NOTES TO FINANCIAL STATEMENTS
March 31, 2013 (Unaudited)
1.
ORGANIZATION
The Ascendant Balanced Fund (“ABF”) and Ascendant MultiCap Equity Fund (“AMEF”), are each a diversified series of shares of beneficial interest of Northern Lights Fund Trust (the “Trust”), a statutory trust organized under the laws of the State of Delaware on January 19, 2005, and are registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as open-end management investment companies. ABF seeks total return from income and growth of capital. AMEF seeks growth of capital.
The Funds currently offer Class A, Class C and Class I shares. Class A shares are offered at net asset value plus a maximum sales charge of 5.75%. Class C and Class I shares are offered at net asset value. Each class represents an interest in the same assets of the Fund and classes are identical except for differences in their sales charge structures and ongoing service and distribution charges. All classes of shares have equal voting privileges except that each class has exclusive voting rights with respect to its service and/or distribution plans. The Funds’ income, expenses (other than class specific distribution fees) and realized and unrealized gains and losses are allocated proportionately each day based upon the relative net assets of each class.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the Funds in preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
Security Valuation –
Securities, including exchange traded funds, listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (“NOCP”). In the absence of a sale such securities shall be valued at the last bid price on the day of valuation. Debt securities (other than short-term obligations) are valued each day by an independent pricing service approved by the Board of Trustees (the “Board”) based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, and general market conditions or market quotations from a major market maker in the securities. Investments valued in currencies other than the U.S. dollar are converted to U.S. dollars using exchange rates obtained from pricing services. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, are valued at amortized cost. Investments in open-end investment companies are valued at net asset value.
The Fund’s investments in private investment funds are presented at fair value as determined by the Advisor. The Fund’s private investment funds are subject to the terms and conditions of the respective
The Ascendant Funds
NOTES TO FINANCIAL STATEMENTS
(Continued)
March 31, 2013 (Unaudited)
operating agreements and offering memorandums, as appropriate. In accordance with GAAP, as a practical expedient, the fair value of the Fund’s ownership in private investment funds is determined based on the Fund’s pro-rata interest in the net assets of each private investment fund. The private investment funds value their underlying investments at fair value in accordance with policies established by such private investment funds, as described in each of their financial statements and offering memorandums. The Fund’s valuation method utilizes financial information supplied by each private investment fund and is net of management and incentive fees or allocations payable to the private investment fund’s manager pursuant to the private investment fund’s pertinent agreements. These investments are classified as Level 2 investments as they can be redeemed daily at fair value.
A Fund may hold securities, such as private placements, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued at their fair market value as determined using the “fair value” procedures approved by the Board. The Board has delegated execution of these procedures to a fair value team composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) adviser. The team may also enlist third party consultants such as an audit firm or financial officer of a security issuer on an as-needed basis to assist in determining a security-specific fair value. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.
Fair Value Team and Valuation Process
- This team is composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) adviser. The applicable investments are valued collectively via inputs from each of these groups. For example, fair value determinations are required for the following securities:
(i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source),
(ii) securities for which, in the judgment of the adviser, the prices or values available do not represent the fair value of the instrument. Factors which may cause the adviser to make such a judgment include, but are not limited to, the following: only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading;
(iii) securities determined to be illiquid;
(iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”) since the closing prices were established on the principal exchange on which they are traded, but prior to a Fund’s calculation of its net asset value. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private placements or non-traded securities are valued via inputs from the adviser based upon the current bid for the security from
two
or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances).
If the adviser is unable to obtain a current bid from
such
independent
dealers
or other independent
parties
, the
fair value team shall determine the fair value of such security using the following factors: (i) the type of
The Ascendant Funds
NOTES TO FINANCIAL STATEMENTS
(Continued)
March 31, 2013 (Unaudited)
security; (ii) the cost at date of purchase; (iii) the size and nature of the Fund's holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.
The Funds utilize various methods to measure fair value of all of their investments on a recurring basis. GAAP establishes the hierarchy that prioritizes inputs to valuation methods. The three levels of input are:
Level 1 –
Unadjusted quoted prices in active markets for identical assets and liabilities that the Funds have the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not
available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of March 31, 2013 for the Funds’ assets and liabilities measured at fair value:
The Ascendant Funds
NOTES TO FINANCIAL STATEMENTS
(Continued)
March 31, 2013 (Unaudited)
|
|
|
|
|
|
Ascendant Balanced Fund
|
|
Assets *
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
Common Stocks
|
$ 11,264,803
|
$ -
|
$ -
|
$ 11,264,803
|
|
Exchange Traded Funds
|
939,170
|
-
|
-
|
939,170
|
|
Non-Convertible Bonds
|
-
|
1,921,668
|
-
|
1,921,668
|
|
Convertible Bonds
|
-
|
4,553,931
|
-
|
4,553,931
|
|
U.S. Government Treasury Obligations
|
-
|
95,614
|
-
|
95,614
|
|
Purchased Put Options
|
10,660
|
-
|
-
|
10,660
|
|
Short-Term Investment
|
131,849
|
-
|
-
|
131,849
|
|
Total
|
$ 12,346,482
|
$ 6,571,213
|
$ -
|
$ 18,917,695
|
|
|
|
|
|
|
Ascendant MultiCap Equity Fund
|
|
Assets *
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|
Common Stocks
|
$ 1,832,716
|
$ -
|
$ -
|
$ 1,832,716
|
|
Exchange Traded Funds
|
106,142
|
-
|
-
|
106,142
|
|
Short-Term Investment
|
81,014
|
-
|
-
|
81,014
|
|
Total
|
$ 2,019,872
|
$ -
|
$ -
|
$ 2,019,872
|
There were no transfers in to or out of Level 1 and Level 2 during the current period presented. It is the Funds’ policy to recognize transfers in to or out of Level 1 and Level 2 at the end of the reporting period.
The Funds did not hold any Level 3 securities during the period.
* See Portfolio of Investments for industry classification.
Security Transactions and Related Income
– Security transactions are accounted for on trade date. Interest income is recognized on an accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
Dividends and Distributions to Shareholders –
Dividends from net investment income, if any, are declared and paid annually. Distributable net realized capital gains, if any, are declared and distributed annually. Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions to shareholders are recorded on ex-dividend date.
The Ascendant Funds
NOTES TO FINANCIAL STATEMENTS
(Continued)
March 31, 2013 (Unaudited)
Federal Income Taxes –
The Funds intend to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to their shareholders. Therefore, no provision for Federal income tax is required. The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions expected to be taken in the Funds’ 2013 tax returns. The Funds have identified their major tax jurisdictions as U.S. Federal, Nebraska and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
Exchange Traded Funds –
The Funds may invest in exchange traded funds (“ETFs”). ETFs are a
type of index fund bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. The Funds may purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity on an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.
Expenses –
Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses, which are not readily identifiable to a specific fund, are allocated in such a manner as deemed equitable (as determined by the Board), taking into consideration the nature and type of expense and the relative sizes of the funds in the Trust.
Indemnification –
The Trust indemnifies its officers and Trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnities. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be remote.
3.
INVESTMENT TRANSACTIONS
For the six months ended March 31, 2013, cost of purchases and proceeds from sales of portfolio securities, other than short-term investments amounted to $13,035,625 and $5,983,483, respectively, for ABF. For the six months ended March 31, 2013, cost of purchases and proceeds from sales of portfolio securities, other than short-term investments, amounted to $785,836 and $1,501,536, respectively, for AMEF.
The Ascendant Funds
NOTES TO FINANCIAL STATEMENTS
(Continued)
March 31, 2013 (Unaudited)
4.
INVESTMENT ADVISORY AGREEMENT / TRANSACTIONS WITH AFFILIATES
The business activities of the Funds are overseen by the Board, which is responsible for the overall management of the Funds. Ascendant Advisors, LLC serves as the Funds’ Investment Adviser (the “Adviser”). The Funds have employed Gemini Fund Services, LLC (“GFS”) to provide
administration, fund accounting, and transfer agent services. A Trustee and certain officers of the Funds are also officers of GFS, and are not paid any fees directly by the Funds for serving in such capacities. Pursuant to an Advisory Agreement with the Funds, the Adviser, under the oversight of the Board, directs the daily operations of the Funds and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Adviser, the Funds pay the Adviser a management fee, computed and accrued daily and paid monthly, at an annual rate of 1.10% of ABF and 1.15% of AMEF average daily net assets.
Pursuant to a written contract (the “Waiver Agreement”), the Adviser has agreed, at least until January 31, 2014, to waive a portion of its advisory fee and has agreed to reimburse ABF and AMEF for other expenses to the extent necessary so that the total expenses incurred by the Funds (excluding taxes, leverage interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, dividend expense on securities sold short, or extraordinary expenses, such as litigation, not incurred in the ordinary course of the Funds’ business) do not exceed the following:
|
|
|
|
|
|
Class A
|
Class C
|
Class I
|
|
ABF
|
2.35%
|
3.10%
|
2.10%
|
|
AMEF
|
2.40%
|
3.15%
|
2.15%
|
These amounts will herein be referred to as the "expense limitations" and are based upon a per annum of the Funds’ average daily net assets. For the period ended March 31, 2013, the Adviser waived fees and reimbursed expenses in the amount of $6,851 for ABF and $51,696 for AMEF.
If the Adviser waives any fee or reimburses any expenses pursuant to the Waiver Agreement, and any Fund’s operating expenses are subsequently lower than their respective expense limitation, the Adviser shall be entitled to reimbursement by the Fund(s) provided that such reimbursement does not cause that Fund's operating expenses to exceed the respective expense limitation. If any Fund's operating expenses subsequently exceed the respective expense limitation, the reimbursements for such Fund(s) shall be suspended. The Adviser may seek reimbursement only for expenses waived or paid by it during the three fiscal years prior to such reimbursement; provided, however, that such expenses may only be reimbursed to the extent they were waived or paid after the date of the Waiver Agreement (or any similar agreement). The Board may terminate this expense reimbursement arrangement at any time.
The following amounts are subject to recapture by the funds by the following dates:
![[TABLENEW002.GIF]](http://content.edgar-online.com/edgar_conv_img/2013/06/10/0000910472-13-002381_TABLENEW002.GIF)
The Ascendant Funds
NOTES TO FINANCIAL STATEMENTS
(Continued)
March 31, 2013 (Unaudited)
During the period ended March 31, 2013, AWM Services, LLC, a registered broker/dealer and an affiliate of the Funds executed trades on behalf of the Funds. AWM Services, LLC received $32,546 from ABF and $8,707 from AMEF in brokerage commissions.
Distributor-
The Board has adopted a Distribution Plan and Agreement pursuant to Rule 12b-1 under the 1940 Act (the “Plan”). The Plan provides that a monthly service and/or distribution fee is calculated by the Funds at an annual rate of 0.25% of the average daily net assets of each Fund’s Class A shares and an annual rate of 1.00% of the average daily net assets of each Fund’s Class C shares. The Funds will pay Northern Lights Distributors, LLC (the “Distributor”), to provide compensation for ongoing distribution-related activities or services and/or maintenance of the Funds’ shareholder accounts, not otherwise required to be provided by the Adviser. The Plan is a compensation plan, which means that compensation is provided regardless of 12b-1 expenses incurred.
The Distributor acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares. The Distributor is an affiliate GFS. On sales of ABF’s Class A shares for the period ended March 31, 2013, the Distributor received $0 from front-end sales charges of which $0 was retained by the principal underwriter or other affiliated broker-dealers. On sales of AMEF’s Class A shares for the period ended March 31, 2013, the Distributor received $0 from front-end sales charges of which $0 was retained by the principal underwriter or other affiliated broker-dealers.
Trustees-
Effective April 1, 2013, the Fund pays its pro rata share of a total fee of $27,625 per quarter for the Northern Lights Fund Trust to each Trustee who is not affiliated with the Trust or Advisor. Previously, the Fund paid its pro rata share of a total fee of $21,500 per quarter for the Northern Lights Fund Trust to each Trustee who is not affiliated with the Trust or Advisor. The Fund pays the chairperson of the Audit committee and the Lead Independent Trustee a pro rata share of an additional $2,000 per quarter. The “interested persons” who serve as Trustees of the Trust receive no compensation for their services as Trustees. None of the executive officers receive compensation from the Trust.
Pursuant to separate servicing agreements with GFS, The Funds pay GFS customary fees for providing administration, fund accounting, transfer agency and custody administration services to the Funds. GFS provides a Principal Executive Officer and a Principal Financial Officer to the Funds.
In addition, certain affiliates of GFS provide ancillary services to the Funds as follows:
Northern Lights Compliance Services, LLC
(“NLCS”)
-
NLCS, an affiliate of GFS, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Funds.
Gemcom, LLC
(“Gemcom”)
-
Gemcom, an affiliate of GFS, provides EDGAR conversion and filing services as well as print management services for the Funds on an ad-hoc basis. For the provision of these services, Gemcom receives customary fees from the Funds.
The Ascendant Funds
NOTES TO FINANCIAL STATEMENTS
(Continued)
March 31, 2013 (Unaudited)
5. DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL
The tax character of distributions paid during the period ended September 30, 2012 were as follows:
|
|
|
|
|
|
|
|
|
|
Fiscal Period Ended September 30, 2012
|
|
|
|
Ordinary
|
|
Long-Term
|
|
|
|
|
|
Income
|
|
Capital Gain
|
|
Total
|
|
ABF
|
|
$ 11,576
|
|
$ -
|
|
$ 11,576
|
|
AMEF
|
|
19,531
|
|
-
|
|
19,531
|
As of September
30, 2012, the components of accumulated earnings/(deficit) on a tax basis were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undistributed
|
|
Undistributed
|
|
Capital Loss
|
|
Post October
|
|
Unrealized
|
|
Total
|
|
|
|
Ordinary
|
|
Long-Term
|
|
Carry
|
|
& Late Year
|
|
Appreciation/
|
|
Accumulated
|
|
|
|
Income
|
|
Gains
|
|
Forwards
|
|
Losses
|
|
(Depreciation)
|
|
Earnings/(Deficits)
|
|
ABF
|
|
$ 25,813
|
|
$ 5,065
|
|
$ -
|
|
$ (2,066)
|
|
$ 935,350
|
|
$ 964,162
|
|
AMEF
|
|
6,661
|
|
722
|
|
-
|
|
(5,898)
|
|
319,310
|
|
320,795
|
The difference between book basis and tax basis unrealized appreciation, undistributed ordinary income and accumulated net realized gain/(loss) from security transactions is primarily attributable to the tax deferral of losses on wash sales, the tax treatment of short-term capital gains and adjustments for partnerships.
Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Funds incurred and elected to defer such late year losses as follows:
|
|
|
|
|
|
Late Year
|
|
|
|
Losses
|
|
ABF
|
|
$ 2,066
|
|
AMEF
|
|
5,898
|
Permanent book and tax differences, primarily attributable to the tax treatment of net operating losses, resulted in reclassification for the period ended September 30, 2012 as follows:
|
|
|
|
|
|
|
|
|
|
Paid in
|
|
Accumulated Net
|
|
Accumulated Net Realized Gain/(Loss)
|
|
|
|
Capital
|
|
Investment Loss
|
|
from Security Transactions
|
|
ABF
|
|
$ -
|
|
$ (17,213)
|
|
$ 17,213
|
|
AMEF
|
|
(959)
|
|
(5,841)
|
|
6,800
|
6.
NEW ACCOUNTING PRONOUNCEMENTS
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11 related to disclosures about offsetting assets and liabilities. In January 2013, the FASB issued ASU No. 2013-01 which gives additional clarification to ASU 2011-11. The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance requires retrospective application for all comparative periods presented. Management is currently evaluating the impact this amendment may have on the Fund’s financial statements.
7.
REDEMPTION FEES
The Funds may assess a
short-term redemption fee of 2.00% of the total redemption amount if a shareholder sells their shares after holding them for less than 30 days. The redemption fee is paid directly to the specific Fund in which the short-term redemption fee occurs. For the period ended March 31, 2013, ABF assessed $486 in redemption fees.
8.
SUBSEQUENT EVENTS
Subsequent events after the balance sheet date have been evaluated through the date the financial statements were issued. Management has concluded that there is no impact requiring adjustment or disclosure in the financial statements.
The Ascendant Funds
EXPENSE EXAMPLES (Unaudited)
March 31, 2013
As a shareholder of Ascendant Balanced Fund and Ascendant MultiCap Equity Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in Ascendant Balanced Fund and Ascendant MultiCap Equity Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2012 through March 31, 2013.
Actual Expenses
The “Actual Expenses” line in the table below provides information about actual account values and actual expenses. You may use the information below together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The “Hypothetical” line in the table below provides information about hypothetical account values and hypothetical expenses based on The Ascendant Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or redemption fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
|
|
|
|
Actual
|
Beginning Account Value
10/1/12
|
Ending
Account Value
3/31/13
|
Expenses Paid
During Period
10/1/12 – 3/31/13*
|
Expense Ratio During Period
10/1/12 – 3/31/13**
|
|
Ascendant Balanced Fund:
|
|
|
|
|
|
Class A
|
$1,000.00
|
$1,081.50
|
$ 12.20
|
2.35%
|
|
Class C
|
1,000.00
|
1,076.80
|
16.05
|
3.10%
|
|
Class I
|
1,000.00
|
1,082.80
|
10.92
|
2.10%
|
|
Ascendant MultiCap Equity Fund:
Class A
|
$1,000.00
|
$1,095.90
|
$ 12.54
|
2.40%
|
|
Class C
|
1,000.00
|
1,093.10
|
16.44
|
3.15%
|
|
Class I
|
1,000.00
|
1,097.90
|
11.25
|
2.15%
|
The Ascendant Funds
EXPENSE EXAMPLES (Unaudited)(Continued)
March 31, 2013
|
Hypothetical (5% return before Expenses)
|
Beginning Account Value 10/1/12
|
Ending
Account Value
3/31/13
|
Expenses Paid
During Period
10/1/12 – 3/31/13*
|
Expense Ratio During Period 10/1/12 –3/31/13**
|
|
Ascendant Balanced Fund:
|
|
|
|
|
|
Class A
|
$1,000.00
|
$1,013.21
|
$ 11.80
|
2.35%
|
|
Class C
|
1,000.00
|
1,009.47
|
15.53
|
3.10%
|
|
Class I
|
1,000.00
|
1,014.45
|
10.56
|
2.10%
|
|
Ascendant MultiCap Equity Fund:
Class A
|
$1,000.00
|
$1,012.96
|
$ 12.04
|
2.40%
|
|
Class C
|
1,000.00
|
1,009.22
|
15.78
|
3.15%
|
|
Class I
|
1,000.00
|
1,014.21
|
10.80
|
2.15%
|
* Expenses are equal to the average account value over the period, multiplied by the Funds’ annualized expense ratio, multiplied by the number of days in the period (182) days for each Fund’s divided by the number of days in the fiscal year (365).
** Annualized.
PRIVACY NOTICE
NORTHERN LIGHTS FUND TRUST
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FACTS
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WHAT DOES NORTHERN LIGHTS FUND TRUST DO WITH YOUR PERSONAL INFORMATION?
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Why?
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Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
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What?
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The types of personal information we collect and share depends on the product or service that you have with us. This information can include:
·
Social Security number and wire transfer instructions
·
account transactions and transaction history
·
investment experience and purchase history
When you are
no longer
our customer, we continue to share your information as described in this notice.
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How?
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All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Northern Lights Fund Trust chooses to share; and whether you can limit this sharing.
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Reasons we can share your personal information:
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Does Northern Lights Fund Trust share information?
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Can you limit this sharing?
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For our everyday business purposes -
such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus.
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YES
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NO
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For our marketing purposes -
to offer our products and services to you.
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NO
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We don’t share
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For joint marketing with other financial companies.
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NO
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We don’t share
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For our affiliates’ everyday business purposes -
information about your transactions and records.
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NO
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We don’t share
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For our affiliates’ everyday business purposes -
information about your credit worthiness.
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NO
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We don’t share
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For nonaffiliates to market to you
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NO
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We don’t share
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QUESTIONS?
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Call 1-402-493-4603
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PRIVACY NOTICE
NORTHERN LIGHTS FUND TRUST
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What we do
:
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How does
Northern Lights Fund Trust
protect my personal information?
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To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.
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How does
Northern Lights Fund Trust
collect my personal information?
|
We collect your personal information, for example, when you
·
open an account or deposit money
·
direct us to buy securities or direct us to sell your securities
·
seek advice about your investments
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
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Why can’t I limit all sharing?
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Federal law gives you the right to limit only:
·
sharing for affiliates’ everyday business purposes – information about your creditworthiness.
·
affiliates from using your information to market to you.
·
sharing for nonaffiliates to market to you.
State laws and individual companies may give you additional rights to limit sharing.
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Definitions
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Affiliates
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Companies related by common ownership or control. They can be financial and nonfinancial companies.
·
Northern Lights Fund Trust has no affiliates.
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Nonaffiliates
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Companies not related by common ownership or control. They can be financial and nonfinancial companies.
·
Northern Lights Fund Trust does not share with nonaffiliates so they can market to you.
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Joint marketing
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A formal agreement between nonaffiliated financial companies
that together market financial products or services to you.
·
Northern Lights Fund Trust does not jointly market
.
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PROXY VOTING POLICY
Information regarding how each Fund voted proxies relating to portfolio securities for the most recent twelve month period ended June 30 as well as a description of the policies and procedures that each Fund uses to determine how to vote proxies is available without charge, upon request, by calling 1-855-527-2363 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
PORTFOLIO HOLDINGS
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (1-800-SEC-0330). The information on Form N-Q is available without charge, upon request, by calling 1-855-527-2363.
INVESTMENT ADVISOR
Ascendant Advisors, LLC
Four Oaks Place
1330 Post Oaks Blvd., Suite 1550
Houston, TX 77056
ADMINISTRATOR
Gemini Fund Services, LLC
80 Arkay Drive, Suite 110
Hauppauge, New York 11788