fbpx

Rational Tactical Return Fund

Tickers: HRSAX | HRSFX | HRSTX

Overview

Fund Objective

The Fund’s investment objective is to seek total return consisting of long-term capital appreciation and income.

Reasons to Invest

The Fund invests primarily in long and short call and put options on futures contracts on the S&P 500 Index and in cash, and cash equivalents. The Fund’s investment objective is to seek total return consisting of long-term capital appreciation and income. The Fund seeks to achieve its investment objective in three ways: (1) Premium Collection – the Fund collects premiums on options it sells; (2) Volatility Trading – the Fund may enter into positions designed to hedge or profit from either an increase or a decrease in Index volatility; and (3) Trend Following – the Fund may increase or decrease the balance of puts and calls based on trending market direction. The Fund is designed to produce returns that are not correlated with equity market returns. The Fund employs strict risk management procedures, supported by both technical and fundamental analysis, that is intended to provide consistency of returns and to mitigate the extent of losses.

Portfolio Manager Insights

Research

With Rising Volatility Consider Adding Alternatives

Fund Management

logo

Warrington Asset Management, an alternative asset manager founded by Scott C. Kimple in 1997, is the sub-advisor for HRSTX.

The sub-advisor, Warrington Asset Management, has a track record of only two down years in 22 among their strategies – winning the Pinnacle Award in 2017 & 2019 for the best five-year option strategy.

This alternative investment strategy focuses on trading options on S&P 500 Index Futures, and has a 20+ year track record delivering consistent, noncorrelated returns with a strong focus on risk management. Prior to January of 2015, Warrington was an independent but affiliated group within Morgan Stanley (and predecessor firms) and only available to their customers. Warrington is registered with the CFTC as a CPO and CTA, and as an investment advisor with the SEC. Warrington is also a member of the NFA.

Senior Portfolio Manager
scott1

Scott C. Kimple
Founder, principal & Portfolio Manager for Warrington Asset Management

Assistant Portfolio Manager
mark

Mark W. Adams
Assistant Portfolio Manager and Chief Quantitative Officer for Warrington GP

Fund Overview

Data as of: 2020-07-10T00:00:00

Ticker HRSAX HRSFX HRSTX HRSAX
Share Class Class A Class C Class I Class A w/ Sales Load
CUSIP 628255606 628255770 628255705 628255606
Inception Date 2007-05-01T00:00:00 2016-05-31T00:00:00 2007-05-01T00:00:00 2007-05-01T00:00:00
As of Date 2020-07-10T00:00:00 2020-07-10T00:00:00 2020-07-10T00:00:00 2020-07-10T00:00:00
Daily NAV 5.8 5.7 5.76 5.8
NAV Change 0.01 0.01 0.01 0.01
% NAV Change 0.17% 0.18% 0.17% 0.17%

Current Fund Performance

Data as of: 2020-07-10T00:00:00

Prior 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.

Share Class 1 Month 3 Months 6 Months YTD 1 Year 3 Years Annualized 5 Years Annualized 10 Years Annualized Since Inception Annualized
Class A -0.34% 1.22% 1.58% 1.75% 4.62% 10.67% 3.34% 2.38% -1.49%
Class C -0.35% 1.06% 1.06% 1.42% 3.76% 9.85% N/A N/A 6.22%
Class I -0.35% 1.23% 1.59% 1.77% 4.65% 10.90% 3.41% 2.55% -1.32%
Class A w/Sales Load -5.07% -3.65% -3.17% -3.01% -0.42% 8.85% 2.34% 1.89% -1.85%

Quarterly Fund Performance

Data as of Quarter End: 2020-06-30T00:00:00

Share Class 1 Month 3 Months 6 Months YTD 1 Year 3 Years Annualized 5 Years Annualized 10 Years Annualized Since Inception Annualized
Class A -0.34% 0.87% 1.40% 1.40% 4.62% 10.77% 3.05% 3.01% -1.52%
Class C -0.53% 0.71% 1.07% 1.07% 3.76% 9.96% N/A N/A 6.17%
Class I -0.17% 1.23% 1.59% 1.59% 5.02% 11.08% 3.11% 3.19% -1.33%
Class A w/Sales Load -5.09% -3.99% -3.34% -3.34% -0.27% 9.02% 2.06% 2.51% -1.88%

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. 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.

Fund Expenses

Data as of: 2020-07-10T00:00:00

Share Class Class I Class A Class C Class A w/ Sales Load
Prospectus Gross Expense Ratio (May 1, 2020) 2.20% 2.56% 3.16% 2.56%
Prospectus Net Expense Ratio* (May 1, 2020) 2.04% 2.29% 3.04% 2.29%

*The Fund’s investment adviser, Rational Advisors, Inc. has contractually agreed to waive all or a portion of its management fee and/or reimburse certain operating expenses of the Fund to the extent necessary in order to limit the Fund’s total annual fund operating expenses (excluding (i) acquired fund fees and expenses; (ii) brokerage commissions and trading costs; (iii) interest (including borrowing costs and overdraft charges), (iv) taxes, (v) short sale dividends and interest expenses, and (vi) non-routine or extraordinary expenses, such as regulatory inquiry and litigation expenses) to not more than 1.99%, 2.24% and 2.99% of the average daily net assets of the Fund’s Institutional Shares, Class A Shares, and Class C Shares, respectively, through April 30, 2021.

Past performance is not a guarantee of future results.

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.

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Start typing and press Enter to search