Eventide Multi-Asset Income Fund

Transcription

1 Eventide Multi-Asset Income Fund Presentation June 30, /18/17 Eventide Asset Management, LLC. 1

2 Eventide Funds: At A Glance Founded in 2008 Headquartered in Boston, MA Vision: to offer high performance values-based asset management to individuals, financial advisors, and institutions. Mutual funds: Eventide Gilead Fund Eventide Healthcare & Life Sciences Fund Eventide Multi-Asset Income Fund $1.81B in net assets under management 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. 8/18/17 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 MORNINGSTAR CATEGORY World Allocation SECONDARY BENCHMARK 60% MSCI AC World Index / 40% BarCap Aggregate Bond Index LIPPER CATEGORY Flexible Portfolio TOTAL ASSETS $80.5MM (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 any investment will achieve its objectives, generate positive returns, or avoid losses. Past performance is not assurance of future results. 8/18/17 Eventide Asset Management, LLC. 3

4 Investment Team Martin Wildy, CFA Portfolio Manager ROLE Mr. Wildy serves as Portfolio Manager for the Eventide Multi- Asset Income Fund. David Dirk, CFA Boyd Watterson Portfolio Manager Colin Delaney Director of Portfolio Operations, Product Specialist David Barksdale Co-Portfolio Manager ROLE Mr. Dirk serves as Portfolio Manager for the Fixed Income Sub-Adviser and is responsible for the strategy and day-to-day investment decision-making 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. 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. 8/18/17 Eventide Asset Management, LLC. 4

5 Our Investment Philosophy We believe high-quality companies, where we have a differentiated view from the market, and that trade at a discount to intrinsic value, offer superior long-term riskadjusted returns. 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. 8/18/17 Eventide Asset Management, LLC. 5

6 Eventide Multi-Asset Income Fund Distinctives 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. VALUES- FOCUSED, VALUE ADDING Incorporates Eventide s Business 360 framework to find companies that are both attractive for current income generation and truly admirable. 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. 8/18/17 Eventide Asset Management, LLC. 6

7 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% 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% 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. 8/18/17 Eventide Asset Management, LLC. 7

8 Tactically Allocating to Asset Classes Favored in the Forward Environment 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 Cat Bonds / Reinsurance Preferred Stocks U.S. Equities Foreign Equities REITs MLPs / YieldCos Option Income Private Placements Typical Range 0 15% 15 40% 0 15% 0 5% 0 15% 10 40% 10 30% 0 20% 0 20% 0 20% 0 15% Current Views Neutral dry powder appealing but yields remain low Cautious low yields, rising rate risk remains Cautious spreads are at historically tight levels Cautious premiums have declined given low claim levels Neutral opportunities to find value in some structures Cautious above average valuations in many sectors Favorable reasonable valuations, improving fundamentals Cautious real estate prices vulnerable to rising cap rates Favorable attractive value on contracted infrastructure assets Neutral call and put premiums are lower given low volatility Neutral reviewing opportunities particularly in impact bonds All investments involve risks, including possible loss of principal. 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. 8/18/17 Eventide Asset Management, LLC. 8

9 Values-Focused, Value Adding The Eventide Multi-Asset Income Fund incorporates Eventide s Business 360 framework to analyze companies across six key stakeholders often ignored by traditional finance. VALUES- FOCUSED The goal of the Business 360 analysis is to identify companies that excel at creating compelling value for others VALUE ADDING and thereby capable of sustained profitability and growth over time. 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. 8/18/17 Eventide Asset Management, LLC. 9

10 Composition 5. Fund allocation percentages are subject to change at any time, and should not be considered investment advice. Included in the Cash/Other sections is a derivatives exposure of (0.0297) % representing short call positions (covered calls) and short put positions (cash secured puts). 8/18/17 Eventide Asset Management, LLC. 10

11 Return 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 Multi-Asset Income Fund prospectus please call the fund, toll free at EVEN (3836). Eventide Multi-Asset Income Fund Benchmarks 1 Year Inception Class N 10.29% 7.67% Class A without load 10.23% 7.62% Class A with 5.75% load 1.76% 4.41% Multi-Asset Income Blend % 5.11% MSCI World (Net) % 6.36% Eventide Multi-Asset Income Fund expenses: Class A, Gross Expenses 2.46%, Net Expenses 1.53%; Class C, Gross Expenses 3.14%, Net Expenses 2.28%; Class I, Gross Expenses 2.14%, Net Expenses 1.28%; Class N, Gross Expenses 2.39%, Net Expenses 1.48%. The Advisor has contractually agreed to waive fees and/or reimburse expenses of the Fund through 31 March The agreement may only be terminated by the Fund's Board of Trustees on 60 days written notice. Performance figures for periods greater than 1 year are annualized. Annualized since inception returns assume an inception date of 15 July 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 compares the Eventide Multi-Asset Income Fund Class N's growth to index growth since inception, and assumes the Fund's inception date of 15 July 2015 for the indices. Growth will differ for other fund classes, based upon fees and commissions. 4. 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. Neither are investment products. 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. 8/18/17 Eventide Asset Management, LLC. 11

12 Distributions 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. 5. The chart 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. 8/18/17 Eventide Asset Management, LLC. 12

13 Market Risk 6. 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. Previously, 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 com- pares 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 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. 8/18/17 Eventide Asset Management, LLC. 13

14 Contact For Fund platform availability inquiries or to initiate a sales agreement, please contact Harry Nelson at hnelson@eventidefunds.com or , x53. To speak with a sales agent of the Fund, please contact Jeffrey Cave at jcave@eventidefunds.com or , x57. For Fund literature or prospectus, please contact info@eventidefunds.com. 8/18/17 Eventide Asset Management, LLC. 14

15 Important Information Mutual Funds involve risk including the possible loss of principal. 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. Because of ongoing market volatility, the Funds performance may be subject to substantial short-term changes. 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, thus subject 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 becoming obsolete, and entrance of competing products. 8/18/17 Eventide Asset Management, LLC. 15

16 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. Longer-term securities may be more sensitive to changes in interest rates. The intermediate-term bond portion of the 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, MLPs, preferred stocks, convertible bonds, BDCs, and yieldcos that are covered in the Fund's prospectus and SAI. The Fund is a new mutual fund and has a limited history of operations for investors to evaluate. 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. 8/18/17 Eventide Asset Management, LLC. 16

17 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 8/18/17 Eventide Asset Management, LLC NLD-8/17/

18 Appendix 8/18/17 Eventide Asset Management, LLC. 18

19 Investment Team Bios Martin Wildy, CFA Portfolio Manager Martin Wildy, CFA, serves as Portfolio Manager of Eventide s Multi-Asset Income 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 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. 8/18/17 Eventide Asset Management, LLC. 19