VICE FUND: JUNE 2023 – COMMENTARY LETTER
The Vice Fund ended the month of June with a return of +3.17%
Market Review
Technology and growth stocks led equities higher in June, with economic data coming in stronger than expected. Q1 Gross Domestic Product (GDP) was revised higher, reflecting upward revision trends in exports and consumer spending. Further, the Consumer Price Index (CPI) and Producer Price Index (PPI) data indicated softening of inflation.
While the month’s daily market moves were mild, the volatility markets provided information on how investors prepare for the second half of 2023. For example, the CBOE Skew Index (SKEW), which indicates investors’ fears of downside risk, has spiked since the start of the year. In June 2023, SKEW matched its second-highest levels since its 2013 inception. Notably, today’s SKEW levels reach that of September 2018, just before that year’s end late sell-off, and December 2019, just before the COVID sell-off. While this lone indicator is not prescient of anything more than market fear and hedging, we believe it indicates support levels if markets do cascade lower.
The fund benefited from a moderate rotation into its cyclical stocks over the month. Casino stocks were a strong performer. The military defense stocks in the portfolio also outperformed the broader US indices. Stocks held in foreign currencies were the underperformers for the month.
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 07/31/2023.
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.
CBOE Volatility Index (VIX): VIX is the ticker symbol and the popular name for the Chicago Board Options Exchange’s CBOE Volatility Index, a popular measure of the stock market’s expectation of volatility based on S&P 500 index options.
SYMBOL: VICEX
