Back

Stadion Tactical Growth Fund Commentary March 2017

It was a benign month for the S&P 500.  After spiking almost 1.40% on the first trading day, ensuing performance was lackluster as the index eked out a 0.12% gain in March. As measured by the Russell 2000 Index, small cap stocks had similar returns of 0.13% for the month after a decline of almost 3% mid-month. International stocks fared much better with both the MSCI EAFE (led by Spain and Italy) and MSCI Emerging Markets (led by Mexico) indices gaining over 2.5%. While interest rates seemingly were poised to finally break higher, it was for naught as the mid-month spike reversed course and rates ended up almost unchanged for the month. One of the biggest losers of the month was Oil as West Texas Crude tanked from $54/bbl to $48/bbl, although a late month surge had it close above $50/bbl. 

For the month, the Stadion Tactical Growth Fund maintained its approximate 70% correlated 30% non-correlated position. There was very little rotation during the month with mid-month volatility causing the Fund to move some broad large cap and small cap positions into a mix of NASDAQ, Health Care, and Staples exposure. While non-U.S. exposure had a strong month, previous underperformance and increased volatility/correlation has not brought this exposure up in our Sharpe ratio rankings to sufficiently surpass U.S. exposure. We will continue to monitor market dynamics for future rotation between and within our correlated and non-correlated positions.

To view the most recent performance for the Stadion Tactical Growth 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.

The Russell 2000 Index is a small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index. It is the most widely quoted measure of the overall performance of the small-cap to mid-cap company shares.

The MSCI Emerging Markets Index is a float-adjusted market capitalization index that consists of indices in 21 emerging economies: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.
The MSCI EAFE (Europe, Australasia, and Far East) Index is a stock market index that is designed to measure the equity market performance of developed markets outside of the U.S. & Canada.

One cannot invest directly in an index.

All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends.

Sharpe ratio: Measures the excess return per unit of deviation, or risk.

Diversification does not eliminate the risk of experiencing investment losses.

Correlation is a measure of how investments move in relation to one another. A correlation of 1 means two asset classes move precisely in line with each other, while a correlation of -1 means they move in the exact opposite direction.

*Performance numbers as of March 31, 2017

Risks

There are additional costs and potential risks associated with investing in domestic and international Exchange-Traded Funds (ETFs). 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 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 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.

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.