Investors should carefully consider the investment objectives, risks, charges and expenses of the
fund before investing. The prospectus contains this and other information about the fund, and it should be
read carefully before investing. Investors may obtain a copy of the prospectus by calling 877-865-9549,
emailing info@fairleadstrategies.com or it may be downloaded here.
The fund is distributed by Northern Lights Distributors, LLC (Member FINRA). Northern Lights
Distributors, LLC, Fairlead Strategies, LLC, and Cary Street Partners Asset Management LLC are separate and
unaffiliated. Cary Street Partners is the trade name used by Cary Street Partners LLC, Member FINRA/SIPC; Cary Street Partners Investment Advisory
LLC and Cary Street Partners Asset Management LLC, registered investment advisers. Cary Street Partners is the
Adviser for the Fairlead Tactical Sector ETF (TACK). For full disclaimers and disclosures, please view Disclaimers and Disclosures.
Fairlead Strategies, LLC is a registered investment adviser and the Subadviser for TACK. For access to the
full disclaimers and disclosures for Fairlead Strategies, including their policy regarding editor securities
holdings, go to https://www.fairleadstrategies.com/disclaimers-and-disclosures or
email info@fairleadstrategies.com.
Important Risk Information:
Investing involves risk, including loss of principal. There is no guarantee the fund will achieve its
investment objective. As an actively-managed ETF, the fund is subject to management risk. The ability of the
Adviser to successfully implement the fund's investment strategies will significantly influence the fund's
performance. The success of the fund will depend in part upon the skill and expertise of certain key personnel
of the Adviser, and there can be no assurance that any such personnel will be successful. Neither the Adviser
nor the Subadviser has previously served as an adviser or a subadviser to a mutual fund or exchange-traded
fund. As a result, there is no long-term track record against which an investor may judge the Adviser and/or
Subadviser.
The Adviser may allocate more of the Fund’s investments to a particular sector or sectors in the market,
including the following sectors: Communications Services, Consumer Discretionary, Consumer Staples, Energy,
Financials, Health Care, Industrials, Materials, Real Estate, Technology, and Utilities. If the Fund invests a
significant portion of its total assets in a certain sector or certain sectors, its investment portfolio will
be more susceptible to the financial, economic, business, and political developments that affect those sectors
than a fund that is more diversified.
Fixed Income Securities Risk. During a “risk-off” defensive market environment, the Fund
will focus its investments to a greater degree in short-term and long-term treasury ETFs (SPTS and SPTL). Such
investments will be subject to the following risks.
Income Risk. The Fund’s income may decline if interest rates fall. This decline in income
can occur because the Fund may subsequently invest in lower yielding bonds as bonds in its portfolio mature,
are near maturity or are called, bonds in the Underlying Index are substituted, or the Fund otherwise needs to
purchase additional bonds.
Interest Rate Risk. During periods of very low or negative interest rates, the Fund may be
unable to maintain positive returns or pay dividends to Fund shareholders. Very low or negative interest rates
may magnify interest rate risk. Changing interest rates, including rates that fall below zero, may have
unpredictable effects on markets, result in heightened market volatility and detract from the Fund’s
performance to the extent the Fund is exposed to such interest rates. Additionally, under certain market
conditions in which interest rates are low and the market prices for portfolio securities have increased, the
Fund may have a very low or even negative yield. A low or negative yield would cause the Fund to lose money in
certain conditions and over certain time periods. An increase in interest rates will generally cause the value
of securities held by the Fund to decline, may lead to heightened volatility in the fixed-income markets and
may adversely affect the liquidity of certain fixed-income investments, including those held by the Fund. The
historically low interest rate environment heightens the risks associated with rising interest rates.
U.S. Treasury Obligations Risk. U.S. Treasury obligations may differ from other securities
in their interest rates, maturities, times of issuance and other characteristics and may provide relatively
lower returns than those of other securities. Similar to other issuers, changes to the financial condition or
credit rating of the U.S. government may cause the value of the Fund’s U.S. Treasury obligations to decline.
Gold ETF Risks. During a “risk-off” defensive market environment, the Fund will focus its
investments to a greater degree in the SPDR® Gold Trust (GLD). Such investments will be subject to the
following risks:
Risks Related to Gold. Companies involved in commodity-related businesses such as gold may
be subject to greater volatility than investments in companies involved in more traditional businesses. This
is because the value of companies in commodity-related businesses may be affected by overall market movements
and other factors affecting the value of a particular industry or commodity, such as weather, disease,
embargoes, or political and regulatory developments. The prices of commodities such as gold may move in
different directions than investments in traditional equity and debt securities when the value of those
traditional securities is declining due to adverse economic conditions. As an example, during periods of
rising inflation, debt securities have historically tended to decline in value due to the general increase in
the prevailing interest rates. Conversely, during those same periods, the prices of certain commodities, such
as oil, gold and other metals, have historically tended to increase. However, there can be no guarantee of
such performance in the future.
The possibility of large-scale distress sales of gold in times of crisis may have a negative impact on the
price of gold and adversely affect the Fund’s investment in the GLD Shares. In addition, substantial sales of
gold by the official sector, consisting of central banks, other governmental agencies and international
organizations that buy, sell and hold gold as part of their reserve assets could adversely affect the Fund’s
investment in GLD Shares. The price of gold may also be affected by the sale of gold by exchange traded funds
or other exchange traded vehicles tracking gold markets.
The value of the gold held by GLD is determined using the LBMA (London Bullion Market Association) Gold Price
PM, which is based on the LBMA daily afternoon auction. Potential discrepancies in the calculation of the LBMA
Gold Price PM, as well as any future changes to the LBMA Gold Price PM, could impact the value of the gold
held by GLD and could have an adverse effect on the value of the Fund’s investments in GLD.
Risks Related to GLD Shares. GLD shares trade like stocks, are subject to investment risk
and will fluctuate in market value. The value of GLD shares relates directly to the value of the gold held by
GLD (less its expenses), and fluctuations in the price of gold could materially and adversely affect the
Fund’s investment in the GLD shares. The price received upon the sale of the shares, which trade at market
price, may be more or less than the value of the gold represented by them. GLD does not generate any income,
and as GLD regularly sells gold to pay for its ongoing expenses, the amount of gold represented by each Share
will decline over time to that extent.
Commodities and commodity-index linked securities in which GLD invests may be affected by changes in overall
market movements, changes in interest rates, and other factors such as weather, disease, embargoes, or
political and regulatory developments, as well as trading activity of speculators and arbitrageurs in the
underlying commodities. GLD is a passive investment vehicle. This means that the value of the GLD Shares held
by the Fund may be adversely affected by GLD losses that might have been avoided if GLD had been actively
managed GLD shares may trade at a price which is at, above or below GLD’s calculated NAV per share, and any
discount or premium in the trading price relative to the NAV per share may widen as a result of non-concurrent
trading hours between the COMEX and NYSE Arca.
GLD is not an investment company registered under the Investment Company Act of 1940 (the “1940 Act”) and is
not subject to regulation under the Commodity Exchange Act of 1936 (the “CEA”). As a result, shareholders of
GLD do not have the protections associated with ownership of shares in an investment company registered under
the 1940 Act or the protections afforded by the CEA. Shareholders of GLD, including the Fund, do not have the
rights enjoyed by investors in certain other vehicles. Because they own interests in an investment trust, GLD
shareholders have none of the statutory rights normally associated with the ownership of shares of a
corporation (including, for example, the right to bring “oppression” or “derivative” actions). In addition,
the Shares have limited voting and distribution rights (for example, Shareholders do not have the right to
elect directors and will not receive dividends). GLD may be required to terminate and liquidate at a time that
is disadvantageous to Shareholders. The liquidity of the GLD shares may be adversely affected by the
withdrawal of Authorized Participants. The lack of an active trading market or a halt in trading of the GLD
shares may result in losses on investment at the time of disposition of the Shares. Redemption orders for GLD
may be subject to postponement, suspension or rejection by GLD’s Trustee under certain circumstances.
An investment in GLD shares may be adversely affected by competition from other methods of investing in gold.
GLD competes with other financial vehicles, including traditional debt and equity securities issued by
companies in the gold industry and other securities backed by or linked to gold, direct investments in gold
and investment vehicles similar GLD. Market and financial conditions, and other conditions beyond the GLDs
control, may make it more attractive to invest in other financial vehicles or to invest in gold directly,
which could limit the market for the Shares and reduce the liquidity of the Shares.
