Capital Income Fund (HWIIX)


The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Investment return and principal value of the fund will fluctuate, and shares may be worth more or less than their original cost when redeemed. Click quarter-end or month-end to obtain the most recent fund performance.

Strategy & Objective

The Fund seeks high current income and long-term growth of income, as well as capital appreciation. To achieve this objective, the Fund invests in undervalued dividend-paying equities and high yield fixed income securities with an emphasis on maximizing current income. Leveraging the firm’s corporate research platform and using a disciplined, value investment process, the Fund invests across the corporate capital structure. Typically, the Fund invests 40-60% in dividend-paying stocks and 40-60% in high yield bonds. The Fund pays income distributions to shareholders monthly.

  • Emphasizes current income
  • Constructs a diversified portfolio of income-generating securities with flexible asset allocation ranges
  • Employs a disciplined and repeatable investment process using rigorous in-house fundamental research

Read more about the capital income strategy

As of 12/31/2019
Ticker HWIIX
Cusip 44134R719
Open to New Investors Yes
Minimum Investment $250,000
Inception Date 12/31/2010
Net Expense Ratio* 0.81%
Gross Expense Ratio* 1.34%
Dividend Schedule Monthly
Capital Gains Schedule Annual
Size of Fund (millions) $22
Size of Class (millions) $11
30-Day SEC Yield with expense waiver 3.72%
30-Day SEC Yield without expense waiver 3.07%

* As of 06/30/2019
As of 01/24/2020

The Advisor has contractually agreed to waive advisory fees and/or reimburse expenses through August 29, 2020 so the net expense ratio does not exceed 0.80%.  Over the past 12 months, the Fund invested in business development companies, which produced acquired fund fees and expenses (“AFFE”) of 0.01%.  The reported net expense ratio is the expense ratio cap plus AFFE, or 0.81%.  Net expense ratios were applicable to investors. 


Mark Hudoff
10 Years with H&W
33 Years of Experience

Noah Mayer, CFA
12 Years with H&W
19 Years of Experience

Patrick Meegan, CPA
21 Years with H&W
29 Years of Experience

Mr. Hudoff, Mr. Mayer and Mr. Meegan coordinate the day-to-day management of the Capital Income Fund portfolio. They also represent the Capital Income Fund to current and prospective shareholders.

To view the full investment team, click here.  You will be leaving the mutual fund site and a separate browser window will open to the advisor site.

You should consider the Hotchkis & Wiley Capital Income Fund's investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund's summary prospectus and prospectus, which can be obtained by calling 800-796-5606. Read carefully before you invest.

Mutual fund investing involves risk. Principal loss is possible. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The Fund may invest in derivative securities, which derive their performance from the performance of an underlying asset, index, interest rate or currency exchange rate. Derivatives can be volatile and involve various types and degrees of risks. Depending on the characteristics of the particular derivative, it could become illiquid. Investment in Asset Backed and Mortgage Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The Fund may invest in foreign as well as emerging markets which involve greater volatility and political, economic and currency risks and differences in accounting methods.

Diversification does not assure a profit nor protect against loss in a declining market.

The Hotchkis & Wiley Funds are distributed by Quasar Distributors, LLC