Altegris Multi-Strategy Alternative Fund
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FACTSHEET › Q3.2013 Altegris Multi-Strategy Alternative Fund Multiple Alternatives. One Fund. A flexible, all-encompassing alternatives mutual fund that allocates to four core hedge fund investment strategies in a single fund. The Fund provides access to over 20 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 › 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. Multi-Strategy | Manager* | Sub-strategy Target Target Allocation by Strategy | As of 09/30/2013 Exposure** Visium Asset Management | DIVERSIFIED 12.8% Managed Long/Short Chilton Investment Company | DIVERSIFIED 8.5% Futures Equity 17.5% 42.5% Harvest Capital Strategies | FINANCIALS 8.5% Global Harvest Capital Strategies | AGRICULTURE/CONSUMER 6.4% Macro 20% OMT Capital Management | SMALL-CAPITALIZATION 6.4% Long/Short RockView Management | FUNDAMENTAL LONG/SHORT CREDIT 10.0% Fixed Income 20% Premium Point Investments | FUNDAMENTAL LONG/SHORT MBS 10.0% Denali Asset Management | DISCRETIONARY MULTI-ASSET CLASS 4.0% Fund Facts Willowbridge Associates | DISCRETIONARY MULTI-ASSET CLASS 2.7% 300 North Capital | DISCRETIONARY MULTI-ASSET CLASS 2.2% The Fund seeks long-term capital appreciation and absolute returns. QMS Capital Management | QUANTITATIVE MULTI-ASSET CLASS 1.8% Total Net Assets $2 million (as of 09/30/13) Ortus Capital Management | QUANTITATIVE FOREIGN EXCHANGE 1.3% Class A: MULAX-66537Y215 P/E Investments | QUANTITATIVE FOREIGN EXCHANGE 1.3% Symbol + CUSIP Class I: MULIX-66537Y173 Class N: MULNX-66537Y165 Civic Capital Advisors | DISCRETIONARY FOREIGN EXCHANGE 1.8% Minimum Initial/ Class A: $2,500 / $250 Krom River Investment Management | DISCRETIONARY COMMODITIES 2.2% Subsequent Class I: $1,000,000 / $250 Investment Class N: $2,500 / $250 Brevan Howard | EMERGING MARKETS LOCAL FIXED INCOME STRATEGY 2.7% 1% fee on shares redeemed Redemption Fee within 30 days Winton Capital Management | LONG-TERM DIVERSIFIED TREND FOLLOWING 10.6% Income Distribution Annual ISAM | MEDIUM-TERM TREND FOLLOWING 1.6% Inception Date February 28, 2013 Lynx Asset Management AB | INTERMEDIATE-TERM DIVERSIFIED TREND FOLLOWING 1.0% Abraham Trading Company | MULTI-TIMEFRAME TREND AND MEAN REVERSION 0.7% Expense Ratios Gross Net Cap Capital Fund Management [CFM] | DIVERSIFIED, SPECIALIZED TRADING 1.3% Class A 2.77% 2.77% 1.75% Class I 2.52% 2.52% 1.50% Cantab Capital Partners | SHORT-TERM, VALUE AND TREND 1.3% Class N 2.77% 2.77% 1.75% Quantitative Investment Management [QIM] | SHORT-TERM PATTERN RECOGNITION 1.1% * Managers are accessed via the fund of funds portfolio that invests in Other Investment Companies advised by Altegris. ** Totals may not equal alternative strategy target allocation percentages due to rounding. The Fund’s access to managers, strategies, and sub-strategies and the percentage of allocations to the specific alternative strategies listed above are presented to illustrate examples of the diversity of managers, strategies, and sub-strategies accessed by the Fund, but may not be representative of the Fund’s past, or its future, access to alternative managers, strategies, and sub-strategies. 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 Q3.2013 Fund Performance | As of 09/30/2013 Annualized Return Year Since Q3 2013 to Date 1-Year 5-Year Inception† Class A (NAV) 0.41% NA NA NA -0.80% Class A (max load)‡ -5.34% NA NA NA -6.50% Class I (NAV) 0.40% NA NA NA -0.70% Class N (NAV) 0.30% NA NA NA -0.80% HFRX Global Hedge Fund Index 1.10% NA NA NA 1.86% S&P 500 TR Index 5.24% NA NA NA 12.37% † 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, 2014, to ensure that total annual Fund operating expenses after fee waiver and/or reimbursement will not exceed 1.75%, 1.50%, and 1.75% 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 Investors should carefully consider the investment objectives, risks, charges and expenses of the Altegris Multi-Strategy Fund Adviser › Altegris Advisors LLC Alternative Fund. This and other important information about a fund is contained in the fund’s Prospectus, which can be obtained by calling (888) 524-9441. The Prospectus should be read carefully before investing. Funds are distributed by Northern Lights Allen Cheng Chief Investment Officer Distributors, LLC, member FINRA. Altegris Advisors and Northern Lights Distributors, LLC are not affiliated. Matthew Osborne Executive Vice President MUTUAL FUNDS INVOLVE RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL. Jon Sundt President & CEO Alternative Strategies pursued by the Fund may be subject to a number of risks either directly or indirectly through its investments in other Invest- ment Companies, the Subsidiary, securities issued by Underlying Pools, and other derivative and investment instruments. INDEX DESCRIPTIONS. The referenced indices are shown Investing in commodity futures markets subjects the Fund to volatility as commodity futures prices are influenced by unfavorable weather, for general market comparisons and are not meant to represent geologic and environmental factors, regulatory changes and restrictions. any particular Fund. An investor cannot invest directly in an Foreign investments involves risks not typically associated with U.S. investments, including fluctuations in foreign currency values, adverse social index. Moreover, indices do not reflect commissions or fees that and economic developments, less liquidity, greater volatility, less developed or inefficient trading markets, political instability and differing audit- may be charged to an investment product based on the index, ing and legal standards. These risks are magnified in emerging markets. which may materially affect the performance data presented. The HFRX Global Hedge Fund Index. Designed to be The use of credit default swaps (“CDS”) to transfer credit risk involves potentially heightened counterparty, concentration and exposure risks representative of the overall composition of the hedge fund that may result in losses to the Fund. The use of swaps, options, structured notes or other derivative instruments, directly or indirectly, subjects universe, and is comprised of all eligible hedge fund strategies. 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 The strategies are asset weighted based on the distribution incur additional expenses. In addition, leverage can increase share price volatility and magnify the Fund’s gains or losses. of assets in the hedge fund industry. The index includes funds that have at least $50 million under management and 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 eco- a 24-month track record (typical). S&P 500 TR Index. The nomic decline. Preferred stocks and other fixed income securities such as mortgage-or asset-backed bonds, corporate and government bonds, S&P 500 Total Return Index is the total return ver¬sion of S&P and convertible securities are also subject to interest rate risk. As interest rates rise, the value of fixed income securities will typically fall. In 500 index. The S&P 500 index is unmanaged and is generally addition, mortgage and real-estate related securities may be more sensitive to overall economic conditions and are susceptible to prepayment representative of certain portions of the US equity markets. risk and higher default rates. For the S&P 500 Total Return Index, dividends are reinvested Other fixed income securities and derivatives risks include credit risk, which is the possibility that an issuer will fail to make principal or dividend on a daily basis and the base date for the index is January 4, payments when due. The credit risk, liquidity risk, and potential for default is heightened for lower-quality debt securities, also known as “high- 1988. All regular cash dividends are assumed reinvested in the yield” or “junk” bonds. The value of equity and debt securities of smaller issuers or small and mid-sized companies can be more volatile than S&P 500 index on the ex-date. Special cash dividends trigger those of larger companies due to limited product lines, markets or financial resources. a price adjustment in the price return index.