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Stadion Tactical Growth Fund Commentary April 2020

The quick turnaround for stocks from their drop into the fastest developing Bear market in U.S. history stands in stark contrast to every major economic indicator remaining in negative territory. There are a few possible reasons for this. Among them are the semi-renewed sense that the bottom has already been in and a sense that the quickly established federal stimulus and protective programs now in place will sustain the economy until a full reopening can occur. Even so, there is no denying that increasingly negative numbers in key sectors such as manufacturing, home sales, energy, and others indicate that there are still multiple pain points to overcome before the U.S. once again enjoys bullish sentiment across the whole of the nation.

Our allocation at the beginning of April was very conservative.  The Stadion Tactical Growth Fund held 35% U.S. Equities, 15% Short-term Fixed Income, and 50% Money Market.  U.S. Large-Cap Growth was the first equity sector to move up our rankings and we bought a 5% position in S&P Large-Cap Growth on April 8. 

Biotech funds were next to move up and on April 14 we bought 5% Biotech and 5% more S&P Large-cap Growth.  On April 22 we opened a 5% position in a different Biotech fund and sold 5% of our MINT [short-term FI].  On April 28 we added a 10% allocation to the Russell 2000 small-cap index.  TG ended the month with 65% allocated to U.S. Equities, 10% to short-term Fixed Income, and 25% to Cash/Money Market.  We are watching our holdings very closely and will not hesitate to, once again, move to a more conservative posture if our rankings weaken.

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

Past performance is no guarantee of future results. Investments are subject to risk, and any of Stadion’s investment strategies may lose money. The investment strategies presented are not appropriate for every investor and financial advisors should review the terms and conditions and risks involved. Stadion’s actively managed portfolios may underperform during bull markets. Some information contained herein was prepared by or obtained from sources that Stadion believes to be reliable. There is no assurance that any of the target prices or other forward-looking statements mentioned will be attained. Any market prices are only indications of market values and are subject to change.

A bear market is a condition in which securities prices fall and widespread pessimism causes the stock market's downward spiral to be self-sustaining. Investors anticipate losses as pessimism and selling increases. Stadion defines a bear market as a time when market indices fall at least 20%.

One cannot invest directly in an index.

The Report’s commentary, analysis, opinions, advice, and recommendations represent the personal and subjective view of the author and are subject to change at any time without notice.

Risks

There are additional costs and potential risks associated with investing in domestic and international Exchange Traded Funds (ETFs). Investment in the Fund is subjective 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 Fund’s assets in fixed income investments which include credit risk, interest rate risk, and maturity risk among others. These risks could affect the value of investments of the Fund, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments. Additional information about fixed income risks can be found in the Fund’s statement of additional information (“SAI”). Investment Objective: Seek long-term 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.

 

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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.