NewfoundFundsEachaseriesofNorthernLightsFundTrustIII

NewfoundRiskManagedGlobalSectorsFund

ClassASharesNFGAXClassISharesNFGIX

NewfoundMulti-AssetIncomeFund

ClassASharesNFMAX

ClassISharesNFMIX

NewfoundRiskManagedU.S.SectorsFundClassASharesNFDAXClassISharesNFDIX

STATEMENTOFADDITIONALINFORMATION

August1,2019

ThisStatementofAdditionalInformation(“SAI”)isnotaprospectusandshouldbereadinconjunctionwiththeProspectus of the Newfound Risk Managed Global Sectors Fund, Newfound Multi-Asset Income Fund andNewfoundRiskManagedU.S.SectorsFund(eacha“Fund”and,collectivelythe“Funds”)datedAugust1,2019,whichareincorporatedbyreferenceintothisSAI(i.e.,legallymadeapartofthisSAI).CopiesmaybeobtainedwithoutchargebycontactingtheFunds’TransferAgent,GeminiFundServices,LLC,17645WrightStreet,Suite200,Omaha,NE68130orbycalling1-855-394-9777.YoumayalsoobtainaProspectusbyvisitingtheFunds’websiteatwww.thinknewfoundfunds.com.

 

 TABLEOFCONTENTS

THEFUNDS 1INVESTMENTSANDRISKS 2PORTFOLIOTURNOVER 25INVESTMENTRESTRICTIONS 25INVESTMENTADVISER 27PORTFOLIOMANAGERS 29ALLOCATIONOFBROKERAGE 30POLICIESANDPROCEDURESFORDISCLOSUREOFPORTFOLIOHOLDINGS 33OTHERSERVICEPROVIDERS 34INDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM 38LEGALCOUNSEL 38DISTRIBUTOR 39DESCRIPTIONOFSHARES 41CODEOFETHICS 41PROXYVOTINGPOLICIES 42PURCHASE,REDEMPTIONANDPRICINGOFFUNDSHARES 42TAXSTATUS 47ANTI-MONEYLAUNDERINGPROGRAM 53CONTROLPERSONSANDPRINCIPALHOLDERSOFSECURITIES 54MANAGEMENT 57FINANCIALSTATEMENTS 62APPENDIXA–BONDRATINGS 63APPENDIXB–PROXYVOTINGPOLICIESANDPROCEDURES 65

 

 THEFUNDS

TheNewfoundRiskManagedGlobalSectorsFund,NewfoundMulti-Asset IncomeFundandNewfound

RiskManagedU.S.SectorsFundareadiversifiedseriesofsharesofNorthernLightsFundTrustIII,aDelawarestatutorytrustorganizedonDecember5,2011(the"Trust").TheTrustisregisteredasanopen-endmanagementinvestmentcompany.TheTrustisgovernedbyitsBoardofTrustees(the"Board,"or“BoardofTrustees”).

EachFundmayissueanunlimitednumberofsharesofbeneficialinterest.AllsharesoftheFundshave

equalrightsandprivileges.EachshareofaFundisentitledtoonevoteonallmattersastowhichsharesareentitledtovote.Inaddition,eachshareofaFundisentitledtoparticipateequallywithothershares,onaclass-specific basis, (i) in dividends and distributions declared by a Fund and (ii) on liquidation to its proportionateshareoftheassetsremainingaftersatisfactionofoutstandingliabilities.SharesofeachFundarefullypaid,non-assessable and fully transferable and have no pre-emptive, conversion or exchange rights. Fractional shareshaveproportionatelythesamerights,includingvotingrights,asareprovidedforafullshare.

Newfound Research LLC (the "Adviser") is the Funds’ investment adviser. The Funds’ investment

objectives, restrictionsandpoliciesaremore fullydescribedhereand in theProspectus.TheBoardmaystartotherseriesandoffersharesofanewfundundertheTrustatanytime.

EachFundoffersthreeclassesofshares:ClassAshares,ClassCsharesandClassIshares.ClassC

sharesoftheNewfoundRiskManagedGlobalSectorsFund,NewfoundMulti-AssetIncomeFundandNewfoundRiskManagedU.S.SectorsFundarenotcurrentlyavailableforsale.EachshareclassrepresentsaninterestinthesameassetsoftheFunds,hasthesamerightsandisidentical inallmaterialrespectsexceptthat(i)eachclassofsharesmaybesubjecttodifferent(orno)salesloads;(ii)eachclassofsharesmaybeardifferent(orno)distributionfees;(iii)eachclassofsharesmayhavedifferentshareholderfeatures,suchasminimuminvestmentamounts;(iv)certainotherclass-specificexpenseswillbebornesolelybytheclasstowhichsuchexpensesareattributable,includingtransferagentfeesattributabletoaspecificclassofshares,printingandpostageexpensesrelatedtopreparinganddistributingmaterialstocurrentshareholdersofaspecificclass,registrationfeespaidbya specific class of shares, the expenses of administrative personnel and services required to support theshareholdersofaspecificclass,litigationorotherlegalexpensesrelatingtoaclassofshares,Trustees'feesorexpenses paid as a result of issues relating to a specific class of shares and accounting fees and expensesrelating to a specific class of shares and (v) each class has exclusive voting rights with respect to mattersrelatingtoitsowndistributionarrangements.TheBoardmayclassifyandreclassifythesharesoftheFundsintoadditionalclassesofsharesatafuturedate.

Under the Trust's Agreement and Declaration of Trust, each Trustee will continue in office until the

terminationoftheTrustorhis/herearlierdeath,incapacity,resignationorremoval.ShareholderscanremoveaTrusteetotheextentprovidedbytheInvestmentCompanyActof1940,asamended(the"1940Act")andtherulesandregulationspromulgatedthereunder.VacanciesmaybefilledbyamajorityoftheremainingTrustees,except insofar as the 1940Actmay require the election by shareholders. As a result, normally no annual orregularmeetingsof shareholderswill beheldunlessmattersarise requiringavoteof shareholdersunder theAgreementandDeclarationofTrustorthe1940Act.

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 INVESTMENTSANDRISKS

TheinvestmentobjectiveofeachFundandthedescriptionsofeachFund'sprincipalinvestmentstrategiesaresetforthunder"PrincipalInvestmentStrategies"intheProspectus.EachFund'sinvestmentobjectiveisnotfundamentalandmaybechangedwithouttheapprovalofamajorityoftheoutstandingvotingsecuritiesoftheTrust.

ThefollowingpagescontainmoredetailedinformationaboutthetypesofinstrumentsinwhichtheFundsmayinvest,strategiestheAdvisermayemployinpursuitoftheFunds'investmentobjectiveandasummaryofrelatedrisks.

EquitySecuritiesEquity securities in which a Fund invests include common stocks, preferred stocks and securities

convertible into commonstocks, suchas convertiblebonds,warrants, rightsandoptions.The valueof equitysecurities varies in response to many factors, including the activities and financial condition of individualcompanies, the business market in which individual companies compete and general market and economicconditions.Equitysecuritiesfluctuateinvalue,oftenbasedonfactorsunrelatedtothevalueoftheissuerofthesecurities,andsuchfluctuationscanbesignificant.

CommonStock

Common stock represents an equity (ownership) interest in a company, and usually possesses votingrightsandearnsdividends.Dividendsoncommonstockarenot fixedbutaredeclaredat thediscretionof theissuer. Common stock generally represents the riskiest investment in a company. In addition, common stockgenerallyhasthegreatestappreciationanddepreciationpotentialbecauseincreasesanddecreasesinearningsareusuallyreflectedinacompany'sstockprice.

PreferredStock

TheFundsmayinvestinpreferredstockwithnominimumcreditrating.Preferredstockisaclassofstockhavingapreferenceovercommonstockastothepaymentofdividendsandtherecoveryofinvestmentshouldacompanybe liquidated,althoughpreferredstock isusually junior to thedebtsecuritiesof the issuer.Preferredstock typicallydoesnotpossessvoting rightsand itsmarketvaluemaychangebasedonchanges in interestrates.

The fundamental riskof investing incommonandpreferredstock is the risk that thevalueof thestockmightdecrease.Stockvaluesfluctuateinresponsetotheactivitiesofanindividualcompanyor inresponsetogeneralmarketand/oreconomicconditions.Historically,commonstockshaveprovidedgreaterlong-termreturnsand have entailed greater short-term risks than preferred stocks, fixed-income securities and money marketinvestments. The market value of all securities, including common and preferred stocks, is based upon themarket'sperceptionofvalueandnotnecessarily thebookvalueofan issuerorotherobjectivemeasuresofacompany'sworth.

FixedIncome/Debt/BondSecuritiesYieldsonfixedincomesecuritiesaredependentonavarietyoffactors,includingthegeneralconditionsof

themoneymarketandotherfixedincomesecuritiesmarkets,thesizeofaparticularoffering,thematurityoftheobligationandtheratingoftheissue.AninvestmentintheFundswillbe

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 subjected to riskeven if all fixed incomesecurities in theFunds'portfolioarepaid in full atmaturity.All fixedincomesecurities,includingU.S.Governmentsecurities,canchangeinvaluewhenthereisachangeininterestratesortheissuer'sactualorperceivedcreditworthinessorabilitytomeetitsobligations.

There isnormallyan inverse relationshipbetween themarket valueof securitiessensitive toprevailing

interest rates and actual changes in interest rates. In other words, an increase in interest rates produces adecreaseinmarketvalue.Thelongertheremainingmaturity(andduration)ofasecurity,thegreaterwillbetheeffectofinterestratechangesonthemarketvalueofthatsecurity.Changesintheabilityofanissuertomakepaymentsofinterestandprincipalandinthemarket’sperceptionofanissuer'screditworthinesswillalsoaffectthemarketvalueofthedebtsecuritiesofthatissuer.Obligationsofissuersoffixedincomesecurities(includingmunicipalsecurities)aresubjecttotheprovisionsofbankruptcy, insolvency,andother lawsaffectingtherightsandremediesofcreditors,suchas theFederalBankruptcyReformActof1978. Inaddition, theobligationsofmunicipalissuersmaybecomesubjecttolawsenactedinthefuturebyCongress,statelegislatures,orreferendaextending the time forpaymentofprincipaland/or interest,or imposingotherconstraintsuponenforcementofsuchobligationsorupon theabilityofmunicipalities to levy taxes.Changes in theabilityofan issuer tomakepaymentsofinterestandprincipalandinthemarket'sperceptionofanissuer'screditworthinesswillalsoaffectthemarket value of the debt securities of that issuer. The possibility exists, therefore, that, the ability of anyissuertopay,whendue,theprincipalofandinterestonitsdebtsecuritiesmaybecomeimpaired.

The corporate debt securities in which the Fundsmay invest include corporate bonds and notes and

short-term investmentssuchascommercialpaperandvariable ratedemandnotes.Commercialpaper (short-term promissory notes) is issued by companies to finance their or their affiliate's current obligations and isfrequentlyunsecured.Variableand floating ratedemandnotesareunsecuredobligations typically redeemableuponnotmorethan30days'notice.Theseobligationsincludemasterdemandnotesthatpermit investmentoffluctuatingamountsatvaryingratesofinterestpursuanttoadirectarrangementwiththeissueroftheinstrument.The issuer of these obligations often has the right, after a given period, to prepay the outstanding principalamountoftheobligationsuponaspecifiednumberofdays'notice.Theseobligationsgenerallyarenottraded,norgenerallyisthereanestablishedsecondarymarketfortheseobligations.Totheextentademandnotedoesnot have a 7-day or shorter demand feature and there is no readily availablemarket for the obligation, it istreatedasanilliquidsecurity.

TheFundsmayinvestinsovereignbonds.Sovereignbondsinvolvespecialrisksnotpresentincorporate

bonds.Thegovernmentalauthoritythatcontrolstherepaymentofthebondsmaybeunableorunwillingtomakeinterestpaymentsand/orrepaytheprincipalonitsbonds.Ifanissuerofsovereignbondsdefaultsonpaymentsof principal and/or interest, the Funds may have limited recourse against the issuer. In the past, certaingovernmentsofemergingmarketcountrieshavedeclaredthemselvesunabletomeettheirfinancialobligationsonatimelybasis,whichhasresultedinlossestoholdersofsuchgovernment’sdebt.

Asovereigndebtor’swillingnessorabilitytorepayprincipalandpayinterest inatimelymannermaybe

affectedby,amongotherfactors,itscashflowsituation,theextentofitsforeigncurrencyreserves,theavailabilityofsufficientforeignexchange,therelativesizeofthedebtserviceburden,thesovereigndebtor’spolicytowardprincipal international lenders and local political constraints. Sovereign debtors may also be dependent onexpecteddisbursementsfromforeigngovernments,

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 multilateralagenciesandotherentitiestoreduceprincipalandinterestarrearagesontheirdebt.Thefailureofasovereigndebtor to implementeconomic reforms,achievespecified levelsof economicperformanceor repayprincipal or interest when duemay result in the cancellation of third-party commitments to lend funds to thesovereigndebtor,whichmayfurtherimpairsuchdebtor’sabilityorwillingnesstoserviceitsdebts.

TheFundsmay invest indebt securities, includingnon-investmentgradedebt securities.The following

describessomeoftherisksassociatedwithfixedincomedebtsecurities:Interest Rate Risk. Debt securities have varying levels of sensitivity to changes in interest rates. In

general, the price of a debt security can fall when interest rates rise and can rise when interest rates fall.Securitieswithlongermaturitiesandmortgagesecuritiescanbemoresensitivetointerestratechangesalthoughthey usually offer higher yields to compensate investors for the greater risks. The longer thematurity of thesecurity,thegreatertheimpactachangeininterestratescouldhaveonthesecurity'sprice.Inaddition,short-termandlong-terminterestratesdonotnecessarilymoveinthesameamountorthesamedirection.Short-termsecuritiestendtoreacttochangesinshort-terminterestratesandlong-termsecuritiestendtoreacttochangesinlong-terminterestrates.

CreditRisk.Fixedincomesecuritieshavespeculativecharacteristicsandchangesineconomicconditions

or other circumstances aremore likely to lead to aweakened capacity of those issuers tomake principal orinterestpayments,ascomparedtoissuersofmorehighlyratedsecurities.

ExtensionRisk.TheFundsaresubjecttotheriskthatanissuerwillexerciseitsrighttopayprincipalonan

obligationheldbytheFunds(suchasmortgage-backedsecurities)laterthanexpected.Thismayhappenwhenthere is a rise in interest rates. These events may lengthen the duration (i.e., interest rate sensitivity) andpotentiallyreducethevalueofthesesecurities.

PrepaymentRisk.Certain typesofdebtsecurities,suchasmortgage-backedsecurities,haveyieldand

maturitycharacteristicscorrespondingtounderlyingassets.Unliketraditionaldebtsecurities,whichmaypayafixedrateofinterestuntilmaturitywhentheentireprincipalamountcomesdue,paymentsoncertainmortgage-backedsecuritiesmayincludebothinterestandapartialpaymentofprincipal.Besidesthescheduledrepaymentofprincipal,paymentsofprincipalmayresult fromthevoluntaryprepayment, refinancing,or foreclosureof theunderlyingmortgageloans.

Securitiessubjecttoprepaymentarelesseffectivethanothertypesofsecuritiesasameansof"locking

in"attractivelong-terminterestrates.Onereasonistheneedtoreinvestprepaymentsofprincipal;anotheristhepossibilityofsignificantunscheduledprepaymentsresultingfromdeclinesininterestrates.Theseprepaymentswould have to be reinvested at lower rates. As a result, these securitiesmay have less potential for capitalappreciationduringperiodsofdeclining interest rates thanothersecuritiesof comparablematurities,althoughtheymayhaveasimilarriskofdeclineinmarketvalueduringperiodsofrisinginterestrates.Prepaymentsmayalsosignificantlyshortentheeffectivematuritiesofthesesecurities,especiallyduringperiodsofdeclininginterestrates.Conversely,duringperiodsofrisinginterestrates,areductioninprepaymentsmayincreasetheeffectivematuritiesof thesesecurities,subjectingthemtoagreaterriskofdecline inmarketvalue inresponsetorisinginterestratesthantraditionaldebtsecurities,and,therefore,potentiallyincreasingthevolatilityoftheFunds.

At times,someof themortgage-backedsecurities inwhich theFundsmay investwillhavehigher than

marketinterestratesandthereforewillbepurchasedatapremiumabovetheirparvalue.

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 Prepaymentsmaycauselossesinsecuritiespurchasedatapremium,asunscheduledprepayments,whicharemadeatpar,willcausetheFundstoexperiencealossequaltoanyunamortizedpremium.

CertificatesofDepositandBankers'AcceptancesCertificatesofdepositarereceiptsissuedbyadepositoryinstitutioninexchangeforthedepositoffunds.

Theissueragreestopaytheamountdepositedplusinteresttothebearerofthereceiptonthedatespecifiedonthecertificate.Thecertificateusuallycanbetradedinthesecondarymarketpriortomaturity.

TheFundsmay invest in insuredbankobligations.TheFederalDeposit InsuranceCorporation("FDIC")

insures the deposits of federally insured banks and savings and loan associations (collectively referred to as"banks")upto$250,000.TheFundsmaypurchasebankobligationsthatarefullyinsuredastoprincipalbytheFDIC.Currently,toremainfullyinsuredastoprincipal,theseinvestmentsmustbelimitedto$250,000perbank;iftheprincipalamountandaccruedinteresttogetherexceed$250,000,theexcessprincipalandaccruedinterestwillnotbeinsured.Insuredbankobligationsmayhavelimitedmarketability.

Bankers'acceptancestypicallyarisefromshort-termcreditarrangementsdesignedtoenablebusinesses

toobtainfundstofinancecommercialtransactions.Generally,anacceptanceisatimedraftdrawnonabankbyanexporteroranimportertoobtainastatedamountoffundstopayforspecificmerchandise.Thedraftisthen"accepted"byabank that, ineffect,unconditionallyguarantees topay the facevalueof the instrumenton itsmaturitydate.Theacceptancemaythenbeheldbytheacceptingbankasanearningassetoritmaybesoldinthesecondarymarketat thegoingrateofdiscount foraspecificmaturity.Althoughmaturities foracceptancescanbeaslongas270days,mostacceptanceshavematuritiesofsixmonthsorless.

TimeDepositsandVariableRateNotesThe Funds may invest in fixed time deposits, whether or not subject to withdrawal penalties. The

commercialpaperobligations,whichtheFundsmaybuyareunsecuredandmayincludevariableratenotes.Thenatureandtermsofavariableratenote(i.e.,a"MasterNote")permittheFundstoinvestfluctuatingamountsatvaryingratesofinterestpursuanttoadirectarrangementbetweenaFundaslender,andtheissuer,asborrower.Itpermitsdailychangesintheamountsborrowed.TheFundshavetherightatanytimetoincrease,uptothefullamountstated in thenoteagreement,or todecrease theamountoutstandingunder thenote.The issuermayprepayatanytimeandwithoutpenaltyanypartoforthefullamountofthenote.Thenotemayormaynotbebackedbyoneormorebanklettersofcredit.BecausethesenotesaredirectlendingarrangementsbetweentheFundsand the issuer, it isnotgenerallycontemplated that theywillbe traded;moreover, there iscurrentlynosecondarymarketforthem.ExceptasspecificallyprovidedintheProspectus,thereisnolimitationonthetypeofissuerfromwhomthesenotesmaybepurchased;however,inconnectionwithsuchpurchaseandonanongoingbasis,theAdviserwillconsidertheearningpower,cashflowandotherliquidityratiosoftheissuer,anditsabilitytopayprincipalandinterestondemand,includingasituationinwhichallholdersofsuchnotesmadedemandsimultaneously.Variable ratenotesaresubject to theFunds' investment restrictionon illiquidsecuritiesunlesssuchnotescanbeputbacktotheissuerondemandwithinsevendays.

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CommercialPaperTheFundsmaypurchasecommercialpaper.Commercialpaperconsistsofshort-term(usuallyfrom1to

270days)unsecuredpromissorynotesissuedbycorporationsinordertofinancetheircurrentoperations.Itmaybesecuredbylettersofcredit,asuretybondorotherformsofcollateral.Commercialpaperisusuallyrepaidatmaturityby the issuer from theproceedsof the issuanceofnewcommercialpaper.Asa result, investment incommercial paper is subject to the risk the issuer cannot issue enough new commercial paper to satisfy itsoutstandingcommercialpaper,alsoknownasrolloverrisk.Commercialpapermaybecomeilliquidormaysufferfrom reduced liquidity in certain circumstances. Like all fixed income securities, commercial paper prices aresusceptibletofluctuationsininterestrates.Ifinterestratesrise,commercialpaperpriceswilldecline.Theshort-termnatureofa commercial paper investmentmakes it less susceptible to interest rate risk thanmanyotherfixed incomesecuritiesbecause interest rate risk typically increasesasmaturity lengths increase.Commercialpaper tendstoyieldsmallerreturnsthan longer-termcorporatedebtbecausesecuritieswithshortermaturitiestypicallyhavelowereffectiveyieldsthanthosewithlongermaturities.Aswithallfixedincomesecurities,thereisachancethattheissuerwilldefaultonitscommercialpaperobligation.

RepurchaseAgreements

TheFundsmayenterintorepurchaseagreements.Inarepurchaseagreement,aninvestor(suchasthe

Funds) purchases a security (knownas the "underlying security") froma securities dealer or bank.Any suchdealerorbankmustbedeemedcreditworthybytheAdviser.Atthattime,thebankorsecuritiesdealeragreestorepurchasetheunderlyingsecurityatamutuallyagreeduponpriceonadesignatedfuturedate.Therepurchasepricemaybehigher than thepurchaseprice, thedifferencebeing income to theFunds,or thepurchaseandrepurchasepricesmaybe thesame,with interestatanagreeduponratedueto theFundsonrepurchase. Ineithercase,theincometotheFundsgenerallywillbeunrelatedtotheinterestrateontheunderlyingsecurities.Repurchase agreements must be "fully collateralized," in that the market value of the underlying securities(including accrued interest) must at all times be equal to or greater than the repurchase price. Therefore, arepurchaseagreementcanbeconsideredaloancollateralizedbytheunderlyingsecurities.

Repurchaseagreementsaregenerallyforashortperiodoftime,oftenlessthanaweek,andwillgenerally

be used by the Funds to invest excess cash or as part of a temporary defensive strategy. Repurchaseagreementsthatdonotprovideforpaymentwithinsevendayswillbetreatedasilliquidsecurities.Intheeventofabankruptcyorotherdefaultbythesellerofarepurchaseagreement,theFundscouldexperiencebothdelaysinliquidatingtheunderlyingsecurityandlosses.Theselossescouldresultfrom:(a)possibledeclineinthevalueofthe underlying security while the Fund is seeking to enforce its rights under the repurchase agreement; (b)possiblereducedlevelsofincomeorlackofaccesstoincomeduringthisperiod;and(c)expensesofenforcingitsrights.

HighYieldSecuritiesTheFundsmayinvestinhighyieldsecurities.Highyield,highriskbondsaresecuritiesthataregenerally

rated below investment grade by the primary rating agencies (BB+ or lower by S&P and Ba1 or lower byMoody's). Other terms used to describe such securities include "lower rated bonds," "non-investment gradebonds," "below investment grade bonds," and "junk bonds." These securities are considered to be high-riskinvestments.Therisksincludethefollowing:

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 GreaterRiskofLoss.Thesesecuritiesareregardedaspredominatelyspeculative.Thereisagreaterrisk

that issuersof lower ratedsecuritieswilldefault than issuersofhigher ratedsecurities. Issuersof lower ratedsecuritiesgenerallyarelesscreditworthyandmaybehighlyindebted,financiallydistressed,orbankrupt.Theseissuers are more vulnerable to real or perceived economic changes, political changes or adverse industrydevelopments. In addition, high yield securities are frequently subordinated to the prior payment of seniorindebtedness.Ifanissuerfailstopayprincipalorinterest,theFundswouldexperienceadecreaseinincomeandadeclineinthemarketvalueofitsinvestments.

Sensitivity to Interest Rate and Economic Changes. The income and market value of lower-rated

securitiesmayfluctuatemorethanhigherratedsecurities.Althoughnon-investmentgradesecuritiestendtobeless sensitive to interest rate changes than investment grade securities, non-investment grade securities aremore sensitive to short-term corporate, economic and market developments. During periods of economicuncertaintyandchange,themarketpriceoftheinvestmentsinlower-ratedsecuritiesmaybevolatile.Thedefaultrateforhighyieldbondstendstobecyclical,withdefaultsrisinginperiodsofeconomicdownturn.Forexample,in 2000, 2001 and 2002, the default rate for high yield securitieswas significantly higher than in the prior orsubsequentyears.

ValuationDifficulties.Itisoftenmoredifficulttovaluelowerratedsecuritiesthanhigherratedsecurities.If

an issuer's financial condition deteriorates, accurate financial and business information may be limited orunavailable. In addition, the lower rated investmentsmay be thinly traded and theremay be no establishedsecondarymarket.Becauseofthelackofmarketpricingandcurrentinformationforinvestmentsinlowerratedsecurities,valuationofsuchinvestmentsismuchmoredependentonjudgmentthanisthecasewithhigherratedsecurities.

Liquidity. There may be no established secondary or public market for investments in lower rated

securities.Suchsecuritiesarefrequentlytradedinmarketsthatmayberelativelylessliquidthanthemarketforhigherratedsecurities.Inaddition,relativelyfewinstitutionalpurchasersmayholdamajorportionofanissueoflower-ratedsecuritiesattimes.Asaresult,theFundsmayberequiredtosellinvestmentsatsubstantiallossesorretainthemindefinitelywhenanissuer'sfinancialconditionisdeteriorating.

CreditQuality.Creditqualityofnon-investmentgradesecuritiescanchangesuddenlyandunexpectedly,

and even recently-issued credit ratingsmay not fully reflect the actual risks posed by a particular high-yieldsecurity.

NewLegislation.Futurelegislationmayhaveapossiblenegativeimpactonthemarketforhighyield,high

risk bonds. As an example, in the late 1980’s, legislation required federally-insured savings and loanassociationstodivesttheir investmentsinhighyield,highriskbonds.Newlegislation,ifenacted,couldhaveamaterialnegativeeffectontheFunds'investmentsinlowerratedsecurities.

Highyield.Highriskinvestmentsmayincludethefollowing:Straightfixed-incomedebtsecurities.Theseincludebondsandotherdebtobligationsthatbearafixedor

variablerateofinterestpayableatregularintervalsandhaveafixedorresettablematuritydate.Theparticulartermsofsuchsecuritiesvaryandmayincludefeaturessuchascallprovisionsandsinkingfunds.

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 Zero-coupon debt securities. These bear no interest obligation but are issued at a discount from their

valueatmaturity.Whenheldtomaturity, theirentirereturnequalsthedifferencebetweentheir issuepriceandtheirmaturityvalue.

Zero-fixed-coupondebtsecurities.Thesearezero-coupondebtsecuritiesthatconvertonaspecifieddate

tointerest-bearingdebtsecurities.Pay-in-kind bonds. These are bonds which allow the issuer, at its option, to make current interest

paymentsonthebondseitherincashorinadditionalbonds.ThesearebondssoldwithoutregistrationundertheSecurities Act of 1933, as amended ("Securities Act"), usually to a relatively small number of institutionalinvestors.

ConvertibleSecurities.Thesearebondsorpreferredstockthatmaybeconvertedtocommonstock.PreferredStock.Thesearestocksthatgenerallypayadividendataspecifiedrateandhavepreference

overcommonstockinthepaymentofdividendsandinliquidation.LoanParticipationsandAssignments. Theseare participations in, or assignments of all or a portionof

loanstocorporationsortogovernments,includinggovernmentsoflessdevelopedcountries.Securities issued in connectionwithReorganizations andCorporateRestructurings. In connectionwith

reorganizingorrestructuringofanissuer,anissuermayissuecommonstockorothersecuritiestoholdersofitsdebtsecurities.TheFundsmayholdsuchcommonstockandothersecuritiesevenifitdoesnotinvestinsuchsecurities.

MunicipalGovernmentObligationsIn general, municipal obligations are debt obligations issued by or on behalf of states, territories and

possessionsof theUnitedStates (including theDistrictofColumbia)and theirpolitical subdivisions,agenciesandinstrumentalities.Municipalobligationsgenerallyincludedebtobligationsissuedtoobtainfundsforvariouspublic purposes. Certain types of municipal obligations are issued in whole or in part to obtain funding forprivatelyoperated facilitiesorprojects.Municipalobligations includegeneralobligationbonds, revenuebonds,industrial development bonds, notes and municipal lease obligations. Municipal obligations also includeadditionalobligations,theinterestonwhichisexemptfromfederalincometax,thatmaybecomeavailableinthefutureaslongastheBoarddeterminesthataninvestmentinanysuchtypeofobligationisconsistentwiththeFunds' investment objectives.Municipal obligationsmay be fully or partially backed by local government, thecreditofaprivateissuer,currentoranticipatedrevenuesfromaspecificprojectorspecificassetsordomesticorforeignentitiesprovidingcreditsupportsuchaslettersofcredit,guaranteesorinsurance.

BondsandNotes.Generalobligationbondsaresecuredbytheissuer'spledgeofitsfullfaith,creditand

taxing power for the payment of interest and principal. Revenue bonds are payable only from the revenuesderived from a project or facility or from the proceeds of a specified revenue source. Industrial developmentbondsaregenerallyrevenuebondssecuredbypaymentsfromandthecreditofprivateusers.Municipalnotesareissuedtomeettheshort-termfundingrequirementsofstate,regionalandlocalgovernments.Municipalnotesincludetaxanticipationnotes,bondanticipation

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 notes, revenue anticipation notes, tax and revenue anticipation notes, construction loan notes, short-termdiscountnotes,tax-exemptcommercialpaper,demandnotesandsimilarinstruments.

Municipal LeaseObligations.Municipal lease obligationsmay take the form of a lease, an installment

purchase or a conditional sales contract. They are issued by state and local governments and authorities toacquireland,equipmentandfacilities,suchasvehicles,telecommunicationsandcomputerequipmentandothercapitalassets.TheFundsmayinvestinunderlyingfundsthatpurchasetheseleaseobligationsdirectly,oritmaypurchase participation interests in such lease obligations (See "Participation Interests" section). States havedifferent requirements for issuingmunicipaldebtand issuingmunicipal leases.Municipal leasesaregenerallysubject to greater risks than general obligation or revenue bonds because they usually contain a "non-appropriation" clause, which provides that the issuer is not obligated tomake payments on the obligation infutureyearsunless fundshavebeenappropriated for thispurposeeachyear.Suchnon-appropriationclausesare required to avoid the municipal lease obligations from being treated as debt for state debt restrictionpurposes.Accordingly,suchobligationsaresubjectto"non-appropriation"risk.Municipalleasesmaybesecuredby the underlying capital asset and it may be difficult to dispose of any such asset in the event of non-appropriationorotherdefault.

MasterLimitedPartnerships(“MLPs”)AnMLP is an entity that is generally taxed as a partnership for federal income tax purposes and that

derives each year at least 90% of its gross income from “Qualifying Income”. Qualifying Income for MLPsincludesinterest,dividends,realestaterents,gainfromthesaleordispositionofrealproperty,incomeandgainfromcommoditiesorcommodity futures,and incomeandgain frommineralornatural resourcesactivities thatgenerateQualifying Income.MLP interests (known as units) are traded on securities exchanges or over-the-counter. An MLP’s organization as a partnership and compliance with the Qualifying Income rules generallyeliminatesfederaltaxattheentitylevel.

AnMLPhasoneormoregeneralpartners(whomaybeindividuals,corporations,orotherpartnerships)

whichmanagethepartnership,andlimitedpartners,whichprovidecapitaltothepartnershipbuthavenoroleinitsmanagement.Typically, thegeneral partner is ownedby companymanagement or another publicly tradedsponsoringcorporation.WhenaninvestorbuysunitsinanMLP,theinvestorbecomesalimitedpartner.

MLPsareformedinseveralways.Anontradedpartnershipmaydecidetogopublic.Severalnontraded

partnershipsmayrollupintoasingleMLP.Acorporationmayspin-offagroupofassetsorpartofitsbusinessintoanMLPofwhichitisthegeneralpartner,torealizetheassets’fullvalueonthemarketplacebysellingtheassetsandusing thecashproceeds received from theMLP toaddressdebtobligationsor to invest inhighergrowth opportunities,while retaining control of theMLP.A corporationmay fully convert to anMLP, althoughsince1986thetaxconsequenceshavemadethisanunappealingoptionformostcorporations.Unlikethewaysdescribed above, it is also possible for a newly formed entity to commence operations as an MLP from itsinception.

ThesponsororgeneralpartnerofanMLP,otherenergycompanies,andutilitiesmaysellassetstoMLPs

inordertogeneratecashtofundexpansionprojectsorrepaydebt.TheMLPstructureessentiallytransferscashflowsgeneratedfromtheseacquiredassetsdirectlytoMLPlimitedpartnerunitholders.

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 InthecaseofanMLPbuyingassetsfromitssponsororgeneralpartnerthetransactionisintendedtobe

based upon comparable terms in the acquisition market for similar assets. To help insure that appropriateprotectionsareinplace,thegeneralpartneroftheMLPgenerallycreatesanindependentcommitteetoreviewandapprovethetermsofthetransaction.Thecommitteeoftenobtainsafairnessopinionandcanretaincounselorotherexpertstoassistitsevaluation.SincebothpartiesnormallyhaveasignificantequitystakeintheMLP,bothpartiesarealignedtoseethatthetransactionisaccretiveandfairtotheMLP.

As amotivation for the general partner to successfullymanage theMLPand increase cash flows, the

terms of MLPs typically provide that the general partner receives a larger portion of the net income asdistributionsreachhighertargetlevels.Ascashflowgrows,thegeneralpartnerreceivesagreaterinterestintheincremental incomecomparedto the interestof limitedpartners.AlthoughthepercentagesvaryamongMLPs,thegeneralpartner’smarginalinterestindistributionsgenerallyincreasesfrom2%to15%atthefirstdesignateddistributiontargetlevelmovingupto25%andultimately50%aspre-establisheddistributionperunitthresholdsaremet.Nevertheless, theaggregateamountdistributed to limitedpartnerswill increaseasMLPdistributionsreach higher target levels. Given this incentive structure, the general partner has an incentive to streamlineoperationsandundertakeacquisitionsandgrowthprojectsinordertoincreasedistributionstoallpartners.

Because theMLP itselfgenerallydoesnotpay federal income tax, its incomeor loss isallocated to its

investors,irrespectiveofwhethertheinvestorsreceiveanycashpaymentorotherdistributionsfromtheMLP.AnMLPtypicallymakesquarterlycashdistributions.Althoughtheyresemblecorporatedividends,MLPdistributionsaretreateddifferentlyfortaxpurposes.TheMLPdistributionistreatedasareturnofcapitaltotheextentoftheinvestor’sbasis inhisMLPinterestand, to theextent thedistributionexceedsthe investor’sbasis in theMLP,generally as capital gain. The investor’s original basis is the price paid for the units. The basis is adjusteddownwardswitheachdistributionandallocationofdeductions(suchasdepreciation)andlosses,andupwardswitheachallocationoftaxableincomeandgain.

Thepartnerwillnotincurfederalincometaxondistributionsuntil:(1)hesellshisMLPunitsandpaystax

onhisgain,whichgainisincreasedduetothebasisdecreaseduetopriordistributions;or(2)hisbasisreacheszero.Whentheunitsaresold,thedifferencebetweenthesalespriceandtheinvestor’sadjustedbasisisgainorlossforfederalincometaxpurposes.

ThebusinessofcertainMLPs isaffectedbysupplyanddemandforenergycommoditiesbecausesuch

MLPsderiverevenueandincomebaseduponthevolumeoftheunderlyingcommodityproduced,transported,processed,distributed,and/ormarketed.PipelineMLPshaveindirectcommodityexposuretogasandoilpricevolatilitybecausealthough theydonotown theunderlyingenergycommodity, thegeneral levelof commoditypricesmayaffectthevolumeofthecommoditythattheMLPdeliverstoitscustomersandthecostofprovidingservicessuchasdistributingnaturalgasliquids.ThecostsofnaturalgaspipelineMLPstoperformservicesmayexceed the negotiated rates under “negotiated rate” contracts. Specifically, processingMLPsmay be directlyaffectedbyenergycommodityprices.PropaneMLPsowntheunderlyingenergycommodity,andthereforehavedirectexposuretoenergycommodityprices,althoughtheAdviserintendstotargethighqualityMLPsthatseektomitigateormanagedirectmarginexposuretocommodityprices.However,theMLPindustryingeneralcouldbehurtbymarketperceptionthatanMLP’sperformanceandvaluationaredirectlytiedtocommodityprices.

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 RealEstateInvestmentTrusts(“REITs”)The Funds may invest in the equity securities of REITs focused on the energy industry. A REIT is a

corporationorbusinesstrustthatinvestsinrealestateandderivesitsincomefromrentsorsalesofrealpropertyor interest on loans secured bymortgages on real property. Themarket value of REITsmay be affected bynumerousfactors,includingdecreasesinthevalueofrealestate,vacancies,decreasesinleaserates,defaultsbylessees,changesinthetaxlawsorbytheirinabilitytoqualifyforthetax-freepass-throughoftheirincome.

EnergyTrustSecurities.TheFundsmay invest inU.S.royalty trusts.U.S.royalty trustsaregenerallynotsubject toU.S. federal

corporateincometaxationatthetrustorentitylevel.Instead,eachunitholderoftheU.S.royaltytrustisrequiredtotakeintoaccountitsshareofallitemsoftheU.S.royaltytrust’sincome,gain,loss,deductionandexpense.Itis possible that the Funds’ share of taxable income from a U.S. royalty trust may exceed the cash actuallydistributedtoitfromtheU.S.royaltytrustinagivenyear.Insuchacase,theFundswillhavelessafter-taxcashavailablefordistributiontoshareholders.

Exchange-TradedNotes(“ETNs”)The Funds may invest in ETNs, which are senior, unsecured, unsubordinated debt securities whose

returnsarelinkedtotheperformanceofaparticularmarketbenchmarkorstrategy,minusapplicablefees.ETNsaretradedonanexchange(e.g.,theNewYorkStockExchange(“NYSE”))duringnormaltradinghours;however,investorsalsocanholdETNsuntiltheymature.Atmaturity,theissuerpaystotheinvestoracashamountequalto theprincipalamount,subject to theday‘smarketbenchmarkorstrategy factor.ETNsdonotmakeperiodiccouponpaymentsorprovideprincipalprotection.ETNsaresubjecttocreditrisk,includingthecreditriskoftheissuer, and the value of the ETN may drop due to a downgrade in the issuer‘s credit rating, despite theunderlyingmarketbenchmarkorstrategyremainingunchanged.ThevalueofanETNalsomaybeinfluencedbytime tomaturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying assets,changes in theapplicable interest rates,changes in the issuer‘scredit rating,andeconomic, legal,political,orgeographicevents thataffect the referencedunderlyingasset.When theFunds invest inETNs, itwillbear itsproportionateshareofanyfeesandexpensesbornebytheETN.AdecisionbytheFundstosellETNholdingsmay be limited by the availability of a secondarymarket. In addition, although an ETNmay be listed on anexchange, the issuer may not be required to maintain the listing, and there can be no assurance that asecondarymarketwillexistforanETN.

ETNs also are subject to tax risk.No assurance can be given that the IRSwill accept, or a courtwilluphold,howtheFundscharacterizeandtreatETNsfortaxpurposes.

AnETNthatistiedtoaspecificmarketbenchmarkorstrategymaynotbeabletoreplicateandmaintainexactlythecompositionandrelativeweightingofsecurities,commoditiesorothercomponentsintheapplicablemarketbenchmarkorstrategy.SomeETNsthatuseleveragecan,attimes,berelativelyilliquid,andthustheymay be difficult to purchase or sell at a fair price. Leveraged ETNs are subject to the same risk as otherinstrumentsthatuseleverageinanyform.ThemarketvalueofETNsmaydifferfromtheirmarketbenchmarkorstrategy.ThisdifferenceinpricemaybeduetothefactthatthesupplyanddemandinthemarketforETNsatanypointintimeisnotalwaysidenticaltothesupplyanddemandinthemarketforthesecurities,commoditiesorothercomponentsunderlyingthemarket

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 benchmarkorstrategythat theETNseekstotrack.Asaresult, theremaybetimeswhenanETNtradesatapremiumordiscounttoitsmarketbenchmarkorstrategy.

UnitedStatesGovernmentObligationsTheseconsistofvarious typesofmarketablesecurities issuedby theUnitedStatesTreasury, i.e.,bills,

notesandbonds.SuchsecuritiesaredirectobligationsoftheUnitedStatesgovernmentanddiffermainlyinthelength of their maturity. Treasury bills, the most frequently issued marketable government security, have amaturityofuptooneyearandareissuedonadiscountbasis.TheFundsmayalsoinvestinTreasuryInflation-ProtectedSecurities(“TIPS”).TIPSarespecialtypesoftreasurybondsthatwerecreatedinordertoofferbondinvestors protection from inflation. The values of the TIPS are automatically adjusted to the inflation rate asmeasuredbytheConsumerPriceIndex(“CPI”).IftheCPIgoesupbyhalfapercent,thevalueofthebond(theTIPS) would also go up by half a percent. If the CPI falls, the value of the bond does not fall because thegovernmentguaranteesthattheoriginalinvestmentwillstaythesame.TIPSdeclineinvaluewhenrealinterestratesrise.However,incertaininterestrateenvironments,suchaswhenrealinterestratesarerisingfasterthannominal interest rates, TIPS may experience greater losses than other fixed income securities with similarduration.

UnitedStatesGovernmentAgencyObligationsThese consist of debt securities issued by agencies and instrumentalities of the United States

government, including the various types of instruments currently outstanding or whichmay be offered in thefuture. Agencies include, among others, the Federal Housing Administration, Government National MortgageAssociation ("GNMA"), Farmer's Home Administration, Export-Import Bank of the United States, MaritimeAdministration,andGeneralServicesAdministration.Instrumentalitiesinclude,forexample,eachoftheFederalHome Loan Banks, the National Bank for Cooperatives, the Federal Home Loan Mortgage Corporation("FHLMC"),theFarmCreditBanks,theFederalNationalMortgageAssociation("FNMA"),andtheUnitedStatesPostalService.Thesesecuritiesareeither:(i)backedbythefullfaithandcreditoftheUnitedStatesgovernment(e.g.,UnitedStatesTreasuryBills);(ii)guaranteedbytheUnitedStatesTreasury(e.g.,GNMAmortgage-backedsecurities); (iii) supported by the issuing agency's or instrumentality's right to borrow from the United StatesTreasury (e.g.,FNMADiscountNotes);or (iv)supportedonlyby the issuingagency'sor instrumentality'sowncredit (e.g., Tennessee Valley Association). On September 7, 2008, the U.S. Treasury Department and theFederal Housing Finance Authority (the "FHFA") announced that FNMA and FHLMC had been placed intoconservatorship,astatutoryprocessdesignedtostabilizeatroubledinstitutionwiththeobjectiveofreturningtheentitytonormalbusinessoperations.TheU.S.TreasuryDepartmentandtheFHFAatthesametimeestablishedasecuredlendingfacilityandaSecuredStockPurchaseAgreementwithbothFNMAandFHLMCtoensurethateachentityhadtheabilitytofulfill itsfinancialobligations.TheFHFAannouncedthatitdoesnotanticipateanydisruptioninpatternofpaymentsorongoingbusinessoperationsofFNMAandFHLMC.

Government-related guarantors (i.e., not backed by the full faith and credit of the United States

Government) include FNMA and FHLMC. FNMA is a government-sponsored corporation owned entirely byprivate stockholders. It is subject to general regulation by theSecretary ofHousingandUrbanDevelopment.FNMA purchases conventional (i.e., not insured or guaranteed by any government agency) residentialmortgagesfromalistofapprovedseller/servicerswhichincludestateandfederallycharteredsavingsandloanassociations,mutualsavingsbanks,commercialbanksandcreditunionsandmortgagebankers.Pass-throughsecuritiesissuedbyFNMAareguaranteedastotimelypayment

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 ofprincipalandinterestbyFNMAbutarenotbackedbythefullfaithandcreditoftheUnitedStatesGovernment.

FHLMCwascreatedbyCongressin1970forthepurposeofincreasingtheavailabilityofmortgagecredit

for residentialhousing. It isagovernment-sponsoredcorporation formerlyownedby the twelveFederalHomeLoanBanksandnowownedentirelybyprivatestockholders.FHLMCissuesParticipationCertificates("PCs"),which represent interests in conventionalmortgages fromFHLMC'snational portfolio.FHLMCguarantees thetimelypaymentofinterestandultimatecollectionofprincipal,butPCsarenotbackedbythefullfaithandcreditoftheUnitedStatesGovernment.Commercialbanks,savingsandloaninstitutions,privatemortgageinsurancecompanies, mortgage bankers and other secondary market issuers also create pass-through pools ofconventionalresidentialmortgageloans.Suchissuersmay,inaddition,betheoriginatorsand/orservicersoftheunderlyingmortgageloansaswellastheguarantorsofthemortgage-relatedsecurities.Poolscreatedbysuchnongovernmentalissuersgenerallyofferahigherrateofinterestthangovernmentandgovernment-relatedpoolsbecause there are no direct or indirect government or agency guarantees of payments in the former pools.However,timelypaymentofinterestandprincipalofthesepoolsmaybesupportedbyvariousformsofinsuranceorguarantees,includingindividualloan,title,poolandhazardinsuranceandlettersofcredit.Theinsuranceandguaranteesareissuedbygovernmentalentities,privateinsurersandthemortgagepoolers.

SecuritiesofOtherInvestmentCompanies

TheFunds' investments inexchangetradedfunds("ETFs"),mutual fundsandclosed-endfunds involve

certain additional expenses and certain tax results, whichwould not be present in a direct investment in theunderlyingfund.Generally,theFundswillnotpurchasesecuritiesofanotherinvestmentcompanyif,asaresult:(i)morethan10%oftheFunds’totalassetswouldbeinvestedinsecuritiesofotherinvestmentcompanies,(ii)suchpurchasewould result inmore than3%of the totaloutstandingvotingsecuritiesofanysuch investmentcompanybeingheldbytheFunds,or(iii)morethan5%oftheFunds’totalassetswouldbeinvestedinanyonesuch investment company. However, many ETFs have obtained exemptive relief from the Securities andExchange Commission (“SEC”) to permit unaffiliated funds to invest in the ETF’s shares beyond the abovestatutory limitations, subject to certain conditions and pursuant to a contractual arrangement between theparticularETFandtheinvestingfund.AFundmayrelyontheseexemptiveorderstoinvestinunaffiliatedETFs.Inthealternative,theFundsintendtorelyonRule12d1-3,whichallowsunaffiliatedmutualfundsandETFstoexceedthe5%limitationandthe10%limitation,providedtheaggregatesalesloadsanyinvestorpays(i.e.,thecombineddistributionexpensesofboththeacquiringfundandtheacquiredfund)doesnotexceedthelimitsonsales loads established by FINRA for funds of funds. In addition to ETFs, the Funds may invest in otherinvestment companies such as open-end mutual funds or exchange-traded closed-end funds, within thelimitationsdescribedabove.

Closed-EndInvestmentCompanies

TheFundsmayinvestitsassetsin"closed-end"investmentcompanies(or"closed-endfunds"),subjecttothe investment restrictionsset forthabove.Sharesof closed-end fundsare typicallyoffered to thepublic inaone-time initial public offering by a group of underwriterswho retain a spread or underwriting commission ofbetween4%or6%oftheinitialpublicofferingprice.SuchsecuritiesarethenlistedfortradingontheNYSE,theAmerican Stock Exchange, the National Association of Securities Dealers Automated Quotation System(commonlyknownas"NASDAQ")and,insome

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 cases,may be traded in other over-the-countermarkets. Because the shares of closed-end funds cannot beredeemedupondemandtotheissuerlikethesharesofanopen-endinvestmentcompany(suchastheFunds),investorsseektobuyandsellsharesofclosed-endfundsinthesecondarymarket.

TheFundsgenerallywillpurchasesharesofclosed-endfundsonlyinthesecondarymarket.TheFundswill incur normal brokerage costs on such purchases similar to the expenses the Funds would incur for thepurchase of securities of any other type of issuer in the secondary market. The Funds may, however, alsopurchasesecuritiesofaclosed-endfundinaninitialpublicofferingwhen,intheopinionoftheAdviser,basedonaconsiderationof thenatureof theclosed-end fund'sproposed investments, theprevailingmarketconditionsandthe levelofdemandforsuchsecurities, theyrepresentanattractiveopportunity forgrowthofcapital.Theinitialofferingpricetypicallywillincludeadealerspread,whichmaybehigherthantheapplicablebrokeragecostiftheFundspurchasedsuchsecuritiesinthesecondarymarket.

The shares of many closed-end funds, after their initial public offering, frequently trade at a price pershare,whichislessthanthenetassetvalue(“NAV”)pershare,thedifferencerepresentingthe"marketdiscount"ofsuchshares.Thismarketdiscountmaybedueinparttotheinvestmentobjectiveoflong-termappreciation,which issoughtbymanyclosed-end funds,aswellas to the fact that thesharesofclosed-end fundsarenotredeemablebytheholderupondemandtotheissueratthenextdeterminedNAVbutratheraresubjecttotheprinciples of supply anddemand in the secondarymarket.A relative lackof secondarymarket purchasers ofclosed-endfundsharesalsomaycontributetosuchsharestradingatadiscounttotheirNAV.

TheFundsmayinvestinsharesofclosed-endfundsthataretradingatadiscounttoNAVoratapremiumtoNAV.Therecanbenoassurancethatthemarketdiscountonsharesofanyclosed-endfundpurchasedbytheFundswilleverdecrease.Infact,itispossiblethatthismarketdiscountmayincreaseandtheFundsmaysufferrealizedorunrealizedcapitallossesduetofurtherdeclineinthemarketpriceofthesecuritiesofsuchclosed-endfunds,therebyadverselyaffectingtheNAVoftheFunds'shares.Similarly,therecanbenoassurancethatanysharesofaclosed-endfundpurchasedbytheFundsatapremiumwillcontinuetotradeatapremiumorthatthepremiumwillnotdecreasesubsequenttoapurchaseofsuchsharesbytheFunds.

Closed-end funds may issue senior securities (including preferred stock and debt obligations) for thepurposeofleveragingtheclosed-endfund'scommonsharesinanattempttoenhancethecurrentreturntosuchclosed-endfund'scommonshareholders.TheFunds'investmentinthecommonsharesofclosed-endfundsthatarefinanciallyleveragedmaycreateanopportunityforgreatertotalreturnonitsinvestment,butatthesametimemaybeexpectedtoexhibitmorevolatilityinmarketpriceandNAVthananinvestmentinsharesofinvestmentcompanieswithoutaleveragedcapitalstructure.

Open-EndInvestmentCompaniesTheFundsandany"affiliatedpersons,"asdefinedbythe1940Act,maypurchaseintheaggregateonly

up to3%of the totaloutstandingsecuritiesofanyunderlying fund. Accordingly,whenaffiliatedpersonsholdsharesofanyoftheunderlyingfund,theFunds'abilitytoinvestfullyinsharesofthosefundsisrestricted,andthe Adviser must then, in some instances, select alternative investments that would not have been its firstpreference. The 1940Act also provides that an underlying fundwhose shares are purchased by the FundswhenrelyingoncertainexemptionstolimitationsoninvestmentsinotherinvestmentcompanieswillbeobligatedtoredeemsharesheldbytheFundsonlyinanamountupto1%oftheunderlyingfund'soutstandingsecuritiesduringanyperiod

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 oflessthan30days.Therefore,sharesheldbytheFundswhenrelyingoncertainexemptionstolimitationsoninvestments in other investment companies under the 1940 Act in excess of 1% of an underlying fund'soutstanding securities will be considered not readily marketable securities, which, together with other suchsecurities,maynotexceed15%oftheFunds'totalassets.

Undercertaincircumstances,anunderlyingfundmaydeterminetomakepaymentofaredemptionbytheFundswhollyorpartlybyadistributioninkindofsecuritiesfromitsportfolio,inlieuofcash,inconformitywiththerulesoftheSEC.Insuchcases,theFundsmayholdsecuritiesdistributedbyanunderlyingfunduntiltheAdviserdeterminesthatitisappropriatetodisposeofsuchsecurities.

Investmentdecisionsbytheinvestmentadvisersoftheunderlyingfund(s)aremadeindependentlyoftheFundsandtheAdviser.Therefore,theinvestmentadviserofoneunderlyingfundmaybepurchasingsharesofthesameissuerwhosesharesarebeingsoldbytheinvestmentadviserofanothersuchfund.TheresultwouldbeanindirectexpensetotheFundswithoutaccomplishinganyinvestmentpurpose.

ExchangeTradedFundsETFsaregenerally passive funds that track their related indexandhave the flexibility of trading likea

security.Theyaremanagedbyprofessionalsandprovidetheinvestorwithdiversification,costandtaxefficiency,liquidity,marginability,areusefulforhedging,havetheabilitytogolongandshort,andsomeprovidequarterlydividends. Additionally, someETFs are unit investment trusts. ETFs typically have twomarkets. The primarymarket iswhere institutionsswap "creationunits" inblock-multiplesof, forexample,50,000shares for in-kindsecuritiesandcash in the formofdividends.Thesecondarymarket iswhere individual investorscan tradeaslittleasasingleshareduringtradinghoursontheexchange.Thisisdifferentfromopen-endedmutualfundsthataretradedafterhoursoncetheNAViscalculated.ETFssharemanysimilarriskswithopen-endandclosed-endfunds.

ForeignSecurities

General.TheFundsmayinvestinforeignsecuritiesandETFsandotherinvestmentcompaniesthatholda portfolio of foreign securities. Investing in securities of foreign companies and countries involves certainconsiderations and risks that are not typically associated with investing in U.S. government securities andsecuritiesofdomesticcompanies.Theremaybelesspubliclyavailableinformationaboutaforeignissuerthanadomestic one, and foreign companies are not generally subject to uniform accounting, auditing and financialstandards and requirements comparable to those applicable to U.S. companies. There may also be lessgovernmentsupervisionandregulationofforeignsecuritiesexchanges,brokersandlistedcompaniesthanexistsin theUnited States. Interest and dividends paid by foreign issuersmay be subject to withholding and otherforeign taxes,whichmaydecrease thenet returnonsuch investmentsascompared todividendsand interestpaid to the Funds by domestic companies or the U.S. government. There may be the possibility ofexpropriations,seizureornationalizationof foreigndeposits,confiscatory taxation,political,economicorsocialinstabilityordiplomaticdevelopmentsthatcouldaffectassetsoftheFundsheldinforeigncountries.Finally,theestablishmentofexchangecontrolsorotherforeigngovernmentallawsorrestrictionscouldadverselyaffectthepaymentofobligations.

Totheextent theFunds'currencyexchangetransactionsdonot fullyprotect theFundsagainstadverse

changesincurrencyexchangerates,decreasesinthevalueofcurrenciesoftheforeigncountriesinwhichtheFundswillinvestrelativetotheU.S.dollarwillresultinacorrespondingdecrease

15

 in theU.S. dollar value of theFunds' assets denominated in those currencies (and possibly a correspondingincrease in the amount of securities required to be liquidated tomeet distribution requirements). Conversely,increasesinthevalueofcurrenciesoftheforeigncountriesinwhichtheFundsinvestrelativetotheU.S.dollarwillresultinacorrespondingincreaseintheU.S.dollarvalueoftheFunds'assets(andpossiblyacorrespondingdecreaseintheamountofsecuritiestobeliquidated).

SecuritiesOptions

TheFundsmaypurchaseandwrite(i.e.,sell)putandcalloptions.Suchoptionsmayrelatetoparticularsecuritiesorstockindices,andmayormaynotbelistedonadomesticorforeignsecuritiesexchangeandmayormaynotbe issuedby theOptionsClearingCorporation.Options trading isahighlyspecializedactivity thatentailsgreaterthanordinaryinvestmentrisk.Optionsmaybemorevolatilethantheunderlyinginstruments,andtherefore, on a percentage basis, an investment in options may be subject to greater fluctuation than aninvestmentintheunderlyinginstrumentsthemselves.

A call option for a particular security gives the purchaser of the option the right to buy, and thewriter(seller)theobligationtosell,theunderlyingsecurityatthestatedexercisepriceatanytimepriortotheexpirationoftheoption,regardlessofthemarketpriceofthesecurity.Thepremiumpaidtothewriterisinconsiderationforundertakingtheobligationundertheoptioncontract.Aputoptionforaparticularsecuritygivesthepurchasertheright to sell the security at the stated exercise price at any time prior to the expiration date of the option,regardlessofthemarketpriceofthesecurity.

Stockindexoptionsareputoptionsandcalloptionsonvariousstockindices.Inmostrespects,theyareidentical to listedoptionsoncommonstocks.Theprimarydifferencebetweenstockoptionsand indexoptionsoccurswhenindexoptionsareexercised.Inthecaseofstockoptions,theunderlyingsecurity,commonstock,isdelivered.However,upontheexerciseofanindexoption,settlementdoesnotoccurbydeliveryofthesecuritiescomprisingtheindex.Theoptionholderwhoexercisestheindexoptionreceivesanamountofcashiftheclosinglevelofthestockindexuponwhichtheoptionisbasedisgreaterthan,inthecaseofacall,orlessthan,inthecaseofaput,theexercisepriceoftheoption.Thisamountofcashisequaltothedifferencebetweentheclosingpriceof thestock indexand theexercisepriceof theoptionexpressed indollars timesaspecifiedmultiple.Astockindexfluctuateswithchangesinthemarketvalueofthestocksincludedintheindex.Forexample,somestockindexoptionsarebasedonabroadmarketindex,suchastheStandard&Poor's500®IndexortheValueLineComposite Indexoranarrowermarket index,suchas theStandard&Poor's100®. Indicesmayalsobebasedonanindustryormarketsegment,suchastheAMEXOilandGasIndexortheComputerandBusinessEquipmentIndex.OptionsonstockindicesarecurrentlytradedontheNYSE,theAmericanStockExchangeandNASDAQPHLX.

The Funds' obligation to sell an instrument subject to a call option written by it, or to purchase aninstrumentsubjecttoaputoptionwrittenbyit,maybeterminatedpriortotheexpirationdateoftheoptionbytheFunds'executionofaclosingpurchasetransaction,whichiseffectedbypurchasingonanexchangeanoptionofthesameseries(i.e.,sameunderlying instrument,exercisepriceandexpirationdate)as theoptionpreviouslywritten.Aclosingpurchasetransactionwillordinarilybeeffectedtorealizeaprofitonanoutstandingoption,topreventanunderlyinginstrumentfrombeingcalled,topermitthesaleoftheunderlyinginstrumentortopermitthe writing of a new option containing different terms on such underlying instrument. The cost of such aliquidationpurchaseplustransactionscostsmaybegreaterthanthepremiumreceivedupontheoriginaloption,inwhicheventtheFundswillhavepaidalossinthetransaction.Thereisnoassurancethataliquidsecondarymarketwillexistforanyparticularoption.Anoptionwriterunabletoeffectaclosingpurchasetransactionwillnotbeable

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 toselltheunderlyinginstrumentorliquidatetheassetsheldinasegregatedaccount,asdescribedbelow,untiltheoptionexpiresortheoptionedinstrumentisdelivereduponexercise.Insuchcircumstances,thewriterwillbesubjecttotheriskofmarketdeclineorappreciationintheinstrumentduringsuchperiod.

IfanoptionpurchasedbytheFundsexpiresunexercised,theFundsrealizealossequaltothepremiumpaid.IftheFundsenterintoaclosingsaletransactiononanoptionpurchasedbyit,theFundswillrealizeagainifthepremiumreceivedbytheFundsontheclosingtransactionismorethanthepremiumpaidtopurchasetheoption,ora loss if it is less. Ifanoptionwrittenby theFundsexpireon thestipulatedexpirationdateor if theFundsenter intoaclosingpurchase transaction, itwill realizeagain (or loss if thecostofaclosingpurchasetransaction exceeds the net premium receivedwhen the option is sold). If an optionwritten by the Funds isexercised,theproceedsofthesalewillbeincreasedbythenetpremiumoriginallyreceivedandtheFundswillrealizeagainorloss.

CertainRisksRegardingOptions.

There are several risks associated with transactions in options. For example, there are significantdifferences between the securities and optionsmarkets that could result in an imperfect correlation betweenthesemarkets,causingagiventransactionnottoachieveitsobjectives.Inaddition,aliquidsecondarymarketfor particular options,whether traded over-the-counter or on an exchange,may be absent for reasonswhichincludethefollowing:theremaybeinsufficienttradinginterestincertainoptions;restrictionsmaybeimposedbyan exchange on opening transactions or closing transactions or both; trading halts, suspensions or otherrestrictionsmaybe imposedwith respect to particular classes or series of options or underlying securities orcurrencies;unusualorunforeseencircumstancesmayinterruptnormaloperationsonanexchange;thefacilitiesofanexchangeortheOptionsClearingCorporationmaynotatalltimesbeadequatetohandlecurrenttradingvalue;oroneormoreexchangescould,foreconomicorotherreasons,decideorbecompelledatsomefuturedatetodiscontinuethetradingofoptions(oraparticularclassorseriesofoptions),inwhicheventthesecondarymarketonthatexchange(orinthatclassorseriesofoptions)wouldceasetoexist,althoughoutstandingoptionsthathadbeenissuedbytheOptionsClearingCorporationasaresultoftradesonthatexchangewouldcontinuetobeexercisableinaccordancewiththeirterms.

Successful useby theFundsof optionson stock indiceswill be subject to theability of theAdviser tocorrectlypredictmovements in thedirectionsof thestockmarket.This requiresdifferentskillsand techniquesthanpredictingchangesinthepricesofindividualsecurities.Inaddition,aFund'sabilitytoeffectivelyhedgealloraportionofthesecuritiesinitsportfolio,inanticipationoforduringamarketdecline,throughtransactionsinputoptionsonstockindices,dependsonthedegreetowhichpricemovementsintheunderlyingindexcorrelatewith the price movements of the securities held by the Funds. Inasmuch as the Funds' securities will notduplicatethecomponentsofanindex,thecorrelationwillnotbeperfect.Consequently,theFundsbeartheriskthatthepricesofitssecuritiesbeinghedgedwillnotmoveinthesameamountasthepricesofitsputoptionsonthestockindices.ItisalsopossiblethattheremaybeanegativecorrelationbetweentheindexandtheFunds'securities thatwould result ina lossonbothsuchsecuritiesand theoptionsonstock indicesacquiredby theFunds.

Thehoursoftradingforoptionsmaynotconformtothehoursduringwhichtheunderlyingsecuritiesaretraded.Totheextentthattheoptionsmarketsclosebeforethemarketsfortheunderlyingsecurities,significantprice and rate movements can take place in the underlying markets that cannot be reflected in the optionsmarkets.Thepurchaseofoptionsisahighlyspecializedactivitythatinvolves

17

 investment techniquesand risksdifferent from thoseassociatedwithordinaryportfolio securities transactions.ThepurchaseofstockindexoptionsinvolvestheriskthatthepremiumandtransactioncostspaidbytheFundsinpurchasinganoptionwillbelostasaresultofunanticipatedmovementsinpricesofthesecuritiescomprisingthestockindexonwhichtheoptionisbased.

Thereisnoassurancethataliquidsecondarymarketonanoptionsexchangewillexistforanyparticularoption,oratanyparticulartime,andforsomeoptionsnosecondarymarketonanexchangeorelsewheremayexist. If the Funds are unable to close out a call option on securities that it has written before the option isexercised,theFundsmayberequiredtopurchasetheoptionedsecuritiesinordertosatisfyitsobligationundertheoptiontodeliversuchsecurities.IftheFundsareunabletoeffectaclosingsaletransactionwithrespecttooptionsonsecuritiesthatithaspurchased,itwouldhavetoexercisetheoptioninordertorealizeanyprofitandwouldincurtransactioncostsuponthepurchaseandsaleoftheunderlyingsecurities.

CoverforOptionsPositions.

Transactionsusingoptions (other thanoptions that theFundshaspurchased)expose theFunds toanobligation to another party. The Funds will not enter into any such transactions unless it owns either (i) anoffsetting("covered")positioninsecuritiesorotheroptionsor(ii)cashorliquidsecuritieswithavaluesufficientatalltimestocoveritspotentialobligationsnotcoveredasprovidedin(i)above.TheFundswillcomplywithSECguidelines regarding cover for these instruments and, if the guidelines so require, set aside cash or liquidsecurities in a segregated account with the Funds' custodian in the prescribed amount. Under current SECguidelines,theFundswillsegregateassetstocovertransactionsinwhichtheFundswriteorsellsoptions.

Assets used as cover or held in a segregated account cannot be sold while the position in thecorrespondingoption is open, unless theyare replacedwith similar assets.Asa result, the commitment of alargeportionof theFunds'assets tocoverorsegregatedaccountscould impedeportfoliomanagementor theFunds'abilitytomeetredemptionrequestsorothercurrentobligations.

OptionsonFuturesContractsTheFundsmaypurchaseandselloptionsonthesametypesoffuturesinwhichitmayinvest.Optionson

futuresare similar tooptionsonunderlying instrumentsexcept that optionson futuresgive thepurchaser theright,inreturnforthepremiumpaid,toassumeapositioninafuturescontract(alongpositioniftheoptionisacallandashortpositioniftheoptionisaput),ratherthantopurchaseorsellthefuturescontract,ataspecifiedexercisepriceatanytimeduringtheperiodoftheoption.Uponexerciseoftheoption,thedeliveryofthefuturesposition by the writer of the option to the holder of the option will be accompanied by the delivery of theaccumulatedbalance in thewriter's futuresmarginaccountwhichrepresents theamountbywhich themarketpriceofthefuturescontract,atexercise,exceeds(inthecaseofacall)orislessthan(inthecaseofaput)theexercisepriceoftheoptiononthefuturescontract.Purchasersofoptionswhofailtoexercisetheiroptionspriortotheexercisedatesufferalossofthepremiumpaid.

DealerOptions

The Funds may engage in transactions involving dealer options as well as exchange-traded options.Certainadditional risksarespecific todealeroptions.While theFundsmight look toaclearingcorporation toexerciseexchange-tradedoptions,iftheFundsweretopurchaseadealeroptionitwould

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 needtorelyonthedealerfromwhichitpurchasedtheoptiontoperformiftheoptionwereexercised.Failurebythedealer todosowouldresult in the lossof thepremiumpaidbytheFundsaswellas lossof theexpectedbenefitofthetransaction.

Exchange-traded options generally have a continuous liquid market while dealer options may not.Consequently,theFundsmaygenerallybeabletorealizethevalueofadealeroptionithaspurchasedonlybyexercisingorresellingtheoptiontothedealerwhoissuedit.Similarly,whentheFundswriteadealeroption,itmay generally be able to close out the option prior to its expiration only by entering into a closing purchasetransactionwiththedealertowhomtheFundsoriginallywrotetheoption.WhiletheFundswillseektoenterintodealeroptionsonlywithdealerswhowillagreetoandwhichareexpectedtobecapableofenteringintoclosingtransactionswiththeTrustonbehalfoftheFunds,therecanbenoassurancethattheFundswillatanytimebeabletoliquidateadealeroptionatafavorablepriceatanytimepriortoexpiration.UnlesstheFunds,ascovereddealer call optionwriters, are able to effect a closing purchase transaction, theywill not be able to liquidatesecurities(orotherassets)usedascoveruntiltheoptionexpiresorisexercised.Intheeventofinsolvencyoftheotherparty,theFundsmaybeunabletoliquidateadealeroption.WithrespecttooptionswrittenbytheFunds,theinabilitytoenterintoaclosingtransactionmayresultinmateriallossestotheFunds.Forexample,becausetheFundsmustmaintainasecuredpositionwithrespecttoanycalloptiononasecurityitwrites,theFundsmaynot sell theassets,which it hassegregated to secure thepositionwhile it isobligatedunder theoption.Thisrequirement may impair the Funds' ability to sell portfolio securities at a time when such sale might beadvantageous.

The Staff of the SEC has taken the position that purchased dealer options are illiquid securities. TheFundsmay treat the cover used for written dealer options as liquid if the dealer agrees that the Fundsmayrepurchasethedealeroptionithaswrittenforamaximumpricetobecalculatedbyapredeterminedformula.Insuchcases,thedealeroptionwouldbeconsideredilliquidonlytotheextentthemaximumpurchasepriceundertheformulaexceedstheintrinsicvalueoftheoption.Accordingly,theFundswilltreatdealeroptionsassubjecttotheFunds' limitationon illiquidsecurities. If theSECchangesitspositiononthe liquidityofdealeroptions, theFundswillchangeitstreatmentofsuchinstrumentsaccordingly.

FuturesContracts

Afuturescontractprovidesforthefuturesalebyonepartyandpurchasebyanotherpartyofaspecified

amountofaspecificfinancialinstrument(e.g.,unitsofastockindex)foraspecifiedprice,date,timeandplacedesignatedatthetimethecontractismade.Brokeragefeesarepaidwhenafuturescontractisboughtorsoldandmargindepositsmustbemaintained.Entering intoacontract tobuy iscommonlyreferredtoasbuyingorpurchasingacontractorholdingalongposition.Enteringintoacontracttoselliscommonlyreferredtoassellingacontractorholdingashortposition.

UnlikewhentheFundspurchaseorsellasecurity,nopricewouldbepaidorreceivedbytheFundsuponthepurchaseorsaleofafuturescontract.Uponenteringintoafuturescontract,andtomaintaintheFunds’openpositions in futurescontracts, theFundswouldbe required todepositwith itscustodianor futuresbroker inasegregatedaccount inthenameofthefuturesbrokeranamountofcash,U.S.governmentsecurities,suitablemoney market instruments, or other liquid securities, known as "initial margin." The margin required for aparticular futures contract is set by the exchange on which the contract is traded, and may be significantlymodified fromtime to timeby theexchangeduring the termof thecontract.Futurescontractsarecustomarilypurchasedandsoldonmargins thatmay rangeupward from less than5%of thevalueof thecontractbeingtraded.

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Ifthepriceofanopenfuturescontractchanges(byincreaseinunderlyinginstrumentorindexinthecaseofasaleorbydecreaseinthecaseofapurchase)sothatthelossonthefuturescontractreachesapointatwhich themargin on deposit does not satisfymargin requirements, the brokerwill require an increase in themargin.However,ifthevalueofapositionincreasesbecauseoffavorablepricechangesinthefuturescontractsothatthemargindepositexceedstherequiredmargin,thebrokerwillpaytheexcesstotheFunds.

These subsequent payments, called "variationmargin," to and from the futures broker, aremadeon adaily basis as the price of the underlying assets fluctuatemaking the long and short positions in the futurescontractmoreorlessvaluable,aprocessknownas"markingtothemarket."TheFundsexpecttoearninterestincomeonitsmargindeposits.

Althoughcertain futures contracts, by their terms, requireactual futuredeliveryof andpayment for theunderlyinginstruments,inpracticemostfuturescontractsareusuallyclosedoutbeforethedeliverydate.Closingoutanopenfuturescontractpurchaseorsale iseffectedbyentering intoanoffsettingfuturescontractsaleorpurchase, respectively, for thesameaggregateamountof the identicalunderlying instrumentor indexand thesamedeliverydate.Iftheoffsettingpurchasepriceislessthantheoriginalsaleprice,theFundsrealizeagain;ifit ismore, theFunds realizea loss.Conversely, if theoffsettingsaleprice ismore than theoriginalpurchaseprice,theFundsrealizeagain;ifitisless,theFundsrealizealoss.Thetransactioncostsmustalsobeincludedinthesecalculations.Therecanbenoassurance,however,thattheFundswillbeabletoenterintoanoffsettingtransactionwithrespecttoaparticularfuturescontractataparticulartime.IftheFundsarenotabletoenterintoanoffsettingtransaction, theFundswillcontinuetoberequiredtomaintain themargindepositsonthefuturescontract.

Forexample,onecontractintheFinancialTimesStockExchange100Indexfutureisacontracttobuy25pounds sterling multiplied by the level of the UK Financial Times 100 Share Index on a given future date.Settlementofastockindexfuturescontractmayormaynotbeintheunderlyinginstrumentorindex.Ifnotintheunderlying instrument or index, then settlement will be made in cash, equivalent over time to the differencebetween the contract price and the actual price of the underlying asset at the time the stock index futurescontractexpires.

SwapAgreements

TheFundsmayenterintoswapagreementsforpurposesofattemptingtogainexposuretoequity,debt,commodities or other asset markets without actually purchasing those assets, or to hedge a position. Swapagreementsaretwo-partycontractsenteredintoprimarilybyinstitutionalinvestorsforperiodsrangingfromadayto more than one year. In a standard "swap" transaction, two parties agree to exchange the returns (ordifferentials in ratesof return)earnedor realizedonparticularpredetermined investmentsor instruments.Thegross returns to be exchanged or "swapped" between the parties are calculated with respect to a "notionalamount,"i.e.,thereturnonorincreaseinvalueofaparticulardollaramountinvestedina"basket"ofsecuritiesrepresentingaparticularindex.

MostswapagreementsenteredintobytheFundscalculatetheobligationsofthepartiestotheagreementona"netbasis."Consequently,theFunds'currentobligations(orrights)underaswapagreementwillgenerallybeequalonlytothenetamounttobepaidorreceivedundertheagreementbasedontherelativevaluesofthepositionsheldbyeachpartytotheagreement(the"netamount").Paymentsmaybemadeattheconclusionofaswapagreementorperiodicallyduringitsterm.

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Swapagreements donot involve the delivery of securities or other underlyingassets.Accordingly, if aswap is entered into on a net basis, if the other party to a swap agreement defaults, the Funds' risk of lossconsistsofthenetamountofpaymentsthattheFundsarecontractuallyentitledtoreceive,ifany.

Thenetamountoftheexcess,ifany,oftheFunds'obligationsoveritsentitlementswithrespecttoaswapagreemententered intoonanetbasiswillbeaccrueddailyandanamountofcashor liquidassethavinganaggregateNAVat leastequal to theaccruedexcesswillbemaintained inanaccountwith theCustodian.TheFundswillalsoestablishandmaintainsuchaccountswithrespectto itstotalobligationsunderanyswapsthatarenotenteredintoonanetbasis.Obligationsunderswapagreementssocoveredwillnotbeconstruedtobe"seniorsecurities"forpurposesoftheFunds'investmentrestrictionconcerningseniorsecurities.

Because they are two-party contracts and because theymay have terms of greater than seven days,swapagreementsmaybeconsideredtobe illiquid for theFunds' illiquid investment limitations.TheFundswillnot enter into any swap agreement unless the Adviser believes that the other party to the transaction iscreditworthy.TheFundsbeartheriskoflossoftheamountexpectedtobereceivedunderaswapagreementintheeventofthedefaultorbankruptcyofaswapagreementcounter-party.

TheFundsmayenterintoaswapagreementincircumstanceswheretheAdviserbelievesthatitmaybemorecosteffectiveorpracticalthanbuyingthesecuritiesrepresentedbysuchindexorafuturescontractoranoptiononsuchindex.Thecounter-partytoanyswapagreementwilltypicallybeabank,investmentbankingfirmor broker/dealer. The counter-party will generally agree to pay the Funds the amount, if any, by which thenotional amount of the swapagreementwouldhave increased in valuehad it been invested in theparticularstocksrepresentedintheindex,plusthedividendsthatwouldhavebeenreceivedonthosestocks.TheFundswillagreetopayto thecounter-partya floatingrateof interestonthenotionalamountof theswapagreementplus theamount, ifany,bywhich thenotionalamountwouldhavedecreased invaluehad itbeen invested insuch stocks. Therefore, the return to the Funds on any swap agreement should be the gain or loss on thenotionalamountplusdividendsonthestockslesstheinterestpaidbytheFundsonthenotionalamount.

Theswapmarkethasgrownsubstantially inrecentyearswitha largenumberofbanksand investmentbankingfirmsactingbothasprincipalsandasagentsutilizingstandardizedswapdocumentation.Asaresult,theswapmarkethasbecomerelativelyliquidincomparisonwiththemarketsforothersimilar instrumentsthataretradedintheover-the-countermarket.

RegulationasaCommodityPoolOperatorTheTrust,onbehalfof theFunds,has filedwith theNationalFuturesAssociation,anoticeclaimingan

exclusion from the definition of the term "commodity pool operator" under the Commodity Exchange Act, asamended,andtherulesoftheCommodityFuturesTradingCommission(“CFTC”)promulgatedthereunder,withrespecttotheFunds’operations.Accordingly,theFundsarenotcurrentlysubjecttoregistrationorregulationasacommoditypooloperator.

When-Issued,ForwardCommitmentsandDelayedSettlements

The Funds may purchase and sell securities on a when-issued, forward commitment or delayedsettlementbasis.Inthisevent,theCustodian(asdefinedunderthesectionentitled"Custodian")willsegregateliquid assets equal to the amount of the commitment in a separate account.Normally, theCustodianwill setasideportfoliosecuritiestosatisfyapurchasecommitment.Insuchacase,theFunds

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 maybe requiredsubsequently tosegregateadditionalassets inorder toassure that thevalueof theaccountremains equal to the amount of the Funds' commitment. It may be expected that the Funds' net assets willfluctuate toagreaterdegreewhen itsetsasideportfoliosecurities tocoversuchpurchasecommitments thanwhenitsetsasidecash.

TheFundsdonotintendtoengageinthesetransactionsforspeculativepurposesbutonlyinfurtherance

ofitsinvestmentobjectives.BecausetheFundswillsegregateliquidassetstosatisfyitspurchasecommitmentsinthemannerdescribed,theFunds'liquidityandtheabilityoftheAdvisertomanagethemmaybeaffectedintheevent the Funds' forward commitments, commitments to purchase when-issued securities and delayedsettlementseverexceeded15%ofthevalueofitsnetassets.

TheFundswillpurchasesecuritiesonawhen-issued, forwardcommitmentordelayedsettlementbasisonlywith the intentionof completing the transaction. If deemedadvisable as amatter of investment strategy,however,theFundsmaydisposeoforrenegotiateacommitmentafteritisenteredinto,andmaysellsecuritiesithascommittedtopurchasebeforethosesecuritiesaredeliveredtotheFundsonthesettlementdate.Inthesecases, theFundsmayrealizea taxablecapitalgainor loss.WhentheFundsengage inwhen-issued, forwardcommitmentanddelayedsettlementtransactions,itreliesontheotherpartytoconsummatethetrade.FailureofsuchpartytodosomayresultintheFundsincurringalossormissinganopportunitytoobtainapricecreditedtobeadvantageous.

Themarketvalueofthesecuritiesunderlyingawhen-issuedpurchase,forwardcommitmenttopurchase

securities,oradelayedsettlementandanysubsequentfluctuations intheirmarketvalue is takenintoaccountwhendeterminingthemarketvalueoftheFundsstartingonthedaytheFundsagreestopurchasethesecurities.TheFundsdonotearninterestonthesecuritiesithascommittedtopurchaseuntilithaspaidforanddeliveredonthesettlementdate.

IlliquidandRestrictedSecurities

The Funds may invest up to 15% of their net assets in illiquid securities. Illiquid securities includesecuritiessubjecttocontractualorlegalrestrictionsonresale(e.g.,becausetheyhavenotbeenregisteredundertheSecuritiesAct)andsecuritiesthatareotherwisenotreadilymarketable(e.g.,becausetradinginthesecurityissuspendedorbecausemarketmakersdonotexistorwillnotentertainbidsoroffers).Securitiesthathavenotbeenregisteredunder theSecuritiesActare referred toasprivateplacementsor restrictedsecuritiesandarepurchaseddirectlyfromtheissuerorinthesecondarymarket.Foreignsecuritiesthatarefreelytradableintheirprincipalmarketsarenotconsideredtobeilliquid.

Restrictedandotherilliquidsecuritiesmaybesubjecttothepotentialfordelaysonresaleanduncertaintyinvaluation.TheFundsmightbeunable todisposeof illiquidsecuritiespromptlyorat reasonablepricesandmighttherebyexperiencedifficultyinsatisfyingredemptionrequestsfromshareholders.TheFundsmighthavetoregister restricted securities in order to dispose of them, resulting in additional expense and delay. Adversemarketconditionscouldimpedesuchapublicofferingofsecurities.

A large institutionalmarketexists for certainsecurities thatarenot registeredunder theSecuritiesAct,includingforeignsecurities.Thefactthattherearecontractualorlegalrestrictionsonresaletothegeneralpublicortocertaininstitutionsmaynotbeindicativeoftheliquidityofsuchinvestments.Rule144AundertheSecuritiesActallowssuchabroaderinstitutionaltradingmarketfor

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 securitiesotherwisesubjecttorestrictionsonresaletothegeneralpublic.Rule144Aestablishesa"safeharbor"from the registration requirements of theSecuritiesAct for resale of certain securities to qualified institutionalbuyers.Rule144Ahasproducedenhancedliquidityformanyrestrictedsecurities,andmarketliquidityforsuchsecuritiesmaycontinue toexpandasa resultof this regulationand theconsequentexistenceof thePORTALsystem,which is anautomated system for the trading, clearanceand settlement of unregistered securities ofdomesticandforeignissuerssponsoredbytheFinancialIndustryRegulatoryAuthority,Inc.("FINRA").

UnderguidelinesadoptedbytheBoard,theAdvisermaydeterminethatparticularRule144Asecurities,and commercial paper issued in reliance on the private placement exemption from registration afforded bySection4(a)(2)oftheSecuritiesAct,areliquideventhoughtheyarenotregistered.Adeterminationofwhethersuchasecurityisliquidornotisaquestionoffact.Inmakingthisdetermination,theAdviserwillconsider,asitdeemsappropriateunderthecircumstancesandamongotherfactors:(1)thefrequencyoftradesandquotesforthesecurity;(2)thenumberofdealerswillingtopurchaseorsellthesecurity;(3)thenumberofotherpotentialpurchasersofthesecurity;(4)dealerundertakingstomakeamarketinthesecurity;(5)thenatureofthesecurity(e.g.,debtorequity,dateofmaturity,termsofdividendorinterestpayments,andothermaterialterms)andthenatureofthemarketplacetrades(e.g.,thetimeneededtodisposeofthesecurity,themethodofsolicitingoffers,andthemechanicsoftransfer);and(6)theratingofthesecurityandthefinancialconditionandprospectsoftheissuer.Inthecaseofcommercialpaper,theAdviserwillalsodeterminethatthepaper(1)isnottradedflatorindefaultas toprincipaland interest,and(2) is rated inoneof the twohighest ratingcategoriesbyat least twoNationallyRecognizedStatisticalRatingOrganizations("NRSROs")or,ifonlyoneNRSROratesthesecurity,bythatNRSRO,or,ifthesecurityisunrated,theAdviserdeterminesthatitisofequivalentquality.

Rule144AsecuritiesandSection4(a)(2)commercialpaper thathavebeendeemedliquidasdescribed

abovewillcontinuetobemonitoredbytheAdvisertodetermineifthesecurityisnolongerliquidastheresultofchangedconditions.InvestinginRule144AsecuritiesorSection4(a)(2)commercialpapercouldhavetheeffectofincreasingtheamountoftheFunds'assetsinvestedinilliquidsecuritiesifinstitutionalbuyersareunwillingtopurchasesuchsecurities.

LendingPortfolioSecurities

Forthepurposeofachievingincome,theFundsmaylenditsportfoliosecurities,provided(1)theloanissecuredcontinuouslybycollateralconsistingofU.S.Governmentsecuritiesorcashorcashequivalents(cash,U.S. Government securities, negotiable certificates of deposit, bankers' acceptances or letters of credit)maintained on a daily mark-to-market basis in an amount at least equal to the current market value of thesecuritiesloaned,(2)theFundsmayatanytimecalltheloanandobtainthereturnofsecuritiesloaned,(3)theFundswillreceiveanyinterestordividendsreceivedontheloanedsecurities,and(4)theaggregatevalueofthesecuritiesloanedwillnotatanytimeexceedone-thirdofthetotalassetsoftheFunds.TheFundsmayinvestthecashcollateralreceivedinconnectionwithsecuritieslendingtransactionsintheMilestoneTreasuryObligationsFund “Milestone”. Milestone is managed by CLS Investments, LLC. The lending agent may invest the cashcollateralreceivedinconnectionwithsecuritieslendingtransactionsinMilestone.Milestoneisregisteredunderthe1940Actasanopenendinvestmentcompany, issubjecttoRule2a-7underthe190Act,whichCLSmayreceivean investmentadvisory feeofup to0.10%onanannualizedbasisof theaveragedailynetassetsofMilestone.TheFundsreceivecompensationrelatingtothelendingoftheFunds’securities.

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ShortSales

“ShortSalesAgainstTheBox.AFundmayengageinshortsalesagainstthebox.Inashortsale,aFundsellsaborrowedsecurityandhasacorrespondingobligation to the lender toreturn the identicalsecurity.Thesellerdoesnotimmediatelydeliverthesecuritiessoldandissaidtohaveashortpositioninthosesecuritiesuntildeliveryoccurs.AFundmayengageinashortsaleifatthetimeoftheshortsaleaFundownsorhastherighttoobtainwithout additional cost an equal amount of the security being sold short. This investment technique isknownasashortsale“againstthebox.”ItmaybeenteredintobyaFundto,forexample,lockinasalepriceforasecurity theFunddoesnotwish tosell immediately. IfaFundengages inashortsale, thecollateral for theshortpositionwillbesegregatedinanaccountwithaFund’scustodianorqualifiedsub-custodian.Nomorethan10%ofaFund’snetassets(takenatcurrentvalue)maybeheldascollateralforshortsalesagainsttheboxatanyonetime.

AFundmaymakea short sale as a hedge,when it believes that the price of a securitymaydecline,

causingadecline in thevalueofasecurityownedby theFund (orasecurityconvertibleorexchangeable forsuchsecurity).Insuchcase,anyfuturelossesintheFund’slongpositionshouldbeoffsetbyagainintheshortpositionand,conversely,anygain in the longpositionshouldbe reducedbya loss in theshortposition.Theextenttowhichsuchgainsorlossesarereducedwilldependupontheamountofthesecuritysoldshortrelativeto theamountaFundowns.Therearecertainadditional transactioncostsassociatedwithshortsalesagainstthebox,buttheFundsendeavortooffsetthesecostswiththeincomefromtheinvestmentofthecashproceedsofshortsales.

IfaFundeffectsashortsaleofsecuritiesatatimewhenithasanunrealizedgainonthesecurities,itmay

berequiredtorecognizethatgainasifithadactuallysoldthesecurities(asa“constructivesale”)onthedateiteffectstheshortsale.However,suchconstructivesaletreatmentmaynotapplyiftheFundclosesouttheshortsalewithsecuritiesother than theappreciatedsecuritiesheldat the timeof theshortsaleand ifcertainotherconditionsaresatisfied.UncertaintyregardingthetaxconsequencesofeffectingshortsalesmaylimittheextenttowhichaFundmayeffectshortsales.

ShortSales(excludingShortSales“AgainsttheBox”).AFundmaysellsecuritiesshort.Ashortsaleisa

transactioninwhichaFundsellssecuritiesitdoesnotowninanticipationofadeclineinthemarketpriceofthesecurities.

Todeliverthesecuritiestothebuyer,aFundmustarrangethroughabrokertoborrowthesecuritiesand,

insodoing,theFundbecomesobligatedtoreplacethesecuritiesborrowedattheirmarketpriceatthetimeofreplacement,whatever thatpricemaybe.AFundwillmakeaprofitor incura lossasa resultofashortsaledependingonwhetherthepriceofthesecuritiesdecreasesorincreasesbetweenthedateoftheshortsaleandthedateonwhichtheFundpurchasesthesecuritytoreplacetheborrowedsecuritiesthathavebeensold.Theamountofanylosswouldbeincreased(andanygaindecreased)byanypremiumorinterestaFundisrequiredtopayinconnectionwithashortsale.

AFund’sobligationtoreplacethesecuritiesborrowedinconnectionwithashortsalewillbesecuredby

cashor liquidsecuritiesdepositedascollateralwith thebroker. Inaddition,eachFundplaces inasegregatedaccount with its custodian or a qualified sub-custodian an amount of cash or liquid securities equal to thedifference,ifany,between(i)themarketvalueofthesecuritiessoldatthetimetheyweresoldshortand(ii)anycashorliquidsecuritiesdepositedascollateralwiththebrokerinconnectionwiththeshortsale(notincludingtheproceedsoftheshortsale).Untilitreplacestheborrowedsecurities,aFundwillmaintainthesegregatedaccountdailyatalevelsothat(a)theamountdepositedintheaccountplustheamountdepositedwiththebroker(notincludingtheproceedsfrom

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 theshortsale)willequalthecurrentmarketvalueofthesecuritiessoldshortand(b)theamountdepositedintheaccountplustheamountdepositedwith thebroker(not includingtheproceedsfromtheshortsale)willnotbelessthanthemarketvalueofthesecuritiesatthetimetheyweresoldshort.”

PORTFOLIOTURNOVER

EachFundmay engage in a high level of trading in seeking to achieve its investment objectives. Theportfolio turnover rate foreachFund iscalculatedbydividing the lesserof thepurchasesorsalesofportfolioinvestmentsforthereportingperiodbythemonthlyaveragevalueoftheportfolioinvestmentsownedduringthereportingperiod.A100%portfolioturnoverrateresults,forexample,iftheequivalentsofallthesecuritiesineachFund’s portfolio are replaced in a one-year period. The calculation excludes all securities, including options,whosematuritiesorexpirationdatesatthetimeofacquisitionareoneyearorless.Portfolioturnovermayvarygreatly from year to year as well as within a particular year, andmay be affected by cash requirements forredemption or shares. Each Fund is not restricted by policy with regard to portfolio turnover and will makechanges in its investmentportfolio from time to timeasbusinessandeconomic conditionsaswell asmarketpricesmaydictate.PortfolioturnoverfortheFundsincreasedduringthelastfiscalyearbecausethemodelsthattheAdviseremploysidentifiedsignificantchangesinmarkettrendswhichledtoagreaternumberoftradesbeingexecuted.

ThefollowingtabledisplaystheportfolioturnoverratesfortheFundsforthefiscalyearsendedMarch31:

FUND PortfolioTurnoverRates2019 2018

NewfoundRiskManagedGlobalSectorsFund 318% 87%NewfoundMulti-AssetIncomeFund 347% 143%NewfoundRiskManagedU.S.SectorsFund 360% 137%INVESTMENTRESTRICTIONS

TheFundshaveadoptedthefollowinginvestmentrestrictionsthatmaynotbechangedwithoutapprovalbya"majorityoftheoutstandingshares"oftheFundswhich,asusedinthisSAI,meansthevoteofthelesserof(a)67%ormoreof thesharesof theFundsrepresentedatameeting, if theholdersofmore than50%of theoutstandingsharesoftheFundsarepresentorrepresentedbyproxy,or(b)morethan50%oftheoutstandingsharesoftheFunds.TheFundsmaynot:1. Issue senior securities. This limitation is not applicable to activities that may be deemed to involve the

issuanceorsaleofaseniorsecuritybytheFunds,providedthattheFunds'engagementinsuchactivitiesisconsistent with or permitted by the 1940 Act the rules and regulations promulgated thereunder orinterpretationsoftheSECoritsstaff;

2. Borrowmoney, except (a) from a bank, provided that immediately after such borrowing there is an asset

coverage of 300% for all borrowings of each Fund; or (b) from a bank or other persons for temporarypurposesonly,providedthatsuchtemporaryborrowingsare inanamountnotexceeding5%of theFunds'total assets at the time when the borrowing is made. This limitation does not preclude the Funds fromenteringintoreverserepurchasetransactions,providedthattheFundshas

25

 anassetcoverageof300%forallborrowingsandrepurchasecommitmentsoftheFundspursuanttoreverserepurchasetransactions;

3. Purchase securities on margin, participate on a joint or joint and several basis in any securities trading

account,orunderwritesecurities.(ThisdoesnotprecludetheFundsfromobtainingsuchshort-termcreditasmaybenecessaryfortheclearanceofpurchasesandsalesofitsportfoliosecurities,andexcepttotheextentthat theFundsmaybedeemedanunderwriterunder theSecuritiesAct,byvirtueofdisposingofportfoliosecurities);

4. Purchase or sell real estate or interests in real estate. This limitation is not applicable to investments in

marketable securities that are secured by or represent interests in real estate. This limitation does notpreclude theFunds from investing inmortgage-relatedsecuritiesor investing incompaniesengaged in thereal estate business or that have a significant portion of their assets in real estate (including real estateinvestmenttrusts);

5. Invest 25%ormore of themarket value of its assets in the securities of companies engaged in any one

industry. (This does not apply to investment in the securities of the U.S. Government, its agencies orinstrumentalities);

6. Purchaseorsellcommodities(unlessacquiredasaresultofownershipofsecuritiesorotherinvestmentsor

throughcommodityforwardcontracts,futurescontractsoroptions),exceptthattheFundsmaypurchaseandsell forwardand futures contracts andoptions to the full extent permittedunder the1940Act, sell foreigncurrencycontractsinaccordancewithanyrulesoftheCFTC,investinsecuritiesorotherinstrumentsbackedbycommodities,andinvestincompaniesthatareengagedinacommoditiesbusinessorhaveasignificantportionoftheirassetsincommodities;or

7. Make loans toothers,except (a) through thepurchaseofdebtsecurities inaccordancewith its investment

objectivesandpolicies,(b)totheextenttheentryintoarepurchaseagreementisdeemedtobealoan,and(c)byloaningportfoliosecurities.

Withrespectto interpretationsoftheSECor itsstaffdescribedinparagraphnumber1and6above,the

SECanditsstaffhaveidentifiedvarioussecuritiestradingpracticesandderivativeinstrumentsusedbymutualfundsthatgiverisetopotentialseniorsecurityissuesunderSection18(f)ofthe1940Act.However,ratherthanrigidlydeemingallsuchpracticesasimpermissibleformsofissuinga"seniorsecurity"underSection18(f),theSECanditsstaffthroughinterpretivereleases,includingInvestmentCompanyActReleaseNo.10666(April18,1979),andno-actionlettershasdevelopedanevolvingseriesofmethodsbywhichafundmayaddressseniorsecurityissues.Inparticular,thecommonthemeinthislineofguidancehasbeentousemethodsof"covering"fundobligations thatmightotherwisecreateaseniorsecurity-typeobligationbyholdingsufficient liquidassetsthat permit a fund tomeet potential trading and derivative-related obligations. Thus, a potential Section 18(f)seniorsecuritylimitationisnotapplicabletoactivitiesthatmightbedeemedtoinvolveaformoftheissuanceorsaleofaseniorsecuritybyeachFund,provided thateachFund'sengagement insuchactivities isconsistentwith or permitted by Section 18 of the 1940 Act, the rules and regulations promulgated thereunder orinterpretationsoftheSECoritsstaff.

EachFundobservesthefollowingpolicies,whicharenotdeemedfundamentalandwhichmaybechanged

withoutshareholdervote.TheFundsmaynot:1. Investinanyissuerforpurposesofexercisingcontrolormanagement;2. Investinsecuritiesofotherinvestmentcompaniesexceptaspermittedunderthe1940Act;3. Invest, in theaggregate,morethan15%of itsnetassets,measuredat timeofpurchase, insecuritieswith

legal or contractual restrictions on resale, securities, which are not readily marketable and repurchaseagreementswithmorethansevendaystomaturity;or

26

 4. Mortgage, pledge, hypothecate or in anymanner transfer, as security for indebtedness, any assets of the

Fundsexceptasmaybenecessaryinconnectionwithborrowingsdescribedin limitation(2)above.Margindeposits,security interests, liensandcollateralarrangementswithrespecttotransactionsinvolvingoptions,futures contracts, short sales and other permitted investments and techniques are not deemed to be amortgage,pledgeorhypothecationofassetsforpurposesofthislimitation.

IfarestrictionontheFunds'investmentsisadheredtoatthetimeaninvestmentismade,asubsequent

change in the percentage of Fund assets invested in certain securities or other instruments, or change inaverage duration of the Funds' investment portfolio, resulting from changes in the value of the Funds' totalassets, will not be considered a violation of the restriction; provided, however, that the asset coveragerequirementapplicabletoborrowingsshallbemaintainedinthemannercontemplatedbyapplicablelaw.INVESTMENTADVISER

TheAdviser.NewfoundResearchLLC,POBox81256,WellesleyHills,Massachusetts02481,servesas

investment adviser to the Funds. Subject to the oversight of the Board, the Adviser is responsible formanagementoftheFunds'investmentportfolios.TheAdviserisresponsibleforselectingtheFunds'investmentsaccordingtotheFunds'investmentobjectives,policiesandrestrictions.TheAdviserwasestablishedin2008forthepurposeofdevelopingquantitativeinvestmentmodelsandlicensingdatafromthesemodelstoinstitutions.As of March 31, 2019, the Adviser had approximately $940 million under management (inclusive of modellicensing arrangements and assets invested in the Adviser’s strategies throughUMA platforms and separateaccounttypearrangements).

The Advisory Agreement for the Funds was renewed by the Board of Trustees at a meeting held on

February20-21,2019.Pursuanttoaninvestmentadvisoryagreement(the“AdvisoryAgreement”),theFundspaytheAdviser,on

amonthlybasis,anadvisoryfee.ThefollowingtablesetsforththeannualmanagementfeeratepayablebytheFunds to theAdviserpursuant to theAdvisoryAgreement,expressedasapercentageof the relevantFund’saveragedailynetassets:

Fund AdvisoryFee

NewfoundRiskManagedGlobalSectorsFund 0.79%NewfoundMulti-AssetIncomeFund 0.69%NewfoundRiskManagedU.S.SectorsFund 0.79%

(1)EffectiveApril1,2019,theAdviseragreedtoreducetheadvisoryfeefortheNewfoundRiskManagedGlobal

SectorsFundfrom1.15%to0.79%andtheNewfoundRiskManagedU.S.SectorsFundfrom0.95%to0.79%.

(2)EffectiveAugust31,2018,theAdviseragreedtoreducetheadvisoryfeefortheNewfoundMulti-AssetIncomeFundfrom1.00%to0.69%.

TheAdviserhascontractuallyagreedtowaiveitsfeesandreimburseexpensesoftheFunds,atleastuntil

July31,2021totheextentnecessarytoensurethatTotalAnnualFundOperatingExpensesAfterFeeWaiverand Reimbursement (exclusive of front-end or contingent deferred loads; brokerage fees and commissions,acquired fund feesandexpenses; borrowing costs (suchas interest anddividendexpenseon securities soldshort);taxes;andextraordinaryexpenses,suchaslitigation

27

 expenses(whichmay include indemnificationofFundofficersandTrustees,andcontractual indemnificationofFundserviceproviders(otherthantheAdviser)))willnotexceedthepercentages,showninthetablebelow,ofaverage daily net assets of each class share of the Funds (the “Expense Limitation Agreement”). These feewaiversandexpensereimbursementsaresubjecttopossiblerecoupmentfromtheFundswithinthethreeyearsafter the fees have been waived or reimbursed) if such recoupment can be achieved within the foregoingexpense limitsorwithin theexpense limits inplaceat thetimeofrecoupment,whichever is lower.ThiswaivermaybeterminatedonlybytheBoard,on60days’writtennoticetotheAdviser.FeewaiverandreimbursementarrangementscandecreaseaFund'sexpensesandeachFund’sexpenselimitationisshownbelow:

Fund ExpenseLimitation

NewfoundRiskManagedGlobalSectorsFund ClassA 1.75%ClassI 1.50%

NewfoundMulti-AssetIncomeFundClassA 1.60% ClassI 1.35%

NewfoundRiskManagedU.S.SectorsFund ClassA 1.50%ClassI 1.25%

ThefollowingtabledisplaystheadvisoryfeesthatwereincurredbytheFundsduringthefiscalyearendedMarch31,2019:

Fund FeesEarnedbytheAdviser

AdvisoryFeesWaived

NetFeesEarnedbytheAdviser

FundExpensesReimbursedbytheAdviser

NewfoundRiskManagedGlobalSectorsFund $583,182 $116,887 $466,295 $0

NewfoundMulti-AssetIncomeFund $536,051 $30,214 $505,837 $0

NewfoundRiskManagedU.S.SectorsFund $462,961 $147,404 $315,557 $0ThefollowingtabledisplaystheadvisoryfeesthatwereincurredbytheFundsduringthefiscalyearended

March31,2018:

Fund FeesEarnedbytheAdviser

AdvisoryFeesWaived

NetFeesEarnedbythe

Adviser

FundExpensesReimbursedbytheAdviser

NewfoundRiskManagedGlobalSectorsFund $598,780 $109,271 $489,509 $0

NewfoundMulti-AssetIncomeFund $757,861 $32,177 $725,684 $0

28

 NewfoundRiskManagedU.S.

SectorsFund $342,264 $121,599 $220,665 $0

ThefollowingtabledisplaystheadvisoryfeesthatwereincurredbytheFundsduringthefiscalyearendedMarch31,2017:

Fund FeesEarnedbytheAdviser

AdvisoryFeesWaived

NetFeesEarnedbytheAdviser

FundExpensesReimbursedbythe

AdviserNewfoundRiskManagedGlobalSectorsFund

$619,365 $173,971 $445,394 $0

NewfoundMulti-AssetIncomeFund $352,771 $74,345 $278,426 $0

NewfoundRiskManagedU.S.Sectors

Fund$135,737 $115,735 $20,002 $0

PORTFOLIOMANAGERS

PortfolioManagers.As described in the Prospectus, the portfolio managers (the “Portfolio Managers”)

listedbelowareresponsibleforthemanagementoftheFundsand,asofMarch31,2019,otheraccountsaresetforthinthefollowingtables.

PortfolioManager

OtherRegisteredInvestmentCompanies

OtherPooledInvestmentVehicles

OtherAccounts

Number TotalAssets Number TotalAssets Number TotalAssetsCoreyHoffstein None $0 None $0 6 $603,000NathanFaber None $0 None $0 6 $603,000Oftheaccountsabove,thefollowingaresubjecttoperformance-basedfees.

PortfolioManager OtherRegisteredInvestmentCompanies OtherPooledInvestment

Vehicles OtherAccounts

Number TotalAssets Number TotalAssets Number TotalAssetsCoreyHoffstein None $0 None $0 None $0NathanFaber None $0 None $0 None $0

ConflictsofInterest.

As indicated in the table above, the Portfolio Managersmaymanage numerous accounts for multipleclients. These accountsmay include registered investment companies, other types of pooled accounts (e.g.,collectiveinvestmentfunds),andseparateaccounts(i.e.,accountsmanagedonbehalfofindividualsorpublicorprivate institutions). The Portfolio Managers make investment decisions for each account based on theinvestmentobjectivesandpoliciesandotherrelevantinvestment

29

 considerationsapplicabletothatportfolio.

WhenaPortfolioManagerhasresponsibility formanagingmore thanoneaccount,potentialconflictsof

interestmayarise.Thoseconflictscould includepreferential treatmentofoneaccountoverothers in termsofallocationof resourcesorof investmentopportunities.For instance, theAdvisermayreceive fees fromcertainaccountsthatarehigherthanthefeeitreceivesfromtheFunds.Inthisinstance,aPortfolioManagermayhavean incentive to favor the higher account over such Fund. The Adviser has adopted policies and proceduresdesigned to address these potential material conflicts. For instance, the Portfolio Managers are normallyresponsible for all accountswithin a certain investment discipline, and do not, absent special circumstances,differentiateamong thevariousaccountswhenallocatingresources.Additionally, theAdviserutilizesasystemforallocatinginvestmentopportunitiesamongportfoliosthatisdesignedtoprovideafairandequitableallocation.

Compensation.

Mr.Faber’scompensationfromtheAdviserconsistsofafixedsalary,variablebonus,retirementplansandotherarrangements.Mr.HoffsteinsharesintheprofitsoftheAdviserthroughhis50%indirectownershipoftheAdviser.

OwnershipofSecurities.AsofMarch31,2019,thePortfolioManagersownedthefollowingsecuritiesintheFunds:

DollarRangeofSharesBeneficiallyOwnedofthe:NameofPortfolioManager

NewfoundRiskManagedGlobalSectorsFund

NewfoundMulti-AssetIncomeFund

NewfoundRiskManagedU.S.SectorsFund

CoreyHoffstein $50,001-$100,000

$100,001-$500,000 None

NathanFaber $1-$10,000 $1-$10,000 NoneALLOCATIONOFBROKERAGE

Specificdecisions topurchaseorsellsecurities for theFundsaremadeby thePortfolioManagerswho

are employees of the Adviser. The Adviser is also responsible for the implementation of those decisions,includingtheselectionofbroker-dealerstoeffectportfoliotransactions,thenegotiationofcommissions,andtheallocationofprincipalbusinessandportfoliobrokerage.

In purchasing and selling the Funds’ portfolio securities, it is the Adviser’s policy to obtain quality

execution at the most favorable prices through responsible broker-dealers and, in the case of agencytransactions, at competitive commission rates where such rates are negotiable. However, under certainconditions,theFundsmaypayhigherbrokeragecommissionsinreturnforbrokerageandresearchservices.Inselectingbroker-dealerstoexecutetheFunds’portfoliotransactions,considerationisgiventosuchfactorsastheprice of the security, the rate of the commission, the size and difficulty of the order, the reliability, integrity,financial condition, general execution and operational capabilities of competing brokers and dealers, theirexpertiseinparticularmarketsandthebrokerageandresearch

30

 servicestheyprovidetotheAdviserortheFunds.ItisnotthepolicyoftheAdvisertoseekthelowestavailablecommission rate where it is believed that a broker or dealer charging a higher commission rate would offergreaterreliabilityorprovidebetterpriceorexecution.

Transactionsonstockexchangesinvolvethepaymentofbrokeragecommissions.Intransactionsonstock

exchanges in the United States, these commissions are negotiated. Traditionally, commission rates havegenerally not been negotiated on stock markets outside the United States. In recent years, however, anincreasingnumberofoverseasstockmarketshaveadoptedasystemofnegotiatedrates,althoughanumberofmarkets continue to be subject to an established schedule ofminimumcommission rates. It is expected thatequitysecuritieswillordinarilybepurchasedintheprimarymarkets,whetherover-the-counterorlisted,andthatlistedsecuritiesmaybepurchasedintheover-the-countermarketifsuchmarketisdeemedtheprimarymarket.Inthecaseofsecuritiestradedontheover-the-countermarkets,thereisgenerallynostatedcommission,buttheprice usually includes an undisclosed commission or markup. In underwritten offerings, the price includes adisclosed,fixedcommissionordiscount.

Forfixedincomesecurities,it isexpectedthatpurchasesandsaleswillordinarilybetransactedwiththe

issuer, the issuer’s underwriter, or with a primary market maker acting as principal on a net basis, with nobrokerage commission being paid by the Funds. However, the price of the securities generally includescompensation, which is not disclosed separately. Transactions placed through dealers who are serving asprimarymarketmakersreflectthespreadbetweenthebidandaskedprices.

Withrespecttoequityandfixedincomesecurities,theAdvisermayeffectprincipaltransactionsonbehalf

of the Fundswith a broker or dealer who furnishes brokerage and/or research services, designate any suchbrokerordealertoreceivesellingconcessions,discountsorotherallowancesorotherwisedealwithanysuchbrokerordealer in connectionwith theacquisitionof securities inunderwritings.Theprices theFundspay tounderwritersofnewly-issuedsecuritiesusually includeaconcessionpaidbythe issuer to theunderwriter.TheAdvisermayreceiveresearchservicesinconnectionwithbrokeragetransactions,includingdesignationsinfixedpriceofferings.

TheAdviser receivesawide rangeof researchservices frombrokersanddealerscovering investment

opportunities throughout the world, including information on the economies, industries, groups of securities,individualcompanies,statistics,politicaldevelopments, technicalmarketaction,pricingandappraisalservices,andperformanceanalysesofallthecountriesinwhichtheFunds’portfolioislikelytobeinvested.TheAdvisercannotreadilydeterminetheextenttowhichcommissionschargedbybrokersreflectthevalueoftheirresearchservices, but brokers occasionally suggest a level of business they would like to receive in return for thebrokerage and research services they provide. To the extent that research services of value are provided bybrokers, the Adviser may be relieved of expenses, which it might otherwise bear. In some cases, researchservicesaregeneratedbythirdpartiesbutareprovidedtotheAdviserbyorthroughbrokers.

Certain broker-dealers, which provide quality execution services, also furnish research services to the

Adviser.TheAdviserhasadoptedbrokerageallocationpoliciesembodyingtheconceptsofSection28(e)oftheSecuritiesExchangeActof1934,whichpermitsaninvestmentadvisertocauseitsclientstopayabrokerwhichfurnishes brokerage or research services a higher commission than that whichmight be charged by anotherbrokerwhichdoesnotfurnishbrokerageorresearchservices,orwhichfurnishesbrokerageorresearchservicesdeemed to be of lesser value, if such commission is deemed reasonable in relation to the brokerage andresearch services provided by the broker, viewed in terms of either that particular transaction or the overallresponsibilitiesoftheAdviserwithrespectto

31

 the accounts as to which it exercises investment discretion. Accordingly, the Adviser may assess thereasonablenessofcommissionsinlightofthetotalbrokerageandresearchservicesprovidedbyeachparticularbroker.

Portfolio securitieswill notbepurchased fromor sold to theAdviser,or thedistributor,oranyaffiliated

personofanyofthemactingasprincipal,excepttotheextentpermittedbyruleororderoftheSEC.ThetablebelowprovidesinformationaboutthebrokeragefeesincurredbytheFundsforthefiscalyearendedMarch31,2019:

Fund BrokerageCommissions

NewfoundRiskManagedGlobalSectorsFund $48,513 NewfoundMulti-AssetIncomeFund $123,554 NewfoundRiskManagedU.S.SectorsFund $62,065

TheBrokerageCommissionspaidbytheFundsincreasedduringthelastfiscalyearbecausethemodels

thattheAdviseremploysidentifiedsignificantchangesinmarkettrendswhichledtoagreaternumberoftradesbeingexecuted.

ThetablebelowprovidesinformationaboutthebrokeragefeesincurredbytheFundsforthefiscalyear

endedMarch31,2018:

Fund BrokerageCommissionsNewfoundRiskManagedGlobalSectorsFund $14,295 NewfoundMulti-AssetIncomeFund $78,389 NewfoundRiskManagedU.S.SectorsFund $29,389

ThetablebelowprovidesinformationaboutthebrokeragefeesincurredbytheFundsforthefiscalyear

endedMarch31,2017:

Fund BrokerageCommissionsNewfoundRiskManagedGlobalSectorsFund $13,273 NewfoundMulti-AssetIncomeFund $38,818 NewfoundRiskManagedU.S.SectorsFund $12,986

32

 POLICIESANDPROCEDURESFORDISCLOSUREOFPORTFOLIOHOLDINGS

TheTrusthasadoptedpoliciesandproceduresthatgovernthedisclosureoftheFunds'portfolioholdings.These policies and procedures are designed to ensure that such disclosure is in the best interests of Fundshareholders.

It is the Trust's policy to: (1) ensure that any disclosure of portfolio holdings information is in the best

interestofTrustshareholders;(2)protecttheconfidentialityofportfolioholdingsinformation;(3)haveproceduresin place to guard against personal trading based on the information; and (4) ensure that the disclosure ofportfolio holdings information does not create conflicts between the interests of the Trust's shareholders andthoseoftheTrust'saffiliates.

TheFundsdisclosetheirportfolioholdingsbymailingtheannualandsemi-annualreportstoshareholders

approximatelytwomonthsaftertheendofthefiscalyearandsemi-annualperiod.Inaddition,theFundsdisclosetheirportfolioholdingsreportsonFormsN-CSRandFormN-Qtwomonthsaftertheendofeachquarter/semi-annualperiod.

TheFunds’portfolioholdingsasof theendofeachcalendarmontharepostedon theFunds’website,

http://www.thinknewfoundfunds.com no later than thirty days after the end of each month. This postedinformationgenerallyremainsaccessibleuntiltheFundsposttheinformationforthenextcalendarmonthtotheFunds’ website. The Fundsmay choose to post their portfolio holdings on amore frequent basis, especiallyduring periods of highmarket volatility. These off-cycle disclosures will be replaced with the normalmonthlyreleasewhenavailable.

Under limitedcircumstances,asdescribedbelow, theFunds'portfolioholdingsmaybedisclosed to,or

knownby,certain thirdparties inadvanceof their filingwith theSEConFormN-CSRorFormPORT.Ineachcase,adeterminationhasbeenmadebytheTrust’sChiefComplianceOfficerthatsuchadvancedisclosureissupportedbyalegitimatebusinesspurposeoftheFundsandthattherecipientissubjecttoadutytokeeptheinformationconfidential,includingadutynottotradeonmaterial,non-publicinformation.NewfoundResearchLLC.Personnelof theAdviser, includingpersonnelresponsibleformanagingtheFunds'portfolio,mayhave fulldailyaccess toFundportfolioholdingssince that information isnecessary inorder forthemtoprovidemanagement,administrative,andinvestmentservicestotheFunds.Asrequiredforpurposesofanalyzing the impactofexistingand futuremarketchangeson theprices,availability,demandand liquidityofsuchsecurities,aswellasfortheassistanceofthePortfolioManagersinthetradingofsuchsecurities,Adviserpersonnelmayalsoreleaseanddiscusscertainportfolioholdingswithvariousbroker-dealers.GeminiFundServices,LLC.GeminiFundServices,LLCisthetransferagent,fundaccountant,administratorandcustodyadministrator for theFunds; therefore, itspersonnelhave full dailyaccess to theFunds'portfolioholdingssincethatinformationisnecessaryinorderforthemtoprovidetheagreed-uponservicesfortheTrust.MUFGUnionBank,NationalAssociation.MUFGUnionBank,NationalAssociationiscustodianfortheFunds;therefore,itspersonnelhavefulldailyaccesstotheFunds'portfolioholdingssincethatinformationisnecessaryinorderforthemtoprovidetheagreed-uponservicesfortheTrust.

33

 

RSMUSLLP.RSMUSLLPistheFunds'independentregisteredpublicaccountingfirm;therefore,itspersonnelhaveaccesstotheFunds'portfolioholdingsinconnectionwithauditingoftheFunds'annualfinancialstatementsandprovidingotheraudit,taxandrelatedservicesfortheFunds.

Counsel to the Trust and Counsel to the Independent Trustees. Counsel to the Trust, Counsel to theIndependentTrusteesandtheirrespectivepersonnelhaveaccesstotheFunds’portfolioholdingsinconnectionwiththereviewoftheFunds’annualandsemi-annualshareholderreportsandSECfilings.AdditionstoListofApprovedRecipients

TheTrust’sChiefComplianceOfficeristhepersonresponsible,andwhosepriorapprovalisrequired,foranydisclosureoftheFunds'portfoliosecuritiesatanytimeortoanypersonsotherthanthosedescribedabove.In such cases, the recipientmust have a legitimate business need for the information in connectionwith theoperationoradministrationof theFunds,asdeterminedby theTrust’sChiefComplianceOfficer,andmustbesubjecttoadutytokeeptheinformationconfidentialandnottradeonanymaterial,non-publicinformation.Therearenoongoingarrangements inplacewith respect to thedisclosureofportfolioholdings. Innoevent shall aFund, the Adviser, or any other party receive any direct or indirect compensation in connection with thedisclosureofinformationaboutaFund'sportfolioholdings.ComplianceWithPortfolioHoldingsDisclosureProcedures

TheTrust’sChiefComplianceOfficerwillreportperiodicallytotheBoardwithrespecttocompliancewiththeFunds'portfolioholdingsdisclosureprocedures,andfromtimetotimewillprovidetheBoardanyupdatestotheportfolioholdingsdisclosurepoliciesandprocedures.

There isnoassurance that theTrust'spoliciesondisclosureofportfolioholdingswillprotect theFundsfromthepotentialmisuseofholdingsinformationbyindividualsorfirmsinpossessionofthatinformation.

OTHERSERVICEPROVIDERSFundAdministration,FundAccountingandTransferAgentServices

GeminiFundServices,LLC(the“Administrator”or“GFS”),whichhasitsprincipalofficeat80ArkayDrive,Hauppauge,NewYork11788,servesasadministrator,fundaccountantandtransferagentforFundpursuanttoaFundServicesAgreement(the“Agreement”)withtheTrustandsubjecttothesupervisionoftheBoard.GFSisprimarily in thebusinessofprovidingadministrative, fundaccountingand transferagentservices to retailandinstitutionalmutualfunds.GFSisanaffiliateofthedistributor.GFSmayalsoprovidepersonstoserveasofficersoftheFunds.Suchofficersmaybedirectors,officersoremployeesofGFSoritsaffiliates.

TheAgreement becameeffective onFebruary 23, 2012and remained in effect for two years from the

applicableeffectivedatefortheFunds,andwillcontinueineffectforsuccessivetwelve-monthperiodsprovidedthatsuchcontinuance isspecificallyapprovedat leastannuallybyamajorityof theBoard. TheAgreement isterminablebytheBoardorGFSon90days’writtennoticeandmaybeassignedbyeitherparty,providedthattheTrustmaynotassignthisagreementwithoutthepriorwritten

34

 consentofGFS.TheAgreementprovidesthatGFSshallbewithoutliabilityforanyactionreasonablytakenoromittedpursuanttotheAgreement.

UndertheAgreement,GFSperformsadministrativeservices,including:(1)monitoringtheperformance

ofadministrativeandprofessionalservicesrenderedtotheTrustbyothersserviceproviders;(2)monitoringFundholdings andoperations for post-trade compliancewith theFunds’ registration statement andapplicable lawsand rules; (3) preparing and coordinating the printing of semi-annual and annual financial statements; (4)preparing selected management reports for performance and compliance analyses; (5) preparing anddisseminatingmaterialsforandattendingandparticipatinginmeetingsoftheBoard;(6)determiningincomeandcapital gains available for distribution and calculating distributions required to meet regulatory, income, andexcisetaxrequirements;(7)reviewingtheTrust'sfederal,state,andlocaltaxreturnsaspreparedandsignedbytheTrust'sindependentpublicaccountants;(8)preparingandmaintainingtheTrust'soperatingexpensebudgettodetermineproperexpenseaccrualstobechargedtotheFundstocalculateitsdailyNAV;(9)assistinginandmonitoringthepreparation,filing,printingandwhereapplicable,disseminationtoshareholdersofamendmentstotheTrust’sRegistrationStatementonFormN-1A,periodicreports to theTrustees,shareholdersandtheSEC,noticespursuanttoRule24f-2,proxymaterialsandreportstotheSEConFormsN-CEN,N-CSR,N-QandN-PX; (10) coordinating the Trust's audits and examinations by assisting the Funds’ independent publicaccountants;(11)determining,inconsultationwithothers,thejurisdictionsinwhichsharesoftheTrustshallberegisteredorqualifiedforsaleandfacilitatesuchregistrationorqualification;(12)monitoringsalesofsharesandensure that the shares are properly and duly registered with the SEC; (13) monitoring the calculation ofperformancedatafortheFunds;(14)preparing,orcausingtobeprepared,expenseandfinancialreports;(15)preparingauthorizationforthepaymentofTrustexpensesandpay,fromTrustassets,allbillsoftheTrust;(16)providing information typically supplied in the InvestmentCompany industry to companies that trackor reportprice,performanceorotherinformationwithrespecttoinvestmentcompanies;(17)uponrequest,assistingtheFunds in the evaluation and selection of other service providers, such as independent public accountants,printers,EDGARprovidersandproxysolicitors(suchpartiesmaybeaffiliatesofGFS);and(18)performingotherservices, recordkeepingandassistancerelating to theaffairsof theTrustas theTrustmay, fromtime to time,reasonablyrequest.

GFS also provides the Funds with accounting services, including: (i) daily computing of NAV; (ii)

maintainingsecurityledgersandbooksandrecordsasrequiredbythe1940Act;(iii)producingtheFunds’listingofportfoliosecuritiesandgeneralledgerreports;(iv)reconcilingofaccountingrecords;(v)calculatingyieldandtotalreturnfortheFunds;(vi)maintainingcertainbooksandrecordsdescribedinRule31a-1underthe1940Act,andreconcilingaccountinformationandbalancesamongtheFunds’custodianandAdviser;and(vii)monitoringandevaluatingdailyincomeandexpenseaccruals,andsalesandredemptionsofsharesoftheFunds.

GFSalsoactsastransfer,dividenddisbursing,andshareholderservicingagentfortheFundspursuantto

the Agreement. Under the Agreement, GFS is responsible for administering and performing transfer agentfunctions, dividend distribution, shareholder administration, andmaintaining necessary records in accordancewithapplicablerulesandregulations.

FortheservicesrenderedtotheFundsbyGFS,theFundspaysGFSthegreaterofanannualminimum

fee or an asset based fee, which scales downward based upon net assets for fund administration, fundaccountingandtransferagencyservices.TheFundsalsopayGFSforanyout-of-pocketexpenses.

35

 ForthefiscalyearendedMarch31,2019,theFundsincurredthefollowingfees:

FundFor

AdministrationServices

ForFundAccountingServices

ForTransferAgencyServices

NewfoundRiskManagedGlobalSectorsFund $48,711 $35,369 $46,665NewfoundMulti-AssetIncomeFund $59,939 $43,206 $26,675NewfoundRiskManagedU.S.SectorsFund $47,516 $34,925 $34,410

ForthefiscalyearendedMarch31,2018,theFundsincurredthefollowingfees:

FundFor

AdministrationServices

ForFundAccountingServices

ForTransferAgencyServices

NewfoundRiskManagedGlobalSectorsFund $51,219 $35,346 $48,060NewfoundMulti-AssetIncomeFund $71,157 $43,115 $11,980NewfoundRiskManagedU.S.SectorsFund $37,601 $33,236 $17,259

ForthefiscalyearendedMarch31,2017,theFundsincurredthefollowingfees:

FundFor

AdministrationServices

ForFundAccountingServices

ForTransferAgencyServices

NewfoundRiskManagedGlobalSectorsFund $48,493 $33,464 $60,493NewfoundMulti-AssetIncomeFund $28,760 $24,357 $10,829NewfoundRiskManagedU.S.SectorsFund $17,156 $25,109 $10,182

Custodian

MUFGUnionBank,NationalAssociation,(the“Custodian”)locatedat350CaliforniaStreet,Suite2,San

Francisco,California94104,servesasthecustodianoftheFunds’assetspursuanttoacustodyagreement(the"CustodyAgreement") byandbetween theCustodianand theTrust onbehalf of theFunds.TheCustodian'sresponsibilities include safeguarding and controlling the Funds’ cash and securities, handling the receipt anddeliveryofsecurities,andcollectinginterestanddividendsontheFunds’investments.PursuanttotheCustodyAgreement, theCustodianalsomaintains original entry documents andbooks of record andgeneral ledgers;postscashreceiptsanddisbursements;andrecordspurchasesandsalesbaseduponcommunicationsfromtheAdviser.TheFundsmayemployforeignsub-custodiansthatareapprovedbytheBoardtoholdforeignassets.

SecuritiesLendingActivities

TheFundshaveenteredintoaSecuritiesLendingAuthorizationAgreementbetweentheTrust,onbehalfof each Fund, and Securities Finance Trust Company (“SFTC”), under which SFTC serves as each Fund’ssecurities lending agent. The dollar amounts of income and fees and compensation paid to the Funds’ andCustodianrelatedtotheFunds’respectivesecuritieslendingactivitiesduringfiscalyearendedMarch31,2019wereasfollows:

36

 

NewfoundRisk

ManagedGlobal

SectorsFund

Newfound

Mul�-Asset

IncomeFund

NewfoundRisk

ManagedU.S.

SectorsFund

Grossincomefromsecuri�eslendingac�vi�es(includingincomefromcash

collateralreinvestment) 1,308.25 254,865.23 97,401.39

Feesand/orcompensa�onforsecuri�eslendingac�vi�esandrelatedservices - - -

Feespaidtosecuri�eslendingagentfromarevenuesplit (715.26) (23,583.02) (3,878.96)

Feespaidforanycashcollateralmanagementservice(includingfeesdeducted

fromapooledcashcollateralreinvestmentvehicle)thatarenotincludedinthe

revenuesplit* - - -

Administra�vefeesnotincludedinrevenuesplit - - -

Indemnifica�onfeesnotincludedinrevenuesplit - - -

(Rebate)(paidtoborrower)/Premium(paidtolender) 2,268.06 (136,950.14) (78,006.57)

Otherfeesnotincludedinrevenuesplit - - -

Aggregatefees/compensa�onforsecuri�eslendingac�vi�es 1,552.80 (160,533.16) (81,885.53)

Netincomefromsecuri�eslendingac�vi�es 2,861.05 94,332.07 15,515.86

*TheFund’scashcollateralwasinvestedintheFidelityGovernmentMoneyMarketPortfolioandMorganStanleyPrimePortfolioduringthefiscalyearendedMarch31,2019.TheMilestoneTreasuryObligationsFundismanagedbyCLSInvestments,LLC.

The services provided by SFTC as securities lending agent are as follows: provide notification to

custodianandtoactwithregardtothelendingofavailablesecurities;marketavailablesecuritiesforsecuritieslending purposes and to solicit competitive bids; provide upon request, credit information about approvedborrowers and other institutions that may become approved borrowers and shall assist in analyzing thecreditworthinessofsuch institutions;createaspecificsectionon itsauctionwebsite that isaccessibleonlybyapprovedborrowersandothersuchentitiesasmaybeagreeduponformtimetotime;preparefinancialanalysisof bids received in the auction process and make recommendations; prepare or cause to be preparedtransactionalconfirmationinrespectofeachloaneffected;notifycustodianwheneveranavailablesecurityloanhasbeenagreedupon.

The services provided by SFTC as securities lending agent are as follows: provide notification tocustodianandtoactwithregardtothelendingofavailablesecurities;marketavailablesecuritiesforsecuritieslending purposes and to solicit competitive bids; provide upon request, credit information about approvedborrowers and other institutions that may become approved borrowers and shall assist in analyzing thecreditworthinessofsuch institutions;createaspecificsectionon itsauctionwebsite that isaccessibleonlybyapprovedborrowersandothersuchentitiesasmaybeagreeduponformtimetotime;preparefinancialanalysisof bids received in the auction process and make recommendations; prepare or cause to be preparedtransactionalconfirmationinrespectofeachloaneffected;notifycustodianwheneveranavailablesecurityloanhasbeenagreedupon.

ComplianceServicesNorthernLightsComplianceServices,LLC("NLCS"), locatedat80ArkayDrive,Hauppauge,NewYork

11788,anaffiliateofGFSandthedistributor,providesachiefcomplianceofficertotheTrustaswellasrelatedcompliance services pursuant to a consulting agreement between NLCS and the Trust. NLCS’s complianceservicesconsist primarilyof reviewingandassessing thepoliciesandproceduresof theTrustand its serviceproviderspertainingtocompliancewithapplicablefederal

37

 securitieslaws,includingRule38a-1underthe1940Act.FortheservicesrenderedtotheFundsbytheNLCS,theFundspayNLCSanannual fixed feeandanassetbased fee,whichscalesdownwardbaseduponeachFund’snetassets.ThetablebelowprovidesinformationaboutcomplianceservicefeesincurredbytheFundsforthefiscalyearendedMarch31,2019:

Fund ComplianceServiceFees

NewfoundRiskManagedGlobalSectorsFund $10,006NewfoundMulti-AssetIncomeFund $11,965NewfoundRiskManagedU.S.SectorsFund $10,230

ForthefiscalyearendedMarch31,2018,theFundsincurredthefollowingfees:

Fund ComplianceServiceFeesNewfoundRiskManagedGlobalSectorsFund $10,207NewfoundMulti-AssetIncomeFund $10,350NewfoundRiskManagedU.S.SectorsFund $10,556

ForthefiscalyearendedMarch31,2017,theFundsincurredthefollowingfees:

Fund ComplianceServiceFeesNewfoundRiskManagedGlobalSectorsFund $17,071NewfoundMulti-AssetIncomeFund $10,248NewfoundRiskManagedU.S.SectorsFund $5,156

Effective February 1, 2019, NorthStar Financial ServicesGroup, LLC, the parent company ofGFS, NorthernLightsDistributors,LLC,andNorthernLightsComplianceServices,LLC(collectively,the“GeminiCompanies”),sold its interest in theGeminiCompanies toa thirdpartyprivateequity firm thatcontemporaneouslyacquiredUltimusFundSolutions,LLC(anindependentmutualfundadministrationfirm)anditsaffiliates(collectively,the“Ultimus Companies”). As a result of these separate transactions, the Gemini Companies and the UltimusCompaniesarenowindirectlyownedthroughacommonparententity,TheUltimusGroup,LLC.

INDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM

TheFundshaveselectedRSMUSLLP,locatedat555SeventeenthStreet,Suite1000,Denver,Colorado80202,as its independent registeredpublicaccounting firm for thecurrent fiscalyear.RSMUSLLPperformsannualauditsoftheFunds’financialstatementsandprovidesotheraudit,taxandrelatedservicesfortheFunds.

LEGALCOUNSEL

ThompsonHineLLP,41SouthHighStreet,Suite1700,Columbus,Ohio43215servesastheTrust’slegalcounsel.

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 DISTRIBUTOR

Northern LightsDistributors, LLC, located at 17645WrightStreet,Suite 200,Omaha,Nebraska 68130(the“Distributor”)servesastheprincipalunderwriterandnationaldistributorforthesharesoftheFundspursuanttoanunderwritingagreementwith theTrust (the “UnderwritingAgreement”).TheDistributor is registeredasabroker-dealerunder theSecuritiesExchangeActof1934andeachstate’ssecurities lawsand isamemberofFINRA. The offering of the Funds’ shares are continuous. The Underwriting Agreement provides that theDistributor,asagentinconnectionwiththedistributionofFundshares,willusereasonableeffortstofacilitatethesaleoftheFunds’shares.

The Underwriting Agreement provides that, unless sooner terminated, it will continue in effect for twoyears initiallyandthereaftershallcontinuefromyear toyear,subject toannualapprovalby(a) theBoardoravoteofamajorityoftheoutstandingshares,and(b)byamajorityoftheTrusteeswhoarenotinterestedpersonsof theTrustorof theDistributorbyvotecast inpersonatameetingcalled for thepurposeofvotingonsuchapproval.

TheUnderwritingAgreementmaybe terminatedby theFundsatany time,without thepaymentofany

penalty,byvoteofamajorityoftheTrust’sentireBoardorbyvoteofamajorityoftheoutstandingsharesoftheFundson60dayswrittennoticetotheDistributor,orbytheDistributoratanytime,withoutthepaymentofanypenalty,on60dayswrittennoticetotheFunds.TheUnderwritingAgreementwillautomaticallyterminateintheeventofitsassignment.

ThefollowingtablesetsforththetotalcompensationreceivedbytheDistributorfromtheFundsduringthe

fiscalyearendedMarch31,2019:

Fund

NetUnderwriting

Discountsand

Commissions

Compensationon

Redemptionsand

Repurchases

Brokerage

Commissions OtherCompensation

NewfoundRiskManagedGlobalSectorsFund-ClassA $494 $0 $0 *

NewfoundRiskManagedGlobalSectorsFund-ClassC $0 $0 $0 *

NewfoundMultiAssetIncomeFundClassA $71 $0 $0 *

NewfoundMultiAssetIncomeFundClassC $0 $0 $0 *

NewfoundRiskManagedUSSectorsFundClassA $1,250 $0 $0 *

NewfoundRiskManagedUSSectorsFundClassC $0 $0 $0 *

*TheDistributorreceived$14,672fromtheAdviserascompensationforitsdistributionservicestotheFunds.TheDistributoralsoreceives12b-1feesfromtheFundsasdescribedunderthefollowingsectionentitled“Rule12b-1Plan”.

Rule12b-1Plan

TheTrust,onbehalfoftheFunds,hasadoptedtheTrust’sMasterDistributionandShareholderServicing

PlanforClassAandClassCshares,pursuanttoRule12b-1underthe1940Act(eacha“Plan”,andcollectivelythe"Plans")pursuanttowhichtheFundsareauthorizedtopaytheDistributor,

39

 ascompensationforDistributor'saccountmaintenanceservicesunderthePlans,adistributionandshareholderservicing fee at the rate of up to 0.25% of each Fund’s average daily net assets attributable to theClass Asharesand1.00%ofeachFund’saveragedailynetassetsattributabletotheClassCshares.SuchfeesaretobepaidbytheFundsmonthly,oratsuchotherintervalsastheBoardshalldetermine.SuchfeesshallbebasedupontheFunds’averagedailynetassetsduringtheprecedingmonth,andshallbecalculatedandaccrueddaily.TheFundsmaypay fees to theDistributorata lesserrate,asagreeduponby theBoardofTrusteesandtheDistributor.ThePlansauthorizepaymentstotheDistributorascompensationforprovidingaccountmaintenanceservicestoFundshareholders, includingarrangingforcertainsecuritiesdealersorbrokers,administratorsandothers("Recipients")toprovidetheseservicesandpayingcompensationfortheseservices.

TheservicestobeprovidedbyRecipientsmayinclude,butarenotlimitedto,thefollowing:assistancein

theofferingandsaleofFundsharesandinotheraspectsofthemarketingofthesharestoclientsorprospectiveclients of the respective recipients; answering routine inquiries concerning the Funds; assisting in theestablishment and maintenance of accounts or sub-accounts in the Funds and in processing purchase andredemptiontransactions;makingtheFunds’ investmentplanandshareholderservicesavailable;andprovidingsuchotherinformationandservicestoinvestorsinsharesoftheFundsastheDistributorortheTrust,onbehalfoftheFunds,mayreasonablyrequest.ThedistributionservicesshallalsoincludeanyadvertisingandmarketingservicesprovidedbyorarrangedbytheDistributorwithrespecttotheFunds.

The Distributor is required to provide a written report, at least quarterly to the Board, specifying inreasonabledetail theamountsexpendedpursuant to thePlansandthepurposesforwhichsuchexpendituresweremade.Further,theDistributorwillinformtheBoardofanyRule12b-1feestobepaidbytheDistributortoRecipients.

ThePlansmaynotbeamendedtoincreasemateriallytheamountoftheDistributor'scompensationtobepaid by the Funds, unless such amendment is approved by the vote of amajority of the outstanding votingsecurities of the affected class of the Funds (as defined in the 1940 Act).Allmaterial amendmentsmust beapprovedbyamajorityoftheBoardandamajorityoftheTrusteesbyvotescastinpersonatameetingcalledforthepurposeofvotingonaPlan.During the termof thePlans, theselectionandnominationofnon-interestedTrusteesoftheTrustwillbecommittedtothediscretionofcurrentnon-interestedTrustees.TheDistributorwillpreservecopiesofthePlans,anyrelatedagreements,andallreports,foraperiodofnotlessthansixyearsfromthedateofsuchdocumentandforatleastthefirsttwoyearsinaneasilyaccessibleplace.

Anyagreement related to thePlanswill be inwritingandprovide that: (a) itmaybe terminatedby theTrustortheapplicableFundatanytimeuponsixtydays'writtennotice,withoutthepaymentofanypenalty,byvoteofamajorityoftheTrustees,orbyvoteofamajorityoftheoutstandingvotingsecuritiesoftheTrustortheFunds;(b)itwillautomaticallyterminateintheeventofitsassignment(asdefinedinthe1940Act);and(c)itwillcontinueineffectforaperiodofmorethanoneyearfromthedateofitsexecutionoradoptiononlysolongassuch continuance is specifically approved at least annually by amajority of the Board and amajority of theTrusteesbyvotescastinpersonatameetingcalledforthepurposeofvotingonsuchagreement.

ForthefiscalyearorperiodendedMarch31,2019,theFundsincurredthefollowingallocateddistribution

fees:

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Actual12b-1ExpendituresPaidbyNewfoundFundShares

DuringtheFiscalYearEndedMarch31,2019 NewfoundRisk

ManagedGlobalSectorsFund-ClassA

NewfoundMultiAssetIncomeFund

ClassA

NewfoundMultiAssetIncomeFundClassC*

NewfoundRiskManagedUSSectorsFund

ClassA

Advertising/Marketing None None None None Printing/Postage None None None None Paymenttodistributor $2,847 $7,507 $16,240 $693 Paymenttodealers $13,808 $83,180 $4,076 $17,928 Compensationtosalespersonnel None None None None Other $30 $86 $205 $6 Total $16,685 $90,773 $20,521 $18,627

*ClassCsharesoftheNewfoundMulti-AssetIncomeFundarenolongeravailableforsale.

DESCRIPTIONOFSHARES

EachshareofbeneficialinterestoftheTrusthasonevoteintheelectionofTrustees.CumulativevotingisnotauthorizedfortheTrust.Thismeansthattheholdersofmorethan50%ofthesharesvotingfortheelectionofTrusteescanelect100%oftheTrusteesiftheychoosetodoso,and,inthatevent,theholdersoftheremainingshareswillbeunabletoelectanyTrustees.

Shareholdersof theTrustandanyother futureseriesof theTrustwillvote in theaggregateandnotby

series except as otherwise required by law or when the Board determines that thematter to be voted uponaffectsonlytheinterestoftheshareholdersofaparticularseriesorclasses.MatterssuchaselectionofTrusteesare not subject to separate voting requirements andmay be acted upon by shareholders of theTrust votingwithoutregardtoseries.

The Trust is authorized to issue an unlimited number of shares of beneficial interest. Each share has

equaldividend,distributionandliquidationrights.TherearenoconversionorpreemptiverightsapplicabletoanysharesoftheFunds.Allsharesissuedarefullypaidandnon-assessable.CODEOFETHICS

TheTrust,theAdviserandtheDistributorhaveeachadoptedcodesofethicsunderRule17j-1underthe1940Actthatgovernsthepersonalsecuritiestransactionsoftheirboardmembers,officersandemployeeswhomayhaveaccesstocurrenttradinginformationoftheTrust.UnderthecodeofethicsadoptedbytheTrust,theTrusteesarepermittedtoinvestinsecuritiesthatmayalsobepurchasedbytheFunds.

Inaddition,theTrusthasadoptedacodeofethics,whichappliesonlytotheTrust'sexecutiveofficers(the

“Code”)toensurethattheseofficerspromoteprofessionalconductinthepracticeofcorporategovernanceandmanagement.Thepurposebehind theseguidelines is topromote(i)honestandethicalconduct, including theethicalhandlingofactualorapparentconflictsofinterestbetween

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 personalandprofessional relationships; (ii) full, fair,accurate, timely,andunderstandabledisclosure in reportsanddocumentsthataregistrantfileswith,orsubmitsto,theSECandinotherpubliccommunicationsmadebythe Funds; (iii) compliance with applicable governmental laws, rule and regulations; (iv) the prompt internalreporting of violations of the Code to an appropriate person or persons identified in the Code; and (v)accountabilityforadherencetotheCode.

PROXYVOTINGPOLICIES

TheBoardhasadoptedProxyVotingPoliciesandProcedures ("Policies")onbehalfof theTrust,whichdelegate the responsibility for voting proxies to theAdviser or its designee, subject to theBoard's continuingoversight.ThePoliciesrequirethattheAdviseroritsdesigneevoteproxiesreceivedinamannerconsistentwiththebestinterestsoftheFundsandshareholders.ThePoliciesalsorequiretheAdviseroritsdesigneetopresentto theBoard,at leastannually, theAdviser'sproxyvotingpolicies,or theproxyvotingpoliciesof theAdviser'sdesignee,andarecordofeachproxyvotedbytheAdviseror itsdesigneeonbehalfoftheFunds, includingareportontheresolutionofallproxiesidentifiedbytheAdviserasinvolvingaconflictofinterest.

WhereaproxyproposalraisesamaterialconflictbetweentheAdviser'sinterestsandtheFunds’interests,

theAdviserwillresolvetheconflictbyvotinginaccordancewiththepolicyguidelinesorattheclient'sdirectiveusingtherecommendationofanindependentthirdparty.Ifthethirdparty'srecommendationsarenotreceivedina timely fashion, theAdviserwillabstain fromvoting thesecuritiesheldby thatclient'saccount.Acopyof theAdviser'sproxyvotingpoliciesisattachedheretoasAppendixB.

InformationregardinghowtheFundsvotedproxiesduringthemostrecent12-monthperiodendedJune30 is available without charge, upon request, by calling toll free, 1-855-394-9777 and by accessing theinformationonproxyvotingfiledbytheFundsonFormN-PXontheSEC'swebsiteatwww.sec.gov.Inaddition,acopyoftheFunds’proxyvotingpoliciesandproceduresarealsoavailablebycalling1-855-394-9777andwillbesentwithinthreebusinessdaysofreceiptofarequest.PURCHASE,REDEMPTIONANDPRICINGOFFUNDSHARES

CalculationofSharePrice

As indicated in the Prospectus under the heading "How Shares Are Priced" the NAV of each Fund’sshares,byclass,isdeterminedbydividingthetotalvalueofthatFund'sportfolioinvestmentsandotherassets,lessanyliabilities,bythetotalnumberofsharesoutstandingoftheFund,byclass.

Generally, the Funds’ domestic securities (including underlying ETFs which hold portfolio securitiesprimarily listedon foreign (non-U.S.) exchanges) are valuedeachdayat the last quoted salespriceoneachsecurity’s primary exchange. Securities traded or dealt in upon one or more securities exchanges for whichmarketquotationsarereadilyavailableandnotsubjecttorestrictionsagainstresaleshallbevaluedatthelastquotedsalespriceontheprimaryexchangeor,intheabsenceofasaleontheprimaryexchange,atthemeanbetweenthecurrentbidandaskpricesonsuchexchange.SecuritiesprimarilytradedintheNASDAQNationalMarket System for whichmarket quotations are readily available shall be valued using the NASDAQOfficialClosingPrice.Ifmarketquotationsarenotreadilyavailable,securitieswillbevaluedattheirfairmarketvalueasdeterminedingoodfaithbythe

42

 Funds’ fair value committee in accordancewith procedures approved by the Board and as further describedbelow.Securities thatarenot tradedordealt inanysecuritiesexchange(whetherdomesticor foreign)andforwhichover-the-countermarketquotationsarereadilyavailablegenerallyshallbevaluedatthelastsalepriceor,intheabsenceofasale,atthemeanbetweenthecurrentbidandaskpriceonsuchover-the-countermarket.

Certainsecuritiesor investmentsforwhichdailymarketquotesarenotreadilyavailablemaybevalued,pursuanttoguidelinesestablishedbytheBoard,withreferencetoothersecuritiesorindices.Debtsecuritiesnottraded on an exchange may be valued at prices supplied by a pricing agent(s) based on broker or dealersuppliedvaluationsormatrixpricing,amethodofvaluingsecuritiesbyreferencetothevalueofothersecuritieswithsimilarcharacteristics,suchasrating,interestrateandmaturity.Short-terminvestmentshavingamaturityof60daysorlessmaybegenerallyvaluedatamortizedcostwhenitapproximatedfairvalue.

Exchange tradedoptionsare valuedat the last quoted sales price or, in the absenceof a sale, at themeanbetweenthecurrentbidandaskpricesontheexchangeonwhichsuchoptionsaretraded.Futuresandoptionson futuresare valuedat the settlement price determinedby theexchange.Other securities forwhichmarket quotes are not readily available are valued at fair value as determined in good faith by theBoard orpersonsactingat itsdirection.SwapagreementsandotherderivativesaregenerallyvalueddailybaseduponquotationsfrommarketmakersorbyapricingserviceinaccordancewiththevaluationproceduresapprovedbytheBoard.

Under certain circumstances, each Fundmay use an independent pricing service to calculate the fairmarketvalueofforeignequitysecuritiesonadailybasisbyapplyingvaluationfactorstothelastsalepriceorthemeanpriceasnotedabove.The fairmarketvaluessuppliedby the independentpricingservicewill generallyreflectmarkettradingthatoccursafterthecloseoftheapplicableforeignmarketsofcomparablesecuritiesorthevalueofother instruments thathaveastrongcorrelation to the fair-valuedsecurities.The independentpricingservicewillalsotakeintoaccountthecurrentrelevantcurrencyexchangerate.Asecuritythatisfairvaluedmaybevaluedatapricehigherorlowerthanactualmarketquotationsorthevaluedeterminedbyotherfundsusingtheirown fair valuationprocedures.Because foreignsecuritiesmay tradeondayswhenFundsharesarenotpriced,thevalueofsecuritiesheldbytheFundscanchangeondayswhenFundsharescannotberedeemedorpurchased. In the event that a foreign security’s market quotations are not readily available or are deemedunreliable(forreasonsotherthanbecausetheforeignexchangeonwhich it tradesclosedbeforeeachFunds’calculationofNAV),thesecuritywillbevaluedatitsfairmarketvalueasdeterminedingoodfaithbytheFunds’fair value committee in accordancewith procedures approved by theBoard as discussed below.Without fairvaluation, it ispossiblethatshort-termtraderscouldtakeadvantageof thearbitrageopportunityanddilutetheNAV of long-term investors. Fair valuation of the Funds’ portfolio securities can serve to reduce arbitrageopportunitiesavailabletoshort-termtraders,butthereisnoassurancethatitwillpreventdilutionofeachFund’sNAVbyshort-termtraders. Inaddition,because theFundsmay invest inunderlyingETFswhichholdportfoliosecurities primarily listed on foreign (non-U.S.) exchanges, and these exchangesmay trade onweekends orother days when the underlying ETFs do not price their shares, the value of these portfolio securities maychangeondayswhenyoumaynotbeabletobuyorsellFundshares.

Investments initially valued in currencies other than theU.S. dollar are converted toU.S. dollars usingexchangeratesobtainedfrompricingservices.Asaresult,theNAVofeachFund'ssharesmaybeaffectedbychangesinthevalueofcurrenciesinrelationtotheU.S.dollar.ThevalueofsecuritiestradedinmarketsoutsidetheUnitedStatesordenominatedincurrenciesotherthantheU.S.dollar

43

 maybeaffectedsignificantlyonadaythattheNYSEisclosedandaninvestorisnotabletopurchase,redeemorexchangeshares.

EachFund’ssharesarevaluedatthecloseofregulartradingontheNYSE(normally4:00p.m.,Easterntime)(the"NYSEClose")oneachdaythattheNYSEisopen.ForpurposesofcalculatingtheNAV,theFundsnormally use pricing data for domestic equity securities received shortly after theNYSEClose and does notnormally take intoaccount trading,clearancesorsettlements that takeplaceafter theNYSEClose.Domesticfixed incomeand foreignsecuritiesarenormallypricedusingdatareflecting theearlierclosingof theprincipalmarkets for thosesecurities. Information thatbecomesknown to theFundsor theiragentsafter theNAVhasbeencalculatedonaparticulardaywillnotgenerallybeusedtoretroactivelyadjustthepriceofthesecurityortheNAVdeterminedearlierthatday.

Whenmarketquotationsare insufficientornot readilyavailable, theFundsmayvaluesecuritiesat fairvalueorestimatetheirvalueasdeterminedingoodfaithbytheBoardoritsdesignees,pursuanttoproceduresapprovedby theBoard.Fair valuationmayalsobeusedby theBoard if extraordinaryeventsoccurafter thecloseoftherelevantmarketbutpriortotheNYSEClose.

The Fundsmay hold securities, such as private placements, interests in commodity pools, other non-traded securities or temporarily illiquid securities, forwhichmarket quotations are not readily available or aredeterminedtobeunreliable.Thesesecuritieswillbevaluedat their fairmarketvalueasdeterminedusing the“fairvalue”proceduresapprovedbytheBoard.TheBoardhasdelegatedexecutionoftheseprocedurestoafairvaluecommitteecomposedofoneofmoreofficersfromeachofthe(i)Trust,(ii)administrator,and(iii)Adviser.Thecommitteemayalsoenlistthirdpartyconsultantssuchasanauditfirmorfinancialofficerofasecurityissueronanas-neededbasistoassistindeterminingasecurity-specificfairvalue.TheBoardreviewsandratifiestheexecutionof thisprocessand the resultant fair valuepricesat leastquarterly toassure theprocessproducesreliableresults.

Fair Value Committee and Valuation Process. The fair value committee is composed of one of moreofficers from each of the (i) Trust, (ii) administrator, and (iii) Adviser. The applicable investments are valuedcollectively via inputs fromeach of these groups. For example, fair value determinations are required for thefollowing securities: (i) securities for which market quotations are insufficient or not readily available on aparticularbusinessday(includingsecuritiesforwhichthereisashortandtemporarylapseintheprovisionofapricebytheregularpricingsource),(ii)securitiesforwhich,inthejudgmentoftheAdviser,thepricesorvaluesavailabledonotrepresentthefairvalueoftheinstrument.FactorswhichmaycausetheAdvisertomakesuchajudgmentinclude,butarenotlimitedto,thefollowing:onlyabidpriceoranaskedpriceisavailable;thespreadbetween bid and asked prices is substantial; the frequency of sales; the thinness of themarket; the size ofreported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii)securitiesdeterminedtobeilliquid;(iv)securitieswithrespecttowhichaneventthatwillaffectthevaluethereofhasoccurred(a“significantevent”)sincetheclosingpriceswereestablishedontheprincipalexchangeonwhichtheyare traded,butprior toeachFund’scalculationof itsnetassetvalue.Specifically, interests incommoditypoolsormanaged futurespoolsarevaluedonadailybasisbyreference to theclosingmarketpricesofeachfuturescontractorotherassetheldbyapool, asadjusted forpoolexpenses.Restrictedor illiquid securities,suchasprivateplacementsornon-tradedsecuritiesarevaluedviainputsfromtheAdviservaluationbaseduponthecurrentbidforthesecurityfromtwoormoreindependentdealersorotherpartiesreasonablyfamiliarwiththefacts and circumstances of the security (who should take into consideration all relevant factors as may beappropriate under the circumstances). If theAdviser is unable to obtain a current bid from such independentdealers or other independent parties, the fair value committee shall determine the fair value of such securityusingthe

44

 followingfactors:(i)thetypeofsecurity;(ii)thecostatdateofpurchase;(iii)thesizeandnatureoftheFund'sholdings;(iv)thediscountfrommarketvalueofunrestrictedsecuritiesofthesameclassatthetimeofpurchaseand subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) thenatureanddurationofrestrictionsondispositionofthesecurityandtheexistenceofanyregistrationrights;(vii)how theyieldof thesecuritycompares tosimilar securitiesof companiesof similarorequal creditworthiness;(viii)thelevelofrecenttradesofsimilarorcomparablesecurities;(ix)theliquiditycharacteristicsofthesecurity;(x)currentmarketconditions;and(xi)themarketvalueofanysecuritiesintowhichthesecurityisconvertibleorexchangeable.

StandardsForFairValueDeterminations.Asageneralprinciple,thefairvalueofasecurityistheamountthat the Fund might reasonably expect to realize upon its current sale. The Trust has adopted FinancialAccountingStandardsBoardStatement of Financial AccountingStandardsCodification Topic 820, Fair ValueMeasurementsandDisclosures("ASC820").InaccordancewithASC820,fairvalueisdefinedasthepricethatthe Fund would receive upon selling an investment in a timely transaction to an independent buyer in theprincipal or most advantageous market of the investment. ASC 820 establishes a three-tier hierarchy tomaximize the use of observable market data and minimize the use of unobservable inputs and to establishclassificationof fairvaluemeasurements fordisclosurepurposes. Inputs referbroadly to theassumptions thatmarketparticipantswoulduseinpricingtheassetorliability,includingassumptionsaboutrisk,forexample,theriskinherentinaparticularvaluationtechniqueusedtomeasurefairvalueincludingsuchapricingmodeland/ortheriskinherentintheinputstothevaluationtechnique.Inputsmaybeobservableorunobservable.Observableinputs are inputs that reflect the assumptions market participants would use in pricing the asset or liabilitydevelopedbasedonmarketdataobtainedfromsourcesindependentofthereportingentity.Unobservableinputsare inputs that reflect thereportingentity'sownassumptionsabout theassumptionsmarketparticipantswoulduseinpricingtheassetorliability,developedbasedonthebestinformationavailableunderthecircumstances.

VariousinputsareusedindeterminingthevalueofeachFund'sinvestmentsrelatingtoASC820.Theseinputsaresummarizedinthethreebroadlevelslistedbelow.Level1–quotedpricesinactivemarketsforidenticalsecurities.Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates,prepaymentspeeds,creditrisk,etc.)Level3–significantunobservable inputs(includingaFund’sownassumptions indetermining the fairvalueofinvestments).

The fair valuecommittee takes intoaccount the relevant factorsandsurroundingcircumstances,whichmayinclude:(i) thenatureandpricinghistory(ifany)of thesecurity;(ii)whetheranydealerquotationsfor thesecurityareavailable;(iii)possiblevaluationmethodologiesthatcouldbeusedtodeterminethefairvalueofthesecurity;(iv)therecommendationofaPortfolioManageroftheFundwithrespecttothevaluationofthesecurity;(v)whetherthesameorsimilarsecuritiesareheldbyotherfundsmanagedbytheAdviserorotherfundsandthemethodusedtopricethesecurityinthosefunds;(vi)theextenttowhichthefairvaluetobedeterminedforthesecuritywillresultfromtheuseofdataorformulaeproducedbyindependentthirdpartiesand(vii)theliquidityorilliquidityofthemarketforthesecurity.

45

 BoardofTrustees’Determination.TheBoardmeetsatleastquarterlytoconsiderthevaluationsprovided

bythefairvaluecommitteeandtoratifythevaluationsmadefortheapplicablesecurities.TheBoardconsidersthe reports provided by the fair value committee, including follow up studies of subsequent market-providedprices when available, in reviewing and determining in good faith the fair value of the applicable portfoliosecurities.TheTrustexpectsthattheNYSEwillbeclosedonthefollowingholidays:NewYear'sDay,MartinLutherKing,Jr.Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, andChristmasDay.

PurchaseofShares

OrdersforsharesreceivedbytheFundsingoodorderpriortothecloseofbusinessontheNYSEoneachdayduringsuchperiodsthattheNYSEisopenfortradingarepricedatthepublicofferingprice,whichisNAVplusanysalescharge,oratNAVpershare(ifnosaleschargesapply)computedasofthecloseoftheregularsessionoftradingontheNYSE.OrdersreceivedingoodorderafterthecloseoftheNYSE,oronadayitisnotopenfortrading,arepricedatthecloseofsuchNYSEonthenextdayonwhichitisopenfortradingatthenextdetermined NAV per share plus sales charges, if any. Whether a sales charge waiver is available for yourretirement planor charitableaccount dependsupon thepoliciesandproceduresof your intermediary.Pleaseconsultyourfinancialadviserforfurtherinformation.RedemptionofShares

The Funds will redeem all or any portion of a shareholder's shares of the Funds when requested inaccordancewiththeproceduressetforthinthe"Redemptions"sectionoftheProspectus.Underthe1940Act,ashareholder'srighttoredeemsharesandtoreceivepaymentthereforemaybesuspendedattimes:(a)when theNYSE is closed, other than customaryweekend and holiday closings; (b)when trading on thatexchangeisrestrictedforanyreason;(c)whenanemergencyexistsasaresultofwhichdisposalbytheFundsof securities owned is not reasonably practicable or it is not reasonably practicable for the Funds to fairlydeterminethevalueofnetassets,providedthatapplicablerulesandregulationsoftheSEC(oranysucceedinggovernmentalauthority)willgovernas towhether theconditionsprescribed in (b)or (c)exist;or (d)when theSECbyorder permits a suspensionof the right to redemptionor a postponement of thedateof payment onredemption.

Incaseofsuspensionoftherightofredemption,paymentofaredemptionrequestwillbemadebasedontheNAVnextdeterminedaftertheterminationofthesuspension.

Supportingdocumentsinadditiontothoselistedunder"Redemptions"intheProspectuswillberequired

fromexecutors,administrators,trustees,orifredemptionisrequestedbysomeoneotherthantheshareholderofrecord.Suchdocumentsinclude,butarenotrestrictedto,stockpowers,trustinstruments,certificatesofdeath,appointments as executor, certificates of corporate authority andwaiver of tax required in some stateswhensettlingestates.

46

 RedemptionFeesAredemptionfeeof1.00%oftheamountredeemedisassessedonsharesthathavebeenredeemedwithin30daysofpurchase.WaiversofRedemptionFees:theFundshaveelectednottoimposetheredemptionfeefor:

redemptions and exchanges of Fund shares acquired through the reinvestment of dividends anddistributions;certaintypesofredemptionsandexchangesofFundsharesownedthroughparticipant-directedretirementplans;redemptionsorexchangesindiscretionaryassetallocation,feebasedorwrapprograms("wrapprograms")thatareinitiatedbythesponsor/financialadviseraspartofaperiodicrebalancing;redemptionsorexchangesinafeebasedorwrapprogramthataremadeasaresultofafullwithdrawalfrom the wrap program or as part of a systematic withdrawal plan including the Funds’ systematicwithdrawalplan;involuntary redemptions, such as those resulting from a shareholder's failure to maintain a minimuminvestmentinaFund,ortopayshareholderfees;orothertypesofredemptionsastheAdviserortheTrustmaydetermineinspecialsituationsandapprovedbytheFunds’ortheAdviser'sChiefComplianceOfficer.

NoticetoTexasShareholders

Undersection72.1021(a)oftheTexasPropertyCode,initialinvestorsinaFundwhoareTexasresidentsmaydesignatearepresentativetoreceivenoticesofabandonedpropertyinconnectionwithFundshares.Texasshareholders who wish to appoint a representative should notify the Trust’s Transfer Agent by writing to theaddressbelowtoobtainaformforprovidingwrittennoticetotheTrust:

NewfoundRiskManagedGlobalSectorsFund

NewfoundMulti-AssetIncomeFundNewfoundRiskManagedU.S.SectorsFund

c/oGeminiFundServices,LLC17645WrightStreet,Suite200

Omaha,NE68130

TAXSTATUS

Thefollowingdiscussionisgeneralinnatureandshouldnotberegardedasanexhaustivepresentationofallpossibletaxramifications.AllshareholdersshouldconsultaqualifiedtaxadviserregardingtheirinvestmentintheFunds.

The Funds intend to qualify as a regulated investment company under Subchapter M of the Internal

RevenueCode of 1986, as amended (the "IRSCode"), which requires compliancewith certain requirementsconcerningthesourcesofitsincome,diversificationofitsassets,andtheamountandtimingofitsdistributionstoshareholders.Suchqualificationdoesnotinvolvesupervisionofmanagementorinvestmentpracticesorpoliciesbyanygovernmentagencyorbureau.Bysoqualifying, theFundsshouldnotbesubject to federal incomeorexcisetaxonitsnetinvestmentincomeornet

47

 capitalgain,whicharedistributed toshareholders inaccordancewith theapplicable timing requirements.NetinvestmentincomeandnetcapitalgainoftheFundswillbecomputedinaccordancewithSection852oftheIRSCode.

TheFundsintendtodistributeallofitsnetinvestmentincome,anyexcessofnetshort-termcapitalgainsover net long-term capital losses, and any excess of net long-term capital gains over net short-term capitallosses in accordance with the timing requirements imposed by the IRS Code and therefore should not berequiredtopayanyfederalincomeorexcisetaxes.Distributionsofnetinvestmentincomeandnetcapitalgainwillbemadeaftertheendofeachfiscalyear.BothtypesofdistributionswillbeinsharesoftheFundsunlessashareholderelectstoreceivecash.

AtMarch31,2019,theFundshadcapitallosscarryforwardsforfederalincometaxpurposesavailabletooffsetfuturecapitalgainsasfollows:

Fund Short-Term Long-Term Total Expiration NewfoundRiskManagedGlobalSectorsFund $ 501,943 $ — $ 501,943 Non-expiring NewfoundMulti-AssetIncomeFund 2,551,920 — 2,551,920 Non-expiring NewfoundRiskManagedU.S.SectorsFund — — —

TobetreatedasaregulatedinvestmentcompanyunderSubchapterMoftheIRSCode,theFundsmustalso (a) derive at least 90%of its gross income fromdividends, interest, paymentswith respect to securitiesloans, net income from certain publicly traded partnerships and gains from the sale or other disposition ofsecurities or foreign currencies, or other income (including, but not limited to, gains from options, futures orforward contracts) derived with respect to the business of investing in such securities or currencies, and (b)diversify itsholdingssothat,at theendofeachfiscalquarter,(i)at least50%ofthemarketvalueofaFund'sassets is represented by cash, U.S. government securities and securities of other regulated investmentcompanies,andothersecurities(forpurposesofthiscalculation,generallylimitedinrespectofanyoneissuer,toan amount not greater than 5% of the market value of a Fund's assets and 10% of the outstanding votingsecuritiesofsuch issuer)and (ii)notmore than25%of thevalueof itsassets is invested in thesecuritiesof(other than U.S. government securities or the securities of other regulated investment companies) any oneissuer, two ormore issuerswhich a Fund controls andwhich are determined to be engaged in the same orsimilartradesorbusinesses,orthesecuritiesofcertainpubliclytradedpartnerships.

IfaFundfailstoqualifyasaregulatedinvestmentcompanyunderSubchapterMinanyfiscalyear,itwill

betreatedasacorporationforfederalincometaxpurposes.Assuch,aFundwouldberequiredtopayincometaxes on its net investment income and net realized capital gains, if any, at the rates generally applicable tocorporations.ShareholdersofaFundgenerallywouldnotbeliableforincometaxoneachFund'snetinvestmentincomeornetrealizedcapitalgains intheir individualcapacities.Distributionstoshareholders,whetherfromaFund'snetinvestmentincomeornetrealizedcapitalgains,wouldbetreatedastaxabledividendstotheextentofcurrentoraccumulatedearningsandprofitsofaFund.

The Funds are subject to a 4%nondeductible excise tax on certain undistributed amounts of ordinary

incomeandcapitalgainunderaprescribedformulacontainedinSection4982oftheIRS

48

 Code.Theformularequirespaymenttoshareholdersduringacalendaryearofdistributionsrepresentingatleast98%oftheFunds’ordinaryincomeforthecalendaryearandatleast98.2%ofitscapitalgainnetincome(i.e.,theexcessofitscapitalgainsovercapitallosses)realizedduringtheone-yearperiodendingOctober31duringsuchyearplus100%ofany income thatwasneitherdistributednor taxed to theFundsduring theprecedingcalendaryear.Underordinarycircumstances,theFundsexpecttotimeitsdistributionssoastoavoidliabilityforthistax.

The following discussion of tax consequences is for the general information of shareholders that aresubjecttotax.ShareholdersthatareIRAsorotherqualifiedretirementplansareexemptfromincometaxationundertheIRSCode.

Distributionsoftaxablenetinvestmentincomeandtheexcessofnetshort-termcapitalgainovernetlong-term capital loss are generally taxable to shareholders as ordinary income, unless such distributions areattributableto“qualifieddividendincome”eligibleforthereducedfederalincometaxratesapplicabletolong-termcapitalgains,providedcertainholdingperiodandotherrequirementsaresatisfied.

Distributionsofnetcapitalgain ("capitalgaindividends")generallyare taxable toshareholdersas long-termcapitalgain,regardlessofthelengthoftimethesharesoftheFundshavebeenheldbysuchshareholders.

CertainU.S.shareholders,includingindividualsandestatesandtrusts,aresubjecttoanadditional3.8%Medicaretaxonalloraportionoftheir“netinvestmentincome,”whichshouldincludedividendsfromtheFundsandnetgainsfromthedispositionofsharesoftheFunds.U.S.shareholdersareurgedtoconsulttheirowntaxadvisersregardingtheimplicationsoftheadditionalMedicaretaxresultingfromaninvestmentintheFunds.

A redemption of Fund shares by a shareholder results in the recognition of taxable gain or loss in anamountequaltothedifferencebetweentheamountrealizedandtheshareholder'staxbasisinhisorherFundshares.Suchgainorlossistreatedasacapitalgainorlossifthesharesareheldascapitalassets.Thegainorlossisgenerallybetreatedaslong-termcapitalgainorlossiftheshareswereheldformorethanoneyearandifnotheldforsuchperiod,asshort-termcapitalgainorloss.However,anylossrealizedupontheredemptionofshareswithinsixmonthsfromthedateoftheirpurchaseistreatedasalong-termcapitallosstotheextentofanyamountstreatedascapitalgaindividendsduringsuchsix-monthperiod.Alloraportionofanylossrealizedupontheredemptionofsharesmaybedisallowedtotheextentsharesarepurchased(includingsharesacquiredbymeansofreinvesteddividends)within30daysbeforeoraftersuchredemption.

Distributions of taxable net investment income and net capital gain are taxable as described above,whether received in additional shares or cash. Shareholders electing to receive distributions in the form ofadditionalshareswillhaveacostbasisforfederalincometaxpurposesineachsharesoreceivedequaltotheNAVofashareonthereinvestmentdate.

Alldistributionsof taxablenet investment incomeandnetcapitalgain,whether received insharesor in

cash, must be reported by each taxable shareholder on his or her federal income tax return. Dividends ordistributionsdeclaredinOctober,NovemberorDecemberasofarecorddateinsuchamonth,ifany,isdeemedto have been received by shareholders on December 31, if paid during January of the following year.Redemptionsofsharesmayresultintaxconsequences(gainorloss)totheshareholderandissubjecttothesereportingrequirements.

49

 

UndertheIRSCode,theFundsarerequiredtoreporttotheInternalRevenueServicealldistributionsofincomeandcapitalgainsaswellasgrossproceedsfromtheredemptionorexchangeofFundshares,exceptinthecaseofcertainexemptshareholders.Under thebackupwithholdingprovisionsofSection3406of the IRSCode,distributionsofnetinvestmentincomeandnetcapitalgainandproceedsfromtheredemptionorexchangeofthesharesofaregulatedinvestmentcompanymaybesubjecttowithholdingoffederalincometaxinthecaseof non-exempt shareholders who fail to furnish the investment company with their taxpayer identificationnumbersandwithrequiredcertificationsregardingtheirstatusunderthefederalincometaxlaw,orifaFundisnotifiedbytheIRSorabrokerthatwithholdingisrequiredduetoanincorrectTINorapreviousfailuretoreporttaxable interestordividends. If thewithholdingprovisionsareapplicable,anysuchdistributionsandproceeds,whethertakenincashorreinvestedinadditionalshares,willbereducedbytheamountsrequiredtobewithheld.

Payments to a shareholder that is either a foreign financial institution (“FFI”) or a non-financial foreign

entity(“NFFE”)withinthemeaningof theForeignAccountTaxComplianceAct(“FATCA”)maybesubject toagenerallynonrefundable30%withholdingtaxon:(a)incomedividendspaidbyaFundafterJune30,2014and(b)certaincapitalgaindistributionsandtheproceedsarisingfromthesaleofFundsharespaidbytheFundafterDecember31,2016.FATCAwithholdingtaxgenerallycanbeavoided:(a)byanFFI,subjecttoanyapplicableintergovernmentalagreementorotherexemption,ifitentersintoavalidagreementwiththeIRSto,amongotherrequirements,reportrequiredinformationaboutcertaindirectandindirectownershipofforeignfinancialaccountsheldbyU.S.personswiththeFFIand(b)byanNFFE,ifit:(i)certifiesthatithasnosubstantialU.S.personsasowners or (ii) if it does have such owners, reports information relating to them. A Fund may disclose theinformation that it receives from its shareholders to the IRS, non-U.S. taxing authorities or other parties asnecessarytocomplywithFATCA.WithholdingalsomayberequiredifaforeignentitythatisashareholderofaFundfailstoprovidetheFundwithappropriatecertificationsorotherdocumentationconcerningitsstatusunderFATCA.

Options,Futures,ForwardContractsandSwapAgreements

To the extent such investments are permissible for a Fund, a Fund's transactions in options, futures

contracts, hedging transactions, forward contracts, straddlesand foreign currenciesare subject to special taxrules(includingmark-to-market,constructivesale,straddle,washsaleandshortsalerules),theeffectofwhichmaybetoaccelerateincometotheFund,deferlossestotheFund,causeadjustmentsintheholdingperiodsoftheFund'ssecurities,convertlong-termcapitalgainsintoshort-termcapitalgainsandconvertshort-termcapitallosses into long-term capital losses. These rules could therefore affect the amount, timing and character ofdistributionstoshareholders.

To the extent such investments are permissible, certain of eachFund's hedging activities (including itstransactions, ifany, in foreigncurrenciesor foreigncurrency-denominated instruments)are likely toproduceadifference between its book income and its taxable income. If each Fund’s book income exceeds its taxableincome,thedistribution(ifany)ofsuchexcessbookincomeisbetreatedas(i)adividendtotheextentoftheFunds’ remaining earnings and profits (including earnings and profits arising from tax-exempt income), (ii)thereafter,asareturnofcapital to theextentof therecipient'sbasis in theshares,and(iii) thereafter,asgainfromthesaleorexchangeofacapitalasset.IftheFunds’bookincomeislessthantaxableincome,theFundscouldberequiredtomakedistributionsexceedingbookincometoqualifyasaregularinvestmentcompanythatisaccordedspecialtaxtreatment.

50

 PassiveForeignInvestmentCompanies

InvestmentbyaFundincertain"passiveforeigninvestmentcompanies"("PFICs")couldsubjectaFundto

aU.S.federalincometax(includinginterestcharges)ondistributionsreceivedfromthecompanyoronproceedsreceivedfromthedispositionofsharesinthecompany,whichtaxcannotbeeliminatedbymakingdistributionstoFundshareholders.However,aFundmayelecttotreataPFICasa"qualifiedelectingfund"("QEF"), inwhichcase a Fund will be required to include its share of the company's income and net capital gains annually,regardlessofwhethertheyreceivesanydistributionfromthecompany.

EachFundalsomaymakeanelectiontomarkthegains(andtoalimitedextentlosses)insuchholdings"tothemarket"asthoughithadsoldandrepurchaseditsholdingsinthosePFICsonthelastdayoftheFund'staxable year. Such gains and losses are treated as ordinary income and loss. TheQEF andmark-to-marketelections may accelerate the recognition of income (without the receipt of cash) and increase the amountrequiredtobedistributedforaFundtoavoidtaxation.MakingeitheroftheseelectionsthereforemayrequireaFund to liquidate other investments (including when it is not advantageous to do so) tomeet its distributionrequirement,whichalsomayacceleratetherecognitionofgainandaffectaFund'stotalreturn.

ForeignCurrencyTransactions

TheFunds’transactionsinforeigncurrencies,foreigncurrency-denominateddebtsecuritiesandcertainforeigncurrencyoptions,futurescontractsandforwardcontracts(andsimilarinstruments)maygiverisetoordinaryincomeorlosstotheextentsuchincomeorlossresultsfromfluctuationsinthevalueoftheforeigncurrencyconcerned.

OtherRegulatedInvestmentCompanies

Generally,thecharacteroftheincomeorcapitalgainsthattheFundsreceivefromanotherinvestmentcompanypassesthroughtotheFunds’shareholdersaslongastheFundsandtheotherinvestmentcompanyeachqualifyasaregulatedinvestmentcompany.However,totheextentthatanotherinvestmentcompanythatqualifiesasaregulatedinvestmentcompanyrealizesnetlossesonitsinvestmentsforagiventaxableyear,theFundsarenotable to recognize itsshareof those lossesuntil itdisposesofsharesofsuch investmentcompany.Moreover,evenwhentheFundsdomakesuchadisposition,aportionofitslossmayberecognizedasalong-termcapitalloss,whicharenottreatedasfavorablyforfederalincometaxpurposesasanordinarydeduction.Inparticular,theFundsarenotabletooffsetanycapitallossesfromitsdispositionsofsharesofotherinvestmentcompaniesagainstitsordinaryincome.Asaresultoftheforegoingrules,andcertainotherspecialrules,itispossiblethatthe amounts of net investment income and net capital gains that the Funds are required to distribute toshareholdersaregreaterthansuchamountswouldhavebeenhadtheFundsinvesteddirectlyinthesecuritiesheld by the investment companies in which it invests, rather than investing in shares of the investmentcompanies. For similar reasons, the character of distributions from the Funds (e.g., long-term capital gain,qualifieddividendincome,etc.)willnotnecessarilybethesameasitwouldhavebeenhadtheFundsinvesteddirectlyinthesecuritiesheldbytheinvestmentcompaniesinwhichitinvests.

51

 

ForeignTaxation

Incomereceivedby theFunds fromsourceswithin foreigncountriesmaybesubject towithholdingandothertaxesimposedbysuchcountries.TaxtreatiesandconventionsbetweencertaincountriesandtheU.S.mayreduceoreliminatesuchtaxes.Ifmorethan50%ofthevalueoftheFunds’totalassetsatthecloseofitstaxableyearconsistsofsecuritiesofforeigncorporations,theFundsmaybeabletoelectto"passthrough"totheFunds’shareholderstheamountofeligibleforeignincomeandsimilartaxespaidbytheFunds.Ifthiselectionismade,ashareholder generally subject to tax is required to include in gross income (in addition to taxable dividendsactuallyreceived)hisorherproratashareoftheforeigntaxespaidbytheFunds,andmaybeentitledeithertodeduct (as an itemized deduction) his or her pro rata share of foreign taxes in computing his or her taxableincomeor touse itasaforeigntaxcreditagainsthisorherU.S. federal incometax liability,subject tocertainlimitations.Inparticular,ashareholdermustholdhisorhershares(withoutprotectionfromriskofloss)ontheex-dividenddateand forat least15moredaysduring the30-dayperiodsurrounding theex-dividenddate tobeeligible to claim a foreign tax credit with respect to a gain dividend. No deduction for foreign taxesmay beclaimedbyashareholderwhodoesnotitemizedeductions.Eachshareholderisnotifiedwithin60daysafterthecloseoftheFunds’taxableyearwhethertheforeigntaxespaidbytheFunds"passthrough"forthatyear.

Generally,acredit for foreign taxes issubject to the limitation that itmaynotexceed theshareholder'sU.S. tax attributable to his or her total foreign source taxable income. For this purpose, if the pass-throughelectionismade,thesourceoftheFunds’ incomeflowsthroughtoshareholdersoftheFunds.WithrespecttotheFunds,gains fromthesaleofsecuritieswillbe treatedasderived fromU.S.sourcesandcertaincurrencyfluctuationgains,includingfluctuationgainsfromforeigncurrency-denominateddebtsecurities,receivablesandpayablesare treatedasordinary incomederived fromU.S.sources.The limitationon the foreign taxcredit isappliedseparatelytoforeignsourcepassiveincome,andtocertainothertypesofincome.Ashareholdermaybeunable to claima credit for the full amount of his or her proportionate shareof the foreign taxespaid by theFunds.Theforeigntaxcreditcanbeusedtooffsetonly90%oftherevisedalternativeminimumtaximposedoncorporations and individuals and foreign taxes generally are not deductible in computing alternativeminimumtaxableincome.

OriginalIssueDiscountandPay-In-KindSecurities

CurrentfederaltaxlawrequirestheholderofaU.S.Treasuryorotherfixedincomezerocouponsecuritytoaccrueasincomeeachyearaportionofthediscountatwhichthesecuritywaspurchased,eventhoughtheholder receivesno interestpayment incashon thesecurityduring theyear. Inaddition,pay-in-kindsecuritiesgivesrisetoincomewhichisrequiredtobedistributedandistaxableeventhoughtheFundsholdingthesecurityreceivesnointerestpaymentincashonthesecurityduringtheyear.

Someofthedebtsecurities(withafixedmaturitydateofmorethanoneyearfromthedateofissuance)thatmaybeacquiredby theFundsmaybe treatedasdebtsecurities thatare issuedoriginallyatadiscount.Generally, the amount of the original issue discount ("OID") is treated as interest income and is included inincomeoverthetermofthedebtsecurity,eventhoughpaymentofthatamountisnotreceiveduntilalatertime,usuallywhenthedebtsecuritymatures.AportionoftheOIDincludableinincomewithrespecttocertainhigh-yield corporatedebt securities (including certainpay-in-kind securities)maybe treatedasadividend forU.S.federalincometaxpurposes.

52

 Someofthedebtsecurities(withafixedmaturitydateofmorethanoneyearfromthedateofissuance)

that may be acquired by the Funds in the secondary market may be treated as having market discount.Generally, anygain recognizedon thedispositionof, andanypartial paymentof principal on, adebt securityhavingmarket discount is treated as ordinary income to the extent the gain, or principal payment, does notexceed the "accruedmarketdiscount"onsuchdebtsecurity.Marketdiscountgenerallyaccrues inequaldailyinstallments. The Fundsmaymake one ormore of the elections applicable to debt securities havingmarketdiscount,whichcouldaffectthecharacterandtimingofrecognitionofincome.

Somedebtsecurities(withafixedmaturitydateofoneyearorlessfromthedateofissuance)thatmaybeacquiredbytheFundsmaybetreatedashavingacquisitiondiscount,orOIDinthecaseofcertaintypesofdebtsecurities.Generally,theFundsarerequiredtoincludetheacquisitiondiscount,orOID,inincomeoverthetermofthedebtsecurity,eventhoughpaymentofthatamountisnotreceiveduntilalatertime,usuallywhenthedebtsecurity matures. The Funds may make one or more of the elections applicable to debt securities havingacquisitiondiscount,orOID,whichcouldaffectthecharacterandtimingofrecognitionofincome.

If the Funds hold the foregoing kinds of securities, they may be required to pay out as an incomedistribution each year an amount, which is greater than the total amount of cash interest the Funds actuallyreceived. Such distributions may be made from the cash assets of the Funds or by liquidation of portfoliosecurities,ifnecessary(includingwhenitisnotadvantageoustodoso).TheFundsmayrealizegainsorlossesfromsuchliquidations.IntheeventtheFundsrealizenetcapitalgainsfromsuchtransactions,itsshareholdersmayreceivealargercapitalgaindistribution,ifany,thantheywouldintheabsenceofsuchtransactions.

Shareholders of the Fundsmay be subject to state and local taxes on distributions received from theFundsandonredemptionsoftheFunds’shares.

Abriefexplanationoftheformandcharacterofthedistributionaccompanyeachdistribution.AftertheendofeachyeartheFundsissuetoeachshareholderastatementofthefederalincometaxstatusofalldistributions.

Shareholdersshouldconsulttheirtaxadvisersabouttheapplicationoffederal,stateandlocalandforeigntaxlawinlightoftheirparticularsituation.ANTI-MONEYLAUNDERINGPROGRAM

TheTrusthasestablishedanAnti-MoneyLaunderingComplianceProgram(the"Program")asrequiredby

the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and ObstructTerrorismActof2001("USAPATRIOTAct").Toensurecompliancewiththis law,theTrust'sProgramprovidesfor the development of internal practices, procedures and controls, designation of anti-money launderingcompliance officers, an ongoing training program and an independent audit function to determine theeffectivenessoftheProgram.TheTrust'ssecretaryservesasitsAnti-MoneyLaunderingComplianceOfficer.

Procedures to implement the Program include, but are not limited to, determining that the Funds’DistributorandTransferAgenthaveestablishedproperanti-moneylaunderingprocedures,reportingsuspiciousand/orfraudulentactivityandprovidingacompleteandthoroughreviewofallnewopening

53

 account applications. TheTrustwill not transact businesswith any personor entitywhose identity cannot beadequatelyverifiedundertheprovisionsoftheUSAPATRIOTAct.

As a result of the Program, the Trustmay be required to "freeze" the account of a shareholder if theshareholderappearstobeinvolvedinsuspiciousactivityorifcertainaccountinformationmatchesinformationongovernment listsof known terroristsorothersuspiciouspersons,or theTrustmaybe required to transfer theaccountorproceedsoftheaccounttoagovernmentalagency.

CONTROLPERSONSANDPRINCIPALHOLDERSOFSECURITIES

Aprincipalshareholder isanypersonwhoownsofrecordorbeneficially5%ormoreoftheoutstanding

sharesofaFund.Acontrolpersonisonewhoownsbeneficiallyorthroughcontrolledcompaniesmorethan25%of thevotingsecuritiesofacompanyoracknowledgestheexistenceofcontrol.Personscontrolling theFundscandeterminetheoutcomeofanyproposalsubmittedtotheshareholdersforapproval,includingchangestotheFunds’ fundamental policies or the terms of the Advisory Agreement. As of July 8, 2019, the followingshareholdersofrecordowned5%ormoreoftheoutstandingsharesoftheFunds:

NewfoundRiskManagedGlobalSectorsFund:

AccountName&Address TotalShares PercentofShares

ClassAShares CHARLESSCHWAB&COINC/SPECIALCUSTODYA/CFBOCUSTOMERSATTNMUTUALFUNDS211MAINSTREETSANFRANCISCO,CA94105

26,248.5100 6.66%

TDAMERITRADEINCFORTHE/EXCLUSIVEBENEFITOFOURCLIENTSPOBOX2226OMAHA,NE68103

105,946.6270 26.89%

NationalFinancialServicesLLC499WashingtonBLVDJERSEYCITY,NJ07310

29,423.6270 7.47%

NationalFinancialServicesLLC499WashingtonBLVDJERSEYCITY,NJ07310

19,908.7140 5.05%

NationalFinancialServicesLLC499WashingtonBLVDJERSEYCITY,NJ07310

25,085.0240 6.37%

NationalFinancialServicesLLC499WashingtonBLVDJERSEYCITY,NJ07310

32,954.1650 8.36%

54

 NationalFinancialServicesLLC499WashingtonBLVDJERSEYCITY,NJ07310

22,605.0090 5.74%

ClassIShares

SPINVESTMENTASSOCIATESMANAGEDLLC/ANASTASIOSPARAFESTASAUTHORIZEDINDIVIDUALONEJOYSTREETBOSTON,MA02108

2,505,110.3710 69.85%

CHARLESSCHWAB&COINC/SPECIALCUSTODYA/CFBOCUSTOMERSATTNMUTUALFUNDS211MAINSTREETSANFRANCISCO,CA94105

657,735.6400 18.34%

NewfoundMulti-AssetIncomeFund:

ClassAName&Address

Shares PercentageofFundShareClass

UBSWMUSA/SPECCDYA/CEXLBENCUSTOFUBSFSIOMNIACCOUNTM/FATTN:DEPARTMENTMANAGER1000HARBORBLVDWEEHAWKEN,NJ07086

79,935.1720 13.35%

LPLFINANCIALPOBOX509046SANDIEGO,CA92150-9046

46,240.6340 7.72%

CHARLESSCHWAB&COINC/SPECIALCUSTODYA/CFBOCUSTOMERSATTNMUTUALFUNDS211MAINSTREETSANFRANCISCO,CA94015

70,444.6000 11.77%

TDAMERITRADEINCFORTHE/EXCLUSIVEBENEFITOFOURCLIENTSPOBOX2226OMAHA,NE68103

234,483.7610 39.17%

55

 ClassIName&Address

Shares PercentageofFundShareClass

UBSWMUSA/SPECCDYA/CEXLBENCUSTOFUBSFSIOMNIACCOUNTM/FATTN:DEPARTMENTMANAGER1000HARBORBLVDWEEHAWKEN,NJ07086

106,624.6880 5.84%

FoliofnInvestmentsInc.8180GreesnboroDr.8thFloorMcLean,VA22102

119,454.2350 6.54%

NationalFinancialServicesLLC499WashingtonBlvdJerseyCity,NJ07310

332,678.4490 18.22%

WELLSFARGOCLEARINGSERVICES/A/C5236-17722801MARKETSTREETSAINTLOUIS,MO63103

208,177.0280 11.40%

NewfoundRiskManagedU.S.SectorsFund:

AccountName&Address TotalShares PercentofSharesClassIShares

WELLSFARGOCLEARINGSERVICES/A/C7760-77862801MARKETSTREETSAINTLOUIS,MO63103

241,895.9030 5.85%

SPInvestmentAssociatesisalimitedliabilitycompanyformedinDelawarewhoseprimaryofficesarebasedinMassachusettsandmaybedeemedtocontroltheNewfoundRiskManagedGlobalSectorsFund.TheAdviserhas an agreementwithSP Investment Associates ("Investor")whereby the Investor agreed to invest at least$25,000,000 in theNewfoundRiskManagedGlobalSectorsFund.The Investoragreed that its sharesof theNewfoundRiskManagedGlobalSectorsFundwould not be redeemedprior to June30, 2017unless certainconditionsweremet (whichdidnotoccur).Assuch, the Investor,whocurrentlyownsgreater than50%of theshares of the Newfound Risk Managed Global Sectors Fund, may redeem some or all of its shares in theNewfoundRiskManagedGlobalSectorsFundatanytime.TheInvestoragreedtoprovideconsultingservicestotheAdviserandassistanceingainingplatformaccesswithcertainfirmsfortheAdviser’sadvisedmutualfundsandother investmentproducts. Inconsiderationfor themutualcovenantsof theparties, theAdviseragreedtopaytheInvestor10basispointsperyear(inmonthlyinstallments)basedontheamountoftheassetsinvestedintheNewfoundRiskManagedGlobalSectorsFund.SuchpaymentsaremadebytheAdviseroutoftheAdviser'slegitimateprofits.

TDAmeritrade, Inc. isaNewYorkCorporation,andmaybedeemed to control theNewfoundRiskManagedGlobalSectorsFundandNewfoundMulti-AssetIncomeFund.TDAmeritradeOnlineHoldingsCorporationistheparentcompanyofTDAmeritrade,Inc.

ManagementOwnershipInformation.AsofJuly8,2019, theTrusteesandofficersof theTrust,asagroup,beneficiallyowned less than1%of theoutstandingsharesofeachFund.

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 MANAGEMENT

ThebusinessoftheTrustismanagedunderthedirectionoftheBoardinaccordancewiththeAgreementandDeclarationofTrustandtheTrust'sBy-laws(the"GoverningDocuments"),whichhavebeenfiledwith theSEC and are available upon request. The Board consists of five individuals, all of whom are not "interestedpersons"(asdefinedunderthe1940Act)oftheTrustandtheAdviser("IndependentTrustees").PursuanttotheGoverning Documents, the Trustees shall elect officers including a President, a Secretary, a Treasurer, aPrincipalExecutiveOfficerandaPrincipalAccountingOfficer.TheBoardretainsthepowertoconduct,operateandcarryonthebusinessoftheTrustandhasthepowertoincurandpayanyexpenses,which,intheopinionoftheBoard,arenecessaryorincidentaltocarryoutanyoftheTrust'spurposes.TheTrustees,officers,employeesandagentsoftheTrust,whenactinginsuchcapacities,shallnotbesubjecttoanypersonalliabilityexceptforhisorherownbadfaith,willfulmisfeasance,grossnegligenceorrecklessdisregardofhisorherduties.

BoardLeadershipStructure.TheBoard is ledbyJohnV.Palancia,whohasservedastheChairmanof

theBoardsinceMay2014.TheBoardhasnotappointedaLeadIndependentTrusteebecauseallTrusteesareIndependentTrustees.UndertheTrust'sAgreementandDeclarationofTrustandBy-Laws,theChairmanoftheBoardisresponsiblefor(a)presidingatBoardmeetings,(b)callingspecialmeetingsonanas-neededbasis,and(c) executing and administering Trust policies, including (i) setting the agendas for Board meetings and (ii)providing information to Board members in advance of each Board meeting and between Board meetings.Generally, the Trust believes it best to have a non-executive Chairman of the Board, who together with thePresident (principalexecutiveofficer),areseenbyshareholders,businesspartnersandotherstakeholdersasprovidingstrongleadership.TheTrustbelievesthatitsChairman,theindependentchairoftheAuditCommittee,and,asanentity,thefullBoardofTrustees,provideeffectiveleadershipthatisinthebestinterestsoftheTrust,itsfundsandeachshareholder.

BoardRiskOversight.TheBoardiscomprisedentirelyofIndependentTrusteeswithanAuditCommittee

witha separate chair.TheBoard is responsible foroverseeing riskmanagement, and the fullBoard regularlyengages in discussions of riskmanagement and receives compliance reports that inform its oversight of riskmanagement from its Chief Compliance Officer at quarterly meetings and on an ad hoc basis, when and ifnecessary. The Audit Committee considers financial and reporting the risk within its area of responsibilities.Generally, the Board believes that its oversight of material risks is adequately maintained through thecompliance-reporting chainwhere theChiefComplianceOfficer is the primary recipient and communicator ofsuchrisk-relatedinformation.

TrusteeQualifications.Generally, the Funds believe that eachTrustee is competent to serve because of his or her individual

overallmeritsincluding:(i)experience,(ii)qualifications,(iii)attributesand(iv)skills.James Jensen has over 40 years of business experience in a wide range of industries including the

financialservicesindustry.Hisexperienceincludesover25yearsofmutualfundboardexperiencewithserviceaschairmanoftheAuditCommittee,chairmanoftheNominatingandGovernanceCommitteeand,forthepasteightyears,asChairmanoftheBoardofWasatchFunds.SinceApril2008,Mr.JensenhasservedastheChiefExecutiveOfficerofClearwaterLaw&GovernanceGroup,wherehedevoteshimselffull timetocorporatelawpractice,boardgovernanceconsultingforoperatingcompaniesandprivateinvesting.InMay2014,Mr.Jensenandhis firmconducted the11thGreenRiverConferenceonCorporateGovernance for lawyers,accountants,directorsandserviceproviders.

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 In2001,Mr.Jensenco-foundedIntelisum,Inc.,acompanypursuingcomputerandmeasurementtechnologyandproducts,andwasChairmanoftheBoardfrom2001to2008.From1986to2004,Mr.JensenheldkeypositionswithNPSPharmaceuticals, Inc., includingVicePresident,CorporateDevelopment, LegalAffairs andGeneralCounselandSecretary.Inadditiontohisbusinessexperience,Mr.JensenwasChairmanoftheBoardofAgriconGlobalCorporation,formerlyBayHillCapitalCorporationfrom2008to2014andwasaDirectoroftheUniversityof Utah Research Foundation from 2000 to 2018. Mr. Jensen was the founder and first President of theMountainWestVentureGroup (now"MountainWestCapitalNetwork") in1983.Mr.Jensen isamemberof theNational Association of Corporate Directors. Mr. Jensen graduated with a Bachelor of Arts degree from theUniversity ofUtah in 1967and receiveddegreesof JurisDoctor andMaster ofBusinessAdministration fromColumbiaUniversityin1971.

PatriciaLuscombe,CFA,hasmorethan25yearsinfinancialadvisoryandvaluationservices.Shehas

deliveredabroadrangeofcorporatefinanceadviceincludingfairnessopinionsandvaluations.Ms.Luscombejoined Lincoln International in 2007 as aManagingDirector and co-head of Lincoln'sValuations&OpinionsGroup. In this position, she assists regulated investment funds, business development companies, privateequity funds and hedge funds in the valuation of illiquid securities for fair value accounting purposes. Ms.Luscombe's clients range from closely-held businesses to large, publicly-traded companies. Previously, Ms.Luscombespent16yearswithDuff&PhelpsCorporation,asaManagingDirector in thefirm'svaluationandfinancial advisory business. Prior to joiningDuff & Phelps Corporation,Ms. Luscombewas an Associate atSmith Barney, a division of Citigroup Capital Markets, Inc., where she managed a variety of financialtransactions, including mergers and acquisitions, leveraged buyouts, and equity and debt financings. Ms.Luscombe is a member of the Chicago Chapter of the Association for Corporate Growth, the CharteredFinancialAnalystSocietyofChicagoandformerpresidentof theChicagoFinanceExchange.Ms.LuscombeholdsaBachelorofArtsdegreeineconomicsfromStanfordUniversity,aMaster'sdegreeineconomicsfromtheUniversityofChicagoandaMasterofBusinessAdministrationdegreefromtheUniversityofChicagoBoothSchoolofBusiness.Inaddition,Ms.LuscombeislicensedundertheSeries24,79and63ofFINRA.

JohnV.Palancia has over 40 years of business experience in the financial services industry including

serving as the Director of Global FuturesOperations forMerrill Lynch, Pierce, Fenner & Smith, Inc. (“MerrillLynch”)Mr.Palanciapossessesan in depthunderstandingof broker-dealer operations fromhaving served invariousmanagementcapacitiesandhasheldindustryregistrationsinbothsecuritiesandfutures.BasedonhisserviceatMerrillLynch,healsopossessesastrongunderstandingofriskmanagement,balancesheetanalysis,complianceandtheregulatoryframeworkunderwhichregulatedfinancialentitiesmustoperate.Additionally,heiswellversedintheregulatoryframeworkunderwhichinvestmentcompaniesmustoperatebasedonhisserviceasamemberofthreeothermutualfundboards.Thispracticalandextensiveexperienceinthesecuritiesindustryprovidesvaluable insight into fundoperationsandenhanceshisability toeffectivelyserveaschairmanof theBoard.Mr.PalanciaholdsaBachelorofSciencedegreeinEconomics.

MarkH.Taylorhasover30yearsofacademicandprofessionalexperienceintheaccountingandauditing

fields which makes him particularly qualified to serve as the Trust’s Audit Committee chair. He holds PhD,Master’sandBachelor’sdegreesinAccountingandisa licensedCertifiedPublicAccountant.Dr.TaylorchairstheDepartmentofAccountancyintheWeatherheadSchoolofManagementatCaseWesternReserveUniversityand is theAndrewD.BradenProfessorofAccountingandAuditing.SinceAugust 2017,Dr.Taylor hasbeenservingathree-yeartermasVice

58

 President-FinanceontheBoardofDirectorsoftheAmericanAccountingAssociation(AAA).From2012to2015,heserveda3-yeartermasPresidentoftheAuditingSectionoftheAAA(Vice-President2012-2013,President2013-2014,andPastPresident (2014-2015).Dr.Taylorservesasamemberof twoothermutual fundboardswithintheNorthernLightsFundComplex,andcompletedafellowshipintheProfessionalPracticeGroupoftheOfficeof theChiefAccountantat theheadquartersof theUnitedStatesSecuritiesExchangeCommission.Healsoservedathree-yeartermontheAICPA’sAuditingStandardsBoard(2010-2012).Dr.TaylorisamemberoftworesearchteamsthatrecentlyreceivedgrantsfromtheCenterforAuditQualitytostudyhowauditorsmanagetheprocessofauditing fairvaluemeasurements in financialstatementsandhowaccounting firms’ tone-at-thetopmessaging impactsauditperformance.Dr.Taylor teachescorporategovernanceandaccountingpolicyaswell as auditing and assurance services and possesses a strong understanding of the regulatory frameworkunderwhichinvestmentcompaniesoperate.

Jeffery D. Young has 40 years of business management experience, including in the transportation

industryandoperationsandinformationtechnologies.HeiscurrentlyCo-ownerandVicePresidentoftheLatinAmerica AgricultureDevelopment Corporation, an agribusiness exporting fruit to theUnited States and otherCentral American countries. He has served as Assistant Vice President of Transportation Systems at UnionPacificRailroadCompany,where hewas responsible for the development and implementation of large scalecommandandcontrolsystemsthatsupportrailroadoperationsandsafety.Inthisposition,Mr.Youngwasheavilyinvolvedintheregulatorycomplianceofsafetyandmissioncriticalsystems.Mr.YoungalsoservedasChairmanoftheAssociationofAmericanRailroadsPolicyCommitteeandrepresentedbothUnionPacificRailroadandtherailroadindustryinsafetyandregulatoryhearingswiththeNationalTransportationSafetyBoardandtheFederalRailroad Administration in Washington, DC. Mr. Young was a member of the Board of Directors of PSTechnologies, a Union Pacific affiliate serving as a technology supplier to the railroad industry. His practicalbusinessexperienceandunderstandingofregulatorycomplianceprovidesadifferentperspectivethatwillbringdiversitytoBoarddeliberations.

TrusteesandOfficers.TheTrusteesandofficersoftheTrust,togetherwithinformationastotheirprincipalbusinessoccupationsduringthepastfiveyearsandotherinformation,areshownbelow.Unlessotherwisenoted,theaddressofeachTrusteeandofficeris17645WrightStreet,Suite200,Omaha,Nebraska68130.

IndependentTrustees

Name,Address,YearofBirth

Position(s)HeldwithRegistrant

LengthofServiceandTerm

PrincipalOccupation(s)DuringPast5Years

NumberofFundsOverseenInTheFundComplex*

OtherDirectorshipsHeldDuringPast5Years**

JamesU.Jensen1944

Trustee SinceFebruary2012,Indefinite

ChiefExecutiveOfficer,ClearWaterLaw&GovernanceGroup,LLC(anoperatingboardgovernanceconsultingcompany)(since2004).

3 NorthernLightsFundTrustIII(forseriesnotaffiliatedwiththeFundssince2012);WasatchFundsTrust,(since1986);UniversityofUtahResearchFoundation(April2000toMay2018);

PatriciaLuscombe1961

Trustee SinceJanuary2015,Indefinite

ManagingDirectoroftheValuations&OpinionsGroup,LincolnInternationalLLC(sinceAugust2007).

3 NorthernLightsFundTrustIII(forseriesnotaffiliatedwiththeFundssince2015);MonettaMutualFunds(sinceNovember2015).

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 JohnV.Palancia1954

Trustee,Chairman

Trustee,sinceFebruary2012,Indefinite;ChairmanoftheBoardsinceMay2014

Retired(since2011). 3 NorthernLightsFundTrustIII(forseriesnotaffiliatedwiththeFundssince2012);NorthernLightsFundTrust(since2011);NorthernLightsVariableTrust(since2011);AlternativeStrategiesFund(since2012).

MarkH.Taylor1964

Trustee,ChairmanoftheAuditCommittee

SinceFebruary2012,Indefinite

Chair,DepartmentofAccountancyandAndrewD.BradenProfessorofAccountingandAuditing,WeatherheadSchoolofManagement,CaseWesternReserveUniversity(since2009);VicePresident-Finance,AmericanAccountingAssociation(2017-2020);President,AuditingSectionoftheAmericanAccountingAssociation(2012-15).

3 NorthernLightsFundTrustIII(forseriesnotaffiliatedwiththeFundssince2012);NorthernLightsFundTrust(since2007);NorthernLightsVariableTrust(since2007);AlternativeStrategiesFund(sinceJune2010).

JefferyD.Young1956

Trustee SinceJanuary2015,Indefinite

Co-ownerandVicePresident,LatinAmericaAgricultureDevelopmentCorp.(sinceMay2015);President,CeleritasRailConsulting(sinceJune2014).

3 NorthernLightsFundTrustIII(forseriesnotaffiliatedwiththeFundssince2015).

*AsofMarch31,2019,theTrustwascomprisedof36activeportfoliosmanagedby15unaffiliatedinvestmentadvisers.Theterm“FundComplex”appliesonlytotheFunds.TheFundsdonotholdthemselvesoutasrelatedtoanyotherserieswithintheTrustforinvestmentpurposes,nordotheysharethesameinvestmentadviserwithanyotherseries.**Onlyincludesdirectorshipsheldwithinthepast5yearsinacompanywithaclassofsecuritiesregisteredpursuanttoSection12oftheSecuritiesExchangeAct of 1934or subject to the requirementsofSection15(d) of theSecuritiesExchangeAct of 1934, or any company registeredasaninvestmentcompanyunderthe1940Act.OfficersoftheTrustName,Address,YearofBirth

Position(s)HeldwithRegistrant

LengthofServiceandTerm PrincipalOccupation(s)DuringPast5Years

RichardMalinowski80ArkayDrive,Hauppauge,NY117881983

President SinceAugust2017,indefinite

SeniorVicePresident(since2017),VicePresidentandCounsel(2015-2016)andAssistantVicePresident(2012–2015),GeminiFundServices,LLC.

BrianCurley80ArkayDrive,Hauppauge,NY117881970

Treasurer SinceFebruary2013,indefinite

VicePresident,GeminiFundServices,LLC(since2015),AssistantVicePresident,GeminiFundServices,LLC(2012-2014).

EricKane80ArkayDrive,Hauppauge,NY117881981

Secretary SinceNovember2013,indefinite

VicePresidentandCounsel,GeminiFundServices,LLC(since2017),AssistantVicePresident,GeminiFundServices,LLC(2014-2017),StaffAttorney,GeminiFundServices,LLC(2013-2014).

WilliamKimme1962

ChiefComplianceOfficer

SinceFebruary2012,indefinite

SeniorComplianceOfficerofNorthernLightsComplianceServices,LLC(since2011).

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 Audit Committee. The Board has an Audit Committee that consists solely of Trustees who are not

"interested persons" of the Trust within themeaning of the 1940 Act. The Audit Committee's responsibilitiesinclude:(i)recommendingtotheBoardtheselection,retentionorterminationoftheTrust'sindependentauditors;(ii) reviewing with the independent auditors the scope, performance and anticipated cost of their audit; (iii)discussingwiththeindependentauditorscertainmattersrelatingtotheTrust'sfinancialstatements,includinganyadjustmenttosuchfinancialstatementsrecommendedbysuchindependentauditors,oranyotherresultsofanyaudit;(iv)reviewingonaperiodicbasisaformalwrittenstatementfromtheindependentauditorswithrespecttotheir independence, discussing with the independent auditors any relationships or services disclosed in thestatement that may impact the objectivity and independence of the Trust's independent auditors andrecommending that the Board take appropriate action in response thereto to satisfy itself of the auditor'sindependence; and (v) considering the comments of the independent auditors andmanagement's responsestheretowith respect to thequalityandadequacyof theTrust'saccountingand financial reportingpoliciesandpractices and internal controls. The Audit Committee operates pursuant to an Audit Committee Charter. Dr.TaylorisChairmanoftheAuditCommittee.Duringthepastfiscalyear,theAuditCommitteeheldfourmeetings.

CompensationofDirectors.EffectiveApril1,2019,eachTrusteewhoisnotaffiliatedwiththeTrustoraninvestmentadvisertoanyseriesoftheTrustwillreceiveaquarterlyfeeof$21,500,allocatedamongeachofthevarious portfolios comprising the Trust, for his or her attendance at the regularly scheduledmeetings of theBoardofTrustees,tobepaidinadvanceofeachcalendarquarter,aswellasreimbursementforanyreasonableexpensesincurred.FromJanuary1,2017throughMarch31,2019,eachTrusteewhowasnotaffiliatedwiththeTrust or an investment adviser to any series of the Trust received a quarterly fee of $20,000 for his or herattendance at the regularly scheduledmeetings of the Board of Trustees, paid in advance of each calendarquarter,aswellasreimbursementforanyreasonableexpensesincurred.EffectiveJanuary1,2017,inadditiontothequarterlyfeesandreimbursements,theChairmanoftheBoardreceivesaquarterlyfeeof$5,000,andtheAuditCommitteeChairmanreceivesaquarterlyfeeof$3,750.

Additionally,intheeventanin-personmeetingoftheBoardofTrusteesotherthanitsregularlyscheduledmeetings (a “SpecialMeeting”) is required,each IndependentTrusteewill receivea feeof$2,500perSpecialMeeting,aswellasreimbursementforanyreasonableexpensesincurred,tobepaidbytherelevantseriesoftheTrustoritsinvestmentadviserdependingonthecircumstancesnecessitatingtheSpecialMeeting.NoneoftheexecutiveofficersreceivecompensationfromtheTrust.

ThetablebelowdetailstheamountofcompensationtheTrusteesreceivedfromtheFundsduringthefiscalyearendedMarch31,2019.TheTrustdoesnothaveabonus,profitsharing,pensionorretirementplan.

NameandPosition

NewfoundRiskManagedGlobalSectorsFund

NewfoundMulti-AssetIncomeFund

NewfoundRiskManagedU.S.Sectors

Fund

PensionorRetirementBenefitsAccruedasPartofFund

Expenses

EstimatedAnnualBenefitsUpon

Retirement

TotalCompensationFromFund

Complex*PaidtoTrustees

JamesU.Jensen $2,244.22 $2,252.27 $2,243.10 None None $6,739.59

PatriciaLuscombe $2,244.22 $2,252.27 $2,243.10 None None $6,739.59

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 JohnV.Palancia $2,992.30 $3,003.03 $2,990.80 None None $8,986.13

MarkH.Taylor $2,742.94 $2,752.78 $2,741.57 None None $8,237.29

JefferyD.Young $2,244.22 $2,252.27 $2,243.10 None None $6,739.59

*TherearecurrentlynumerousseriescomprisingtheTrust.Theterm“FundComplex”refersonlytotheFunds,andnottoanyotherseriesoftheTrust.ForthefiscalyearendedMarch31,2019,theaggregateindependentTrustees’feespaidbytheentireTrustwere$435,000.Trustees'Ownership of Shares in the Funds.As of December 31, 2018, the Trustees beneficially owned thefollowingamountsintheFunds:

NameofTrustee DollarRangeofEquitySecuritiesintheFunds

AggregateDollarRangeofEquitySecuritiesinAllRegisteredInvestmentCompaniesOverseenbyTrusteeinFamilyofInvestmentCompanies*

JamesU.Jensen None $10,001-$50,000PatriciaLuscombe None $10,001-$50,000JohnV.Palancia None $10,001-$50,000MarkH.Taylor None $10,001-$50,000JefferyD.Young None NoneFINANCIALSTATEMENTS

The financialstatementsand reportof the independent registeredpublicaccounting firm required tobe

included in this SAI are hereby incorporated by reference to the Annual Report for the Funds for the periodendedMarch31,2019,areincorporatedbyreference.YoucanobtaintheSemi-AnnualReportandtheAnnualReportwithoutchargebycallingtheFundsat1-855-394-9777.

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APPENDIXABONDRATINGS

DESCRIPTIONOFMOODY'SCORPORATEBONDRATINGS

Aaa.BondsratedAaaarejudgedtobethebestquality.Theycarrythesmallestdegreeofinvestmentriskandaregenerally referred toas"giltedge." Interestpaymentsareprotectedbya largeorbyanexceptionallystablemarginandprincipalissecure.Whilethevariousprotectiveelementsarelikelytochange,suchchangesascanbevisualizedaremostunlikelytoimpairthefundamentallystrongpositionoftheseissues.

Aa.BondswhichareratedAaare judgedtobeofhighqualitybyallstandards.Togetherwith theAaagrouptheycomprisewhataregenerallyknownashigh-gradebonds.TheyareratedlowerthanthebestbondsbecausemarginsofprotectionmaynotbeaslargeasinAaasecuritiesorfluctuationofprotectiveelementsmaybe of greater amplitude or there may be other elements present which make the long-term risks appearsomewhatlargerthaninAaasecurities.

A.BondswhichareratedApossessmanyfavorableinvestmentattributesandaretobeconsideredasuppermediumgradeobligations.Factorsgivingsecurity toprincipaland interestareconsideredadequatebutelementsmaybepresentwhichsuggestasusceptibilitytoimpairmentsometimeinthefuture.

Baa.BondswhichareratedBaaareconsideredasmediumgradeobligations,i.e.,theyareneitherhighlyprotected nor poorly secured. Interest payments and principal security appear adequate for the present butcertainprotectiveelementsmaybelackingormaybecharacteristicallyunreliableoveranygreatlengthoftime.Suchbondslackoutstandinginvestmentcharacteristicsandinfacthavespeculativecharacteristicsaswell.

Ba.BondswhichareratedBaarejudgedtohavespeculativeelements;theirfuturepaymentscannotbeconsideredaswellassured.Oftentheprotectionofinterestandprincipalmaybeverymoderateandtherebynotwellsafeguardedduringbothgoodandbadtimesoverthefuture.Uncertaintyofpositioncharacterizesbondsinthisclass.

B. Bonds which are rated B generally lack characteristics of the desirable investment. Assurance ofinterestandprincipalpaymentsorofmaintenanceofothertermsofthecontractoveranylongperiodoftimemaybesmall.

Moody'sappliesthenumericalmodifiers1,2,and3toeachgenericratingclassificationfromAathroughB.Themodifier1indicatesthatthesecurityranksinthehigherendofitsgenericratingcategory;themodifier2indicatesamid-rangeranking;andthemodifier3 indicatesthat the issueranks in the lowerendof itsgenericratingcategory.DESCRIPTIONOFCOMMERCIALPAPERRATINGS

CommercialpaperratedPrime-lbyMoody'sarejudgedbyMoody'stobeofthebestquality.Theirshort-termdebtobligationscarrythesmallestdegreeof investmentrisk.Marginsofsupportforcurrentindebtednessarelargeorstablewithcashflowandassetprotectionwellinsured.Currentliquidityprovidesamplecoverageofnear-termliabilitiesandunusedalternativefinancingarrangementsare

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 generallyavailable.Whileprotectiveelementsmaychangeovertheintermediateorlongerterm,suchchangesaremostunlikelytoimpairthefundamentallystrongpositionofshort-termobligations.

Issuers(orrelatedsupporting institutions)ratedPrime-2haveastrongcapacityforrepaymentofshort-termpromissoryobligations.Thiswillnormallybeevidencedbymanyofthecharacteristicscitedabovebuttoalesserdegree.Earningstrendsandcoverageratios,whilesound,willbemoresubjecttovariation.Capitalizationcharacteristics,whilestillappropriate,maybemoreaffectedbyexternalconditions.Amplealternate liquidity ismaintained.

Commercial paper rated A by S&P have the following characteristics. Liquidity ratios are better thanindustryaverage.Long-termdebtratingisAorbetter.Theissuerhasaccesstoatleasttwoadditionalchannelsofborrowing.Basicearningsandcashflowareinanupwardtrend.Typically,theissuerisastrongcompanyinawell-establishedindustryandhassuperiormanagement.IssuersratedAarefurtherrefinedbyuseofnumbers1,2,and3todenoterelativestrengthwithinthishighestclassification.ThoseissuersratedA-1thataredeterminedbyS&Ptopossessoverwhelmingsafetycharacteristicsaredenotedwithaplus(+)signdesignation.

Fitch'scommercialpaperratingsrepresentFitch'sassessmentoftheissuer'sabilitytomeetitsobligationsin a timelymanner. The assessment places emphasis on the existence of liquidity. Ratings range from F-1+whichrepresentsexceptionallystrongcreditqualitytoF-4whichrepresentsweakcreditquality.

Duff & Phelps' short-term ratings apply to all obligationswithmaturities of under one year, includingcommercialpaper,theuninsuredportionofcertificatesofdeposit,unsecuredbankloans,masternotes,bankersacceptances, irrevocable letters of credit and current maturities of long-term debt. Emphasis is placed onliquidity.RatingsrangefromDuff1+forthehighestqualitytoDuff5forthelowest,issuersindefault.IssuesratedDuff 1+are regardedas having the highest certainty of timely payment. Issues ratedDuff 1 are regardedashavingveryhighcertaintyoftimelypayment.

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 APPENDIXB

PROXYVOTINGPOLICIESANDPROCEDURESNEWFOUNDRESEARCHLLC

Votingclientproxies

Policy

Newfound,asamatterofpolicyandasa fiduciary,has responsibility forvotingproxies forportfoliosecuritiesconsistent with the best economic interests of the funds, portfolios and clients it advises.Our firmmaintainswrittenpolicies andproceduresas to thehandling, research, votingand reportingof proxy votingandmakesappropriate disclosures about our firm’s proxy policies and practices. Our policy and practice includes theresponsibilitytomonitorcorporateactions,receiveandvoteclientproxiesanddiscloseanypotentialconflictsofinterestaswellasmakinginformationavailabletoclientsaboutthevotingofproxiesfortheirportfoliosecuritiesandmaintainingrelevantandrequiredrecords.Background

Proxy voting is an important right of shareholders and reasonable care and diligencemust be undertaken toensurethatsuchrightsareproperlyandtimelyexercised.InvestmentadvisersregisteredwiththeSEC,andwhichexercisevotingauthoritywithrespecttoclientsecurities,arerequiredbyRule206(4)-6oftheAdvisersActto(a)adoptandimplementwrittenpoliciesandproceduresthatare reasonablydesigned toensure that client securitiesare voted in thebest interestsof clients,whichmustincludehowanadviseraddressesmaterialconflictsthatmayarisebetweenanadviser'sinterestsandthoseofits funds,portfoliosandclients;(b) todisclosetofunds,portfoliosandclientshowtheymayobtain informationfromtheadviserwithrespecttothevotingofproxiesfortheirsecurities;(c)todescribetoclientsasummaryofitsproxyvotingpoliciesandproceduresand,uponrequest,furnishacopytoitsclients;and(d)maintaincertainrecordsrelatingtotheadviser'sproxyvotingactivitieswhentheadviserdoeshaveproxyvotingauthority.Responsibility

Newfound’sChiefComplianceOfficerhastheresponsibilityfortheimplementationandmonitoringofourproxyvoting policy, practices, disclosures and record keeping, including outlining our voting guidelines in ourprocedures.Procedure

Newfoundhasadoptedprocedures to implement the firm’spolicyandreviewstomonitorand insure the firm’spolicyisobserved,implementedproperlyandamendedorupdated,asappropriate,whichincludethefollowing:VotingProcedures

I.INTRODUCTIONNewfound has adopted proxy voting policies and procedures as required byRule 206(4)-6 of the InvestmentAdvisersActof1940.II.GLOSSARYOFTERMSNon-RoutineProxyProposalsshallmean:

· Proxyproposalsthataretobeconsideredonacase-by-casebasis,· ProxyproposalsthatAdvisorgenerallyabstainsfromvotingon,and· Proxyproposals that arenot addressedby thePrinciplesandGuidelines sectionof theProxyVoting

PolicyandProcedures.

TheProxyManagershallbeourChiefExecutiveOfficer.

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 TheProxyCommitteeshallbecomprisedofthefollowingperson(s):

1) OurChiefExecutiveOfficer2) OurChiefInvestmentOfficer3) OurManagingDirector(portfoliomanager)

AquorumoftheProxyCommitteeshallbecomprisedofamajorityofthemembersoftheProxyCommittee.RoutineProxyProposalsshallmeanproxyproposalsthattheProxyManagershallcasteitheryesornovotesinaccordancewiththePrinciplesandGuidelinesnotedbelow.III.PRINCIPLESANDGUIDELINES

A. Principles.Newfound’sprimarypurposeand fiduciary responsibility is tomaximize shareholder value,whichisdefinedassharepriceanddividendappreciation.Newfoundwillvoteproxiesinthebestinterestsofourfunds,portfoliosandclientsandwillgenerallyvotefor,against,consideronacase-by-casebasis,orabstainfromvotingasindicatedbelow.Becauseoftheextenuatingcircumstancesassociatedwithspecificproxyissues,Newfound’svotesmaydifferfromtimeto time fromthe indicationsnoted. Inaddition, the listmaynot includeallproxiesonwhichNewfoundvotes.Newfoundwill also act, in our best judgment, on behalf of our funds, portfolios and clients oncertain corporate actions that impact shareholder value, such as tender offers and bankruptcyproceedings.With respect to clients invested in Newfound’s investment strategies through separately managedaccounts; Newfound’s agreements with such clients state that decisions on voting of proxies will bemade by the clients unless a client directs Newfound in writing to vote such proxies. If a client sorequestsNewfoundtoexercisevotingrightsontheclient’sbehalf,thenNewfoundshallbepermitted,butnotrequiredtotakeanyactionwithrespecttothevotingoftheproxies.Insuchcases,Newfoundhasagreed not to render any advice or take any action with respect to securities or other investmentspresentlyor formerlyheld intheclient’saccounts,or the issuersthereof,whichbecomethesubjectofanyproceeding,includingclassactionsandbankruptcies.

B. VotingGuidelines

1. RoutineBusinessDecisionsandDirectorRelatedProposalsNewfoundvotesfor:a)Namechangesb)Directorsinuncontestedelectionsc)Elimination/limitationofdirectors’liabilityd)Indemnificationofdirectorse)ReincorporationthatisnotatakeoverdefenseNewfoundconsidersonacase-by-casebasis:f)Directorsincontestedelectionsg)Approvalofauditors.

2. CorporateGovernance

Newfoundvotesfor:a) Majorityindependentboardb) Audit,compensation&nominatingcommitteesthatarecomprisedexclusivelyof

66

 independentdirectors

c) Minimumdirectorshareownershipd) SeparateofficesofchairpersonandCEOe) Limitationonnumberofotherboardseatsf) Confidentialvotingg) Shareholders’abilitytoremovedirectorsh) Shareholderrighttocallspecialmeetings

Newfoundvotesagainst:a) Supermajorityvoterequirementsb) Limitingdirectors’tenurec) Restrictionsonshareholderstoactbywrittenconsent

3. Newfoundconsidersonacase-by-casebasis:

a) Shareholderproposalsb) Dissidentproxybattle

4. DirectorandExecutiveCompensation

Newfoundvotesfor:a)DisclosureofexecutivecompensationNewfoundvotesagainst:a) GoldenandtinparachutesNewfoundconsidersonacase-by-casebasis:a) Restrictingexecutivecompensationb) Executivecompensationplansc) Establish/Increaseshareoptionplansfordirectorsandexecutives

5. Take-OverDefenseNewfoundvotesagainst:a)Reincorporationtopreventtakeoverb)Issuenewclassofcommonstockwithunequalvotingrightsc)Adoptionoffairpriceamendmentsd)Establishaclassified(or“staggered”)boardofdirectorse)Eliminatingcumulativevotingf)Poisonpillsg)Blankcheckpreferredstock

6. CapitalStructure

Newfoundvotesfor:a) Increase authorized common stock (unless additional stock is a takeover defense, i.e., poison

pill).b) Sharerepurchaseprograms(whenallshareholdersmayparticipateonequalterms)

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 Newfoundvotesagainst:a) Unequalvotingrights,suchasdualclassofstockb) Pre-emptiverights

Newfoundconsidersonacase-by-casebasis:a) Increasepreferredstockb) Blankcheckpreferredstock(notfortakeoverdefense)c) Restructuringplans

7. OtherShareholderValueIssues

Newfoundvotesfor:a)Employeestockownershipplans(ESOPs)b)Employeestockpurchaseplansc)401(k)plansNewfoundvotesagainst:a) Greenmail

Newfoundconsidersonacase-by-casebasis:a) Mergersandacquisitionsb) Spin-offsandassetsales

8. Corporate, Social and Environmental Policy Proposals. As noted above, Newfound’s fiduciaryresponsibility is the maintenance and growth of our clients’ assets. Accordingly, Newfound willtypically vote in accordance with management’s recommendations or abstain from voting onproposalsconcerningcorporatepolicyandsocialandenvironmental issues.Whensuchproposalsimpactshareholdervalue,Newfoundmayvoteonacase-by-casebasis.

9. Proposals Specific to Mutual Funds. Newfound serves as investment adviser or sub-adviser tocertain investment companies registered with the Securities and Exchange Commission. Thesefundsmay invest inother investment companies that arenotaffiliatedwith the funds (“UnderlyingFunds”)andarerequiredbytheInvestmentCompanyActof1940,asamended(the“1940Act”)tohandleproxiesreceivedfromUnderlyingFundsinacertainmanner.Notwithstandingtheguidelinesprovided in these procedures, it is the policy of Newfound to vote all proxies received from theUnderlyingFunds in the sameproportion that all shares of theUnderlyingFunds are voted, or inaccordancewithinstructionsreceivedfromfundshareholders,pursuanttoSection12(d)(1)(F)ofthe1940 Act. After properly voted, the proxy materials are placed in a file maintained by the ChiefComplianceOfficerforfuturereference.

IV.ConflictsofInterestOnoccasion,aconflictof interestmayexistbetweenNewfoundandfunds,portfoliosandclientsregardingtheoutcome of certain proxy votes. In such cases, Newfound is committed to resolving the conflict in the bestinterestofourfunds,portfoliosandclientsbeforewevotetheproxyinquestion.If theproxyproposal isaRoutineProxyProposal,Newfoundwill typicallyadheretothestandardprocedureofreferringtotheprinciplesandguidelinesdescribedhereinindecidinghowtovote.

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 Alternatively,Newfoundmaydisclosetheconflicttoourclientsandobtaintheirconsentbeforevotingorseektherecommendationofanindependentthird-partyindecidinghowtovote.IftheproxyproposalisaNon-RoutineProxyProposal,Newfoundwilltakeanyofthefollowingcoursesofactiontoresolvetheconflict:1) Disclosetheconflicttoourfunds,portfoliosandclientsandobtainconsentbeforevoting;2) Suggest thatour funds,portfoliosandclientsengageanotherparty todeterminehow theproxyshouldbe

voted;or3) Voteaccordingtotherecommendationofanindependentthird-party,suchasa:

proxyconsultant;researchanalyst;proxyvotingdepartmentofamutualfundorpensionfund;orcomplianceconsultant.

V.ObtainingMoreInformationFunds,portfoliosandclientsmayobtainarecordofNewfound’sproxyvoting,freeofcharge,bycalling1-855-394-9777.ThesepoliciesandproceduresmayalsobefoundinNewfound’sFormADV,Part2Aandsupportingschedules.VI.ProceduresWhenthemailarrives, thepersonresponsible forseparating themailgivesanyproxymaterials to thepersonwhohandlescomplianceissues.TheproxymaterialsarethenopenedbytheComplianceperson.Iftheproxyisreceivedelectronically, theproxymaterialsare forwarded to theComplianceperson.The tickersymbol for thesecurity noted on the proxy is located. A Security Cross Reference report is run in Axys or similar portfoliomanagement softwareasof the recorddate,as statedon theproxy.This report tellshowmanyshareswereownedbyfunds,portfoliosandclientsasoftherecorddate,andcanbeprintedindetailsothattheexactclientswhoheldthesecurityontherecorddatearelisted.AnemailorSchwabComplianceTechnologiescaseissenttothedesignatedadministrativeemployeeabout thearrivalof theproxy. In theemail (orSCTcase) is listed thenameofthesecurity,tickersymbol,arrivaldate,custodianandnumberofshares.OncetheSecurityCrossReferencereporthasbeenrun,thenumberofsharesonthereportiscomparedtothenumberofsharestobevotedontheproxy.Ifthenumberofsharesbetweenthetworeportsmatches,thentheSecurityCrossReferencereportisattachedtotheproxymaterialsandforwardedtothePortfolioManagertobevotedaccordingtoNewfound’sproxyvotingpolicies.Ifthenumberofsharesdoesnotmatch,thenreasonableeffortswillbemadetoresolvethedifference,suchas:

· RerunningtheSecurityCrossReferencereportforotherdatesaroundtherecorddateoftheproxytoseeifthesecuritytransferredintoNewfoundaftertherecorddate,eventhoughtheclientowneditasoftherecorddate.

· Callingthecustodiantoconfirmtheclientspertheirrecordsthatareincludedintheproxycount,andthenverifyingthatinformationtotheSecurityCrossReferencereport.Theremaybedifferencesduetoclientshavingmadethedecisiontovotetheirproxies,inwhichcase,theproxieswouldgodirectlytotheclients.

69

 Ifthedifferencestillcannotberesolved,thematterisreviewedwiththePortfolioManagerastothenextactiontobe taken. If thedifference isdetermined tobe immaterial and isapprovedby thePortfolioManager, then theproxywillstandasis.Once theshareshavebeenreconciled, then theproxymaterialsand theSecurityCrossReferencereportarethengiventothePortfolioManagertovote.ThePortfolioManagerwill generally vote the routineproxies inaccordancewith theprinciplesandguidelinesdescribedinNewfound’sProxyVotingPolicyandsigntheproxy.ForNon-RoutineProxyProposals,thePortfolioManagerwillvotethemonacase-by-casebasis.Thevoteandtherationalewillbenotedasdocumentationforthevote.OncethePortfolioManagerhasvotedtheproxies,theywillbegiventothedesignatedadministrativeemployeeforprocessing.Iftheproxyistobemailed,thenacopyoftheproxyismade,attachedtotheproxymaterialsthatsupportthevoteandSecurityCrossReferencereportandfiledinchronologicalorder.Thisfileismaintainedbyyear.Iftheproxywasvotedelectronically,theoriginalproxywiththenotesonitisastohowtheproxywasvoted,aremaintainedandattachedtotheproxymaterialsthatsupportthevoteandSecurityCrossReferencereport,andfiledinchronologicalorder,justlikeproxiesthataremailed.ThedesignatedretailemployeethenentersthenecessaryinformationintheSchwabComplianceTechnologies.Thefollowinginformationisentered:

NameofCompanyProxyProposalManagement’srecommendationNewfound’sActionRationaleforthevoteListofclientstowhomtheproxyvoteapplies.

Should Newfound receive any requests from clients regarding proxy voting, the designated administrativeemployeewillmaintainarecordoftherequestsfromthespecificclients,whichwillinclude:

NameoftheClientDatethattherequestwasreceivedWhethertherequestwasforacompleteorpartialrecordofproxyvotesThedocumentsprovidedDatethattheinformationwassenttotheclient

Acopyoftheinformationsenttotheclientwillberetainedinachronologicalfile,maintainedbyyear.VII.DisclosureNewfoundwillprovideconspicuouslydisplayedinformationinitsFormADVPart2AintheSupportingSchedules,summarizingthisproxyvotingpolicyandprocedures,includingastatementthatclientsmayrequestinformationregarding howNewfound voted a client’s proxies, and that clientsmay request a copy of these policies andprocedures.Violationsof the firm'spoliciesmay result indisciplinaryactionsby the firmup toand including terminationofemployment.

70

 

PARTCOTHERINFORMATION

Item28.Exhibits.

(a)ArticlesofIncorporation.(i)Registrant'sAmendedAgreementandDeclarationofTrust,datedMay30,2019aspreviouslyfiledonJune7,2019tothe

Registrant’sRegistrationStatementinPost-EffectiveAmendmentNo.411,andherebyincorporatedbyreference.(ii)CertificateofTrust,whichwasfiledasanexhibittotheRegistrant'sRegistrationStatementonFormN-1AonDecember30,

2011,isincorporatedbyreference.

(b)By-Laws.Registrant'sBy-LawsaspreviouslyfiledonAugust19,2013totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.62,andherebyincorporatedbyreference.

(c)InstrumentsDefiningRightsofSecurityHolder.NoneotherthanintheDeclarationofTrustandBy-LawsoftheRegistrant.

(d)InvestmentAdvisoryContracts.

(i)InvestmentAdvisoryAgreementbetweenSwanCapitalManagement,Inc.andRegistrant,withrespecttotheSwanDefined

RiskFundaspreviouslyfiledonNovember13,2012totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.17,andherebyincorporatedbyreference.

(ii) Investment Advisory Agreement between Persimmon Capital Management, LP, and Registrant, with respect to the

PersimmonLong/Short Fundaspreviously filed onDecember 17, 2012 to theRegistrant'sRegistrationStatement inPost-EffectiveAmendmentNo.23,andherebyincorporatedbyreference.

(ii)(a)Amendment to theInvestmentAdvisoryAgreementbetweenPersimmonCapitalManagement,LPandRegistrant,with

respect to the Persimmon Long/Short Fund as previously filed on July 8, 2014 to theRegistrant's Registration Statement in Post-EffectiveAmendmentNo.119,andherebyincorporatedbyreference.

(ii)(b)Amendment to theInvestmentAdvisoryAgreementbetweenPersimmonCapitalManagement,LPandRegistrant,with

respecttothePersimmonLong/ShortFundaspreviouslyfiledonJanuary22,2019totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.379,andherebyincorporatedbyreference.

(iii) InvestmentAdvisoryAgreement betweenGoodHarbor Financial, LLCandRegistrant,with respect to theGoodHarbor

Tactical Core US Fund as previously filed on December 26, 2012 to the Registrant's Registration Statement in Post-EffectiveAmendmentNo.24,andherebyincorporatedbyreference.

(iii)(a)AmendmenttotheInvestmentAdvisoryAgreementbetweenGoodHarborFinancial,LLCandRegistrant,withrespectto

the Good Harbor Tactical Core US Fund as previously filed on June 17, 2016 to the Registrant's Registration Statement in Post-EffectiveAmendmentNo.247,andherebyincorporatedbyreference.

(iii)(b)AmendmenttotheInvestmentAdvisoryAgreementbetweenGoodHarborFinancial,LLCandRegistrant,withrespectto

theGoodHarborTacticalCoreUSFundaspreviously filedonJanuary22,2019 to theRegistrant'sRegistrationStatement inPost-EffectiveAmendmentNo.379,andherebyincorporatedbyreference.

(iv)InvestmentAdvisoryAgreementbetweenGratusCapital,LLCandRegistrant,withrespecttotheMarathonValuePortfolio

aspreviouslyfiledonJanuary18,2018totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.314,andherebyincorporatedbyreference.

(iv) (a) Interim InvestmentAdvisory Agreement betweenGratus Capital, LLC andRegistrant, with respect to theMarathon

ValuePortfolioaspreviouslyfiledonJanuary8,2018totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.313,andherebyincorporatedbyreference.

(v) Investment Advisory Agreement between Pinnacle Family Advisors, LLC and Registrant, with respect to the Pinnacle

Sherman Tactical Allocation Fund as previously filed onMay 15, 2013 to the Registrant's Registration Statement in Post-EffectiveAmendmentNo.51,andherebyincorporatedbyreference.

(vi) InvestmentAdvisoryAgreementbetweenStonebridgeCapitalAdvisors,LLCandRegistrant,withrespect totheCovered

BridgeFundaspreviouslyfiledonAugust19,2013totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.62,andherebyincorporatedbyreference.

(vi)(a)FirstAmendment to the InvestmentAdvisoryAgreement betweenStonebridgeCapitalAdvisors, LLCandRegistrant,

withrespect to theCoveredBridgeFundaspreviously filedonOctober25,2017to theRegistrant'sRegistrationStatement inPost-EffectiveAmendmentNo.305,andherebyincorporatedbyreference.

(vii) Investment AdvisoryAgreement betweenGoodHarbor Financial, LLC andRegistrant, with respect to the LelandReal

Asset Opportunities Fund as previously filed on September 23, 2013 to the Registrant's Registration Statement in Post-EffectiveAmendmentNo.70,andherebyincorporatedbyreference.

(vii)(a)AmendmenttotheInvestmentAdvisoryAgreementbetweenGoodHarborFinancial,LLCandRegistrant,withrespectto

theLelandRealAssetOpportunitiesFundaspreviouslyfiledonJanuary22,2019totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.379,andherebyincorporatedbyreference.

(viii) InvestmentAdvisoryAgreementbetweenFirstAssociatedInvestmentAdvisors, Inc.andRegistrant,withrespect toThe

TebergFundaspreviouslyfiledonDecember13,2013totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.86,andherebyincorporatedbyreference.

(ix) Investment Advisory Agreement between RESQ Investment Partners, LLC and Registrant, with respect to the RESQ

AbsoluteEquityFundandRESQAbsolute IncomeFundas previously filed onDecember 13, 2013 to theRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.85,andherebyincorporatedbyreference.

(x)(a) Amendment to the Investment Advisory Agreement between RESQ Investment Partners, LLC and Registrant, with

respect to the RESQ Absolute Equity Fund and RESQ Absolute Income Fund as previously filed on February 26, 2016 to theRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.236,andherebyincorporatedbyreference.

(xi) InvestmentAdvisoryAgreementbetweenHorizonCapitalManagement, Inc.andRegistrant,with respect to the Issachar

Fundaspreviously filedonFebruary10,2014 to theRegistrant'sRegistrationStatement inPost-EffectiveAmendmentNo.93,andherebyincorporatedbyreference.

(xi)(a)FirstAmendmenttotheInvestmentAdvisoryAgreementbetweenHorizonCapitalManagement,Inc.andRegistrant,withrespect to the Issachar Fund as previously filed on July 25, 2019 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.416,andherebyincorporatedbyreference.

(xii) Investment AdvisoryAgreement betweenNewfoundResearch LLC andRegistrant, with respect to theNewfoundRisk

Managed Global Sectors Fund as previously filed on April 25, 2014 to the Registrant's Registration Statement in Post-EffectiveAmendmentNo.107,andherebyincorporatedbyreference.

(xii) (a) SecondAmendment to the Investment AdvisoryAgreement betweenNewfoundResearch LLC andRegistrantwith

respect to NewfoundRiskManagedGlobal Sectors Fund, NewfoundMulti-Asset Income Fund andNewfoundRiskManagedU.S.SectorsFundaspreviouslyfiledonJuly28,2017totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.300,andherebyincorporatedbyreference.

(xii) (b) Third Amendment to the Investment Advisory Agreement between Newfound Research LLC and Registrant with

respect to Newfound Risk Managed Global Sectors Fund as previously filed on April 25, 2019 to the Registrant's RegistrationStatementinPost-EffectiveAmendmentNo.404,andherebyincorporatedbyreference.

(xiii)InvestmentAdvisoryAgreementbetweenHowardCapitalManagement,Inc.,andtheRegistrantwithrespecttotheHCM

TacticalGrowthFundaspreviouslyfiledonJuly8,2014totheRegistrant'sRegistrationStatement inPost-EffectiveAmendmentNo.119,andherebyincorporatedbyreference.

(xiii)(a)FirstAmendmenttotheInvestmentAdvisoryAgreementbetweenHowardCapitalManagement,Inc.,andtheRegistrant

withrespecttotheHCMTacticalGrowthFundaspreviouslyfiledonApril28,2017totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.294,andherebyincorporatedbyreference.

(xiv) InvestmentAdvisoryAgreementbetweenGoodHarborFinancial,LLCandRegistrant,with respect to theGoodHarbor

TacticalSelectFundaspreviouslyfiledonMay15,2014totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.113underthe1940Act,andherebyincorporatedbyreference.

(xiv)(a)AmendmenttotheInvestmentAdvisoryAgreementbetweenGoodHarborFinancial,LLCandRegistrant,withrespect

to theGoodHarborTacticalSelectFundaspreviously filedonJanuary22,2019 to theRegistrant'sRegistrationStatement inPost-EffectiveAmendmentNo.379,andherebyincorporatedbyreference.

(xv) InvestmentAdvisoryAgreementbetweenNewfoundResearchLLCandRegistrant,with respect to theNewfoundMulti-

AssetIncomeFundaspreviouslyfiledonSeptember3,2014totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.130,andherebyincorporatedbyreference.

(xv)(a)ThirdAmendmenttotheInvestmentAdvisoryAgreementbetweenNewfoundResearchLLCandRegistrantwithrespect

toNewfoundMulti-AssetIncomeFundaspreviouslyfiledonJuly24,2018totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.341,andherebyincorporatedbyreference.

(xv)(b) Fourth Amendment to the Investment Advisory Agreement between Newfound Research LLC and Registrant with

respect toNewfoundMulti-Asset IncomeFundaspreviously filedonOctober26,2018 to theRegistrant’sRegistrationStatement inPost-EffectiveAmendmentNo.352,andherebyincorporatedbyreference.

(xvi) Investment Advisory Agreement between Counterpoint Mutual Funds, LLC and Registrant, with respect to the

Counterpoint Tactical Income Fund as previously filed on September 24, 2015 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.203,andherebyincorporatedbyreference.

(xvii) Investment AdvisoryAgreement between Swan Capital Management, Inc. and Registrant, with respect to the Swan

DefinedRiskEmergingMarkets Fund as previously filed onDecember 3, 2014 to theRegistrant’sRegistrationStatement in Post-EffectiveAmendmentNo.143,andherebyincorporatedbyreference.

(xvii)(a) Amendment to the Investment Advisory Agreement between Swan Capital Management, Inc. and Registrant, with

respect to theSwanDefinedRiskEmergingMarketsFundas previously filed on January 23, 2017 to theRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.270,andherebyincorporatedbyreference.

(xviii)InvestmentSub-AdvisoryAgreementbetweenSwanCapitalManagement,Inc.,andSwanGlobalManagement,LLC,with

respect to theSwanDefinedRiskFundaspreviously filedonJanuary13,2015 to theRegistrant’sRegistrationStatement inPost-EffectiveAmendmentNo.149,andherebyincorporatedbyreference.

(xviii)(a)AmendmenttotheInvestmentSub-AdvisoryAgreementbetweenSwanCapitalManagement,Inc.,andSwanGlobal

Management,LLC,withrespecttotheSwanDefinedRiskFundandSwanDefinedRiskEmergingMarketsFundaspreviouslyfiledonJanuary 23, 2017 to the Registrant's Registration Statement in Post-Effective Amendment No. 270, and hereby incorporated byreference.

(xix)InvestmentSub-AdvisoryAgreementbetweenSwanCapitalManagement,Inc.,andSwanGlobalManagement,LLC,with

respect to theSwanDefinedRiskEmergingMarketsFundas previously filed on January 13, 2015 to theRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.149,andherebyincorporatedbyreference.

(xx) Investment Advisory Agreement between Ascendant Capital Management, LLC and Registrant, with respect to ACM

Dynamic Opportunity Fund, as previously filed on January 13, 2015 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.149,andherebyincorporatedbyreference.

(xxi)InvestmentAdvisoryAgreementbetweenHowardCapitalManagement,Inc.andRegistrant,withrespecttoHCMDividend

SectorPlusFund,aspreviously filedonMarch3,2015 to theRegistrant’sRegistrationStatement inPost-EffectiveAmendmentNo.160,andherebyincorporatedbyreference.

(xxii) InvestmentAdvisoryAgreementbetweenNewfoundResearchLLCandRegistrant,with respect to theNewfoundRisk

Managed U.S. Sectors Fund, as previously filed on June 2, 2015 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.171,andherebyincorporatedbyreference.

(xxii)(a) First Amendment to the Investment Advisory Agreement between Newfound Research LLC and Registrant, with

respect to the Newfound Risk Managed U.S. Sectors Fund as previously filed on April 28, 2017 to the Registrant's RegistrationStatementinPost-EffectiveAmendmentNo.294,andherebyincorporatedbyreference.

(xxii)(b)SecondAmendment to the InvestmentAdvisoryAgreementbetweenNewfoundResearchLLCandRegistrant,with

respect to the Newfound Risk Managed U.S. Sectors Fund as previously filed on April 25, 2019 to the Registrant's RegistrationStatementinPost-EffectiveAmendmentNo.404,andherebyincorporatedbyreference.

(xxiii)InvestmentAdvisoryAgreementbetweenGoodHarborFinancialLLCandRegistrantwithrespecttotheLelandThomson

ReutersVentureCapital IndexFundandLelandThomsonReutersPrivateEquity IndexFundaspreviously filedonSeptember24,2015totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.203,andherebyincorporatedbyreference.

(xxiv) InvestmentAdvisoryAgreement betweenPinnacleFamilyAdvisors, LLCandRegistrant,with respect to thePinnacle

Sherman Multi-Strategy Core Fund as previously filed on September 3, 2015 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.202,andherebyincorporatedbyreference.

(xxv)InvestmentAdvisoryAgreementbetweenAbsoluteCapitalManagement,LLCandRegistrant,withrespecttotheAbsolute

Capital Asset Allocator Fund and Absolute Capital Defender Fund as previously filed on December 14, 2018 to the Registrant’sRegistrationStatementinPost-EffectiveAmendmentNo.373,andherebyincorporatedbyreference.

(xxvi)InterimInvestmentAdvisoryAgreementbetweenAbsoluteCapitalManagement,LLCandRegistrant,withrespecttothe

AbsoluteCapitalAssetAllocatorFundandAbsoluteCapitalDefenderFundaspreviously filedonJuly24, 2018 to theRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.341,andherebyincorporatedbyreference.

(xxvii) Investment Advisory Agreement between Counterpoint Mutual Funds, LLC and Registrant, with respect to the

CounterpointTacticalEquityFundaspreviouslyfiledonOctober19,2015totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.208,andherebyincorporatedbyreference.

(xxvii)(a)Amendment to the InvestmentAdvisoryAgreementbetweenCounterpointMutualFunds,LLCandRegistrant,with

respecttotheCounterpointTacticalIncomeFundaspreviouslyfiledonOctober25,2017totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.305,andherebyincorporatedbyreference.

(xxviii) InvestmentAdvisoryAgreement betweenSwanCapitalManagement, LLCandRegistrant,with respect to theSwanDefinedRiskForeignDevelopedFundandSwanDefinedRiskU.S.SmallCapFundaspreviously filedonOctober27,2015 to theRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.210,andherebyincorporatedbyreference.

(xxix) InvestmentSub-AdvisoryAgreement betweenSwanCapitalManagement, LLC, andSwanGlobalManagement, LLC,

withrespecttotheSwanDefinedRiskForeignDevelopedFundandSwanDefinedRiskU.S.SmallCapFundaspreviouslyfiledonOctober 27, 2015 to the Registrant’s Registration Statement in Post-Effective Amendment No. 210, and hereby incorporated byreference.

(xxx) InvestmentAdvisoryAgreementbetweenBoydWattersonAssetManagement,LLCandRegistrant,with respect to the

BoydWattersonShortDurationEnhancedIncomeFundaspreviouslyfiledonJune17,2016totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.247,andherebyincorporatedbyreference.

(xxxi)InvestmentAdvisoryAgreementbetweenHowardCapitalManagement,Inc.,andtheRegistrantwithrespecttotheHCM

IncomePlusFundaspreviouslyfiledonJanuary23,2017totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.270,andherebyincorporatedbyreference.

(xxxi)(a) First Amendment to the Investment Advisory Agreement between Howard Capital Management, Inc. and the

RegistrantwithrespecttotheHCMIncomePlusFundaspreviouslyfiledonJuly24,2018totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.341,andherebyincorporatedbyreference.

(xxxii) Investment Advisory Agreement between Counterpoint Mutual Funds, LLC and Registrant, with respect to the

CounterpointLong-ShortEquityFundaspreviouslyfiledonJuly14,2017totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.297,andherebyincorporatedbyreference.

(xxxiii) Investment Advisory Agreement between Counterpoint Mutual Funds, LLC and Registrant, with respect to the

CounterpointTacticalMunicipalFundaspreviously filedonMay1,2018 to theRegistrant’sRegistrationStatement inPost-EffectiveAmendmentNo.338,andherebyincorporatedbyreference.

(xxxiv) InvestmentAdvisoryAgreementbetweenPinnacleFamilyAdvisors,LLCandRegistrant,with respect to thePinnacle

TrendRatingInnovativeEquityFundandPinnacleDynamicGrowthFundaspreviouslyfiledonNovember16,2018totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.365,andherebyincorporatedbyreference.

(xxxv) Investment AdvisoryAgreement betweenSwanCapitalManagement, LLC andRegistrant, with respect to theSwan

Defined Risk Growth Fund as previously filed on November 16, 2018 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.364,andherebyincorporatedbyreference.

(xxxvi) InvestmentSub-AdvisoryAgreementbetweenSwanCapitalManagement,LLC,andSwanGlobalManagement,LLC,

with respect to the Swan Defined Risk Growth Fund as previously filed on December 14, 2018 to the Registrant’s RegistrationStatementinPost-EffectiveAmendmentNo.373,andherebyincorporatedbyreference.

(xxxvii) InvestmentAdvisoryAgreementbetweenAscendantCapitalManagement,LLCandRegistrant,with respect toACM

Tactical Income Fund as previously filed on December 21, 2018 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.377,andherebyincorporatedbyreference.

(xxxviii)InvestmentAdvisoryAgreementbetweenHowardCapitalManagement,Inc.,andRegistrantwithrespecttotheHCM

RetirementDefender100IndexETFandHCMRetirementDefender500IndexETFtobefiledbysubsequentamendment.

(e)UnderwritingContracts.(i)UnderwritingAgreementbetweentheRegistrantandNorthernLightsDistributors,LLCaspreviouslyfiledonJune7,2019to

theRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.411,andherebyincorporatedbyreference.(f)BonusorProfitSharingContracts.None.

(g)CustodialAgreement.

(i)CustodyAgreementbetweentheRegistrantandTheHuntingtonNationalBankaspreviouslyfiledonAugust28,2012tothe

Registrant'sRegistrationStatementonFormN-1A,andherebyincorporatedbyreference.(ii)CustodyAgreementbetweentheRegistrantandUnionBank,N.A.aspreviouslyfiledonAugust28,2012totheRegistrant's

RegistrationStatementonFormN-1A,andherebyincorporatedbyreference.(iii) Custody Agreement between the Registrant and U.S. Bank, N.A. as previously filed on February 10, 2014 to the

Registrant'sRegistrationStatementinPost-EffectiveAmendmentNo.93,andherebyincorporatedbyreference.(iii)(a)AmendmenttoCustodyAgreementbetweentheRegistrantandU.S.Bank,N.A.aspreviouslyfiledonMay15,2014to

the Registrant's Registration Statement in Post-Effective Amendment No. 113 under the 1940 Act, and hereby incorporated byreference.

(iv)CustodyAgreementbetweentheRegistrantandFirstNationalBankofOmahaaspreviouslyfiledonOctober14,2014totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.139,andherebyincorporatedbyreference.

(v)CustodyAgreementbetween theRegistrantandFifthThirdBankaspreviously filedonJuly14,2017 to theRegistrant's

RegistrationStatementinPost-EffectiveAmendmentNo.297,andherebyincorporatedbyreference.

(h)OtherMaterialContracts.(i)FundServicesAgreementaspreviouslyfiledonApril9,2012totheRegistrant'sRegistrationStatementonFormN-1A,and

herebyincorporatedbyreference.(ii) Expense LimitationAgreement between Swan Capital Management, Inc. and the Registrant, with respect to the Swan

DefinedRiskFundaspreviouslyfiledonNovember13,2012totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.17,andherebyincorporatedbyreference.

(iii) Expense Limitation Agreement between Persimmon Capital Management, LP, and Registrant, with respect to the

PersimmonLong/Short Fundaspreviously filed onDecember 17, 2012 to theRegistrant'sRegistrationStatement inPost-EffectiveAmendmentNo.23,andherebyincorporatedbyreference.

(iii)(a)Amendment to theExpenseLimitationAgreementbetweenPersimmonCapitalManagement,LP,andRegistrant,with

respecttothePersimmonLong/ShortFundaspreviouslyfiledonJanuary23,2017totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.270,andherebyincorporatedbyreference.

(iii)(b)Amendment to theExpenseLimitationAgreementbetweenPersimmonCapitalManagement,LP,andRegistrant,with

respecttothePersimmonLong/ShortFundaspreviouslyfiledonJanuary22,2019totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.379,andherebyincorporatedbyreference.

(iv) Expense Limitation Agreement betweenGood Harbor Financial, LLC and Registrant, with respect to theGood Harbor

Tactical Core U.S. Fund as previously filed on December 26, 2012 to the Registrant's Registration Statement in Post-EffectiveAmendmentNo.24,andherebyincorporatedbyreference.

(iv)(a)AmendmenttotheExpenseLimitationAgreementbetweenGoodHarborFinancial,LLCandRegistrant,withrespectto

theGoodHarborTacticalCoreU.S.FundaspreviouslyfiledonJanuary22,2019totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.379,andherebyincorporatedbyreference.

(v) Expense Limitation Agreement between Pinnacle Family Advisors, LLC and Registrant, with respect to the Pinnacle

Sherman Tactical Allocation Fund as previously filed onMay 15, 2013 to the Registrant's Registration Statement in Post-EffectiveAmendmentNo.51,andherebyincorporatedbyreference.

(vi)ExpenseLimitationAgreementbetweenStonebridgeCapitalAdvisors,LLCandRegistrant,with respect toTheCovered

BridgeFundaspreviouslyfiledonAugust19,2013totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.62,andherebyincorporatedbyreference.

(vi)(a) Amendment to the Expense Limitation Agreement between Stonebridge Capital Advisors, LLC and Registrant, with

respecttoTheCoveredBridgeFundaspreviouslyfiledonApril28,2015totheRegistrant’sRegistrationStatementinPost-EffectiveNo.163,andherebyincorporatedbyreference.

(vi)(b) Amendment to the Expense Limitation Agreement between Stonebridge Capital Advisors, LLC and Registrant, with

respect to The Covered Bridge Fund as previously filed on October 25, 2017 to the Registrant's Registration Statement in Post-EffectiveAmendmentNo.305,andherebyincorporatedbyreference.

(vii)ExpenseLimitationAgreementbetweenGoodHarborFinancial,LLCandRegistrant,withrespecttotheLelandRealAsset

OpportunitiesFundaspreviouslyfiledonSeptember23,2013totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.70,andherebyincorporatedbyreference.

(vii)(a)AmendmenttotheExpenseLimitationAgreementbetweenGoodHarborFinancial,LLCandRegistrant,withrespectto

theLelandRealAssetOpportunitiesFundaspreviouslyfiledonJanuary22,2019totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.379,andherebyincorporatedbyreference.

(viii)ExpenseLimitationAgreementbetweenFirstAssociated InvestmentAdvisors, Inc. andRegistrant,with respect toThe

TebergFundaspreviouslyfiledonDecember13,2013totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.86,andherebyincorporatedbyreference.

(ix) Expense Limitation Agreement between RESQ Investment Partners, LLC and Registrant, with respect to the RESQ

Absolute Equity Fund and RESQ Absolute Income Fund as previously filed on January 8, 2018 to the Registrant's RegistrationStatementinPost-EffectiveAmendmentNo.313,andherebyincorporatedbyreference.

(x) Expense LimitationAgreement betweenHorizonCapitalManagement, Inc. andRegistrant, with respect to the Issachar

Fundaspreviously filedonFebruary27,2014 to theRegistrant'sRegistrationStatement inPost-EffectiveAmendmentNo.98,and

herebyincorporatedbyreference.(x)(a)FirstAmendmenttotheExpenseLimitationAgreementbetweenHorizonCapitalManagement,Inc.andRegistrant,with

respect to the Issachar Fund, as previously filed on July 25, 2019 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.416,andherebyincorporatedbyreference.

(xi) Expense Limitation Agreement between Newfound Research LLC and Registrant, with respect to the Newfound Risk

Managed Global Sectors Fund as previously filed on April 25, 2014 to the Registrant's Registration Statement in Post-EffectiveAmendmentNo.107,andherebyincorporatedbyreference.

(xii) Expense LimitationAgreement betweenGoodHarbor Financial, LLC andRegistrant, with respect to theGoodHarbor

TacticalSelectFundaspreviouslyfiledonMay15,2014totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.113underthe1940Act,andherebyincorporatedbyreference.

(xii)(a) First Amendment to the Expense Limitation Agreement between Good Harbor Financial, LLC and Registrant, with

respecttotheGoodHarborTacticalSelectFundaspreviouslyfiledonJanuary22,2019totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.379,andherebyincorporatedbyreference.

(xiii) Expense LimitationAgreement betweenNewfoundResearch LLCandRegistrant,with respect to theNewfoundMulti-

AssetIncomeFundaspreviouslyfiledonSeptember3,2014totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.130,andherebyincorporatedbyreference.

(xiv) Expense LimitationAgreement between Howard Capital Management, Inc., and Registrant, with respect to the HCM

TacticalGrowthFundaspreviouslyfiledonJuly8,2014totheRegistrant'sRegistrationStatement inPost-EffectiveAmendmentNo.119,andherebyincorporatedbyreference.

(xv)ExpenseLimitationAgreementbetweenCounterpointMutualFunds,LLCandRegistrant,withrespecttotheCounterpoint

Tactical Income Fund as previously filed on September 24, 2015 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.203,andherebyincorporatedbyreference.

(xvi)ExpenseLimitationAgreementbetweenSwanCapitalManagement,Inc.andRegistrant,withrespecttotheSwanDefined

Risk EmergingMarkets Fund as previously filed onDecember 3, 2014 to theRegistrant’sRegistration Statement in Post-EffectiveAmendmentNo.143,andherebyincorporatedbyreference.

(xvii)ExpenseLimitationAgreementbetweenAscendantCapitalManagement,LLCandRegistrant,withrespect to theACM

Dynamic Opportunity Fund as previously filed on January 13, 2015 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.149,andherebyincorporatedbyreference.

(xviii)ExpenseLimitationAgreementbetweenHowardCapitalManagement,Inc.andRegistrant,withrespecttoHCMDividend

SectorPlusFundaspreviouslyfiledonMarch3,2015totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.160,andherebyincorporatedbyreference.

(xviii)(a)FirstAmendment to theExpenseLimitationAgreementbetweenHowardCapitalManagement, Inc.andRegistrant,

withrespecttoHCMDividendSectorPlusFundaspreviouslyfiledonApril25,2019totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.404,andherebyincorporatedbyreference.

(xix) Expense LimitationAgreement between Newfound Research LLC and Registrant, with respect to the Newfound Risk

Managed U.S. Sectors Fund as previously filed on June 2, 2015 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.160,andherebyincorporatedbyreference.

(xx)ExpenseLimitationAgreementbetweenGoodHarborFinancial,LLCandRegistrant,withrespecttotheLelandThomson

ReutersVentureCapital IndexFundaspreviously filedonJuly24,2015 to theRegistrant’sRegistrationStatement inPost-EffectiveAmendmentNo.177,andherebyincorporatedbyreference.

(xxi)ExpenseLimitationAgreementbetweenGoodHarborFinancial,LLCandRegistrant,withrespecttotheLelandThomson

ReutersPrivateEquity IndexFund as previously filed on July 24, 2015 to theRegistrant’sRegistrationStatement inPost-EffectiveAmendmentNo.177,andherebyincorporatedbyreference.

(xxii) Expense LimitationAgreement between Pinnacle Family Advisors, LLC and Registrant, with respect to the Pinnacle

Sherman Multi-Strategy Core Fund as previously filed on September 3, 2015 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.202,andherebyincorporatedbyreference.

(xxiii)ExpenseLimitationAgreementbetweenAbsoluteCapitalManagement,LLCandRegistrant,withrespecttotheAbsolute

Capital Asset Allocator Fund and Absolute Capital Defender Fund as previously filed on October 13, 2015 to the Registrant’sRegistrationStatementinPost-EffectiveAmendmentNo.207,andherebyincorporatedbyreference.

(xxiv) Expense Limitation Agreement between Counterpoint Mutual Funds, LLC and Registrant, with respect to the

CounterpointTacticalEquityFundaspreviouslyfiledonOctober19,2015totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.208,andherebyincorporatedbyreference.

(xxv)ConsultingServicesAgreementbetweenRegistrantandNorthernLightsComplianceServices,LLC,aspreviouslyfiledon

July24,2015totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.177,andherebyincorporatedbyreference.(xxvi) Expense Limitation Agreement between Swan Capital Management, LLC and Registrant with respect of the Swan

DefinedRiskForeignDevelopedFundandSwanDefinedRiskU.S.SmallCapFundaspreviously filedonOctober27,2015 to theRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.210,andherebyincorporatedbyreference.

(xxvii)ExpenseLimitationAgreementbetweenBoydWattersonAssetManagement,LLCandRegistrant,with respect to the

Boyd Watterson Limited Duration Enhanced Income Fund as previously filed on June 17, 2016 to the Registrant's RegistrationStatementinPost-EffectiveAmendmentNo.247,andherebyincorporatedbyreference.

(xxvii)(a) First Amendment to the Expense Limitation Agreement between Boyd Watterson Asset Management, LLC and

Registrant,with respect to theBoydWattersonLimitedDurationEnhanced IncomeFundaspreviously filedonApril28,2017 to theRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.294,andherebyincorporatedbyreference.

(xxvii)(b)SecondAmendment to theExpenseLimitationAgreementbetweenBoydWattersonAssetManagement, LLCand

Registrant,withrespecttotheBoydWattersonLimitedDurationEnhancedIncomeFundaspreviouslyfiledonOctober29,2018totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.355,andherebyincorporatedbyreference.

(xxvii)(c) Third Amendment to the Expense Limitation Agreement between Boyd Watterson Asset Management, LLC and

Registrant,withrespecttotheBoydWattersonLimitedDurationEnhancedIncomeFundaspreviouslyfiledonFebruary27,2019totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.401,andherebyincorporatedbyreference.

(xxviii)ExpenseLimitationAgreementbetweenHowardCapitalManagement, Inc., andRegistrant,with respect to theHCM

IncomePlusFundaspreviouslyfiledonJanuary23,2017totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.270,andherebyincorporatedbyreference.

(xxix) Expense Limitation Agreement between Counterpoint Mutual Funds, LLC and Registrant, with respect to the

CounterpointLong-ShortEquityFundaspreviouslyfiledonJuly14,2017totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.297,andherebyincorporatedbyreference.

(xxx)ExpenseLimitationAgreementbetweenCounterpointMutualFunds,LLCandRegistrant,withrespecttotheCounterpoint

TacticalMunicipalFundaspreviouslyfiledonMay1,2018totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.338,andherebyincorporatedbyreference.

(xxxi) Expense LimitationAgreement between Pinnacle Family Advisors, LLC and Registrant, with respect to the Pinnacle

TrendRatingInnovativeEquityFundandPinnacleDynamicGrowthFundaspreviouslyfiledonNovember16,2018totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.365,andherebyincorporatedbyreference.

(xxxii) Expense LimitationAgreement between Swan Capital Management, LLC and Registrant, with respect to the Swan

DefinedRiskFund,SwanDefinedRiskEmergingMarketsFund,SwanDefinedRiskForeignDevelopedFundandSwanDefinedRiskU.S.SmallCapFundaspreviouslyfiledonNovember2,2018totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.356,andherebyincorporatedbyreference.

(xxxiii)ExpenseLimitationAgreementbetweenSwanCapitalManagement,LLCandRegistrant,withrespecttoSwanDefined

RiskGrowthFundaspreviouslyfiledonNovember16,2018totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.364,andherebyincorporatedbyreference.

(xxxiv)ExpenseLimitationAgreementbetweenAscendantCapitalManagement,LLCandRegistrant,withrespecttotheACM

Tactical Income Fund as previously filed on December 21, 2018 to the Registrant’s Registration Statement in Post-EffectiveAmendmentNo.377,andherebyincorporatedbyreference.

(xxxv)ExpenseLimitationAgreement betweenHowardCapitalManagement, Inc., andRegistrant,with respect to theHCM

IncomePlusFundaspreviouslyfieldonJuly9,2019totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.414,andherebyincorporatedbyreference.

(xxxvi)ExpenseLimitationAgreementbetweenHowardCapitalManagement, Inc.,andRegistrant,with respect to theHCM

RetirementDefender100IndexETFandHCMRetirementDefender500IndexETFtobefiledbysubsequentamendment.

(i)LegalConsentisfiledherewith.(j)OtherOpinions.ConsentoftheIndependentRegisteredPublicAccountingFirmisfiledherewith.(k)OmittedFinancialStatements.None.(l)InitialCapitalAgreements.None.

(m)Rule12b-1Plans.

(i)MasterDistributionandShareholderServicingPlanPursuanttoRule12b-1forClassASharesaspreviouslyfiledonApril22,2014totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.104,andherebyincorporatedbyreference.

(i)(a)AmendedandRestatedexhibitAtoMasterDistributionandShareholderServicingPlanPursuanttoRule12b-1forClass

ASharesaspreviouslyfiledonDecember21,2018totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.377,andherebyincorporatedbyreference.

(ii)MasterDistributionandShareholderServicingPlanPursuanttoRule12b-1forClassCSharesaspreviouslyfiledonApril

22,2014totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.104,andherebyincorporatedbyreference.(ii)(a)AmendedandRestatedexhibitAtoMasterDistributionandShareholderServicingPlanPursuanttoRule12b-1forClass

CSharesaspreviouslyfiledonNovember16,2018totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.364,andherebyincorporatedbyreference.

(iii)MasterDistributionandShareholderServicingPlanPursuanttoRule12b-1forClassNSharesaspreviouslyfiledonApril

22,2014totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.104,andherebyincorporatedbyreference.(iv)Master Distribution and Shareholder Servicing Plan Pursuant to Rule 12b-1 for No-Load Shares as previously filed on

August19,2013totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.62,andherebyincorporatedbyreference.(v)MasterDistributionandShareholderServicingPlanPursuanttoRule12b-1forNon-DesignatedClassaspreviouslyfiledon

April22,2014totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.104,andherebyincorporatedbyreference.(vi)MasterDistributionandShareholderServicingPlanPursuanttoRule12b-1forClassRSharesaspreviouslyfiledonJuly8,

2014totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.119,andherebyincorporatedbyreference.(vi)(a)AmendedandRestatedexhibitAtoMasterDistributionandShareholderServicingPlanPursuanttoRule12b-1forClass

RaspreviouslyfiledonJune17,2016totheRegistrant'sRegistrationStatement inPost-EffectiveAmendmentNo.247,andherebyincorporatedbyreference.

(vii)MasterDistributionandShareholderServicingPlanPursuanttoRule12b-1forClassA1aspreviouslyfiledonMarch3,

2015totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.160,andherebyincorporatedbyreference.(viii)MasterDistributionandShareholderServicingPlanPursuanttoRule12b-1forInvestorClassSharesaspreviouslyfiled

on March 3, 2015 to the Registrant’s Registration Statement in Post-Effective Amendment No. 160, and hereby incorporated byreference.

(viii)(a)AmendedandRestatedexhibitA toMasterDistributionandShareholderServicingPlanPursuant toRule12b-1 for

InvestorClassSharesaspreviouslyfiledonApril28,2017totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.294,andherebyincorporatedbyreference.

(n) (i)Rule 18f-3Plan as previously filed on July 8, 2014 to theRegistrant'sRegistrationStatement inPost-Effective

AmendmentNo.119,andherebyincorporatedbyreference.

(i)(a)AmendedandRestatedAppendixAtoRule18f-3PlanaspreviouslyfiledonJune7,2019totheRegistrant’sRegistrationStatementinPost-EffectiveAmendmentNo.411,andherebyincorporatedbyreference.

(o)Reserved.

(p)CodeofEthics.

(i)CodeofEthicsfortheTrustaspreviouslyfiledonApril25,2018totheRegistrant’sRegistrationStatementinPost-Effective

AmendmentNo.337,andherebyincorporatedbyreference.(ii)CodeofEthicsforNorthernLightsDistributors,LLCaspreviouslyfiledonOctober26,2018totheRegistrant’sRegistration

StatementinPost-EffectiveAmendmentNo.352,andherebyincorporatedbyreference.(iii) Code of Ethics of SwanCapitalManagement, Inc. as previously filed on June 8, 2012 to theRegistrant's Registration

StatementinPost-EffectiveAmendmentNo.4,andherebyincorporatedbyreference.(iv) Code of Ethics of Persimmon Capital Management LP as previously filed on December 14, 2018 to the Registrant’s

RegistrationStatementinPost-EffectiveAmendmentNo.373,andherebyincorporatedbyreference.(v)CodeofEthicsofGoodHarborFinancial,LLCaspreviouslyfiledonJune7,2019totheRegistrant’sRegistrationStatement

inPost-EffectiveAmendmentNo.411,andherebyincorporatedbyreference.

(vi) Code of Ethics of Pinnacle Family Advisors, LLC as previously filed onMay 15, 2013 to the Registrant's RegistrationStatementinPost-EffectiveAmendmentNo.51,andherebyincorporatedbyreference.

(vii)CodeofEthicsofStonebridgeCapitalAdvisors,LLCaspreviouslyfiledonJuly26,2017totheRegistrant'sRegistration

StatementinPost-EffectiveAmendmentNo.298,andherebyincorporatedbyreference.(viii) Code of Ethics of First Associated Investment Advisors, Inc. as previously filed on April 25, 2018 to the Registrant’s

RegistrationStatementinPost-EffectiveAmendmentNo.337,andherebyincorporatedbyreference.(ix)CodeofEthicsofRESQInvestmentPartners,LLCaspreviouslyfiledonOctober26,2018totheRegistrant’sRegistration

StatementinPost-EffectiveAmendmentNo.352,andherebyincorporatedbyreference.(x)CodeofEthicsofHorizonCapitalManagement, Inc.aspreviously filedonApril25,2018to theRegistrant’sRegistration

StatementinPost-EffectiveAmendmentNo.337,andherebyincorporatedbyreference.(xi)CodeofEthicsofNewfoundResearchLLCaspreviouslyfiledonJune7,2019totheRegistrant’sRegistrationStatementin

Post-EffectiveAmendmentNo.411,andherebyincorporatedbyreference.(xii)CodeofEthicsofHowardCapitalManagement, Inc.aspreviouslyfiledonJuly26,2017totheRegistrant'sRegistration

StatementinPost-EffectiveAmendmentNo.298,andherebyincorporatedbyreference.(xiii)CodeofEthicsofCounterpointMutualFunds,LLCaspreviously filedonApril25,2018to theRegistrant’sRegistration

StatementinPost-EffectiveAmendmentNo.337,andherebyincorporatedbyreference.(xiv) Code of Ethics of Ascendant Capital Management, LLC as previously filed on January 13, 2015 to the Registrant's

RegistrationStatementinPost-EffectiveAmendmentNo.149,andherebyincorporatedbyreference.(xv)CodeofEthicsofSwanGlobalManagement,LLCaspreviouslyfiledonJanuary22,2016totheRegistrant'sRegistration

StatementinPost-EffectiveAmendmentNo.221,andherebyincorporatedbyreference.(xvi)CodeofEthicsofAbsoluteCapitalManagement,LLCaspreviouslyfiledonJune7,2019totheRegistrant’sRegistration

StatementinPost-EffectiveAmendmentNo.411,andherebyincorporatedbyreference.(xvii)CodeofEthicsofBoydWattersonAssetManagement,LLCaspreviouslyfiledonDecember14,2018totheRegistrant’s

RegistrationStatementinPost-EffectiveAmendmentNo.373,andherebyincorporatedbyreference.(xviii)CodeofEthicsforGratusCapital,LLCaspreviouslyfiledonApril25,2018totheRegistrant’sRegistrationStatementin

Post-EffectiveAmendmentNo.337,andherebyincorporatedbyreference.(q)PowersofAttorney.

(i)PowerofAttorneyfortheTrust,andacertificatewithrespectthereto,andeachexecutiveofficer,aspreviouslyfiledonMay

30,2013totheRegistrationStatementinPost-EffectiveAmendmentNo.53,andherebyincorporatedbyreference.(ii)PowerofAttorney foreach trusteeaspreviously filedonFebruary26,2015to theRegistrant’sRegistrationStatement in

Post-EffectiveAmendmentNo.159,andherebyincorporatedbyreference.(iii)PowerofAttorneyfortheTrust,andacertificatewithrespectthereto,forBrianCurleyaspreviouslyfiledonJune17,2016

totheRegistrant'sRegistrationStatementinPost-EffectiveAmendmentNo.247,andherebyincorporatedbyreference.(iv)PowerofAttorney for theTrust,andacertificatewith respect thereto,andeachexecutiveofficer,aspreviously filedon

October 25, 2017 to the Registrant's Registration Statement in Post-Effective Amendment No. 305, and hereby incorporated byreference.Item29.ControlPersons.None.

Item30.Indemnification.Generally,certainoftheagreementswiththeTrust,orrelatedtotheTrust,provideindemnificationoftheTrust’sTrustees,officers,theunderwriter, and certain Trust affiliates. Insurance carried by the Trust provides indemnification of the Trustees and officers. Thedetailsofthesesourcesofindemnificationandinsurancefollow.ArticleVIII,Section2(a)oftheAgreementandDeclarationofTrustprovidesthattothefullestextentthatlimitationsontheliabilityofTrusteesandofficersarepermittedbytheDelawareStatutoryTrustActof2002,theofficersandTrusteesshallnotberesponsibleorliableinanyeventforanyactoromissionof:anyagentoremployeeoftheTrust;anyinvestmentadviserorprincipalunderwriteroftheTrust;orwithrespecttoeachTrusteeandofficer,theactoromissionofanyotherTrusteeorofficer,respectively.TheTrust,outoftheTrustProperty,isrequiredtoindemnifyandholdharmlesseachandeveryofficerandTrusteefromandagainstanyandallclaimsanddemandswhatsoeverarisingoutoforrelatedtosuchofficer’sorTrustee’sperformanceofhisorherdutiesasanofficerorTrusteeoftheTrust.ThislimitationonliabilityappliestoeventsoccurringatthetimeapersonservesasaTrusteeorofficeroftheTrustwhetherornotsuchpersonisaTrusteeorofficeratthetimeofanyproceedinginwhichliabilityisasserted.NothingcontainedintheAgreementandDeclarationofTrustindemnifies,holdsharmlessorprotectsanyofficerorTrusteefromoragainstanyliabilitytotheTrustorany

shareholdertowhichsuchpersonwouldotherwisebesubjectbyreasonofwillfulmisfeasance,badfaith,grossnegligenceorrecklessdisregardofthedutiesinvolvedintheconductofsuchperson’soffice.ArticleVIII,Section2(b)providesthateverynote,bond,contract,instrument,certificateorundertakingandeveryotheractordocumentwhatsoever issued,executedordonebyoronbehalfof theTrust, theofficersor theTrusteesoranyof theminconnectionwiththeTrustshallbeconclusivelydeemedtohavebeenissued,executedordoneonlyinsuchPerson’scapacityasTrusteeand/orasofficer,andsuchTrusteeorofficer,asapplicable,shallnotbepersonallyliabletherefore,exceptasdescribedinthelastsentenceofthefirstparagraphofSection2ofArticleVIII.Insofaras indemnificationfor liabilitiesarisingunder theSecuritiesActof1933maybepermittedto trustees,officersandcontrollingpersonsoftheRegistrantpursuanttotheprovisionsofDelawarelawandtheAgreementandDeclarationoftheRegistrantortheBy-LawsoftheRegistrant,orotherwise,theRegistranthasbeenadvisedthatintheopinionoftheSecuritiesandExchangeCommissionsuch indemnification is against public policy as expressed in theAct and is, therefore, unenforceable. In the event that a claim forindemnificationagainstsuchliabilities(otherthanthepaymentbytheRegistrantofexpensesincurredorpaidbyatrustee,officerorcontrolling person of the Trust in the successful defense of any action, suit or proceeding) is asserted by such trustee, officer orcontrollingpersoninconnectionwiththesecuritiesbeingregistered,theRegistrantwill,unlessintheopinionofitscounselthematterhasbeensettledbycontrollingprecedent,submittoacourtofappropriatejurisdictionthequestionwhethersuchindemnificationbyitisagainstpublicpolicyasexpressedintheActandwillbegovernedbythefinaladjudicationofsuchissue.PursuanttotheUnderwritingAgreementbetweentheTrustandNorthernlightsDistributors,LLC(“NLD”),theTrustagreestoindemnify,defendandholdNLD, itsseveralofficersandmanagers,andanypersonwhocontrolsNLDwithin themeaningofSection15of theSecuritiesActfreeandharmlessfromandagainstanyandallclaims,demands,liabilitiesandexpenses(includingthereasonablecostof investigatingor defending such claims, demandsor liabilities andany reasonable counsel fees incurred in connection therewith)whichNLD,itsofficersandmanagers,oranysuchcontrollingpersons,mayincurundertheSecuritiesAct,the1940Act,orcommonlaworotherwise,arisingoutoforbasedupon:(i)anyuntruestatement,orallegeduntruestatement,ofamaterialfactrequiredtobestatedineitheranyRegistrationStatementoranyProspectus,(ii)thebreachofanyrepresentations,warrantiesorobligationssetforthintheUnderwritingAgreement,(iii)anyomission,orallegedomission,tostateamaterialfactrequiredtobestatedinanyRegistrationStatementoranyProspectusornecessarytomakethestatementsinanyofthemnotmisleading,(iv)theTrust’sfailuretomaintainaneffectiveRegistrationstatementandProspectuswithrespecttoSharesoftheFundsthatarethesubjectoftheclaimordemand,(v)theTrust’sfailuretoprovideNLDwithadvertisingorsalesmaterialstobefiledwiththeFINRAonatimelybasis,(vi)theTrust’sfailuretoproperlyregisterFundSharesunderapplicablestatelaws,or(vii)reasonableactionstakenbyNLDresultingfromNLD’srelianceoninstructionsreceivedfromanofficer,agentorlegalcounseloftheTrust.PursuanttotheUnderwritingAgreement,NLDagreestoindemnify,defendandholdtheTrust,itsseveralofficersandBoardmembers,andanypersonwhocontrolstheTrustwithinthemeaningofSection15oftheSecuritiesAct,freeandharmlessfromandagainstanyandallclaims,demands,liabilitiesandexpenses(includingthereasonablecostofinvestigatingordefendingsuchclaims,demandsorliabilitiesandanyreasonablecounselfeesincurredinconnectiontherewith)whichtheTrust,itsofficersorBoardmembers,oranysuchcontrollingperson,mayincurundertheSecuritiesAct,the1940Act,orundercommonlaworotherwise,butonlytotheextentthatsuchliability or expense incurred by the Trust , its officers or Board members, or such controlling person results from such claims ordemands:(i)arisingoutoforbaseduponanysalesliterature,advertisements,information,statementsorrepresentationsmadebyNLDandunauthorizedbytheTrustoranyDisqualifyingConductinconnectionwiththeofferingandsaleofanyShares,or(ii)arisingoutoforbaseduponanyuntrue,orallegeduntrue,statementofamaterial factcontainedin informationfurnishedinwritingbyNLDtotheFund specifically for use in the Trust’s Registration Statement and used in the answers to any of the items of the RegistrationStatementorinthecorrespondingstatementsmadeintheProspectus,orshallariseoutoforbebaseduponanyomission,orallegedomission,tostateamaterialfactinconnectionwithsuchinformationfurnishedinwritingbyNLDtotheTrustandrequiredtobestatedinsuchanswersornecessarytomakesuchinformationnotmisleading.The Registrantmaintains amutual fund directors and officers liability policy. The policy, under certain circumstances, such as theinabilityoftheTrusttoindemnifyTrusteesandofficersprovidescoveragetoTrusteesandofficers.Coverageunderthepolicywouldincludelossesbyreasonofanyact,error,omission,misstatement,misleadingstatement,neglectorcertainbreachesofduty.Generally,eachmanagementagreementorinvestmentadvisoryagreementprovidesthatneithertheadvisernoranydirector,manager,officeroremployeeof theadviserperformingservices for theTrustat thedirectionor requestof theadviser inconnectionwith theadviser'sdischargeof itsobligationsunder theagreementshallbe liable foranyerrorof judgmentormistakeof lawor forany losssufferedbytheTrust inconnectionwithanymatter towhichtheagreementrelates,andtheadvisershallnotberesponsible foranyactionoftheTrusteesoftheTrustinfollowingordecliningtofollowanyadviceorrecommendationoftheadviseroranysub-adviserretained by the adviser pursuant to Section 9 of the agreement; PROVIDED, that nothing contained in the agreement shall beconstrued(i)toprotecttheadviseragainstanyliabilitytotheTrustoritsshareholderstowhichtheadviserwouldotherwisebesubjectbyreasonofwillfulmisfeasance,badfaith,orgrossnegligenceintheperformanceoftheadviser'sduties,orbyreasonoftheadviser'srecklessdisregardofitsobligationsanddutiesundertheagreement,or(ii)toprotectanydirector,manager,officeroremployeeoftheadviserwhoisorwasaTrusteeorofficeroftheTrustagainstanyliabilityoftheTrustoritsshareholderstowhichsuchpersonwouldotherwisebesubjectbyreasonofwillfulmisfeasance,badfaith,grossnegligenceorrecklessdisregardof theduties involved in theconductofsuchperson'sofficewiththeTrust.Additionally,generally,eachsub-advisoryagreementprovidesthatthesubadvisershallindemnify theadviser, theTrustandeachFund,and their respectiveaffiliatesandcontrollingpersons forany liabilityandexpenses,includingwithoutlimitationreasonableattorneys'feesandexpenses,whichtheadviser,theTrustand/ortheFundandtheirrespectiveaffiliatesandcontrollingpersonsmaysustainasaresultofthesubadviser'swillfulmisfeasance,badfaith,grossnegligence,recklessdisregard of its duties hereunder or violation of applicable law, including, without limitation, the federal and state securities laws.Generally,eachsub-advisoryagreementprovidesthatadvisershall indemnifythesubadviser,itsaffiliatesanditscontrollingpersons,foranyliabilityandexpenses,includingwithoutlimitationreasonableattorneys’feesandexpenses,whichmaybesustainedasaresultoftheadviser’swillfulmisfeasance,badfaith,grossnegligence,recklessdisregardofitsdutieshereunderorviolationofapplicablelaw,including,withoutlimitation,thefederalandstatesecuritieslaws.

Item31.ActivitiesofInvestmentAdvisorandSub-Advisor.

CertaininformationpertainingtothebusinessandotherconnectionsofeachAdvisorofeachseriesoftheTrustisherebyincorporatedhereinby reference to thesectionof the respectiveProspectuscaptioned "InvestmentAdvisor"and to thesectionof the respectiveStatementofAdditionalInformationcaptioned"InvestmentAdvisoryandOtherServices."TheinformationrequiredbythisItem31withrespect to each director, officer or partner of each Advisor is incorporated by reference to the Advisor's Uniform Application forInvestmentAdviserRegistration("FormADV")onfilewiththeSecuritiesandExchangeCommission("SEC").EachAdvisor'sFormADVmaybeobtained,freeofcharge,attheSEC'swebsiteatwww.adviserinfo.sec.gov,andmayberequestedbyFileNo.asfollows:

Swan Capital Management, LLC the Advisor of the Swan Defined Risk Fund, Swan Defined Risk EmergingMarkets Fund, SwanDefinedRiskForeignDevelopedFund,SwanDefinedRiskU.S.SmallCapFundandSwanDefinedRiskGrowthFund–FileNo.801-76701.SwanGlobalManagement,LLC,aSub-Adviserof theSwanDefinedRiskFund,SwanDefinedRiskEmergingMarketsFund,SwanDefinedRiskForeignDevelopedFund,SwanDefinedRiskU.S.SmallCapFundandSwanDefinedRiskGrowthFund–FileNo.801-80552.

PersimmonCapitalManagement,LP,theAdviserofthePersimmonLong/ShortFund–FileNo.801-56210.

GoodHarborFinancial,LLC,theAdviseroftheGoodHarborTacticalSelectFund,GoodHarborTacticalCoreUSFund,LelandRealAssetOpportunitiesFund,LelandThomsonReutersVentureCapital IndexFundandLelandThomsonReutersPrivateEquity IndexFund–FileNo.801-71064.

GratusCapital,LLC,theAdviseroftheMarathonValuePortfolio–FileNo.801-40286.PinnacleFamilyAdvisors,LLC,theAdviserofthePinnacleShermanTacticalAllocationFund,PinnacleShermanMulti-StrategyCoreFund,PinnacleTrendRatingInnovativeEquityFundandPinnacleDynamicGrowthFund–FileNo.801-78013.StonebridgeCapitalAdvisors,LLC,theAdviserofTheCoveredBridgeFund–FileNo.801-53760.

FirstAssociatedInvestmentAdvisors,theAdviserofTheTebergFund–FileNo.801-60972.

RESQInvestmentPartners,LLC, theAdviserof theRESQAbsoluteEquityFundandRESQAbsolute IncomeFund–FileNo.801-78822.

HorizonCapitalManagement,Inc.,theAdviseroftheIssacharFund–FileNo.801-26038.NewfoundResearchLLCtheAdviserof theNewfoundRiskManagedGlobalSectorsFund,NewfoundMulti-AssetIncomeFundandNewfoundRiskManagedU.S.SectorsFund–FileNo.801-73042.

HowardCapitalManagement,Inc.theAdviseroftheHCMTacticalGrowthFund,HCMDividendSectorPlusFund,andHCMIncomePlusFund–FileNo.801-69763.

Counterpoint Mutual Funds, LLC the Adviser of the Counterpoint Tactical Income Fund, Counterpoint Tactical Equity Fund,CounterpointLong-ShortEquityFundandCounterpointTacticalMunicipalFund–FileNo.801-80197.

AscendantCapitalManagement,LLCtheAdviserofACMDynamicOpportunityFundandACMTacticalIncomeFund–FileNo.801-80770.

AbsoluteCapitalManagement,LLCtheAdviserofAbsoluteCapitalAssetAllocatorFundandAbsoluteCapitalDefenderFund–FileNo.801-61336.BoydWattersonAssetManagement, LLC theAdviser ofBoydWattersonLimitedDurationEnhanced IncomeFund–FileNo. 801-57468.

Item32.PrincipalUnderwriter.

(a) NLD is the principal underwriter for all series of Northern Lights Fund Trust III. NLD also acts as principal underwriter for thefollowing:AdvisorOneFunds,ArrowETFTrust, Arrow InvestmentsTrust,Centerstone Investors Trust,CopelandTrust, EquinoxFundsTrust,Miller InvestmentTrust,MutualFundSeriesTrust,MutualFundandVariable InsuranceTrust,NorthCountryFunds,NorthernLightsFundTrust,NorthernLightsFundTrustII,NorthernLightsFundTrustIII,NorthernLightsFundTrustIV,NorthernLightsVariableTrust,OCMMutualFund,PREDEX,TheSaratogaAdvantageTrust,TributaryFunds,Inc.(b) NLD is registered with Securities and Exchange Commission as a broker-dealer and is a member of the Financial IndustryRegulatoryAuthority,Inc.TheprincipalbusinessaddressofNLDis17645WrightStreet,Suite200,Omaha,Nebraska68130.NLDis

anaffiliateofGeminiFundServices,LLCandisasubsidiaryofTheUltimusGroup,LLCandcompaniescontrolledbyit.ThefollowingaretheofficersofNLD:

Name PositionsandOfficeswithUnderwriter PositionsandOfficeswiththeTrust

WilliamJ.Strait President,GeneralCounsel,Secretary,andManager NoneDanielApplegarth TreasurerandFinancialOperationsPrincipal NoneJanelleHardy VicePresident,Compliance NoneMikeNielsen ChiefComplianceOfficerandAMLComplianceOfficer NoneKevinWolf Manager NoneDavidYoung Manager NoneMikeWagner Manager None

(c)Notapplicable.

Item33.LocationofAccountsandRecords.Allaccounts,booksanddocumentsrequiredtobemaintainedbytheRegistrantpursuanttoSection31(a)oftheInvestmentCompanyActof1940andRules31a-1through31a-3thereunderaremaintainedattheofficeoftheRegistrant,Adviser,Sub-Adviser,PrincipalUnderwriter,TransferAgent,FundAccountant,AdministratorandCustodianattheaddressesstatedintheSAI.

SwanCapitalManagement,LLC1099MainAve.,Ste.260,Durango,CO81301,pursuanttotheInvestmentAdvisoryAgreementwiththeTrust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttotheSwanDefinedRiskFund,SwanDefinedRiskEmergingMarketsFund,SwanDefinedRiskForeignDevelopedFund,SwanDefinedRiskU.S.SmallCapFundandSwanDefinedRiskGrowthFund.

PersimmonCapitalManagement,LP,1777SentryParkway,GwyneddHall,Suite102,BlueBell,PA19422pursuant to theAdvisoryAgreementwiththeTrust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttothePersimmonLong/ShortFund.

GoodHarborFinancial,LLC,330EastMainStreet,ThirdFloor,Barrington,IL60010,pursuanttotheAdvisoryAgreementswithTrust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttotheGoodHarborTacticalSelectFund,GoodHarborTacticalCoreUSFund,LelandRealAssetOpportunitiesFund,LelandThomsonReutersVentureCapital IndexFundandLelandThomsonReutersPrivateEquityIndexFund.

Gratus Capital, LLC, 3350 Riverwood Parkway, Suite 1550, Atlanta, GA, 30339 pursuant to the Advisory Agreement with Trust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttotheMarathonValuePortfolio.

PinnacleFamilyAdvisors,LLC,620W.RepublicRoad,Suite104,Springfield,MO65810pursuant to theAdvisoryAgreementwithTrust, maintains all records required pursuant to such agreement with respect to the Pinnacle Sherman Tactical Allocation Fund,PinnacleShermanMulti-StrategyCoreFund,PinnacleTrendRatingInnovativeEquityFundandPinnacleDynamicGrowthFund.

StonebridgeCapitalAdvisors,LLC,2550UniversityAvenueWest,Suite180South,SaintPaul,MN55114pursuant to theAdvisoryAgreementwithTrust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttoTheCoveredBridgeFund.FirstAssociated InvestmentAdvisors, Inc., 5161Miller TrunkHighwayDuluth,MN55811pursuant to theAdvisoryAgreementwithTrust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttoTheTebergFund.

RESQ InvestmentPartners,LLC9383EastBahiaDrive,Suite120,Scottsdale,AZ85260pursuant to theAdvisoryAgreementwithTrust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttoRESQDynamicAllocationFundandRESQStrategicIncomeFund.

HorizonCapitalManagement,Inc.106ValerieDrive,Lafayette,LA70508pursuanttotheAdvisoryAgreementwithTrust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttotheIssacharFund.

Newfound Research LLC, 425 Boylston Street, Third Floor, Boston, MA 02116 pursuant to the Advisory Agreement with Trust,maintains all records required pursuant to such agreement with respect to the Newfound Risk Managed Global Sectors Fund,NewfoundMulti-AssetIncomeFundandNewfoundRiskManagedU.S.SectorsFund.

Howard Capital Management, Inc., 1145 Hembree Road, Rosewell, GA 30076 pursuant to the Advisory Agreement with Trust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttotheHCMTacticalGrowthFund,HCMDividendSectorPlusFundandHCMIncomePlusFund.

CounterpointMutualFunds,LLC12760HighBluffDrive,Suite280,SanDiego,CA92130pursuant to theAdvisoryAgreementwithTrust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttotheCounterpointTacticalIncomeFund,CounterpointTacticalEquityFund,CounterpointLong-ShortEquityFundandCounterpointTacticalMunicipalFund.

AscendantCapitalManagement,LLC10866WilshireBlvd.,Suite1600,LosAngeles,CA90024pursuanttotheAdvisoryAgreementwithTrust,maintainsall recordsrequiredpursuant tosuchagreementwithrespect totheACMDynamicOpportunityFundandACMTacticalIncomeFund.SwanGlobalManagement, LLC41ShellCastle,Humacao,PR00791pursuant to theSub-AdvisoryAgreementwithSwanCapitalManagement, Inc.,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttotheSwanDefinedRisk,SwanDefinedRisk Emerging Markets Fund, Swan Defined Risk Foreign Developed Fund, Swan Defined Risk U.S. Small Cap Fund and SwanDefinedRiskGrowthFund.AbsoluteCapitalManagement,LLC101PennsylvaniaBoulevard,Pittsburgh,PA15228pursuanttotheAdvisoryAgreementwithTrust,maintains all records requiredpursuant to suchagreementwith respect to theAbsoluteCapitalAssetAllocatorFundandAbsoluteCapitalDefenderFund.BoydWattersonAssetManagement,LLC1301East9thStreet,Suite2900,Cleveland,OH44114pursuanttotheAdvisoryAgreementwithTrust,maintainsallrecordsrequiredpursuanttosuchagreementwithrespecttotheBoydWattersonLimitedDurationEnhancedIncomeFund.

Item34.ManagementServices.Notapplicable.

Item 35. Undertakings. The Registrant undertakes that each Subsidiary and each Director of each Subsidiary hereby consents toserviceofprocesswithintheUnitedStates,andtoexaminationofitsbooksandrecords.

SIGNATURESPursuanttotherequirementsoftheSecuritiesActof1933,asamended,andtheInvestmentCompanyActof1940,asamended,the

Registrantcertifiesthatitmeetsalloftherequirementsforeffectivenessofthisregistrationstatementunderrule485(b)undertheSecuritiesActandhasdulycausedthisregistrationstatementtobesignedonitsbehalfbytheundersigned,dulyauthorized,intheCityofHauppauge,andStateofNewYork,onthe26thdayofJuly,2019.

NorthernLightsFundTrustIII

By:/s/RichardMalinowskiRichardMalinowski,President

PursuanttotherequirementsoftheSecuritiesAct,thisregistrationstatementhasbeensignedbelowbythefollowingpersonsinthe

capacitiesindicatedonthedatesindicated.NorthernLightsFundTrustIIIName Title/s/RichardMalinowski PresidentBrianCurley* TreasurerJamesU.Jensen* IndependentTrusteePatriciaLuscombe* IndependentTrusteeJohnV.Palancia* IndependentTrusteeMarkH.Taylor* IndependentTrusteeJefferyD.Young* IndependentTrustee*By:Date:/s/EricD.KaneJuly26,2019EricD.Kane,Esq.*Attorney-in-Fact–PursuanttoPowersofAttorneyaspreviouslyfiledFebruary26,2015,June17,2016andOctober25,2017.

EXHIBITINDEXExhibit ExhibitNo.LegalConsent (i)ConsentoftheIndependentRegisteredPublicAccountingFirm (j)