VICE FUND: SEPTEMBER 2024 – COMMENTARY LETTER
The Vice Fund ended the month of September with a return of +2.45%.
Market Review
After more than a year of no rate changes, the Federal Reserve cut interest rates by 50bps. The move was explained by Chairman Powell in three ways: 1) Lack of recent inflation readings higher than Q1 2024, 2) Concern around slowing pace of job growth, and 3) That a July 2024 25bps cut would have happened if the July employment data was released before the July FOMC meeting. Chairman Powell projected another 50bps cut by year-end. We believe the Federal Reserve has shifted from combating inflation to prioritizing support for a weakening labor market.
In September, global equities were mostly higher. In particular, Chinese stocks experienced one of their strongest months in nearly 16 years following several announcements meant to inject confidence, support a weakening economy, and energize the stock market. A major injection of stimulus from the central bank and promises of more government support mark the beginning of a more aggressive approach from Beijing to propel the economy after years of increased regulation and stagnation.
As the 2024 U.S. presidential election approaches, implied option prices indicate markets may have more volatility, driven by uncertainty surrounding potential policy changes and their economic implications. Investors are grappling with the likelihood of shifting regulatory landscapes, tax reforms, and changes in trade policies, depending on the election outcomes. This unpredictability can lead to increased fluctuations in both equity and bond markets as traders adjust their portfolios in response to polls and candidate platforms. Historical trends suggest that markets often react sharply to election-related news.
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
