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Sierra Tactical Risk Spectrum 30 Fund
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Sierra
Tactical Risk Spectrum 30 Fund - FUND SUMMARY
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Investment
Objectives:
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The Funds two investment objectives are to provide total return (the combination of yield and net price gains from
the underlying funds) and to limit volatility and downside risk.
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Fees
and Expenses of the Fund:
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This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and
examples below. You may qualify for sales charge discounts on purchases of Class A shares if you and your family invest, or agree to
invest in the future, at least $50,000 in the Fund. More information about these and other discounts is available from your financial
intermediary and in How to Purchase Shares on page 12 of the Funds Prospectus.
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Shareholder Fees (fees paid directly from your investment)
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Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
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Example:
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This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.
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The
Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those
periods. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain
the same. The Example assumes the impact of the fee waiver in 1 Year example. Although your actual costs may be higher or lower, based
upon these assumptions your costs would be:
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Portfolio
Turnover:
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The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over
its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are
held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Funds
performance.
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Principal
Investment Strategies:
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The Sierra Tactical Risk Spectrum 30 Fund (the Fund) is a fund of funds. Wright
Fund Management, LLC (the Adviser) seeks to achieve the Funds investment objective by investing in a combination
of unaffiliated mutual funds and exchange traded funds (ETFs), (together, Underlying Funds).
Among
the types of underlying instruments in which this Fund will invest, through Underlying Funds, are the following:
| ● | Foreign
common stocks, including from emerging markets |
| ● | U.S.
fixed income securities |
| ● | Foreign
fixed income securities, including from emerging markets |
| ● | High
yield (or junk) corporate bonds |
| ● | Physical
commodities, such as crude oil, copper and wheat, through mutual funds and ETFs that invest
in commodity-linked derivatives |
Under
normal market conditions, the Funds target exposure over a three-year period to equity securities, of any market capitalization,
through the Underlying Funds will average between 15%-30% of the Funds assets. The Fund does not have a target allocation for
non-equity securities exposure and may invest in underlying fixed income funds without constraint as to maturity or credit quality. The
Adviser may make changes in the target allocations across asset classes and fund categories, and the specific Underlying Funds in the
Funds portfolio that in its view would be in the best interest of the Fund. The Fund considers high-yield corporate bonds (junk
bonds) to be those that are rated lower than Baa3 by Moodys Investors Service (Moodys) or lower than
BBB- by Standard and Poors Rating Group (S&P).
The
Adviser constructs the Funds portfolio by quantitatively analyzing all Underlying Funds to identify those that exhibit the most
attractive trends and have been given a buy signal under the Advisers proprietary investment process.
The
Adviser does not employ a passive buy and hold, strategy. As part of its integrated risk-management disciplines, the Adviser
monitors each Fund holding daily and applies a trailing stop discipline (a form of sell signal) to each Underlying Fund within the Funds
portfolio, based on the proprietary approach (Sell Disciplines) that the Adviser has used with their separately managed
accounts, in order to limit the impact on the overall Fund portfolio of any sustained decline in a given asset class or Underlying Fund.
A trailing stop loss is a type of stop loss calculation that rises each day as the price of the underlying security rises,
and thus trails the price movement. Thus, whenever an Underlying Fund declines substantially, as defined
by the Advisers proprietary studies of the historic behavior of the asset class represented by the Underlying Fund, the Adviser
either sells the Underlying Fund or hedges by purchasing an inverse Underlying Fund.
The
Sell Disciplines are not designed to attempt to buy at lows or to sell at highs, but to participate in a substantial part of any sustained
uptrend in a selected asset class, as well as to step aside during most of any sustained downtrend. The Adviser employs a reactive
approach, meaning it reacts with discipline to actual reversals in price trends, as distinct from a predictive approach
to market movements. The Adviser does not consider its approach to be a trading style in terms of frequency, and does not
expect to average more than two sell signals per year in each Underlying Fund.
The
Adviser may engage in frequent buying and selling of portfolio securities to achieve the Funds investment objectives.
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Principal
Investment Risks:
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As with all mutual funds, there is the risk that you could lose money through your investment in the Fund. The Fund
is not intended to be a complete investment program. Many factors affect the Funds net asset value and performance.
Performance
of the Fund during future periods will definitely vary. Some months and some quarters will result in negative performance; indeed, some
future years may have negative performance.
| ● | Commodity-Linked
Derivative Risk. When the Fund invests in commodities through Underlying Funds that invest
in commodity-linked derivative instruments the Fund is exposed to risks affecting a particular
industry or commodity, such as drought, floods, and adverse regulatory developments. Commodity-linked
derivatives may also have leverage risk, which amplifies the effect of a small movement in
commodity prices on the Fund. |
| ● | Emerging
Markets Risk. Underlying Funds may invest in emerging market countries. Investing in
emerging markets involves not only the risks described below with respect to investing in
foreign securities, but also other risks, including exposure to economic structures that
are generally less diverse and mature, limited availability and reliability of information
material to an investment decision, and exposure to political systems that can be expected
to have less stability than those of developed countries. The market for the securities of
issuers in emerging market typically is small, and a low or nonexistent trading volume in
those securities may result in a lack of liquidity and price volatility. |
| ● | Equity
Risk. The net asset value of the Fund will fluctuate based on changes in the value of
the equity securities held by those Underlying Funds that invest in U.S. and/or foreign stocks.
Equity prices can fall rapidly in response to developments affecting a specific company or
industry, or to changing economic, political or market conditions. |
| ● | Fixed-Income
Risk. When the Fund invests in Underlying Funds that invest in fixed-income securities,
the value of your investment in the Fund will generally decline when interest rates rise.
Defaults by fixed income issuers in which the Underlying Funds invest may also harm performance. |
| ● | Foreign
Risk. Foreign markets can be more volatile than the U.S. market due to increased risks
of adverse issuer, political, regulatory, market, economic developments or currency exchange
rates and can perform differently from the U.S. market. The net asset value of the Fund will
fluctuate based on changes in the value of the foreign securities held by any Underlying
Funds that invest in such securities. |
| ● | Government
Securities Risk. It is possible that the U.S. Government would not provide financial
support to its agencies or instrumentalities if it is not required to do so by law. The ability
of foreign governments to repay their obligations is adversely impacted by default, insolvency,
bankruptcy or by political instability, including authoritarian and/or military involvement
in governmental decision-making, armed conflict, civil war, social instability and the impact
of these events and circumstances on a countrys economy and its governments
revenues. |
| ● | High
Yield (Junk Bond) Risk. Underlying Fund investments in lower-quality bonds, known as
high-yield or junk bonds, present greater risk than bonds of higher quality, including an
increased risk of default. An economic downturn or period of rising interest rates could
adversely affect the market for these bonds and reduce liquidity in these bonds. Junk bonds
are considered speculative and issuers are more sensitive to economic conditions than high
quality issuers and more likely to seek bankruptcy protection which, will delay resolution
of bondholder claims and may eliminate liquidity. |
| ● | Inverse
Risk. The Fund engages in hedging or declining-market strategies by investing in inverse
Underlying Funds. Any strategy that includes inverse securities could cause the Fund to suffer
significant losses. The Fund will not participate in market gains to the extent it holds
inverse Underlying Funds. |
| ● | Limited
History of Operations Risk. The Fund is a new mutual fund and has a limited history of
operations for investors to evaluate. |
| ● | Management
Risk. The Advisers dependence on its investment strategy and judgments about the
attractiveness, value and potential appreciation of particular asset classes in which the
Fund invests will in some cases prove to be incorrect and have negative impacts on performance. |
| ● | Market
and Geopolitical Risk. The increasing interconnectivity between global economies and
financial markets increases the likelihood that events or conditions in one region or financial
market may adversely impact issuers in a different country, region or financial market. Securities
in the Fund may underperform due to inflation
(or expectations for inflation), interest rates, global demand for particular products or
resources, natural disasters, pandemics, epidemics, climate change or climate change related
events, terrorism, regulatory events and governmental or quasi-governmental actions. The
occurrence of global events similar to those in recent years, such as terrorist attacks around
the world, natural disasters, social and political discord or debt crises and downgrades,
among others, may result in market volatility and may have long term effects on both the
U.S. and global financial markets. It is difficult to predict when similar events affecting
the U.S. or global financial markets may occur, the effects that such events may have and
the duration of those effects. Any such event(s) could have a significant adverse impact
on the value and risk profile of the Fund. The current novel coronavirus (COVID-19) global
pandemic and the aggressive responses taken by many governments, including closing borders,
restricting international and domestic travel, and the imposition of prolonged quarantines
or similar restrictions, as well as the forced or voluntary closure of, or operational changes
to, many retail and other businesses, has had negative impacts, and in many cases severe
negative impacts, on markets worldwide. It is not known how long such impacts, or any future
impacts of other significant events described above, will or would last, but there could
be a prolonged period of global economic slowdown, which may impact your investment. Therefore,
the Fund could lose money over short periods due to short-term market movements and over
longer periods during more prolonged market downturns. During a general market downturn,
multiple asset classes may be negatively affected. Changes in market conditions and interest
rates can have the same impact on all types of securities and instruments. In times of severe
market disruptions you could lose your entire investment. |
| ● | Municipal
Risk. Municipal securities are subject to the risk that legislative changes and local
and business developments may adversely affect the yield or value of the Funds investments
in such securities. |
| ● | Portfolio
Turnover Risk. As to the portion of the portfolio invested in Underlying Funds, turnover
may result in higher brokerage commissions, dealer mark-ups and other transaction costs.
The Funds investment style will result in most capital gains within the portfolio
being realized as short-term capital gains. |
| ● | Preferred
Stock Risk. The value of preferred stocks will fluctuate with changes in interest rates.
Typically, a rise in interest rates causes a decline in the value of preferred stock. Preferred
stocks are also subject to credit risk, which is the possibility that an issuer of preferred
stock will fail to make its dividend payments. |
| ● | Small
and Mid-Capitalization Issuer Risk. Investments in Underlying Funds that own securities
of small- and mid-capitalization companies may be more vulnerable than larger, more established
organizations to adverse business or economic developments. These companies often have narrower
markets, fewer products, or services to offer and more limited managerial and financial resources
than do larger, more established companies. |
| ● | Underlying
Fund Risk. Each Underlying Fund is subject to specific risks, depending on its investments.
Underlying Funds are also subject to investment advisory fees and other expenses, which are
indirectly borne by the Fund. As a result, your overall cost of investing in the underlying
stocks, bonds and other basic assets will be higher than the cost of investing directly in
them, and may be higher than other mutual funds that invest directly in stocks and bonds. |
| ● | COVID-19
Risk. An outbreak of infectious respiratory illness caused by the novel coronavirus known
as COVID-19 was first detected in China in December 2019 before spreading worldwide and being
declared a global pandemic by the World Health Organization in March 2020. COVID-19 has resulted
in travel restrictions, closed international borders, enhanced health screenings, disruption
and delays in healthcare services, prolonged quarantines, cancellations, temporary store
closures, social distancing, government ordered curfews and business closures, disruptions
to supply chains and consumer activity, shortages, highly volatile financial markets, and
general concern and uncertainty. |
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Performance:
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Because the Fund has less than a full calendar year of investment operations, no performance information is presented for the Fund
at this time. In the future, performance information will be presented in this section of the Prospectus. Also, shareholder reports containing
financial and performance information will be mailed to shareholders semi-annually. Updated performance information is available at no
cost by calling 1-866-738-4363 or visiting www.SierraMutualFunds.com.
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