IRHIX — Rational Iron Horse Fund

IRHIX Fund Overview

IRHIX — Rational Iron Horse Fund is a US mutual fund managed by Mutual Fund & Variable Insurance Trust, categorised as Total Return Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Mutual Fund & Variable Insurance Trust
• Category: Total Return Allocation
• Assets under management: $2.34M
• Ticker: IRHIX
• SEC CIK: 0000810695
• SEC series ID: S000055104
• Share class ID: C000173376

IRHIX Investment Objective and Strategy

Rational Iron Horse Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Mutual Fund & Variable Insurance Trust.

Investment objective

The Funds investment objective is to seek total return with less volatility than equity markets in general.

Principal investment strategy

The Funds sub-advisor seeks to achieve the Funds investment objective by investing primarily in: dividend-paying common stocks, and by writing call options on common stocks and common stock indices. The sub-advisor selects common stocks of domestic and foreign issuers with market capitalizations of at least $2 billion that are traded on a U.S. stock exchange. The sub-advisor combines (1) fundamental analysis, (2) technical analysis and (3) proprietary risk management techniques to seek total returns with less volatility than equity markets in general. The sub-advisors fundamental process is driven by a return-on-capital framework that provides for quality comparisons of companies across industries, sectors and geography. The sub-advisor uses historical price ranges and returns to determine exit points.

The sub-advisor uses several risk management techniques including tolerable-risk models, value-at-risk models and stop-loss procedures in order to manage portfolio risk. The sub-advisors tolerable-risk models focus on estimating possible losses, using historical losses measured over various time periods on a security-specific basis. The sub-advisors value-at-risk models focus on estimating the size of low-probability losses, by using historical losses measured over various time periods on a security-specific basis and on a portfolio level. The sub-advisors risk management goal is to avoid a security or group of securities with large loss estimates for a given probability of occurrence. Stop-loss procedures trigger an automatic sale when a security price drops to a pre-set level with the risk management goal of avoiding further losses.

As a result of using risk management techniques that manage the volatility level of the Funds return, the sub-advisor expects the Fund to have significantly lower volatility compared to the S&P 500 Index and other indices representative of the equity markets in general. Volatility is a measure of fluctuations in a funds performance up or down. The sub-advisor selects stocks that it believes will produce income from dividends and produce capital appreciation. Additionally, the Fund writes stock index and single stock options to generate income (although classified as a capital transaction for accounting and tax purposes) and to reduce exposure to stock market price declines, to the extent of the call option premium received. The sub-advisor selects single-stock options that are typically covered calls, where the strike price and expiration month are determined by the sub-advisors fundamental process.

The option is covered because the Fund owns the stock at the time it sells the option. The sub-advisor buys stocks and writes call options using the strategies described above. It sells stocks when a price target is reached, fundamentals have deteriorated, or to adjust the Funds asset allocation and risk profile. It covers (buys back) call options to adjust the Funds risk profile. The sub-advisor may engage in frequent trading of the Funds portfolio in pursuing its strategy for the Fund.

IRHIX Costs and Fees

IRHIX costs about $172 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.72%
• Gross expense ratio: 2.62%
• Portfolio turnover: 77%
• Brokerage commissions: 21.44 bps of average net assets (SEC N-CEN)

IRHIX Cashflows

Over the 12 months to 2020-06, Rational Iron Horse Fund had net inflows of $2.18M, from monthly SEC N-PORT filings.

IRHIX Debt Constituents

No individual debt constituents are reported in Rational Iron Horse Fund's latest SEC N-PORT filing.

IRHIX Prospectus and SEC Filings

Official Rational Iron Horse Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-05-12
• Prospectus supplement (497) — filed 2019-05-16
• Prospectus supplement (497) — filed 2018-05-07
• Portfolio holdings (N-PORT) — filed 2020-08-25
• Portfolio holdings (N-PORT) — filed 2020-05-28
• Annual census (N-CEN) — filed 2020-03-16
• Annual census (N-CEN) — filed 2019-03-18

Related Funds

Other Total Return Allocation funds tracked on ABC INVEST:

• Federated Total Return Bond Fund (FTRFX)
• Columbia Balanced Fund (CBLAX)
• MFS Total Return Fund (MSFRX)
• AllianzGI Income & Growth Fund (AZNAX)
• AQR Risk Parity Fund (AQRNX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.