Diversification Why Diversify Through Managed Futures? As investors seek ways to further diversify their portfolios, managed futures may offer a variety of benefits. Several attributes of managed futures may offer diversification and risk management benefits to a well structured investment portfolio. Historically managed futures have provided an uncorrelated investment solution to the global equity markets, and low correlation to fixed income markets, particularly during periods of extreme volatility. Additionally, managed futures had low correlation to alternative investments including hedge funds, real estate investments, private equity and real assets. Managed futures are typically considered a separate and distinct asset class in asset allocation models due to their uncorrelated attributes vs. other asset classes. In addition to the potential benefits of the managed futures correlation profile in relation to other asset classes, managed futures offer a wide variety of investment opportunities. Futures and commodities managers, technically known as Commodity Trading Advisors (CTAs), typically utilize a wide variety of liquid markets and investment vehicles to provide diversification of opportunity and risk. This opportunity to invest both long and short in a wide variety of global markets or across a number of different trading strategies CORRELATION Historically uncorrelated to global equity markets. Historically low correlation to fixed income and alternative investments.
DIVERSIFICATION Access to more than 150 global markets worldwide. Investing in commodities such as metals, agriculture and energy, as well as financials including foreign currencies, interest rates and stock indices.
and time periods is what differentiates managed futures. This diversification also may explain why historically, investing in managed futures has been shown to potentially reduce volatility and increase total return in a diversified portfolio over both short and long-term periods.
Managed futures offer a wide variety of markets traded and strategies employed, providing a significant potential source of diversification to investors. Coupled with the proven ability to perform in both up and down and down markets, managed futures may potentially reduce volatility and increase total return over time.
LIQUIDITY Managed futures exist across a wide range of highly liquid and transparent markets. Commodity Trading Advisors (CTAs) may trade intraday, or over longer term periods.
OPPORTUNITY Managers can invest across a wide variety of markets, strategies, investment vehicles and time periods, investing long or short to take advantage of changing market conditions.
Long Position refers to the buying of a security, commodity, or currency, with the expectation that the asset will rise in value. Short Position refers to the sale of a borrowed security, commodity or currency, with the expectation that the asset will fall in value. Correlation is a measure of the degree to which the value of different investment types move in the same direction. Mutual Funds involve risk including the possible loss of principal. Investing in the commodities markets may subject the Fund to greater volatility than investments in traditional securities. There is a risk that issuers and counterparties will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund. Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. In general, the price of a fixed income security falls when interest rates rise. Non-diversification risk, as the Funds are more vulnerable to events affecting a single issuer. The Fund may focus its investments in securities of a particular sector. Economic, legislative or regulatory developments may occur that significantly affect the entire sector. This may cause the Fund’s net asset value to fluctuate more than that of a fund that does not focus in a particular sector. Short positions may be considered speculative transactions and involve special risks, including greater reliance on the ability to accurately anticipate the future value of a security or instrument.
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Historical Impact Managed Futures: Trying To Stay Ahead Of The Curve Managed Futures May Decrease Risk & Increase Return Over Time. Managed futures investing has historically been shown to decrease risk and increase return over time. This chart demonstrates the impact of adding managed futures, in 10% increments, to a model portfolio of US Stocks and Bonds Indices from January 1, 2000 through June 30, 2014. 7.00%
6.50% 90% Managed Futures | 6% US Stocks | 4% US Bonds 80% Managed Futures | 12% US Stocks | 8% US Bonds
ANNUALIZED RETURN
6.00%
70% Managed Futures | 18% US Stocks | 12% US Bonds 60% Managed Futures | 24% US Stocks | 16% US Bonds
5.50%
50% Managed Futures | 30% US Stocks | 20% US Bonds 40% Managed Futures | 36% US Stocks | 24% US Bonds
5.00%
30% Managed Futures | 42% US Stocks | 28% US Bonds
4.50%
20% Managed Futures | 48% US Stocks | 32% US Bonds 10% Managed Futures | 54% US Stocks | 36% US Bonds
4.00% 60% US Stocks | 40% US Bonds
3.50%
3.00%
4%
5%
6%
7%
8%
9%
10%
ANNUALIZED STANDARD DEVIATION PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. US Stocks are represented by the S&P 500 Index; US Bonds are represented by the Barclays Capital US Aggregate Bond Index; Managed Futures are represented by the CASAM/CISDM CTA Equal Weighted Index through 06/30/2014. The indices shown are for illustrative purposes only and are not reflective of any actual investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. There is no guarantee that any investment will achieve its stated objectives. Source: Princeton Fund Advisors.
The Case for Managed Futures
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Growth Managed Futures: Increasing Market Share With a wide variety of markets traded and strategies employed, and the ability to perform in both up and down markets, it is no surprise that market growth has driven assets from only a few billion in the late 1980’s to more than $320B by 06/30/2014. The majority of this growth has occurred in the last decade as managed futures continue to gain market share.
YTD $320B
GROWTH OF MANAGED FUTURES $350
$300
$250
$200
$150
$100
$50
$0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Through 06/30/14 Source: Barclay Hedge
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Performance What Has Driven the Growth of Managed Futures? Several factors may be at play. One consideration is the performance over the past 30 years of managed futures vs. the US Equity markets during some of the market’s best and worst years:
Managed Futures vs. S&P 500 in 5 Best S&P Years*
40% 35% 30% 25% 20% 15% 10% 5% 0%
1995
1997 S&P 500
30%
2013
1989
1998
Managed Futures
Managed Futures vs. S&P 500 in 5 Worst S&P Years*
20% 10% 0% -10% -20% -30% -40% 2008
2002 S&P 500
2000
2001
1990
Managed Futures
*Over the past 30 years. Sources: Bloomberg, PerTrac. Index data has been provided by Princeton Fund Advisors relying on data received from Bloomberg & PerTrac. Princeton Fund Advisors has not independently verified this information and cannot guarantee its accuracy or completeness. The indices shown are for illustrative purposes only and are not reflective of any actual investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. CASAM/CISDM CTA Equal Weighted Index through 06/30/2014.
The Case for Managed Futures
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Separate Asset Class Understanding Managed Futures Managed futures are a separate asset class based on the wide scope of markets, strategies, time frames and instruments represented. When investors think of managed futures, they typically think about commodities investments. Commodities are an important component of managed futures investing. However, the diversification of markets that fall within the managed futures category is much broader than this. Managed futures fall into a number of key categories including: commodities, currencies, global fixed income, global equity indices. Investments in managed futures may offer the opportunity for global market diversification with access to investments in
150+ MARKET OPPORTUNITIES Commodities, Currencies, Global Fixed Income, Global Equity Indices
the Americas, Europe, Asia and Australasia. Managed futures managers utilize a wide variety of instruments to gain market exposure including: futures, options, and interbank currencies. Managed futures also offer the opportunity to invest over a wide variety of time frames, from intraday to three years representing the majority of trade time frames, and to take both long and short positions depending on the manager’s point of view.
GEOGRAPHIC DIVERSIFICATION Americas, Europe, Asia, Australasia
TIME FRAME DIVERSIFICATION Intraday – 3 years or longer
INSTRUMENT DIVERSIFICATION Futures, Options, Interbank Currencies
POSITION DIVERSIFICATION Long and short positions can be taken with equal ease
Long Position refers to the buying of a security, commodity, or currency, with the expectation that the asset will rise in value. Short Position refers to the sale of a borrowed security, commodity or currency, with the expectation that the asset will fall in value. Foreign common stocks and currency strategies will subject the Fund to currency trading risks that include market risk, credit risk and country risk. Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. Nationalization, expropriation or confiscatory taxation, currency blockage, market disruption, political changes, security suspensions, potential restrictions on the flow of international capital, or diplomatic developments could adversely affect the Fund’s investments in certain securities. Using derivatives to increase the Fund’s combined long and short exposure creates leverage, which can magnify the Fund’s potential for gain or loss.
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Global Markets Opportunities In More Than 150 Global Markets Managed futures investing offers access to a wide variety of markets generally split into two categories, commodities and financial futures: COMMODITIES
AGRICULTURE, ENERGY, METALS
FINANCIAL FUTURES
CURRENCIES, INTEREST RATES, STOCK INDICES
There are more than 150 global markets traded within the managed futures investment category. A sample of these markets is provided here, across a series of key categories: COMMODITIES
FINANCIAL FUTURES
Agricultural and Industrial Commodities
Energy Complex
Industrial and Precious Metals
Currencies: All industrialized nations and the major emerging economies
Sovereign Fixed Income: North America, Europe, Asia and Australasia
Global Stock Markets: North America, Europe, Asia & Australia
AGRICULTURAL COMMODITIES:
Crude Oil
Australian Dollar (AUD)
AUD SPI 200
Brazilian Real (BRL)
Australian 90-day B-bills
GRAINS Barley Corn Canola Oil Oats Wheat Palm Oil Soybeans Soybean Oil Soybean Meal Rough Rice
Light Crude
INDUSTRIAL METALS Aluminum Copper Lead Nickel Tin Zinc
British Pound (GBP)
Australian 3yr Notes
DAX
Canadian Dollar (CAD)
Australian 10yr Notes
DJ EuroStoxx 50
Czech Koruna (CZK)
CAD 3M
DJIA
Euro (EUR)
CAD 10yr
EURO STOXX
Hong Kong Dollar (HKD)
Euro Bund
FTSE
Hungarian Forint (HUF)
Euro BOBL
Hang Seng
Indian Rupee (INR)
Euro Schatz
NASDAZ
Indonesian Rupiah (IDR)
Euribor 3M
Nikkei 225
Israeli Shekel (ILS)
Eurodollar
Russell 2000
Japanese Yen (JPY)
EuroSwiss 3M
S&P/ASX 200
South Korean Won (KRW)
EuroYen
S&P 500
Mexican Peso (MXN)
Euro Swapnote 5yr
S&P Canada 60
New Zealand Dollar (NZD)
Euro Swapnote 10yr
S&P MidCap 400
Norwegian Krone (NOK)
JGB
SGX Taiwan MSCI
Polish Zloty (PLN)
KFE 3Yr Bond
TOPIX TSE
Russian Ruble (RUR)
LIBOR 1M
Singapore Dollar (SGD)
US T-Bond
South African Rand (ZAR)
US 10yr T-Notes
Sweden Krona (SEK)
US 5yr T-Notes
Swiss Franc (CHF)
US 2Yr T-Notes
New Taiwanese Dollar (TWD)
US 90-Day Bank Bills
Thai Baht (THB)
30-Day Fed Funds
U.S. Dollar (USD)
UK Gilt
MEATS Lean Hogs Live Cattle Feeder Cattle SOFTS Cocoa Coffee Fluid Milk Frozen Orange Juice Sugar INDUSTRIAL COMMODITIES Lumber Rubber Cotton
Brent Crude Heating Oil Gas Oil Natural Gas Blendstock Gasoline Unleaded Gasoline Carbon Tax Credits Electricity
PRECIOUS METALS Gold Silver Platinum Palladium
CAC-40
Short Sterling
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Trading Managed Futures Investment Strategies Managed futures trading strategies are as varied as the markets that can be traded. Below is a sampling of the general categories of managed futures trading strategies. However, within each category numerous permutations exist as managed futures managers are constantly seeking ways to exploit market opportunities and to minimize investment risk.
Building Blocks To Effective Diversification INTERMEDIATE TREND FOLLOWING
FUNDAMENTAL
SHORT-TERM TRADING
Based upon an analysis of the economics of supply and demand factors which affect the commodity and financial markets, seeking to capitalize on both short-term and longterm price movements.
Relies on both algorithmic, discretionary and chart-based methodologies with the goal of taking advantage of shortterm price movements.
Utilizes algorithmic, support/ resistance and other rulesbased methodologies to react to and attempt to predict price trends over a 3 – 6 month time frame.
GLOBAL MACRO
LONG-TERM TREND FOLLOWING
COUNTER-TREND TRADING
Employs fundamental analysis to isolate opportunities of a global macro nature that can be expressed in one or more markets.
Employs algorithmic strategies seeking to capitalize on the longer-term cyclical nature of both the commodity and financial markets.
Seeks to identify short-term opportunities against the major trend of the markets when markets are overextended or in volatile, nondirectional environments.
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ARBITRAGE Identifies, on a systematic and fundamental basis, intra-market, inter-market and time-based, simultaneous long/short opportunities.
TACTICAL TRADING Using either fundamental or technical analysis or a combination of both, with the goal of taking advantage of short-term price disparities.
Performance Managed Futures: Comparison of Returns Historically managed futures provided an uncorrelated investment solution to the global equity and fixed income markets, particularly during periods of extreme volatility. 1 Year Annualized Returns
30.0% 20.0% 15.0%
7.5%
22.0%
20.3%
4.4% Int’l Stocks
10.4%
US Bonds Commodities
3.7%
0.2% -0.6%
2.6% Managed Futures
5 Year Annualized Returns
20.0%
4.9%
-7.5% -15.0%
US Stocks
14.1%
0.0%
10.0% 0.0%
3 Year Annualized Returns
15.0%
US Stocks
Int’l Stocks
US Bonds
Commodities Managed Futures
10 Year Annualized Returns
10.0% 8.0%
15.0%
6.0% 10.0%
16.4%
5.0% 0.0%
4.0%
8.6% 4.9% US Stocks
Int’l Stocks
3.7%
US Bonds Commodities
2.5% Managed Futures
15 Year Annualized Returns
10.0%
4.0%
4.9%
2.0% 0.0%
0.1% US Stocks
Int’l Stocks
US Bonds Commodities
Managed Futures
20 Year Annualized Returns
8.0%
6.0%
6.0%
5.6%
4.0%
0.0%
5.6%
10.0%
8.0%
2.0%
5.7%
2.4%
2.1%
US Stocks
Int’l Stocks
5.4%
6.0%
7.7%
4.0% 2.0%
US Bonds Commodities
Managed Futures
0.0%
3.2% US Stocks
7.1%
6.2%
Int’l Stocks
4.0% US Bonds Commodities Managed Futures Through 06/30/2014
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. US Stocks are represented by the S&P 500 Index; International Stocks are represented by the MSCI EAFE Index; US Bonds are represented by the Barclays Capital US Aggregate Bond Index; Commodities are represented by the S&P 500 GSCI Index; Managed Futures are represented by the CASAM/CISDM CTA Equal Weighted Index through 06/30/2014. The indices shown are for illustrative purposes only and are not reflective of any actual investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. There is no guarantee that any investment will achieve its stated objectives. Source: Princeton Fund Advisors.
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Correlation Managed Futures Correlation to Other Asset Classes Managed futures have historically been uncorrelated to other asset classes. The chart below shows the correlation to the other major traditional asset classes including US Stocks, International Stocks, Bonds and Commodities over periods ranging from 1 to 20 years: ONE YEAR Managed Futures U.S. Stocks International Stocks Bonds Commodities
Managed Futures 1.00 0.70 0.41 -0.05 0.24
U.S. Stocks 0.70 1.00 0.84 -0.05 0.15
International Stocks 0.41 0.84 1.00 0.09 0.11
Bonds -0.05 -0.05 0.09 1.00 -0.48
Commodities 0.24 0.15 0.11 -0.48 1.00
THREE YEAR Managed Futures U.S. Stocks International Stocks Bonds Commodities
Managed Futures 1.00 -0.01 0.01 0.41 0.04
U.S. Stocks -0.01 1.00 0.88 -0.26 0.65
International Stocks 0.01 0.88 1.00 -0.11 0.64
Bonds 0.41 -0.26 -0.11 1.00 -0.19
Commodities 0.04 0.65 0.64 -0.19 1.00
FIVE YEAR Managed Futures U.S. Stocks International Stocks Bonds Commodities
Managed Futures 1.00 0.28 0.29 0.21 0.28
U.S. Stocks 0.28 1.00 0.88 -0.22 0.68
International Stocks 0.29 0.88 1.00 -0.09 0.66
Bonds 0.21 -0.22 -0.09 1.00 -0.25
Commodities 0.28 0.68 0.66 -0.25 1.00
TEN YEAR Managed Futures U.S. Stocks International Stocks Bonds Commodities
Managed Futures 1.00 0.04 0.14 0.00 0.20
U.S. Stocks 0.04 1.00 0.89 0.02 0.46
International Stocks 0.14 0.89 1.00 0.11 0.54
Bonds 0.00 0.02 0.11 1.00 -0.06
Commodities 0.20 0.46 0.54 -0.06 1.00
FIFTEEN YEAR Managed Futures U.S. Stocks International Stocks Bonds Commodities
Managed Futures 1.00 -0.11 0.03 0.19 0.25
U.S. Stocks -0.11 1.00 0.87 -0.09 0.29
International Stocks 0.03 0.87 1.00 0.01 0.42
Bonds 0.19 -0.09 0.01 1.00 -0.03
Commodities 0.25 0.29 0.42 -0.03 1.00
TWENTY YEAR Managed Futures U.S. Stocks International Stocks Bonds Commodities
Managed Futures 1.00 -0.07 0.02 0.23 0.22
U.S. Stocks -0.07 1.00 0.83 0.01 0.26
International Stocks 0.02 0.83 1.00 0.00 0.37
Bonds 0.23 0.01 0.00 1.00 0.01
Commodities 0.22 0.26 0.37 0.01 1.00 End Date 06/30/14
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Historical Performance of Managed Futures vs. U.S. Stocks in Varied Market Environments Managed futures have historically been uncorrelated to other asset classes and may potentially produce positive returns in both bull and bear markets. This may be due to the diversification in markets, strategies, and the CTAs’ ability to take long or short positions depending on their perspectives and current market conditions. This has the potential to have a positive impact on overall portfolio performance, even during economic downturns and other highly volatile periods.
MANAGED FUTURES PERFORMANCE DURING THE LAST DECADE’S BULL AND BEAR MARKETS Hypothetical Growth of a $1000 Investment on 12/31/99 through 06/30/14
Bear Market 09/00 – 09/02
Bull Market 10/02 – 09/07
Bear Market 10/07 – 02/09
Bull Market 03/09 – ?
$3,000 12%
$2,486 Managed Futures: +148.6%
28%
$2,500 32% $2,000 31%
$1,334 U.S. Stocks: +33.4%
$1,500
$1,000
167%
87%
$500 -45%
-52%
$0 2000
2002
2004
2006
2008
2010
2012
2013
2014
Through 06/30/14
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. US Stocks are represented by the S&P 500 Index; International Stocks are represented by the MSCI EAFE Index; US Bonds are represented by the Barclays Capital US Aggregate Bond Index; Commodities are represented by the S&P 500 GSCI Index; Managed Futures are represented by the CASAM/CISDM CTA Equal Weighted Index through 06/30/2014. The indices shown are for illustrative purposes only and are not reflective of any actual investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. There is no guarantee that any investment will achieve its stated objectives. Source: Princeton Fund Advisors.
The Case for Managed Futures
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Impact Diversifying With Managed Futures Managed futures may provide sufficient uncorrelated diversification to have a positive impact on both the return and risk profile of a long term investment portfolio. Considering an allocation of managed futures to a traditional US Stock and Bond portfolio over the past two decades may have provided the below portfolio attributes.
Ten Years Ending June 30, 2014 Managed Futures Managed Futures
10%
20% US Bonds
US Stocks
US Bonds
40%
60%
40%
US Stocks
US Bonds
US Stocks
50%
40%
40%
Average Annualized Return
5.6%
Average Annualized Return
5.7%
Average Annualized Return
5.7%
Standard Deviation
8.9%
Standard Deviation
7.6%
Standard Deviation
6.3%
From Periods Ending June 30, 2014 1 Year Average Annualized Return
14.8%
1 Year Average Annualized Return
12.8%
1 Year Average Annualized Return
10.9%
5 Year Average Annualized Return
11.9%
5 Year Average Annualized Return
10.5%
5 Year Average Annualized Return
9.1%
10 Year Average Annualized Return
5.6%
10 Year Average Annualized Return
5.7%
10 Year Average Annualized Return
5.7%
20 Year Average Annualized Return
7.4%
20 Year Average Annualized Return
7.4%
20 Year Average Annualized Return
7.3%
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. US Stocks are represented by the S&P 500 Index; US Bonds are represented by the Barclays Capital US Aggregate Bond Index; Managed Futures are represented by the CASAM/CISDM CTA Equal Weighted Index through 06/30/2014. The indices shown are for illustrative purposes only and are not reflective of any actual investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. There is no guarantee that any investment will achieve its stated objectives. Source: Princeton Fund Advisors.
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Terms Managed Futures Terms Index returns have been provided by Princeton Fund Advisors relying on data received from outside sources. Princeton Fund Advisors has not independently verified this information, and cannot guarantee its accuracy or completeness. Definitions of the indexes and related definitions used in this presentation are as follows. Index performance is not indicative of the performance of the Princeton Futures Strategy Fund. Annualized Return is a rate of return that, if achieved annually, would have produced the same cumulative return if the performance had been constant over the entire time period. Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of the observations from their sample mean. Standard Deviation is used as an estimate of risk since it measures how wide the range of returns typically is. The wider the typical range of returns, the higher standard deviation of returns, and the higher the portfolio risk. Maximum Drawdown is defined as the percentage decline from the highest account value to the lowest account value over a specified period of time. Correlation is a measure that illustrates the extent to which two investments or securities move in relation to each other. Two investments or securities are positively correlated if positive changes of one are likely to be associated with positive changes of the other. They are negatively correlated if positive changes of one are likely to be associated with negative changes of the other. The CASAM/CISDM CTA Index represents an asset-weighted performance index of commodity trading advisors and commodity pool operators in the CASAM CISDM Hedge Fund/CTA Database. The MSCI World Index is an unmanaged index commonly used as a benchmark to measure global manager performance and characteristics. The index’s performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index.
The S&P 500 Index is an unmanaged index commonly used as a benchmark to measure large cap core stock performance and characteristics. The index’s performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index. The MSCI EAFE Index is an unmanaged index commonly used as a benchmark to measure international manager performance and characteristics. The index’s performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index. The Barclay Capital U.S. Aggregate Bond Index is a broadbased index comprised of government, corporate, mortgage and assetbacked issues rated investment grade or higher. The index’s performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index. The S&P 500 GSCI Index is an unmanaged index commonly used as a benchmark to measure the performance of the commodity markets. The index’s performance does not reflect the deduction of transaction costs, management fees, or other costs which would reduce returns. References to market or composite indexes, benchmarks or other measures of relative market performance (indexes) over a specified period of time are provided for your information only and do not imply that a portfolio will achieve similar returns, volatility or other results. An investor cannot invest directly in the index.
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Disclosures
Investors should carefully consider the investment objectives, risks, charges and expenses of the Princeton Futures Strategy Fund. This and other important information about the Fund is contained in the Prospectus, which can be obtained by contacting your financial advisor, or by calling 1.888.868.9501. The Prospectus should be read carefully before investing. The Princeton Futures Strategy Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Princeton Fund Advisors, LLC and Northern Lights Distributors, LLC are not affiliated. Underlying Funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in an Underlying Fund and may be higher than other mutual funds that invest directly in stocks and bonds. The Subsidiary will not be registered under the Investment Company Act of 1940 (“1940 Act”) and, unless otherwise noted in the Prospectus, will not be subject to all of the investor protections of the 1940 Act.
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The Case for Managed Futures
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