AN ACTIVELY-MANAGED, FLEXIBLE APPROACH to INVESTING
• Investment selections based on mathematical models using predetermined rules, eliminating emotional decisions.
• Adapts to any given market environment.
• Conserves capital when risk is deemed high.
• Invests more aggressively when risk is considered low.

MULTIPLE INVESTMENT TECHNIQUES
• Fundamental proprietary formulas select INDIVIDUAL STOCKS from the monthly financials of thousands of companies over a wide variety of equity market categories.
• Technical systems, which use TREND ANALYSIS , developed over 20 years, determine what combination of asset classes (among equity index funds, bond funds or cash) would provide optimum risk-adjusted returns.

DIVERSIFICATION, RISK REDUCTION, FLEXIBILITY
• Constant monitoring of multiple asset classes, adjusting allocation to suit market conditions.
• Each class may be invested from 0% to 100% at any given time.

ACCESS TO THE FUND MANAGER
The primary portfolio manager is personally available to answer questions and to provide greater detail about the Adaptive Allocation approach to investing.

FIVE-STAR MORNINGSTAR RATED*

FIVE-DIAMOND ATHENAINVEST RATED * *

ADAPTIVE ALLOCATION FUND (AAXCX)
Inception Date: 2/24/2006

Ranked 29th amongst 9,918 United States Stock Mutual Funds based on Total Return for 2008 according to Morningstar, an independent mutual fund research and rating service.

Morningstar Return Rating: AVERAGE * Morningstar Risk Rating: LOW *

Please see below for criteria used by Morningstar and AthenaInvest to assign Ratings. Recent month end performance is available by clicking Performance or by calling 1-866-263-9260.

Please review Important Disclosure Information set forth in the last section of this web site.

 

* The Adaptive Allocation Fund received a 5-Star rating (among 727 Mid-Cap Growth mutual funds) based on the Fund's past performance, taking into consideration both return and risk for the 3 year period ending December 2009. Morningstar's 5-Star rating indicates that the Fund is in the top 10% of all investment companies in its category. Morningstar's enhanced return and risk ratings are based on “expected utility theory,” which recognizes that investors are a) more concerned about a possible poor outcome than an unexpectedly good outcome and b) willing to give up some portion of their expected return in exchange for greater certainty of return. The ratings account for all variations in a fund's monthly performance, with more emphasis on downward variations. It rewards consistent performance and reduces the possibility of strong short-term performance masking the inherent risk of a fund. Morningstar is an independent mutual fund research and rating service.

* * The Adaptive Allocation Fund received a 5-Diamond Rating (among all 104 US Equity mutual funds currently covered by Athenalnvest whose primary strategy is Quantitative) for the period ending December 2009. Athenalnvest's 5-Diamond Rating is their highest rating and provides a measure of how active (in terms of pursuing alpha) and how strategy consistent a manager has been. It is based on the manager's rank within the primary strategy peer group. A Diamond Rating of 1(lowest rating) to 5 (highest rating) is assigned the fund based on this ranking. There is not a forced distribution for the number of funds in each Diamond Rating level.

Fund Rankings account for the effects of all sales charges, loads, or redemption fees. There is neither a front end load nor a deferred sales charge for the Adaptive Allocation Fund. Shares held for less than 90 days are subject to a 2.00% redemption fee. The total operating expense ratio (including indirect expenses such as the costs of investing in underlying funds) as stated in the fee table to the Fund's prospectus dated June 1, 2009 is 3.00%. All performance figures reflect fee waivers and expense subsidies, without which performance figures would have been lower.

The Fund's total return performance for the period ending December 31, 2009 was: 4.1% for past 3 months, 23.7% for past 6 months, 19.8% for past 1 year and –2.3% (annualized) for past 3 years. Recent month end performance information is available on the web at www.unusualfund.com or by calling 1-866-263-9260.

The S&P 500 Index total return for the period ending December 31, 2009 was: 6.0% for past 3 months, 22.6% for past 6 months, 26.5% for past 1 year and –5.6% (annualized) for past 3 years. Historical performance results for investment indices have been provided for general comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that the Fund holdings correspond directly to any comparative indices.

Please remember that past performance may not be indicative and is no guarantee of future results. The fund performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. A Fund's performance, especially for very short periods of time, should not be the sole factor in making your investment decisions.

As with all mutual funds, there is the risk that you could lose money through your investment in the Fund. Some of the principal risks that the Fund is exposed to include investment management risk, portfolio turnover risk, stock market volatility, derivatives, fixed income and short sale risk. The Fund's investment strategies expose it to other risks as well. Please refer to the Fund prospectus for more risk factors that you should consider before investing.

Further information about the unusual nature of the Adaptive Allocation approach to investing may be obtained by calling 1-888-653-9331.

Before investing, please read the Fund's prospectus and shareholder reports to learn about its investment strategy and potential risks.Mutual Fund investing involves risk including loss of principal. An investor should also consider the Fund's investment objective, charges, expenses, and risk carefully before investing. This and other information about the Fund is contained in the fund's prospectus, which can be obtained on the web at www.unusualfund.com or by calling 1-866-263-9260. Please read the prospectus carefully before investing. The Adaptive Allocation Fund/Portfolio are distributed by Northern Lights Distributors, LLC, member FINRA www.finra.org

0243-NLD-2/17/2010