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About Princeton Futures Strategy Fund

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Fund Approach

ACCESS

Futures investing has historically been limited to LP and LLC alternative investment structures.  The Princeton Futures Strategy Fund attempts to provide access to global futures markets, without the required investor accreditation of an LP investment and with daily liquidity.

DIVERSIFICATION

The Futures market is a dynamic market with hundreds of diverse instruments available for trading. The Princeton Futures Strategy Fund provides diversified exposure to the global markets, including commodities, global currencies and a wide variety of financial futures instruments. The Fund seeks low correlation to the equity and fixed income markets.  Additionally, while the strategy is trend-following in nature, it is expected to have a relatively low correlation with other industry indexes, such as the Barclay BTOP50 Index ("BTOP50").

EXPERIENCE

The Princeton Futures Strategy Fund is managed by industry experts with more than 60 years of direct futures fund management and market expertise. The team has the experience and industry know how to manage futures exposure through a wide variety of market conditions.

RISK MANAGEMENT

Futures investing offers what has historically been an uncorrelated investment solution to the global equity markets. However, within the futures markets a wide variation in performance can occur. The strategy seeks to mitigate risk by carefully diversifying the portfolio across markets and sectors and targets a low margin to equity ratio in an attempt to dampen volatility and improve the consistency of returns.

 

Four Components of Portfolio Diversification

 

MARKET
DIVERSIFICATION

 

GEOGRAPHIC DIVERSIFICATION

 

TIME
FRAME

 

INVESTMENT
STYLE

The Fund is focused on achieving diversification through a broad variety of commodity and financial futures markets.

 

The Fund strives for a weighting of 65% to the commodity sector and 35% to the financial sector.

 

The allocation weightings  may vary depending on market conditions.

 

The Fund trades in markets across the globe including markets in Japan, Australia, Europe, and the United States.

 

The Fund’s strategy focuses on different time frames or market cycles.


Investment holding periods can vary from one day to eight months.

 

The Fund’s strategy is systematic and trend-following in nature.  It is based upon time-price analysis and pattern recognition with a counter trend component. 

 

It is expected to have a relatively low correlation with other industry indexes, such as the BTOP50.

 

Diverse Futures Market Exposure

Potential Markets (as of 6/30/2016) 1

Actively Traded Contracts2

 

Circle graph

 

COMMODITIES FINANCIALS

Coffee
Sugar
Soybeans
Wheat
Lean Hogs
Crude Oil
Natural Gas
Platinum
Copper
Gold

Euro
Yen
Australian Dollar
U.S. 10 Year Note
Euro Bund
Long Gilt
DAX
S&P 500 e-mini
Nikkei 225

11Holdings are subject to change. The Fund also holds cash, cash equivalents and fixed income securities, which are excluded.

2The number and type of markets traded and contracts will continuously vary. Not all contracts will be traded at any one time. Additional markets monitored that may be added to the portfolio in the future include the following: British pounds, U.S. 30-Year Treasury Bond, U.S. 5-Yr Treasury Note, Euro-Bobl, Euro Stoxx 50, FCOJ (orange juice), cocoa, London cocoa, London sugar, milk, live cattle, soybean meal, Kansas City wheat, Minneapolis wheat, silver, palladium, heating oil and RBOB (unleaded gasoline). Other markets may be added in the future.

 


Investors should carefully consider the investment objectives, risks, charges and expenses of the Princeton Futures Strategy Fund. This and other important information about the Fund is contained in the Prospectus, which can be obtained by contacting your financial advisor, or by calling 1.888.868.9501. The Prospectus should be read carefully before investing. The Princeton Futures Strategy Fund is distributed by Foreside Distribution Services, L.P. Princeton Fund Advisors, LLC and Foreside Distribution Services, L.P. are not affiliated.

Mutual Funds involve risk including the possible loss of principal. Investing in the commodities markets may subject the Fund to greater volatility than investments in traditional securities. There is a risk that issuers and counter parties will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund. Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. In general, the price of a fixed income security falls when interest rates rise. Foreign common stocks and currency strategies will subject the Fund to currency trading risks that include market risk, credit risk and country risk. Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. Nationalization, expropriation or confiscatory taxation, currency blockage, market disruption, political changes, security suspensions, potential restrictions on the flow of international capital, or diplomatic developments could adversely affect the Fund's investments in certain securities. Using derivatives to increase the Fund's combined long and short exposure creates leverage, which can magnify the Fund's potential for gain or loss. Non-diversification risk, as the Funds are more vulnerable to events affecting a single issuer. The Fund may focus its investments in securities of a particular sector. Economic, legislative or regulatory developments may occur that significantly affect the entire sector. This may cause the Fund's net asset value to fluctuate more than that of a fund that does not focus in a particular sector. Short positions may be considered speculative transactions and involve special risks, including greater reliance on the ability to accurately anticipate the future value of a security or instrument. Underlying Funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in an Underlying Fund and may be higher than other mutual funds that invest directly in stocks and bonds. The Subsidiary will not be registered under the Investment Company Act of 1940 ("1940 Act") and, unless otherwise noted in this Prospectus, will not be subject to all of the investor protections of the 1940 Act.

 

Returns presented reflect reinvestment of all dividends, interest and realized gains. Past performance should not be considered predictive of future performance. Given the inherent volatility of the securities markets generally, it should not be assumed that investors will experience returns comparable to those shown here. Investor returns may vary due to the timing of investment and the activity during the period being considered. Performance results for the months commencing September 2008 were obtained during periods of extreme market volatility and uncertainty. Results obtained during these periods may not be reflective of performance that would have been obtained during normal market conditions. As with any investment, there can be no assurance that the investment objective will be achieved or that an investor will not lose a portion or all of its investment. Index returns have been provided by Mount Yale relying on data received from outside sources. Mount Yale has not independently verified this information, and cannot guarantee its accuracy or completeness. Definitions of the indexes and related definitions used in this presentation are as follows.

 

Annualized Return
is a hypothetical rate of return that, if achieved annually, would have produced the same cumulative return if the performance had been constant over the entire time period.

 

Standard Deviation
is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their sample mean. Standard Deviation is used as an estimate of risk since it measures how wide the range of returns typically is. The wider the typical range of returns, the higher standard deviation of returns, and the higher the portfolio risk.

 

Maximum Draw Down
is defined as the percentage decline from the highest account value to the lowest account value over a specified period of time.

 

Correlation
is a measure that illustrates the extent to which two investments or securities move in relation to each other. Two investments or securities are positively correlated if positive changes of one are likely to be associated with positive changes of the other. They are negatively correlated if positive changes of one are likely to be associated with negative changes of the other.

 

Beta
is a quantitative measure of the risk of a particular investment in relation to a market index. It describes the sensitivity of the investment to broad market movements. The higher the beta, the more sharply the value of the investment can be expected to fluctuate in relation to a market index.

 

The Barclay CTA Index
measures the combined performance of all CTAs with more than four years of performance. These managers will invest in listed financial and commodity futures markets and currency markets around the world with either a systematic or discretionary trading discipline. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index.

 

The Barclay BTOP50 Index ("BTOP50")
which seeks to replicate the overall composition of the managed futures industry with regard to trading style and overall market exposure. An investor cannot invest directly in the index.

 

The MSCI World Index
is an unmanaged index commonly used as a benchmark to measure global manager performance and characteristics. The index’s performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index.

 

The S&P 500 Index
is an unmanaged index commonly used as a benchmark to measure large cap core stock performance and characteristics. The index’s performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index.

 

The Russell 2000 Index
is an unmanaged index commonly used as a benchmark to measure small cap core manager performance and characteristics. The index’s performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results.  An investor cannot invest directly in the index.

 

The MSCI EAFE Index
is an unmanaged index commonly used as a benchmark to measure international manager performance and characteristics. The index’s performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index.

 

6207-NLD-3/24/2015