INSIGHTS
By
John Tabb,
Chief Operating Officer
Jul 11, 2025
The Modern Capital team shares a detailed mid-year review of market conditions and strategy. From income generation and macro risks to closed-end fund dynamics, the call offers tactical insights for navigating today’s uncertain environment.
Overview
In this quarterly update call, Chief Investment Officer Kris Wild joins Portfolio Managers Peter Montalbano and Michael Lowenberg of the Tactical Income Fund to deliver a detailed mid-year review of market conditions and strategy. From income generation and macro risks to closed-end fund dynamics and tactical portfolio adjustments, the team shares timely insights for navigating today’s complex environment. Tune in for a breakdown of sector positioning, liquidity themes, and how the fund is being managed heading into the second half of 2025.
Highlights included:
Fund Performance & Positioning: A 4% YTD return and continued strength in high-yield and emerging market allocations.
Macro Environment: Perspectives on market reaction to tariffs, volatility trends, and rate movements.
Valuations & Sector Strategy: Insights on current equity valuations, sector rotations, and risk-adjusted opportunities.
Closed-End Fund Dynamics: Discussion of CEF discount behavior, dividend sustainability, and liquidity planning.
Credit & Fixed Income Strategy: Tactical shifts between high-yield, EM, and CLOs based on spread and rate outlook.
Portfolio Construction: Adjustments to cash positioning, exit strategies, and examples of opportunistic trading.
Risk Management Philosophy: A focus on NAV preservation alongside income delivery through disciplined liquidity management.
Disclosure:
© 2025 Morningstar, Inc. All rights reserved. The Morningstar Rating™ is for the Class A only; other classes may have different performance characteristics. 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.
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