As the market rebounded, Trilogy had 2 of 3 buckets perform positively over the month of April. Unfortunately, given the positioning of our Market Movement bucket, the Fund was unable to produce positive gains in April.
The Collared Equity bucket participated in the April rally, although not to the extent of the overall market. The Collared Equity bucket gained 2.14% for the month of April. The Fund’s option collar caused a slight drag compared to the S&P 500 Index.
The Option Income bucket was a relatively flat performer as it returned 0.46% in April. We saw less market volatility in April with markets moving in one direction, so the fact the Option Income bucket was able to produce gains was a positive for the Fund.
The largest detractor to Trilogy’s performance in April came from the Market Movement bucket as it lost -3.98%. As the market only climbed higher during the month of April, our short calls and long puts we had in place moved against us as they got closer to expiration. Luckily, the Collared Equity bucket was able to make up for some of those losses.
For the month of April, the Stadion Trilogy Alternative Fund I-Share lost -1.38%, the Bloomberg Barclays US Aggregate Index rose 1.78%, and the S&P 500 Index gained 12.82%.
To view the most recent performance for the Stadion Trilogy Alternative Return Fund, click here.
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.
Bloomberg Barclays Capital U.S. Aggregate Total Return Bond Index is an unmanaged index of prices of U.S. dollar-denominated investment-grade fixed income securities with remaining maturities of one year and longer.
A collar is an option strategy that limits the range of possible positive or negative returns on an underlying security to a specific range.
A short, or short position, is selling first and then buying later. The trader's expectation is that the price will drop; the price they sell at is higher than the price they buy it at later. The difference between the sale price and the buy price produces a profit or loss.
A long position is the buying of a stock, commodity, or currency with the expectation that it will rise in value.
A short option strategy is a short position in which the tradeable interests are options.
A put is an option which conveys the right to sell something at a specific price.
A call option is an option to buy assets at an agreed price on or before a particular date.
A bear market is a condition in which securities prices fall and widespread pessimism causes the stock market's downward spiral to be self-sustaining. Investors anticipate losses as pessimism and selling increases. Stadion defines a bear market as a time when market indices fall at least 20%.
A bull market is a period of several months or years during which asset prices consistently rise. It is the opposite of a bear market, in which securities prices consistently fall. Stadion defines a bull market as a time when the market indices rise at least 20%.
One cannot invest directly in an index.
The Report’s commentary, analysis, opinions, advice, and recommendations represent the personal and subjective views 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.
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.
Not all investors are eligible for I shares. Other share classes are available, performance and expense may vary.
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The Stadion Funds are distributed by ALPS Distributors, Inc. An investment in the Funds involves risk, including loss of principal.