Multi-Disciplinary Income Fund

INCOME INVESTING KMDNX No Load Class

Overview

THE FUND
  • Multi-strategy investment approach that opportunistically invests in income-oriented securities and utilizes an equity option strategy which seeks to generate income and capital gains in excess of traditional fixed income indexes while assuming less interest rate risk or duration risk.
  • Fixed income investments generally comprise limited duration securities, including investment grade and high yield bonds, and emphasize the avoidance of permanent capital losses.
  • A selective equity option strategy supplements fixed income investments through the monetization of equity market volatility. The investment adviser aims to moderate incremental risks by selecting option strike prices that are below their underlying stock prices and by limiting option notional exposures.

Multi-Disciplinary Income Fund Commentary

Read more about the Multi-Disciplinary Income Fund in this commentary.

Multi-Disciplinary Income Fund Fact Sheet

Learn more about the Multi-Disciplinary Income Fund in this fact sheet.

Performance Overview

GROWTH OF $10,000 SINCE INCEPTION

Portfolio Characteristics

As of September 30, 2014

Portfolio Managers


Murray Stahl

Chairman, Chief Investment Officer, Co-Founder

Murray is Chairman of the Board of Horizon Kinetics and was a co-founder of the Firm. He has over thirty years of investing experience and is responsi...

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David Kingsley

Senior Portfolio Manager

David joined the firm in 2006 and is responsible for co-managing various private funds, along with the Kinetics Multi-Disciplinary Fund. David is als...

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Derek Devens, CFA®

Portfolio Manager, Research Analyst

Derek joined the firm in 2010 and has responsibilities in both Research and Portfolio Management for the firm. Derek is a member of the Investment Com...

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Daily Performance

As of November 21, 2014
Benchmark Daily NAV One Day Return (%) Month to Date Quarter to Date Year to Date
KMDNX $11.12 0.27% 0.00% 1.37% 3.46%
Barclays U.S. Aggregate Bond Index $1,902.57 0.15% 0.16% 1.14% 5.29%
Barclays U.S. Corp High Yield Index $1,643.90 0.34% -0.78% 0.40% 3.90%

Total Return (Annualized)

As of September 30, 2014
Benchmark 1YR 3YR 5YR Since Inception
KMDNX 2.74% 9.66% 7.95% 5.27%
Barclays U.S. Aggregate Bond Index 3.96% 2.43% 4.12% 4.49%
Barclays U.S. Corp High Yield Index 7.20% 11.09% 10.57% 9.86%

Historical Total Return

2008 2009 2010 2011 2012 2013
KMDNX -17.76% 22.90% 13.04% 0.24% 15.38% 4.28%
Barclays U.S. Aggregate Bond Index 4.08% 5.93% 6.54% 7.84% 4.21% -2.02%
Barclays U.S. Corp High Yield Index -27.02% 58.21% 15.12% 4.98% 15.81% 12.28%

Class Information

 
Class Ticker CUSIP 12b-1 Fee Net Expense Ratio Gross Expense Ratio
No Load Class KMDNX 494613672 - 1.55% 1.88%
Advisor A KMDAX 494613664 0.25% 1.80% 2.13%
Advisor C KMDCX 494613656 1.00% 2.30% 2.63%
Institutional KMDYX 494613649 - 1.35% 1.83%

Fund Statistics

As of September 30, 2014
KMDNX Barclays U.S. Aggregate Bond Index
Beta -0.50 1.00
Standard Deviation 9.12 2.83
Up Market Capture Ratio 0.99 -
Down Market Capture Ratio -0.83 -
Sharpe Ratio 0.86 1.42

Equity Option Overview

As of September 30, 2014
Option Statistics
Notional % of Portfolio with Put Options 24.0%
Average Life of Options (days) 334
Avg Option % Moneyness 14% OTM
Average Option Delta 0.26

Fixed Income Overview

As of September 30, 2014
Fixed Income Statistics
Average Maturity (years) 4.6
Average Duration (years) 4.0
30 Day SEC Yield 3.17%
30 Day SEC Yield w/o waiver 2.87%
Annual Distribution Yield 5.60%

Option Portfolio Sectors (% Notional)

As of September 30, 2014
Title Percent
Consumer 40.9%
Financials 13.6%
Energy 11.3%
Tech & Telecom 10.0%
Diversified 9.2%
Health Care 7.8%
Materials 5.6%
Industrials 1.5%

Top 10 Fixed Income Holdings (%)

As of September 30, 2014
Holdings Percent
Icahn Enterprises/Finance 4.3%
Chesapeake Energy Corporation 4.0%
Owens-Brockway Glass Container 3.8%
Post Holdings, Inc. 3.7%
The Howard Hughes Corporation 3.7%
Royal Gold, Inc. 3.6%
IAC/InterActiveCorp 3.3%
Lennar Corp. 3.2%
Ashland Inc. 3.1%
Dish DBS Corp. 3.0%

Portfolio Allocation

As of September 30, 2014
Description Percent
Bonds 85.9%
Other Investments 9.7%
Cash and Cash Equivalents 6.0%
Put Options Written -1.6%

Recent Fund Distributions

As of September 30, 2014
Distribution Per Share
September 30, 2014 $0.13
June 30, 2014 $0.13
March 31, 2014 $0.02
December 31, 2013 $0.33

Distributions by the Fund are subject to change and may discontinue at any time without notice. To see the full list of fund distributions, click here.

Disclosure

The Multi-Disciplinary Income Fund is classified as a diversified fund. Investing in a diversified fund does not ensure a profit or protect against loss in a declining market.

You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing.  For a free copy of the fund’s prospectus, which contains this and other information, you may click here or call us at 1-800-930-3828.  You should read the prospectus carefully before you invest.

The Multi-Disciplinary Income Fund No Load Class inception date is 2/11/2008.  Performance data quoted represents past performance and does not guarantee future results.  Investment return and principal value will vary, and shares may be worth more or less at redemption than at original purchase.  The most recent month-end performance data is listed above, or you may obtain it by calling us at 1-800-930-3828.  Current performance may be lower or higher than the performance data quoted.  Performance data does not reflect the deduction of the sales load or fee which, if reflected, would reduce the performance quoted.  You will be charged a redemption fee equal to 2.00% of the net amount of the redemption if you redeem or exchange your shares 30 days or less after you purchase them.

The Fund statistics have been calculated for the past five years.

The Barclays U.S. Aggregate Bond Index is composed of the Barclays U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, and includes securities that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million. The Barclays U.S Corporate High Yield Bond Index is composed of fixed-rate, publicly issued, non-investment grade debt. Both Barclays indices are trademarks of Barclays Bank PLC. An investor cannot invest directly in an index.

Distributions by the Fund are subject to change and may discontinue at any time without notice.

The Growth of $10,000 chart illustrates the performance of a hypothetical $10,000 investment made in No Load Class shares commencement of operations (2/11/08). It assumes reinvestment of capital gains and dividends. This chart is not intended to imply any future performance.

Holdings are expressed as a percentage of total net investments and may vary over time. Equity holdings are subject to change, and may not be indicative of actual market position due to the use of call and put options.

The Top 10 Sectors displayed represent a percentage of the net assets and excludes cash equivalents and other assets in excess of liabilities. For purposes of calculating the top percentage holdings of the fund, the top 10 equity and fixed income holdings are valued at their applicable market value.

Assets represent the total net assets for the specified portfolio, which includes all fund classes.

Gross expense ratio listed for No-Load Class, Advisor Class A, Advisor Class C and Institutional Class are referenced in the April 30, 2014 respective prospectus.

The Fund’s adviser, Kinetics Asset Management LLC, has voluntarily agreed to waive management fees and reimburse fund expenses so that net annual fund operating expenses of the No Load Class do not exceed certain levels through May 1, 2015 and may be discontinued at any time by the Fund’s adviser after May 1, 2015.