Rational Dynamic Brands Fund
Tickers: HSUAX | HSUCX | HSUTX
Fund Objective
The Fund’s investment objective is to seek long-term capital appreciation.
Reasons to Invest
Dedicated Allocation: Global Consumer Spending
RISK-MANAGED APPROACH FOR EQUITY INVESTORS
At $18 trillion, the U.S. economy is the largest in the world by GDP. The Household Consumption component ($12 trillion) represents roughly 70% of total economic output1. The consumer, via household spending, has been the primary driver of economic growth for over half a century. Brand loyalty and demographic trends drive customer behavior.
If consumption drives the economy, shouldn’t the most powerful brands be driving your investment portfolio?
As of 1/31/2018, AMZN holds 4.9% of the Rational Dynamic Brands fund’s overall holdings, while NVDA holds 1.8% of the fund’s overall holdings, respectively. Holdings are subject to change and do not constitute a recommendation to buy or sell a particular security.
4258-NLD-2/28/2018
4023-NLD-1/4/2018
9105-NLD-11/28/2017
Portfolio Manager Insights
Fund Management
Rational DYNAMIC Brands: Powered by fundamentals, guided by technicals, risk managed to potentially offer a smoother ride.
Dynamic Brands is powered by The Alpha Brands Consumer Spending Index (Bloomberg Ticker: Brands Index). The index is an equally weighted basket of stocks that tracks the most relevant & leading 200 Business to Consumer and Business to Business brands. The Sub-advisor, Accuvest Global Advisors, and its Investment Committee creates a “best of the best” portfolio of the most attractive 25-50 Brands across 70 sub-industries and 10 sectors. The committee manages the strategy for attractive risk-adjusted returns and has the flexibility to hold up to 40% cash or other protective ETF’s if conditions warrant a reduced allocation to equities. The Committee utilizes a significant number of single-factor and multi-factor quantitative screens for idea generation. Style-factor analysis is at the core of the investment process. The Dynamic Brands strategy is unconstrained with regard to its style-factor tilts (value, growth, domestic sales, international sales, defensives, etc) and is designed to adapt to markets as the business cycle evolves.
David Garff
Founder, President, CIO and CCO, Accuvest Global Advisors
B.A. in Economics and Spanish Translation, from Brigham Young University; Master’s Degree in Business Administration from the Haas School of Business at the University of California, Berkley
Eric M. Clark
BA in Urban Planning with an emphasis in Real Estate and Economics from the University of Maryland, College Park
James Calhoun, CFA
BS in Finance and Economics for the University of Nevada, Reno
Fund Overview
Data as of: 2024-11-19T00:00:00
| Ticker | HSUAX | HSUCX | HSUTX | HSUAX |
| Share Class | Class A | Class C | Class I | Class A w/ Sales Load |
| CUSIP | 628255804 | 628255887 | 628255879 | 628255804 |
| Inception Date | 2002-09-29T00:00:00 | 2014-01-03T00:00:00 | 2002-09-29T00:00:00 | 2002-09-29T00:00:00 |
| As of Date | 2024-11-19T00:00:00 | 2024-11-19T00:00:00 | 2024-08-20T00:00:00 | 2024-11-19T00:00:00 |
| Daily NAV | 39.24 | 31.98 | 58.83 | 39.24 |
| NAV Change | 0.28 | 0.23 | 0.04 | 0.28 |
| % NAV Change | 0.72% | 0.72% | 0.07% | 0.72% |
Current Fund Performance
Data as of: 2024-11-19T00:00:00
Prior to 10/17/2017, Rational Dynamic Brands Fund was named the Rational Defensive Growth Fund, which implemented a different investment strategy.
| Share Class | 1 Month | 3 Months | 6 Months | YTD | 1 Year | 3 Years Annualized | 5 Years Annualized | 10 Years Annualized | Since Inception Annualized |
| Class A | 2.08% | 10.26% | 12.56% | 24.61% | 33.38% | 3.04% | 14.77% | 10.57% | 11.14% |
| Class C | 2.01% | 10.05% | 12.17% | 23.81% | 32.48% | 2.31% | 13.96% | 9.86% | 8.86% |
| Class I | 1.92% | 2.10% | 5.20% | 13.27% | 32.92% | 1.77% | 13.89% | 9.65% | 11.07% |
| Class A w/Sales Load | -2.78% | 5.03% | 7.21% | 18.69% | 27.03% | 1.39% | 13.66% | 10.04% | 10.90% |
Quarterly Fund Performance
Data as of Quarter End: 2024-09-30T00:00:00
| Share Class | 1 Month | 3 Months | 6 Months | YTD | 1 Year | 3 Years Annualized | 5 Years Annualized | 10 Years Annualized | Since Inception Annualized |
| Class A | 4.04% | 5.33% | 7.13% | 19.28% | 39.52% | 4.14% | 14.76% | 10.43% | 11.00% |
| Class C | 3.97% | 5.15% | 6.76% | 18.62% | 38.52% | 3.41% | 13.94% | 9.73% | 8.54% |
| Class I | 3.88% | 1.76% | 13.36% | 13.36% | 32.91% | 1.59% | 14.32% | 9.30% | 11.15% |
| Class A w/Sales Load | -0.90% | 0.32% | 2.04% | 13.61% | 32.91% | 2.46% | 13.65% | 9.90% | 10.75% |
The maximum sales charge for Class “A” Shares is 4.75%. In the case of investments of $1 million or more (where you do not pay an initial sales charge), a 1.00% contingent deferred sales charge (CDSC) may be assessed on shares redeemed within two years of purchase. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the funds prospectus please call 800-253-0412 or visit www.RationalMF.com.
Fund Expenses
Data as of: 2024-11-19T00:00:00
| Share Class | Class I | Class A | Class C | Class A w/ Sales Load |
| Prospectus Gross Expense Ratio (May 1, 2024) | 1.26% | 1.52% | 2.23% | 1.52% |
| Prospectus Net Expense Ratio (May 1, 2024) | 1.24% | 1.49% | 2.23% | 1.49% |
Rational Advisors, Inc. has contractually agreed to waive all or a portion of its management fee and/or reimburse certain operating expenses of the Fund to the extent necessary in order to limit the Fund’s total annual fund operating expenses (excluding (i) acquired fund fees and expenses; (ii) brokerage commissions and trading costs; (iii) interest (including borrowing costs and overdraft charges), (iv) taxes, (v) short sale dividends and interest expenses, and (vi) non-routine or extraordinary expenses, such as regulatory inquiry and litigation expenses) to not more than 1.24%, 1.49% and 2.24% of the average daily net assets of the Fund’s Institutional, Class A, and Class C shares, respectively, through April 30, 2025.
Past performance is not a guarantee of future results.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Rational Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (800) 253-0412 or at www.RationalMF.com. The prospectus should be read carefully before investing. The Rational Funds are distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Rational Advisors, Inc. is not affiliated with Northern Lights Distributors, LLC.
Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund's portfolio. These factors may affect the value of your investment. Investments in international markets present special risks including currency fluctuation, the potential for diplomatic and political instability, regulatory and liquidity risks, foreign taxations and differences in auditing and other financial standards. Risks of foreign investing are generally intensified for investment in emerging markets. Emerging market securities tend to be more volatile and less liquid than securities traded in developed countries.
