How We Manage Money
Our strategies are simple but powerful: Over time, our goal is to capture most of the market's good times and miss most of its bad times. We believe that missing severe market drops is essential to investment success, because the less investors lose during downturns, the less they have to make up before their gains become true gains during a rebound. Making money is important, but protecting that money can be just as important.
We believe our active management strategies set us apart from many investment managers who employ buy-and-hold methodologies. We don't pretend to predict the market - that would be foolish. Rather, our proprietary processes are based on science and discipline. Our data-driven models recommend investment changes based on market conditions, and our money managers make changes to the Stadion portfolios and funds based solely on these indicators.
Smart Investing Made Easy
Stadion's investment models are designed to provide a scientific, disciplined money management approach that emphasizes long term results and portfolio risk to help advisors and clients achieve their financial goals without the degree of volatility often associated with equity investing. While we cannot guarantee that our results will meet specific long term financial targets, our well defined, repeatable processes are designed to offer a smoother ride along the way.
Winning By Not Losing Over Time
Obviously, no investment strategy can allocate assets perfectly every time. It's possible to over- or under-emphasize the wrong investment. The intent of Stadion's risk-averse approaches is to deliver more satisfying results than traditional buy-and-hold strategies, accepting the possibility that Stadion may miss some upswings in order to avoid downside risk. We believe our investors benefit from Stadion's constant attention to managing portfolio risk with the intent of reducing downside volatility. Because we rigorously follow our models, investors know what to expect from us. After all, pacing and discipline is what's needed to win any long distance race, and long-term investing is no different.
There are additional costs and potential risks associated with investing in domestic and international Exchange-traded Funds (ETFs). 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, small capitalization companies risk and derivative risks, currency risk and emerging markets 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 Funds' prospectus.
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. Derivative instruments can be volatile and the potential loss to the Fund may exceed the Fund's initial investment. 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 Fund 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.