The KCM Macro Trend Fund (KCMTX) is an open-ended no-load mutual fund that is available only to clients of Kerns Capital Management and other Investment Advisors for their clients.  The fund is an out-growth of the model portfolios and managed accounts that Kerns Capital Management has been successfully designing and managing for its clients for more than 18 years.
  
Inception Date: August 4, 2008

Portfolio Manager: Lane Kerns, President and Chief Investment Officer, Kerns Capital Management

Shareholder Letter:  April 30, 2011

Fund Fact Sheet:   Fact Sheet (FINRA Reviewed)

Investment Objective: The fund's primary investment objective is long-term growth of capital.  As a secondary, but equally important goal, the fund seeks to manage volatility and market risk.  Making money during good times is important, but it is equally important to protect your assets during bad times.  It is a mathematical fact that it is harder to make up losses than to make money.  Therefore, the fund's primary goal during tenuous markets will be capital preservation.

Investment Strategy:  The KCM Macro Trends Fund is an all capitalization, globally allocated, equity fund that seeks risk adjusted total return for its shareholders.  The fund seeks to profit from overarching trends, market biases, and future expectations regarding specific countries, regions, industries and companies.  In achieving its objective, the fund may use leverage to accentuate the impact of market moves, or hedge to reduce the portfolio's volatility and overall risk.  The fund can invest 0 to 100% of its assets in equities, giving it maximum flexibility. 

Historical Tax Efficiency:  Long-term capital gains and qualified dividends are currently taxed at 15%. Short-term capital gains are taxed at the shareholder's higher marginal rate. The investment process we follow is designed to help minimize taxes.

• We attempt to select stocks that have good long-term growth potential which allows us to hold them at least one year and qualify for the lowest Capital Gains tax rate. We hold the winners.
• We have a sell discipline of cutting losses quickly on stocks that do not work out. Stocks sold quickly at smaller losses help protect capital. And because the losses are short-term, they can be used to offset any short-term gains in the Fund.
• While we pick stocks to hold for the long-term, we actively hedge for the short-term to reduce portfolio losses during weak markets. Gains from hedging are usually short-term gains and can be offset with short-term losses from stocks held less than one year.
• We favor stocks which have the ability to pay qualified dividends which are currently taxed at the lowest rate.

Dividend and Capital Gains Distributions

Currency: USD

Source: Morningstar, Inc.®

Fund Use: Core Holding; Alternative Strategy.  Investors seeking exposure to both U.S. and world opportunity may find the KCM Macro Trends Fund an attractive solution to their portfolio.

For more information about the KCM Macro Trends Fund please see the fund’s Prospectus, XBRL Files, or Contact Us.

Mutual funds involve risk including the possible loss of principal. Investors should carefully consider the investment objectives, risks, charges and expenses of the KCM Macro Trends Fund. The Fund may invest in small, less well-known companies, which may be subject to more erratic market movements than large-cap stocks; foreign securities, which are subject to currency fluctuations and political uncertainty; and derivative securities, which may carry market, credit, and liquidity risks. The Fund may also engage in short selling activities, which are more risky than “long” positions because the potential loss on a short sell is unlimited. These risks may result in greater share price volatility. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-877-275-5599. The prospectus should be read carefully before investing. The KCM Macro Trends Fund is distributed by Northern Lights Distributors, LLC member FINRA.