Stadion Trilogy Alternative Return Fund Commentary October 2019

Equities rallied in October after a little bit of a volatility in the beginning of the month. This upward action seemed to be mostly hitched to a potential "mini-deal" with China which, if it happens, might alleviate some uncertainty around global trade. The S&P 500 Total Return Index was +2.177% for the month. On the fixed income side of things, the front end of the yield curve, which marks the rate for shorter duration instruments, came down a little bit while the back end, which does the same for longer duration products, rose. The Bloomberg Barclays US Aggregate Total Return Index was +.30%.

Inside the Trilogy portfolio we saw positive performance in the collared equity sleeve. While the equities rose with broader indices, we saw some drag from our S&P 500 based collar which serves to help mitigate losses during prolonged drawdowns in equity markets. The contribution effect of this portion of the fund was .03%.

The option income component had a good month as we saw fixed income contribute slightly, but the bulk of the return was from our option selling component. Volatility dropped significantly during the month which helped positions we were already short. We were also able to take advantage of early moves to close trades at profits prior to larger moves in the S&P 500. The contribution effect of this portion of the fund was .33%.

The market movement portion of the fund was a drag during October. The move higher which helped our long portion was offset by losses from the protection that we have in this portion of the portfolio in the form of long put spreads. The contribution effect of this portion of the fund was -.55%.

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 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices.

The Bloomberg Barclays Global Aggregate Bond Index is a flagship measure of global investment grade debt from twenty-four local currency markets. This multi-currency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

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 long (or long position, AKA exposure) ) is the buying of a security such as a stock, commodity or currency with the expectation that the asset will rise in value.

A short, or short position AKA exposure, 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 call spread is an option spread strategy that is created when equal number of call options are bought and sold simultaneously. 

A put spread is an option spread strategy that is created when equal number of put options are bought and sold simultaneously. 

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.