MODERN CAPITAL TACTICAL OPPORTUNITIES FUND CHANGES ITS NAME TO TACTICAL INCOME, MOVING TO MONTHLY DISTRIBUTIONS & PAYS OUT over 14% OVER IN DISTRIBUTIONS IN 2023
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Insights
The renaming of Modern Capital Tactical Opportunities Fund to Modern Capital Tactical Income Fund and the shift from quarterly to monthly distributions represent strategic modifications aimed at repositioning the fund within the investment market. This move suggests a focus on generating regular income streams, which could appeal to income-focused investors, particularly in a low-interest-rate environment where reliable dividends are in demand.
Comparing the fund's reported performance to the HFRI 500 Macro: Multi-Strategy Index, it is evident that the fund has outperformed the index significantly. This outperformance is notable, especially considering the fund's double-digit returns over three consecutive years. Such a track record can be a compelling selling point for potential investors seeking funds with a strong performance history.
However, investors should consider the impact of sales charges on their actual returns. For instance, the Class A shares with a sales charge show a notable reduction in returns compared to NAV. This fee structure's impact is an important consideration for investors when evaluating the fund's suitability for their portfolios.
The rebranding to a 'Tactical Income Fund' aligns with a growing trend in the asset management industry to provide clear, outcome-oriented investment products. This trend is driven by investor demand for transparency and products that meet specific financial goals. The monthly distribution model could also be seen as a response to investor preference for more frequent income, which can be particularly attractive to retirees or those seeking steady cash flow.
It is also important to analyze the broader market implications of such a fund's strategy. The emphasis on income in conjunction with capital appreciation could indicate a conservative approach to investment, potentially attracting a demographic of investors who are risk-averse but still looking for growth opportunities.
The change in distribution frequency from quarterly to monthly could have macroeconomic implications. Monthly distributions can provide a more consistent cash flow into the economy, potentially increasing consumer spending and providing a stabilizing effect during economic downturns. Additionally, if other funds follow suit, this could signify a shift in how income funds operate, potentially affecting the liquidity and volatility of the market.
Moreover, the fund's strategy and performance should be viewed in the context of current economic conditions. With the fund delivering substantial returns, it could be indicative of a favorable investment climate or superior fund management. However, investors should remain cautious, as past performance is not a guarantee of future results and economic shifts can rapidly alter the investment landscape.
Performance as of 12/31/23 | |||||||
Share Class | One | Three | Six | YTD | 1 Year | Annualized Return | Total Return |
Class A (NAV) | 3.04 % | 12.34 % | 6.07 % | 17.31 % | 17.31 % | 17.53 % | 48.02 % |
Class A (Sales charge | -1.74 % | 7.11 % | 1.22 % | 12.13 % | 12.13 % | 15.36 % | 42.09 % |
HFRI 500 Macro: Multi- | 0.75 % | 1.25 % | 5.26 % | 2.17 % | 2.56 % | 5.42 % | 14.85 % |
Class Advisor (NAV) | 3.01 % | 12.32 % | 6.02 % | 16.89 % | 16.89 % | 13.45 % | 33.93 % |
HFRI 500 Macro: Multi- | 0.75 % | 1.25 % | 5.26 % | 2.17 % | 2.56 % | 6.06 % | 15.28 % |
Kris Wild, President & CIO of Modern Capital, Inc added, "We are thrilled to begin 2024 as the Modern Capital Tactical Income Fund. The marketplace can now recognize what it is we do and exactly how we plan to do it. We continue to see a solid and favorable environment for delivering both income and capital appreciation in the coming year."
For more information on the fund please see the fund's prospectus here. Past performance is no guarantee of future results.
Modern Capital is an institutional asset management company with a focus on providing investment solutions for investment advisors, RIAs, and pension plans. For more information about Modern Capital, visit moderncap.com.
Please read the prospectus and consider the Fund's investment objectives, risks, and expenses before investing. To obtain a prospectus, containing this and other information, visit for prospectus. Holdings are subject to change and risk.
The Fund's investments are subject to risks, including loss of the principal amount invested. The Fund may not meet its objective. The Fund is subject to the following risks: Active trading may result in added expenses, lower return, and increased tax liability. The Fund will have high portfolio turnover rates because the advisor engages in high turnover trading strategies. Closed-End Funds (CEFs) are subject to investment advisory and other expenses, which the Fund will indirectly pay, resulting in duplicative fees. The underlying CEF's advisor may not meet the Fund's objective. Equity securities may experience value changes, their values may be more volatile than other asset classes' values. These value changes may result from factors affecting individual issuers, industries, or the stock market. The prospectus contains more information about the Fund's risks.
Distributor: Vigilant Distributors, LLC., Member FINRA/SIPC. There is no affiliation between Modern Capital Management Co., including its principals, and Vigilant Distributors, LLC.
Contact:
Michael Pierce
mpierce@moderncap.com
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SOURCE Modern Capital, Inc.
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