We have designed rule-based technical systems using trend analysis developed over the past 25 years, to determine what combination of multiple asset classes might provide optimum risk adjusted returns.
Our investment objectives are to provide growth and risk-adjusted total return. We seek to achieve this by attempting to avoid catastrophic losses when the markets are falling, while participating in the majority of market gains when the markets are rising.
Mutual fund and variable annuity investing involves risk including loss of principal.
As with all mutual funds and variable annuities there is the risk that you could lose money through your investment in the Fund & Portfolio. Some of the principal risk to which the Fund & Portfolio are exposed includes investment management risk, portfolio turnover risk, equity, stock market volatility, foreign, emerging market, derivatives, fixed income, underlying funds and short sale risk. The Fund & Portfolio’s investment strategies expose it to other risks as well. There is no assurance that the Fund & Portfolio will achieve its investment goals. Please refer to the Fund & Portfolio’s prospectus for more risk factors that you should consider before investing.
Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. In addition to the risks associated with investments in foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues.
The Fund & Portfolio may invest, directly or indirectly, in "junk bonds.” Such securities are speculative investments that carry greater risks than higher quality debt securities. In general, the price of a fixed income security falls when interest rates rise. Investments in foreign securities could subject the Fund & Portfolio to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. As to the portion of the Fund & Portfolio invested in ETFs, closed-end investment companies, equities and fixed income securities, turnover may result in higher brokerage commissions, dealer mark-ups and other transaction costs.
The Fund & Portfolio will incur a loss as a result of a short position if the price of the short position instrument increases in value between the date of the short position sale and the date on which the Fund & Portfolio purchases an offsetting position. The Fund & Portfolio invests in mutual funds, closed-end funds and ETFs which are subject to investment advisory and other expenses, which will be indirectly paid by the Fund & Portfolio. As a result, the cost of investing in the Fund & Portfolio will be higher than the cost of investing directly in other investment companies or direct investment in stocks and bonds. The underlying Funds include high beta index funds (HBIF’s), which can be more volatile than the benchmark index they track and typically do not invest directly in the securities included in the benchmark.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Adaptive Allocation Fund & Portfolio. This and other important information about the Fund & Portfolio is contained in the prospectus, which can be obtained on the web at www.unusualfund.com or by calling 866-263-9260. The prospectus should be read carefully before investing. The Adaptive Allocation Fund & Portfolio are distributed by Northern Lights Distributors, LLC member FINRA. www.finra.org
The Portfolio is an investment vehicle for variable annuity contracts and may be subject to fees or expenses that are typically charged by these contracts. Please review your insurance contract prospectus for further description of these fees and expenses.
The Adaptive Allocation Fund & Portfolio are managed by Critical Math Advisors, LLC. Critical Math Advisors, LLC is not affiliated with Northern Lights Distributors, LLC.