0001537140 2013-03-01 2013-03-01 0001537140 nlft:S000039941Member 2013-03-01 2013-03-01 0001537140 nlft:S000039941Member nlft:C000123854Member 2013-03-01 2013-03-01 0001537140 nlft:S000039941Member nlft:C000123855Member 2013-03-01 2013-03-01 0001537140 nlft:S000039942Member 2013-03-01 2013-03-01 0001537140 nlft:S000039942Member nlft:C000123856Member 2013-03-01 2013-03-01 0001537140 nlft:S000039942Member nlft:C000123857Member 2013-03-01 2013-03-01 0001537140 nlft:S000039943Member 2013-03-01 2013-03-01 0001537140 nlft:S000039943Member nlft:C000123858Member 2013-03-01 2013-03-01 0001537140 nlft:S000039943Member nlft:C000123859Member 2013-03-01 2013-03-01 0001537140 nlft:S000039944Member 2013-03-01 2013-03-01 0001537140 nlft:S000039944Member nlft:C000123860Member 2013-03-01 2013-03-01 0001537140 nlft:S000039944Member nlft:C000123861Member 2013-03-01 2013-03-01 iso4217:USD xbrli:pure 485BPOS 2013-03-01 NORTHERN LIGHTS FUND TRUST III 0001537140 false nlft ZZZNX ZZZIX TAZNX TAZIX ARZNX ARZIX GOWNX GOWIX 2013-03-01 2013-03-01 2013-03-01 <p style="margin: 0px;"><b>Avatar Capital Preservation Fund</b></p> <p style="margin: 0px;"><b>Avatar Tactical Multi-Asset Income Fund</b></p> <p style="margin: 0px;"><b>Avatar Absolute Return Fund</b></p> <p style="margin: 0px;"><b>Avatar Global Opportunities Fund</b></p> <p style="margin: 0px"><b>Investment Objective:</b></p> <p style="margin: 0px"><b>Investment Objective:</b></p> <p style="margin: 0px"><b>Investment Objective:</b></p> <p style="margin: 0px"><b>Investment Objective:</b></p> <p style="margin: 0px">The Fund seeks to preserve capital while providing current income and limited capital appreciation.</p> <p style="margin: 0px">The Fund seeks current income.</p> <p style="margin: 0px">The Fund seeks a positive total return in all market environments.</p> <p style="margin: 0px">The Fund seeks maximum capital appreciation through exposure to global markets.</p> <p style="margin: 0px"><b>Fees and Expenses of the Fund.</b></p> <p style="margin: 0px"><b>Fees and Expenses of the Fund.</b></p> <p style="margin: 0px"><b>Fees and Expenses of the Fund.</b></p> <p style="margin: 0px"><b>Fees and Expenses of the Fund.</b></p> <p style="margin: 0px">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. More information is available from your financial professional and in the section entitled <b>How to Purchase Shares</b> of the Fund&#146;s Prospectus.</p> <p style="margin: 0px">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. More information is available from your financial professional and in the section entitled <b>How to Purchase Shares</b> of the Fund&#146;s Prospectus.</p> <p style="margin: 0px">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. More information is available from your financial professional and in the section entitled <b>How to Purchase Shares</b> of the Fund&#146;s Prospectus.</p> <p style="margin: 0px">This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. More information is available from your financial professional and in the section entitled <b>How to Purchase Shares</b> of the Fund&#146;s Prospectus.</p> <p style="margin: 0px"><b>Shareholder Fees</b> (fees paid directly from your investment)</p> <p style="margin: 0px"><b>Shareholder Fees</b> (fees paid directly from your investment)</p> <p style="margin: 0px"><b>Shareholder Fees</b> (fees paid directly from your investment)</p> <p style="margin: 0px"><b>Shareholder Fees</b> (fees paid directly from your investment)</p> <p style="margin: 0px; font-size: 9pt"><b>Annual Fund Operating Expenses</b> (expenses that you pay each year as a percentage of the value of your investment)</p> <p style="margin: 0px; font-size: 9pt"><b>Annual Fund Operating Expenses</b> (expenses that you pay each year as a percentage of the value of your investment)</p> <p style="margin: 0px; font-size: 9pt"><b>Annual Fund Operating Expenses</b> (expenses that you pay each year as a percentage of the value of your investment)</p> <p style="margin: 0px; font-size: 9pt"><b>Annual Fund Operating Expenses</b> (expenses that you pay each year as a percentage of the value of your investment)</p> <p style="margin: 0px"><b><i>Example.</i></b></p> <p style="margin: 0px"><b><i>Example.</i></b></p> <p style="margin: 0px"><b><i>Example.</i></b></p> <p style="margin: 0px"><b><i>Example.</i></b></p> <p style="margin: 0px">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.</p> <p style="margin: 0px">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.</p> <p style="margin: 0px">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.</p> <p style="margin: 0px">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.</p> <p style="margin: 0px">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:</p> <p style="margin: 0px">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:</p> <p style="margin: 0px">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:</p> <p style="margin: 0px">The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund&#146;s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:</p> <p style="margin: 0px"><b>Portfolio Turnover.</b></p> <p style="margin: 0px"><b>Portfolio Turnover.</b></p> <p style="margin: 0px"><b>Portfolio Turnover.</b></p> <p style="margin: 0px"><b>Portfolio Turnover.</b></p> <p style="margin: 0px">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund's performance.</p> <p style="margin: 0px">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund's performance.</p> <p style="margin: 0px">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or &#147;turns over&#148; its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. 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All of the models are created internally and are based on proprietary software.</p> <p style="margin: 0px">The Fund invests predominantly in exchange-traded products (&#147;ETPs&#148;), which include exchange traded funds (&#147;ETFs&#148;) and exchange traded notes (&#147;ETNs&#148;), that invest in fixed-income securities of U.S. corporate and governmental issuers, equity securities of both U.S. and non-U.S. corporate issuers, alternative/specialty securities, and cash equivalents. &#160;Underlying fixed-income securities will typically consist of a diversified mix of short-, intermediate-, and long-term investment grade, taxable U.S. government, U.S. Agency, and corporate bonds with no target duration. &#160;Underlying equity securities will typically consist of common and preferred stocks of large capitalization, and to a lesser extent small or medium capitalization, U.S. and non-U.S. companies. 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When risk tolerances are low, the Fund will generally systematically shift its allocation to shorter duration financial assets (notes and/or cash). &#160;These tactical changes in the Fund&#146;s portfolio will be made in order to implement this philosophy for purposes of generating superior risk-adjusted performance over time.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px">The adviser&#146;s investment decision-making process is grounded in the use of comprehensive tactical asset allocation methodology. &#160;The adviser&#146;s tactical asset allocation is driven by quantitative models and tactically changes the asset allocation of the Fund based on the adviser&#146;s quantitative research. &#160;The adviser increases the Fund&#146;s exposure to a given asset class when its research indicates that a given asset class is relatively attractive and reduces the Fund&#146;s exposure to a given asset class when its research indicates that a given asset class is overvalued. The adviser implements these tactical asset allocations using passively managed ETPs, which provide a cost-effective implementation vehicle, allowing timely exposure adjustments to be made across a broad range of asset classes.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px">The adviser&#146;s tactical asset allocation research is produced in-house. &#160;The portfolio mangers&#146; investment methodology is driven by multi-factor models built around using macro-monetary, investor and momentum inputs designed to measure risk. The portfolio managers typically have similar classes of models for equities around the world but utilize slightly different classes of models for different fixed income markets. Beneath the asset class, the portfolio managers have fashioned separate models for style, capitalization and sector rotations, as well as fixed income category exposure, credit quality, maturity, and duration. All of the models are created internally and are based on proprietary software.</p> <p style="margin-top: 0px"><b><i>As with all mutual funds, there is the risk that you could lose money through your investment in the Fund. &#160;The Fund is not intended to be a complete investment program. Many factors affect the Fund's net asset value and performance.</i></b></p> <p style="margin-top: 0px">The following describes the risks the Fund may bear directly and indirectly through ETPs.</p> <p style="margin-top: 0px"><i>Alternative and Specialty Assets Risks.</i> Each Fund may purchase ETPs that invest in &#147;alternative asset&#148; or &#147;specialty&#148; market segments that may be more volatile than other Fund investments. &#160;The risks and volatility of these investments are linked to narrow segments of the economy such as commodities, foreign currencies or real estate. &#160;Each segment is subject to different risks inherent in its segment: REITs' real estate linked investments are affected by property value fluctuations; commodity linked investments may be affected by commodity-specific factors, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments; foreign currency linked investments may be affected by special risks such as reduced liquidity, greater volatility, less developed trading markets and sovereign intervention in the exchange market intended to affect the level or movement of the exchange rate including a country re-issuing a new currency, effectively making the &#147;old&#148; currency worthless. &#160;ETPs may employ leverage, which magnifies changes in their value.</p> <p style="margin-top: 0px"><i>Credit Risk.</i>&#160;Debt issuers may not make interest or principal payments, resulting in losses to the Fund. &#160;In addition, the credit quality of securities held by an ETP may be lowered if an issuer's financial condition changes. &#160;These risks are more pronounced for securities at the lower end of the investment grade credit quality spectrum, such as those rated BBB- by Standard &#38; Poor's Ratings Group or another nationally recognized statistical rating organization (&#147;NRSRO&#148;).</p> <p style="margin-top: 0px"><i>Derivatives Risk.</i> Certain ETPs in which the Fund invests may invest in derivative instruments. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities including leverage risk and counterparty default risk.</p> <p style="margin-top: 0px"><i>Equity Risk.</i> The net asset value of the Fund will fluctuate based on changes in the value of the equity securities in which it invests. &#160;Equity prices can fall rapidly in response to developments affecting a specific company or industry, or to changing economic, political or market conditions.</p> <p style="margin-top: 0px"><i>ETF Risk.</i> ETFs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. &#160;As a result, your cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in securities. &#160;Each ETF is subject to specific risks, depending on its investments.</p> <p style="margin-top: 0px"><i>ETN Risk</i>. ETNs are subject to credit risk and their value will be influenced by time to maturity, supply and demand, volatility and lack of liquidity in underlying commodities markets, changes in interest rates, changes in the issuer&#146;s credit rating, and economic, legal, or political events.</p> <p style="margin-top: 0px"><i>Fixed-Income Risk.</i> When the Fund invests in fixed-income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. &#160;Typically, a rise in interest rates causes a decline in the value of fixed income securities. &#160;Defaults by fixed income issuers will also harm performance.</p> <p style="margin-top: 0px"><i>Foreign Security Risk.</i> When the Fund invests in foreign (non-U.S.) securities, the Fund may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to less liquid markets, and adverse economic, political, diplomatic, financial, and regulatory factors. Foreign governments also may impose limits on investment and repatriation and impose taxes. Any of these events could cause the value of the Fund&#146;s investments to decline.</p> <p style="margin-top: 0px"><i>Inverse Risk.</i> The Fund engages in hedging activities by investing in inverse ETPs. &#160;Inverse ETP's may employ leverage, which magnifies the changes in the underlying stock index upon which they are based. &#160;Any strategy that includes inverse securities could cause the Fund to suffer significant losses.</p> <p style="margin-top: 0px"><i>Leveraging Risk.</i> The use of leverage by the Fund or an ETP, such as borrowing money to purchase securities or the use of derivatives, will indirectly cause the Fund to incur additional expenses and magnify the Fund's gains or losses.</p> <p style="margin-top: 0px"><i>Limited History of Operations.</i> The Fund is a new mutual fund and has a limited history of operation, and the adviser has not previously managed a mutual fund.</p> <p style="margin-top: 0px"><i>Management Risk.</i> The adviser's dependence on its proprietary macroeconomic analysis and judgments about the attractiveness, value and potential appreciation of particular asset classes in which the Fund invests may prove to be incorrect and may not produce the desired results.</p> <p style="margin-top: 0px"><i>Market Risk.</i> Overall equity and fixed income securities market risks affect the value of the Fund. &#160;Factors such as domestic economic growth and market conditions, interest rate levels, and political events affect the US and international securities markets.</p> <p style="margin-top: 0px"><i>Portfolio Turnover Risk</i>. 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The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities including leverage risk and counterparty default risk.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>Equity Risk.</i> The net asset value of the Fund will fluctuate based on changes in the value of the equity securities in which it invests. &#160;Equity prices can fall rapidly in response to developments affecting a specific company or industry, or to changing economic, political or market conditions.</p> <p style="margin: 0px"><i>&#160;</i></p> <p style="margin: 0px"><i>ETF Risk.</i> ETFs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. &#160;As a result, your cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in securities. &#160;Each ETF is subject to specific risks, depending on its investments.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>ETN Risk</i>. ETNs are subject to credit risk and their value will be influenced by time to maturity, supply and demand, volatility and lack of liquidity in underlying commodities markets, changes in interest rates, changes in the issuer&#146;s credit rating, and economic, legal, or political events.</p> <p style="margin: 0px"><i>&#160;</i></p> <p style="margin: 0px"><i>Fixed-Income Risk.</i> When the Fund invests in fixed-income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. &#160;Typically, a rise in interest rates causes a decline in the value of fixed income securities. &#160;Defaults by fixed income issuers will also harm performance.</p> <p style="margin: 0px"><i>&#160;</i></p> <p style="margin: 0px"><i>Foreign Security Risk.</i> When the Fund invests in foreign (non-U.S.) securities, the Fund may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to less liquid markets, and adverse economic, political, diplomatic, financial, and regulatory factors. Foreign governments also may impose limits on investment and repatriation and impose taxes. 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Foreign governments also may impose limits on investment and repatriation and impose taxes. 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High portfolio turnover also is likely to result in higher short-term capital gains taxable to shareholders.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>Small and Medium Capitalization Stock Risk</i> The Fund may incur increased risk when it invests in the stocks of small and medium capitalization companies. &#160;These companies may have limited product lines, markets or financial resources, and they may be dependent on a limited management group. &#160;Stocks of these companies may be subject to more abrupt or erratic market movements than those of larger, more established companies or the market averages in general.</p> <p style="margin: 0px"><b><i>As with all mutual funds, there is the risk that you could lose money through your investment in the Fund. &#160;The Fund is not intended to be a complete investment program. &#160;Many factors affect the Fund's net asset value and performance.</i></b></p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px">The following describes the risks the Fund may bear directly and indirectly through ETPs.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>Alternative and Specialty Assets Risks.</i> The Fund may purchase ETPs that invest in &#147;alternative asset&#148; or &#147;specialty&#148; market segments that may be more volatile than other Fund investments. &#160;The risks and volatility of these investments are linked to narrow segments of the economy such as commodities, foreign currencies or real estate. &#160;Each segment is subject to different risks inherent in its segment: REITs' real estate linked investments are affected by property value fluctuations; commodity linked investments may be affected by commodity-specific factors, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments; foreign currency linked investments may be affected by special risks such as reduced liquidity, greater volatility, less developed trading markets and sovereign intervention in the exchange market intended to affect the level or movement of the exchange rate including a country re-issuing a new currency, effectively making the &#147;old&#148; currency worthless. &#160;ETPs may employ leverage, which magnifies changes in their value.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>Credit Risk.</i> &#160;Debt issuers may not make interest or principal payments, resulting in losses to the Fund. &#160;In addition, the credit quality of securities held by an ETP may be lowered if an issuer's financial condition changes. &#160;These risks are more pronounced for securities at the lower end of the investment grade credit quality spectrum, such as those rated BBB- by Standard &#38; Poor's Ratings Group or another nationally recognized statistical rating organization (&#147;NRSRO&#148;).</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>Derivatives Risk.</i>Certain ETPs in which the Fund invests may invest in derivative instruments. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities including leverage risk and counterparty default risk.</p> <p style="margin: 0px"><i>&#160;</i></p> <p style="margin: 0px"><i>Equity Risk. &#160;</i>The net asset value of the Fund will fluctuate based on changes in the value of the equity securities in which it invests. &#160;Equity prices can fall rapidly in response to developments affecting a specific company or industry, or to changing economic, political or market conditions.</p> <p style="margin: 0px"><i>&#160;</i></p> <p style="margin: 0px"><i>ETF Risk.</i> &#160;ETFs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. &#160;As a result, your cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in securities. &#160;Each ETF is subject to specific risks, depending on its investments.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>ETN Risk</i>. &#160;ETNs are subject to credit risk and their value will be influenced by time to maturity, supply and demand, volatility and lack of liquidity in underlying commodities markets, changes in interest rates, changes in the issuer&#146;s credit rating, and economic, legal, or political events.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>Fixed-Income Risk.</i> &#160;When the Fund invests in fixed-income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. &#160;Typically, a rise in interest rates causes a decline in the value of fixed income securities. &#160;Defaults by fixed income issuers will also harm performance.</p> <p style="margin: 0px"><i>&#160;</i></p> <p style="margin: 0px"><i>Foreign Security Risk.</i> &#160;When the Fund invests in foreign (non-U.S.) securities, the Fund may experience more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to less liquid markets, and adverse economic, political, diplomatic, financial, and regulatory factors. Foreign governments also may impose limits on investment and repatriation and impose taxes. Any of these events could cause the value of the Fund&#146;s investments to decline.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>Inverse Risk.</i> &#160;The Fund engages in hedging activities by investing in inverse ETPs. &#160;Inverse ETP's may employ leverage, which magnifies the changes in the underlying stock index upon which they are based. &#160;Any strategy that includes inverse securities could cause the Fund to suffer significant losses.</p> <p style="margin: 0px"><i>&#160;</i></p> <p style="margin: 0px"><i>Leveraging Risk. &#160;</i>The use of leverage by the Fund or an ETP, such as borrowing money to purchase securities or the use of derivatives, will indirectly cause the Fund to incur additional expenses and magnify the Fund's gains or losses..</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>Limited History of Operations.</i> &#160;The Fund is a new mutual fund and has a limited history of operation, and the adviser has not previously managed a mutual fund. </p> <p style="margin: 0px"><i>&#160;</i></p> <p style="margin: 0px"><i>Management Risk.</i> &#160;The adviser's dependence on its proprietary macroeconomic analysis and judgments about the attractiveness, value and potential appreciation of particular asset classes in which the Fund invests may prove to be incorrect and may not produce the desired results.</p> <p style="margin: 0px">&#160;</p> <p style="margin: 0px"><i>Market Risk.</i> &#160;Overall equity and fixed income securities market risks affect the value of the Fund. &#160;Factors such as domestic economic growth and market conditions, interest rate levels, and political events affect the US and international securities markets.</p> <p style="margin: 0px"><i>&#160;</i></p> <p style="margin: 0px"><i>Portfolio Turnover Risk</i>. &#160;High portfolio turnover is likely to lead to increased Fund expenses that may result in lower investment returns. High portfolio turnover also is likely to result in higher short-term capital gains taxable to shareholders.</p> <p style="margin: 0px"><i>&#160;</i></p> <p style="margin: 0px"><i>Small and Medium Capitalization Stock Risk:</i> &#160;The Fund may incur increased risk when it invests in the stocks of small and medium capitalization companies. &#160;These companies may have limited product lines, markets or financial resources, and they may be dependent on a limited management group. &#160;Stocks of these companies may be subject to more abrupt or erratic market movements than those of larger, more established companies or the market averages in general.</p> <p style="margin: 0px">Other expenses are based on estimated amounts for the Fund&#146;s current fiscal year.</p> <p style="margin: 0px">Other expenses are based on estimated amounts for the Fund&#146;s current fiscal year.</p> <p style="margin: 0px">Other expenses are based on estimated amounts for the Fund&#146;s current fiscal year.</p> <p style="margin: 0px">Other expenses are based on estimated amounts for the Fund&#146;s current fiscal year.</p> <p style="margin: 0px">Acquired Fund Fees and Expenses are based on estimated amounts for the Fund&#146;s current fiscal year.</p> <p style="margin: 0px">Acquired Fund Fees and Expenses are based on estimated amounts for the Fund&#146;s current fiscal year.</p> <p style="margin: 0px">Acquired Fund Fees and Expenses are based on estimated amounts for the Fund&#146;s current fiscal year.</p> <p style="margin: 0px">Acquired Fund Fees and Expenses are based on estimated amounts for the Fund&#146;s current fiscal year.</p> <p style="margin: 0px">Acquired Fund Fees and Expenses are the indirect costs of investing in other investment companies. The operating expenses in this fee table will not correlate to the expense ratio in the Fund&#146;s financial highlights because the financial statements include only the direct operating expenses incurred by the Fund, not the indirect costs of investing in other investment companies.</p> <p style="margin: 0px">Acquired Fund Fees and Expenses are the indirect costs of investing in other investment companies. The operating expenses in this fee table will not correlate to the expense ratio in the Fund&#146;s financial highlights because the financial statements include only the direct operating expenses incurred by the Fund, not the indirect costs of investing in other investment companies.</p> <p style="margin: 0px">Acquired Fund Fees and Expenses are the indirect costs of investing in other investment companies. The operating expenses in this fee table will not correlate to the expense ratio in the Fund&#146;s financial highlights because the financial statements include only the direct operating expenses incurred by the Fund, not the indirect costs of investing in other investment companies.</p> <p style="margin: 0px">Acquired Fund Fees and Expenses are the indirect costs of investing in other investment companies. The operating expenses in this fee table will not correlate to the expense ratio in the Fund&#146;s financial highlights because the financial statements include only the direct operating expenses incurred by the Fund, not the indirect costs of investing in other investment companies.</p> <p style="margin: 0px">Because the Fund has less than a full calendar year of investment operations, no performance information is presented for the Fund at this time.</p> <p style="margin: 0px">Because the Fund has less than a full calendar year of investment operations, no performance information is presented for the Fund at this time.</p> <p style="margin: 0px">Because the Fund has less than a full calendar year of investment operations, no performance information is presented for the Fund at this time.</p> <p style="margin: 0px">Because the Fund has less than a full calendar year of investment operations, no performance information is presented for the Fund at this time.</p> 1-800-815-4030 1-800-815-4030 1-800-815-4030 1-800-815-4030 www.avatarinvmgmt.com www.avatarinvmgmt.com www.avatarinvmgmt.com www.avatarinvmgmt.com The adviser has entered into a unitary fee arrangement with the Fund, whereby the adviser pays out of its management fee substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for interest expenses, distribution fees or expenses, brokerage expenses, taxes and extraordinary expenses such as litigation and other expenses not incurred in the ordinary course of the Funds business. The advisers unitary management fee is designed to pay substantially all of the Funds expenses and to compensate the adviser for providing services for the Fund. Other expenses are based on estimated amounts for the Funds current fiscal year. Acquired Fund Fees and Expenses are the indirect costs of investing in other investment companies. The operating expenses in this fee table will not correlate to the expense ratio in the Funds financial highlights because the financial statements include only the direct operating expenses incurred by the Fund, not the indirect costs of investing in other investment companies. Acquired Fund Fees and Expenses are based on estimated amounts for the Funds current fiscal year.