VICE FUND: AUGUST 2023 – COMMENTARY LETTER
The Vice Fund ended the month of August with a return of -4.19%.
Market Review
In August, the narrow leadership equity rally of 2023 took a pause. Global equities finished lower as the so-called “Magnificent Seven” (the 7 mega cap growth stocks responsible for over 75% of the Nasdaq gains in 2023) had mixed results. Further, Fitch Ratings downgraded U.S. long-term debt from AAA to AA+. China economic concerns also weighed down equities with rising deflation fears after an unexpected China rate cut.
Despite these cracks, macro news was encouraging for the bulls. Inflation continued to fall, and the labor market softened slightly, but not too softly. The Fed still has a narrow path for an economic soft landing. Fed Chair Powell in Jackson Hole took a middle-of-the-road stance. Powell will continue to “proceed carefully” while assessing incoming economic data. Fed fund futures indicate no change to rates when the Fed meets in September.
The Vice fund followed global equities lower in the month. The primary driver has been the sell-off in some military defense stocks and China economic fears spilling over to Macau casino stocks. Further, Raytheon continues to slide after an engine manufacturing flaw in its Pratt & Whitney unit. The fund remains committed to both industries as military defense remains in the forefront post Ukraine invasion and the Chinese public resumes normalization after a long Covid lockdown.
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.
Standardized performance as of (6/30/2023) Fund Inception (02/01/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| VICEX | 8.93% | 1.39% | 5.58% | 7.87% |
| MSCI World Index | 17.13% | 8.64% | 9.31% | 8.72% |
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 07/31/2024.
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
