January 11, 2021
December’s robust market action drove the major U.S. indexes solidly up for the month and investors in international markets saw positive moves as well. Congress passed a long-awaited additional stimulus package, and the Federal Reserve has maintained its policy of keeping rates low and continues to anticipate no changes until at least 2023.
While no one can predict where markets will turn next, these are encouraging signs of economic backstop and accommodation that lend support to a position of cautious optimism.
Tactical Growth’s allocation to start December was 74.5% U.S. Equity, 5% Materials, 10.5% Fixed-Income, 2.5% Precious Metals, and 7.5% Money Market. On December 1 we lowered our cash/money market holdings and added a 5% position in Japan. On the 14th we made a lateral move out of Basic Materials and into Small Cap Value with 5% of the portfolio.
On the 22nd we moved the last half-percent of our excess cash into our already existing position in Small Cap Value. We ended the month and 2020 with 81% U.S. Equities, 5% International Equities, 9.5% Fixed Income, 2.5% Gold Miners, and 2% Cash. We are fully invested, and our process has moved the portfolio towards the value side of the U.S. equity market. We will continue to monitor our internal rankings and adjust the portfolio as guided by our process.
For December, the Stadion Tactical Growth Fund Class I returned 4.23% versus its benchmark Morningstar Moderately Aggressive Target Risk which returned 3.94%.
To view the most recent performance for the Stadion Tactical Growth Fund, click here.
The Morningstar Target Risk Index family is designed to meet the needs of investors who would like to maintain a target level of equity exposure through a portfolio diversified across equities, bonds and inflation-hedged instruments. The Morningstar Moderately Aggressive Target Risk Index seeks approximately 80% global equity exposure.
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.
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.
Not all investors are eligible for each share class, including I shares. Performance and expense may vary between share classes.
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.
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.