Stadion Trilogy Alternative Return Fund Commentary March 2020

The fears of the Coronavirus Pandemic that started in February escalated in March and took a toll on equity markets as every major index quickly fell into Bear Market territory. Market volatility remained at historically high levels that we haven’t seen since 2008 as the CBOE Volatility Index averaged 57.75 points and peaked at 82.69 points.  This type of market environment can be detrimental to a portfolio, but the Trilogy Fund was able to take advantage of this volatile price action as two of the 3 Trilogy buckets had positive performance in March.

The Option Income bucket was the largest contributor to performance in the Trilogy Fund as it returned 7.05%.  When volatility is high, option prices are inflated as the uncertainty creates an opportunity to collect more premium on the options Trilogy is opening in this bucket.  Because of the move down in markets, the Fund was able to close some of the call options in this bucket for a solid profit.

The Market Movement bucket was also able to collect more premium for the calls Trilogy had sold throughout the month of March.  These call options combined with the puts we had open provided positive gains to the Fund’s performance.  The Market Movement bucket returned 2.14% for the month of March.

Given markets experienced the quickest Bear Market in U.S. history, the Collared Equity bucket had a loss of -7.37% for the month of March.  The Fund’s option collar was able to provide some protection during this down move, which lessened the impact of the drawdown.

The Option Income and Market Movement buckets were able to negate the losses in the Collared Equity bucket.  For the month of March, the Stadion Trilogy Alternative Fund I-Share returned 1.82%, the Bloomberg Barclays US Agg Index lost -0.59%, and the S&P 500 Index lost -12.35%.

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.

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 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.

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 CBOE Volatility Index is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices.

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.