VICE FUND: JANUARY 2024 – COMMENTARY LETTER
The Vice Fund ended the month of January with a return of -1.50%.
Market Review
US Stocks had a mixed opening to 2024, with large caps advancing and small caps declining. Six of the eleven sectors had a negative start to the year, with consumer discretionary and real estate representing the biggest laggards.
The impressive breadth of December’s rally has begun to show cracks. Notably, Tesla, one of the “Magnificent Seven” stocks that accounted for the majority of the S&P 500’s gains last year, dropping 24.6% in January.
While the US economy added more jobs than expected in January, unemployment and labor force participation remain unchanged. Treasury yield activity was noticeably muted relative to the preceding two years of high volatility.
February inflation data and earnings may offer insights into how sustainable the recent bull market can run. In our view, tailwinds include lower recession risk, a more dovish Fed, rebounding corporate earnings, and historically positive election years.
The Vice Fund remains committed to its core belief that certain stocks are undervalued based on certain factions of society deeming these stocks as 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 whether the price of the product rises or falls.
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 (12/31/2023) Fund Inception (08/30/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| VICEX | -2.15% | 4.52% | 3.40% | 7.49% |
| MSCI World Index | 22.81% | 12.27% | 8.48% | 8.88% |
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 1.98% 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, 2024, 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.
Volatility – The degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.
CBOE Volatility Index – A popular measure of the stock market’s expectation of volatility based on S&P 500 index options.
Skew Index – A measure of the perceived tail risk of the distribution of S&P 500 investment returns over a 30-day horizon. The index values are calculated and published by the Chicago Board Options Exchange based on current S&P 500 options market data.
Put Option – a derivative instrument in financial markets that gives the holder the right to sell an asset, at a specified price, by a specified date to the writer of the put.
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SYMBOL: VICEX
5180-NLD-2/22/2024