Tactical Risk

Objective

The primary investment objective of the Beacon Tactical Risk ETF Fund is to seek to provide long-term capital appreciation.

Investment Approach

Beacon follows the modern efficient-market theory, which believes that markets are generally efficient and, therefore, a buy-and-hold strategy has the potential to yield the best long-term results. However, we also recognize that markets at times become irrational and bubbles are created that eventually burst with the potential for creating devastating losses for the retail investor. Beacon's systematic buy-sell criteria strives to minimize the impact of emotional investing while utilizing a trailing stop loss strategy, designed to minimize the impact of these devastating losses while the market corrects.

Process & Management

The Beacon Tactical Risk Fund is diversified across 11 different market sectors. Rather than attempt to predict which sector, such as technology, health care or energy, is going to be in favor, these portfolios invest in all sectors. The buy and sell triggers for the stop loss are based on the performance of our internal benchmark (the "Stock Index" portfolio). Beacon recalculates the performance of the "Stock Index" portfolio daily. When that index reaches its highest value point and then drops 10% from the high watermark; that is the target trigger to automatically sell out of all equity positions held within the model. The proceeds from the equity liquidations are then invested equally amongst three fixed income positions. This 100% fixed income allocation is maintained until our buy trigger is initiated. The buy trigger is also based off the performance of the Stock Index portfolio. However, unlike the sell trigger, the buy trigger has a range of initiation; the buy trigger can range from 15% to 25% from the Stock Index's low watermark. The amount of rebound required from the bottom is dependent on two factors; time and loss. The longer it takes the index to reach its lowest value, the higher the required rebound will be.

Important Risk Disclosures

Investors should carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in each of the Beacon fund prospectuses, which should be read carefully before investing and can be obtained under the Fund Documents section for each fund or by calling 866.439.9093.

Investing involves risk, including the possible loss of principal. Equity investments are subject to market risk and may decline in value due to broad market movements, sector conditions, issuer-specific events, or economic developments. The fund invests primarily in ETFs and is subject to the risks and expenses of the underlying funds. Risk-management strategies may not prevent losses, may not perform as intended in all market environments, and may cause the fund to underperform during certain periods, including rapidly rising markets. Asset allocation and diversification do not guarantee a profit or protect against loss. Investors should carefully consider the fund’s investment objectives, risks, charges, and expenses before investing.

ETF shares are traded on exchanges, and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of a ETFs’ underlying securities. Brokerage commissions will reduce returns.

Benchmark indices provide the standards against which investment performance is measured. The Dow Jones Moderately Aggressive Portfolio Index is a total-returns index that is designed to measure a total portfolio of stocks, bonds, and cash, efficiently allocated and weighted to achieve a targeted risk level of 80% - that is, relative to the risk of an all-stock (100%) portfolio (past 36 months). The weightings are rebalanced monthly. The S&P 500 is a market-capitalization-weighted equity index tracking the performance of the 500 largest U.S.-traded stocks, which represent about 80% of all U.S incorporated equity securities. Benchmark indices are neither managed, nor accessible through direct investment, nor subject to advisory fees, transaction costs or other expenses.

NAV Return represents the closing price of underlying securities. Market Return is calculated using the price which investors buy and sell ETF shares in the market.

The Beacon funds are distributed by Northern Lights Distributors, LLC.. Beacon Capital Management & Sammons® Financial Group, Inc. are independent of and not affiliated with Northern Lights Distributors, LLC