VICE FUND: OCTOBER 2024 – COMMENTARY LETTER
The Vice Fund ended the month of October with a return of -3.51%.
Market Review
US equities were lower in October, with the S&P 500 ending a five-month streak of gains. Treasuries experienced significant declines, with yields increasing sharply across the curve. The dollar index rose while alternative investments like gold, crude oil, and Bitcoin also saw gains.
Investors focused on the increase in Treasury yields as bonds experienced their most significant selloff since September 2022. Reasons for the selloff included more scrutiny around the deficit and debt around robust economic data and rising political uncertainty. Investor concern over inflation, geopolitical uncertainty, housing costs, and consumer sentiment remains high.
Economic data was mixed. September payroll reports exceeded expectations, while labor market indicators showed softening. Moreover, September core CPI ran hotter than expected. We believe the mix of growth signals and possible disinflationary signs has forced investors to re-evaluate rate-cut probabilities in the year ahead.
The Vice Fund remains committed to its core belief that certain stocks are undervalued because certain factions of society deem them 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 by whether the product price 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 (9/30/2024) Fund Inception (8/30/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| VICEX | 12.40% | 2.62% | 4.11% | 7.58% |
| MSCI World Index | 32.35% | 12.72% | 9.94% | 9.43% |
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 1.91% 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, 2025, 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.
The S&P 500 Index: An unmanaged composite of 500 large capitalization companies. Professional investors widely use this index as a performance benchmark for large-cap stocks. You cannot invest directly in an index.
SYMBOL: VICEX
