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Stadion Tactical Growth Fund Commentary November 2020

December 11, 2020

Markets roared back in November after experiencing somewhat muddled performance in the immediately preceding months. The exuberance seemed to be propelled by a few factors. First, the possibility of effective Covid-19 vaccine, then the smoothing out of what began as a contentious start to White House transition plans following the Presidential election.

Consumer spending, believed to be supported by high levels of household savings, flexed its muscle across traditionally heavy-spending days Black Friday and Cyber Monday. Indeed, the latter—which occurred November 30—recorded the highest ever level of online sales with U.S. consumers kicking in an unprecedented $10.8 Billion in one-day spending.1

Covid-19 infection levels and hospitalization rates, in addition to the resurgence of lockdowns and limits on both business and social life across the U.S., are still large concerns with no immediately foreseeable end. Even so, as the news in November seemed to carry stories every day about fast-tracked vaccines and high rates of efficacy, investors have responded with positive sentiment. Whether this is indicative of market moves to come is anyone’s guess but, for now, investors appear to be planning for a return to normalcy.

Tactical Growth’s allocation on November 1 was 69.5% U.S. Equities, 10.5% Fixed Income, 5% Materials, 2.5% Precious Metals, and 12.5% Money Market.  On the 17th we moved 5% from Money Market into Vanguard’s Value Fund.  Our holdings at the end of November are 74.5% U.S. Equity, 5% Materials, 10.5% Fixed-Income, 2.5% Precious Metals, and 7.5% Money Market.  Our additional equity exposure this quarter is tilted towards the Value side of U.S. Equities.  We’ve had a large position in Growth since the rebound this summer and we’re watching it closely.  We have a small amount of excess cash.  We are monitoring our rankings and are watching some individual Country funds closely. 

For November, the Stadion Tactical Growth Fund Class I returned 8.75% versus its benchmark Morningstar Moderately Aggressive Target Risk which returned 10.82%.

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

1https://www.marketwatch.com/story/cyber-monday-rings-up-record-10-8-billion-in-sales-with-amazon-touting-biggest-holiday-shopping-season-so-far-11606838752 Published December 1, 2020; Accessed December 1, 2020

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.

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.

Risks

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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.

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The Stadion Funds are distributed by ALPS Distributors, Inc. An investment in the Funds involves risk, including loss of principal.