Manager Strategy:
  • Return expected: the fund seeks long-term capital appreciation
  • Volatility expected: since inception, our risk-budget approach has historically limited standard deviation to a range of 10% to 15% annualized
  • Beta expected: the fund’s beta has historically been near-zero to traditional sources of risk
Portfolio consists of long or short positions in global futures markets across:
  • Equity indices, interest rates, currency pairs, and commodities
Investment process is built on proprietary software designed to:
  • Monitor and optimize position sizing according to idiosyncratic volatility
  • Continually seek to uncover potentially attractive markets trending around the world
  • Control portfolio’s catastrophic risk exposure
WAVIX
Documents
(Frequently Used PDFs)
WAVIX
Fund Facts
(all share classes)
Assets as of 10/31/18 346,003,093
Morningstar Classification Managed Futures
Lipper Classification Hedge/Managed Futures/CTAs
Class Inception Date Unitary Fee* Fund Number
A 3/22/13 2.87% 2120
I 6/27/12 2.88% 2121
Class Ticker Cusip
A WAVEX 66538A430
I WAVIX 66538A422
Terms A Shares I Shares
Minimum Investment $2,500 $10,000
Subsequent Investment $250 $2,500
Contribution Daily Daily
*Total Annual Operating Expenses for the Longboard Managed Futures Strategy Fund are 3.12% and 2.88% for Class A and I, respectively.

Longboard Managed Futures Strategy Fund is crafted for investors seeking…

To actively manage risk in an effort to minimize their existing wealth from damaging equity drawdowns

To grow their current wealth by improving risk-adjusted returns

To expand their global exposure in a risk-managed way

There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.

Fund Design

Liquidity

Daily liquidity allows for maximum flexibility
’40 Act mutual fund

Fee Structure

Unitary fee* structure of 2.88%
(asset-weighted range is 2.75% to 2.99%)
Management fee only - no sub-advisory fees

Tax Reporting

Annual 1099
No K1s

Capital Gains

Advantageous 1256 tax treatment of futures contracts
Annual split of 60% long-term, 40% short-term
*Total Annual Operating Expenses for the Longboard Managed Futures Strategy Fund are 3.12% and 2.88% for Class A and I, respectively.

Straightforward construction built with the retail investor in mind

**Inclusive of maximum sales load of 5.75%.

1The % of Risk is the estimated maximum equity a position could lose, divided by the estimated aggregate equity currently at risk of loss across all positions in the portfolio.

Portfolio holdings are subject to change at any time and should not be considered investment advice.

Past results are not necessarily indicative of future results. There is no guarantee that any investment will achieve its goals and generate profits or avoid losses.

PERFORMANCE DISCLOSURE: The Total Annual Fund Operating Expenses for the Longboard Managed Futures Strategy Fund class I is 2.88%. The Total Annual Fund Operating Expenses for the Longboard Managed Futures Strategy Fund class A is 3.12%. 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. For performance information current to the most recent month-end, please call toll-free 855.294.7540.

Monthly WAVIX Returns

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Year Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Annual Totals
2018 8.02% -10.51% -2.38% 2.17% -4.94% 1.21% 0.74% 4.11% -2.46% -5.76% -10.58%*
2017 -1.26% 2.96% 0.56% -1.02% 0.47% -2.14% 2.66% 1.48% -0.46% 4.03% -0.62% 3.72% 13.46%
2016 2.78% 1.48% -8.59% -5.45% -0.10% 8.66% 0.92% -2.00% 1.39% -3.74% -0.85% -1.15% -7.44%
2015 5.83% 3.29% 2.95% -2.24% 2.69% -4.01% 5.14% -3.36% 1.26% -4.29% 3.26% -1.24% 8.91%
2014 -3.55% 1.84% -1.91% 2.25% 1.10% 1.78% -1.26% 3.84% 0.19% -1.23% 7.95% 3.43% 14.84%
2013 3.76% -1.37% 1.19% 1.47% -3.29% -5.99% 2.34% -3.01% -0.96% 3.14% 3.25% 3.60% 3.60%
2012 -0.20% -0.30% 0.20% -0.30% -0.81% 0.31% -1.50%**
*Performance represents a partial period return beginning on January 1, 2018.

**Performance represents a partial period return beginning on July 1, 2012.

Performance Attribution by Asset Class: October 2018

Performance Highlights as of 10/31/2018

Market Asset Class Position % of Risk 1
Swiss Franc / U.S. Dollar Currencies Short 2.70%
5-Year German Bond (Bobl) Fixed Income Long 1.96%
U.S. Dollar / Norwegian Krone Currencies Long 1.58%
IBEX 35 Index (Spain) Equities No Position 0.00%
Ultra U.S. Treasury Bond Futures Fixed Income Short 2.45%
British Pound / U.S. Dollar Currencies Short 2.29%
10-Year German Bond (Bund) Fixed Income Long 2.15%
Australian Dollar / Japanese Yen Currencies Short 1.31%
China A50 Index Combined-SGX Equities No Position 0.00%
U.S. Dollar / Swedish Krona Currencies Long 2.59%
1The % of Risk is the estimated maximum equity a position could lose, divided by the estimated aggregate equity currently at risk of loss across all positions in the portfolio.

Portfolio holdings are subject to change at any time and should not be considered investment advice.

Past results are not necessarily indicative of future results. There is no guarantee that any investment will achieve its goals and generate profits or avoid losses.
Market Asset Class Position % of Risk 1
MSCI Taiwan Index (Taiwan) Equities No Position 0.00%
OMXS30 Index Equities No Position 0.00%
WTI Crude Oil Commodities No Position 0.00%
CAC40 Index Equities No Position 0.00%
Russell 2000 Index Mini Equities No Position 0.00%
Gasoline (New York RBOB) Commodities No Position 0.00%
Cocoa (London) Commodities No Position 0.00%
Sugar (New York) Commodities No Position 0.00%
Nasdaq 100 Index E-Mini Equities No Position 0.00%
S&P TSX 60 Index (Canada) Equities No Position 0.00%
1The % of Risk is the estimated maximum equity a position could lose, divided by the estimated aggregate equity currently at risk of loss across all positions in the portfolio.

Portfolio holdings are subject to change at any time and should not be considered investment advice.

Past results are not necessarily indicative of future results. There is no guarantee that any investment will achieve its goals and generate profits or avoid losses.
Market Asset Class Position % of Risk 1
Carbon Dioxide Emissions Commodities No Position 0.00%
Soybean Oil Commodities Short 1.74%
Soybeans Commodities Short 2.79%
Eurodollar Fixed Income Short 1.30%
2-Year U.S. Treasury Note Fixed Income Short 0.95%
Silver (New York) Commodities No Position 0.00%
Cotton Commodities No Position 0.00%
WTI Crude Oil Commodities No Position 0.00%
5-Year U.S. Treasury Note Fixed Income Short 1.32%
Coffee (New York) Commodities No Position 0.00%
1The % of Risk is the estimated maximum equity a position could lose, divided by the estimated aggregate equity currently at risk of loss across all positions in the portfolio.

Portfolio holdings are subject to change at any time and should not be considered investment advice.

Past results are not necessarily indicative of future results. There is no guarantee that any investment will achieve its goals and generate profits or avoid losses.
Market Asset Class Position % of Risk 1
Cocoa (London) Commodities No Position 0.00%
Cocoa (New York) Commodities Short 0.98%
OMXS30 Index Equities No Position 0.00%
Swiss Franc / Japanese Yen Currencies No Position 0.00%
S&P CNX Nifty Index-(SIMEX) Equities Short 0.80%
MSCI Taiwan Index (Taiwan) Equities No Position 0.00%
Aluminum (London) Commodities No Position 0.00%
S&P TSX 60 Index (Canada) Equities No Position 0.00%
FTSE 100 Index (United Kingdom) Equities No Position 0.00%
Volatility Index (VIX) Equities No Position 0.00%
1The % of Risk is the estimated maximum equity a position could lose, divided by the estimated aggregate equity currently at risk of loss across all positions in the portfolio.

Portfolio holdings are subject to change at any time and should not be considered investment advice.

Past results are not necessarily indicative of future results. There is no guarantee that any investment will achieve its goals and generate profits or avoid losses.

Risk Allocation by Asset Class as of 10/31/2018

1The % of Risk is the estimated maximum equity a position could lose, divided by the estimated aggregate equity currently at risk of loss across all positions in the portfolio. There is no assurance that the identified level of risk will be achieved or be maintained as risk cannot be predicted with certainty.

Portfolio holdings are subject to change at any time and should not be considered investment advice
Largest Holdings Position % of Risk 1
MSCI EAFE Index Mini Short 2.45%
FTSE MIB Index Short 2.39%
MSCI Emerging Markets Index Mini Short 2.36%
Newest Positions Position % of Risk 1
Hang Seng Index Short 10.04%
S&P CNX Nifty Index None 4.57%
Hang Seng China Enterprises (H-Shares) Short 9.01%
Largest Holdings Position % of Risk 1
Ultra U.S. Treasury Bond Futures Short 2.45%
10-Year German Bond (Bund) Long 2.15%
30-Year German Bond (Buxl) Long 2.02%
Newest Positions Position % of Risk 1
10-Year Canadian Government Bond Short 6.40%
Ultra U.S. Treasury Bond Futures Short 14.01%
10-Year Italian Government Bond (Long Term) Short 9.89%
Largest Holdings Position % of Risk 1
Swiss Franc / U.S. Dollar Short 2.70%
U.S. Dollar / Swedish Krona Long 2.59%
British Pound / U.S. Dollar Short 2.29%
Newest Positions Position % of Risk 1
Polish Zloty / U.S. Dollar Short 10.99%
Euro / U.S. Dollar Short 9.83%
U.S. Dollar / Czech Koruna Long 10.84%
Largest Holdings Position % of Risk 1
Soybeans Short 2.79%
Lead Monthly Prompt Short 2.65%
Crude Palm Oil Short 2.03%
Newest Positions Position % of Risk 1
Wheat (Kansas City) Short 7.34%
Canola Short 1.41%
Palladium Long 5.66%

Long and Short Positions by Asset Class as of 10/31/2018

Asset Class 10/31/18 9/30/18 8/31/18 7/31/18
Equities
Long 0 14 14 13
Short 12 2 0 0
Asset Class 10/31/18 9/30/18 8/31/18 7/31/18
Currencies
Long 5 3 2 1
Short 11 9 9 6
Asset Class 10/31/18 9/30/18 8/31/18 7/31/18
Fixed Income
Long 4 4 5 6
Short 8 7 6 5
Asset Class 10/31/18 9/30/18 8/31/18 7/31/18
Commodities
Long 10 10 13 15
Short 22 20 22 19
Each of these asset classes has its own set of investment characteristics and risks and investors should consider these risks carefully prior to making any investments. Equities are subject to dynamic fluctuations in the overall market. Fixed Income risks include changes in interest rates. Currencies are subject to changes in interest rates, currency exchange rates, and economic and political risks. Commodity prices are influenced by weather, agricultural uncertainties, geologic and environmental factors, and governmental regulation.