VICE FUND: MARCH 2022 – COMMENTARY LETTER
For the month of March, the Fund was +1.32%.
Market Review
Rising inflation remained at the forefront of financial markets in March. The Federal Reserve raised the fed funds rate by 0.25% which was the first increase in 3 years. The Fed signaled a willingness to raise rates more aggressively at future meetings.
The war and humanitarian crisis in Ukraine continued to raise concerns about greater inflation and supply chain issues. The month ended with a new COVID variant that restricted business activity in Asia.
The fund was down on the month mainly due to fears of a prolonged COVID shutdown in China. We believe these fears played a role in Macau’s casino stocks dropping to all-time lows. While COVID may be a short-term hindrance to these fund holdings, we believe these stocks may have a nice risk versus reward asymmetry going forward. These Macau casino stocks already took the brunt of the Chinese government regulatory storm last year, so we believe the upside may offer opportunity compared to downside risk with so much fear potentially priced into these stocks.
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 (03/31/2022) 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 1.67% and 1.49%. Contractual fee waivers through 07/31/2022.
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
