VICE Fund Celebrates Solid 10-Year Track Record
A 5-Star Morningstar Rating and Top 3% Peer Ranking for the 10-Year Period Validate the VICE Fund's Investment Strategy
DALLAS, Sept. 17, 2012 /PRNewswire/ -- The USA Mutuals VICE Fund is celebrating its 10-year anniversary with a 5-star Morningstar rating. For the 10-year period ended August 31, 2012, the VICE Fund (VICEX: investor class) produced an average annual return of 8.94% versus 6.49% for the S&P 500 Index, and was ranked 13th of the 837 funds (top 3%) in Morningstar's large blend category during that period.
The VICE Fund invests primarily in equity securities of companies in the tobacco, alcohol, gaming and aerospace/defense industries. The companies in these industries have typically generated attractive levels of free cash flow, have had strong brand recognition, have enjoyed high profit margins and have benefitted from significant barriers to entry.
"The industries where we invest have historically performed well regardless of economic conditions," said Gerry Sullivan, Portfolio Manager of the VICE Fund. "We focus on selecting the best companies from these defensive growth industries, which we believe are good industries for investment, but even more attractive in today's volatile market. The VICE Fund should be viewed as a core holding in an investor's portfolio."
"Being awarded Morningstar's highest rating for the Fund's 10th anniversary validates the investment merit of the VICE Fund's strategy," added Jerry Szilagyi, President of USA Mutuals. "Not only has the Fund outperformed over time, but the impressive levels of free cash flow generated by the companies we invest in have provided investors with attractive dividend payouts and downside protection."
The VICE Fund is widely available to investors through financial advisors or directly with the Fund through Investor (VICEX), class A (VICAX) and class C (VICCX) shares.
Average Annualized Total Return Performance as of June 30, 2012
Year to Date |
1 Year |
3 Year |
5 Year |
Since |
|||||
VICE Fund (VICEX: Investor Class) |
10.52% |
7.11% |
17.14% |
0.75% |
8.88% |
||||
S&P 500 Index |
9.49% |
5.45% |
16.39% |
0.22% |
6.22% |
||||
Performance data quoted represents past performance and does not guarantee future results. The 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 of the Fund may be lower or higher than the performance quoted. The gross expense ratio for the Fund is 1.73%. The Fund imposes a 1.00% redemption fee on shares held less than 60 days. Performance does not reflect redemption fee. Had the fee been included, returns would be lower. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783.
About USA Mutuals
USA Mutuals offers two mutual funds, the VICE Fund (VICEX, VICAX & VICCX) and the Generation Wave Growth Fund (GWGFX).
Past performance is not a guarantee of future results.
The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectuses contain this and other information about the investment company, and they may be obtained by contacting 866.264.8783 or go to www.vicefund.com. Read it carefully before investing.
Mutual fund investing involves risk; principal loss is possible. The VICE Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. The Fund invests in foreign securities, which involve greater volatility and political, economic and currency risks and differences in accounting methods.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ (based on a Morningstar Risk Adjusted Return measure that accounts for variation in a fund's monthly performance, including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, and next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The USA Mutuals VICE Fund received 5 stars among 1528 for the three-year, 3 stars among 1332 for the five-year, 5 stars among 841 for the ten-year period and 4 stars among 1528 large blend funds overall for the period ending 8/31/12.
Morningstar rankings represent a fund's total-return percentile rank relative to all funds that have the same Morningstar category. The highest percentile rank is 1 and the lowest is 100. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees. Morningstar ranked the VICE Fund in the top 43%, 3%, 49% and 3% out of 1719, 1528, 1332 and 841 large blend funds for the one-, three- five- and 10-year periods ending 8/31/2012, respectively.
The S&P 500 Index is a capitalization-weighted index of 500 stocks. You cannot invest directly in an index. Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income.
Free cash flow is revenue less operating expenses including interest expenses and maintenance capital spending. It is the discretionary cash that a company has after all expenses and is available for purposes such as dividend payments, investing back into the business or share repurchases.
The USA Mutuals Funds are distributed by Quasar Distributors, LLC.
SOURCE USA Mutuals VICE Fund
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