VICE FUND: AUGUST 2022 – COMMENTARY LETTER
For the month of August, the Fund was -3.21%.
Market Review
Global equities reversed downward in August 2022. This reversal came sharply in the second half of the month. The decline began after Fed Chairman Powell’s speech in Jackson Hole committed to beating inflation. He acknowledged that this would inflict “some pain” and the Fed would “use our tools forcefully”. The result was a change in rate hike expectations shifting from 0.50% rise to a 0.75% rise for the September 20th – 21st Fed meeting.
The Vice Fund consumer discretionary stocks in the portfolio suffered the most with the recent equity sell-off. Casinos were the biggest laggard in the portfolio while Military Defense and Tobacco-related stocks were outperformers. In general, the Vice Fund has outperformed broadly based indices during the recent repricing of equities. We believe the inelasticity of demand that drives many of our underlying stock positions has served as a ballast during the year.
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 original cost upon redemption. For performance data as of the most recent month-end please call 1-866-264-8783.
Standardized performance as of (06/30/2022) Fund Inception (02/01/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| VICEX | -11.61% | 2.21% | 6.73% | 8.01% |
| MSCI World Index | 7.73% | 12.20% | 10.57% | 11.49% |
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 1.64% and 1.49%. Contractual fee waivers through 07/31/2023.
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.
SYMBOL: VICEX
