Rational Premium Income Fund
Tickers: HRSAX | HRSFX | HRSTX
Fund Objective
The Fund’s investment objective is to seek total return consisting of long-term capital appreciation and income.
Reasons to Invest
The Rational Premium Income Fund seeks to generate a compelling return and yield by taking advantage of options market inefficiencies and investing excess collateral in primarily high quality, short-term income-producing securities.
- Seeking to Exploit Market Inefficiencies: The Fund provides exposure to options strategies (options are a type of derivative product that allow investors to speculate on or hedge against the volatility of an underlying stock) designed to take advantage of certain inefficiencies in the market, while typically providing a positive carry (a strategy that relies on investing borrowed money or posting a “good faith” deposit and earning a profit on the difference between the return and the interest owed or lost) expectation (i.e., a positive net income expectation from putting on the options positions). These strategies tend to be systematic and replicable over various market environments.
- Focus on Risk Reversal Option Strategy: A key focus of the Fund is taking advantage of supply-demand imbalances in the options market by buying relatively cheap out-of-the-money call options (e.g., from call over-writers and structured product strategies) and selling relatively expensive out-of-the-money put options (e.g., from portfolio hedgers, variable annuity hedgers, etc.). The “risk reversal” notion comes from the idea that you are seeking to reduce, or potentially reverse, the typical market bias of overpaying for downside risk mitigation and underpaying for upside participation.
- Emphasis on Risk Mitigation: In an effort to mitigate downside risks to the strategy, the strategy utilizes intraday delta and gamma hedging. (Delta Hedging: is a strategy to manage risk by offsetting the directional risk of an options position, aiming for a delta-neutral state. Gamma Hedging: is a strategy to manage the risk associated with changes in an option’s delta as the underlying asset’s price moves, aiming to maintain a position that is relatively insensitive to large price fluctuations). This positioning provides the strategy the potential to generate positive returns in both equity declines and sustained drawdown scenarios.
The Fund’s returns will vary and there is no guarantee that such risk mitigation techniques and/or strategies will accomplish their intended results.
Fund Management
- Investment Advisor:
- Rational Advisors, Inc.
- Senior Portfolio Manager: David Miller
- Co-Founder and CIO of Catalyst Capital Advisors LLC.
- BS in Economics, University of Pennsylvania, Wharton School.
- MBA in Finance, University of Michigan, Ross School of Business.
- Portfolio Manager: Charles Ashley
- BA from Michigan State University, Eli Broad College of Business.
- MBA from the University of Michigan, Ross School of Business.
Fund Overview
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| HRSAX | HRSFX | HRSTX | HRSAX | |
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Current Fund Performance
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| Share Class | 1 Month | 3 Months | 6 Months | YTD | 1 Year | 3 Years Ann. | 5 Years Ann. | 10 Years Ann. | Since Inception Ann. |
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Performance data is updated daily and pulled from the Ultimus Fund Solutions data feed. Past performance does not guarantee future results. 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 data is updated daily and pulled from the Ultimus Fund Solutions data feed. Past performance does not guarantee future results. 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. Prior to 12/31/2025, the Rational Premium Income Fund was named the Rational Tactical Return Fund, which implemented a different investment strategy and used a different sub-advisor. 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.
Quarterly Fund Performance
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| Share Class | 1 Month | 3 Months | 6 Months | YTD | 1 Year | 3 Years Ann. | 5 Years Ann. | 10 Years Ann. | Since Inception Ann. |
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Performance data reflects quarter-end values and is pulled from the Ultimus Fund Solutions data feed. Past performance does not guarantee future results. 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 data reflects quarter-end values and is pulled from the Ultimus Fund Solutions data feed. Past performance does not guarantee future results. 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. 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
| Share Class | Institutional | Class A | Class C | Class A w/ Sales Load |
| Prospectus Gross Expense Ratio (May 1, 2026) | 2.32% | 2.56% | 3.28% | 2.56% |
| Prospectus Net Expense Ratio* (May 1, 2026) | 2.04% | 2.29% | 3.04% | 2.29% |
*Rational Advisors, Inc. (the “Advisor”) 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, Class A, and Class C shares, respectively, through April 30, 2027.
Glossary of Terms
Gamma Hedging: is a strategy to manage the risk associated with changes in an option’s delta as the underlying asset’s price moves, aiming to maintain a position that is relatively insensitive to large price fluctuations.
