Navigator® Duration Neutral Bond Fund

Navigate Interest Rate Risk with a
Duration Neutral Approach

With yields hovering at historic lows, cash equivalents do not provide attractive inflation-adjusted returns. But low-risk, short-term investments are a critical component of many investors' financial needs.

Clark Capital believes investors may benefit from an absolute return approach, that hedges away interest risk while actively seeking to provide income and stability.

Maximize Potential Absolute Return

Goal: Take advantage of opportunities in the municipal markets using a value-oriented approach.

The research process is focused on a quantitative model that measures the relative value of a particular municipal bond versus other issues with similar characteristics. This process leads us to invest in deeply undervalued issues in an effort to exploit supply and demand inefficiencies and credit spread trends between credit qualities.

Hedge Interest Rate Risk

Goal: Create a portfolio that is durable and not sensitive to interest rate risk.

The strategy is managed with an interest rate neutral, opportunistic, value approach. A thorough risk analysis of each security and the overall portfolio in aggregate is performed in an effort to maintain the optimal hedged versus long bond allocation.

Generate Income And Capital Appreciation

Goal: Provide low volatility fixed income exposure that pursues positive performance.

The Fund's investment philosophy holds that it is not possible to systematically predict interest rate direction. For that reason, the portfolio holds a consistent allocation to the hedge strategy while identifying and investing in income generating vehicles.


Share Class Ticker Cusip
A share NDNAX 66538B875
I share NDNIX 66538B859
C share NDNCX 66538B867

Fund Information

Clark Capital Management Group, Inc.

Inception Date: 9/23/2013

Total Annual Fund Operating Expenses:

A shares I Shares C Share
1.63% 1.38% 2.38%

Minimum Investment Amount:

A shares I Shares C Share
$5,000 $25,000 $5,000

Annual Trail Commission

A shares
(3.75% Load)
I Shares C Share
0.25% None 1.00%

Transfer Agent: Gemini Fund Services LLC.

Distributor: Northern Lights Distributors LLC.

Custodian: BNY Mellon

Registered in all 50 States and DC & PR.

NSCC Participant Number: 5394
(Levels 0-4)


Important Risk Information

An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The Fund invests primarily in bond instruments such as municipal bonds and U.S. Treasury bonds and notes. The Fund(s) has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus. The principal risks of investing in the Navigator Duration Neutral Fund include: correlation risk, derivatives risk, fixed income risk, inflation-indexed securities risk, interest rate and bond maturities risk, issuer-specific risk, leverage/volatility risk, liquidity risk, management risk, municipal market risk, non-diversification risk, non-tax exempt risk, turnover risk, U.S. government securities risk. The Fund invests in exchange traded funds (ETFs), closed end funds and other mutual funds (“Underlying Funds”). Such Underlying Funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in the underlying funds and may be higher than other mutual funds that invest directly in stocks and bonds. Each of the Underlying Funds is subject to its own specific risks, but the sub-advisor expects the principal investments risks of such Underlying Funds will be similar to investing in the Fund.

Municipal bonds on one hand, and treasury bonds and LIBOR swaps or options or futures on treasury bonds on the other hand, may experience a lack of correlation. The Fund can be adversely affected by times where municipal interest rates rise and the Fund interest rate hedges decline in value. Even a small investment in derivatives (which include options, futures and swap contracts) may give rise to leverage risk and can have a significant impact on the Fund’s performance. Derivatives are also subject to credit risk and liquidity risk. When the Fund invests in fixed income securities, derivatives on fixed income securities, or underlying Funds that invest in fixed income securities, the value of the Fund will fluctuate with changes in interest rates. Defaults by fixed income issuers in which the Fund invests will also harm performance. Inflation-indexed securities, including Treasury Inflation-Protected Securities, decline in value when real interest rates rise. Interest rate changes may adversely affect the market value of an investment.

The Fund may employ leverage and may invest in leveraged instruments. Borrowing magnifies the potential for losses and exposes the Fund interest expenses on borrowing. Liquidity risk exists when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid Navigator® Duration Neutral Bond Fund securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices in order to satisfy its obligations. Special factors may negatively affect the value of municipal securities including political or legislative changes, uncertainties related to the tax status of the securities, or the rights of investors in the securities. The Fund is not intended to be a tax-exempt fund and may not be tax advantaged. A higher portfolio turnover may result in higher transactional and brokerage costs. Other mutual funds, ETFs and closed-end funds (“Underlying Funds”) in which the Fund invests are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in the Underlying Funds and may be higher than other mutual funds that invest directly in stocks and bonds. The Fund may invest in obligations issued by agencies and instrumentalities of the U.S. Government. The U.S. Government may choose not to provide financial support to U.S. Government sponsored agencies or instrumentalities if it is not legally obligated to do so, in which case, if the issuer defaulted, the Fund might not be able to recover its investment.

Standard Deviation: A statistical measure of performance fluctuations-generally the higher the standard deviation, the greater the expected volatility of returns. Standard deviation, a historical measure, cannot be used to predict fund performance.

Beta: Measures a fund's sensitivity to market movements by comparing a fund's excess return (over a benchmark) to the market's excess return. By definition, the beta of the market is 1.00. For example, a beta that is lower than 1.00 would normally indicate that a fund's excess return is expected to be above the market's excess return in a down year and below in an up year. However, beta is a measure of historical volatility and cannot predict a fund's actual performance.

Before investing, carefully consider the Fund's investment objectives, risks, charges and expenses. Contact 800.766.2264 for a prospectus containing this and other information. Read it carefully.

Clark Capital Management Group, Inc. and Northern Lights Distributors, LLC are not affiliated.

The benchmark for the Fund is the Barclays Municipal Bond Index. The Barclays Municipal Bond Index is a rules-based, market-value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be rated investment-grade (Baa3/BBB-or higher) by at least two of the following ratings agencies: Moody's, S&P, Fitch. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rate a security, the rating must be investment grade. They must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate, have a dated date after December 31, 1990, and must be at least one year from their maturity date. Remarketed issues, taxable municipal bonds, bonds with floating rates, and derivatives, are excluded from the benchmark. The index has four main sectors: general obligation bonds, revenue bonds, insured bonds (including all insured bonds with a Aaa/AAA rating), and pre-refunded bonds. Most of the index has historical data to January 1980. In addition, sub-indices have been created based on maturity, state, sector, quality, and revenue source, with inception dates later than January 1980.

Terms of Use

The views provided on this Web site are intended to provide the investor with an introduction to Clark Capital Management Group and its investment strategies and the Navigator Duration Neutral Bond Fund. Nothing on this website should be construed as a solicitation or offer, or recommendation, to buy or sell any security, or as an offer to provide advisory services by Clark Capital Management Group in any jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. Information on this website is intended only for United States citizens and residents. Nothing contained on this website constitutes investment, legal, tax or other advice, nor should be relied upon in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Shares in the Navigator Duration Neutral Bond Fund are offered by prospectus only.

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