Eventide Multi-Asset Income Fund Presentation as of December 31, /7/18 Eventide Asset Management, LLC. 1

Transcription

1 Eventide Multi-Asset Income Fund Presentation as of December 31, /7/18 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. 2/7/18 Eventide Asset Management, LLC. 2

3 Eventide Multi-Asset Income Fund A: ETAMX C: ETCMX I: ETIMX N: ETNMX FUND OBJECTIVE Seeks to provide current income while maintaining the potential for capital appreciation. ABOUT THE FUND A diversified mutual fund representing our "best ideas" for current income, income growth, and long-term capital appreciation. Exposure to fixed-income, equity-income, and non-traditional income categories. BENCHMARK MSCI AC World Index SECONDARY BENCHMARK 60% MSCI AC World Index / 40% BarCap Aggregate Bond Index MORNINGSTAR CATEGORY LIPPER CATEGORY TOTAL ASSETS Allocation 50% to 70% Equity Flexible Portfolio $96.2MM (Inception date: July 15, 2015) The MSCI All-Country World Index is a free float adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets and consists of 46 country indexes comprising 23 developed and 23 emerging market country indexes. Blended benchmark returns represents 60% MSCI ACWI Index, 40% BarCap Aggregate Bond Index, rebalanced monthly. 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. 2/7/18 Eventide Asset Management, LLC. 3

4 Fund Distinctives A: ETAMX C: ETCMX I: ETIMX N: ETNMX A MEANINGFULLY MULTI- ASSET APPROACH TO INCOME Wide opportunity set and up to 40% of net assets allocated to non-traditional income sources. TACTICALLY ALLOCATING TO ASSET CLASSES FAVORED IN THE FORWARD ENVIRONMENT Significant flexibility to allocate tactically across asset classes based on the portfolio manager s views of yield opportunities and risks in today s markets. CREATING A BETTER WORLD Focused on identifying and investing in companies capable of sustaining profitability and growth by serving well the needs of customers, employees, suppliers, communities, the environment, and society broadly. The portfolio manager's views may prove to be incorrect. There is no guarantee that the Adviser's approach will produce the desired results. All investments involve risks, including the possible loss of principal. 2/7/18 Eventide Asset Management, LLC. 4

5 A Meaningfully Multi-Asset Approach to Income Eventide believes that in a yield-constrained world investors need to take advantage of a broader income opportunity set. TRADITIONAL EQUITY INCOME 20-60% TYPICAL RANGE TRADITIONAL FIXED INCOME 20-50% TYPICAL RANGE NON- TRADITIONAL INCOME 10-40% TYPICAL RANGE U.S. Equities (all cap) Foreign Equities (incl. EM) 10-40% 10-30% Cash & Equivalents 0-30% Agency / Mortgage-Backed Securities 0-20% Taxable Municipal Bonds 0-20% Green Bonds 0-40% Corporate Bonds 0-30% Convertible Bonds 0-10% High Yield Corp Bonds 0-15% Each of these asset classes has its own set of investment characteristics and risks and investors should consider these risks carefully prior to making any investments. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. Preferred Stock REITs MLPs / YieldCos Covered Call Options Cash-Secured Put Options Private Investments Catastrophe Bonds / Reinsurance BDCs Bank Loans 0-15% 0-20% 0-20% 0-10% 0-10% 0-15% 0-5% 0-5% 0-5% 2/7/18 Eventide Asset Management, LLC. 5

6 Tactically Allocating to Favored Asset Classes The Multi-Asset Income Fund maintains significant flexibility to allocate tactically across asset classes based on the portfolio manager s views of yield opportunities and risks in today s markets. Portfolio Positioning Is Flexible and Reflects PM Macro Views Asset Class Cash & Equivalents Investment Grade Bonds High Yield Bonds Catastrophe Bonds / Reinsurance Preferred Stocks Convertible Securities U.S. Equities Foreign Equities REITs MLPs YieldCos Option Income Private Placements Typical Range 0 15% 15 40% 0 15% 0 5% 0 15% 0 10% 10 40% 10 30% 0 20% 0 20% 0 20% 0 20% 0 15% Current Views Neutral dry powder appealing and yields increasing Cautious low yields, not much cushion against rate risk Cautious spreads don t offer much cushion against rate risk Favorable demand will increase following 2017 claims Neutral finding value in certain structures and issues Neutral opportunity to find value where equity has lagged Cautious above average valuations across many sectors Neutral valuations now less compelling, but attractive vs. U.S. Neutral recent decline has created some value Favorable attractive valuations, should provide inflation hedge Favorable valuations reasonable, focus on dividend growth names Neutral VIX is low but rising, increasing value of premiums Neutral continue to review private impact bond, real estate deals Each of these asset classes has its own set of investment characteristics and risks and investors should consider these risks carefully prior to making any investments. There is no guarantee that the Adviser's approach will produce the desired results. All investments involve risks, including the possible loss of principal. 2/7/18 Eventide Asset Management, LLC. 6

7 Creating a Better World The Eventide Multi-Asset Income Fund incorporates Eventide s Business 360 framework to analyze companies across six key stakeholders often ignored by traditional finance. WE BELIEVE WHAT S RIGHT The goal of Business 360 analysis is to identify companies that excel at creating value for others. IS ALSO SMART We believe those companies are thereby capable of sustained profitability and growth over time. 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. 2/7/18 Eventide Asset Management, LLC. 7

8 Investment Team Martin Wildy, CFA Portfolio Manager ROLE Mr. Wildy serves as Portfolio Manager for the Eventide Multi- Asset Income Fund and the Eventide Global Dividend Opportunities Fund. David Dirk, CFA Boyd Watterson Portfolio Manager Colin Delaney Director of Portfolio Operations, Product Specialist ROLE Mr. Dirk serves as Portfolio Manager for the Fixed Income Sub-Adviser. He is responsible for the strategy and day-to-day investment decisionmaking responsibilities within assigned fixed income allocation. 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. 2/7/18 Eventide Asset Management, LLC. 8

9 Broader Investment Team Finny Kuruvilla, MD PhD David Barksdale CIO Co-Portfolio Manager ROLE 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. Mr. Barksdale serves as Co-Portfolio Manager on the Eventide Gilead Fund and is responsible for developing and applying novel analytical tools and strategies in support of Eventide s portfolio management. Andy Singer, CFA Agustin Mohedas, PhD Anant Goel Tianxiang Chen Senior Analyst Research Analyst Research Analyst Computational Equity Analyst ROLE ROLE ROLE ROLE Mr. Singer is responsible for making investment recommendations and monitoring existing portfolio investments by conducting fundamental, financial, and valuation analyses. Dr. Mohedas is primarily responsible for evaluating and monitoring new and existing healthcare investment opportunities in the portfolios. Mr. Goel is primarily responsible for evaluating and monitoring new and existing investment opportunities in the portfolios. Mr. Chen provides quantitative portfolio analysis, investment strategies implementation, and top down equity research. For informational purposes only. 2/7/18 Eventide Asset Management, LLC. 9

10 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. 2/7/18 Eventide Asset Management, LLC. 10

11 Investment Process IDEA GENERATION Develop a macro view of income asset classes and sectors. Identify industries best positioned for participation. Quantitatively screen for companies with attractive metrics in desired industries. QUALITATIVE ANALYSIS Seek attractive income producing companies through an assessment of competitive advantages, management teams, industry positioning, and value creation. FINANCIAL ANALYSIS Look for companies with financial strength and income sustainability by analyzing historical financial performance and modeling future financial performance. VALUATION ANALYSIS Measure intrinsic value. Identify securities with sustainable income potential that are trading at a discount to our estimate of intrinsic value. RISK MANAGEMENT Construct portfolio with goals of diversification across asset classes and low market sensitivity. MACRO POSITIONING Position portfolio based on macro views (economic indicators, valuation, and sentiment). EVENTIDE MULTI- ASSET INCOME FUND Our best ideas for income. Continue to monitor investment case. Adjust position size and price targets to reflect changes in 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. 2/7/18 Eventide Asset Management, LLC. 11

12 Idea Generation START WITH THEMES, THEN IDENTIFY COMPANIES BEST POSITIONED FOR PARTICIPATION Understand the big picture of income asset classes and sectors. Discern attractive long-term secular investment themes. Leverage consultants, industry experts, Key Opinion Leaders. Review industry specific reports, trends, and third party research. Use quantitative screening to identify attractively valued companies. Study competitors, suppliers, and customers of existing holdings. Identify companies best positioned for participation. The Adviser's judgment about industries, 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. 2/7/18 Eventide Asset Management, LLC. 12

13 Secular Investment Themes INVEST IN THEMES POSITIONED TO MEET IMPORTANT HUMAN NEEDS 1. Renewable Energy 2. Global Infrastructure 3. Clean Buildings 4. Ethical Lending 5. Energy Availability 6. Energy Efficiency 7. Industrial Automation 8. Transportation (including Automotive) 9. Re-Insurance The Adviser's judgment about industries, 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. 2/7/18 Eventide Asset Management, LLC. 13

14 Qualitative Analysis LOOK FOR HIGH- QUALITY COMPANIES Sustainable competitive advantages SUSTAINABLE COMPETITIVE ADVANTAGES GREAT MANAGEMENT TEAMS Great management teams Attractive industries Creating compelling value + Proprietary assets + Innovation/new product development + Culture/business model + Customer relationships + Economies of scale Focused on long-term value creation from pursuing the right strategies and from capital allocation Clearly communicate their strategy Get employees to implement strategy Are properly incentivized ATTRACTIVE INDUSTRIES CREATING COMPELLING VALUE SOURCES: Publicly available sources (10Ks, 10Qs, earnings reports, press releases, conference calls, proxies) Publicly available industry sources (industry organizations, government data, market research firms) Meetings with company management Independent research (expert networks; talking with competitors, stakeholders, and industry observers) Porter s 5 Forces 1. Competitors are disciplined/rational 2. There are high barriers to entry 3. Bargaining power with suppliers 4. Bargaining power with customers 5. Low threat of substitutes or from disruptive innovation Products/services serve society and authentic human flourishing Focused on stakeholder value creation Human-centered operations strategies Rich organizational culture 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. 2/7/18 Eventide Asset Management, LLC. 14

15 Financial Analysis LOOK FOR COMPANIES WITH LONG- TERM FINANCIAL STRENGTH QUALITIES: Attractive income generating characteristics Revenue and Earnings growth that is consistent and repeatable Stable business model Operating Margins that are stable or increasing Strong Balance Sheet Positive Free Cash Flow Analyze historical financial results and distribution policy. Model future financial results and distribution potential: FINANCIAL STATEMENT ANALYSIS: Income Statement Balance Sheet Cash Flow Statement MODELING FUTURE RESULTS: Income Distribution potential Distribution Coverage Free Cash Flow Compare our estimates with 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. 2/7/18 Eventide Asset Management, LLC. 15

16 Valuation Analysis LOOK FOR SECURITES WITH SUSTAINABLE INCOME 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. Identify securities with sustainable income potential that are trading at a discount to our estimate of intrinsic value. 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. 2/7/18 Eventide Asset Management, LLC. 16

17 Portfolio Construction, Risk Management CONSTRUCT PORTFOLIO, MANAGE FOR RISK Construct portfolio with goals of diversification across asset classes and diversification by income source while maintaining low correlation to broad equity and bond markets. Use alternative income categories to supplement traditional income paying stocks. Position portfolio using cash and other tools to allow security selection to mesh with our macro views at the portfolio level. Establish macro views through synthesis of three data streams: economic indicators, valuation metrics (including relative yield), and sentiment indicators FOR FINANCIAL PROFESSIONALS: Full presentation of macro views and playbook on Eventide PM Calls. To be included in Eventide PM Call invitations, or for access to the archive of past Calls, please us at There is no guarantee that the Adviser's approach will produce the desired results. All investments involve risk, including the possible loss of principal. 2/7/18 Eventide Asset Management, LLC. 17

18 Eventide Multi-Asset Income Fund ACTIVELY MONITOR PORTFOLIO Portfolio represents our best ideas for income Continuously monitor portfolio allocation and holdings, re-examining investment case. Tilt beta and asset class exposure based on macro and micro views. Adjust position size, estimates, and price targets to reflect changes in fundamentals. There is no guarantee that the Adviser's approach will produce the desired results. All investments involve risk, including the possible loss of principal. 2/7/18 Eventide Asset Management, LLC. 18

19 Sell Discipline CONTINUOUSLY SCRUTINIZE INVESTMENT CASE Investment thesis failure. No longer meets Eventide s Business 360 criteria. Price target achieved More attractive use of capital elsewhere. Changes in outlook for income stability For informational purposes only. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 2/7/18 Eventide Asset Management, LLC. 19

20 Composition A: ETAMX C: ETCMX I: ETIMX N: ETNMX 4. Fund allocation percentages are subject to change at any time, and should not be considered investment advice. 2/7/18 Eventide Asset Management, LLC. 20

21 Return A: ETAMX C: ETCMX I: ETIMX N: ETNMX 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 Multi-Asset Income Fund prospectus please call the fund toll free at EVEN (3836). Eventide Multi-Asset Income Fund expenses: Class A, Gross Expenses 1.73%, Net Expenses 1.51%; Class C, Gross Expenses 2.48%, Net Expenses 2.26%; Class I, Gross Expenses 1.48%, Net Expenses 1.26%; Class N, Gross Expenses 1.68%, Net Expenses 1.46%. The Advisor has contractually agreed to waive fees and/or reimburse expenses of the Fund through 31 October The agreement may only be terminated by the Fund's Board of Trustees on 60 days written notice. 2. The numbers 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. 6. Performance figures for periods greater than 1 year are annualized. Annualized since inception returns assume an inception date of July 15, The Multi-Asset Income Blend is a proprietary Eventide benchmark based on 60% MSCI All Country World Index (Net), 40% Barcap Aggregate Bond Index at inception, rebalanced monthly. The MSCI World All-Country World Index (Net) captures large and mid cap representation across 23 developed markets and 23 emerging markets. 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. 2/7/18 Eventide Asset Management, LLC. 21

22 Distributions A: ETAMX C: ETCMX I: ETIMX N: ETNMX 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 Multi-Asset Income Fund prospectus please call the fund toll free at EVEN (3836). 2. The numbers 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. 3. The table displays the Eventide Multi-Asset Income Fund Class N s dividend and capital gains distributions for the periods shown. The distributions will differ for other fund classes, based upon fees and commissions. The total distribution may represent dividend and interest income, capital gains, and/or return of capital. Shareholders should not assume that the source of a distribution from the fund is net profit. The characterization of income is an estimate only and subject to change for tax purposes. 4. NAV presented is as of the date of the respective quarter end. 5. Source: Morningstar, Inc. 2/7/18 Eventide Asset Management, LLC. 22

23 Market Risk A: ETAMX C: ETCMX I: ETIMX N: ETNMX 5. 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 riskadjusted 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 significant. Standard Deviation of return measures the amount of variation in historical performance from period to period. 6. Since inception market risk details assume inception date of 1 August 2015 and not Class N s actual inception date of 15 July 2015, as only full month data is included in the market risk calculations. 2/7/18 Eventide Asset Management, LLC. 23

24 Morningstar Ratings A: ETAMX C: ETCMX I: ETIMX N: ETNMX Top 73% 1yr returns (810 funds) Sustainability Rating Top 2% in Category (171 funds) Allocation 50% to 70% Equity for November 30, 2017 Percentile Ranking Allocation--50% to 70% Equity 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. Morningstar is an independent provider of financial information. Rankings pertain to Eventide Multi-Asset Income 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. Past performance or ranking is not indicative of future results. 2/7/18 Eventide Asset Management, LLC. 24

25 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. 2/7/18 Eventide Asset Management, LLC. 25

26 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. 2/7/18 Eventide Asset Management, LLC. 26

27 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. 2/7/18 Eventide Asset Management, LLC. 27

28 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. 2/7/18 Eventide Asset Management, LLC. 28

29 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 2/7/18 Eventide Asset Management, LLC. 29

30 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 2/7/18 Eventide Asset Management, LLC NLD-2/7/

31 Appendix 2/7/18 Eventide Asset Management, LLC. 31

32 Investment Team Bios Martin Wildy, CFA Portfolio Manager Mr. Wildy serves as lead portfolio manager for the Eventide Multi-Asset Income Fund and the Global Dividend Opportunities Fund. Prior to joining Eventide in 2015, Mr. Wildy was a Senior Portfolio Manager with Aris Wealth Services, a division of AssetMark, Inc. where he worked since September Mr. Wildy served on Aris s Investment Committee and was responsible for investment decisions that impacted a number of the firm s investment strategies, including Aris Income Builder and values-based portfolios. In his role, Mr. Wildy s responsibilities included developing capital market assumptions, asset allocation decisions, investment due diligence, and portfolio management Previously, Mr. Wildy was an equity analyst at 1620 Investment Advisors, Inc. where he was responsible for equity research and recommendations primarily within the telecommunication, technology, and regional banking sectors. Mr. Wildy holds a bachelor s degree from the Pennsylvania State University in Finance and has held the Chartered Financial Analyst (CFA) designation since In addition to his role at Eventide, Mr. Wildy is an active volunteer and consultant with the CFA Institute supporting the CFA examination process as well as the CFA Digest publication. David Dirk, CFA Portfolio Manager for Boyd Watterson, Fixed Income Sub-Adviser for the Eventide Multi-Asset Income Fund David Dirk is co-director of Fixed Income for Boyd Watterson with responsibility for directing all Portfolio Management and Trading activity. This includes the implementation, execution and evaluation of all strategies across Boyd Watterson's suite of fixed income products. Mr. Dirk joined Duff & Phelps, predecessor to Boyd Watterson Asset Management, in David holds a CFA Charter from CFA Institute, an MBA from Case Western Reserve University, and a BA from Baldwin-Wallace College. He is also a member of the CFA Society of Cleveland and CFA Institute. David has 18 years of industry experience. 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. 2/7/18 Eventide Asset Management, LLC. 32

33 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 + Proprietary assets + Innovation/new product development + Culture/business model + Customer relationships + Economies of scale GREAT MANAGEMENT TEAMS Focused on long-term value creation from pursuing the right strategies and from capital allocation Clearly communicate their strategy Get employees to implement strategy Are properly incentivized ATTRACTIVE INDUSTRIES CREATING COMPELLING VALUE Porter s 5 Forces 1. Competitors are disciplined/rational 2. There are high barriers to entry 3. Bargaining power with suppliers 4. Bargaining power with customers 5. Low threat of substitutes or from disruptive innovation Products/services serve society and authentic human flourishing Focused on stakeholder value creation Human-centered operations strategies Rich organizational culture 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. 2/7/18 Eventide Asset Management, LLC. 33

34 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 + Proprietary assets + Innovation/new product development + Culture/business model + Customer relationships + Economies of scale GREAT MANAGEMENT TEAMS Focused on long-term value creation from pursuing the right strategies and from capital allocation Clearly communicate their strategy Get employees to implement strategy Are properly incentivized ATTRACTIVE INDUSTRIES CREATING COMPELLING VALUE Porter s 5 Forces 1. Competitors are disciplined/rational 2. There are high barriers to entry 3. Bargaining power with suppliers 4. Bargaining power with customers 5. Low threat of substitutes or from disruptive innovation Products/services serve society and authentic human flourishing Focused on stakeholder value creation Human-centered operations strategies Rich organizational culture 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. 2/7/18 Eventide Asset Management, LLC. 34

35 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. 2/7/18 Eventide Asset Management, LLC. 35