Strategy
Tactical Income
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Overview
Grounded in a forward-looking 6- to 18-month macroeconomic outlook, this data-driven, multi-asset strategy seeks competitive total returns with reduced risk through flexible asset allocation and strategic selection of income-generating securities.
- Flexibility: Flexible allocations across asset classes can assist in optimizing return potential, mitigating risk, and generating income.
- Stability: Diversification across income-generating assets seeks to dampen volatility and support stable long-term returns.
- Income: Yield is sourced opportunistically from a diversified mix of income-producing securities.
- Versatility: Can serve as a complement to core fixed income; a lower-risk equity allocation; a balanced portfolio enhancement; or as a core income allocation.
Inception Date: January 2, 2002
Benchmarks:
60% BGCI/40% S&P 500 TR
Morningstar Moderately Conservative Target Risk
Vehicles: Separately Managed Account (SMA), Mutual Fund
Portfolio Management Team:
Alexander D. Oxenham, CFA®
Thomas B. Maher
Michael F. O’Brien, CFA®
Equity Portfolio Complement
Seeks volatility reduction after periods of solid equity returns while still seeking out capital appreciation.
Bond Portfolio Complement
Diversify sources of income generation for a portfolio in an environment with low global bond yields.
Balanced Portfolio Enhancement
Utilizing a tactical approach may suppress risk in a marketplace experiencing growth of price insensitive buyers and sellers.
Income Oriented Standalone Solution
Provides a dedicated income-oriented strategy that prioritizes risk minimization, consistent yield, and an attractive risk/reward balance.
| Characteristics | |
|---|---|
| Annual Portfolio Turnover | 72% |
| Wtd. Avg. Mkt Cap ($B) | $1,167.1 |
| Total Portfolio Yield | 4.3% |
| Annualized Standard Deviation (net) From Inception | 6.6% |
| Fixed Income Mod Dur. | 3.45 yrs |
| Fixed Income YTM | 4.63% |
| Fixed Income Average Cr Rating | A |
Source: Bloomberg & INDATA
| Top 10 Holdings % | |
|---|---|
| JPM Nasdaq Equity Premium ETF | 6.0 |
| Vanguard International High Dividend Yield | 3.7 |
| JPM Equity Premium Income | 2.9 |
| Apple Inc | 2.0 |
| Alphabet Inc | 1.8 |
| Alerian MLP ETF | 1.5 |
| Microsoft Corp | 1.4 |
| Cisco System Inc | 1.4 |
| Nvidia Corp | 1.4 |
| Caterpillar Inc | 1.3 |
Source: INDATA
| GICS Sector % of Portfolio | |
|---|---|
| Communication Services | 2.4% |
| Consumer Discretionary | 2.1% |
| Consumer Staples | 1.1% |
| Energy | 2.5% |
| Financial | 3.4% |
| Healthcare | 4.9% |
| Industrials | 4.8% |
| Information Technology | 16.5% |
| Real Estate (REITs) | 2.2% |
| Utilities | 1.0% |
| International | 3.9% |
| Corporate Debt | 23.6% |
| Government Debt | 13.5% |
| Structured Debt | 4.5% |
| MBS | 1.7% |
| Commodities | 1.1% |
| Cash | 2.4% |
| Diversified Income / Fixed | 4.5% |
| Diversified Income / Equity | 4.1% |
Source: INDATA
| Metric | 1 Year | 3 Year | 5 Year | 10 Year | 20 Year | Inception To Date |
|---|---|---|---|---|---|---|
| TI Gross | 9.4% | 9.8% | 5.5% | 6.5% | 7.3% | 7.2% |
| TI Net | 8.9% | 9.2% | 4.9% | 6.0% | 6.7% | 6.7% |
| MSAAMMCR*** | 11.4% | 10.1% | 4.3% | 6.2% | 5.8% | 5.9% |
| Benchmark** | 10.6% | 11.0% | 6.2% | 7.4% | 6.7% | 6.3% |
*Preliminary & Unaudited
**(60% BGCI/40% S&P 500TR)
***Morningstar Moderately Conservative Target Risk
Source: Bloomberg & INDATA. Total return – net and gross of management fees. Periods of greater than one year have been annualized. Past performance is not a guarantee of future results. The strategy's primary benchmark is a blend consisting of 60% Bloomberg Intermediate Government/Credit (BGCI) / 40% S&P 500 Reinvested (S&P 500TR). It is not possible to invest directly in an index.
| Metric | YTD 6/30/26* | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| TI Gross | 3.3% | 9.6% | 11.4% | 8.2% | -10.1% | 16.6% | 0.5% | 16.4% | -1.4% | 9.3% |
| TI Net | 3.1% | 9.1% | 10.9% | 7.6% | -10.6% | 16.0% | 0.0% | 15.8% | -2.0% | 8.8% |
| MSAAMMCR*** | 5.6% | 12.9% | 6.4% | 10.9% | -13.9% | 6.4% | 11.9% | 15.3% | -2.9% | 10.9% |
| Benchmark** | 4.4% | 11.4% | 11.5% | 13.4% | -11.9% | 9.9% | 11.9% | 16.4% | -1.0% | 9.7% |
*Preliminary & Unaudited
**(60% BGCI/40% S&P 500TR)
***Morningstar Moderately Conservative Target Risk
Source: Bloomberg & INDATA. Total return – net and gross of management fees. Periods of greater than one year have been annualized. Past performance is not a guarantee of future results. The strategy's primary benchmark is a blend consisting of 60% Bloomberg Intermediate Government/Credit (BGCI) / 40% S&P 500 Reinvested (S&P 500TR). It is not possible to invest directly in an index.
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Additional Resources
Videos
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TI 4Q / Full Year Recap: Managing Risk When Markets Reward Concentration
In TI’s Q4 2025 review, the team discusses navigating concentrated market leadership and ...
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TI 3Q 25 Recap: Resilient Income in an AI-Driven Market
Review of Hilton Tactical Income Strategy's 3Q25 performance, highlighting disciplined ...
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Tactical Income Q2 25 Recap
From Tariff Turbulence to AI Tailwinds: Navigating 2Q25
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Tactical Income Q1 25 Recap
Weathering Crosscurrents — Tactical Positioning Amid Shifting Fundamentals and Rising ...
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Where Does Hilton's Tactical Income Strategy Fit in a Portfolio?
Maximizing Portfolio Potential with Tactical Income. Hilton’s flagship Tactical Income ...
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Tactical Income Q4 24 Recap
Catch up on Hilton's Tactical Income Strategy Q4 2024 performance, recent portfolio ...
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Tactical Income Q3 24 Recap
From Concentration to Constellation: A Quarter of Widening Opportunities
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