HRSTX generated 9.66% return in 2018, significantly outpacing the S&P 500 TR Index
Huntington, NY, January 4, 2019 — Rational Advisors, Inc., a family of funds rooted in the investment philosophy of applying a rational approach to investing, announced today strong first calendar-year results for the Rational Tactical Return Fund (HRSTX) under its new sub-advisor as well as a name change from the Rational Hedged Return Fund.
HRSTX, which had a 2018 return of 9.66% and a standard deviation of 2.15%, seeks total return consisting of long-term capital appreciation and income. The Fund utilizes an options-based strategy that primarily invests in long and short call and put options on futures contracts on the S&P 500 Index. Warrington Asset Management LLC, the Fund’s sub-advisor, has significantly outperformed the S&P 500 TR Index with strong performance during periods of equity market volatility since taking over the Fund in December 2017.
“I am very pleased that we have been able to produce such a solid return this year for our clients.”
noted Scott Kimple, Portfolio Manager of HRSTX. “We always strive to produce returns uncorrelated to broader markets, and this past year highlights the achievement of that objective.”
As of January 1, 2019, the Fund has been renamed the Rational Tactical Return Fund, reflecting the name of the trading strategy managed by the Sub-Advisor for institutional clients. Warrington has managed the Tactical Return Composite for their proprietary accounts since May 2012.
The Rational Tactical Return Fund trades under the ticker symbols: HRSAX, HRSFX, and HRSTX. For more information on the Fund and Rational Funds’ range of mutual fund offerings, please visit: www.rationalmf.com.
About Rational Funds
Rational Funds is a family of funds rooted in the investment philosophy of applying a rational approach to investing. Rational Funds currently offers seven mutual fund products, which employ rigorous research backed by sound academic theory, and disciplined and systematic investment approaches. The funds strive to deliver superior risk-adjusted returns, at the apex of successful modern portfolio
strategies for today’s investor. For more information on Rational Funds and its mutual fund products,
please visit: www.rationalmf.com. Performance (%): Ending December 31, 20181 (Annualized if greater than 1 year)
1Prior to 12/5/2017, the Rational Tactical Return Fund was named the Rational Real Strategies Fund, which implemented a different investment strategy and used a different sub-advisor.
|
|
YTD | 1 Year | 3 Years | 5 Years | 10 Years | Inception* |
| Institutional Class |
9.66 |
9.66 |
6.75 |
-2.80 | 4.10 | -2.31 |
| Class A |
9.45 |
9.45 |
6.61 |
-2.85 | 3.92 | -2.48 |
| Class A w/ Sales Charge |
4.28 |
4.28 |
4.89 |
-3.79 | 3.41 | -2.89 |
| S&P 500 TR |
-4.38 |
-4.38 |
9.26 |
8.49 | 13.12 | 6.84 |
| Class C |
8.62 |
8.62 |
n/a |
n/a | n/a | 6.63 |
| S&P 500 TR |
-4.38 |
-4.38 |
9.26 |
8.49 | 13.12 | 9.32 |
*Inception: 05/01/2007 (Class A & Inst.), 05/31/2016 (Class C)
The maximum sales charge for Class “A” Shares is 4.75%. Class “C” Shares held for less than one year are subject to a 1% CDSC. Gross expenses are 5.45%, 6.20%, and 5.20% for the Class A, C, and I shares, respectively. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the funds prospectus please call 800-253-0412 or visit www.RationalMF.com.
Important Risk Disclosures:
Investors should carefully consider the investment objectives, risks, charges and expenses of the Rational Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (800) 253-0412 or at www.RationalMF.com. The prospectus should be read carefully before investing. The Rational Funds are distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Rational Advisors, Inc. is not affiliated with Northern Lights Distributors, LLC.
Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. There are risks associated with the sale and purchase of call and put options. As the buyer of a put option, the Fund assumes the risk of a rise in the market price of the underlying security above the exercise price of the
option which will cause a loss of the premium paid for the option. As a seller (writer) of a put option, the Fund will lose money if the value of the security falls below the strike price. The Fund may experience losses that exceed those experienced by funds that do not use futures contracts, options and hedging strategies.
4000-NLD-1/3/2019
