Investment Philosophy

The adviser has a hands on, active management style, and believes that insight, experience and applied intelligence are the keys to successful investing. The adviser believes that it is just as important to have a defensive strategy as it is to have a strategy for pursuing gains; if market cycles are not taken into account, any gains easily can be lost. Avoiding large losses in the markets is a crucial part of any successful investment strategy. The adviser focuses on consistency of investment return over a complete cycle of a rising and a falling market; because the adviser believes that capturing and keeping small, incremental gains will achieve greater long-term success than large gains offset by large losses.

The Fund seeks to achieve its investment objective by investing primarily in equity securities of companies selected from all capitalization ranges and all industry groups. (See the "Principal Investment Strategies" section of the Fund’s prospectus.) The adviser generally looks at a three-month investment horizon when initially committing to an equity position and then re-evaluates constantly, which can either shorten or lengthen the time horizon. This investment philosophy is geared towards stocks of companies that have characteristics that indicate that they have near term appreciation potential. The adviser attempts to control risk by owning a large number of individual stocks, selling stocks held long that it believes are in or are about to enter into a down trend, and by conducting hedging from time to time using futures and/or options. If the adviser believes the overall market is overvalued and/or technically vulnerable to a decline, or if the adviser cannot find a sufficient number of stocks with near term appreciation potential, it has the discretion to move all or a portion of the Fund’s assets into fixed income securities, in order to take a more defensive position. The fixed income securities will generally be investment grade cash equivalents with maturities under 91 days. The adviser does not conduct fundamental valuation analysis on a specific security basis. The adviser does not attempt to diversify across industry sectors. ( 10th Style Box White Paper)

Although equity securities of U.S. issuers are the Fund’s primary investments, the Fund also may invest in other types of securities and employ other types of investment strategies. In addition, the Fund may engage in transactions not described below as part of a principal or secondary investment strategy. For a more complete description of these and other investments and techniques, see the Fund’s Statement of Additional Information ("SAI"). Additional information about these investments and the special risk factors that apply to them can be found under the title "Principal Risks" and in the SAI.

As with all mutual funds, there is the risk that you could lose money through your investment in the Fund. Although the Fund will strive to meet its investment objective, there is no assurance that it will. The Fund may engage in short selling, or invest in options and futures which may subject the fund to additional volatility. The Fund may invest in mid and small-cap securities which may have special risks associated including wider variations in earnings and business prospects than larger, more established companies. The Fund may invest in the shares of other mutual and exchange traded funds. These underlying funds may be subject to their own operating fees and expenses.


Mutual Funds involve risk including possible loss of principal. An investor should consider the Fund's investment objective, risks, charges, and expenses carefully before investing. This and other information about Autopilot Managed Growth Fund™ is contained in the fund's prospectus, which can be obtained by calling 1-866-8AUTOPILOT (1-866-828-8674). Please read the prospectus carefully before investing. The Autopilot Managed Growth Fund™ is distributed by Northern Lights Distributors, LLC, Member FINRA.
0670-AFD-10/18/2006
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