Rational/Pier 88 Convertible Securities Fund

Rational/Pier 88 Convertible Securities Fund



The Rational/Pier 88 Convertible Securities Fund seeks to offer investors a “call option” on fast growing businesses by investing in convertible securities, which offer equity participation with the benefit of a bond floor component.

Fund Highlights

  • Convertible bonds participate in market upside, but offers equity participation with the benefit of a bond floor component.
  • The Fund will primarily focus on equity-sensitive, balanced and credit sections of the market
  • Convertibles have a lower historical default rate than high yield1

1Source: Barclays Research

Investment Strategy


The Fund invests primarily in convertible securities, which are “hybrid” securities that possess both fixed income and equity characteristics. A convertible security is a bond, preferred stock or another security that may be converted into a prescribed amount of common stock at a pre-stated price. The convertible securities asset class is often overlooked because of the unique profile and thus trades at a discount to its pari-passu fixed income counterparts.

Equity Sensitivity

Equity sensitivity has been the primary driver of returns of the asset class. The managers employ an equity analysis perspective for investment decisions.


The investment team establishes a view on the intrinsic value of a business and then examines the overall capital structure of that asset to identify potential mispricing.

Portfolio Structure

The managers will structure the Fund’s portfolio based on their macroeconomic views and will seek to take advantage of perceived secular and cyclical themes across all industry sectors.

Fund Management


Francis T. Timons | Lead Portfolio Manager

  • CEO and CIO of Pier 88
  • Previoulsy Portfolio Manager at Lord Abbett & Co. for the convertible, large cap core, and large cap value strategies
  • Previously Research Analyst at Lord Abbett & Co and Robert W. Baird & Co.
  • B.A. and J.D. from Notre Dame and MBA from University of Chicago

Sean J. Aurigemma | Portfolio Manager

  • Partner and CCO of Pier 88
  • Previously Lead Portfolio Manager at Lord Abbett & Co. for the large cap value and value equity strategies
  • Previously Managing Director and Lead Portfolio Manager at Morgan Stanley Investment Management
  • B.A. with High Honors from Notre Dame
Fund Documents
Fact Sheet
Summary Prospectus

Important Risk Information

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. The Fund is a new mutual fund and has a limited history of operations for investors to evaluate. Investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategies. The Fund is non-diversified and may invest a greater percentage of its assets in a particular issue and may own fewer securities than other mutual funds; the Fund is subject to concentration risk. Investments in convertible securities subject the Fund to the risks associated with both fixed-income securities, including credit risk and interest risk, and common stocks. A portion of the Fund’s convertible securities may be rated below investment grade.  Exchangeable and synthetic convertible securities may be more volatile and less liquid than traditional convertible securities.  In general, stock and other equity security values fluctuate, and sometimes widely fluctuate, in response to activities specific to the company as well as general market, economic and political conditions. Lower rated fixed-income securities are subject to greater risk of loss of income and principal than higher-rated securities.  The prices of lower rated bonds are likely to be more sensitive to adverse economic changes or individual corporate developments.  All fixed-income securities are subject to two types of risk: credit risk and interest rate risk.  Interest rate risk is the risk that bond prices overall, including the prices of securities held by the Fund, will decline over short or even long periods of time due to rising interest rates. Bonds with longer maturities tend to be more sensitive to interest rates than bonds with shorter maturities. Lower-quality bonds, known as “high yield” or “junk” bonds, present greater risk than bonds of higher quality, including an increased risk of default. Credit risk is the risk that the issuer of a security will not be able to make principal and interest payments when due. These factors may affect the value of your investment.

The Fund commenced operations by acquiring all of the assets and liabilities of Lake Como Convertible Bond Fund, L.P. (the “Predecessor Fund”) in a tax-free reorganization on December 6, 2019 (the “Reorganization”). In connection with the Reorganization, investors in the Predecessor Fund received Institutional Shares of the Fund. The Fund’s investment objectives, policies, guidelines and restrictions are, in all material respects, equivalent to those of the Predecessor Fund. However, the Predecessor Fund was not registered under the 1940 Act and, therefore, was not subject to certain investment restrictions, limitations and diversification requirements that are imposed by the 1940 Act or Subchapter M of the Internal Revenue Code that, if they had been applicable, might have adversely affected the Predecessor Fund’s performance. The Fund’s Sub-Advisor was the investment adviser to the Predecessor Fund.


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