Stadion Trilogy Alternative Return Fund Commentary January 2020

January was an interesting month during which we saw domestic equities reach new highs early on and then observed a late month drop in global equities as the spread of Coronavirus in China stoked fears of a pandemic. The S&P 500 Total Return Index finished the month mostly flat with a -.04% return. Rates dropped significantly during the month as is often the case during an equity selloff. The Bloomberg Barclays U.S. Aggregate Total Return Bond Index finished the month +1.92%.

In January, we saw our dividend paying flight-to-quality equities struggle on a relative basis to the broader U.S. equity market. It was an interesting month as technology was one of the top performing sectors and catapulted growth stocks to highs where they massively outperformed value stocks. This action occurred despite the overall U.S. equity market remaining relatively flat for the month. The S&P 500 based collar that we have in place to help mitigate the risk of a large, prolonged drawdown in U.S. equity markets mirrored the broader market and remained mostly flat. The contribution effect of this portion of the fund was -.56%.

The option income portion of the fund was a bright spot for the month as our fixed income did well and so did most fixed income portfolios during the month. The option selling strategy that we employ in this portion of the fund was slightly negative but mostly flat for the month. This strategy struggled early in the month as we were buying options back at higher prices given the overall move from December into January but did well as the S&P 500 reverted later in the month. The contribution effect of this portion of the fund was +.17%. The market movement bucket was slightly negative for the month as both the long and short strategies employed in this component lost a small amount of money as the S&P 500 was roughly flat. The contribution effect of this portion of the fund was -.37%.

To view the most recent performance for the Stadion Trilogy Alternative Return 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 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 Total Return Index is an unmanaged index of 500 common stocks chosen for market size, liquidity and industry group representation. It is a market-value weighted index. As a total return index, it assumes reinvestment of all cash distributions.

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.

Flight-to-quality is the action of investors moving their capital away from riskier investments to safer ones.

A collar is an option strategy that limits the range of possible positive or negative returns on an underlying security to a specific range.

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.


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.