Wade Financial Tactical L/S Fund

The Old Rules of Investing No Longer Apply
The bear market that took place in the fall of 2008 shattered the validity of virtually all past investment diversification approaches. What had proven reliable and had worked up until 2008 failed miserably. This served as a wake up call to both professional and individual investors that a paradigm shift for achieving future investment success would be required.

Our Approach
The Wade Tactical L/S Fund operates under a flexible allocation approach, seeking to provide higher returns with lower risk than the typical “Balanced” fund. The Fund’s goal is to, over complete economic cycles, lessen downside risk in down years for the stock market and capture attractive positive returns in up stock market years. We believe that the Fund’s investors will be well positioned to participate meaningfully in rising markets and to limit losses in difficult periods. The neutral stock/bond allocation for the Wade Tactical L/S Fund is 50/50. The equity exposure can range from a low of 35% to a high of 65%. Wade Financial Group’s Contrarian Value (ConVal^®) investment approach varies the overall stock/bond mix and adjusts the allocations to different asset classes and individual holdings as is deemed advantageous for Fund shareholders in an attempt to maximize returns and lessen risk.

What Is The Fund Advisor’s ConVal^® Investment Process?
The Wade Tactical L/S Fund allows for the full expression of Wade Financial Group’s (WFG) economic views across a global set of strategic ⁽¹⁾ and tactical ⁽²⁾ exposures via the advisor’s ConVal^® investment process. ConVal^® is used to construct a compelling alternative to the conventional strategic asset allocation approaches based upon traditional "modern portfolio theory". Fund shareholders may benefit by leveraging WFG’s proven ability to navigate the rapidly evolving complex global economy and investment landscape in a risk-managed fashion.

Advanced Asset Allocation In A Single No Load Fund
As demonstrated during the 2008 bear market, investment advisors and investors who adhere to traditional asset class diversification may find it difficult to achieve their long-term return objectives. Long-term transformations in the global economy are challenging traditional investment approaches, creating new opportunities and risks for investors. Investment advisors and investors who can adapt their methods and accurately identify “where the puck is going” vs. ”where the puck has been”, will have an advantage and possess the potential to lessen the impact of the inevitable periodic crisis allowing for considerable potential for attractive long-term returns.

An Integrated, Complete Portfolio Solution
The Wade Tactical L/S Fund is intended to be a complete portfolio solution. It can serve as a compelling alternative to conventional U.S.-only balanced fund (60-stock/40-bond) approaches. This can allow investors to lessen the amount of energy devoted to building portfolios of multiple funds, securities and in many cases from various brokerage locations. Investors may benefit from the Fund Advisor’s proven ability to manage risk and deliver potential attractive returns via an integrated portfolio structure.

Multiple Asset Class, Global Diversification
Seeks to provide efficient exposure to an ever-increasing array of global investment opportunities.

Ability to Modify The Stock/Bond Mix
The neutral stock/bond allocation for the Fund is 50/50. The equity exposure can range from a low of 35% to a high of 65%. The ConVal^® investment approach allows for varying the overall stock/bond mix and adjustments to the allocations of different asset classes and holdings in an attempt to maximize returns and lessen risk.

Non-Correlated Returns Reduce Risk
The Advisor, within the framework of modern portfolio theory, attempts to manage downside risk by optimizing potential correlation relationships between security holdings in the fund. If achieved, the use of security holdings with lower correlation to each other has the potential to lessen downside returns and improve long term compound returns.

Preference for Value Stocks vs. Growth
Numerous academic research⁽³⁾ indicates that investors too often “over pay” for the potential future earnings of a company, due to it’s high P/E ratio. These same studies conclude that purchasing companies both large and small that have become undervalued potentially has historically afforded investors the potential for additional returns vs. the general stock market and growth segments.

(1) Strategic: an investment method that places emphasis on the long-term inclusion of various asset classes and securities over a complete market cycle(s).
(2) Tactical: an investment method that allows for security selection that may prove advantageous over shorter time frames contained within an economic cycle.
(3) Jeremy Siegel: “Stocks For The Long Run”, Dimensional Fund Advisors (DFA).

Investment Process

We adhere to a rigorous and ongoing portfolio monitoring process. We analyze market conditions and review underlying fund investments daily.

The Fund operates under a flexible allocation approach, seeking to provide higher returns with lower risk than the typical “Balanced” fund. The Fund’s goal is to, over complete economic cycles, lessen downside risk in down years for the stock market and capture attractive positive returns in up stock market years. We believe that the Fund’s investors will be well positioned to participate meaningfully in rising markets and to limit losses in difficult periods.

Performance Goals

The Wade Tactical L/S Fund Is Designed
To Protect Against Severe Market Declines
The Wade Tactical L/S Fund does not necessarily seek to outperform stock funds when the market is doing well, but strives to protect against significant losses in order to provide competitive long-term returns without taking excessive “down year” risk. Performance objectives for the fund, over the Fund’s future 3, 5 and 10-year calendar periods are as follows:

Primary: Outperform the Lipper Balanced fund index as measured by the Funds net return vs. the index.
Secondary: Provide for 70% of the long-term annualized return of the S&P 500 index (including dividends), with no more than 50% of the downside risk⁽¹⁾, net after fees, gross before taxes⁽²⁾.

(1) Downside risk defined as the average percentage decline of the Fund relative to the S&P 500 index, in years in which the S&P 500 index (including dividends) experienced a negative return.
(2) While the Fund manager believes taxes are an important factor, since the Fund will be owned over different time periods by investors in various tax brackets, the funds primary goal is to focus on “net, after fee returns”, before income taxes. That said, whenever possible the manager will attempt to minimize the impact on the Fund’s short-term gains. This will be primarily accomplished by the Fund owning core positions that are long term in nature, thus these holdings will experience lower turnover than the holdings that will change over time due to the managers tactical, ConVal^® investment process.

Investment Allocation

The Wade Tactical L/S Fund invests primarily in a diverse set of asset classes.
Click here (Wade Tactical L/S Fund - Asset Allocation Example) to view an illustration of the characteristics of each sub-strategy within the fund and potential ranges of allocations of each.

Neutral Asset Allocation Wade Funds Investment Allocation

Bull/Bear Modes

The neutral stock/bond allocation for the Wade Tactical L/S Fund is 50/50. The equity exposure can range from a low of 35% to a high of 65%. Wade Financial Group’s Contrarian Value (ConVal^®) investment approach varies the overall stock/bond mix and adjusts the allocations to different asset classes and individual holdings as is deemed advantageous for Fund shareholders in an attempt to maximize returns and lessen risk.

The following represents a general example of how the Fund’s Equity/Bond mix may be positioned in different investment and economic environments. We refer to them as "zones" to indicate our view of the investment climate and the best risk/reward opportunities within these given conditions:

Wade Funds Bull/Bear Mode

Certain asset classes, such as Hybrid/Hedge Like, Managed Futures and Special Situations are difficult to classify as either equity or bond, based upon their low correlation to these traditional asset categories. In most cases, these unique asset classes are equally split across the equity and bond categories for purposes of providing fund shareholders a broad view of how the fund is positioned.

Wade Financial Group, Inc. is an SEC registered investment advisor that has managed investment portfolios for wealthy families and high net worth individuals since 1994. The funds Chief Investment Officer, Jerry B. Wade, CFP^®, CFS, began his financial advisory career in 1984 and is one of the most recognized and respected financial advisors in the U.S.

An investor should consider the Fund’s investment objective, risks, charges, and expenses carefully before investing. This and other information about the Wade Tactical L/S Fund is contained in the Fund’s prospectus, which can be obtained by calling 1-866-950-6WFG (1-866-950-6934). Please read the prospectus carefully before investing. The Fund is distributed by Northern Lights Distributors, LLC, member FINRA.

Mutual Funds involve risk including possible loss of principal.
To the extent the Fund invests in Underlying Funds that invest in foreign securities, the Fund could be subject to greater risks because that Fund’s performance may depend on issues other than the performance of a particular company or U.S. market sector. Changes in foreign economies and political climates are more likely to affect that Fund than a mutual fund that invests exclusively in U.S. companies. The value of foreign securities is also affected by the value of the local currency relative to the U.S. dollar.

Short Sale: The sale of shares of a security that the seller does not own. Such sales are made in anticipation of a decline in the price of the security to enable the seller to cover the sale with a purchase at a later date, at a lower price, and thus at a profit. Securities and Exchange Commission rules allow investors to sell short only when a stock price is moving upward. This prevents "pool operators" from driving down a stock price through heavy short-selling, then buying the shares for a large profit.

Emerging Markets Risks: Countries with emerging markets may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues.

Prospectus Disclosure: Investors should carefully consider the investment objectives, risks, charges and expenses of the Wade Tactical L/S Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-866-950-6934. The prospectus should be read carefully before investing. The Wade Tactical L/S Fund is distributed by Northern Lights Distributors, LLC member. FINRA.

0785-NLD-06/24/2009