Dynamic Brands:

The Investment Portfolio Filled with the Blue Chip Brands We Engage With Regularly.

The Focus is Important Secular Growth Themes Across a Diverse Group of Consumption Categories.

Brands Matter.

Third Party Validation on the Power of Investing in Brands:

Interbrand is the leading Brand Consultancy (Owned by Omnicom, a Top 5 Global Advertising Agency).

Ranking Brands Since 2000 and Highlighting, their Top 100 Global Brands vs the Major Stock Indices

Adding a Dedicated Allocation to Top Global Brands Adds Significant Diversification.

Why? They Generally Live in Sectors & Industries NOT Well Represented in Indices.

Every Portfolio is Underweight Consumer Stocks.

The Consumer “Sector” is the Least Crowded Trade Today.

Tech is the Most Crowded Trade Today.

A High Tracking Error Approach: 59% of HSUTX in Top 10 Brands

Top 10 Brands and Their Weight Versus the S&P 500 & Large Cap Growth Indexes

Dynamic Brands YTD as of December 31, 2024

Investing in Mega Brands Has Never Been Easier via Dynamic Brands HSUTX

Holdings as of 12/31/24 (Listed by Size of Position)

Blue Chip, Mega Brands, Drive the Core of the Portfolio.

Currently 92% of the Total Holdings (Varies Over Time)

The Fund Invests in Key Consumption Industries via Brand Leaders

Innovator Brands & Emerging Consumption Categories

Dynamic Brands Historical Performance (Various Periods).

Our team took over HSUTX on 10/17/2017. Since 2017, we have experienced 3 stock market bear markets (down 20%+ in 2018 from peak, 2020 for early Covid, and 2022 with historic Fed tightening), multiple bouts of extreme volatility and uncertainty, a bout of 40+ year high inflation, rapidly rising and volatile interest rates, bank failures, and wars in Ukraine & Israel. That’s a lot of turmoil and uncertainty for markets to digest. From 2017 to the peak of the market in late 2021, the fund annualized at 23%, well above the normal average. In today’s “new normal” economic and rate regime, more normal equity returns should be expected and leading brands should continue to add value to a portfolio.

Bull Market Period: 10/17/2017 (Brands inception) to Market Peak, November 2021

Bear Market of 2022 - Rates/Inflation Rose at Historic Pace. Quality & Growth Stocks Were Sold.

Great Brands Performed Incredibly Well at the Fundamental Level - The Market Didn’t Care in 2022.

Our Team Took Advantage of the Weakness to Build Much Bigger Positions While On Sale.

Since the October 2022 Low to 12/31/2024: High Quality Brands Outperform

Dynamic Brands Looks Very Different than the Broad Market - By Design;

Making HSUTX a Great Compliment to SPY & the R1 Growth Index

FUN FACT: 25% of HSUTX Holdings aren’t in SPY or the R1 Growth Index.

Virtually EVERY Portfolio is UNDERWEIGHT Consumer Discretionary Stocks.

Why is that a Bad Idea?

On a Calendar Return Basis Since 1989, Consumer Discretionary Has the Best Beat Rate Versus All Sectors Versus the S&P 500

Defensive Brands With Stable Business Models Can Protect Capital in Major Drawdowns

Consumption is Global so HSUTX has a Global Footprint

We Focus on Tracking “Lifetime Consumer Spending” Through the Brands that Dominate Our Lives.

Great Chart From Ritholtz Wealth Management & Ben Carlson Highlighting Aggregate Household Spending

Growth in Net Worth, Highly Correlated to Spending Capacity, Has Grown Across Income Cohorts

Current Consumption Exposures as of December 2024

Projected Upside to 12 Month Targets as of December 2024

Current Style Box Exposures as of December 2024

Average Weighted Market Cap vs the S&P 500

Sector Positioning as of December 2024:

Anchored to High Quality Style Factors Always

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. 

Risk Considerations:

Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund's portfolio. These factors may affect the value of your investment. Investments in international markets present special risks including currency fluctuation, the potential for diplomatic and political instability, regulatory and liquidity risks, foreign taxations and differences in auditing and other financial standards. Risks of foreign investing are generally intensified for investment in emerging markets. Emerging market securities tend to be more volatile and less liquid than securities traded in developed countries.

The Fund’s investment adviser, 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 (excluding (i) acquired fund fees and expenses; (ii) brokerage commissions and trading costs; (iii) interest (including borrowing costs and overdraft charges), (iv) taxes, (v) short sale dividends and interest expenses, and (vi) non-routine or extraordinary expenses, such as regulatory inquiry and litigation expenses) to not more than 1.24%, 1.49% and 2.24% of the average daily net assets of the Fund’s Institutional, Class A, and Class C shares, respectively, through April 30, 2025.

This arrangement may only be terminated prior to this date with the agreement of the Fund’s Board of Trustees. Under certain conditions, the Advisor may recoup management fees that it waived or Fund expenses that it paid under this agreement for a period of three years from the date the fees were waived or expenses paid, if the recoupment can be achieved without causing the expense ratio of the share class (after the recoupment is taken into account) to exceed (i) the expense limit in effect at the time the fees were waived or expenses paid, or (ii) the expense limit in place at the time of the recoupment.

NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK GUARANTEED