NAVIGATOR FUND: MAY 2021 – COMMENTARY LETTER
For the month of May, the Fund was -4.09%.
Market Review
Equity indices had a series of rapid sell-offs and snapbacks that stopped out our positions for losses. The Fund strategy does not simply “buy-and-hold-and-hope”. In the many years we have run the Fund’s underlying strategy, May was our second worst outcome.
Taking losses – even a series of losses like we had in May — comes with the territory to avoid very large losses. While disappointing, we run a systematic rules-based strategy that we believe exploits persistent market features. Moreover, it has a very low beta to equity markets. While this can be challenging during ongoing equity rallies, we are more concerned with absolute return over a period of years.
As more investors chase “high beta” strategies in the Fund industry generally, we believe the Navigator strategy will offer an opportunity to perform positively. Today’s historically record-high equity and bond valuations may become less interesting to investors who do not want to suffer very large drawdowns. We believe Navigator offers a liquid solution to those investors.
Sincerely yours,
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 Navigator 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 (03/31/2020) Fund Inception (02/01/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| UNAVX | 14.52% | 7.30% | 6.97% | 10.97% |
| S&P 500 Index | 56.35% | 16.28% | 13.90% | 9.09% |
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 2.36% and 2.01%. The advisor has contractually agreed to limit expenses to 1.99% of the average net assets of the Fund through 7/31/2021.
DEFINITIONS:
The S&P 500 Index is 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
6352-NLD-07/13/2021