Hilton Tactical Income Fund

  • FUND SYMBOL

    HCYAX

  • CUSIP

    254939176

  • EXPENSE RATIO (GROSS/NET %)

    1.90 / 1.62*

  • INCEPTION DATE

    Sep 16, 2013

  • FUND SYMBOL

    HCYIX

  • CUSIP

    254939168

  • EXPENSE RATIO (GROSS/NET %)

    1.65 / 1.37*

  • INCEPTION DATE

    Sep 16, 2013

Overview

Direxion redesignated the Fund’s Class A Shares (HCYAX) as Investor Class Shares and the converted the Fund’s Class C Shares (HCYCX) to Investor Class Shares on June 29, 2018. Read More.

The Hilton Tactical Income Fund primarily seeks income with a secondary investment objective of capital appreciation consistent with the preservation of capital.

  HCYAX HCYIX
Overall Morningstar Rating1 ★★★★ ★★★★

Out of 229 Tactical Allocation funds as of 12/31/2019. An investments overall Morningstar Rating, based on its risk adjusted return, is a weighted average of its applicable 3-, 5-, and 10-year Ratings. See disclosures on the back for details.

Investment Philosophy & Management

Hilton’s Investment Philosophy

Hilton Capital Management follows a distinctive investment process that principally focuses on yield while attempting to mitigate market risk. The manager aims to invest in high quality companies that may offer an attractive level of risk adjusted returns. When a potential position is evaluated for inclusion, Hilton’s management team examines the company across their capital structure to determine where the investment opportunity offers the best risk adjusted return potential. They seek to limit the volatility in the portfolio and generate solid returns without taking on undue risk. The managers believe, through the use of tactical asset allocation amongst cash, equities, and fixed-income; they can generate attractive returns while reducing fund volatility over market cycles.

Investment Management

Hilton Capital Management, LLC, a subsidiary of Rafferty Holdings, LLC, was founded in 2001 and is a privately held firm based in Garden City, NY. As of 12/31/2019, the firm had approximately $2 billion in client assets.

  • William J. Garvey, Chief Investment Officer
    Mr. Garvey, with over 30 years of industry experience is the founder and Chief Investment Officer of Hilton Capital. Mr. Garvey has developed a distinctive investment process that serves as the core of the firm’s investment philosophy.
  • C. Craig O’Neill, Chief Executive Officer
    Mr. O’Neill, with 30 years in the industry is the Chief Executive Officer of Hilton Capital. Mr. O’Neill is a member of the investment committee as well as a co-portfolio manager.

  • Alexander D. Oxenham, CFA, Partner & Co-Chief Investment Officer
    Mr. Oxenham, with 22 years of industry experience, participates in the active management of the Hilton Capital investment strategy. Mr. Oxenham is a CFA charterholder and a standing member of the CFA Institute.

Strategy & Benefits

Principal Investment Strategy

  • The Fund is managed to employ a disciplined approach to balancing fixed income investments with historically higher income producing equity securities, with a focus on minimizing absolute risk and volatility but still taking advantage of short term opportunities.
  • In addition to targeting a consistent level of income for shareholders the Fund is also focused on creating a portfolio that offers the potential for both capital appreciation and preservation.
  • This actively managed Fund will invest in a diversified variety of income producing assets and provides monthly income distributions.
  • The Fund utilizes a collaborative team-based research and portfolio management process to ensure consistency surrounding portfolio construction coupled with diverse research views.

Key Strategy Benefits

  • Multi-sector equity and fixed-income approach which seeks to generate income and manage risk.
  • Needs-based security focus designed to seek higher dividends with lower cyclicality across market cycles.
  • Tactical management style aiming to avoid undue risk while taking advantage of short to medium term opportunities.
  • Income distributions occur monthly.

Diversification does not protect against a loss or ensure a gain. There is no guarantee the fund will achieve its investment objective.

Fund Details

Top Ten Equity Holdings (%)

Americold Realty Trust 2.89
Enterprise Products Partners L.P. 2.70
Oaktree Specialty Lending Corp. 2.40
Crown Castle International Corp. 2.36
Republic Services, Inc. 2.34
Ares Management Corp. 2.06
Thomson Reuters Corp. 2.05
Broadridge Financial Solutions, Inc. 1.98
KKR & Co., Inc. 1.96
NextEra Energy, Inc. 1.88

Top Ten Fixed Income Holdings (%)

U.S. Treasury Note 5.45
U.S. Treasury Note 5.25
U.S. Treasury Note 3.85
U.S. Treasury Note 2.35
Nuveen Mortgage Opportunity Fund 1.53
Brookfield Property Partners LP 1.32
Apple, Inc. 1.17
Ares Management Corp. 1.11
Walmart, Inc. 1.04
Nuveen Credit Strategies Income Fund 1.03

Fund Statistics

Beta (to the S&P 500) 0.35
Sharpe Ratio 1.15
Standard Deviation 5.57
Total Net Assets (Millions) 160
Total Number of Holdings 99
Wtd Average Market Cap (Billions) 64.29

Total Fund Exposure

Equity Assets (%)
Common 30.42
MLP 2.71
REIT 7.60
Fixed Income Assets (%)
Corporate Bonds 19.69
Fixed Income - Closed End 2.06
MBS 1.53
Preferred 14.43
U.S Government Bonds 18.83

All holdings and sector weightings are as of 12/31/2019

Distribution Rate

HCYAX HCYIX
30 Day SEC Yield - Subsidized 2.34 2.59
Annualized Distribution Yield 2.59 2.81
Monthly Per Share Distribution Rate 0.04 0.04

Source: Bloomberg. Index data as of 12/31/2019. Top holdings are subject to change.

Diversification does not protect against a loss or ensure a gain. There is no guarantee the fund will achieve its investment objective.

Annualized Distribution Yield is an annualized calculation of the monthly distribution per share divided by the pre-dividend net asset value. A portion of this amount may be considered tax deferred return of capital and could be subject to capital gains if sold for a gain.

30-day SEC Yields are a standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund’s filings with the SEC. The 30-day SEC Yield based upon a higher, gross expense ratio (unsubsidized yield), which includes expenses that would be incurred by the Fund if the Operating Services Agreement was not in place, is 3.05% for the I Class, 2.64% for the A Shares and 2.08% for the C Shares.

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Standard Deviation is a measure of the dispersion of a set of data from its mean.

Sharpe Ratio is a statistical measure that uses standard deviation and excess return to determine reward per unit of risk.

Weighted Average Market Cap is the average market capitalization (value of outstanding shares) taking into account the relative weight of each investment sourced from Morningstar.com.

Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates.

Tax Reporting

Tax Reporting Documents

 

Pricing and Performance

NAV information as of January 23, 2020. Line chart shows pricing trend over the last 30 days.

fund symbol

HCYAX

  • Net asset value (NAV)

    • 17.94
    • 0.02
    • 0.11

fund symbol

HCYIX

  • Net asset value (NAV)

    • 17.96
    • 0.01
    • 0.06

Performance information shown for periods prior to the close of business on December 5, 2014 is that of the Hilton Yield Plus Fund, a series of Managed Portfolio Series, which reorganized into the Fund on that date. Performance information from December 5, 2014 to June 1, 2015 reflects the performance of the Fund’s Investor Class Shares. Effective June 1, 2015, the Investor Class Shares converted to Class A Shares, and the performance information from June 1, 2015 to December 31, 2017 reflects the performance of the Fund’s Class A Shares. During the calendar year ended December 31, 2017, the Investor Class Shares were Class A Shares. Effective at the close of business on June 30, 2018, the Fund’s Class A Shares converted to Investor Class Shares.

* The Net Expense Ratio includes management fees, other operating expenses and Acquired Fund Fees and Expenses. If Acquired Fund Fees and Expenses were excluded, the Net Expense Ratio would be 1.23% for Investor Shares and 0.98% for Institutional Shares. The Fund’s adviser, Rafferty Asset Management, LLC (“Rafferty”) has entered into an Operating Expense Limitation Agreement with the Fund. Under the Operating Expense Limitation Agreement, Rafferty has contractually agreed to waive all or a portion of its management fee and/or reimburse the Fund for Other Expenses through September 1, 2021, to the extent that the Fund’s Total Annual Fund Operating Expenses exceed 1.23% for Investor Shares and 0.98% for Institutional Shares of the Fund’s average daily net assets (excluding, as applicable, among other expenses, taxes, swap financing and related costs, acquired fund fees and expenses, dividends or interest on short positions, other interest expenses, brokerage commissions and extraordinary expenses). If these expenses were included, the expense ratio would be higher. *The performance for the Investor Class Shares of the Fund includes the period prior to conversion of the Investor Class Shares on July 2, 2018. Effective at the close of business June 30, 2018, the Class A Shares of the Fund converted to Investor Class Shares.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Returns for performance under one year are cumulative, not annualized. For the most recent month-end performance please visit the funds website at www.direxion.com.

Short-term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. For additional information, see the fund’s prospectus.

Distributions

  • HCYAX
  • Hilton Tactical Income Fund (INV)
Record Date Ex Date Pay Date Income Dividend Short-Term Capital Gain Long-Term Capital Gain
12/31/2019 01/02/2020 01/02/2020 0.03146
11/29/2019 12/02/2019 12/02/2019 0.03146
10/31/2019 11/01/2019 11/01/2019 0.03146
09/30/2019 10/01/2019 10/01/2019 0.03146
08/30/2019 09/03/2019 09/03/2019 0.03146
07/31/2019 08/01/2019 08/01/2019 0.01014 0.02623
06/28/2019 07/01/2019 07/01/2019 0.03146
05/31/2019 06/03/2019 06/03/2019 0.03146
04/30/2019 05/01/2019 05/01/2019 0.03146
03/29/2019 04/01/2019 04/01/2019 0.03146
02/28/2019 03/01/2019 03/01/2019 0.03146
01/31/2019 02/01/2019 02/01/2019 0.03146
12/31/2018 01/02/2019 01/02/2019 0.03870
12/12/2018 12/13/2018 12/13/2018 0.00000 0.15804
11/30/2018 12/03/2018 12/03/2018 0.03870
10/31/2018 11/01/2018 11/01/2018 0.03870
09/28/2018 10/01/2018 10/01/2018 0.03870
08/31/2018 09/04/2018 09/04/2018 0.03870
07/31/2018 08/01/2018 08/01/2018 0.00570 0.03300
06/25/2018 06/26/2018 06/26/2018 0.03870
05/31/2018 06/01/2018 06/01/2018 0.03870
04/30/2018 05/01/2018 05/01/2018 0.03870
03/29/2018 04/02/2018 04/02/2018 0.03870
02/28/2018 03/01/2018 03/01/2018 0.03870
01/31/2018 02/01/2018 02/01/2018 0.03870
  • HCYIX
  • Hilton Tactical Income Fund (INST)
Record Date Ex Date Pay Date Income Dividend Short-Term Capital Gain Long-Term Capital Gain
12/31/2019 01/02/2020 01/02/2020 0.03414
11/29/2019 12/02/2019 12/02/2019 0.03414
10/31/2019 11/01/2019 11/01/2019 0.03414
09/30/2019 10/01/2019 10/01/2019 0.03414
08/30/2019 09/03/2019 09/03/2019 0.03414
07/31/2019 08/01/2019 08/01/2019 0.01101 0.02846
06/28/2019 07/01/2019 07/01/2019 0.03414
05/31/2019 06/03/2019 06/03/2019 0.03414
04/30/2019 05/01/2019 05/01/2019 0.03414
03/29/2019 04/01/2019 04/01/2019 0.03414
02/28/2019 03/01/2019 03/01/2019 0.03414
01/31/2019 02/01/2019 02/01/2019 0.03414
12/31/2018 01/02/2019 01/02/2019 0.04200
12/12/2018 12/13/2018 12/13/2018 0.00000 0.15804
11/30/2018 12/03/2018 12/03/2018 0.04200
10/31/2018 11/01/2018 11/01/2018 0.04200
09/28/2018 10/01/2018 10/01/2018 0.04200
08/31/2018 09/04/2018 09/04/2018 0.04200
07/31/2018 08/01/2018 08/01/2018 0.00619 0.03581
06/25/2018 06/26/2018 06/26/2018 0.04200
05/31/2018 06/01/2018 06/01/2018 0.04200
04/30/2018 05/01/2018 05/01/2018 0.04200
03/29/2018 04/02/2018 04/02/2018 0.04200
02/28/2018 03/01/2018 03/01/2018 0.04200
01/31/2018 02/01/2018 02/01/2018 0.04200