Rational/NuWave Enhanced Market Opportunity Fund
Tickers: NUXAX | NUXCX | NUXIX
Fund Objective
The Fund’s objective is long-term capital appreciation.
Investment Strategy
Systematic Multi-Strategy Approach
The Fund’s portfolio is comprised of an actively managed U.S. equity component and a broadly diversified managed futures component, providing both long and short exposures across a wide variety of financial and commodity markets.
Equity Component
The Equity Component employs a systematic process to identify repetitive patterns of price behavior that are indicative of prevailing market sentiment and/or institutional money flows into or out of individual securities and sectors. These factors are often indicative of large scale asset allocation shifts, sector rotation opportunities, and/or shifting sentiment indicators.
Futures Component
The Futures Component employs a multi-model systematic approach to investing both long and short across a diverse selection of liquid financial and commodity futures markets. This component of the strategy seeks to identify price trends through the application of hundreds of individual trading models, which collectively provide exposure to short-, intermediate- and long-term trading opportunities.
Fund Management
The firm’s management team has remained steadfast in its commitment to a rigorous and disciplined investment process. Over three decades of investment experience has been married to proprietary modeling and trading technologies necessary to compete in a data driven world.
Troy W. Buckner
Mr. Buckner founded NuWave in 2000 and has directly overseen the firm’s investment activities since its inception.
Craig A. Weynand
Mr. Weynand joined NuWave in March of 2009 and is directly responsible for the management and oversight of all aspects of the firm’s general business operations.
Fund Overview
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| Share Class | Class A | Class C | Class I | Class A w/ Sales Load |
| CUSIP | [table “182” does not have that cell /] |
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| Inception Date | [table “182” does not have that cell /] |
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| As of Date | [table “182” does not have that cell /] |
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| Daily NAV | [table “182” does not have that cell /] |
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Current Fund Performance
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| 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 | [table “182” does not have that cell /] |
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| Class C | [table “183” does not have that cell /] |
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| Class I | [table “184” does not have that cell /] |
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| Class A w/Sales Load | [table “182” does not have that cell /] |
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Time periods with missing data for current performance are due to the pre-converted hedge fund only reporting returns on a monthly basis.
*Inception: 03/31/2013. The performance shown prior to March 1, 2018 is that of the Predecessor Fund, which reflects all of the Predecessor Fund’s actual fees and expenses adjusted to include any fees of each share class.
Quarterly Fund Performance
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| 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 | [table “182” does not have that cell /] |
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| Class C | [table “183” does not have that cell /] |
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| Class I | [table “184” does not have that cell /] |
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| Class A w/Sales Load | [table “182” does not have that cell /] |
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*Inception: 03/31/2013. The performance shown prior to March 1, 2018 is that of the Predecessor Fund, which reflects all of the Predecessor Fund’s actual fees and expenses adjusted to include any fees of each share class.
Maximum sales charge for Class A is 5.75%. The performance data quoted here represents past performance. 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. Past performance is no guarantee of future results. Results shown reflect the waiver, without which the results could 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. 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
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| Share Class | Class I | Class A | Class C | Class A w/ Sales Load |
| Prospectus Gross Expense Ratio (May 1, 2020) | 2.37% | 2.77% | 3.34% | 2.77% |
| Prospectus Net Expense Ratio* (May 1, 2020) | 2.02% | 2.27% | 3.02% | 2.27% |
*The Fund’s investment advisor, Rational Advisors, Inc. (the “Advisor”) 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 1.99%, 2.24%, and 2.99% of the average daily net assets of the Fund’s Institutional Shares, Class A Shares, and Class C Shares, respectively, through April 30, 2021.
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. There is no assurance that the fund will achieve its investment objectives. The Fund will invest a percentage of its assets in derivatives, such as futures and options contracts. The use of such derivatives and the resulting high portfolio turn-over may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities and commodities underlying those derivatives. The Fund may experience losses that exceed those experienced by funds that do not use futures contracts, options and hedging strategies. Investing in commodities markets may subject the Fund to greater volatility than investments in traditional securities. Currency trading risks include market risk, credit risk and country risk. Foreign investing involves risks not typically associated with U.S. investments. Changes in interest rates and the liquidity of certain investments could affect the Fund’s overall performance. The Fund is nondiversified and as a result, changes in the value of a single security may have significant effect on the Fund’s value. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities or derivatives owned by the Fund. Furthermore, the use of leveraging can magnify the potential for gain or loss and amplify the effects of market volatility on the Fund’s share price. The Fund is subject to regulatory change and tax risks; changes to current rules could increase costs associated with an investment in the Fund. These factors may affect the value of your investment.
The Fund acquired all of the assets and liabilities of NuWave Equity Enhanced Fund, LP (the “Predecessor Fund”) in a tax-free reorganization on March 1, 2018. In connection with this acquisition, shares of the Predecessor Fund were exchanged for Institutional Shares of the Fund. The Fund’s investment objectives, policies, restrictions, and guidelines are, in all material respects, equivalent to the Predecessor Fund’s investment objectives, policies, restrictions, and guidelines. The Fund’s sub-adviser was the adviser to the Predecessor Fund. The financial statements for the Predecessor Fund can be found in the Fund’s Statement of Additional Information. The performance information set forth above reflects the historical performance of the Predecessor Fund shares. From its inception date, the predecessor limited partnership was not subject to certain investment restrictions, diversification requirements and other restrictions of the 1940 Act of the Code, if they had been applicable, it might have adversely affected its performance. In addition, the predecessor limited partnership was not subject to sales loads that would have adversely affected performance. Performance of the predecessor fund is not an indicator of future results.
