for Investment Professionals

Innealta Capital Mutual Funds

Innealta Capital (Innealta) is a quantitative asset management firm specializing in the active management of mutual funds containing Exchange Traded Funds (ETFs).

By attempting to harness the benefits of ETFs, Innealta seeks to provide investors with exposure to multiple asset classes and investment styles.

Look here to learn how to invest in the Innealta Mutual Funds.

View our prospectus.

For more information on establishing a mutual fund with Innealta Capital, please contact us at 1-855-USE-ETFS.

 


Shares of The Innealta Capital Funds are currently offered only in the United States to U.S. investors and are not available for sale in any jurisdiction other than the United States. The information on this Web site should not be considered a solicitation to buy or an offer to sell shares of The Innealta Capital Funds in any jurisdiction where it would be unlawful under the securities law of that jurisdiction.

For more complete information about The Innealta Capital Funds, please follow this link to view the prospectus or call 888.994.6827 to have one mailed to you. Please read the Fund prospectus carefully before you invest.

Mutual Funds involve risk including the possible loss of principal.

There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses

Domestic economic growth and market conditions, interest rate levels, and political events are among the factors affecting the securities markets in which the Fund invests.  Investment in an exchange traded fund (ETF) carries security specific risk and the market risk.  If the area of the market representing the underlying index or benchmark does not perform as expected for any reason, the value of the investment in the ETF may decline.  When the Fund invests in ETFs that own fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates.  Typically, a rise in interest rates causes a decline in the value of fixed income securities and thus the value of ETFs that own fixed income securities.  The Fund invests in high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) which may be subject to greater levels of credit and liquidity risk than funds that do not invest in such securities. These securities are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments.

To the extent the Fund invests in foreign securities by investing in ETFs that hold foreign securities or by purchasing American Depository Receipts (“ADRs”) directly, the Fund may be subject to risks not usually associated with owning securities of U.S. issuers.  Investments in emerging markets instruments involve greater risks than investing in foreign instruments in general. Risks of investing in emerging market countries include political or social upheaval, nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets and risks from an economy’s dependence on revenues from particular commodities or industries.  To the extent the Fund invests in the stocks of small and medium capitalization companies or ETFs that invest in such companies, the Fund may be subject to additional risks that could include volatile earnings and higher failure rates than larger companies.  The Fund may invest in companies that appear to be growth oriented or ETFs that invest in such companies.  If the Advisor’s perceptions of a company’s growth potential are wrong, the securities purchased may not perform as expected, reducing the Fund’s return.

The Fund is a “fund of funds,” a term typically used to describe an investment company whose principal investment strategy involves investing in other investment companies, such as ETFs. The cost of investing in the Fund will generally be higher than the cost of investing directly in ETFs or other investment company shares.  Value investing is subject to the risk that a company’s intrinsic value may never be fully realized by the market or that a company judged by the Advisor to be undervalued may actually be appropriately priced.  The Fund may engage in short-term trading to try to achieve its objective and may have portfolio turnover rates significantly in excess of 100%. Increased portfolio turnover may cause the Fund to incur higher brokerage costs, which may adversely affect the Fund’s performance, and may produce increased taxable distributions.  The risks associated with the Fund include interest rate risk, which means that the prices of the Fund’s investments are likely to fall if interest rates rise.

The Capital Country Rotation Fund invests in foreign companies which can involve certain risks not generally associated with investments in the securities of U.S. companies, including changes in currency exchange rates, unstable political, social and economic conditions, a lack of adequate or accurate company information, differences in the way securities markets operate, less secure international banks or securities depositories than those in the U.S. and foreign controls on investment.  The Capital Sector Rotation Fund may be overweight in certain sectors at various times.  Sector risk is the possibility that all stocks within the same group of industries will decline in price due to sector-specific market or economic developments.

Diversification does not assure a profit or protect against loss in a declining market.

The Innealta Capital Funds are distributed by Northern Lights Distributors, LLC, member FINRA.

0714-NLD-2/25/2014

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