guide to multi-strategy alternative fund (mulax)

GUIDE TO MULTI-STRATEGY ALTERNATIVE FUND (MULAX)

2 888.524.9441 | altegris.com/mutualfunds

Altegris Multi-Strategy Alternative Fund

Multiple Alternatives. One Fund. A flexible, all-encompassing alternatives mutual fund that allocates to four core hedge fund investment strategies in a single fund. The Fund provides access to over 20 experienced alternative managers with the goal of delivering the best expression of a diversified alternatives portfolio, all with low to moderate correlation between alternative strategies and traditional asset classes.

The Fund is subject to various risks including, but not limited to, alternative strategies risk, capital raising risk, commodity risk, convertible security risk, credit default swap risk, credit risk, emerging markets risk, equity market risk, exchange-traded funds risk, fixed income and interest rate risk, foreign currency risk, foreign investment and exchange risk, fund of funds risk, high yield or junk bond risk, issuer-specific risk, leverage risk, limited history of operations risk, liquidity risk, management risk, market risk, maturity and prepayment risk, mortgage-backed and asset-backed risk, non-diversification risk, preferred stock risk, real estate risk, short position risk, small and medium capitalization company credit risk, structured notes risk, taxation risk, other investment companies risk, underlying pools risks, wholly-owned subsidiary risk. There is no guarantee that any investment product will achieve its objectives, generate profits or avoid losses.

Turnkey solution for a diversified alternative investment allocation

Turnkey Solution

Potential to generate returns across various market environments

Market Direction Agnostic

Experienced portfolio management team, with a research-driven strategic and tactical asset allocation process

Alternatives Experts

Multi-strategy and multi-manager approach derived from methodical manager selection, coupled with rigorous ongoing due diligence

Rigorous Research Approach

REASONS TO INVEST | Exposure to the potential key benefits of the Fund includes:

TRUSTED ALTERNATIVES. INTELLIGENT INVESTING.® 3

Multi-Strategy Approach

Altegris provides a multi-strategy alternative investment portfolio that maintains exposure to four core alternative strategies with varying risk/return characteristics according to strategic and tactical allocation targets. In addition to the four core alternative strategies, the Fund is able to seek discretionary opportunities through other alternative investments.

› Portfolio managers adhere to a strategic allocation range for each strategy and discretionary opportunity portfolio › Tactical allocation changes permit opportunistic adjustments in response to current market environments › Underlying manager and fund allocations are examined continuously and are formally re-evaluated at least quarterly

ALTERNATIVE STRATEGY TARGET ALLOCATIONS | As of September 30, 2013

The allocations shown above reflect the expected target alternative allocations as of September 30, 2013 to strategies selected by Altegris Advisors for the Altegris Multi-Strategy Alternative Fund. The Fund’s access to strategies and the percentage allocations to the specific alternative strategies listed above are presented to illustrate examples of the diversity of strategies accessed by the Fund through its Fund of Funds and Directly Traded portfolios, but may not be representative of the Fund’s past, or its future, access and exposure to alternative strategies. It should not be considered a recommendation or investment advice. There is no guarantee that any investment product will achieve its objectives, generate profits or avoid losses.

Long is buying an asset/security that gives partial ownership to the buyer of the position. Long positions profit from an increase in price. Short means selling an asset/security that may have been borrowed from a third party with the intention of buying it back at a later date. Short positions profit from a decline in price. If a short position increases in price, the potential loss on an uncovered short is unlimited.

Trend-following is a core managed futures strategy that generally seeks to profit from the continuation of medium to long-term directional price moves in a market. Specialized trading programs generally seek to capitalize on short-term market fluctuations often using trend or counter-trend strategies with a shorter time horizon. For example, being positioned long after market prices have moved higher for a period of time or positioned short after prices have moved lower for a period of time.

17.5%Managed Futures

20%Global Macro

42.5%Long/Short Equity

20%Long/Short Fixed Income

The Fund intends to follow a flexible allocation strategy that invests across broad alternative strategies.

Strategy may be invested in long or short positions in equity securities based upon sector, style, and/or geographic region.

Strategy may be invested in long or short positions in a wide variety of domestic and foreign fixed income securities of any credit quality or maturity.

Opportunistic strategy which takes a top-down approach using fundamental macroeconomic data to identify price anomalies, mispriced assets, and major shifts in economic patterns.

Primarily systematic trading strategy using models, ranging from trend-following to special-ized, that react to price move-ments across various global markets.


Strategic and Tactical Asset Allocation

Strategic Asset Allocation | Allocation exposure ranges to each core alternative strategy are determined by quantitative and qualitative methodology.

› Portfolio optimization tools incorporate return, risk and strategy correlations based on historical performance

› Broad strategy constraints (maximum and minimum allocation ranges) established to ensure strategy representation and portfolio diversification

Tactical Asset Allocation | Specific allocations within the strategic exposure ranges for each core alternative strategy are based on current investment opportunities and economic landscape. Technical and fundamental drivers evaluated for each core alternative investment strategy include but are not limited to:

› Long/Short Equity: Dispersion and correlation among individual stocks, valuation metrics (P/E, price to book, etc.), equity risk premium

› Long/Short Fixed Income: Default rates, credit spreads, monetary policy expectations

› Global Macro: Market volatility and uncertainty, interest rate differentials, geopolitical environment

› Managed Futures: Market volatility and uncertainty, cross asset class correlations, technical price factors

STRATEGY ALLOCATION RANGES

* For illustrative purposes only; does not represent actual tactical allocations. The allocations shown above reflect current strategic alternative allocation ranges as of September 30, 2013 to strategies selected by Altegris Advisors for the Altegris Multi-Strategy Alternative Fund. The Fund’s access to strategies and the percentage allocations to the specific alternative strategies listed above are presented to illustrate examples of the diversity of strategies accessed by the Fund through its Fund of Funds and Directly Traded portfolios, but may not be representative of the Fund’s past, or its future, access and exposure to alternative strategies. It should not be considered a recommendation or investment advice. There is no guarantee that any investment product will achieve its objectives, generate profits or avoid losses.

Long/Short Equity 25% 45%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Long/Short Fixed Income 15% 35%

Managed Futures 25%10%

Global Macro 30%15%

Tactical Allocation*

Strategic Allocation Bands


Long/Short Equity Managers

The Altegris Multi-Strategy Alternative Fund provides access to what we believe are premier long/short equity investment managers in an actively managed mutual fund.

ManagerTarget Fund Allocation Sub-strategy Founded

Manager AUM*

Visium Asset Management 12.8% Diversified 2005 $4.8 Billion

Chilton Investment Company 8.5% Diversified 1992 $3.8 Billion1

Harvest Capital Strategies 8.5% Financials 1999 $758 Million2

Harvest Capital Strategies 6.4% Agriculture/Consumer 1999 $758 Million2

OMT Capital Management 6.4% Small-capitalization 1998 $333 Million

*Manager AUM as of June 2013. 1Manager AUM as of May 2013. 2Figure represents AUM in hedge fund assets. The investment sub-strategies and allocations are presented to illustrate examples of Fund allocations and the diversity of areas in which the Fund may invest through its Fund of Funds and Directly Traded Portfolios, and may not be representative of the Fund’s current or future investments. It should not be considered a recommendation or investment advice.

STRATEGY ALLOCATION

Harvest (Agriculture/Consumer)

OMT

Harvest (Financials)

Visium

LONG/SHORT EQUITY MANAGERS

Chilton


Long/Short Fixed Income Manager

The Altegris Multi-Strategy Alternative Fund provides access to what we believe are premier long/short fixed income investment managers in an actively managed mutual fund.

ManagerTarget Fund Allocation Sub-strategy Founded

Manager AUM*

RockView Management 10% Fundamental Long/Short Credit 2004 $109 Million

Premium Point Investments 10% Fundamental Long/Short MBS 2008 $2.0 Billion

* Manager AUM as of June 2013. The investment sub-strategies and allocations are presented to illustrate examples of Fund allocations and the diversity of areas in which the Fund may invest through its Fund of Funds and Directly Traded Portfolios, and may not be representative of the Fund’s current or future investments. It should not be considered a recommendation or investment advice.

The Fund to be accessed for exposure to this sub-strategy is a new mutual fund and has a limited history of operations. It may not be able to immediately and fully allocate assets among portfolio investments as per stated investment objectives until reaching critical mass in terms of assets under management. Such delays in becoming fully invested could negatively impact performance.

RockView

STRATEGY ALLOCATION LONG/SHORT FIXED INCOME MANAGER

Premium Point


Global Macro Managers

The Altegris Multi-Strategy Alternative Fund provides access to what we believe are premier global macro investment managers in an actively managed mutual fund.

ManagerTarget Fund Exposure Sub-strategy Founded

Manager AUM*

Denali Asset Management 4.0% Discretionary Multi-Asset Class 1994 $777 Million

Brevan Howard 2.7% Emerging Markets Local Fixed Income Strategy 2002 $39.7 Billion

Willowbridge Associates 2.7% Discretionary Multi-Asset Class 1988 $1.9 Billion1

300 North Capital 2.2% Discretionary Multi-Asset Class 20082 $600 Million

Krom River Investment Management 2.2% Discretionary Commodities 2006 $430 Million

QMS Capital Management 1.8% Quantitative Multi-Asset Class 2008 $330 Million3

Civic Capital Advisors 1.8% Discretionary Foreign Exchange 2010 $609 Million4

Ortus Capital Management 1.3% Quantitative Foreign Exchange 2003 $1.1 Billion

P/E Investments 1.3% Quantitative Foreign Exchange 1995 $3.3 Billion

*Manager AUM as of June 2013. 1AUM includes notional and proprietary funds as of May 2013. 2300 North Capital evolved from a predecessor firm founded in 1951. 3Manager AUM as of August 2013. 4Manager AUM as of October 1, 2013.

The Fund’s access to managers and the percentage exposures to the specific sub-strategies listed above are presented to illustrate examples of the diversity of global macro managers and programs accessed by the Fund through its Fund of Funds or Directly Traded Portfolios, but may not be representative of the Fund’s past, or its future, access and exposure to global macro managers, sub-strategies and programs. It should not be considered a recommendation or investment advice.

Brevan Howard

Ortus

Krom River

Denali

STRATEGY ALLOCATION GLOBAL MACRO MANAGERS

P/E

300 North CapitalWillowbridge

Civic

QMS


Managed Futures Managers

The Altegris Multi-Strategy Alternative Fund provides access to what we believe are premier managed futures investment managers in an actively managed mutual fund.

ManagerTarget Fund Exposure Sub-strategy Founded

Manager AUM*

Winton Capital Management 10.6% Long-Term Diversified Trend Following 1997 $24.8 Billion

ISAM 1.6% Medium-Term Trend Following 2003 $840 Million

Capital Fund Management (CFM) 1.3% Diversified, Specialized Trading 1991 $5.8 Billion

Cantab Capital Partners 1.3% Short-Term, Value and Trend 2006 $5.2 Billion

Quantitative Investment Management (QIM)

1.1% Short-Term Pattern Recognition 2003 $3.4 Billion

Lynx Asset Management AB 1.0% Intermediate-Term Diversified Trend Following 1999 $4.8 Billion

Abraham Trading Company 0.7% Multi-Time Frame Trend and Mean Reversion 1990 $337 Million

* Manager AUM as of June 2013. The Fund’s access to managers and the percentage exposures to the specific sub-strategies listed above are presented to illustrate examples of the diversity of managed futures managers and programs accessed by the Fund through its Fund of Funds or Directly Traded Portfolios, but may not be representative of the Fund’s past, or its future, access and exposure to managed futures managers, sub-strategies and programs. It should not be considered a recommendation or investment advice.

ISAM

LynxAbraham

Cantab

CFMWinton

QIM

STRATEGY ALLOCATION MANAGED FUTURES MANAGERS


ANNUAL FUND OPERATING EXPENSES Expenses that you pay each year as a percentage of the value of your investment

Class A* Class I Class N

Management Fees (1) 0.30% 0.30% 0.30%

Distribution and/or Service (12b-1) Fees 0.25% 0.00% 0.25%

Other Expenses (2) 0.28% 0.28% 0.28%

Acquired Fund Fees and Expenses (3) 1.94% 1.94% 1.94%

Total Annual Fund Operating Expenses 2.77% 2.52% 2.77%

Expense Cap 1.75% 1.50% 1.75%

Altegris Multi-Strategy Alternative Fund Facts

* The maximum sales charge (load) for Class A is 5.75%. Class A share investors may be eligible for a reduction in sales charges.1The Fund will access certain strategies through the purchase of interests in Other Investment Companies advised by the Adviser or an affiliate of the Adviser, and for the portion of Fund assets so invested, the Fund will not be subject to a management fee. The portion of Fund assets not invested in such affiliated Other Investment Companies will be subject to a management fee of 1.50%. However, per the terms of the advisory agreement between the Fund and the Adviser, in no case will the Fund directly pay the Adviser a management fee that exceeds 1.00% of the Fund’s total average daily net assets. The Management Fees reflected above are estimated based on the Adviser’s anticipated amount of Fund assets allocated during the Fund’s initial fiscal year of operation to investments other than shares of Other Investment Companies advised by the Adviser or an affiliate. 2“Other Expenses” include the estimated expenses of the Fund’s consolidated wholly-owned Subsidiary. 3Based on estimated amounts for the current fiscal year “Acquired Fund Fees and Expenses” include the estimated management fees and other expenses attributable to the Fund’s investments in Other Investment Companies, including other mutual funds, exchange traded funds and/or exchange traded notes. However, estimated Acquired Fund Fees and Expenses estimate do not include the costs of the Fund’s or the Subsidiary’s investments in any in underlying commodity pools or other collective investment vehicles that are not investment companies.

The Fund’s adviser has contractually agreed to reduce its fees and to reimburse expenses, at least until April 30, 2014, to ensure that total annual Fund operating expenses after fee waiver and/or reimbursement will not exceed 1.75%, 1.50%, and 1.75% of average daily net assets attributable to Class A, Class I and Class N shares, respectively, subject to possible recoupment in future years. This agreement may be terminated only by the Fund’s Board of Trustees, on 60 days written notice to the adviser.

The Fund will access certain strategies through the purchase of interests in Other Investment Companies advised by the Adviser or an affiliate of the Adviser; for the portion of Fund assets so invested, the Fund will not be subject to a management fee.

OBJECTIVEThe Fund seeks long-term capital appreciation and absolute returns.

FUND ADVISERAltegris Advisors, LLC

SYMBOL & CUSIPClass A: MULAX–66537Y215 Class I: MULIX– 66537Y173 Class N: MULNX– 66537Y165

MINIMUM INITIAL/SUBSEQUENT INVESTMENTClass A: $2,500 / $250 Class I: $1,000,000 / $250 Class N: $5,000 / $250

INCEPTION DATEFebruary 28, 2013

INCOME DISTRIBUTIONAnnual


Investors should carefully consider the investment objectives, risks, charges and expenses of the Altegris Multi-Strategy Alternative Fund. This and other important information about a Fund is contained in the Fund’s Prospectus which can be obtained by calling (888) 524-9441. The Prospectus should be read carefully before investing. Funds are distributed by Northern Lights Distributors, LLC, member FINRA. Altegris Advisors and Northern Lights Distributors, LLC are not affiliated.

MUTUAL FUNDS INVOLVE RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL.

Alternative Strategies pursued by the Fund may be subject to a number of risks either directly or indirectly through its investments in other Investment Companies, the Subsidiary, securities issued by Underlying Pools, and other derivative and investment instruments.

Investing in commodity futures markets subjects the Fund to volatility as commodity futures prices are influenced by unfavorable weather, geologic and environmental factors, regulatory changes and restrictions.

Foreign investments involves risks not typically associated with U.S. investments, including fluctuations in foreign currency values, adverse social and economic developments, less liquidity, greater volatility, less developed or inefficient trading markets, political instability and differing auditing and legal standards. These risks are magnified in emerging markets.

The use of credit default swaps (“CDS”) to transfer credit risk involves potentially heightened counterparty, concentration and exposure risks that may result in losses to the Fund. The use of swaps, options, structured notes or other derivative instruments, directly or indirectly, subjects the Fund to leverage risk, tracking risk and counterparty default risk. Option positions held may expire worthless exposing the Fund to potentially significant losses. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options will cause the Fund to incur additional expenses. In addition, leverage can increase share price volatility and magnify the Fund’s gains or losses.

An investment in common and preferred stocks is susceptible to market risk or the risk of loss due to industry or company news or general economic decline. Preferred stocks and other fixed income securities such as mortgage-or asset-backed bonds, corporate and government bonds, and convertible securities are also subject to interest rate risk. As interest rates rise, the value of fixed income securities will typically fall. In addition, mortgage and real-estate related securities may be more sensitive to overall economic conditions and are susceptible to prepayment risk and higher default rates.

Other fixed income securities and derivatives risks include credit risk, which is the possibility that an issuer will fail to make principal or dividend payments when due. The credit risk, liquidity risk, and potential for default is heightened for lower-quality debt securities, also known as “high-yield” or “ junk” bonds. The value of equity and debt securities of smaller issuers or small and mid-sized companies can be more volatile than those of larger companies due to limited product lines, markets or financial resources.

An ETF may represent a portfolio of securities, or may use derivatives and therefore, reflects the risks and additional expenses of owning the underlying securities. ETNs are subject to the risk that the value of the index may decline sharply or unpredictably, as well as default and liquidity risks.

As a non-diversified fund, the Fund may invest more than 5% of its total assets in the securities of one or more issuers and therefore, performance may be more sensitive to any single economic, business, political or regulatory occurrence than the value of shares of a diversified investment company.

The Other Investment Companies and Underlying Pools may engage in short-selling and short position derivative activities which is considered speculative and involves significant financial risk. Short positions profit from a decline in price so the Fund will incur a loss on a short position if the price increases. The potential for loss in a short position transaction is unlimited.

The Fund also involves taxation risk and regulatory risk by investing in commodities through the Subsidiary, which is a controlled foreign corporation. As such, any income received from its commodities-related investments will be passed through to the Fund as ordinary income, which may be taxed at less favorable rates than capital gains. The Subsidiary will not be registered under the 1940 Act. Changes in applicable foreign and domestic laws could result in the inability of the Fund and/or Subsidiary to operate.

Underlying Funds/Pools in which the Subsidiary invests will pay management fees, brokerage commissions, operating expenses and performance based fees to each manager it retains. As a result, the cost of investing in the Fund may be higher than other mutual funds that invest directly in stocks and bonds. There is no guarantee that any of the trading strategies used by the managers retained by an Underlying Fund/Pool will be profitable or avoid losses.

The Fund is new and has a limited history of operations. There can be no guarantee that adequate capital will be raised in a timely fashion in order for the Fund to become fully invested or achieve the objectives.

Mutual Fund Risk Disclosure


Important Considerations

Alternative investments involve a high degree of risk and can be illiquid due to restrictions on transfer and lack of a secondary trading market. They can be highly leveraged, speculative and volatile, and an investor could lose all or a substantial amount of an investment. Alternative investments may lack transparency as to share price, valuation and portfolio holdings. Complex tax structures often result in delayed tax reporting. Alternative investment managers typically exercise broad investment discretion and may apply similar strategies across multiple investment vehicles, resulting in less diversification. Trading may occur outside the United States which may pose greater risks than trading on U.S. exchanges and in U.S. markets.

There are substantial risks and conflicts of interests associated with managed futures and commodities accounts, and you should only invest risk capital. The success of an investment is dependent upon the ability of a commodity trading advisor (CTA) to identify profitable investment opportunities and successfully trade. The identification of attractive trading opportunities is difficult, requires skill, and involves a significant degree of uncertainty. CTAs have total trading authority, and the use of a single CTA could mean a lack of diversification and higher risk. The high degree of leverage often obtainable in commodity trading can work against you as well as for you, and can lead to large losses as well as gains. Alternative investments may be subject to substantial charges for management and advisory fees. Compared to mutual funds, hedge funds and commodity pools are subject to less regulation and often charge higher fees. It may be necessary for accounts that are subject to these charges to make substantial trading profits in order to avoid depletion or exhaustion of their assets.

Altegris Advisors

Altegris Advisors LLC is a CFTC-registered commodity pool operator, commodity trading advisor, NFA member, and SEC-registered investment adviser that advises alternative strategy mutual funds that may pursue investment returns through a combination of managed futures, global macro, long/short equity, long/short fixed income and/or other investment strategies.

About Altegris

Altegris searches the world to find what we believe are the best alternative investments. Our suite of alternative investment solutions are designed for financial professionals and individuals seeking to improve portfolio diversification.

With one of the leading research and investment groups focused solely on alternatives, Altegris follows a disciplined process for identifying, evaluating, selecting and monitoring investment talent across a spectrum of alternative strategies including managed futures, global macro, long/short equity, event-driven and others.

Veteran experts in the art and science of alternatives, Altegris guides investors through the complex and often opaque universe of alternative investing. Alternatives are in our DNA. Our very name, Altegris, highlights our singular focus on alternatives, the highest standards of integrity, and a process that constantly seeks to minimize investor risk while maximizing potential returns.

The Altegris group of affiliated companies is wholly-owned and controlled by (i) private equity funds managed by Aquiline Capital Partners LLC and its affiliates (“Aquiline”), and by Genstar Capital Management, LLC and its affiliates (“Genstar”), and (ii) certain senior management of Altegris and other affiliates. Established in 2005, Aquiline focuses its investments exclusively in the financial services industry. Established in 1988, Genstar focuses its investment efforts across a variety of industries and sectors, including financial services. The Altegris companies include Altegris Investments, Altegris Advisors, Altegris Funds, and Altegris Clearing Solutions. As of September 30, 2013, Altegris had $2.68 billion in client assets, and provided clearing services to $671 million in institutional assets.


ALTEGRIS ADVISORS888.524.9441www.altegris.com/mutualfunds

Printed October 2013547946_102413 2615-NLD-10/23/2013

guide to multi-strategy alternative fund (mulax)

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