FACTSHEET › Q2.2014
Altegris Multi-Strategy Alternative Fund MULAX | MULIX | MULNX
Multiple Alternatives. One Fund. A flexible, all-encompassing alternatives mutual fund that allocates to
multiple hedge fund investment strategies in a single fund. The Fund provides access to experienced alternative
managers with the goal of delivering the best expression of a diversified alternatives portfolio, all with low to
moderate correlation between alternative strategies and traditional asset classes.
Reasons to Invest | There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses
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Turnkey solution for a diversified alternative investment allocation.
Potential to generate returns across various market environments.
Experienced portfolio management team, with a research-driven strategic and tactical asset allocation process.
Multi-strategy and multi-manager approach derived from methodical manager selection, coupled with rigorous ongoing due diligence.
Top 10 Managers by Exposure
Target Allocation by Strategy | As of 06/30/2014
Target
Exposure
Manager*
Strategy
Visium Asset Management
Alternative Equity
19.7%
Premium Point Investments
Alternative Fixed Income
15.0%
RockView Management
Alternative Fixed Income
15.0%
Chilton Investment Company
Alternative Equity
13.1%
Harvest Capital Strategies | FINANCIALS
Alternative Equity
10.5%
Macro
15%
Alternative
Equity
55%
Alternative
Fixed
Income
30%
Fund Facts
Harvest Capital Strategies | AGRICULTURE/CONSUMER
Alternative Equity
9.2%
Winton Capital Management
Macro
6.0%
The Fund seeks long-term capital appreciation
and absolute returns.
Total Net Assets
$55 million (as of 06/30/14)
Symbol + CUSIP
Class A: MULAX-66537Y215
Class I: MULIX-66537Y173
Class N: MULNX-66537Y165
AACA†
Alternative Equity
2.5%
Denali Asset Management
Macro
1.3%
Minimum Initial/
Subsequent
Investment
Class A: $2,500 / $250
Class I: $1,000,000 / $250
Class N: $2,500 / $250
Quantitative Investment Management [QIM]
Macro
1.2%
Redemption Fee
1% fee on shares redeemed
within 30 days
Income Distribution
Annual
† AACA is a trade name for American Assets Investment Management, LLC (doing business as “AACA”).
Inception Date
February 28, 2013
Alternative Equity is comprised of long/short equity and long/short real estate strategies; Alternative Fixed Income is comprised
of long/short fixed income strategies; Macro is comprised of global macro and managed futures strategies.
Expense Ratios
Gross
Net
Cap
Class A
Class I
Class N
16.73%
19.83%
21.22%
3.34%
3.09%
3.34%
0.85%
0.60%
0.85%
* Managers are accessed via the fund of funds portfolio that invests in Other Investment Companies advised by Altegris.
The Target Exposure and Target Allocation are subject to change at any time, and may not be representative of the Fund’s past
or future access and exposure to alternative investment strategies or programs. It should not be considered a recommendation
or investment advice.
TRUSTED ALTERNATIVES. INTELLIGENT INVESTING.®
[1]
888.524.9441 | www.altegris.com/mutualfunds
FACT SHEET › ALTEGRIS MULTI-STRATEGY ALTERNATIVE FUND Q2.2014
Fund Returns | As of 06/30/2014
Annualized Return
Q2 2014
1.21%
Year
to Date
1.32%
1-Year
3.40%
5-Year
NA
Since
Inception†
1.61%
MULAX: Class A (max load) ‡
-4.58%
-4.48%
-2.52%
NA
-2.80%
MULIX: Class I (NAV)
1.31%
1.52%
3.71%
NA
1.92%
MULNX: Class N (NAV)
1.31%
1.42%
3.42%
NA
1.70%
HFRX Global Hedge Fund Index
0.64%
1.76%
5.28%
NA
4.52%
S&P 500 TR Index
5.23%
7.14%
24.61%
NA
23.86%
MULAX: Class A (NAV)
† The inception date is 2/28/13. Past performance is not indicative of future results. Returns for periods longer than one year are annualized.
‡ The maximum sales charge (load) for Class A is 5.75%. Class A share investors may be eligible for a reduction in sales charges.
The Fund’s adviser has contractually agreed to reduce its fees and to reimburse expenses, at least until April 30, 2015, to ensure that total annual Fund operating expenses after fee waiver and/or reimbursement
will not exceed 0.85%, 0.60%, and 0.85% of average daily net assets attributable to Class A, Class I, and Class N shares, respectively, subject to possible recoupment in future years.
The performance data quoted here represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance data quoted above. Investment
return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Results shown reflect the waiver, without which the results would have been lower.
A Fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. For performance information current to the most recent month end, please call
(888) 524-9441.
Portfolio Management
Fund Adviser › Altegris Advisors LLC
Allen Cheng | Matthew Osborne | Jon Sundt
Please carefully consider the investment objectives, risks, charges and expenses of the Altegris Multi-Strategy Alternative
Fund. This and other important information about a Fund is contained in the Fund’s Prospectus and the Summary Prospectus,
which can be obtained by calling (888) 524-9441. Read the prospectus carefully before investing. Funds are distributed by
Northern Lights Distributors, LLC, member FINRA. Altegris Advisors and Northern Lights Distributors, LLC are not affiliated.
MUTUAL FUNDS INVOLVE RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL.
INDEX DESCRIPTIONS. The referenced indices are shown
for general market comparisons and are not meant to represent
any particular Fund. An investor cannot invest directly in an
index. Moreover, indices do not reflect commissions or fees that
may be charged to an investment product based on the index,
which may materially affect the performance data presented.
HFRX Global Hedge Fund Index. Designed to be
representative of the overall composition of the hedge fund
universe, and is comprised of all eligible hedge fund strategies.
The strategies are asset weighted based on the distribution
of assets in the hedge fund industry. The index includes
funds that have at least $50 million under management and
a 24-month track record (typical). S&P 500 TR Index. The
S&P 500 Total Return Index is the total return ver¬sion of S&P
500 index. The S&P 500 index is unmanaged and is generally
representative of certain portions of the US equity markets.
For the S&P 500 Total Return Index, dividends are reinvested
on a daily basis and the base date for the index is January 4,
1988. All regular cash dividends are assumed reinvested in the
S&P 500 index on the ex-date. Special cash dividends trigger
a price adjustment in the price return index.
GLOSSARY. Short. Selling an asset/security that may have
been borrowed from a third party with the intention of buying
back at a later date. Short positions profit from a decline in
price. If a short position increases in price, the potential loss
of an uncovered short is unlimited. Long. Buying an asset/
security that gives partial ownership to the buyer of the
position. Long positions profit from an increase in price.
ALTEGRIS ADVISORS. Altegris Advisors LLC is a CFTCregistered commodity pool operator, commodity trading
advisor, NFA member, and SEC-registered investment adviser
that advises alternative strategy mutual funds that may pursue investment returns through a combination of managed futures, global macro, long/short equity, long/short fixed income
and/or other investment strategies.
Alternative Strategies pursued by the Fund may be subject to a number of risks either directly or indirectly through its investments in other Investment Companies, the Subsidiary, securities issued by Underlying Pools, and other derivative and investment instruments.
Investing in commodity futures markets subjects the Fund to volatility as commodity futures prices are influenced by unfavorable weather,
geologic and environmental factors, regulatory changes and restrictions.
Foreign investments involves risks not typically associated with U.S. investments, including fluctuations in foreign currency values, adverse social
and economic developments, less liquidity, greater volatility, less developed or inefficient trading markets, political instability and differing auditing and legal standards. These risks are magnified in emerging markets.
The use of credit default swaps (“CDS”) to transfer credit risk involves potentially heightened counterparty, concentration and exposure risks
that may result in losses to the Fund. The use of swaps, options, structured notes or other derivative instruments, directly or indirectly, subjects
the Fund to leverage risk, tracking risk and counterparty default risk. Option positions held may expire worthless exposing the Fund to potentially
significant losses. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options will cause the Fund to
incur additional expenses. In addition, leverage can increase share price volatility and magnify the Fund’s gains or losses.
An investment in common and preferred stocks is susceptible to market risk or the risk of loss due to industry or company news or general economic decline. Preferred stocks and other fixed income securities such as mortgage-or asset-backed bonds, corporate and government bonds,
and convertible securities are also subject to interest rate risk. As interest rates rise, the value of fixed income securities will typically fall. In
addition, mortgage and real-estate related securities may be more sensitive to overall economic conditions and are susceptible to prepayment
risk and higher default rates.
Other fixed income securities and derivatives risks include credit risk, which is the possibility that an issuer will fail to make principal or dividend
payments when due. The credit risk, liquidity risk, and potential for default is heightened for lower-quality debt securities, also known as “highyield” or “junk” bonds. The value of equity and debt securities of smaller issuers or small and mid-sized companies can be more volatile than
those of larger companies due to limited product lines, markets or financial resources.
An ETF may represent a portfolio of securities, or may use derivatives and therefore, reflects the risks and additional expenses of owning the underlying securities. ETNs are subject to the risk that the value of the index may decline sharply or unpredictably, as well as default and liquidity risks.
As a non-diversified fund, the Fund may invest more than 5% of its total assets in the securities of one or more issuers and therefore, performance
may be more sensitive to any single economic, business, political or regulatory occurrence than the value of shares of a diversified investment company.
The Other Investment Companies and Underlying Pools may engage in short-selling and short position derivative activities which is considered
speculative and involves significant financial risk. Short positions profit from a decline in price so the Fund will incur a loss on a short position if
the price increases. The potential for loss in a short position transaction is unlimited.
The Fund also involves taxation risk and regulatory risk by investing in commodities through the Subsidiary, which is a controlled foreign corporation. As such, any income received from its commodities-related investments will be passed through to the Fund as ordinary income, which may
be taxed at less favorable rates than capital gains. The Subsidiary will not be registered under the 1940 Act. Changes in applicable foreign and
domestic laws could result in the inability of the Fund and/or Subsidiary to operate.
Underlying Funds/Pools in which the Subsidiary invests will pay management fees, brokerage commissions, operating expenses and performance based fees to each manager it retains. As a result, the cost of investing in the Fund may be higher than other mutual funds that invest
directly in stocks and bonds. There is no guarantee that any of the trading strategies used by the managers retained by an Underlying Fund/Pool
will be profitable or avoid losses.
The Fund is new and has a limited history of operations. There can be no guarantee that adequate capital will be raised in a timely fashion in
order for the Fund to become fully invested or achieve the objectives.
666150_073114 | 1235-NLD-7/31/2014
TRUSTED ALTERNATIVES. INTELLIGENT INVESTING.®
[2]
888.524.9441 | www.altegris.com/mutualfunds