Third Quarter 2018

The All American Equity Fund had a total return of  6.14 percent in the third quarter of 2018, underperforming its benchmark, the S&P 500 Index, which returned 7.68 percent. See complete fund performance.

Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost.

Strengths

  • The largest contributors to the fund were its allocations to materials, consumer discretionary and industrials.
  • The fund’s underweight in consumer staples, energy and materials proved to be a good decisions, as evidenced by the allocation’s outperformance.
  • Investments in Hanesbrands, healthcare allocations and the Bank of New York Mellon were among the best contributors to fund performance.

Weaknesses

  • The smallest contributions in the fund were from allocations in real estate, utilities and financials.
  • The underweight allocation in financials, healthcare and technology was the principal driver of underperformance.
  • Investments in Applied Materials, Affiliated Managers Group and Intel were the fund’s worst contributors to performance.

Opportunities

  • The equity bull market is now the longest ever on record. Measured from its rise from the trough hit in March 2009, it has lasted over 3,400 days.
  • The U.S. economy grew stronger this summer, and analysts say it is likely to expand steadily in the months ahead, according to an index that measures the nation’s economic health. The Conference Board showed that the leading economic index rose 0.6 percent in July after a 0.5 percent gain in June. Measures of economic health that look ahead, such as business orders, were particularly strong in the month of July.
  • The number of Americans filing for unemployment benefits continued to decline during the quarter, suggesting that a strong economy was helping the labor market weather ongoing trade tensions between the United States and a host of other countries. The claims data is being closely watched for signs of layoffs as a result of the Trump administration's protectionist trade policy, which has left the United States embroiled in tit-for-tat tariffs with major trade partners including China, Mexico, Canada and the European Union.

Threats

  • Home construction across the U.S. was weaker than Wall Street had expected, with many analysts taking a bleak view of the housing market.
  • U.S. mortgage application activity decreased to its lowest level in two and a half years during the quarter as loan requests to refinance existing homes fell to their weakest level since December 2000.
  • U.S. consumer sentiment fell to a six-month low in the summer amid concern over trade tensions. While sentiment remains high by historical standards, uncertainty surrounding trade has strained confidence as Americans fear economic fallout from tariffs.

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The S&P 1500 Composite Index is a broad-based capitalization-weighted index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500, and the S&P 600. The index was developed with a base value of 100 as of December 30, 1994. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.

The Conference Board Leading Economic Index is an analytic system designed to signal peaks and troughs in the business cycle. The leading, coincident, and lagging economic indexes are essentially composite averages of several individual leading, coincident, or lagging indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily because they smooth out some of the volatility of individual components.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the All American Equity Fund and Holmes Macro Trends Fund as a percentage of net assets as of 9/30/2018: Hanesbrands Inc. (0.00% in All American Equity Fund and Holmes Macro Trends Fund), The Bank of New York Mellon Corp. (0.00% in All American Equity Fund and Holmes Macro Trends Fund), Applied Materials Inc. (2.32% in All American Equity Fund, 0.00% in Holmes Macro Trends Fund), Affiliated Managers Group Inc. (2.66% in All American Equity Fund, 0.00% in Holmes Macro Trends Fund), Intel Corp. (2.42% in All American Equity Fund, 0.00% in Holmes Macro Trends Fund), Fox Factory Holding Corp. (2.77% in Holmes Macro Trends Fund, 0.00% in All American Equity Fund), Cambrex Corp. (3.49% in Holmes Macro Trends Fund, 0.00% in All American Equity Fund), Sleep Number Corp. (3.34% in Holmes Macro Trends Fund, 0.00% in All American Equity Fund), Delphi Technologies PLC (2.25% in Holmes Macro Trends Fund, 0.00% in All American Equity Fund), Pitney Bowes Inc. (1.99% in Holmes Macro Trends Fund, 0.00% in All American Equity Fund), MGP Ingredients Inc. (2.41% in Holmes Macro Trends Fund, 0.00% in All American Equity Fund).

Net Asset Value
as of 11/20/2018

Global Resources Fund PSPFX $4.71 -0.11 Gold and Precious Metals Fund USERX $6.38 -0.12 World Precious Minerals Fund UNWPX $3.12 -0.05 China Region Fund USCOX $8.01 -0.08 Emerging Europe Fund EUROX $6.14 -0.16 All American Equity Fund GBTFX $24.39 -0.36 Holmes Macro Trends Fund MEGAX $17.97 -0.19 Near-Term Tax Free Fund NEARX $2.19 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change