MANAGED FUTURES PROVE ADVANTAGEOUS IN A VOLATILE 2015

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1 MANAGED FUTURES PROVE ADVANTAGEOUS IN A VOLATILE 2015 Long-term trend following may smooth out the new year In 2015, the financial markets challenged even the most seasoned investors with increased volatility and unpredictability. Global deflation accelerated, resulting in the worst 3-year performance in commodities since the 1970s (according to the Goldman Sachs Commodity Index). STOCKS vs. MANAGED FUTURES 2015 ANNUAL RETURNS 8.91% These falling commodity prices exerted ripple effects across global markets, from high-yield bonds to emerging market currencies to U.S. stocks which had their worst year since Despite this difficult environment, many investors benefited from simply sticking with long-term trends. The same deflationary environment that sparked volatility for traditional asset classes enabled managed futures strategies to maintain uncorrelated returns in Specifically, declining energy and metals prices pressured foreign currencies against the U.S. dollar, boosted government bond prices and contributed to weakness in equities. Early in the year, trend followers made gains from uptrends in European and Chinese stocks and downtrends in commodities and commoditycurrencies. However, many funds relinquished these early year profits as trends reversed in the summer. 1.38% S&P 500 TR LONGBOARD MANAGED FUTURES STRATEGY FUND The indices shown are for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Past performance is no guarantee of future results. For strategies with significant commodities exposure, including the Longboard Managed Futures Strategy Fund, long-term downtrends resumed and generated significant outperformance into the close of 2015.

2 Remarkably, Longboard s Managed Futures Strategy Fund saw an 8.91% gain in This brought the fund s 3-year annualized net return to +9.02%. Some of our winning trades this year included short positions across the commodities complex and long positions in the U.S. dollar and global government bonds. Our long-term trend following strategy helped financial advisors add uncorrelated returns to their portfolios during a year when many other investments delivered low returns with high correlation OUTLOOK: AN UNPREDICTABLE YEAR AHEAD Commodities, corporate earnings and central banks will likely take center stage in High- yield credit markets and export-dependent economies will likely need a rebound in commodities soon to avoid significantly more financial distress. The upcoming earnings season will determine whether U.S. corporations can break their previous trend of slowing corporate revenues and earnings. Against the current backdrop of deflation, a slowing industrial economy and declining corporate profitability, investors in traditional asset classes may face another year of volatility and uncertainty. In this environment, we believe that globally diversified trend following strategies will continue to provide the opportunity for uncorrelated diversification that may offset volatility in traditional asset classes. LONGBOARD MANAGED FUTURES STRATEGY FUND (WAVIX) 2015 PERFORMANCE AT A GLANCE: +8.91% in % three-year annualized net return +$407.6 million AUM *all data as of 12/31/15 The Longboard Managed Futures Strategy Fund WAVIX received 4 stars from Morningstar out of 105 Managed Futures funds for the 3-year period ending based on risk-adjusted returns. CONTRIBUTORS EQUITIES: short emerging markets, and long European and Japanese Equities COMMODITIES: short natural gas, crude oil and copper DETRACTORS EQUITIES: short U.S. equities - + COMMODITIES: short cotton and long frozen concentrated orange juice CURRENCIES: short Brazilian real and Canadian dollar against the U.S. dollar FIXED INCOME: long German government bonds CURRENCIES: short Swiss franc against the U.S. dollar FIXED INCOME: long Australian government bonds Morningstar is an independent provider of financial information. Morningstar performance rankings are based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variation and rewarding consistent performance. The top 10%, the next 22.5%, 35%, 22.5% and bottom 10% receive 5, 4, 3, 2 or 1 star, respectively. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.

3 LONGBOARD vs. MANAGED FUTURES INDEX 2015 ANNUAL RETURNS 8.91% VISIT OUR WEBSITE TO LEARN MORE ABOUT OUR INVESTMENT STRATEGY 0.04% The index is shown for informational purposes only and is not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Past performance is no guarantee of future results. SG TREND INDEX LONGBOARD UNCORRELATED RETURNS SOFTENED VOLATILITY IN 2015 Here s how Longboard s Managed Futures Strategy Fund achieved an 8.91% gain in 2015 and a summary of our current positions at the start of CHINA S ROUGH SUMMER CHANGED EQUITIES Global equities started the year off strong, led by healthy gains in Europe and a parabolic rise in Chinese stocks. Things quickly changed this summer when China s Shanghai Composite lost a third of its value in less than a month. This volatility rippled around the globe, culminating in August s mini-flash crash that saw U.S. stocks plunge 10% in just three days. U.S. stock indices ultimately rebounded to end nearly flat on the year, but gains were concentrated in a small collection of large-cap growth stocks. Our managed futures fund entered 2015 with moderate long exposure to equities. This exposure grew as uptrends progressed in the U.S., Europe and Asia. When volatility struck this summer, we reduced exposure and transitioned from net long to net short. Heading into 2016, the fund remains net short in Asian, Canadian, emerging markets, and European stock indices.

4 FIXED INCOME CONTINUED TO UNDERWHELM Despite the first U.S. rate hike in nearly a decade, U.S. treasuries remained supported in Monetary easing in Europe and Japan boosted prices in their respective government bond markets and possibly provided indirect support to higher-yielding U.S. treasuries. Despite modest gains in European and U.S. fixed income markets, volatility increased throughout the year. During the August stock market correction, bonds failed to provide their traditional role of a safe haven and instead sold off alongside stocks. Our managed futures fund entered 2015 with significant fixed income exposure in response to broad-based uptrends in U.S., European and Japanese government bonds. As the year progressed, we pared back exposure as fixed income markets became more volatile, and exited long positions in U.S. treasuries. The fund currently maintains its lowest exposure to fixed income since inception, with modest long exposure concentrated in European and Japanese government bonds. PLUNGING PRICES, SHIFTING CURRENCIES The rapidly appreciating U.S. dollar stole headlines early in the year, with many calling for parity against the Euro by year s end. The U.S. dollar s ascent against the euro and yen slowed as the U.S. Central Bank continuously pared back its projected path of rate hikes. Plunging commodity prices helped fuel significant gains in the U.S. dollar against the currencies of emerging market and export-dependent economies. The U.S. dollar finished 2015 at near record highs against the Canadian dollar, Russian ruble and Brazilian real. Our managed futures fund entered 2015 with elevated long exposure in the U.S. dollar against most major currencies. However, mid-year reversals in the euro and yen caused us to pare back or exit short positions in those currencies. Going into 2016, the fund remains short the currencies of emerging markets and commodity-exporting countries, including Russia, Brazil, Canada and Australia. COMMODITIES CRUMBLED The commodities rout accelerated throughout 2015, as every category in the Goldman Sachs Commodity Index experienced double-digit declines for the year. The plunging prices of metals, energy and agricultural products exerted ripple effects across the globe, in both emerging and developed economies. Energy Master Limited Partnerships (MLPs) and high-yield bonds that enticed hundreds of billions in capital with attractive yields revealed the unsustainability of their dividends and debt burdens in the current low price environment. Short positions across the commodities complex provided the bulk of our managed futures fund s gains in As positions moved in the fund s favor, we grew our exposure to commodities during the year. Heading into 2016, the fund remains positioned for further deflation, with 34 short positions against 6 long positions.

5 PERFORMANCE as of 12/31/15 Class I (NAV)* Class A (NAV)** Class A (Max Load)** TICKER WAVIX WAVEX WAVEX 1M -1.24% -1.22% -6.92% 3M -2.39% -2.46% -8.09% 1Y 8.91% 8.63% 2.37% 2Y 11.84% 11.57% 8.30% 3Y 9.02% N/A N/A SINCE INCEPTION TO 12/31/ % 7.69% 5.41% *INCEPTION DATE: 6/27/12 **INCEPTION DATE: 3/22/13 The Total Annual Fund Operating Expenses for the Longboard Managed Futures Strategy Fund class A and I are 3.24% and 2.99%, respectively. The maximum sales charge for Class A (Max Load) shares is 5.75%. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. For performance information current to the most recent month-end, please call toll-free or visit our website, There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. CONTACT AN ALTERNATIVES EXPERT TODAY AT

6 DISCLOSURES There is a risk of substantial loss associated with trading commodities, futures, options, derivatives and other financial instruments. Before trading, investors should carefully consider their financial position and risk tolerance to determine if the proposed trading style is appropriate. Investors should realize that when trading futures, commodities,options, derivatives and other financial instruments they could lose the full balance of their account. It is also possible to lose more than the initial deposit when trading derivatives or using leverage. All funds committed to such a trading strategy should be purely risk capital. Past performance is not an indication of future performance. The information set forth herein has been obtained or derived from sources believed by Longboard Asset Management to be reliable. However, Longboard does not make any representation or warranty, express or implied, as to the information s accuracy or completeness, nor does Longboard recommend that the attached information serve as the basis of any investment decision. Longboard hereby disclaims any duty to provide any updates or changes to the analysis contained in this document. Market analysis, returns, estimates and similar information, including statements of opinion/ belief contained herein are subject to a number of assumptions and inherent uncertainties. There can be no assurance that targets, projects or estimates of future performance will be realized. Index performance in this document was sourced from third-party sources deemed to be accurate, but is not guaranteed. All index performance is gross of fees and would be lower if presented net of fees. Investors cannot invest directly in the indices referenced in this document. S&P 500 TR Index: A stock market index based on the market capitalizations of 500 leading companies publicly traded in the U.S. stock market, as determined by Standard & Poor s. In this presentation, the S&P 500 is presented as a total return index, which reflects the effects of dividend reinvestment. SG Trend Index: A leading benchmark for tracking the performance of a pool of the largest managed futures trend following based hedge fund managers that are open to new investment. The SG Trend Index is equal-weighted and reconstituted annually. The SG Trend Index was previously the Newedge Trend Index, prior to the name change on 1/1/2016. Morningstar: Morningstar is an independent provider of financial information. Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10%, the next 22.5%, 35%, 22.5%, and bottom 10% receive 5, 4, 3, 2, or 1 star, respectively. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and tenyear (if applicable) Morningstar Rating metrics. Diversification does not eliminate the risk of experiencing investment losses.

7 MUTUAL FUND RISK DISCLOSURE Mutual funds involve risk including possible loss of principal. There is a risk that issuers and counterparties will not make payment on securities and other investments held by the Fund, resulting in loss. The Fund s use of derivatives (including futures, forward contracts and swap agreements) involves risks different from and possibly greater than those associated with investing directly in securities including leverage risk, counterparty default risk, tracking risk and liquidity. The price of equity security fluctuates based on changes in a company s financial condition and overall market and economic conditions. Investments in ETFs may involve extra expenses and may not perform as expected and may not replicate the performance of the underlying index. Fixed income securities could lose value due to interest rate changes. ADR s are subject to fluctuations in foreign currencies, political and economic instability, differences in financial reporting, security regulation, trading and taxation issues. The successful use of forward and futures contracts draws on the Adviser s skill and experience in predicting market movement. Risks include imperfect correlation, illiquid secondary markets, unanticipated market movements, counterparty default and potentially selling securities when disadvantageous to do so. The success of the Fund s hedging strategy is subject to the Adviser s ability to correctly assess market performance and correlation of the instruments used in the hedging strategy and the investments in the portfolio. changes in consumer tastes. Small cap and mid-cap companies may be volatile and vulnerable to adverse business or economic events. The Fund is non-diversified and changes in the value of a single security may have a significant effect on the Fund s value. The Fund may have investments that appreciate or decrease significantly over short periods. The value of REIT securities may be adversely affected by changes in the value of the underlying property the REIT holds. Short positions may be considered speculative and losses are potentially unlimited. PROSPECTUS OFFERING DISCLOSURE Investors should carefully consider the investment objectives, risks, charges and expenses of the Longboard Managed Futures Strategy Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling The prospectus should be read carefully before investing. The Longboard Managed Futures Strategy Fund is distributed by Northern Lights Distributors, LLC, a FINRA/SIPC member. Longboard Asset Management, LLC, is not affiliated with Northern Lights Distributors, LLC NLD-1/15/2016 The Fund may trade more, incurring higher brokerage fees and tax liability to shareholders. The Fund has a limited history of operation and an investment entails a high degree of risk. Large cap companies may be unable to respond quickly to new competitive challenges such as