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Stadion Trilogy Alternative Return Fund Commentary May 2020

The biggest gainer for the Stadion Trilogy Alternative Return Fund in May was the Option Income bucket which gained 0.88%. Luckily this was enough of a gain to make up for the losses in the Collared Equity and Market Movement buckets.  For most of the month, the market was range bound which is a good market environment for the Option Income bucket. 

Trilogy’s equity holdings underperformed slightly compared to the overall market and we also had to pay for our collar protection.  This caused a drag in this bucket. The Collared Equity bucket lost -0.45% for the month of May.

As markets moved higher, this hurt our Market Movement short calls and long puts we had in place.  Fortunately, we started getting closer to in the money with the long calls we have in this bucket which helped offset some of the losses. The Market Movement bucket lost -0.24%.

For the month of May, the Stadion Trilogy Alternative Return Fund A-Share 0.19%, the Bloomberg Barclays U.S. Aggregate Index rose 0.47%, and the S&P 500 Index gained 4.76%.

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.

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.

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.

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.

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.

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 each share class. Performance and expense may vary between share classes.

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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.