Astor’s Sector Allocation Fund is designed to replace traditional core equity investments by combining Astor’s macroeconomic approach with dynamic allocation. The Fund seeks to provide capital appreciation during periods of economic expansion by investing in sectors and broad markets categories displaying positive fundamental and/or price trends. A proprietary sector rotation model seeks to under/overweight sectors throughout periods in order to take advantage of growth differentials between sectors. As economic trends weaken, the Fund will attempt to progressively lower equity exposure and substitute with cash and/or fixed income positions in order to manage risk and reduce significant drawdowns. The Fund uses exchange-traded funds (“ETFs”) for portfolio construction.
Mutual funds involve risk including the possible loss of principal. Past results are no guarantee of future results and no representation is made that a client will or is likely to achieve positive returns, avoid losses, or experience returns similar to those shown or experienced in the past. All information contained herein is for informational purposes only. This is not a solicitation to offer investment advice or services in any state where to do so would be unlawful.
The Fund seeks to achieve its objectives by investing in Exchange-Traded Funds (“ETFs”). An ETF is a type of Investment Company which attempts to achieve a return similar to a set benchmark or index. The value of an ETF is dependent on the value of the underlying assets held. ETFs are subject to investment advisory and other expenses which results in a layering of fees for clients. As a result, your cost of investing in the fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds with similar investment objectives. ETFs may trade for less than their net asset value. Although ETFs are exchanged traded, a lack of demand can prevent daily pricing and liquidity from being available.
The Fund can purchase ETFs with exposure to equities, fixed income, and specific sectors. The underlying investments of these ETFs have different risks. Equity prices can fluctuate for a variety of reasons including market sentiment and economic conditions. The prices of small and mid-cap companies tend to be more volatile than those of larger, more established companies. It is important to note that bond prices move inversely with interest rates and fixed income. Fixed Income ETFs can experience negative performance in a period of rising interest rates. Debt issuers may not make interest or principal payments, resulting in losses to the funds. In addition, the credit quality of securities held by an ETF or underlying fund may be lowered if an issuer’s financial condition changes. High yield bonds are subject to higher risk of principal loss due to an increased chance of default. Investments in specific sectors can experience greater levels of volatility than broad-based investments due to their more narrow focus.
Astor maintains a License Agreement with First Trust Portfolios L.P. (“First Trust”) to use the term AlphaDEX® for marketing purposes which may present a conflict of interest by creating an incentive for Astor to select First Trust ETFs for investment purposes. Neither First Trust nor Astor are compensated directly as part of the agreement, but both parties will mutually benefit from an increase in assets in the strategy due to the separate fees Astor and First Trust each charge on assets under management. First Trust owns the trade name and trademark rights, title, and interest in and to the AlphaDEX® mark. An affiliate of First Trust, First Trust Advisors L.P., manages the AlphaDEX® ETFs.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the ETFs held within Astor’s strategies before investing. This information can be found in each fund’s prospectus.
An investor should consider the Astor funds’ investment objectives, risks, charges, and expenses carefully before investing. This and other information about the Astor funds are contained in the funds’ prospectus, which can be obtained by calling (877) 738-0333. Please read the prospectus carefully before investing. The funds are distributed by Northern Lights Distributors, LLC a FINRA/SIPC member. Astor Investment Management is not affiliated with Northern Lights Distributors, LLC. 503161-381, 3294-NLD-4/1/2016