RATIONAL IRON HORSE FUND

RATIONAL IRON HORSE FUND IRHAX IRHCX IRHIX A brief overview of covered calls and how to use the strategy in client portfolios For Use with Institutions Only, Not for Use with Retail Investors... Rational Advisors 36 North New York Avenue Huntington, NY 11743 Website: www.rationalmf.com Shareholder Services: 1 (800) 253-0412 Advisor Services: (646) 757-8063

Overview of Covered Calls Overview of Covered Calls A covered call is an options strategy whereby an investor holds a long position in an asset ( i.e. General Electric GE ) and writes (sells) call optionsonthatsameassetinanattempttogenerateincreasedincome from the asset. A covered call is also known as a "buy-write". An investor who buys or owns stock and writes call options in the equivalent amount can potentially earn income without taking on additional risk. The premium received is income to the investor, received up front and deposited into the investor s cash account. It also may offer some downside cushion in the event the stock slides downward and has the potential to boost returns on the upside. Key Traits of Covered Calls Potentially, the primary advantage of a covered call strategy is to earn premium income, which may have the effect of boosting overall returns on the stock and seeking a measure of downside protection. The covered call writer is looking for a steady or slightly rising stock price for at least the duration of the option. What a covered call position does is exchange unknown price appreciation potential for a known income component (option premium). The best candidates for covered calls are stocks that the portfolio managers are willing to sell if the stock rises and the calls are assigned. That would mean that the optimum total return has been achieved over a certain time period. This passage of time (time decay) has a positive impact on this strategy, all other things being equal. Some refer to this as a get paid for waking up investment. If the options expired worthless, the portfolio manager can collect another option premium. Collecting option premium can be seen as extra dividend payment on top of regular dividends. Profit Loss Dividend Price Appreciation Long-Only Equities Covered Call Strategy Premium Received Stock Price Re-Shaping Total Return Maximum Profit Dividend + Option Premium Price Appreciation Iron Horse Covered Calls Covered Calls: How to Use the Strategy in Client Portfolios What type of investors invest in Covered Calls? Covered call investing has been around for over 40 years and a broad range of investors use covered calls as an allocation within a larger portfolio. Pensions are using covered calls to replace both U.S. large-cap equity allocations and also fixed income allocations. Family office, foundations and non-profit organizations are using covered calls to generate income and steadier returns. Ultra-high-net worth individuals and certain trusts are using covered calls to generate income and offset inflation. Portfolio Positioning Three primary positions: Investors seeking equity returns with less risk than stock-only allocations use covered calls. Investors who seek income similar to high yield bonds use covered calls as a fixed income alternatives. Investors seeking an allocation to alternatives may consider covered calls, because of the positioning on the security market line. Possible Risk Outcomes for a Covered Call Position Risk 1. Averse Stock rises and the option gets called away (maximum possible profit); Seeking 2. Stock remains unchanged (results in a profit from the call income received); 3. Stock drops (results in a loss just as with long only stocks, except the loss will be partially offset by the call income received). For Use with Institutions Only, Not for Use with Retail Investors. 2

Hypothetical Covered Call Example An investor purchases shares of the hypothetical TSJ Sports Conglomerate (TSJ) for $50. The investor then sells a call option on TSJ with a strike price of $55, the investor receives the premium ($5/share) from the option sale and has agreed to sell his shares of TSJ at $55 no matter how high the shares may rise in value. One of three scenarios is going to play out: 1. TSJ shares trade flat (below the $55 strike price) - the option expires worthless and the investor keeps the premium from the option. 2. TSJ shares fall - the option expires worthless and the investor keeps the stock. 3. TSJ shares rise above $55 - the option is exercised, and the upside is capped at $55 ($5 price gain), plus the option premium ($5 income gain). In this case, the maximum total return is achieved. Hypothetical examples do not represent or imply performance of any strategy and are provided for Illustrative purposes only. Summary of Covered Calls The CBOE website 1 references three different studies that have been performed on the risk-return dynamics of covered calls. All three studies done by Asset Consulting Group, Callan and Ibbotson concluded that the CBOE S&P 500 BuyWrite Index (BXM) earned roughly the same annualized return as the S&P 500 over the long term, but at lower risk (30-33% lower average standard deviation). Long-Only Equity vs. Covered Call Equity Strategy Collect quarterly dividends Collect proceeds from sale of asset Collect covered call premium Collect quarterly dividends Collect proceeds from sale of asset Purchase Asset -$100 $2 Dividend Income With unlimited upside potential Typical long-only strategies rely on price appreciation for most of their return. Purchase Asset -$100 $8 Dividend Income + Option Income With upside potential A covered call strategy seeks to capture a portion of return at inception. Potentially creating a steady income component. Rational Iron Horse Fund (IRHIX, IRHAX, IRHCX) The strategy invests in large cap companies that the portfolio managers expects to produce strong return on investment, pay regular dividends, have below average leverage, attractive valuations, and a consistent shareholder value-oriented track record. The strategy predominantly invests in dividend-paying companies and uses call options in an attempt to create incremental income and reduce portfolio volatility. The strategy seeks to make income a more significant component of the total investment return and targets long term risk adjusted returns versus long only equities. The goal is a portfolio that generates a higher than average annual income with a target of 6-8% annual income. There is no assurance that the Fund will achieve its investment objective. The advisor on the fund, Van Hulzen Asset Management, has an over 15 year track record in managing covered calls. Risk For more information on the fund: /funds/iron-horse-fund. Averse For more information on the Advisor Van Hulzen Asset Management: www.vaminstitutional.com 1 Data Source: www.cboe.com For Use with Institutions Only, Not for Use with Retail Investors. 3

Rational Iron Horse Fund Performance IRHAX IRHCX IRHIX FUND MANAGEMENT Investment Advisor Rational Advisors, Inc. Craig Van Hulzen Portfolio Manager Chief Investment Officer, President and Portfolio Manager since founding Van Hulzen Asset Management, LLC in 1998 B.A. in Business Finance from Point Loma Nazarene University John Pearce Portfolio Manager Portfolio Manager at Van Hulzen Asset Management, LLC since 2008 B.A. in Economics from the University of Virginia and an M.S. in Accounting from the College of Charleston Stefan ten Brink Portfolio Manager Portfolio Manager at Van Hulzen Asset Management, LLC since 2011 Degree in Logistics and Economics from Arnhem Business School and an MBA from Nijmegen University. Stefan is a Certified European Financial Analyst (CEFA) SHARE CLASS INFORMATION Share Class Inception Date Net Expense* Gross Expenses Class A 7/7/11 1.95% 2.20% Class C 1/11/17 2.70% 2.70% Institutional 11/16/11 1.70% 1.95% Distribution Schedule (All Classes) Annually *The Fund s investment advisor, Rational Advisors, Inc. (the Advisor ) has contractually agreed to waive all or a portion of its management fee and/or reimburse certain operating expenses of the Fund to the extent necessary in order to limit the Fund s total annual fund operating expenses (after the fee waivers and/or expense reimbursements, and exclusive of acquired fund fees and expenses, brokerage costs, interest, taxes and dividends, and extraordinary expenses such as litigation or reorganizational costs) to not more than 1.70%, 1.95% and 2.70% of the Institutional Shares, Class A Shares and Class C Shares daily net assets, respectively, through April 30, 2018. Growth of $10,000 Investment $16,000 $14,000 $12,000 $10,000 $8,000 2011 2012 2013 2014 2015 2016 Performance (%): Ending March 31, 2017 (Annualized if greater than 1 year) 10% 0% IRHIX ($14,549) CBOE BuyWrite Index (BXM) 2 ($15,419) YTD 1yr 3yrs 5yrs Inception* Institutional Class 2.98% 5.70% 3.84% 5.89% 7.23% CBOE BuyWrite Index (BXM) 2 4.01% 12.20% 6.52% 7.04% 8.40% Class A 2.98% 5.53% 3.59% 5.63% 5.40% Class A w/ Sales Charge -2.91% -0.56% 1.58% 4.39% 4.32% *Inception date A Share: 7/7/2011. Returns greater than 1 year are annualized. Inception date I Share: 11/16/2011. Returns greater than 1 year are annualized. Class C Share launch date 4/6/2017. Maximum sales charge for Class A is 5.75%. Total Annual Operating Expenses are 2.20% and 1.95% for the Class A and I Shares respectively. 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. Results shown reflect the waiver, without which the results could have been lower. A fund's performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. To obtain the most recent month end performance information or the funds prospectus please call 800-253-0412 or visit www.rationalmf.com. Risk Analysis Since Inception* Since inception* risk measures apply to Class A Shares only. Inception date of Class A Share: 7/7/2011. Holdings are subject to change and should not be considered investment advice. Standard Deviation Fund (Annualized) 5.9% Standard Deviation S&P 500 (Annualized) 11.9% Sharpe Ratio 1.25 Beta vs. S&P 500 0.6 R-Squared vs. S&P 500 0.9 Important Definitions: Standard Deviation: A measure of daily volatility of returns. Typically, the higher the volatility, the riskier the security. Beta: A measure of the volatility of a fund relative to the overall market. Sharpe Ratio: A risk-adjusted measure used to determine reward per unit of risk. R-Squared: The percentage of a fund s movement that can be explained by movements in its benchmark index. (800) 253 0412 www.rationalmf.com For Use with Institutions Only, Not for Use with Retail Investors.

Van Hulzen Covered Call Strategy: Related Performance 1Q 2017 Fact Sheet Class A: IRHAX Class C: IRHCX Institutional: IRHIX IRHAX IRHCX IRHIX VAN HULZEN COVERED CALL STRATEGY RELATED PERFORMANCE Related performance of the Van Hulzen Covered Call Strategy includes all client accounts managed by Van Hulzen Asset Management with investment objectives, strategy and policies substantially similar to the Rational Iron Horse Fund. The information is provided to illustrate the past performance of the Van Hulzen Covered Call Strategy in managing client accounts in a substantially similar manner as the Rational Iron Horse Fund but does not represent the performance of the Rational Iron Horse Fund. Past performance is no guarantee of future results. Performance results may be materially affected by market and economic conditions. Fees and expenses of the SMA accounts included in the Van Hulzen Covered Call Strategy are generally lower than those of the Rational Iron Horse Fund and, therefore, the Fund's results would be lower than the returns reflected. SMA accounts are not subject to certain investment limitations, diversification requirements and other restrictions imposed by the 1940 Act or Internal Revenue Code, which, if applicable, could have adversely affected the performance of the SMA accounts. Growth of $10,000 Investment December, 31,2001 - March 31, 2017 $36,000 $32,000 $28,000 $24,000 $20,000 $16,000 $12,000 Van Hulzen Covered Call ($35,001) CBOE BuyWrite Index (BXM) 2 ($22,299) S&P 500 ($28,031) $8,000 $4,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Annualized Performance Statistics Van Hulzen (VAM) Performance & Risk Statistics Van Hulzen Covered Call Strategy* BXM S&P 500 Sharpe Ratio 0.86 0.45 0.44 Beta (vs. Benchmark) 0.69 0.55 R-Squared (vs. Benchmark) 0.62 0.71 *Inception date: 12/31/2001 Mar 2017 3M 6M YTD 1 YR 3 YRS 5 YRS 7 YRS 10 YRS 15 YRS Since Inception 0.43% 3.52% 4.65% 3.52% 9.08% 6.05% 8.87% 9.15% 6.72% 8.59% 8.56% BXM 0.36% 4.01% 6.76% 4.01% 12.20% 6.52% 7.04% 7.26% 4.60% 5.27% 5.40% Difference (VAM-BXM) 0.06% -0.49% -2.12% -0.49% -3.12% -0.47% 1.83% 1.89% 2.12% 3.32% 3.16% S&P 500 0.12% 6.07% 10.12% 6.07% 17.17% 10.37% 13.30% 12.94% 7.51% 7.09% 6.99% Risk/Reward Profile (%) ABOUT VAN HULZEN ASSET MANAGEMENT 12% Van Hulzen Covered Call CBOE BuyWrite Index S&P 500 Specializing in low volatility equity allocations for institutional mandates, Van Hulzen Asset Management (VAM) has over 15 years experience in managing an active covered call strategy. Standard Deviation: A measure of daily volatility of returns. Typically, the higher the volatility, the riskier the security. Beta: A measure of the volatility of a fund relative to the overall market. Sharpe Ratio: A risk-adjusted measure used to determine reward per unit of risk. R-Squared: The percentage of a fund s movement that can be explained by movements in its benchmark index. Annualized Return 10% 8% 6% 4% 5% 7% 9% 11% 13% 15% Standard Deviation (Risk) Annualized Return Standard Deviation Van Hulzen Covered Call Strategy* BXM S&P 500 8.6% 5.3% 7.0% 9.3% 10.6% 14.3% (800) 253 0412 www.rationalmf.com For Use with Institutions Only, Not for Use with Retail Investors.

RISK CONSIDERATIONS: Past performance is not a guarantee of future results. Investors should carefully consider the investment objectives, risks, charges and expenses of the Rational Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (800) 253-0412 or at www.rationalmf.com. The prospectus should be read carefully before investing. The Rational Funds are distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Rational Advisors, Inc. is not affiliated with Northern Lights Distributors, LLC. Mutual Funds involve risk including the possible loss of principal. There is no assurance that the fund will achieve its investment objectives. The use of leverage embedded in written options will limit the Fund's gains because the Fund may lose more than the option premium received. Selling covered call options will limit the Fund's gain, if any, on its underlying securities and the Fund continues to bear the risk of a decline in the value of its underlying stocks. The CBOE S&P 500 BuyWrite Index (BXM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index. The BXM is a passive total return index based on (1) buying an S&P 500 stock index portfolio, and (2) "writing" (or selling) the near-term S&P 500 Index (SPXSM) "covered" call option, generally on the third Friday of each month. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index (stock price times number of shares outstanding), with each stock's weight in the Index proportionate to its market value. It is widely used as a benchmark of U.S. equity performance. It is not possible to invest directly in an index. Standard deviation is a statistical measurement of volatility risk based on historical returns. Investing in the Fund carries certain risks. rationaladvisors 36 North New York Avenue Huntington, NY 11743 For Use with Institutions Only, Not for Use with Retail Investors. Email: info@rationalmf.com Phone: 1-800-253-0412 4391-NLD-5/1/2017