Manager Strategy:
  • Return expected: the fund seeks long-term capital appreciation
  • Volatility expected: since inception, our risk-budget approach has historically limited standard deviation to a range of 10% to 15% annualized
  • Beta expected: the fund’s beta has historically been half that of the broad U.S. stock market
Portfolio typically consists of 800 to 1200 long positions with a moderate and dynamic hedge

Investment process is built on proprietary software designed to:

  • Automate market data collection on 3,000 individual U.S. stocks and corporate actions
  • Filter individual stocks by total return price trends
  • Volatility weight position size and optimize exposures
  • Actively control portfolio’s open exposure
  • Dynamically hedge portfolio to reduce market beta and correlation
LONGX
Fund Facts
(all share classes)
Assets as of 1/31/17 $11,523,940
Morningstar Classification Long/Short Equity
Lipper Classification Alternative Long/Short
Class Inception Date Unitary Fee* Fund Number
A 12/09/15 1.99% 2124
I 3/19/15 1.99% 2126
Class Ticker Cusip
A LONAX 66538F728
I LONGX 66538F694
Terms A Shares I Shares
Minimum Investment $2,500 $100,000
Subsequent Investment $250 $2,500
Contribution Daily Daily
*Total Annual Operating Expenses for the Longboard Alternative Growth Fund are 2.24% and 1.99% for Class A and I, respectively.

Investment Process

Entry

If today’s closing price has breached a 3-year high, a buy order is entered the following day.

Exit

If today’s price has breached the sell threshold, a sell order is entered the following day.

The sell threshold is determined using average true range (ATR). ATR measures the stock’s volatility, which determines the stock’s risk budget exposure level.

Hedge

Dynamically hedged at all times through exposure to small-, mid-, large-cap stock indices.

Seeks to reduce market beta.

The size of the hedge grows or shrinks in proportion to the long risk exposure.

Longboard attempts to help investors seeking…

To actively manage risk in an effort to minimize damaging equity drawdowns

To grow their current wealth by improving risk-adjusted returns

To cement reliable equity exposure in their qualified portfolio

Fund Design

Liquidity

Daily liquidity allows for maximum flexibility
’40 Act mutual fund

Fee Structure

Unitary fee* structure of 1.99%
Management fee only - no sub-advisory fees

Tax Reporting

Annual 1099
No K1s

Capital Gains

Advantageous 1256 tax treatment of futures contracts
Annual split of 60% long-term, 40% short-term
*Total Annual Operating Expenses for the Longboard Managed Futures Strategy Fund are 3.12% and 2.87% for Class A and I, respectively.

Straightforward construction built with the retail investor in mind

**Inclusive of maximum sales load of 5.75%.

PERFORMANCE DISCLOSURE: Total annual operating expenses for the Longboard Alternative Growth Fund are 1.99% and 2.24% for Class I and A, respectively. The performance data quoted here represents past performance. 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. Past performance is no guarantee of future results. For performance information current to the most recent month-end, please call toll-free 855-294-7540.

Portfolio holdings are subject to change at any time and should not be considered investment advice.

Longboard Alternative Growth Fund (through 12/31/17)

Annualized Returns vs. Benchmark
Share Class YTD 1Y through 12/31/17 2Y through 12/31/17 Since Inception* to 12/31/17
S&P 500 TR Index 21.83% 21.83% 16.79% 16.23%
Class I (NAV) 19.29% 19.29% 10.84% 7.87%
Class A (NAV) 18.92% 18.92% 10.53% 9.58%
Class A (Max Load)** 12.03% 12.03% 7.32% 6.47%
* Inception date of Longboard Alternative Growth Fund, Class I: 3/19/15. Inception date of Longboard Alternative Growth Fund, Class A: 12/09/15. S&P 500 TR Index since inception returns are since inception of the Longboard Alternative Growth Fund, Class A: 12/09/15.

** Inclusive of maximum sales load of 5.75%. Total annual operating expenses are 2.24% and 1.99% for Class A and I respectively.

You cannot directly invest in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges. Past performance is no guarantee of future results. S&P 500 TR Index annualized returns are since inception of the A-share (12/9/15).

S&P 500 TR Index: A stock market index based on the market capitalization of 500 leading companies publicly traded in the U.S. stock market, as determined by Standard & Poor’s. In this document, the S&P 500 is presented as a total return index, which reflects the effects of dividend reinvestment.

The performance data quoted here represents past performance. 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. Past performance is no guarantee of future results. For performance information current to the most recent month-end, please call toll-free 855.294.7540

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Capture Ratio Correlation Matrix
Index performance was sourced from third party sources deemed to be accurate, but is not guaranteed. All index performance is gross of fees. Investors cannot invest directly in the indices referenced in this table. See Definitions for index definitions.