INSIGHTS
By
John Tabb,
Chief Operating Officer
Proud to mark 5 years for the Modern Capital Tactical Income Fund—now earning a 5-star Morningstar rating for the 5-year period. A milestone driven by active management and a disciplined process.
Five Years of Proven Performance
Reaching a five-year track record is a meaningful milestone for any investment strategy.
For the Modern Capital Tactical Income Fund, that milestone comes with added distinction: a 5-star Morningstar rating for the five-year period, reflecting strong risk-adjusted performance relative to peers in the Tactical Allocation category. The Tactical Income Fund ranked 3rd out of 202 funds in the category over the five year period ending April 30th, 2026.
The five-year rating is often considered one of the most meaningful measures of performance, capturing how a strategy performs across a full market cycle.
More importantly, it reflects something deeper than returns alone: the consistency of an active process designed to adapt every day.
Why the Five-Year Mark Matters
Income investing has changed.
What used to be a relatively straightforward allocation to bonds and dividend stocks has become far more complex. Advisors now have to navigate shifting rate regimes, liquidity events, and a growing universe of income-producing securities.
As highlighted in our research, today's markets demand more flexibility, faster decision-making, and a broader toolkit than ever before.
That’s exactly the environment the Modern Capital Tactical Income Fund was built for.
A Strategy Designed for Today’s Markets
At its core, the strategy is an actively managed, multi-asset income approach with a primary focus on closed-end funds (CEFs), a segment of the market rich with inefficiencies and opportunity.
The strategy is designed to:
Generate consistent income through monthly distributions
Capture tactical opportunities across asset classes
Seek alpha through relative value and discount capture
Maintain a focus on risk management and downside protection
Unlike passive approaches, the portfolio is continuously monitored and repositioned, drawing from a universe of more than 500 income vehicles across sectors and geographies.
Active Management Isn’t Occasional, It’s Constant
One of the defining characteristics of the Modern Capital Tactical Income Fund is its commitment to active, hands-on management every single day.
The team:
Evaluates relative value across markets
Identifies dislocations between price and NAV
Rotates exposures based on catalysts and changing conditions
Continuously upgrades the portfolio
This disciplined process, from sourcing ideas to execution and ongoing monitoring, is designed to ensure the portfolio is never static.
In a market where pricing inefficiencies can appear and disappear quickly, that level of engagement matters.
Why Closed-End Funds Play a Central Role
Closed-end funds are a cornerstone of the strategy for a reason.
They offer features that are difficult to replicate elsewhere:
Attractive income potential, often higher than traditional ETFs or mutual funds
Monthly distributions aligned with client cash flow needs
Discount opportunities, where assets can be purchased below their intrinsic value
Structural inefficiencies that active managers can exploit
But these advantages come with complexity, discount volatility, leverage, and manager risk all require careful oversight.
That’s where active management becomes critical.
The Modern Capital Tactical Income Fund was built to navigate this complexity, so advisors don’t have to do it alone.
A Milestone Driven by Process
Performance recognition like a 5-star rating is meaningful, but it’s not the objective.
It’s the byproduct of a repeatable process.
As CEO Brad Atkins puts it:
“The five-year milestone is important, but what matters more is how we got here. Our focus has always been on building a strategy that adapts, one that’s actively seeking opportunities, managing risk, and delivering consistent income through changing markets.”
And as Chief Investment Officer Richard de Wet adds:
“Closed-end funds offer one of the most compelling opportunity sets in income investing, but only if you have the expertise and discipline to navigate them. Our approach is about systematically identifying inefficiencies and acting on them in real time.”
Positioning in a Portfolio
For advisors, the Modern Capital Tactical Income Fund is designed to serve multiple roles:
A core income solution for clients seeking yield and consistency
A satellite allocation to enhance traditional portfolios
A way to access institutional-quality active management in a complex asset class
Incorporating the strategy into a traditional income portfolio has historically improved return potential while reducing drawdowns and volatility, based on internal analysis.
Just as important, the strategy is designed to take complexity off an advisor’s plate. Actively managing a portfolio of closed-end funds and income securities requires constant monitoring, trading, and specialized expertise.
By outsourcing that function, advisors can stay focused on what matters most—serving clients, building relationships, and growing their practice—while still delivering a sophisticated, actively managed income solution.
Looking Ahead
Five years in, the investment landscape continues to evolve, and income investing isn’t getting simpler. If anything, it’s becoming more dynamic.
That reinforces the core philosophy behind the strategy:
Income strategies shouldn’t stand still.
They should adapt, evolve, and actively pursue opportunity, every single day.
Disclosure:
© 2026 Morningstar, Inc. All rights reserved. The rating is not a recommendation to buy, sell, or hold the fund. Morningstar does not guarantee its accuracy or completeness and is not responsible for damages or losses arising from any use of this information. The Morningstar Rating™ for funds, commonly called the "star rating," is a measure of a fund’s risk-adjusted return, relative to similar funds. It is calculated using a Morningstar Risk-Adjusted Return measure that penalizes downward volatility and rewards consistent performance. Ratings are assigned based on a fund’s risk-adjusted performance relative to its Morningstar Category peers over the trailing three-, five-, and ten-year periods (if applicable), and are weighted accordingly.
Investors should consider the Fund’s investment objectives, risks, charges, and expenses before investing. The prospectus, containing this and other information about the Fund, should be read carefully before investing. The prospectus is available at the download icon below or by calling 800-711-9164. Current and future holdings are subject to change and risk.
Investments in the Fund are subject to investment risks, including the possible loss of some or all of the principal amount invested. There is no assurance that the Fund will be successful in meeting its investment objective. The Fund is subject to the following additional risks:
▪ Active Trading Risk: Active trading may result in added expenses, a lower return, and increased tax liability. Since the Fund’s advisor engages in high turnover trading strategies, the Fund will have high portfolio turnover rates.
▪ Closed-End Fund Risk: Closed-end funds (CEFs) are subject to investment advisory and other expenses, which will be indirectly paid by the Fund resulting in duplicative fees and expenses. CEFs are also subject to management risk because the advisor to the underlying CEF may be unsuccessful in meeting the fund’s investment objective.
▪ Equity Securities Risk: Equity securities are subject to changes in value, and their values may be more volatile than those of other asset classes. These changes in value may result from factors affecting individual issuers, industries, or the stock market.
More information about these risks can be found in the Fund's prospectus.
Vigilant Distributors, LLC., Member FINRA/SIPC. There is no affiliation between Modern Capital Management Co., including its principals, and Vigilant Distributors, LLC.
- No Bank Guarantee
- May Lose Value
- NOT FDIC-INSURED