INSIGHTS
By
John Tabb,
Chief Operating Officer
Jan 15, 2026
Listen to our Q1 2026 manager call as we address advisor-submitted questions on 2026 market themes, interest rates, income positioning, and risk management.
Key themes from the conversation
Constructive market outlook, with expected volatility
The managers noted the market could continue to trend higher in 2026, but elevated valuations may lead to a “choppier” path and greater opportunity for active security selection.Two major catalysts to watch
The team highlighted the potential market impact of a new Fed Chair mid-year and the midterm election cycle—both of which could influence policy, rates, and investor sentiment.Income-first positioning remains the priority
With bond yields still attractive, the strategy remains focused on generating consistent income and maintaining a disciplined approach to balancing income with long-term NAV stability.Risk management and flexibility
The portfolio is positioned with an emphasis on shorter duration early in the year, while maintaining the flexibility to adjust exposures as conditions evolve.Opportunistic approach in closed-end funds
Managers expect to continue taking advantage of pricing and discount opportunities, using cash strategically during periods of uncertainty.
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