Gold Silver Alpha Strategy Fund

launched in November 2011. The Fund is advised by Peregrine Capital Advisors, Inc. and is designed to provide investors with exposure to both gold- and silver-based returns combined with the “Alpha” generating capability of a foreign exchange and managed futures based allocation.

Investment Strategy

The Fund’s investments will consist of two primary strategies, a Core strategy and an Opportunistic strategy. Investors interested in maintaining exposure to both gold and silver will do so through the Fund’s Core strategy. The portfolio managers will periodically rebalance the Core strategy around an internally set benchmark, most likely 80% gold to 20% silver. By weighting the Core strategy around this benchmark, the advisor to the Fund will attempt to create excess return that is predicated on the portfolio managers’ view of gold’s valuation in relation to silver. For example, if the portfolio managers are of the opinion that the price of gold is overvalued in relation to silver, a reweighting may be made such that gold might comprise 70% of the Core strategy and silver 30%. Of course, gold to silver weightings may be increased if the opposite opinion prevailed.

Up to 74% of every dollar invested in the Fund will be allocated to the Core strategy. Although the allocation may be 74%, the portfolio managers will attempt to establish a 100% exposure by utilizing slight leverage in the Core strategy’s gold- and silver-based securities. By achieving a “dollar for dollar” exposure to both metals, the Fund should more closely track its theoretical benchmark returns, as compared to a lesser percent of every dollar allocated to gold and silver. Full exposure to gold and silver may also allow the Fund’s Alpha generating allocations to contribute more easily to the Fund’s objective of achieving capital appreciation, in part, through their “absolute” or, “total” returns.

Up to 25% of every dollar invested in the Fund will be allocated to alternative investment strategies that may include foreign exchange and managed futures. The purpose of these allocations is to attempt to generate noncorrelated Alpha that may be ported onto the predominantly “relative” return of gold and silver in the Core strategy.

Allocations to alternative investment strategies will be made through pooled investment vehicles that the Fund’s advisor has selected based on what it believes to be acceptable risk and return criteria.

Definitions

Beta: A measure of volatility, or systematic risk of security or a portfolio in comparison to the market as a whole.

Alpha: A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its riskadjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha.

Correlation: A measure of the relation between two or more variables on a scale of -1 to +1. A zero correlation indicates there is no relationship between the variables with -1 to +1 representing perfect negative and perfect positive relationships, respectively.

Leverage: The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.

Absolute Return: The return that an asset achieves over a certain period of time.

Total Return: When measuring performance, the actual rate of return of an investment or a pool of investments.

Who Should Consider Investing?

Retail investors with smaller portfolios who are comfortable with the fund’s risks and have the goal of participating in the fund’s benefits with a smaller minimum investment.
Registered Investment Advisors who can utilize both the “A” share class for smaller allocations with a special fee waiver, or allocate through the “I” share class for larger omnibus allocations.
Family Office who can access to both Beta and Alpha return exposure with the daily liquidity of a mutual fund.
Independent Certified Financial Planners, Registered Representatives, and Wealth Advisors who want to offer clients a unique fund product that is usually more difficult to obtain through traditional distribution platforms.

Investors should carefully consider the investment objectives, risks, charges and Investors should carefully consider the investment objectives, risks, charges and expenses of the Peregrine Gold Silver Alpha Strategy Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 888-821-1331. The prospectus should be read carefully before investing. The Peregrine Gold Silver Alpha Strategy Fund is distributed by Northern Lights Distributors, LLC member FINRA.

Mutual Funds involve risk including possible loss of principal.

Because the Fund will invest more than 25% of its assets in the gold and/or silver metals industry through metals related securities and other investments, the Fund will be subject to greater volatility risk than a fund that is not concentrated in a single industry or pair of industries. Equity markets can be volatile.

Currency-related investing involves significant risks, including market risk, interest rate risk and country risk. Derivatives are subject to inherent leverage that magnifies Fund losses. Option positions may expire worthless. Futures, forward and swap contracts may not provide an effective hedge or substitute for gold or silver because changes in derivative prices may not track those of the underlying metals. Also, over the counter derivatives are subject to counterparty default risk.

ETFs and ETNs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in ETFs and ETNs and may be higher than other mutual funds that invest directly in stocks and bonds. Each ETF and ETN is subject to specific risks, depending on the nature of the ETF. ETNs are subject to default risks.

The value of notes and other fixed income securities will 􀃡uctuate with changes in interest rates. The price of gold may be volatile and gold-related security prices, and gold-related derivatives may be highly sensitive to the price of gold. The Fund is a new mutual fund and has a limited history of operation. The Fund’s investments may decline in value if the stock markets perform poorly or the price of gold or silver declines. As a non-diversified fund, the Fund may invest more than 5% of It’s total assets in the securities of one or more issuers. The Fund’s performance may be more sensitive to any single economic, business, political or regulatory occurrence than the value of shares of a diversified investment company.

Pooled vehicles are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. Recently the Commodity Futures Trading Commission (“CFTC”) has proposed changes to Rule 4.5 under the Commodity Exchange Act which, if adopted, could require the Fund and the Subsidiary to register with the CFTC. Such changes could potentially limit or restrict the ability of the Fund to pursue its investment strategy, and/or increase the costs of implementing its strategy. The Fund will incur a loss as a result of a short position if the price of the short position instrument increases in value between the date of the short position sale and the date on which an offsetting position is purchased. Losses are potentially unlimited in a short position transaction. The price of silver may be volatile and silver-related security prices, and derivative prices may be highly sensitive to the price of silver. The value of a small or medium capitalization company stocks may be subject to more abrupt or erratic market movements than those of larger, more established companies or the market averages in general.

Gold- and silver-related structured notes involve leverage risk, tracking risk and issuer default risk. Should the Fund invest in commodities indirectly through the Subsidiary, the Fund will obtain exposure to the commodities markets within the federal tax requirements that apply to the Fund. However, because the Subsidiary is a controlled foreign corporation, any income received from its investments will be passed through to the Fund as ordinary income, which may be taxed at less favorable rates than capital gains. The Subsidiary will not be registered under the Investment Company Act of 1940 (“1940 Act”) and, unless otherwise noted in this Prospectus, will not be subject to all of the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary, respectively, are organized, could result in the inability of the Fund and/or Subsidiary to operate as described in this Prospectus and could negatively affect the Fund and its shareholders. Your cost of investing in the Fund will be higher because you indirectly bear the expenses of the Subsidiary.

This is an actively managed dynamic portfolio. There is no guarantee that any investment (or this investment) will achieve its objectives, goals, generate positive returns, or avoid losses.

Peregrine Capital Advisors, Inc. and Northern Lights Distributors, LLC are not affiliated.

2568-NLD-12/5/2011