October 9, 2020
The biggest gainer to the Stadion Trilogy Fund in September was the Collared Equity bucket as the Fund’s stock holdings outperformed the overall market. The outperformance from the Fund’s stocks helped the Collared Equity bucket add 0.27% to the Fund’s performance. The S&P 500 Index declined in the month of September so the positive performance in this bucket was a nice value add.
The Option Income bucket lost -0.26% in the month of September. Given the move down from the market highs, the short put spreads in this bucket detracted from the Fund’s performance. This bucket performs at its best when markets chop sideways compared to a one-sided move (i.e. up or down). Had there been a rebound during September, this bucket could have added value.
The Market Movement bucket lost -1.01% in September. Unfortunately, as the market declined, we did not see a rise in volatility that normally accompanies a down move. The Fund also has some long-standing long calls that slightly lost value from the move lower. These two reasons were the cause of this bucket losing -1.01% in September.
The Stadion Trilogy Alternative Fund A-Share decreased -1.0%, the Bloomberg Barclays US Aggregate Index declined -0.05%, and the S&P 500 Index lost -3.8%.
To view the most recent performance for the Stadion Trilogy Alternative Return Fund, click here.
A collar is an option strategy that limits the range of possible positive or negative returns on an underlying security to a specific range.
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.
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 each share class. Performance and expense may vary between share classes.
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.