Eventide Global Dividend Opportunities Fund Presentation as of June 30, 2018

Transcription

1 Q Eventide Global Dividend Opportunities Fund Presentation as of June 30, /26/18 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: $2.8B in net assets under management There is no guarantee that the Adviser will meet its objectives. AUM as of 06/30/ /26/18 Eventide Asset Management, LLC. 2

3 Global Dividend Opportunities Fund A: ETADX C: ETCDX I: ETIDX N: ETNDX FUND OBJECTIVE Seeks to provide dividend income and long-term capital appreciation with a secondary objective of dividend growth. ABOUT THE FUND A globally diversified equity fund representing our "best ideas" approach to dividend paying stocks. BENCHMARK MSCI AC World Index MORNINGSTAR CATEGORY World Large Stock TOTAL ASSETS $11.4MM (Inception date: September 29, 2017) Under normal conditions, at least 40% of the fund s assets will be in securities of issuers domiciled in at least 3 countries outside of the United States. 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. The volatility of the index may be materially different than that of the Fund, and investors should not expect the Fund to achieve the same results as the index 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. 7/26/18 Eventide Asset Management, LLC. 3

4 Fund Distinctives A: ETADX C: ETCDX I: ETIDX N: ETNDX GLOBALLY INVESTED Invests globally across industry sectors and market capitalizations through both traditional and non-traditional equity income categories. DIVIDEND FOCUSED Seeks to invest in companies that pay attractive dividends, demonstrate the ability to grow dividends in the future, and offer long-term capital appreciation potential. 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. There is no guarantee that the Adviser's approach will produce the desired results. All investments involve risks, including the possible loss of principal. 7/26/18 Eventide Asset Management, LLC. 4

5 Portfolio Management ROLE Mr. Wildy serves as Portfolio Manager of the Eventide Multi-Asset Income Fund and the Eventide Global Dividend Opportunities Fund. Martin Wildy, CFA Portfolio Manager BACKGROUND Senior Portfolio Manager at Aris Wealth Services, co-managing Aris Income Builder and values-based allocation portfolios Equity analyst at 1620 Investment Advisors, Inc. CFA Charterholder since 2003 Active consultant for CFA Institute BS in Finance from Penn State University For informational purposes only. 7/26/18 Eventide Asset Management, LLC. 5

6 Broader Investment Team Finny Kuruvilla, MD PhD CIO David Barksdale Co-Portfolio Manager ROLE ROLE Dr. 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. 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 Senior Analyst Agustin Mohedas, PhD Research Analyst Anant Goel Research Analyst Tianxiang Chen Computational Equity Analyst Colin Delaney Director of Portfolio Operations, Product Specialist ROLE 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. Mr. Delaney serves as Director of Portfolio Operations and is a Product Specialist for the Advisory Services team at Eventide.. For informational purposes only. 7/26/18 Eventide Asset Management, LLC. 6

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

8 Investment Process IDEA GENERATION Develop a macro view of industries across global markets. Identify secular best positioned for participation. Quantitatively screen for companies with attractive metrics in desired industries. QUALITATIVE ANALYSIS Look for attractive dividend-paying companies through an assessment of competitive advantages, management teams, industry positioning, and value creation. FINANCIAL ANALYSIS Look for companies with financial strength and dividend sustainability by analyzing historical financial performance and modeling future financial performance. VALUATION ANALYSIS Measure intrinsic value. Identify equities with sustainable dividend potential that are trading at a discount to our estimate of intrinsic value. RISK MANAGEMENT Construct portfolio with goals of global diversification and low market sensitivity. MACRO POSITIONING Position portfolio based on macro views (economic indicators, valuation, and sentiment). EVENTIDE GLOBAL DIVIDEND OPPORTUNITIES FUND Our best dividend ideas. 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. 7/26/18 Eventide Asset Management, LLC. 8

9 Idea Generation START WITH THEMES, THEN IDENTIFY COMPANIES BEST POSITIONED FOR PARTICIPATION Understand the big picture of industries across asset classes. 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. 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. 7/26/18 Eventide Asset Management, LLC. 9

10 Secular Investment Themes INVEST IN THEMES POSITIONED TO MEET IMPORTANT HUMAN NEEDS 1. Renewable Power Production 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. 7/26/18 Eventide Asset Management, LLC. 10

11 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. 7/26/18 Eventide Asset Management, LLC. 11

12 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: customers, employees, suppliers, communities, the environment, and society. 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. 7/26/18 Eventide Asset Management, LLC. 12

13 Financial Analysis LOOK FOR COMPANIES WITH LONG- TERM FINANCIAL STRENGTH QUALITIES: Attractive dividend with potential for growth Revenue and Earnings growth that is consistent and repeatable Pricing power Operating Margins that are high and increasing Strong Balance Sheet Strong Free Cash Flow Analyze historical financial and dividend performance. Model future financial and dividend performance: FINANCIAL STATEMENT ANALYSIS: Income Statement Balance Sheet Cash Flow Statement MODELING FUTURE RESULTS: Earnings Power 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. 7/26/18 Eventide Asset Management, LLC. 13

14 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. 7/26/18 Eventide Asset Management, LLC. 14

15 Portfolio Construction, Risk Management CONSTRUCT PORTFOLIO, MANAGE FOR RISK Construct portfolio with goals of high internal diversification and low market correlation. Use alternative income categories to supplement traditional income paying stocks. Position portfolio using cash and other tools to allow stock selection on fundamental grounds 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 dividend 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. 7/26/18 Eventide Asset Management, LLC. 15

16 Eventide Global Dividend Opportunities Fund ACTIVELY MONITOR PORTFOLIO Portfolio represents our best ideas for dividend income, approximately 50 companies. Continuously monitor portfolio allocation and holdings, re-examining investment case. Tilt beta and regional exposure based on macro and micro views. Adjust price targets and position sizes 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. 7/26/18 Eventide Asset Management, LLC. 16

17 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. 7/26/18 Eventide Asset Management, LLC. 17

18 Composition A: ETADX C: ETCDX I: ETIDX N: ETNDX 4. Under normal conditions, at least 40% of the fund s assets will be in securities of issuers domiciled in at least 3 countries outside of the United States. Domicile percentages can change at any time and should not be considered investment advice. 5. Fund allocation percentages are subject to change at any time and should not be considered investment advice. 7/26/18 Eventide Asset Management, LLC. 18

19 Returns A: ETADX C: ETCDX I: ETIDX N: ETNDX Performance is historic 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 Global Dividend Opportunities Fund prospectus please call the fund, toll free at EVEN (3836). Eventide Global Dividend Opportunities Fund expenses: Class A, Gross Expenses 1.92%, Net Expenses 1.22%; Class C, Gross Expenses 2.67%, Net Expenses 1.97%; Class I, Gross Expenses 1.67%, Net Expenses 0.97%; Class N, Gross Expenses 1.87%, Net Expenses 1.17%. 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 will be annualized. Since inception returns assume an inception date of 9/29/ 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. The volatility of the index may be materially different than that of the fund, and investors should not expect the fund to achieve the same results as the index listed. 7/26/18 Eventide Asset Management, LLC. 19

20 Distributions A: ETADX C: ETCDX I: ETIDX N: ETNDX 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 chart displays the Eventide Global Dividend Opportunities 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. As of 6/30/2018, the distributions represented contain no return of capital. 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 distribution. 5. Source: Morningstar 7/26/18 Eventide Asset Management, LLC. 20

21 Market Risk A: ETADX C: ETCDX I: ETIDX N: ETNDX Source: 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. 6. The performance and risk factor comparisons are made 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 significant. Standard deviation of return measures the amount of variation in historical performance from period to period. 7. Since inception market risk details assume inception date of 10/01/2017 and not Class N s actual inception date of 9/29/2017, as only full month data is included in the market risk calculations. 7/26/18 Eventide Asset Management, LLC. 21

22 Morningstar Ratings A: ETADX C: ETCDX I: ETIDX N: ETNDX Sustainability Rating Top 1% in Category (305 funds) World Large Stock for April 30, 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. The Morningstar Sustainability Rating is derived from the Morningstar Sustainability Score, which is updated monthly, with a one month and 6 day lag. As of 04/30/2018, Morningstar Sustainability Score of the Eventide Global Dividend Opportunities Fund is The Morningstar Portfolio Sustainability Score TM, is calculated based on company-level ESG scores and company involvement in ESG-related controversies, using Sustainalytics ESG data. Sustainalytics provides company-level analysis used in the calculation of Morningstar s Sustainability Score. The Morningstar Sustainability Score ranges between 0 (worst) and 100 (best). A higher score indicates that a fund has, on average, more of its assets invested in companies that score well according to the Sustainalytics ESG methodology. The top 10% of products in each product category receive the 5 globe Morningstar Sustainability Rating, the next 22.5% receive 4 globes, the next 35% receive 3 globes, the next 22.5% receive 2 globes, and the bottom 10% receive 1 globe. A full explanation of the Morningstar Sustainability Rating Methodology can be found at 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 assets have the Comprehensive Research Type. Past performance or ranking is not indicative of future results. 7/26/18 Eventide Asset Management, LLC. 22

23 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. 7/26/18 Eventide Asset Management, LLC. 23

24 Distribution Team Harry Nelson, CIMA Lans Slack Richard Ranck, CIMA Jeff Cave, CIMA ROLE ROLE ROLE 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. Mr. Cave serves as the Director of Institutional Markets for Eventide. He is responsible for institutional sales and client service. Mr. Ranck serves as a Senior Portfolio Consultant for Eventide. He is responsible for external sales and distribution in the Midwest. Mr. Slack serves as a Senior Portfolio Consultant for Eventide. He is responsible for external sales and distribution in the Southeast. Fred Ge Shaun Morgan Deirdre Hess ROLE ROLE Ms. Hess serves as a Portfolio Consultant for Eventide. She is responsible for external sales and distribution in the West. Mr. Morgan serves as a Portfolio Consultant for Eventide. He is responsible for external sales and distribution in the Central region. ROLE Mr. Ge serves as a Senior Investment Associate for Eventide. He is primarily responsible for supporting Portfolio Consultants and acting as a liaison between the investment team and the distribution team. For informational purposes only. 7/26/18 Eventide Asset Management, LLC. For Financial Professionals Only. 24

25 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. 7/26/18 Eventide Asset Management, LLC. 25

26 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 can invest in Industrials and Utilities. Companies in the Industrial Sector carry various risks including, but not limited to, risk related to debt loads, intense competition, and sensitivity to economic cycles. Companies in the Utilities sector are subject to interest rate 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. 7/26/18 Eventide Asset Management, LLC. 26

27 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 7/26/18 Eventide Asset Management, LLC. 27

28 INVESTING THAT MAKES THE WORLD REJOICE 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 7/26/18 Eventide Asset Management, LLC NLD-7/26/

29 Appendix 7/26/18 Eventide Asset Management, LLC. 29

30 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. 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. 7/26/18 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 + 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. 7/26/18 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. 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. 7/26/18 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 riskadjusted 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. 7/26/18 Eventide Asset Management, LLC. 33