July 14, 2020
June was an eventful month as markets had their best quarterly performance in decades. Many states began re-opening their economies in May and the spillover of those moves seemed to give investors optimism that the COVID-19 pandemic was being curbed. This, combined with the Federal Reserve’s determination to provide as much support as needed, helped markets rally in the beginning of June.
However, the rally slowed down as the U.S. saw a spike in COVID-19 cases. This new wave of cases has some investors worried about additional rolling national lockdowns and restrictions, which several states implemented in advance of the July 4 holiday. The impacts of another large-scale lockdown could be detrimental to the U.S. economy and the stock market.
Tactical Growth’s allocation at the beginning of June was moderately conservative. It held 57.5% U.S. Equities, 20% Short-term Fixed Income, and 22.5% Money Market. We were able to add exposure to two additional asset classes to the portfolio during the month. U.S. and European Equity Exchange Traded Funds (ETFs) showed strength in our rankings in early June and Precious metals moved to the top later in the month. On June 5, we added one European and two U.S. sector ETFs to our holdings. Both sector funds were sold later in the month. Financials on June 11 and Industrials on June 25. On June 22 we added a fund holding gold mining stocks. At the end of June our portfolio was allocated to 62.5% U.S. Equities, 5% International Equities, 20% Fixed Income, and 12.5% Money Market.
To view the most recent performance for the Stadion Tactical Growth Fund, click here.
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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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