Stadion Trilogy Alternative Return Fund

The Stadion Trilogy Alternative Return Fund seeks total return, with an emphasis on lower risk and volatility than the U.S. equity markets. The Fund seeks to be a low-volatility alternative to conservative investments, providing daily liquidity through three distinct and complimentary components.

Prices as of 8/14/2017

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Share Class Ticker CUSIP Inception Date Current NAV Previous NAV Difference
A STTGX 85235B707 04/01/12 $11.26 $11.22 0.36%
C STTCX 85235B806 04/01/12 $11.04 $11.00 0.36%
I STTIX 85235B889 04/01/12 $11.30 $11.25 0.44%

Prices as of 8/14/2017

Fund Structure: Three Distinct and Complementary Non-leveraged Option Strategies



Diversified Sources of Return




Adviser has contractually agreed to waive a portion of the Fund’s expenses. Without such waivers, the Fund’s yield would have been 1.10%, and total return would have been lower.

Standard Deviation


 

Annualized Return


Long Term Results




ETF Risk

There are additional costs and potential risks associated with investing in domestic and international exchange-traded funds (ETFs). Investments in equities, including ETFs, are subject to market risks, sector risks, tracking risks, ETF net asset value and market price risks. Additionally, investors will indirectly bear fees and expenses charged by the underlying ETFs and investment companies in which a Stadion portfolio invests. International investing involves certain risks not usually associated with domestic investing, including currency fluctuation, economic and political volatility, foreign taxation and differences in financial standards.

There is no guarantee that this investment strategy will succeed, the strategy is not an indicator of future performance and investment results may vary. The investment strategy presented is not appropriate for every investor and individual clients should review with their financial advisors the terms and conditions and risk involved with specific products or services. Stadion’s actively managed portfolios may underperform during bull markets. Derivative instruments may be difficult to value and may be subject to wide swings in valuations caused by changes in the value of the underlying instrument. The use of these instruments requires special skills and knowledge of investment techniques that are different than those normally required for purchasing and selling securities. The portfolio could also experience losses if it is unable to close out a position because the market for an instrument or position is or becomes illiquid. Negative returns may occur in any type of market.

Collar: A protective option strategy created by purchasing an out of the money put option while simultaneously writing an out of the money call option.

Performance as of 7/31/17 (%)

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3 Mo. YTD 1 YR 3 YR 5 YR Since Inception
Class A NAV 1.20 2.22 3.87 3.32 2.68 2.99
Class A, Load -4.63 -3.65 -2.06 1.31 1.46 1.85
Class C NAV 1.01 1.76 3.04 2.51 1.90 2.22
Class C, CDSC 0.01 0.76 2.04 2.51 1.90 2.22
Class I 1.24 2.34 4.12 3.52 2.90 3.21
HFRX Absolute Return Index 0.90 1.86 1.79 1.52 2.07 1.81
Morningstar Category: Multialternative 1.01 3.00 2.69 0.54 1.42 1.24
Bloomberg Barclays US Aggregrate Bond Index 1.10 2.71 -0.51 2.71 2.02 2.55

Inception Date for Class A, C, I shares: 4/1/12. Maximum sales load: 5.75

Inception Date for Class A, C, I shares: 4/1/12. Maximum sales load: 5.75

Inception Date for Class A, C, I shares: 4/1/12. Maximum sales load: 5.75

Performance as of 7/31/17 (%)

Most Recent Quarter End Performance as of 6/30/17 (%)

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3 Mo. YTD 1 YR 3 YR 5 YR Since Inception
Class A NAV 0.57 1.67 4.28 2.71 2.87 2.93
Class A, Load -5.22 -4.17 -1.73 0.71 1.65 1.78
Class C NAV 0.46 1.39 3.54 1.92 2.13 2.18
Class C, CDSC -0.54 0.39 2.54 1.92 2.13 2.18
Class I 0.70 1.89 4.52 2.94 3.13 3.18
HFRX Absolute Return Index 0.72 1.38 1.92 1.17 1.93 1.75
Morningstar Category: Multialternative 0.67 2.34 3.06 0.32 1.68 1.30
Bloomberg Barclays US Aggregrate Bond Index 1.45 2.27 -0.31 2.48 2.21 2.50

Inception Date for Class A, C, I shares: 4/1/12. Maximum sales load: 5.75

Inception Date for Class A, C, I shares: 4/1/12. Maximum sales load: 5.75

Inception Date for Class A, C, I shares: 4/1/12. Maximum sales load: 5.75

Most Recent Quarter End Performance as of 6/30/17 (%)

Expense Ratio as of 7/31/17

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Gross 1.97%
Current4 1.77%
Gross 2.75%
Current4 2.55%
Gross 1.76%
Current4 1.56%

Expense Ratio as of 7/31/17

Shareholder Fees

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Maximum Sales Charge (Load) 5.75%
Maximum Sales Charge (Load) Imposed on Purchases (as a Percentage of Offering Price) 5.75%
Maximum Deferred Sales Charge (Load) (as a percentage of the amount redeemed)1 1.00%
Redemption Fee None
Exchange Fee None
Maximum Sales Charge (Load) None
Maximum Sales Charge (Load) Imposed on Purchases (as a Percentage of Offering Price) None
Maximum Deferred Sales Charge (Load) (as a percentage of the amount redeemed)3 1.00%
Redemption Fee None
Exchange Fee None
Maximum Sales Charge (Load) None
Maximum Sales Charge (Load) Imposed on Purchases (as a Percentage of Offering Price) None
Maximum Deferred Sales Charge (Load) (as a percentage of the amount redeemed) None
Redemption Fee None
Exchange Fee None

Shareholder Fees

Annual Fund Operating Expenses

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Management Fees 1.25%
Distribution and / or Service (12b-1) Fees2 0.25%
Other Expenses 0.35%
Acquired Fund Fees & Expenses 0.12%
Total Annual Fund Operating Expenses 1.97%
Management Fee Waivers and Expense Reimbursements N/A
Total Annual Fund Operating Expenses after Management Fee Waivers and Expense Reiumbursements N/A
Management Fees 1.25%
Distribution and / or Service (12b-1) Fees2 1.00%
Other Expenses 0.38%
Acquired Fund Fees & Expenses 0.12%
Total Annual Fund Operating Expenses 2.75%
Management Fee Waivers and Expense Reimbursements N/A
Total Annual Fund Operating Expenses after Management Fee Waivers and Expense Reiumbursements N/A
Management Fees 1.25%
Distribution and / or Service (12b-1) Fees N/A
Other Expenses 0.39%
Acquired Fund Fees & Expenses 0.12%
Total Annual Fund Operating Expenses 1.76%
Management Fee Waivers and Expense Reimbursements N/A
Total Annual Fund Operating Expenses after Management Fee Waivers and Expense Reiumbursements N/A

Annual Fund Operating Expenses

Performance data quotes represents past performance. Past performance is no guarantee of future results. Investments are subject to risk, and any of Stadion’s investment strategies may lose money. Stadion’s actively managed portfolios may underperform in bull markets. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance data may be lower or higher than the performance data quoted. To review our most recent monthly performance, please visit www.stadionfunds.com. The performance data with sales load reflects the 5.75% maximum sales charge (load) imposed on purchases (as a % of offering price). Return figures include changes in principal value and assume reinvestment of all dividends and capital gain distributions. For periods of less than 1 year, return figures are not annualized and represent cumulative total return.

1In the case of investment at or above the $1 million breakpoint (where you do not pay an initial sales charge), a 1.00% contingent deferred sales charge ("CDSC") may be assessed on shares redeemed within 12 months of purchase.

2The 12b-1 fee may be used to compensate broker-dealers, banks, insurance companies, and other financial intermediaries for ongoing record keeping and administrative services that would otherwise be performed by the Funds' administrator or transfer agent.

3A 1.00% CDSC will be assessed on shares purchased and redeemed within 12 month of purchase.

4The Current Expense Ratio listed above does not include Acquired Fund Fees and Expenses. The Current Expense Ratio is the expense ratio as a percentage of the Fund's average daily net assets as of the date listed above. The Current Expense Ratio may fluctuate based upon a number of factors, including changes in the Fund's net assets.

Stadion Money Management, LLC (the “Adviser”) has entered into an Expense Limitation Agreement with the Trilogy Alternative Return Fund under which it has contractually agreed to waive Management Fees and to assume other expenses of the Fund, if necessary, in an amount that limits annual operating expenses (exclusive of interest, taxes, brokerage commissions, extraordinary expenses, Acquired Fund Fees and Expenses and payments, if any, under a Rule 12b-1 Distribution Plan) of Class A, Class C and Class I shares to not more than 1.70% of the average daily net assets allocable to each Class of the Fund. The Expense Limitation Agreement is currently in effect until October 1, 2017. The Expense Limitation Agreement may be terminated by the Trust or the Adviser at the end of its then-current term upon not less than 90 days’ notice. The Fund’s performance has been positively impacted by the Expense Limitation Agreement. For the Stadion Trilogy Alternative Return Fund, Acquired Fund Fees and Expenses were 0.12% of the Fund’s average daily net assets for the most recent fiscal year. The Current Expense Ratio is the expense ratio as a percentage of the Fund’s average daily net assets as of the date listed above. The Current Expense Ratio may fluctuate based upon a number of factors, including changes in the Fund’s net assets. For any such purchases where a finder’s fee is paid by the Advisor a contingent deferred sales charge (CDSC) will be charged at the time of redemption if the shares are redeemed within 12  months of the purchase date. The CDSC will be based on the original purchase cost or the current market value of the shares being sold, whichever is less. A 1.00% CDSC will be assessed on class C shares purchased on or after October 1, 2012 and redeemed within 12 months of purchase. Stadion and the Stadion S are a registered service mark of Stadion Money Management, LLC.

Risk Statistics as of 7/31/17

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Fund HFRX Absolute Return Index Morningstar Category: Multialternative S&P 500 Index Bar Cap Agg
Beta vs S&P 500 0.18 0.06 0.27 1.00 -0.03
Downside Risk 2.36% 1.00% 2.37% 7.19% 2.08%
Maximum Drawdown -3.31% -1.49% -6.58% -8.36% -3.67%
Standard Deviation 3.35% 1.43% 3.04% 9.89% 2.82%
Sharpe Ratio 0.91 1.16 0.36 1.35 0.85
Correlation 0.53 0.43 0.87 1.00 -0.09
Sortino Ratio 1.60 2.25 0.49 2.48 1.37

Risk Statistics as of 7/31/17

Top 5 Fixed Income Holdings Ranked by Weight as of 7/31/17

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Ticker Holding Holding Weight
MBB iShares MBS 20.0%
CSJ iShares 1-3 Year Credit 17.5%
VGIT Vanguard Intermediate-Term Government 15.0%
LQD iShares iBoxx Investment Grade Corporate 10.0%
CIU iShares Intermediate Credit 10.0%

Duration: 4.9 Years | Maturity: 7.1 Years | Quality: A3/BBB+ | Yield: 2.7%

Duration: 4.9 Years | Maturity: 7.1 Years | Quality: A3/BBB+ | Yield: 2.7%

Duration: 4.9 Years | Maturity: 7.1 Years | Quality: A3/BBB+ | Yield: 2.7%

Top 5 Fixed Income Holdings Ranked by Weight as of 7/31/17

Top 5 Equity Holdings Ranked by Market Cap as of 7/31/17

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Holding* Holding Dividend Yield
APPLE INC 1.61%
MICROSOFT CORP 2.18%
JOHNSON & JOHNSON 2.54%
WELLS FARGO & CO 2.91%
WAL-MART STORES INC 2.53%

Beta: 0.90 | Number of Holdings: 40 | Market Cap: $122.0 billion

Beta: 0.90 | Number of Holdings: 40 | Market Cap: $122.0 billion

Beta: 0.90 | Number of Holdings: 40 | Market Cap: $122.0 billion

Top 5 Equity Holdings Ranked by Market Cap as of 7/31/17

All holdings information is provided for informational purposes only and should not be deemed as a recommendation to buy the securities mentioned. The Fund’s holdings are subject to change at any time. 

*As of 7/31/17, each of the equity holdings listed represented 2.5% of the equity holdings.

The Statistics presented are defined as follows. Beta is a measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager’s return series to match that of the benchmark used to measure beta. Downside Risk is calculated in the same manner as Standard Deviation, but only those observations below the mean are used in the calculation. Maximum Drawdown measures the largest percentage decline from a peak to a trough. Standard Deviation measures the average deviations of a return series from its mean, and is often used as a measure of risk. The Sharpe ratio measures the excess return per unit of deviation, or risk. Correlation is a measure of how investments move in relation to one another. A correlation of 1 means the two asset classes move exactly in line with each other, while a correlation of -1 means they move in the exact opposite direction. Up market capture is a measure of a portfolio’s performance relative to an index in up markets. Down market capture is a measure of a portfolio’s performance relative to an index in down markets. The Sortino Ratio, a variation of the Sharpe ratio, differentiates harmful volatility from volatility in general by using downside deviation instead of standard deviation in the denominator of the formula. Collared Equity: At times it may be impossible to simultaneously execute transactions in all of the options involved; there is a possibility of a loss on both sides of a combination transaction; if one side of a transaction is exercised or closed out, the remaining side of the transaction may have increased risk exposure; multi-leg strategies are subject to multiple commissions, fees and charges. Income: Writing covered calls for potential income limits upside potential of underlying securities; writing puts may force the investor to purchase the underlying security during a period of unfavorable price declines. Fixed Income Holdings: Quality: Average Moody’s / S&P rating.

Stadion Trilogy Alternative Return Fund

Photo of Brad Thompson, CFA

Brad Thompson, CFA, Chief Investment Officer, Investment Committee member

  • 21 years as a Portfolio Manager
  • 30 years trading experience

Brad Thompson joined Stadion in 2006, bringing 20+ years of financial analysis, investment management, and fund management experience with him to Stadion, where he manages the Stadion Portfolio Management team. Prior to joining Stadion, Brad served as the Chief Investment Officer and Chief Financial Analyst for Global Capital Advisors. Brad has a Bachelor of Business Administration Degree in Finance from the University of Georgia, and also holds the Chartered Financial Analyst designation. Brad is a member of the CFA Institute and the Bermuda Society of Financial Analysts and also holds the Chartered Retirement Plan Specialist Designation. Brad has served on the board of the Executive Leadership Council for the American Cancer Society and on the Board of Trustees for the University of Georgia Terry College of Business Student Managed Investment Fund. Brad enjoys watching UGA football and spending time with his family.

Photo of Will McGough, CFA

Will McGough, CFA, Senior Vice President, Portfolio Manager

  • 6 years as a Portfolio Manager
  • 14 years as a Portfolio Analyst

Will McGough joined Stadion Money Management in 2003. He leads the implementation of model-driven investment decisions and investment/market analysis to fulfill Stadion's investment products’ mandates. Will also helps guide the development of systems and processes critical to achieving scalable growth. A key interface with Stadion's institutional partners, Will is responsible for Stadion's best execution efforts and has played a pivotal role in managing Stadion's operational on-boarding of new products and the Portfolio Management team's launch or integration of them. Will received his BBA in Finance from the University of Georgia and also holds the Chartered Financial Analyst designation. Will is a member of the CFA Institute, the CFA Society of Atlanta, the American Association of Professional Technical Analysts, National Association of Active Investment Managers, the UGA Alumni Association and National Eagle Scout Association. Outside of the office, Will and his wife Casey lead an active community life and stay busy keeping up with their two young daughters and a houseful of dogs.

Photo of Clayton Shiver, CFA

Clayton Shiver, CFA, Portfolio Manager

  • 6 years as a Portfolio Analyst

Clayton Shiver joined Stadion's Portfolio Management team in 2009 and is a portfolio manager for the Trilogy Alternative Return strategy and the Alternative Income strategy. Clayton plays a key role in research, analysis and high level process driving the options based multi-strategy portfolios. He is also involved in the day to day decision making and implementation of the strategies in terms of daily positioning and trade strategy. Clayton heads up performance analysis and composite construction that helped Stadion to complete its Global Investment Performance Standards (GIPS) compliance verification, and continues to maintain composites for the firm. Clayton helps design and monitor systems that help the Portfolio Management team to manage a growing number of strategies across a growing number of platforms. Clayton received a BBA in Finance from the University of Georgia and is a member of the CFA Institute and the CFA Society of Atlanta. In his free time, Clayton enjoys gardening, being outdoors and spending time with his family.

Performance data quotes represents past performance. Past performance is no guarantee of future results. Investments are subject to risk, and any of Stadion’s investment strategies may lose money. Stadion’s actively managed portfolios may underperform in bull markets. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance data may be lower or higher than the performance data quoted. To review our most recent monthly performance, please visit www.stadionfunds.com. The performance data with sales load reflects the 5.75% maximum sales charge (load) imposed on purchases (as a % of offering price). Return figures include changes in principal value and assume reinvestment of all dividends and capital gain distributions. For periods of less than 1 year, return figures are not annualized and represent cumulative total return.

Investment Risks:
Investment in the Fund is subject 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 the Fund is a “fund of funds,” an investor will indirectly bear fees and expenses charged by the underlying ETFs and investment companies in which the Fund invests in addition to the Fund’s direct fees and expenses. More information about these risks and other risks can be found in the Fund’s prospectus.

Derivative instruments may be difficult to value and may be subject to wide swings in valuations caused by changes in the value of the underlying instrument. The use of these instruments requires special skills and knowledge of investment techniques that are different than those normally required for purchasing and selling securities. The portfolio could also experience losses if it is unable to close out a position because the market for an instrument or position is or becomes illiquid. Negative returns may occur in any type of market. Collar: A protective option strategy created by purchasing an out of the money put option while simultaneously writing an out of the money call option.

The index shown is defined as follows. The HFRX Absolute Return Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. As a component of the optimization process, the index selects constituents which characteristically exhibit lower volatilities and lower correlations to standard directional benchmarks of equity market and hedge fund industry performance. 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 US Aggregate 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. All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends. You cannot invest directly in the Index. The Morningstar Multialternative Category is a benchmark created and published by Morningstar and defines Alternative as “Alternative funds may take short positions or invest in currencies, derivatives, or other instruments.”

© 2017 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar Rating for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history.  Exchange traded funds and open ended mutual funds are considered a single population for comparative purposes.  It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance.  The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.  The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-,five-,and 10 year (if applicable) Morningstar Rating metrics.  The weights are 100% three-year rating for 36-59 months of total returns, 60% five year rating/40%three-year rating for 60-119 months of total returns, and 50% 10 year rating/30%five-year rating/20%three year rating for 120 or more months of total returns.  While the 10 year overall rating formula seems to give the most weight to the 10 year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Stadion Trilogy Alternative Income Fund was rated against the following numbers of Multi-alternative funds over the following time periods: 243 funds in the last three years. With respect to these Multi-alternative funds, the Stadion Trilogy Alternative Return Fund received a Morningstar Rating of 5 stars for the three-year period. 4 star overall rating out of 243 Multi-alternative funds as of 6/30/17. Past performance is no guarantee of future results. Morningstar Rating is for the I share class only; other classes may have different performance characteristics.

Stadion is the source for all of the graphs.

The investment objective of the Fund is to seek long-term capital appreciation. 

Prior to 3/28/14, the Stadion Trilogy Alternative Return Fund was named the Stadion Trilogy Fund. 

Click here for a link to the Fund's prospectus.

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.