The fund’s primary investment objective is long-term growth of capital. As a secondary, but equally important objective, the fund seeks to manage volatility and market risk. Seeking long-term growth of capital during good times is important, but it is equally important to manage volatility and market risk during bad times.
Since inception of the KCMTX fund through the bear market bottom on March 8, 2009, the Fund avoided 67% of the S&P 500’s loss in value.1
- Down 48.2%
- Recovered 23 months later
- Down 16.3%
- Recovered 2 months later
1Calculated from S&P 500 high on 8/11/08 to its market bottom on 3/8/09. The Fund launched on 8/4/08.”
Performance data represents past performance and is not a guarantee of future results. Performance current to the most recent month-end may be lower or higher, and can be obtained by calling 800.945.2125. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s total annual operating expense ratio is 1.66%. The indices shown are for illustrative purposes only. Unmanaged index returns do not reflect any fees, expenses or sales charges. You cannot invest directly in an index. The HFRX Equity Hedge Index is reflected as a benchmark for equity hedge strategies. Source: Hedge Fund Research, Inc. The Morningstar MultialternativeTM category includes funds that have a majority of their assets exposed to alternative strategies, including long / short strategies, and can include funds with static allocations to alternative strategies and funds tactically allocating among alternative strategies and asset classes. Source: Morningstar, Inc.
© 2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
The KCM Macro Trends Fund (KCMTX) is the top-ranked Morningstar, Multi-Alternative fund for the five-year period ended June 30, 2019 out of 174 funds based on total return. It is ranked in the in the top 3% and 6% out of 262 and 60 funds for the the three- and ten-year periods, respectively. Rankings are just one form of performance measurement.
The Morningstar RatingTM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The KCM Macro Trends Fund was rated against 265, 177 and 60 U.S.-domiciled Multialternative funds for the three, five and ten-year periods ending June 30, 2019. The fund received a rating of five stars for the three-year period, five stars for the five-year period and five stars for the ten-year period, and an Overall Morningstar Rating of five stars. Morningstar Rating is for the R-1 share class only; other classes may have different performance characteristics.
Lipper, Inc: The Best Alternative Global Macro Fund award is granted to the fund in the Alternative Global Macro category with the highest Lipper Leader score for Consistent Return over the 5-year period as of 11.30 of the prior year. Lipper awards are granted annually to the funds in each Lipper classification that achieve the highest score for Consistent Return, a measure of funds’ historical risk-adjusted returns, relative to peers. Lipper Awards from Refinitive, © 2019 Refinitive. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited. Lipper, a wholly owned subsidiary of Refinitive, is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.
Mutual Funds involve risk including possible loss of principal. Investors should carefully consider the investment objectives, risks, charges and expenses of the KCM Macro Trends Fund before investing. The Fund may invest in small, less well-known companies, which may be subject to more erratic market movements than large-cap stocks; foreign securities, which are subject to currency fluctuations and political uncertainty; and derivative securities, which may carry market, credit and liquidity risks. The Fund may also engage in short selling activities, which are more risky than “long” positions because the potential loss on a short sale is unlimited. The Fund may use leveraging and/or hedging techniques that could fail if changes in the value of the derivative do not correlate with the securities being hedged. These risks may result in greater share price volatility. Definitions. Short: Any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume they will be able to buy the stock at a lower amount that the price at which they sold short. Long: The buying of a security such as a stock, commodity or currency with the expectation that the asset will rise in value.
No-Load mutual funds are sold without a sales charge, however other fees and expenses do apply to an investment in the fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at www.kernscapital.staging.wpengine.com or by calling 800-945-2125. The prospectus should be read carefully before investing. The KCM Macro Trends Fund is distributed by Northern Lights Distributors, LLC. Member FINRA/SIPC. Kerns Capital Management, Inc. and Northern Lights Distributors, LLC are not affiliated.