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Stadion Tactical Growth Fund Commentary October 2020

November 10, 2020

We entered the month knowing that during an election year October is typically a poor month for stock performance. This is exactly how things went, too, for U.S. equities. After running upward for close to half the month, markets closed October on a down note. There are likely multiple reasons for this including the related factors of an increase in COVID cases paired with the lack of congress to pass a new fiscal stimulus package.

Election uncertainty seems to have played a role, too, but this particular factor is difficult to quantify. We do know, however, that markets abhor uncertainty so taking this into account, especially in light of a particularly contentious Presidential race, it seems reasonable to believe that this was a factor of some consideration.

The S&P 500 fell 4.1% in the final week of October which was enough to move the index into negative returns for the month.  In fact, all three major US indices including the S&P 500, the Dow Jones Industrial Average, and the NASDAQ all finished in the red for the month of October.

Tactical Growth’s allocation on October 1 was 68% U.S. Equities, 10.5% Fixed Income, 5.5% Precious Metals, and 16% Money Market.  On the 20th we moved 5% from Money Market into the Small Cap Value sector. 

On the 29th we sold half of our Gold Mining holdings to money market.  Our holdings at the end of October are % U.S. Equity, 10.5% Fixed-Income, 2.5% Precious Metals, and 16% Money Market.  Volatility and negative price action in October weakened rankings across the board and we maintained our high cash weighting into the Election.

For October, the Stadion Tactical Growth Fund Class I returned -2.09% versus its benchmark Morningstar Moderately Aggressive Target Risk which returned -1.54%.

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

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 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 Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange.

The NASDAQ Composite is a stock market index of the common stocks and similar securities listed on the NASDAQ stock market and it is highly followed in the U.S. as an indicator of the performance of stocks of technology companies and growth companies.

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

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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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.