Absolute Return

..............................................................................................................................................

Absolute Return

Why Currencies? | Absolute Return | Fund Managers | Purchase | Contact Us

Absolute return strategies are designed to produce results that are largely independent of, or have low correlation to, the broader markets. This differs from traditional mutual funds that measure their performance to a broad market index or overall asset class. In other words, absolute return strategies seek positive returns though up, down, and sideways markets.

The addition of an absolute return approach for investors can be described in three main ways:

Generate returns through additional sources. The active approach of absolute return strategies decreases portfolio dependence on broad market uptrends. Market downturns can last years, making it difficult to generate returns using a relative return philosophy.

Help lower portfolio volatility. The Currency Strategies Fund attempts to maintain a standard deviation of monthly returns less than 1% and low correlation to other asset classes. Including FOREX in a portfolio could help lower volatility and increase risk adjusted returns.

Multiple strategy exposure. Absolute return managers can employ multiple strategies to achieve positive returns. Diversification amongst strategy can be just as important as diversification amongst asset classes.

This approach naturally lends itself to currency trading since foreign exchange is a zero-sum game. Currencies must be traded to generate returns and no one trades with the goal of negative returns.

Consistently achieving positive returns on a daily basis in foreign exchange is nearly impossible. Instead, the performance goal of The Currency Strategies Fund is to achieve positive returns on a rolling 12-month basis with drawdown of no more than five percent.

This is an actively managed dynamic portfolio. There is no guarantee that this investment will achieve its objectives, goals, generate positive returns, or avoid losses. Correlation is a measure of the relation between two or more variables on a scale of –1 to 1. A zero correlation indicates there is no relationship between the variables with –1 and +1 representing perfect negative and perfect positive relationships, respectively. Volatility is measured using standard deviation which is a statistical measurement that shows how much variation there is from the average (mean). Draw down is the peak-to-trough decline during a specific record period of an investment, fund or commodity. A draw down is usually quoted as the percentage between the peak and the trough.

Important Information

Before investing, please read the Fund’s prospectus and shareholder reports to learn about its investment strategy and potential risks. Mutual Funds involve risk including possible loss of principal. An investor should consider the Fund’s investment objective, risks, charges, and expenses carefully before investing. This and other information about The Currency Strategies Fund is contained in the fund’s prospectus, which can be obtained by calling 888.898.4784 . Please read the prospectus carefully before investing. The Currency Strategies Fund is distributed by Northern Lights Distributors, LLC, Member FINRA. Sarasota Capital Strategies and Northern Lights distributors, LLC are not affiliated. Currency trading involves significant risks, including market risk, interest rate risk and country risk; because of shorting and leveraging techniques, this fund may experience increased risk and volatility; investing through the Fund in Underlying Funds involves certain additional expenses and certain tax results that would not arise if you invested directly in the Underlying Funds; and investing in foreign securities presents risk not associated with domestic investments, such as currency fluctuations, political and economic changes and market risks. NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.

1349-NLD-6/28/2011