DEFINITIONS

Drawdown - The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted as the percentage between the peak and the trough.

Long/Short Equity - An investing strategy of taking long positions in stocks that are expected to appreciate and short positions in stocks that are expected to decline. A long/short equity strategy seeks to minimize market exposure, while profiting from stock gains in the long positions and price declines in the short positions.

Risk-Adjusted Income - A concept that refines an investment's income by measuring how much risk is involved in producing that income, which is generally expressed as a number or rating.

Yield - The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.

IMPORTANT RISK INFORMATION

The Newfound Funds have a limited history of operations. There is no assurance that the Funds will achieve their investment objective. No amount of diversification can ensure profits or prevent loses.

Adverse changes in currency exchange rates may erode or reverse any potential gains from the Funds investments. Investments in foreign securities could subject the Funds to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. In addition to the risks generally associated with investing in securities of foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues.

ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few. Similar to ETFs, owning an ETN generally reflects the risks of owning the assets that comprise the underlying market benchmark or strategy that the ETN is designed to reflect.

In general, the price of a fixed income security falls when interest rates rise. To the extent the Funds invest in high yield securities (junk bonds), they will be subject to greater levels of interest rate, liquidity and credit risks than funds that do not invest in such securities. A higher Fund turnover will result in higher transactional and brokerage costs. Investments in underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations.

Futures contract positions may not provide an effective hedge because changes in futures contract prices may not track those of the securities they are intended to hedge. Futures create leverage, which can magnify a fund’s potential for gain or loss and, therefore, amplify the effects of market volatility on a fund’s share price. A higher portfolio turnover will result in higher transactional and brokerage costs and may result in higher taxes when Fund shares are held in a taxable account.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Newfound Research Mutual Funds. This and other important information about the Funds are contained in the prospectus, which can be obtained by calling 1-855-394-9777. The prospectus should be read carefully before investing. The Newfound Funds are distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. Newfound Research, LLC is not affiliated with Northern Lights Distributors, LLC.

7025-NLD-04/04/2018