April 14, 2021
Investors have been inundated by positive news concerning ongoing, and in some instances substantially increased, stimulus as well as what is appearing to be very successful rollouts of COVID-19 vaccines. The stimulus spending in particular is spurring some inflation due to reduced unemployment rates and increased consumer confidence. While the Fed has expressed some degree of concern about this the central bank appears to taking a position of ‘watchful eye’ and has continued is dovish stance.
Tactical Growth’s allocation at the start of March was 81% U.S. Equities, 7.5% Fixed Income, and 11.5% Cash. Excessive volatility in the previous leaders and continued strength in under-represented areas moved our Sharpe rankings and portfolio this month.
On March 4 we sold 6% of both S&P Growth and Small Cap Growth to Cash. On the 8th we moved 1% from S&P Growth to Value. The next day we moved the remaining 5% from S&P Growth to Value and added 2.5% positions in both Energy and Metals/Mining. On March 11 we added a 5% International position with highly ranked Canada. We also added another 2.5% position in both Energy and Metals/Mining. On the 12th we sold down our NASDAQ 100 position by 4.5%. Our last moves for the month were on the 25th when we sold the second lots of Energy and Metals/Mining.
We ended the Month/1st Quarter at 66% U.S. Equities, 5% International Equities, 5% Commodity, 7.5% Fixed Income, and 16.5% Cash. Our 66% in Equity broken down in terms of investment style is 33.5% Growth, 24% Value, and 8.5% Broad Market.
For March, the Stadion Tactical Growth Fund Class A returned 0.41% versus its benchmark Morningstar Moderately Aggressive Target Risk which returned 2.26%.
To view the most recent performance for the Stadion Tactical Growth Fund, click here.
The S&P 500 Growth Index is a market-capitalization-weighted index developed by Standard and Poor's consisting of those stocks within the S&P 500 Index that exhibit strong growth characteristics.
The S&P 500 Value Index is a market-capitalization-weighted index developed by Standard and Poor's consisting of those stocks within the S&P 500 Index that exhibit strong value characteristics.
The Nasdaq 100 Index is a basket of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange.
The Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk.
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.
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The Stadion Funds are distributed by ALPS Distributors, Inc. An investment in the Funds involves risk, including loss of principal.