Hilton Tactical Income Fund

  • FUND SYMBOL

    HCYAX

  • CUSIP

    254939176

  • EXPENSE RATIO (GROSS/NET %)

    1.59 / 1.52*

  • INCEPTION DATE

    Sep 16, 2013

  • FUND SYMBOL

    HCYCX

  • CUSIP

    254939150

  • EXPENSE RATIO (GROSS/NET %)

    2.34 / 2.27*

  • INCEPTION DATE

    Jun 01, 2015

  • FUND SYMBOL

    HCYIX

  • CUSIP

    254939168

  • EXPENSE RATIO (GROSS/NET %)

    1.34 / 1.27*

  • INCEPTION DATE

    Sep 16, 2013

Overview

Direxion has approved the redesignation of the Fund’s Class A Shares as Investor Class Shares and the conversion of the Fund’s Class C Shares to Investor Class Shares effective after market close 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 HCYCX HCYIX
Overall Morningstar Rating1      

Out of 258 Tactical Allocation funds as of 12/31/2017. 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 below 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 12/31/2017, the firm had approximately $1 billion in client assets.

  • William J. Garvey, Chief Investment Office
    Mr. Garvey, with 30 years of industry experience is the founder and Chief Investment Officer of Hilton Capital. Mr. Garvey has developed the investment process that serves as the core of the firm’s investment philosophy.
  • C. Craig O’Neill, CEO & President
    Mr. O’Neill, with 23 years in the industry is the CEO and President of Hilton Capital. Mr. O’Neill is a member of the investment committee as well as a co-portfolio manager.

  • Alexander D. Oxenham, CFA, Senior Portfolio Manager
    Mr. Oxenham, with 15 years of industry experience, participates in the active management of the Hilton Capital investment strategy and is responsible for investment decisions and asset allocation, with particular focus on overall portfolio risk management. 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 (%)

JPMorgan Chase & Co. 2.69
Broadridge Financial Solutions, Inc. 2.69
Bank of NT Butterfield & Son Ltd/The 2.67
Harris Corp. 2.31
Republic Services, Inc. 2.21
AO Smith Corp. 2.06
Crown Castle International Corp. 1.97
MainSource Financial Group, Inc. 1.94
NorthStar Realty Europe Corp. 1.89
DR Horton, Inc. 1.88

Top Ten Fixed Income Holdings (%)

Invesco Dynamic Credit Opportunities Fund 2.30
Brookfield DTLA Fund Office Trust Investor, Inc. 2.12
HCI Group, Inc. 1.92
PIMCO Dynamic Credit and Mortgage Income Fund 1.88
Nuveen Credit Strategies Income Fund 1.82
Ares Management LP 1.77
TICC Capital Corp. 1.76
Nuveen Mortgage Opportunity Term Fund 1.74
Bluerock Residential Growth, Inc. Class A - REIT 1.46
Iberiabank Corp. 1.36

Fund Statistics

Beta (to the S&P 500) 0.37
Duration of Fixed Income Assets 1.14
Sharpe Ratio 1.19
Standard Deviation 5.55%
Total Net Assets (Millions) $116
Total Number of Holdings 65
Wtd Average Market Cap (Millions) $302.36

Total Fund Exposure

Fixed Income Assets (%)
Cash 3.92
Convertible 3.02
Corporate Bonds 18.90
Fixed Income - Closed End 4.48
Fixed Income - Open End 1.95
International Government Bonds 1.06
MBS 1.86
Preferred 15.46
Equity Assets (%)
Common 35.72
MLP 3.20
REIT 10.41

All holdings and sector weightings are as of 12/31/2017

Distribution Rate

HCYAX HCYCX HCYIX
30 Day SEC Yield - Subsidized 2.30 1.68 2.68
Annualized Distribution Yield 2.72 2.04 2.95
Monthly Per Share Distribution Rate 0.04 0.03 0.04

Source: Bloomberg. Index data as of 3/31/2017. 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 May 25, 2018. Line chart shows pricing trend over the last 30 days.

fund symbol

HCYAX

  • Net asset value (NAV)

    • 16.72
    • 0.01
    • 0.06

fund symbol

HCYCX

  • Net asset value (NAV)

    • 16.71
    • 0.01
    • 0.06

fund symbol

HCYIX

  • Net asset value (NAV)

    • 16.75
    • 0.01
    • 0.06

* 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 1.30% for HCYAX, 1.05% for HCYIX, and 2.05% for HCYCX. 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 cap all or a portion of its management fee and/or reimburse the Fund for Other Expenses, as long as Rafferty is the Adviser for the Fund, to the extent that the Fund’s Total Annual Fund Operating Expenses exceed 1.30% for Class A Shares, 1.05% for Institutional Class Shares and 2.05% for Class C Shares of the Fund’s 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 net expense ratio would be higher.

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 direxioninvestments.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 - A Shares
Record Date Ex Date Pay Date Income Dividend Short-Term Capital Gain Long-Term Capital Gain Return of Capital
04/30/2018 05/01/2018 05/01/2018 0.03870 0.00000
03/29/2018 04/02/2018 04/02/2018 0.03870 0.00000
02/28/2018 03/01/2018 03/01/2018 0.03870 0.00000
01/31/2018 02/01/2018 02/01/2018 0.03870 0.00000
12/29/2017 01/02/2018 01/02/2018 0.03870 0.00000
11/30/2017 12/01/2017 12/01/2017 0.03870 0.00000
10/31/2017 11/01/2017 11/01/2017 0.03870 0.00000
09/29/2017 10/02/2017 10/02/2017 0.03870 0.00000
08/31/2017 09/01/2017 09/01/2017 0.03595 0.00275
07/31/2017 08/01/2017 08/01/2017 0.03595 0.00275
06/30/2017 07/03/2017 07/03/2017 0.03595 0.00275
05/31/2017 06/01/2017 06/01/2017 0.03595 0.00275
04/28/2017 05/01/2017 05/01/2017 0.03595 0.00275
03/31/2017 04/03/2017 04/03/2017 0.03595 0.00275
02/28/2017 03/01/2017 03/01/2017 0.03595 0.00275
01/31/2017 02/01/2017 02/01/2017 0.03595 0.00275
12/30/2016 01/03/2017 01/03/2017 0.03870 0.00000
11/30/2016 12/01/2016 12/01/2016 0.03870 0.00000
10/31/2016 11/01/2016 11/01/2016 0.03870 0.00000
09/30/2016 10/03/2016 10/03/2016 0.04680 0.00000
08/31/2016 09/01/2016 09/01/2016 0.04680 0.00000
07/29/2016 08/01/2016 08/01/2016 0.02432 0.02248
06/30/2016 07/01/2016 07/01/2016 0.02432 0.02248
05/31/2016 06/01/2016 06/01/2016 0.02432 0.02248
  • HCYCX
  • Hilton Tactical Income Fund - C Shares
Record Date Ex Date Pay Date Income Dividend Short-Term Capital Gain Long-Term Capital Gain Return of Capital
04/30/2018 05/01/2018 05/01/2018 0.02900 0.00000
03/29/2018 04/02/2018 04/02/2018 0.02900 0.00000
02/28/2018 03/01/2018 03/01/2018 0.02900 0.00000
01/31/2018 02/01/2018 02/01/2018 0.02900 0.00000
12/29/2017 01/02/2018 01/02/2018 0.02900 0.00000
11/30/2017 12/01/2017 12/01/2017 0.02900 0.00000
10/31/2017 11/01/2017 11/01/2017 0.02900 0.00000
09/29/2017 10/02/2017 10/02/2017 0.02900 0.00000
08/31/2017 09/01/2017 09/01/2017 0.02694 0.00206
07/31/2017 08/01/2017 08/01/2017 0.02694 0.00206
06/30/2017 07/03/2017 07/03/2017 0.02694 0.00206
05/31/2017 06/01/2017 06/01/2017 0.02694 0.00206
04/28/2017 05/01/2017 05/01/2017 0.02694 0.00206
03/31/2017 04/03/2017 04/03/2017 0.02694 0.00206
02/28/2017 03/01/2017 03/01/2017 0.02694 0.00206
01/31/2017 02/01/2017 02/01/2017 0.02694 0.00206
12/30/2016 01/03/2017 01/03/2017 0.02900 0.00000
11/30/2016 12/01/2016 12/01/2016 0.02900 0.00000
10/31/2016 11/01/2016 11/01/2016 0.02900 0.00000
09/30/2016 10/03/2016 10/03/2016 0.03750 0.00000
08/31/2016 09/01/2016 09/01/2016 0.03750 0.00000
07/29/2016 08/01/2016 08/01/2016 0.01948 0.01802
06/30/2016 07/01/2016 07/01/2016 0.01948 0.01802
05/31/2016 06/01/2016 06/01/2016 0.01948 0.01802
  • HCYIX
  • Hilton Tactical Income Fund - Institutional
Record Date Ex Date Pay Date Income Dividend Short-Term Capital Gain Long-Term Capital Gain Return of Capital
04/30/2018 05/01/2018 05/01/2018 0.04200 0.00000
03/29/2018 04/02/2018 04/02/2018 0.04200 0.00000
02/28/2018 03/01/2018 03/01/2018 0.04200 0.00000
01/31/2018 02/01/2018 02/01/2018 0.04200 0.00000
12/29/2017 01/02/2018 01/02/2018 0.04200 0.00000
11/30/2017 12/01/2017 12/01/2017 0.04200 0.00000
10/31/2017 11/01/2017 11/01/2017 0.04200 0.00000
09/29/2017 10/02/2017 10/02/2017 0.04200 0.00000
08/31/2017 09/01/2017 09/01/2017 0.03902 0.00298
07/31/2017 08/01/2017 08/01/2017 0.03902 0.00298
06/30/2017 07/03/2017 07/03/2017 0.03902 0.00298
05/31/2017 06/01/2017 06/01/2017 0.03902 0.00298
04/28/2017 05/01/2017 05/01/2017 0.03902 0.00298
03/31/2017 04/03/2017 04/03/2017 0.03902 0.00298
02/28/2017 03/01/2017 03/01/2017 0.03902 0.00298
01/31/2017 02/01/2017 02/01/2017 0.03902 0.00298
12/30/2016 01/03/2017 01/03/2017 0.04200 0.00000
11/30/2016 12/01/2016 12/01/2016 0.04200 0.00000
10/31/2016 11/01/2016 11/01/2016 0.04200 0.00000
09/30/2016 10/03/2016 10/03/2016 0.05000 0.00000
08/31/2016 09/01/2016 09/01/2016 0.05000 0.00000
07/29/2016 08/01/2016 08/01/2016 0.02598 0.02402
06/30/2016 07/01/2016 07/01/2016 0.02598 0.02402
05/31/2016 06/01/2016 06/01/2016 0.02598 0.02402