Rational Strategic Allocation Fund

Rational Strategic Allocation Fund



The Strategic Allocation Fund seeks current income and moderate appreciation of capital.

Investment Strategy

Portfolio Structure

The Fund invests in a portfolio of futures contracts on the S&P 500 Index and income-oriented mutual funds typically representing non-traditional fixed income asset classes with the objective to 1) provide current income, 2) provide additional return over the long term, and 3) support the goal of moderate capital appreciation by buffering the impact of downside equity market volatility.


The Fund will typically maintain 70% to 100% notional exposure to the S&P 500 Index and 70% to 100% notional exposure to the fixed income portfolio.

Fixed Income

The fixed income portfolio consists of underlying funds focused on non-traditional fixed income asset classes such as non-agency residential and commercial mortgage backed securities, asset-backed securities, collateralized loan obligations, floating rate loans, and other floating rate investments. The fixed income portfolio may also include exposure to corporate debt and convertible securities.


Fixed income funds are selected for investment based on a fundamental research process, including a top-down analysis of market conditions and investment category historical performance during various market conditions, and a bottom-up analysis, such as the fund’s investment allocations, valuations and characteristics.

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. Because the Advisor is primarily responsible for managing both the Fund and certain Underlying Funds, the Advisor is subject to conflict of interest with respect to how it allocates the Fund’s assets among the Underlying Funds.  Derivatives are investments in which the value is “derived” from the value of an underlying asset, reference rate, or index.  The value of derivatives may rise or fall more rapidly than other investments.  For some derivatives, it is possible to lose more than the amount invested in the derivative.  If the Fund uses derivatives to “hedge” the overall risk of its portfolio, it is possible that the hedge may not succeed. Because the Fund may invest its assets in underlying mutual funds or ETFs that have their own fees and expenses in addition to those charge directly by the Fund, the Fund may bear higher expenses than a Fund that invests directly in individual securities.


Fund Documents
Fact Sheet
Summary Prospectus
Semi-Annual Report
Annual Report
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