USA Mutuals Vice Fund Class A Shares (VICAX)

Overview

This fund specializes in investing a significant portion of its assets in equities related to what are often considered vice industries - notably alcoholic beverages, defense/aerospace, gaming, and tobacco. The strategy mandates that at least 80% of the fund’s net assets, along with any borrowings for investment purposes, are allocated towards companies substantially generating revenue from these sectors. Moreover, the fund is committed to concentrating a minimum of 25% of its net assets directly into these four vice industries, ensuring a focused investment approach. However, it maintains a cap, ensuring no single industry represents more than 80% of its total net assets, to diversify risk and exposure. This approach reflects a targeted investment philosophy, seeking to capitalize on the unique growth and revenue stability often found within these sectors.

Products and Services

The fund offers investment opportunities that are distinctly centered around vice industries with the following breakdown:

• Alcoholic Beverages: Investments in companies involved in the production, distribution, and sale of alcoholic products. This segment leverages the consistent demand and potential growth within the global alcoholic beverage market, offering investors exposure to a sector with historical resilience to economic downturns.
• Defense/Aerospace: Focusing on companies that operate within the defense and aerospace industry. This includes a range of firms from manufacturers of military equipment to companies involved in aerospace technology and production. Investments in this area capitalize on the ongoing global demand for defense and aerospace technology, as well as government and defense spending.
• Gaming: Targeting companies within the gaming industry, including developers, producers, and distributors of video games, as well as those operating gaming facilities. This segment of the fund taps into the dynamic growth of the gaming industry, driven by increasing consumer engagement and technological advancements.
• Tobacco: Investments in companies involved in the tobacco industry, including the production, marketing, and distribution of tobacco and related products. This sector is known for its high dividend yield and the relatively inelastic demand for its products, offering a potentially stable source of revenue for investors.