Eventide Healthcare & Life Sciences Fund Presentation as of December 31, Eventide Asset Management, LLC.

Transcription

1 Eventide Healthcare & Life Sciences Fund Presentation as of December 31, /5/18 Eventide Asset Management, LLC. 1

2 Eventide Asset Management INVESTMENTS DESIGNED FOR PERFORMANCE AND A BETTER WORLD Founded: 2008 Headquarters: Boston, MA Vision: To serve individuals, financial advisors, and institutions by offering high performance investments that create compelling value for the global common good. Funds: Eventide Gilead Fund Eventide Healthcare & Life Sciences Fund Eventide Multi-Asset Income Fund Eventide Global Dividend Opportunities Fund AUM: $2.1B in net assets under management There is no guarantee that the Adviser will meet its objectives. 2/5/18 Eventide Asset Management, LLC. 2

3 Eventide Healthcare & Life Sciences Fund A: ETAHX C: ETCHX I: ETIHX N: ETNHX FUND OBJECTIVE Seeks to provide long-term capital appreciation ABOUT THE FUND A diversified mutual fund representing our "best ideas" for long-term capital appreciation in the healthcare and life sciences sectors ( 80%). Concentrates investments in the drug-related industries ( 25%). May invest in illiquid securities ( 15%). BENCHMARK S&P 500 Index SECONDARY BENCHMARK S&P Biotechnology Select Industry Index (Former: Healthcare Blended Index) MORNINGSTAR CATEGORY LIPPER CATEGORY TOTAL ASSETS Health Health/Biotech $462MM (Inception date: December 27, 2012) Healthcare and life sciences companies include those companies that derive or are expected to derive 50% or more of their revenue from healthcare and life science products and services including, but not limited to, biotechnology, pharmaceuticals, diagnostics, life science tools, medical devices, healthcare information technology, healthcare services, synthetic biology, agricultural and environmental management, and pharmaceutical manufacturing products and services. These companies include smaller development-stage companies. The S&P 500 is an index created by Standard & Poor s of American stocks with the largest market capitalization. It is not an investment product available for purchase. The Healthcare Blended Index is composed of equal parts of the S&P 400 Healthcare Index and the S&P 600 Healthcare Index from Fund inception on 27 December, The S&P Biotechnology Select Industry Index represents the biotechnology sub-industry portion of the S&P Total Markets Index. The secondary index for the Fund changed from the Healthcare Blended Index to the S&P Biotechnology Select Industry Index on April 1, This change was made because the Adviser believes that the composition of the S&P Biotechnology Select Industry Index better reflects the risks and opportunities of the Fund s portfolio. The volatility of the indices may be materially different than that of the Fund, and investors should not expect the Fund to achieve the same results as the indices listed There is no guarantee that the Adviser's approach will produce the desired results. All investments involve risk, including the possible loss of principal. 2/5/18 Eventide Asset Management, LLC. 3

4 Fund Distinctives A: ETAHX C: ETCHX I: ETIHX N: ETNHX DEEP DOMAIN EXPERTISE IN HEALTHCARE, BIOTECH, AND PHARMA Investment team experience in the space: COMBINED EXPERIENCE: Venture capital Public markets 10 YEARS 10 YEARS Physician Scientist 4 YEARS 3 YEARS FOCUSED ON EARLY DEVELOPMENT- STAGE COMPANIES Median market capitalization of $1.2B. CREATING COMPELLING VALUE FOR PATIENTS AND SOCIETY Targeting large unmet medical needs, rare and orphan diseases. ACCESS TO UNIQUE OFFERINGS Investing in IPOs, mezzanine financing offerings, and up to 15% in private investments. Median market capitalization as of 12/31/2017. Companies valued at greater than $10 billion are Large Cap; those at less than $1 billion are Small Cap. Portfolio Composition is subject to change at any time, and should not be considered investment advice. For informational purposes only. There is no guarantee that the Adviser's approach will produce the desired results. All investments involve risks, including the possible loss of principal. 2/5/18 Eventide Asset Management, LLC. 4

5 Portfolio Management Finny Kuruvilla, MD PhD CIO ROLE Dr. Kuruvilla serves as the CIO for Eventide, Lead Portfolio Manager on the Eventide Gilead Fund, and Lead Portfolio Manager on the Eventide Healthcare & Life Sciences Fund. Agustin Mohedas, PhD Research Analyst Colin Delaney Director of Portfolio Operations, Product Specialist ROLE Dr. Mohedas is primarily responsible for evaluating and monitoring new and existing healthcare investment opportunities in the portfolios. ROLE Mr. Delaney serves as Director of Portfolio Operations and is a Product Specialist for the Advisory Services team at Eventide.. For informational purposes only. 2/5/18 Eventide Asset Management, LLC. 5

6 Investment Philosophy We believe high-quality companies that excel at creating value for others and trade at a discount to intrinsic value offer superior long-term risk-adjusted returns. The Adviser s judgment about the quality and intrinsic value of particular companies may prove to be incorrect. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/5/18 Eventide Asset Management, LLC. 6

7 Investment Process IDEA GENERATION Understand the big picture of fundamentals within healthcare. Identify the most attractive investment themes and companies best positioned for participation. QUALITATIVE ANALYSIS Look for high quality companies through assessment of competitive advantages, management teams, and value creation. FINANCIAL ANALYSIS Look for companies with current financial strength and long-term potential of profitability. VALUATION ANALYSIS Measure intrinsic value. Identify companies with the most attractive upside potential and highest long-term probability of gain vs. loss. RISK MANAGEMENT Construct portfolio with goals of high internal diversification and low market correlation. MACRO POSITIONING Adjust portfolio risk exposure during company binary events. EVENTIDE HEALTHCARE & LIFE SCIENCES FUNDS Our best ideas. Continue to monitor investment case. Adjust estimates, price targets, conclusions, and position sizes, to reflect changes in the fundamentals. There is no guarantee that the Adviser's Investment Process will produce the desired results. All investments involve risks, including possible loss of capital. 2/5/18 Eventide Asset Management, LLC. 7

8 Idea Generation START WITH THEMES, THEN IDENTIFY THE COMPANIES BEST POSITIONED FOR PARTICIPATION First understand the big picture fundamentals within Healthcare. FACTORS: Scientific and medical advances Changes in the standard of care of diseases Unmet medical needs Value proposition to patients Total addressable market size Identify themes from our own due diligence. DILIGENCE: Staying current on relevant scientific and medical literature Attending scientific and medical conferences Engaging key opinion leaders within industry Speaking with experienced physicians Discern most attractive themes. Identify companies best positioned for participation. The Adviser's judgment about secular themes, and particular companies may prove to be incorrect. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/5/18 Eventide Asset Management, LLC. 8

9 Secular Investment Themes INVEST IN THEMES POSITIONED TO MEET IMPORTANT HUMAN NEEDS 1. Gene Therapy/Editing 2. Central Nervous System (CNS) 3. CAR-T 4. Immunotherapy/Oncology (I/O) 5. Rare and orphan diseases The Adviser's judgment about secular themes may prove to be incorrect. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/5/18 Eventide Asset Management, LLC. 9

10 Qualitative Analysis LOOK FOR HIGH- QUALITY COMPANIES Sustainable competitive advantages Great management teams Creating compelling value SUSTAINABLE COMPETITIVE ADVANTAGES + Best-in-class assets + Unique technology platforms + Strong intellectual property SOURCES: GREAT MANAGEMENT TEAMS CREATING COMPELLING VALUE SEC filings (annual reports, quarterly reports, proxies, 13F filings to check for institutional holdings particularly from peers we respect) Press releases Conference calls Regular meetings with company management teams Speaking with physicians that treat patients Management has done it before High degree of integrity Incentives aligned with shareholders (high level of insider ownership without significant selling) Targeting large unmet medical need Focused on value creation for key stakeholders Attending medical conferences The Adviser's judgment about the quality of a particular company may prove to be incorrect. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/5/18 Eventide Asset Management, LLC. 10

11 Business 360 is a proprietary evaluative framework to help us find companies that are creating compelling value. WE BELIEVE WHAT S RIGHT Qualitative analysis of companies around value creation for key stakeholder relationships: especially society, customers, and employees. IS ALSO SMART We believe value creation is an underappreciated source of alpha, providing essential insights into true business vitality, competitive advantage, and long-term sustainability and growth. The Business 360 framework informs the Adviser's investment process, but cannot in and of itself be used to determine which securities to buy or sell. There is no guarantee that the Adviser's Business 360 approach will produce the desired results. The term smart is used for informational purposes only, and does not imply a certain level of skill or training by the Adviser. 2/5/18 Eventide Asset Management, LLC. 11

12 Financial Analysis LOOK FOR COMPANIES WITH CURRENT FINANCIAL STRENGTH AND LONG- TERM POTENTIAL FOR PROFITABILITY Analyze current financial strength: QUALITIES: Well capitalized ( 1 year of cash remaining) to reach key milestones (clinical trial data release, FDA indication, product launch) Clean capital structure (no warrants or heavy debt burden) No history of ill-conceived and/or poorly executed financings (extremely dilutive) Analyze the potential for future profitability: FACTORS: Current financing needs (i.e., dilution) Total addressable market (based on epidemiology) Penetration rate (based on competition for target product profile) Pricing (based on comparables) Lifespan of sales (based on IP) Compare our estimates to market consensus to assess opportunity. The Adviser's analysis may prove to be incorrect. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/5/18 Eventide Asset Management, LLC. 12

13 Valuation Analysis LOOK FOR COMPANIES WITH MOST ATTRACTIVE VALUE AND POTENTIAL Measure intrinsic value through Discounted Cash Flow analysis. Build DCF model using forecast assumptions and then probability-adjust the calculated net present value based on our qualitative assessment of the company. Compare our estimates to market consensus to assess opportunity. Identify companies with the most attractive upside potential and highest long-term probability of gain vs. loss. We believe the best way to measure the intrinsic value of a company is with Discounted Cash Flow valuation analysis. This takes into account the magnitude, timing, and risk of future free cash flows, discounted to today based on the company s cost of capital. It also takes into account the sustainability of its competitive advantages (reflected in the fade rate). The Adviser's analysis may prove to be incorrect. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/5/18 Eventide Asset Management, LLC. 13

14 Portfolio Construction, Risk Management CONSTRUCT PORTFOLIO, MANAGE FOR RISK Concentrated portfolio of best ideas, approximately companies (based on conviction level and asymmetry of gain vs. loss). Manage for risk through high internal diversification and pursuit of consummate knowledge of holdings. Devote 50% of investment team time to actively monitoring portfolio holdings, scrutinizing investment case, and building conviction through circling diligence. Adjust positioning for company-specific binary events. Adjust estimates, price targets, conclusions, and position sizes to reflect changes in fundamentals. There is no guarantee that the Adviser will meet its objectives. All investments involve risk, including the possible loss of principal. 2/5/18 Eventide Asset Management, LLC. 14

15 Sell Discipline CONTINUOUSLY SCRUTINIZE INVESTMENT CASE Investment thesis failure. No longer meets Eventide s Business 360 criteria. Price target achieved. Management transition or other concerns. More attractive use of capital elsewhere. For informational purposes only. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/5/18 Eventide Asset Management, LLC. 15

16 Biotech Investment Checklist A: ETAHX C: ETCHX I: ETIHX N: ETNHX q q q q q q Compelling data (i.e., differentiated efficacy, toxicity, or route of delivery) ideally from a well-controlled clinical trial or, if preclinical, the molecular target or animal model is well-validated and translatable into humans. Targeting a large unmet medical need that with conservative assumptions yields a probability-adjusted Net Present Value (NPV) that is significantly higher (i.e., 100%) than the current valuation. Undervalued due to a identifiable market inefficiency (e.g., company is a new issue and not well-known) which we anticipate to correct itself over time and trade closer to its intrinsic value. Well-capitalized (i.e., 1 year of cash beyond key milestones with conservative assumptions on enrollment, etc.) or will be wellcapitalized after the current financing. Clean capital structure without a heavy debt burden or a significant amount of outstanding warrants and no history of bad financings. Great management team that has done it before (e.g., many years of industry experience or a successful track record of running biotech companies), has a high degree of integrity (i.e., no associations with low-tier investment banks), and is aligned with shareholders (i.e., strong insider ownership without significant selling). There is no guarantee that the Adviser will meet its objectives. All investments involve risk, including the possible loss of principal. 2/5/18 Eventide Asset Management, LLC. 16

17 Composition A: ETAHX C: ETCHX I: ETIHX N: ETNHX 2. Companies valued at greater than $10 billion are Large Cap; those at less than $1 billion are Small Cap. Portfolio Composition is subject to change at any time, and should not be considered investment advice. 3. Industry Allocation is subject to change at any time, and should not be considered investment advice. 2/5/18 Eventide Asset Management, LLC. 17

18 Return A: ETAHX C: ETCHX I: ETIHX N: ETNHX Performance is historical and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed shares may be worth more or less than their original cost. Current performance may be lower or higher than the data quoted. Investors cannot directly invest in an index, and unmanaged index returns do not reflect any fees, expenses, or sales charges. To obtain the most recent month-end performance information and a current Eventide Healthcare & Life Sciences Fund prospectus please call the fund toll free at EVEN (3836). Eventide Healthcare & Life Sciences Fund expenses: Class A, Total Expenses 1.60%; Class C, Total Expenses 2.25%; Class I, Total Expenses 1.35%; Class N, Total Expenses 1.55%. 2. These charts compare the Eventide Healthcare & Life Sciences Fund Class N s performance to index performance over the periods shown. Performance will differ for other fund classes, based upon fees and commissions. The Growth of $10,000 chart assumes the fund s inception date of December 27, 2012 for the indices. 3. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. 4. The S&P 500 is an index created by Standard & Poor s of American stocks with the largest market capitalization. It is not an investment product available for purchase. The Healthcare Blended Index is composed of equal parts of the S&P 400 Healthcare Index and the S&P 600 Healthcare Index from fund inception on December 27, The S&P Biotechnology Select Industry Index represents the biotechnology sub-industry portion of the S&P Total Markets Index. The secondary index for the fund changed from the Healthcare Blended Index to the S&P Biotechnology Select Industry Index on April 1, This change was made because the Adviser believes that the composition of the S&P Biotechnology Select Industry Index better reflects the risks and opportunities of the fund s portfolio. The performance of both indices will be shown for a period of one year. Thereafter, the performance of the Healthcare Blended Index will no longer be shown on the Summary sheet. The volatility of the indices may be materially different than that of the fund, and investors should not expect the fund to achieve the same results as the indices listed. 5. Performance figures for periods greater than 1 year are annualized. Annualized since inception returns assume an inception date of December 27, /5/18 Eventide Asset Management, LLC. 18

19 Market Risk A: ETAHX C: ETCHX I: ETIHX N: ETNHX 4. Source: Morningstar, Inc. (2017). All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Prior to June 30, 2017, this summary sheet sourced market risk data from Zephyr StyleADVISOR. Other updates to this summary sheet include information intended to help investors assess performance and risk factors associated with the fund s benchmarks. The performance and risk factor comparisons are against the S&P 500 Total Return Index ( Index ). Alpha is a measure of performance on a risk-adjusted basis. It takes the volatility (price risk) of a fund and compares its risk-adjusted performance to the Index. Any excess return of the fund relative to the return of the Index is a fund s alpha. Beta is a measure of the volatility of a fund relative to the Index. A beta greater than 1 is more volatile than the Index. R-Squared measures how a fund s performance correlates with the Index s performance and it can help assess how likely it is that beta is statistically signicant. Standard Deviation of return measures the amount of variation in historical performance from period to period. 5. Annualized since inception market risk details assume inception date of January 1, 2013 and not fund s actual inception date of December 27, 2012, as only full month data is included in the market risk calculations. 2/5/18 Eventide Asset Management, LLC. 19

20 Morningstar Ratings A: ETAHX C: ETCHX I: ETIHX N: ETNHX 15% Overall Rating Health Top 15% Top 3% 1yr returns (144 funds) Top 9% 3yr returns (129 funds) Top 1% 5yr returns (121 funds) Percentile Ranking Health for December 31, 2017 for December 31, 2017 based on total returns 2018 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar Rating TM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product 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. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. Rated three stars against 121 Health Funds for the 5yr period, as of 12/31/2017, and three stars against 129 Health Funds for the 3yr period based on risk-adjusted total return. Ratings are determined monthly and subject to change. Rankings pertain to Eventide Healthcare & Life Sciences Fund Class N Shares. Sustainalytics provides company-level analysis used in the calculation of Morningstar s Sustainability Score. The Morningstar Sustainability Rating is derived from the Morningstar Portfolio Sustainability Score TM, which is calculated based on company-level ESG scores and company involvement in ESG-related controversies, using Sustainalytics ESG data. Sustainalytics has five Research Types : Comprehensive, Core, No Data, No Access, and Research in Progress. Eventide will include Sustainability ratings for funds for which more than 50% of the holdings have the Comprehensive Research Type. 2/5/18 Eventide Asset Management, LLC. 20

21 Awards and Recognition A: ETAHX C: ETCHX I: ETIHX N: ETNHX Ranked #3 for 1yr return (99 funds) Health & Biotech for Dec 29, 2017 based on total returns Wall Street Journal rankings are not intended to constitute investment advice. Rather, you should use the rankings for informational purposes only. Eventide Healthcare & Life Sciences Fund Class I Shares ranked #3 out of 99 Health & Biotech funds by the Wall Street Journal (Lipper data). Total return for the top 10 funds ranked by one-year performance as of Dec. 29, Total return includes capital appreciation and reinvested distributions. Returns shown for periods of one year or less are cumulative. All performance numbers are final. For funds with multiple share classes, only the largest is shown. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. Past performance is not assurance of future results. 2/5/18 Eventide Asset Management, LLC. 21

22 PLATFORM AVAILABILITY & SALES AGREEMENTS For Fund platform availability inquiries or to initiate a sales agreement, please contact Harry Nelson at hnelson@eventidefunds.com or , x53. LITERATURE For Fund literature or prospectus, please contact info@eventidefunds.com. 2/5/18 Eventide Asset Management, LLC. 22

23 Distribution Team Harry Nelson, CIMA Jeff Cave, CIMA Richard Ranck, CIMA Lans Slack Cole Pearson ROLE Mr. Nelson serves as the Director of Distribution for Eventide. Harry is responsible for leading sales and distribution and overseeing coordination between sales, marketing, and advisory services. ROLE Mr. Cave serves as the Director of Institutional Markets for Eventide. He is responsible for institutional sales and client service. ROLE Mr. Ranck serves as a Regional Sales Director for Eventide. He is responsible for external sales and distribution in the Midwest. ROLE Mr. Slack serves as a Regional Sales Director for Eventide. He is responsible for external sales and distribution in the Southeast. ROLE Mr. Pearson serves as a Regional Associate for Eventide. He is primarily responsible for supporting all members of the distribution team. For informational purposes only. 2/5/18 Eventide Asset Management, LLC. 23

24 Important Information Mutual Funds involve risk including the possible loss of principal. Past performance does not guarantee future results. The Funds ethical values screening criteria could cause it to under-perform similar funds that do not have such screening criteria. The Funds can have risk related to option investing. There are special risks associated with investments in foreign companies including exposure to currency fluctuations, less efficient trading markets, political instability and differing auditing and legal standards. The Eventide Gilead Fund & Eventide Healthcare & Life Sciences Fund can invest in smaller-sized companies which may experience higher failure rates than larger companies and they normally have a lower trading volume than larger companies. The Funds can also have risk associated with the biotechnology and pharmaceutical industry in which these companies may be heavily dependent on clinical trials with uncertain outcomes and decisions made by the U.S. Food and Drug Administration. The Funds can invest in private companies. Private investments include various risks including but not limited to lack of liquidity, capital commitment risk, and valuation risk. Private companies may not be financially profitable and have uncertain futures, subjecting them to additional risks. Investors in the Gilead Fund should be aware that companies in the technology industries have different risks including but not limited to products Watch becoming Video obsolete, and entrance of competing products. Companies in the Industrial Sector also carry various risks including, but not limited to, risk related to debt loads and intense competition. 2/5/18 Eventide Asset Management, LLC. 24

25 Important Information Investors in the Eventide Multi-Asset Income Fund should be aware that interest rates are at historic lows and may change at any time based on government policy. In general, the price of a fixed income security falls when interest rates rise. A rise in interest rates may result in volatility and increased redemptions, which in turn could result in the fund being forced to liquidate portfolio securities at disadvantageous prices. Longerterm securities may be more sensitive to changes in interest rates. The intermediate-term bond portion of the Multi-Asset Income Fund s portfolio may represent 0% to 100% of the Fund s portfolio with an average duration of between two and eight years. The Eventide Multi-Asset Income Fund may invest in other funds. If other funds are utilized, such underlying funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in underlying funds and may be higher than other mutual funds that do not invest in underlying funds. The Fund may invest, directly or indirectly, in junk bonds. Such securities are speculative investments that carry greater risks than higher quality debt securities. There are unique risks associated with REITs, preferred stocks, convertible bonds, and BDCs that are covered in the Fund's prospectus and SAI. The Eventide Multi-Asset Income Fund and Eventide Global Dividend Watch Opportunities Video Fund can invest in MLPs and Yieldcos. MLPs carry unique risks including risks surrounding its tax status and risk pertaining to rising interest rates, both of which can negatively impact share price. Yieldcos carry different risks including Yieldco Sponsor Risk and cash flow risk. The Eventide Global Dividend Opportunities Fund is a new mutual fund and has a limited history of operations for investors to evaluate. 2/5/18 Eventide Asset Management, LLC. 25

26 Important Information An investor should consider a fund's investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information can be found in the prospectus, which can be obtained at or by calling EVEN (3836). Please read the prospectus carefully before investing. Eventide Mutual Funds are distributed by Northern Lights Distributors, LLC, Member FINRA, which is not affiliated with Eventide Asset Management, LLC. Watch Video 2/5/18 Eventide Asset Management, LLC. 26

27 C R E A T E V A L U E Eventide Asset Management, LLC One International Place, Ste Boston, MA EVEN (3836) E V E N T I D E F U N D S. COM 2/5/18 Eventide Asset Management, LLC NLD-2/5/

28 Appendix 2/5/18 Eventide Asset Management, LLC. 28

29 Investment Team Bios Finny Kuruvilla, MD PhD Chief Investment Officer, Portfolio Manager, Managing Partner Finny Kuruvilla serves as the CIO for Eventide, lead Portfolio Manager on the Eventide Gilead Fund, and Portfolio Manager on the Eventide Healthcare & Life Sciences Fund. Dr. Kuruvilla has a unique background in healthcare, statistics, and investing. He holds an MD from Harvard Medical School, a PhD in Chemistry and Chemical Biology from Harvard University, a master s degree in Electrical Engineering and Computer Science from MIT, and a bachelor s degree from Caltech in Chemistry. He completed his residency and fellowship at the Brigham & Women s Hospital and Children s Hospital Boston where he cared for adult and pediatric patients suffering from a variety of hematologic, oncologic, and autoimmune disorders. Subsequently, he was a research fellow at MIT where he designed and implemented statistical algorithms involving logistic regression and pseudo-bayesian expectation maximization. As an avid proponent of values-based investing, Dr. Kuruvilla has developed standards for selecting ethical companies at the outset of the stock selection process. Agustin Mohedas, PhD Research Analyst Agustin Mohedas serves as a Research Analyst for Eventide. He is primarily responsible for evaluating and monitoring new and existing investment opportunities in the portfolios. Prior to joining Eventide, Dr. Mohedas was an investment analyst at RA Capital where he focused on evidence-based investing in small- and mid-cap life science equities. Dr. Mohedas holds a BS in Biomedical Engineering from Texas A&M University and a PhD in Medical Engineering Medical Physics from the Harvard-MIT Division of Health Sciences and Technology. In his doctoral research, Agustin developed small molecule compounds to treat fibrodysplasia ossificans progressiva, a rare and devastating genetic disorder. Colin Delaney Director of Portfolio Operations, Product Specialist Colin Delaney serves as Director of Portfolio Operations and is a Product Specialist for the Advisory Services team at Eventide. In his role in Portfolio Operations, Mr. Delaney works closely with the Fund's Portfolio Managers and the investment team to help implement their investment strategies. In his role as Product Specialist, Mr. Delaney acts as a link between Eventide's investment team and our client Advisors, helping them understand the portfolio's investments and strategies. Prior to Eventide, Mr. Delaney was a Senior Vice President at Jefferies LLC, where he served as a sales trader and client relations manager. In nearly 15 years at Jefferies, he was able to participate in a broad range of investment activities giving him a deep and wide understanding of the complete investment process. Mr. Delaney has a degree in Economics from St. Lawrence University. For informational purposes only. 2/5/18 Eventide Asset Management, LLC. 29

30 Our Investment Philosophy We believe high-quality companies that excel at creating value for others and trade at a discount to intrinsic value offer superior long-term risk-adjusted returns. SUSTAINABLE COMPETITIVE ADVANTAGES + Best-in-class assets + Unique technology platforms + Strong intellectual property GREAT MANAGEMENT TEAMS CREATING COMPELLING VALUE Management has done it before High degree of integrity Incentives aligned with shareholders (high level of insider ownership without significant selling) Targeting large unmet medical need Focused on value creation for key stakeholders The Adviser s judgment about the quality and intrinsic value of particular companies may prove to be incorrect. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/5/18 Eventide Asset Management, LLC. 30

31 Our Investment Philosophy We believe high-quality companies that excel at creating value for others and trade at a discount to intrinsic value offer superior long-term risk-adjusted returns. SUSTAINABLE COMPETITIVE ADVANTAGES + Best-in-class assets + Unique technology platforms + Strong intellectual property GREAT MANAGEMENT TEAMS CREATING COMPELLING VALUE Management has done it before High degree of integrity Incentives aligned with shareholders (high level of insider ownership without significant selling) Targeting large unmet medical need Focused on value creation for key stakeholders The Adviser s judgment about the quality and intrinsic value of particular companies may prove to be incorrect. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/5/18 Eventide Asset Management, LLC. 31

32 Our Investment Philosophy We believe high-quality companies that excel at creating value for others and trade at a discount to intrinsic value, offer superior long-term risk-adjusted returns. We believe the best way to measure the intrinsic value of a company is with Discounted Cash Flow valuation analysis. This takes into account the magnitude, timing, and risk of future free cash flows, discounted to today based on the company s cost of capital. It also takes into account the sustainability of its competitive advantages (reflected in the fade rate) and our differentiated view from the market: A great company that we think will sustain superior returns for longer than the market anticipates. A company that we think can improve its returns more than the market expects. Market overreaction to a temporary negative. Market underreaction to a positive change. Underfollowed stocks. The Adviser's analysis may prove to be incorrect. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/5/18 Eventide Asset Management, LLC. 32