Ascendant Funds

Ascendant Funds

Tactical Yield

Objective

 

The Fund seeks capital preservation with a secondary objective of total return

 

Investment Strategy

 

 

Under normal market conditions, the Fund allocates its assets primarily to mutual funds that invest in different segments of the fixed income market of any maturity including high yield (commonly known as “junk bonds”), U.S. Government and Agency debt securities, foreign government debt securities, investment grade U.S. corporate debt securities, floating rate instruments, municipal bonds, convertible bonds and money market funds.  The Fund may invest in other mutual funds managed by the Fund’s investment adviser. The Fund’s investment adviser delegates execution of the Fund’s investment strategy to the Sub-Adviser, Asset One LLC.  The Fund may also use swaps in order to gain exposure to the returns of certain underlying funds.

 

The Sub-Adviser monitors technical signals, market conditions and a predicted forecast of economic conditions to determine the allocation of Fund assets. The Sub-Adviser considers an underlying fund’s liquidity, line(s) of credit, trading limitations, asset size and adherence to the fund’s investment objective when selecting funds for investment.

 

The Fund may invest in “short” or “inverse” mutual funds to hedge other portfolio exposures. Such short or inverse mutual funds are designed to rise in price when underlying prices are falling but may limit the Fund's participation in overall market gains.

 

In seeking to fulfill the Fund's investment objective, the Sub-Adviser may engage in frequent trading of the Fund's portfolio securities

 

Investment Process

 

The investment process employs a tactical approach with market timing & sector rotation strategies based on a proprietary research process managed by a team with a combined 90 years experience. The strategy places a large emphasis on capital preservation while attempting to deliver a high yield, competitive total return, and lower volatility than equity investments. Exposure to various fixed income securities is gained via mutual funds for liquidity, low trading costs, diversification, research, and professional management.

 

Prospectus Disclosure:
Investors should carefully consider the investment objectives, risks, charges and expenses of the Ascendant Tactical Yield Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at http://www.ascendantfunds.com or by calling 855-527-2363. The prospectus should be read carefully before investing. The Ascendant Tactical Yield Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. 

Risk Disclosure:  
Mutual Funds involve risks including the possible loss of principal. An increase in credit risk or a default will likely cause the value of the Fund’s fixed income securities to decline. Issuers with lower credit quality, such as junk bond issuers, are more susceptible to economic or industry downturns and are more likely to default. The issuer of a debt security may fail to pay interest or principal when due and changes in market interest rates may reduce the value of debt securities or reduce the Fund’s return. Typically, the price of a fixed income security falls when interest rates rise. Convertible bonds are hybrid securities that have characteristics of both bonds and common stocks and are subject to debt security risks and conversion value related equity risk. Changes in the financial condition of one or more municipal issuers may affect the overall municipal securities market and make it difficult to make interest and principal payments. The value of foreign issuer securities and ADR’s may be affected by changes in exchange control regulations, application of foreign tax laws, changes in governmental administration, economic or monetary policy. Swap agreements may involve fees, commissions or other costs that will reduce the Fund’s gains from a swap agreement, cause the Fund to lose money, or create leverage magnifying the gain or loss. The Fund’s high portfolio turnover may increase its transaction costs resulting in increased realization of net short-term capital gains, higher taxable distributions and lower after-tax performance. The Advisor and Sub-Advisor’s judgment about the attractiveness of an investment may prove to be inaccurate and the Fund may underperform other fixed income funds. Investments in other Funds are subject to expenses which will be indirectly paid by the Fund, thereby increasing the costs.  

There is no assurance that the Fund will achieve its objectives, generate positive returns, or avoid losses.

3521-NLD-7/13/2015