks from a Fundamentals Standpoint:

     1. Re-Rating Risk: If earnings growth disappoints, multiples could contract rapidly because the market’s “growth premium” is already priced in.
     2. Macro Policy Surprises: Faster-than-expected inflation or a Fed that pauses cuts could push rates higher and compress valuations.
     3. Concentration Risk: Heavy reliance on a few mega-caps makes headline indices vulnerable to idiosyncratic shocks.
     4. External Shocks: Geopolitical escalation, tariff cycles, or fiscal instability in Washington can generate outsized volatility even without a macro recession.

Looking ahead to Q4 2025 – What to watch (catalysts & scenarios)

     • Fed communication and rate path: The single most important variable. We believe a clearer path to cuts (and the timing) will keep risk assets elevated; any delay or hawkish surprise will be immediate downside for high-multiple names. (Watch the Fed-speak calendar and PCE/jobs prints.)
     • Earnings guidance and margin trends: Q3 earnings season (early Q4 reporting) will test whether AI capex and sales translate into sustainable margin expansion across sectors. Negative guidance would potentially be punished more severely than in a cheaper market.
     • Political & fiscal events: Budget fights, regulatory actions, or tariff news can trigger outsized short-term moves; keep windows around major Washington deadlines on the calendar.
     • Seasonality and flows: Q4 historically favors risk assets (holiday tailwinds, window dressing), but flows will be driven by whether investors continue to rotate outside mega-cap tech and whether real yields move materially.

Sincerely yours,

Paul Strehle

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 (9/30/2025) Fund Inception (2/01/2002)

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 2.79% 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, 2026, 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:

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.

The Cyclically Adjusted Price-to-Earnings (CAPE) Ratio: Also known as the Shiller P/E ratio, assesses the stock market’s pricing by adjusting past earnings for inflation over a decade. Popularized by Yale’s Robert Shiller, it gives investors insight into whether markets are undervalued or overvalued based on historical earnings data.

The VIX: VIX most commonly refers to the Cboe Volatility Index, which measures the market’s expectation of 30-day forward-looking volatility for the U.S. stock market based on S&P 500 index options.

The Price-to-Earnings (P/E) ratio: A valuation metric that compares a company’s share price to its earnings per share (EPS). It’s calculated by dividing the current share price by the earnings per share. A high P/E may suggest investors expect high growth or that a stock is overvalued, while a low P/E might indicate an undervalued stock, but it can also reflect poor company performance or unfavorable market conditions.

Mega-cap: A designation for the largest companies in the investment universe, generally defined as having a market capitalization of $200 billion or more.

Personal Consumption Expenditures (PCE): A measure of consumer spending on goods and services in the U.S. economy, and the PCE Price Index is the Federal Reserve’s preferred measure of inflation. PCE is the primary driver of economic growth, accounting for about two-thirds of domestic final spending, and is released monthly by the Bureau of Economic Analysis.

Capital Expenditures (CapEx): The funds companies allocate to acquire, upgrade, and maintain essential physical assets like property, technology, or equipment, crucial for expanding operational capacity and securing long-term economic benefits.

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

CLICK HERE TO INVEST

The post ALL SEASONS FUND: Q3 2025 COMMENTARY LETTER appeared first on USA Mutuals.

Overall Backdrop

• U.S. large-cap equities delivered approximately +8% in Q3 2025, setting their strongest quarter since 2020.
• Macro uncertainties persist (labor softness, inflation/inflation expectations, trade/tariffs), but risk assets found footing on hopes of easing policy.
• Investors are rotating modestly: value / defensive sectors underperforming slightly the broader equity rally, but still garnering interest given income/yield attractiveness.

Defense / Aerospace (Large-cap U.S. & foreign)

• The global defense sector remains one of the stronger “vice”-adjacent pockets: heightened military spending among NATO and allied governments, plus demand for AI/sensor systems, is supporting large‐cap U.S. names and foreign peers.
• For example, RTX Corporation (US) reported Q3 sales growth of ~12 % and raised its full‐year outlook.
• Valuations are elevated in many cases, so the key risk is stretched expectations and program/timing slippages.

Casinos / Gaming

• Regional U.S. casino operators are benefitting from cautious consumer behavior: gamblers are shifting from high-cost destinations (e.g., Las Vegas) to local/regional venues.
• The big integrated resort / global casino names are showing mixed signals: some strong beats (e.g., Las Vegas Sands Corp. with ~24 % revenue growth in Q3), while others face margin/competition/tourism headwinds.
• The sector remains leveraged to consumer discretionary spending, tourism, regulation/licensing, and online gaming trends — meaning upside exists if macro holds, but downside if spending compresses.

Tobacco / Alcohol

• In the tobacco space, major players (e.g., Philip Morris International Inc.) beat expectations with solid revenue growth (~+9.4% YoY) in Q3, aided by pricing and smoke-free product momentum.
• But the underlying secular decline in cigarette consumption persists, and alcohol/brews face cost inflation, supply chain issues, and shifting consumer preferences.
• These are more defensive, dividend-oriented sectors: potentially attractive for income investors, less so for aggressive growth plays in this quarter.

Outlook & key themes for Q4 2025

• For defense: monitor contract awards, export approvals, and margin pressure from higher commodity/steel/titanium input costs.
• For casinos: focus on consumer spending trends, tourism recovery (especially international), regulatory changes, online gaming growth, and leverage/ debt structures.
• For tobacco/alcohol: dividend sustainability, innovation (e.g., heat-not-burn, smokeless), regulatory/tax risk, and cost control.
• Across all: with large-caps already up materially, any macro shock (inflation surprise, interest rate hawkish pivot, weaker consumer spending) could challenge valuations. From a “vice” sector lens, the balance is between income/defensive appeal and growth/risk-on appetite.

As always, we thank you for your continued trust and investment in the Vice Fund.

Sincerely yours,

Paul Strehle

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.

Standardized performance as of 9/30/2025 Fund Inception (8/30/2002)

Investor Class 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 2.15% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2026, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

Top 10 Holdings as of 9/30/2025

SECURITY NAME	% OF NET ASSETS OR MARKET VALUE
BAE SYSTEMS PLC	7.20%
PHILLIP MORRIS INTERNATIONAL, INC	6.67%
RTX CORPORATION	6.55%
BRITISH AMERICAN TOBACCO PLC	5.81%
ALIBABA GROUP HOLDING LTD.	5.82%
HEINEKEN NV	5.76%
HECLA MINING COMPANY	4.46%
NORTHROP GRUMMMAN CORP	4.41%
ANHEUSER-BUSCH INDEV SA	4.34%
DIAGEO PLC	4.09%

Holdings subject to change.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

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.

Large-cap: Refers to a company with a market capitalization value of more than $10 billion.

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Market Review

The second quarter of 2025 illustrated the fragile risks in the current equity markets. The All Seasons fund performed positively, with a relatively modest maximum drawdown during the throes of April’s volatility in particular.

The fund seeks positive performance in all economic cycles. We believe the recent sell-off revealed that many portfolios are “swimming naked,” albeit with the June counter rally bailing out many of them. Below is a recap of the last three months and what we expect going forward.

Sharp Drawdown: “Liberation Day” Tariff Shock (Early April)

• April 2 – President Trump announced sweeping “Liberation Day” tariffs: a 10% baseline and higher levies on imports from China, Canada, the EU, and others, including as much as 34% on Chinese goods and 25% on autos and steel.
• The market reaction was swift and brutal:
  • S&P 500 fell over 10% in just two days, marking the worst weekly drop since the COVID-19 crash of March 2020.
  • Nasdaq plunged ~11%, and the Dow dropped more than 9%, wiping out roughly $6.6 trillion in market value.

Recovery: Tactics and Reversals

• Policy rollbacks and pauses: Markets began reversing course when Trump delayed implementation and softened his stance, initiating a 90-day pause and beginning discussions with trade partners.
• TACO trade: The “Trump Always Chickens Out” thesis gained traction, with investors betting on tariff de-escalation.
• By mid-May, the S&P 500 erased losses and returned to flat for the year, ultimately closing Q2 at new highs, just days before quarter-end.

Quarter in Review

Themes & Takeaways

1. Volatility reigns supreme – The quarter highlighted how quickly equities can be derailed by geopolitical shocks.
2. Policy uncertainty dominated. Each wave of tariff headlines hit sentiment hard, yet reversals sparked sharp rebounds.
3. Buy-the-dip discipline paid off. Cautious investors who stayed through April’s turmoil reaped gains as markets soared again.
4. TACO trade resilience: The idea that Trump’s threats would be softened by economic reality became a self-fulfilling prophecy in Q2.
5. Earnings fundamentals survived: Despite tariff pressure, Q2 results held, reinforcing equity strength.

Looking Ahead (Q3 Signals)

• Trade negotiations are critical: Ongoing talks with Japan, the EU, China, and others around the August 1 tariff deadlines will shape Q3.
• Still-volatile waters: While markets seek calm, a misstep in policy or escalation could spark renewed turbulence.
• Macro fundamentals: With the economy holding up and Fed signaling patience, equities currently favor a “muddle-through, risk-on” regime.
• International opportunities: As the dollar weakens amid policy uncertainty, overseas markets currently outperform U.S. equities.

Summary

Q2 2025 was a rollercoaster: a swift, deep drawdown triggered by Trump’s tariff surge, followed by a resilient rebound as policy softened, and closed with equities at fresh highs. The episode reinforced that while headlines can trigger violent market swings, fundamentals and investor conviction ultimately reassert control.

Paul Strehle

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 (6/30/2025) Fund Inception (2/01/2002)

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:

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

CLICK HERE TO INVEST

The post ALL SEASONS FUND: Q2 2025 – QUARTERLY COMMENTARY LETTER appeared first on USA Mutuals.

Performance Overview (YTD through June 30, 2025)
Market volatility in Q1 and early Q2 created both challenges and opportunities, and the Fund benefited from defensive positioning and sector-specific tailwinds within our core holdings.

Sector Highlights

• Defense & Aerospace: Defense stocks remained resilient amid continued geopolitical instability, particularly in Eastern Europe and the South China Sea region. Increased U.S. and NATO defense spending led to strong performance from names BAE Systems and Northrop Grumman. Several mid-tier defense contractors also reported robust earnings, helping this segment deliver double-digit gains.
• Alcohol & Tobacco: Despite volume pressures in the U.S. and Europe, international demand and strong pricing power helped offset headwinds. Philip Morris International and Anheuser-Busch were standouts, supported by brand strength and emerging market growth. Diageo was the chief laggard with potential exposure to tariffs, raising concerns. The tobacco segment also benefited from increased regulatory clarity in some jurisdictions, easing investor concerns.
• Gaming & Casinos: This sector continued to rebound on strong travel demand and a surge in digital and sports betting platforms. Macau’s recovery has been stronger than anticipated, contributing positively to the portfolio. The seeming end to China’s firm zero-COVID Policy and threats to casino concessions provided a tailwind.

Forward View
As we move into the second half of 2025, we maintain a constructive outlook on vice-related industries. These sectors tend to perform well in uncertain environments due to their pricing power, stable demand, and strong cash flow characteristics. While we remain mindful of macroeconomic risks, including interest rate fluctuations and tariffs, we believe the Fund is well-positioned to navigate the current landscape.

Portfolio Positioning
We continue to maintain a diversified allocation across our four core sectors, with a slight overweight in defense given continued global tensions and strong government contract pipelines. According to historical valuation metrics, the fund is collectively comprised of stocks generally valued below the stock market at large.

Key Contributor Spotlight: BAE Systems (LSE: BA/OTC: BAESY), driven by a surge in international defense contracts, robust earnings growth, and increasing investor interest in well-positioned military defense firms.

Several factors contributed to BAE’s strong performance:

• Record order intake during the first two quarters, with significant contracts from the U.K. Ministry of Defense, NATO members, and expanding deals in Asia-Pacific.
• Rising demand for next-generation naval and aerospace systems, with continued momentum in the Tempest Future Combat Air System and U.S. Department of Defense projects.
• A favorable FX tailwind from a weaker pound boosted reported earnings in USD terms, further enhancing returns for U.S.-based investors.

Future Drivers
Looking ahead, we remain constructive on defense, with BAE Systems positioned to benefit from growing international defense budgets and continued investment in modern warfare technologies. Across the portfolio, our focus remains on companies with high barriers to entry, resilient cash flows, and pricing power — core traits of vice-related industries that historically outperform in uncertain markets.

As always, we thank you for your continued trust and investment in the Vice Fund.

Sincerely yours,

Paul Strehle

Vice Fund in the Media

Benzinga just spotlighted what we’ve known for years: vice stocks are resilient, profitable, and back in the headlines.

In their recent article, “Guns, Booze, And Gambling Stocks Are Crushing ESG In Trump’s America”

Benzinga Staff Writer Piero Cingari calls out how traditionally defensive sectors are once again outperforming many of the buzziest ESG names. The piece highlights companies like BAE Systems and Philip Morris, both of which are current VICEX holdings and top contributors to the fund’s performance this year. Click here to read the full article.

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.

Standardized performance as of 6/30/2025 Fund Inception (8/30/2002)

Investor Class 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 2.15% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

Top Ten Holdings a of 6/30/2025

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

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.

CLICK HERE TO INVEST

The post VICE FUND 2025 SEMI-ANNUAL COMMENTARY LETTER appeared first on USA Mutuals.

Market Review

Major equity indices were mostly lower after volatile April market moves. On April 2^nd, President Trump announced “reciprocal” tariffs on imports from all countries that were far higher than expected. After the news, the S&P 500 had its worst two-day performance since March 2020. After a week, the president announced a 90-day pause on higher-level tariffs (excluding China) to allow more time for negotiations. The S&P 500 reacted with its best one-day performance since 2008.

The All Seasons Fund benefited from the volatility with a positive month in a mostly down month for equities and government bonds. Although risk versus reward on trades early in the month was too high to position meaningfully, opportunities became cautiously more prevalent in “oversold” conditions by mid-month. By the end of April, the fund was higher year-to-date in the face of generally lower equity markets. While this is only one data point, it speaks to the fund’s objective of achieving positive returns in all economic environments.

Looking forward, May still has several key earnings announcements, as well as further economic data around jobs, inflation, and GDP. Most importantly, it continues to offer clues around the Trump administration’s resolve to negotiate tariffs. We believe tariffs will continue to cloud the economic outlook and diminish business and consumer sentiment. We believe these periods of uncertainty are another reason to invest in a fund that has low correlation to equities and bonds.

Paul Strehle

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 (3/31/2025) Fund Inception (2/01/2002)

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:

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.

DOWNLOAD THIS ARTICLE

SYMBOL: UNAVX

CLICK HERE TO INVEST

The post ALL SEASONS FUND: APRIL 2025 – COMMENTARY LETTER appeared first on USA Mutuals.

Market Review

Major equity indices were mostly lower after volatile April market moves. On April 2^nd, President Trump announced “reciprocal” tariffs on imports from all countries that were far higher than expected. After the news, the S&P 500 had its worst two-day performance since March 2020. After a week, the president announced a 90-day pause on higher-level tariffs (excluding China) to allow more time for negotiations. The S&P 500 reacted with its best one-day performance since 2008.

Looking forward, May still has several key earnings announcements, as well as further economic data around jobs, inflation, and GDP. But most importantly, it continues to offer clues around the Trump administration’s resolve to negotiate around tariffs. We believe tariffs will continue to cloud the economic outlook and diminish business and consumer sentiment. We believe these periods of uncertainty are another reason to invest in a fund that is comprised mainly of noncyclical companies like the Vice Fund, which has a lower correlation to broad-based indices than many equity funds.

The Vice Fund remains committed to its core belief that certain stocks are undervalued because certain factions of society deem them morally questionable. Our core holdings remain military defense, casino, alcohol, and tobacco stocks because they typically have an inelastic customer base that is unlikely to be swayed by whether the product price rises or falls.

Sincerely yours,

Paul Strehle

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.

Standardized performance as of (3/31/2025) Fund Inception (8/30/2002)

Investor Class 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 are 1.91% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

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.

DOWNLOAD THIS ARTICLE

SYMBOL: VICEX

CLICK HERE TO INVEST

The post VICE FUND: APRIL 2025 – COMMENTARY LETTER appeared first on USA Mutuals.

Market Review

The S&P 500 and Nasdaq suffered significant losses in March 2025, with declines of -5.6% and -8.1%, respectively. The March sell-off was fueled by headlines about tariffs and weakening consumer and business sentiment. The sell-off has continued through mid-April, with the size and scope of tariffs changing daily.

In light of this uncertainty, economic forecasts have been revised downward. The Atlanta Fed’s GDP tracker now indicates gross GDP contracting in the first quarter of 2025. Federal Reserve Chair Jerome Powell indicated a wait-and-see mode as uncertainties around tariffs play out. As inflation shows no sign yet of dropping during a tariff war, the Federal Reserve is unlikely to step in with emergency rate cuts.

We believe equity volatility is likely to persist at higher levels for longer than a few weeks or months. The fund strategy has recalibrated for this higher expected volatility. These periods tend to offer the strategy more asymmetric upside opportunities as signs of behavioral herding among investors become more prominent.

On April 1, 2025, the All Seasons Fund (UNAVX) received a 4-Star Overall Morningstar Rating™ from its inception on October 13th, 2017 to March 31, 2025, out of 237 funds, in the Tactical Allocation Category, based on risk-adjusted returns. The fund seeks capital appreciation and capital preservation with lower volatility throughout market cycles. It is highly correlated with equities in bull markets and less or negatively correlated in bear markets.

Paul Strehle

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 (3/31/2025) Fund Inception (2/01/2002)

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.

CBOE SKEW: An index that measures the volatility of financial markets, based on the prices of options for the leading 500 companies

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.

UNAVX also received 5-Star Morningstar Ratings™ for 3-year out of 237 funds, and 3-Star for 5-year out of 214 funds, for the period ending March 31, 2025. All in Morningstar’s Tactical Allocation category, based on risk-adjusted returns. The 10-year returns are not included in the Morningstar rating because the Predecessor Partnership was not registered under the 1940 Act.

©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes.

It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

DOWNLOAD THIS ARTICLE

SYMBOL: UNAVX

CLICK HERE TO INVEST

The post ALL SEASONS FUND: MARCH 2025 – COMMENTARY LETTER appeared first on USA Mutuals.

Market Review

The Vice Fund remains committed to its core belief that certain stocks are undervalued because certain factions of society deem them morally questionable. Our core holdings remain military defense, casino, alcohol, and tobacco stocks because they typically have an inelastic customer base that is unlikely to be swayed by whether the product price rises or falls.

The S&P 500 and Nasdaq suffered significant losses in March 2025, with declines of -5.6% and -8.1%, respectively. The March sell-off was fueled by headlines about tariffs and weakening consumer and business sentiment. The sell-off has continued through mid-April, with the size and scope of tariffs changing daily.

In light of this uncertainty, economic forecasts have been revised downward. The Atlanta Fed’s GDP tracker now indicates gross GDP contracting in the first quarter of 2025. Federal Reserve Chair Jerome Powell indicated a wait-and-see mode as uncertainties around tariffs play out. As inflation shows no sign yet of dropping during a tariff war, the Federal Reserve is unlikely to step in with emergency rate cuts.

We believe equity volatility is likely to persist at higher levels for longer than a few weeks or months. The Vice fund has been committed to non-cyclical stocks since its inception over 20 years ago. We believe this commitment may offer downside mitigation compared to the top-heavy S&P 500 which has been riding big growth technology stocks for more than a decade.

Sincerely yours,

Paul Strehle

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.

Standardized performance as of (3/31/2025) Fund Inception (8/30/2002)

Investor Class 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 are 1.91% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

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.

DOWNLOAD THIS ARTICLE

SYMBOL: VICEX

CLICK HERE TO INVEST

The post VICE FUND: MARCH 2025 – COMMENTARY LETTER appeared first on USA Mutuals.

Market Review

Major U.S. equity indices were lower in February. Concerns around high-growth stock valuations, increasing signs of “stagflation”, and ongoing tariff wars fueled the risk-off sentiment. The Federal Reserve maintained a cautious stance due to hotter-than-expected inflation data. We believe risks are mounting for a more meaningful sell-off this year.

On February 18^th, the CBOE SKEW (SKEW) Index reached all-time highs. SKEW measures perceived tail-risk in the distributions of the S&P 500 returns over a 30-day horizon. In short, investors were hedging extreme downside risk more than taking opportunistic positions to the upside. But nervous investors are only the beginning of the story.

In the following two weeks after the SKEW all-time high, SKEW immediately dropped close to its lows of years. This may indicate investors closed out hedges aggressively AND added to existing long positions seeking upside opportunity. While this SKEW movement is common during selloffs over more extended time periods, the magnitude of the flip-flop back to opportunistic so quickly is uncommon. Investors have been rewarded for nearly two decades by buying dips. In this case, we believe investors may be too early on a bullish call.

On March 1, 2025, the All Seasons Fund (UNAVX) received a 4-Star Overall Morningstar Rating™ from its inception on October 13th, 2017 to February 28, 2025, out of 236 funds, in the Tactical Allocation Category, based on risk-adjusted returns. The fund seeks capital appreciation and capital preservation with lower volatility throughout market cycles. It is highly correlated with equities in bull markets and less or negatively correlated in bear markets.

Paul Strehle

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 (12/31/2024) Fund Inception (2/01/2002)

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.

Cboe SKEW: An index that measures the volatility of financial markets, based on the prices of options for the leading 500 companies

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.

UNAVX also received 5-Star Morningstar Ratings™ for 3-year out of 236 funds, and 3-Star for 5-year out of 214 funds, for the period ending February 28, 2025. All in Morningstar’s Tactical Allocation category, based on risk-adjusted returns. The 10-year returns are not included in the Morningstar rating because the Predecessor Partnership was not registered under the 1940 Act.

©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes.

It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

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SYMBOL: UNAVX

CLICK HERE TO INVEST

The post ALL SEASONS FUND: FEBRUARY 2025 – COMMENTARY LETTER appeared first on USA Mutuals.