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TICKER: EEHAX
CUSIP: 29446A785
INCEPTION DATE: Sep 9, 2013
TICKER: EEHCX
CUSIP: 29446A769
INCEPTION DATE: Sep 9, 2013
TICKER: EEHIX
CUSIP: 29446A777
INCEPTION DATE: Sep 9, 2013

DAILY PRICING (as of Jun 23, 2017)

NAV: Change: Change: Change YTD:
$10.48 +$0.02 +0.19% +7.27%

DAILY PRICING (as of Jun 23, 2017)

NAV: Change: Change: Change YTD:
$10.15 +$0.03 +0.30% +6.84%

DAILY PRICING (as of Jun 23, 2017)

NAV: Change: Change: Change YTD:
$10.56 +$0.03 +0.28% +7.32%

★★★★★ Morningstar RatingTM (EEHIX)

Out of 166 funds as of 3/31/2017 in the long/short equity category based on risk-adjusted three-year returns. Morningstar RatingsTM and rank do not account for sales charges.*

The Equinox EquityHedge US Strategy Fund is a mutual fund that seeks to provide exposure to broad based US equity indices, while employing a dynamic hedging strategy to potentially enhance returns and dampen risk during periods of equity market stress.

Prospectus Objective: The Equinox EquityHedge US Strategy Fund (the “Fund”) seeks to achieve capital appreciation with moderate correlation to and with less volatility than the S&P 500® Index.
 

Two Key Components

There are two key components to the Equinox EquityHedge US Strategy Fund:

1. The Equity Strategy:  Seeks broad based US Equity market exposure

 

On the long side, EquityHedge provides exposure to the S&P500 index or other broad-based US equity indices, primarily through investments in futures contracts.

Potential Benefit:   Profit potential from a broadly diversified US equity market exposure.

 

2. The Hedging Strategy: Seeks Dynamic Management of Equity Market Risk

 

The Hedging Strategy seeks to dynamically hedge the Fund’s exposure to the equity markets. EquityHedge employs a different approach than traditional long/short hedging strategies.  Developed by Quest Partners, LLC, a commodity trading advisor registered with the US Commodity Futures Trading Commission, the "Hedge" in EquityHedge:

  • seeks to take advantage of price momentum in markets that are negatively correlated with equities to potentially capture profits during sustained bear markets.
  • is reduced during sustained bull markets with the goal of capturing upside equity performance. 

Potential Benefit: A hedge that seeks to work best when markets are falling and strives to create little or no headwind when markets are booming.  

 

There is no assurance that the Fund’s investment in Quest Hedging Program with leveraged exposure to certain investments and markets will act as a successful hedging strategy or enable the Fund to achieve its investment objective.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS. YOU CAN LOSE MONEY IN A MANAGED FUTURES PROGRAM.

*For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds’ monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics.

Fund ratings are only one form of performance measurement. For the most current performance please refer to the ‘Performance’ tab.

FUND RISKS

Equinox’s judgments about the attractiveness, value and potential positive or negative performance of, the Quest Hedging Program (or any other similar hedging strategy) or any particular equity index or derivative in which the Fund invests may prove to be inaccurate and may not produce the desired results. The profitability of the Fund’s investment (typically through a swap agreement) in the Quest Hedging Program depends primarily on the ability of Quest Partners, LLC to anticipate price movements in the relevant markets and underlying derivative instruments and futures contracts. Such price movements are influenced by many factors. The Quest Hedging Program may not take all of the relevant factors into account. In addition, the Fund will indirectly bear the expenses, including management fees, and transaction fees, associated with the Quest Hedging Program through reduced returns.

Because the Fund will invest a substantial portion of its assets in futures, options or swaps that provide exposure to broad based equity indices and/or in exchange traded funds or other investments that seek to track the performance of selected equity indices, the value of the Fund’s portfolio will be affected by changes in the stock markets. At times, the stock markets can be volatile, and stock prices can change drastically. Market risk will affect the Fund’s net asset value, which will fluctuate as the values of the Fund’s portfolio’s assets change.

Equity indices are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Investor perceptions are based on various and unpredictable factors, including expectations regarding government, economic, monetary and fiscal policies; inflation and interest rates; economic expansion or contraction and global or regional political, economic and banking crises.

The Fund either directly or through a hedging program such as the Quest Hedging Program will take short positions on certain derivative instruments and may sell certain securities short. If the price of a derivative has increased during this time, then the Fund will incur a loss equal to the increase in price from the time that the short sale was entered into plus any premiums and interest paid to the third party. In contrast to the Fund's long positions, for which the risk of loss is typically limited to the amount invested, the potential loss on the Fund's short positions is unlimited.

The use of swap agreements and other derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities, commodities or currencies underlying those derivatives. Derivatives have economic leverage inherent in their terms that will magnify losses. There may be an imperfect correlation between the changes in market value of derivatives and the underlying asset upon which they are based. Purchased options may expire worthless. Derivative counterparties may default. There may not always be a liquid secondary market for derivative contracts.

The recent instability in financial markets has led the government to take a number of unprecedented actions designed to support certain financial institutions and segments of the financial markets that are exposed to extreme volatility and in some cases lack of liquidity. There can be no assurance that future regulatory actions authorized by the Dodd-Frank Act will not adversely impact the Fund. Major changes resulting from the Dodd-Frank Act or other legislative or regulatory actions could materially affect the profitability of the Fund or the value of investments made by the Fund or force the Fund to revise its investment strategy or divest certain of its investments.

The cost of investing in the Fund may be higher than the cost of other mutual funds that invest directly in futures, forwards or other derivative instruments. In addition to the Fund’s direct fees and expenses, you will indirectly bear fees and expenses paid by any hedging program in which the Fund invests (such as the Quest Hedging Program), including brokerage commissions and operating expenses. Further, any investment in a hedging program will be subject to management fees and, potentially, performance-based fees, which are typically based on the leveraged account size or the “notional exposure” of the Fund to the hedging program and not the actual cash invested.

The use of leverage by the Fund (or hedging program in which the Fund may invest such as the Quest Hedging Program) will cause the value of the Fund’s shares to be more volatile than if the Fund did not employ leverage.  There is a risk that issuers and counter parties will not make payments on investments held by the Fund, resulting in losses to the Fund.  Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund’s investments.  In general, the price of a fixed income security falls when interest rates rise.

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

A higher Fund turnover will result in higher transactional and brokerage costs.  Certain of the derivative instruments, including swap agreements, in which the Fund may invest may be traded (and privately negotiated) in the “over-the-counter” or “OTC” market. While the OTC derivatives market is the primary trading venue for many derivatives, it is largely unregulated.

ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This and other important information about the funds are contained in the applicable Prospectuses, which can be obtained by calling 1.888.643.3431. The Prospectuses should be read carefully before investing.


The Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. Equinox Group Distributors, LLC, Equinox Institutional Asset Management, LP and featured Commodity Trading Advisors are not affiliated with Northern Lights Distributors, LLC.

Equinox Institutional Asset Management, LP serves as the Fund’s investment advisor.  SECURITIES OFFERED THROUGH EQUINOX GROUP DISTRIBUTORS, LLC, MEMBER FINRA. To obtain more information, contact Equinox Funds at 1.877.837.0600. info@equinoxfunds.com.

The material provided on this website is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security or service in any jurisdiction where such transaction would be unauthorized or unlawful.

5306-NLD-4/24/2017  |  EIAM878

The Equinox EquityHedge US Strategy Fund is a mutual fund that seeks to provide exposure to broad based US equity indices, while employing a dynamic hedging strategy to potentially enhance returns and dampen risk during periods of equity market stress.

Hedge beta exposure by sector — as of May 31, 2017


Risk exposures are based on beta adjusted exposures where each position’s beta against the S&P 500® Total Return Index is measured and is aggregated by sector at the portfolio level.
*Source: Equinox Institutional Asset Management, LP and Bloomberg, LP. Reflects broad sector net risk exposures. Sector exposures and positions held may vary depending on market conditions and may not be representative of the Fund’s current or future exposures. Portfolio positions are subject to change and should not be considered investment advice.

Performance attribution — as of May 31, 2017


Attribution shown is A Share without load. Attribution numbers have been rounded for ease of use. Performance is net of fees and includes fixed income (starting November 2014). Past performance does not guarantee future results.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS. YOU CAN LOSE MONEY IN A MANAGED FUTURES PROGRAM.

*For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds’ monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics.

Fund ratings are only one form of performance measurement. For the most current performance please refer to the ‘Performance’ tab.

FUND RISKS

Equinox’s judgments about the attractiveness, value and potential positive or negative performance of, the Quest Hedging Program (or any other similar hedging strategy) or any particular equity index or derivative in which the Fund invests may prove to be inaccurate and may not produce the desired results. The profitability of the Fund’s investment (typically through a swap agreement) in the Quest Hedging Program depends primarily on the ability of Quest Partners, LLC to anticipate price movements in the relevant markets and underlying derivative instruments and futures contracts. Such price movements are influenced by many factors. The Quest Hedging Program may not take all of the relevant factors into account. In addition, the Fund will indirectly bear the expenses, including management fees, and transaction fees, associated with the Quest Hedging Program through reduced returns.

Because the Fund will invest a substantial portion of its assets in futures, options or swaps that provide exposure to broad based equity indices and/or in exchange traded funds or other investments that seek to track the performance of selected equity indices, the value of the Fund’s portfolio will be affected by changes in the stock markets. At times, the stock markets can be volatile, and stock prices can change drastically. Market risk will affect the Fund’s net asset value, which will fluctuate as the values of the Fund’s portfolio’s assets change.

Equity indices are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Investor perceptions are based on various and unpredictable factors, including expectations regarding government, economic, monetary and fiscal policies; inflation and interest rates; economic expansion or contraction and global or regional political, economic and banking crises.

The Fund either directly or through a hedging program such as the Quest Hedging Program will take short positions on certain derivative instruments and may sell certain securities short. If the price of a derivative has increased during this time, then the Fund will incur a loss equal to the increase in price from the time that the short sale was entered into plus any premiums and interest paid to the third party. In contrast to the Fund's long positions, for which the risk of loss is typically limited to the amount invested, the potential loss on the Fund's short positions is unlimited.

The use of swap agreements and other derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities, commodities or currencies underlying those derivatives. Derivatives have economic leverage inherent in their terms that will magnify losses. There may be an imperfect correlation between the changes in market value of derivatives and the underlying asset upon which they are based. Purchased options may expire worthless. Derivative counterparties may default. There may not always be a liquid secondary market for derivative contracts.

The recent instability in financial markets has led the government to take a number of unprecedented actions designed to support certain financial institutions and segments of the financial markets that are exposed to extreme volatility and in some cases lack of liquidity. There can be no assurance that future regulatory actions authorized by the Dodd-Frank Act will not adversely impact the Fund. Major changes resulting from the Dodd-Frank Act or other legislative or regulatory actions could materially affect the profitability of the Fund or the value of investments made by the Fund or force the Fund to revise its investment strategy or divest certain of its investments.

The cost of investing in the Fund may be higher than the cost of other mutual funds that invest directly in futures, forwards or other derivative instruments. In addition to the Fund’s direct fees and expenses, you will indirectly bear fees and expenses paid by any hedging program in which the Fund invests (such as the Quest Hedging Program), including brokerage commissions and operating expenses. Further, any investment in a hedging program will be subject to management fees and, potentially, performance-based fees, which are typically based on the leveraged account size or the “notional exposure” of the Fund to the hedging program and not the actual cash invested.

The use of leverage by the Fund (or hedging program in which the Fund may invest such as the Quest Hedging Program) will cause the value of the Fund’s shares to be more volatile than if the Fund did not employ leverage.  There is a risk that issuers and counter parties will not make payments on investments held by the Fund, resulting in losses to the Fund.  Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund’s investments.  In general, the price of a fixed income security falls when interest rates rise.

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

A higher Fund turnover will result in higher transactional and brokerage costs.  Certain of the derivative instruments, including swap agreements, in which the Fund may invest may be traded (and privately negotiated) in the “over-the-counter” or “OTC” market. While the OTC derivatives market is the primary trading venue for many derivatives, it is largely unregulated.

ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This and other important information about the funds are contained in the applicable Prospectuses, which can be obtained by calling 1.888.643.3431. The Prospectuses should be read carefully before investing.


The Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. Equinox Group Distributors, LLC, Equinox Institutional Asset Management, LP and featured Commodity Trading Advisors are not affiliated with Northern Lights Distributors, LLC.

Equinox Institutional Asset Management, LP serves as the Fund’s investment advisor.  SECURITIES OFFERED THROUGH EQUINOX GROUP DISTRIBUTORS, LLC, MEMBER FINRA. To obtain more information, contact Equinox Funds at 1.877.837.0600. info@equinoxfunds.com.

The material provided on this website is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security or service in any jurisdiction where such transaction would be unauthorized or unlawful.

5705-NLD-11/11/2015
EHUS884

Fund Performance

As of Jun 23, 2017 As of Mar 31, 2017
Fund Name 1 month ytd quarter 1 year 3 years 1 5 years 1 since
inception 1
Equinox EquityHedge US Strategy Fund
Class A, without load (inception: Sep 9, 2013)
1.45% 7.27% 4.09% 9.32% 7.16% 8.25%
Equinox EquityHedge US Strategy Fund
Class A, max load (inception: Sep 9, 2013)
-4.38% 1.06% -1.93% 3.01% 5.06% 6.46%
As of Jun 23, 2017 As of Mar 31, 2017
Fund Name 1 month ytd quarter 1 year 3 years 1 5 years 1 since
inception 1
Equinox EquityHedge US Strategy Fund
Class C (inception: Sep 9, 2013)
1.40% 6.84% 3.89% 8.57% 6.39% 7.39%
As of Jun 23, 2017 As of Mar 31, 2017
Fund Name 1 month ytd quarter 1 year 3 years 1 5 years 1 since
inception 1
Equinox EquityHedge US Strategy Fund
Class I (inception: Sep 9, 2013)
1.54% 7.32% 4.07% 9.53% 7.42% 8.50%

1Annualized, unless the Fund has less than a year of performance where the numbers shown are cumulative total return.

The maximum sales charge (load) for class A is 5.75%. Class A Share investors may be eligible for a reduction in sales charges.

SEE PERFORMANCE AND EXPENSE DISCLOSURES BELOW.

Performance and risk versus benchmarks — as of May 31, 2017

Fund/index 1 month ytd 2014 2015 2016 Cumulative Return Annualized ROR Maximum Drawdown standard deviation Correlation
Vs. Indices
Equinox EquityHedge US Strategy Fund
Class A, without load
1.36% 6.65% 5.56% -2.00% 11.88% 35.83% 8.57% -8.50% 9.60% 1.00
Hedged Equities 1
-0.57% 2.85% 1.42% -2.33% 0.10% 7.69% 2.01% -10.82% 5.15% 0.64
Equities 2
1.41% 8.66% 13.69% 1.38% 11.96% 56.05% 12.69% -8.36% 10.14% 0.81
Small Cap Equities 3
-2.03% 1.48% 4.89% -4.41% 21.31% 37.92% 9.02% -16.78% 14.67% 0.67

Performance and risk versus benchmarks — as of May 31, 2017

Fund/index 1 month ytd 2014 2015 2016 Cumulative Return Annualized ROR Maximum Drawdown standard deviation Correlation
Vs. Indices
Equinox EquityHedge US Strategy Fund
Class C
1.41% 6.32% 4.57% -2.73% 11.13% 31.87% 7.71% -8.92% 9.60% 1.00
Hedged Equities 1
-0.57% 2.85% 1.42% -2.33% 0.10% 7.69% 2.01% -10.82% 5.15% 0.64
Equities 2
1.41% 8.66% 13.69% 1.38% 11.96% 56.05% 12.69% -8.36% 10.14% 0.81
Small Cap Equities 3
-2.03% 1.48% 4.89% -4.41% 21.31% 37.92% 9.02% -16.78% 14.67% 0.67

Performance and risk versus benchmarks — as of May 31, 2017

Fund/index 1 month ytd 2014 2015 2016 Cumulative Return Annualized ROR Maximum Drawdown standard deviation Correlation
Vs. Indices
Equinox EquityHedge US Strategy Fund
Class I
1.45% 6.71% 5.84% -1.69% 12.19% 37.05% 8.83% -8.37% 9.63% 1.00
Hedged Equities 1
-0.57% 2.85% 1.42% -2.33% 0.10% 7.69% 2.01% -10.82% 5.15% 0.64
Equities 2
1.41% 8.66% 13.69% 1.38% 11.96% 56.05% 12.69% -8.36% 10.14% 0.81
Small Cap Equities 3
-2.03% 1.48% 4.89% -4.41% 21.31% 37.92% 9.02% -16.78% 14.67% 0.67

1HFRX Equity Hedge Index
2S&P 500® Total Return Index
3Russell 2000 Index

†ROR is Rate of Return.  Please refer to glossary for definitions of drawdown, standard deviation and correlation.

SEE PERFORMANCE AND EXPENSE DISCLOSURES BELOW.

Investors are not able to invest directly in the indices referenced in this illustration and unmanaged index returns do not reflect any fees, expenses or sales charges. The referenced indices are shown for general market comparisons and are not meant to represent the Fund.   

Performance of a hypothetical $10,000 investment — Sep 2013 to May 2017

Equinox EquityHedge US Strategy Fund - Class A ($13,583 as of May 2017)
HFRX Equity Hedge Index ($10,650 as of May 2017)

Performance of a hypothetical $10,000 investment — Sep 2013 to May 2017

Equinox EquityHedge US Strategy Fund - Class C ($13,187 as of May 2017)
HFRX Equity Hedge Index ($10,650 as of May 2017)

Performance of a hypothetical $10,000 investment — Sep 2013 to May 2017

Equinox EquityHedge US Strategy Fund - Class I ($13,705 as of May 2017)
HFRX Equity Hedge Index ($10,650 as of May 2017)

SEE PEFORMANCE AND EXPENSE DISCLOSURES BELOW.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS.

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. The Fund’s investment adviser has contractually agreed to reduce its advisory fee and/or reimburse certain expenses of the Fund until October 31, 2016, to ensure that the Fund’s total annual operating expenses, excluding (i) taxes, (ii) interest, (iii) extraordinary items, (iv) “Acquired Fund” fees and expenses, and (v) brokerage commissions, do not exceed, on an annual basis, 1.20%, 1.45% and 2.20% of the Fund’s average daily net assets for Class I, Class A and Class C shares, respectively (the “Expense Limitation”). This is subject to possible recoupment from the Fund in future years. Please review the Fund’s Prospectus for more detail on the expense waiver. Results shown reflect the waiver, without which the results could have been lower. A Fund's performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. For performance information current to the most recent month end, please call toll-free 1-888-643-3431.

Gross/Net expense Ratio: Class A (EEHAX): 3.54% / 1.45%; Class C (EEHCX): 4.29% / 2.20%; Class I (EEHIX): 3.29% / 1.20%

FUND RISKS

Equinox’s judgments about the attractiveness, value and potential positive or negative performance of, the Quest Hedging Program (or any other similar hedging strategy) or any particular equity index or derivative in which the Fund invests may prove to be inaccurate and may not produce the desired results. The profitability of the Fund’s investment (typically through a swap agreement) in the Quest Hedging Program depends primarily on the ability of Quest Partners, LLC to anticipate price movements in the relevant markets and underlying derivative instruments and futures contracts. Such price movements are influenced by many factors. The Quest Hedging Program may not take all of the relevant factors into account. In addition, the Fund will indirectly bear the expenses, including management fees, and transaction fees, associated with the Quest Hedging Program through reduced returns.

Because the Fund will invest a substantial portion of its assets in futures, options or swaps that provide exposure to broad based equity indices and/or in exchange traded funds or other investments that seek to track the performance of selected equity indices, the value of the Fund’s portfolio will be affected by changes in the stock markets. At times, the stock markets can be volatile, and stock prices can change drastically. Market risk will affect the Fund’s net asset value, which will fluctuate as the values of the Fund’s portfolio’s assets change.

Equity indices are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Investor perceptions are based on various and unpredictable factors, including expectations regarding government, economic, monetary and fiscal policies; inflation and interest rates; economic expansion or contraction and global or regional political, economic and banking crises.

The Fund either directly or through a hedging program such as the Quest Hedging Program will take short positions on certain derivative instruments and may sell certain securities short. If the price of a derivative has increased during this time, then the Fund will incur a loss equal to the increase in price from the time that the short sale was entered into plus any premiums and interest paid to the third party. In contrast to the Fund's long positions, for which the risk of loss is typically limited to the amount invested, the potential loss on the Fund's short positions is unlimited.

The use of swap agreements and other derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities, commodities or currencies underlying those derivatives. Derivatives have economic leverage inherent in their terms that will magnify losses. There may be an imperfect correlation between the changes in market value of derivatives and the underlying asset upon which they are based. Purchased options may expire worthless. Derivative counterparties may default. There may not always be a liquid secondary market for derivative contracts.

The recent instability in financial markets has led the government to take a number of unprecedented actions designed to support certain financial institutions and segments of the financial markets that are exposed to extreme volatility and in some cases lack of liquidity. There can be no assurance that future regulatory actions authorized by the Dodd-Frank Act will not adversely impact the Fund. Major changes resulting from the Dodd-Frank Act or other legislative or regulatory actions could materially affect the profitability of the Fund or the value of investments made by the Fund or force the Fund to revise its investment strategy or divest certain of its investments.

The cost of investing in the Fund may be higher than the cost of other mutual funds that invest directly in futures, forwards or other derivative instruments. In addition to the Fund’s direct fees and expenses, you will indirectly bear fees and expenses paid by any hedging program in which the Fund invests (such as the Quest Hedging Program), including brokerage commissions and operating expenses. Further, any investment in a hedging program will be subject to management fees and, potentially, performance-based fees, which are typically based on the leveraged account size or the “notional exposure” of the Fund to the hedging program and not the actual cash invested.

The use of leverage by the Fund (or hedging program in which the Fund may invest such as the Quest Hedging Program) will cause the value of the Fund’s shares to be more volatile than if the Fund did not employ leverage.  There is a risk that issuers and counter parties will not make payments on investments held by the Fund, resulting in losses to the Fund.  Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund’s investments.  In general, the price of a fixed income security falls when interest rates rise.

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

A higher Fund turnover will result in higher transactional and brokerage costs.  Certain of the derivative instruments, including swap agreements, in which the Fund may invest may be traded (and privately negotiated) in the “over-the-counter” or “OTC” market. While the OTC derivatives market is the primary trading venue for many derivatives, it is largely unregulated.

ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This and other important information about the funds are contained in the applicable Prospectuses, which can be obtained by calling 1-888-643-3431. The Prospectuses should be read carefully before investing.


The Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. Equinox Group Distributors, LLC, Equinox Institutional Asset Management, LP and featured Commodity Trading Advisors are not affiliated with Northern Lights Distributors, LLC.

Equinox Institutional Asset Management, LP serves as the Fund’s investment advisor.  SECURITIES OFFERED THROUGH EQUINOX GROUP DISTRIBUTORS, LLC, MEMBER FINRA. To obtain more information, contact Equinox Funds at 1-877-837-0600. info@equinoxfunds.com.

The material provided on this website is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security or service in any jurisdiction where such transaction would be unauthorized or unlawful.

5306-NLD-4/24/2017  |  EIAM878

Equinox Investment Philosophy and Process

At Equinox Funds, we believe that alternative and traditional investment portfolios built around rigorous diversification and dynamic risk management can add long-term value to an investment strategy. With this philosophy in mind, the Equinox portfolio management team employs the following six-step investment process:

Equinox Investment Process Overview

Step 1 SCREEN
After determining a Fund or Program’s goals and objectives, the Portfolio Team screens the manager universe for suitable candidates.
Step 2 ANALYZE
During this stage, the Portfolio Team seeks to rigorously evaluate historical performance and portfolio attributes as they relate to performance, volatility and strategy discipline.
Step 3 SELECT
The next step involves performing exhaustive due diligence on organization, personnel, investment process and operations.
Step 4 CONSTRUCT
At this stage of the process the anticipated portfolio is stressed using simulation tools for optimal return, risk, correlation and drawdown metrics.
Step 5 MANAGE
Once the initial candidates are identified, the Portfolio Team continually rebuilds the universe of managers and retests the portfolio dynamics.
Step 6 REBALANCE
Continuous monitoring of existing managers’ trading and performance seeks to detect style drift or other potential issues and rebalancing occurs as necessary.

Throughout the process, our goal is to provide investors with high-quality alternative investment portfolios that — when added to an asset allocation strategy — can potentially reduce risk and enhance returns over time.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS. YOU CAN LOSE MONEY IN A MANAGED FUTURES PROGRAM.

*For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds’ monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics.

Fund ratings are only one form of performance measurement. For the most current performance please refer to the ‘Performance’ tab.

FUND RISKS

Equinox’s judgments about the attractiveness, value and potential positive or negative performance of, the Quest Hedging Program (or any other similar hedging strategy) or any particular equity index or derivative in which the Fund invests may prove to be inaccurate and may not produce the desired results. The profitability of the Fund’s investment (typically through a swap agreement) in the Quest Hedging Program depends primarily on the ability of Quest Partners, LLC to anticipate price movements in the relevant markets and underlying derivative instruments and futures contracts. Such price movements are influenced by many factors. The Quest Hedging Program may not take all of the relevant factors into account. In addition, the Fund will indirectly bear the expenses, including management fees, and transaction fees, associated with the Quest Hedging Program through reduced returns.

Because the Fund will invest a substantial portion of its assets in futures, options or swaps that provide exposure to broad based equity indices and/or in exchange traded funds or other investments that seek to track the performance of selected equity indices, the value of the Fund’s portfolio will be affected by changes in the stock markets. At times, the stock markets can be volatile, and stock prices can change drastically. Market risk will affect the Fund’s net asset value, which will fluctuate as the values of the Fund’s portfolio’s assets change.

Equity indices are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Investor perceptions are based on various and unpredictable factors, including expectations regarding government, economic, monetary and fiscal policies; inflation and interest rates; economic expansion or contraction and global or regional political, economic and banking crises.

The Fund either directly or through a hedging program such as the Quest Hedging Program will take short positions on certain derivative instruments and may sell certain securities short. If the price of a derivative has increased during this time, then the Fund will incur a loss equal to the increase in price from the time that the short sale was entered into plus any premiums and interest paid to the third party. In contrast to the Fund's long positions, for which the risk of loss is typically limited to the amount invested, the potential loss on the Fund's short positions is unlimited.

The use of swap agreements and other derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities, commodities or currencies underlying those derivatives. Derivatives have economic leverage inherent in their terms that will magnify losses. There may be an imperfect correlation between the changes in market value of derivatives and the underlying asset upon which they are based. Purchased options may expire worthless. Derivative counterparties may default. There may not always be a liquid secondary market for derivative contracts.

The recent instability in financial markets has led the government to take a number of unprecedented actions designed to support certain financial institutions and segments of the financial markets that are exposed to extreme volatility and in some cases lack of liquidity. There can be no assurance that future regulatory actions authorized by the Dodd-Frank Act will not adversely impact the Fund. Major changes resulting from the Dodd-Frank Act or other legislative or regulatory actions could materially affect the profitability of the Fund or the value of investments made by the Fund or force the Fund to revise its investment strategy or divest certain of its investments.

The cost of investing in the Fund may be higher than the cost of other mutual funds that invest directly in futures, forwards or other derivative instruments. In addition to the Fund’s direct fees and expenses, you will indirectly bear fees and expenses paid by any hedging program in which the Fund invests (such as the Quest Hedging Program), including brokerage commissions and operating expenses. Further, any investment in a hedging program will be subject to management fees and, potentially, performance-based fees, which are typically based on the leveraged account size or the “notional exposure” of the Fund to the hedging program and not the actual cash invested.

The use of leverage by the Fund (or hedging program in which the Fund may invest such as the Quest Hedging Program) will cause the value of the Fund’s shares to be more volatile than if the Fund did not employ leverage.  There is a risk that issuers and counter parties will not make payments on investments held by the Fund, resulting in losses to the Fund.  Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund’s investments.  In general, the price of a fixed income security falls when interest rates rise.

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

A higher Fund turnover will result in higher transactional and brokerage costs.  Certain of the derivative instruments, including swap agreements, in which the Fund may invest may be traded (and privately negotiated) in the “over-the-counter” or “OTC” market. While the OTC derivatives market is the primary trading venue for many derivatives, it is largely unregulated.

ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This and other important information about the funds are contained in the applicable Prospectuses, which can be obtained by calling 1.888.643.3431. The Prospectuses should be read carefully before investing.


The Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. Equinox Group Distributors, LLC, Equinox Institutional Asset Management, LP and featured Commodity Trading Advisors are not affiliated with Northern Lights Distributors, LLC.

Equinox Institutional Asset Management, LP serves as the Fund’s investment advisor.  SECURITIES OFFERED THROUGH EQUINOX GROUP DISTRIBUTORS, LLC, MEMBER FINRA. To obtain more information, contact Equinox Funds at 1.877.837.0600. info@equinoxfunds.com.

The material provided on this website is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security or service in any jurisdiction where such transaction would be unauthorized or unlawful.

5306-NLD-4/24/2017  |  EIAM878

Portfolio Management Team

 

Dr. Ajay Dravid

Chief Investment Officer, Equinox Institutional Asset Management, LP

As Chief Investment Officer of Equinox Institutional Asset Management, Dr. Dravid is involved in day-to-day portfolio and risk management for all of Equinox Funds' offerings.  In addition, Dr. Dravid is involved in the development and the structuring of new products... | MORE

Dr. Rufus Rankin

Director of Research, Equinox Institutional Asset Management, LP

Dr. Rankin is the Director of Research of Equinox Institutional Asset Management.  In addition, Dr. Rankin also assists with the conception, development and implementation of new products... | MORE

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS. YOU CAN LOSE MONEY IN A MANAGED FUTURES PROGRAM.

*For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds’ monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics.

Fund ratings are only one form of performance measurement. For the most current performance please refer to the ‘Performance’ tab.

FUND RISKS

Equinox’s judgments about the attractiveness, value and potential positive or negative performance of, the Quest Hedging Program (or any other similar hedging strategy) or any particular equity index or derivative in which the Fund invests may prove to be inaccurate and may not produce the desired results. The profitability of the Fund’s investment (typically through a swap agreement) in the Quest Hedging Program depends primarily on the ability of Quest Partners, LLC to anticipate price movements in the relevant markets and underlying derivative instruments and futures contracts. Such price movements are influenced by many factors. The Quest Hedging Program may not take all of the relevant factors into account. In addition, the Fund will indirectly bear the expenses, including management fees, and transaction fees, associated with the Quest Hedging Program through reduced returns.

Because the Fund will invest a substantial portion of its assets in futures, options or swaps that provide exposure to broad based equity indices and/or in exchange traded funds or other investments that seek to track the performance of selected equity indices, the value of the Fund’s portfolio will be affected by changes in the stock markets. At times, the stock markets can be volatile, and stock prices can change drastically. Market risk will affect the Fund’s net asset value, which will fluctuate as the values of the Fund’s portfolio’s assets change.

Equity indices are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Investor perceptions are based on various and unpredictable factors, including expectations regarding government, economic, monetary and fiscal policies; inflation and interest rates; economic expansion or contraction and global or regional political, economic and banking crises.

The Fund either directly or through a hedging program such as the Quest Hedging Program will take short positions on certain derivative instruments and may sell certain securities short. If the price of a derivative has increased during this time, then the Fund will incur a loss equal to the increase in price from the time that the short sale was entered into plus any premiums and interest paid to the third party. In contrast to the Fund's long positions, for which the risk of loss is typically limited to the amount invested, the potential loss on the Fund's short positions is unlimited.

The use of swap agreements and other derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities, commodities or currencies underlying those derivatives. Derivatives have economic leverage inherent in their terms that will magnify losses. There may be an imperfect correlation between the changes in market value of derivatives and the underlying asset upon which they are based. Purchased options may expire worthless. Derivative counterparties may default. There may not always be a liquid secondary market for derivative contracts.

The recent instability in financial markets has led the government to take a number of unprecedented actions designed to support certain financial institutions and segments of the financial markets that are exposed to extreme volatility and in some cases lack of liquidity. There can be no assurance that future regulatory actions authorized by the Dodd-Frank Act will not adversely impact the Fund. Major changes resulting from the Dodd-Frank Act or other legislative or regulatory actions could materially affect the profitability of the Fund or the value of investments made by the Fund or force the Fund to revise its investment strategy or divest certain of its investments.

The cost of investing in the Fund may be higher than the cost of other mutual funds that invest directly in futures, forwards or other derivative instruments. In addition to the Fund’s direct fees and expenses, you will indirectly bear fees and expenses paid by any hedging program in which the Fund invests (such as the Quest Hedging Program), including brokerage commissions and operating expenses. Further, any investment in a hedging program will be subject to management fees and, potentially, performance-based fees, which are typically based on the leveraged account size or the “notional exposure” of the Fund to the hedging program and not the actual cash invested.

The use of leverage by the Fund (or hedging program in which the Fund may invest such as the Quest Hedging Program) will cause the value of the Fund’s shares to be more volatile than if the Fund did not employ leverage.  There is a risk that issuers and counter parties will not make payments on investments held by the Fund, resulting in losses to the Fund.  Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund’s investments.  In general, the price of a fixed income security falls when interest rates rise.

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

A higher Fund turnover will result in higher transactional and brokerage costs.  Certain of the derivative instruments, including swap agreements, in which the Fund may invest may be traded (and privately negotiated) in the “over-the-counter” or “OTC” market. While the OTC derivatives market is the primary trading venue for many derivatives, it is largely unregulated.

ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This and other important information about the funds are contained in the applicable Prospectuses, which can be obtained by calling 1.888.643.3431. The Prospectuses should be read carefully before investing.


The Fund is distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. Equinox Group Distributors, LLC, Equinox Institutional Asset Management, LP and featured Commodity Trading Advisors are not affiliated with Northern Lights Distributors, LLC.

Equinox Institutional Asset Management, LP serves as the Fund’s investment advisor.  SECURITIES OFFERED THROUGH EQUINOX GROUP DISTRIBUTORS, LLC, MEMBER FINRA. To obtain more information, contact Equinox Funds at 1.877.837.0600. info@equinoxfunds.com.

The material provided on this website is for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security or service in any jurisdiction where such transaction would be unauthorized or unlawful.

5306-NLD-4/24/2017  |  EIAM878