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Stadion Tactical Defensive Fund Commentary June 2017

The Stadion Tactical Defensive Fund performed in line with its Morningstar category Tactical Allocation but underperformed the S&P 500.  The underperformance was attributed to the Fund’s overweight to technology exchange traded funds (ETFs) and an international ETF.   

The Fund seeks to combine two elements of trend following.  One of which focuses on longer term cyclical trends (the core portfolio), and another which aims to balance safety and return among shorter to intermediate trends (the satellite portfolio). 

Both the core and satellite portions of the Stadion Tactical Defensive Fund entered the month fully invested in broadly diversified U.S. equity ETFs and a small position in an international equity ETF.    

After leading the markets higher most of the year, the Technology sector underperformed towards the end of June, which bled over to other sectors of the market. At the same time, volatility was increasing as investor attention focused on global central banks removing historical levels of accommodation. This combination of factors resulted in a deterioration in the short-term trend in the satellite portion of the portfolio. Cash holdings were increased slightly upon the sale of a broadly diversified U.S. equity ETF.

To view the most recent performance for the Stadion Tactical Defensive Fund, click here.


Performance data quoted represent past performance. Past performance is no guarantee of future results. Investments are subject to risk, and any of Stadion’s investment strategies may lose money. Stadion’s actively managed portfolios may underperform in bull markets. 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 data may be lower or higher than the performance data quoted. To review our most recent monthly performance, please visit www.stadionfunds.com.

An investor should consider the investment objectives, risks, and charges and expenses of the Stadion Funds carefully before investing. The prospectus contains this and other information about the Funds. A copy of the prospectus is available by calling Stadion Funds directly at (866) 383-7636 or Stadion Money Management, LLC, the investment advisor, at (800) 222-7636. The prospectus should be read carefully before investing. 

The index shown is defined as follows. 

The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices. All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends.

One cannot invest directly in an index. All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends.

Yield is the annual return on an investment, expressed as a percentage of the price. For stocks, yield is the annual dividend divided by the purchase price, also known as a dividend yield. For bonds, it is the coupon rate divided by the market price, called current yield. 

Diversification does not eliminate the risk of experiencing investment losses.

*Performance numbers as of June 30, 2017

Risks
There are additional costs and potential risks associated with investing in domestic and international Exchange-Traded Funds (“ETF’s”). Investment in the Fund is subject to investment risks, including, without limitation, market risk, management style risk, risks related to “fund of funds” structure, sector risk, fixed income risk, tracking risk, risks related to ETF net asset value and market price, foreign securities risk, risks related to portfolio turnover and small capitalization companies risk. Since each Stadion Fund is a “fund of funds,” an investor will indirectly bear fees and expenses charged by the underlying ETFs and investment companies in which a Stadion Fund invests in addition to a Stadion Fund’s direct fees and expenses. More information about these risks and other risks can be found in the Fund’s prospectus.

There are risks associated with the potential investment of the Tactical Defensive Fund’s assets in fixed income investments, which include credit risk, interest rate risk, and maturity risk. Investment objective: Seek capital appreciation.

The Fund’s foreign investments generally carry more risks than funds that invest strictly in U.S. assets, including currency risk, geographic risk, and emerging market risk. Risks can also result from varying stages of economic and political development; differing regulatory environments trading days, and accounting standards; and higher transaction costs of non-U.S. markets.

The Stadion Funds are distributed by ALPS Distributors, Inc.   

An investor should consider the investment objectives, risks, and charges and expenses of the Stadion Funds carefully before investing. The prospectus contains this and other information about the Funds. A copy of the prospectus is available by calling Stadion Funds directly at (866) 383-7636 or Stadion Money Management, LLC., the investment advisor, at (800) 222-7636. The prospectus should be read carefully before investing.

The Stadion Funds are distributed by ALPS Distributors, Inc. An investment in the Funds involves risk, including loss of principal.