Investors should carefully consider the investment objectives, risks, charges and expenses of the RESQ Funds. This and other important information about the Funds are contained in the prospectus, which can be obtained by calling 1-877-940-2526. The prospectus should be read carefully before investing. The RESQ Funds are distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. RESQ Investment Partners, Inc. is not affiliated with Northern Lights Distributors, LLC.
There is the risk that you could lose money through your investment in the Funds. Investing in the commodities markets through commodity-linked ETFs, ETNs and mutual funds will subject the Funds to potentially greater volatility than traditional securities. The Portfolios investments in convertible securities subject the Portfolios to the risks associated with both fixed-income securities and common stocks. There is a risk that issuers and counterparties will not make payments on securities and other investments held by the Funds, resulting in losses to the Funds. Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments.
In general, the price of a fixed income security falls when interest rates rise. The Funds may invest in high yield securities, also known as "junk bonds." High yield securities provide greater income and opportunity for gain, but entail greater risk of loss of principal. Using leverage can magnify the Funds potential for gain or loss and; therefore, amplify the effects of market volatility on the Fund’s share price. A higher Fund turnover will result in higher transactional and brokerage costs. As with any investment, there are risks associated with REITs which include declines from deteriorating economic conditions, changes in the value of the underlying property, and defaults by borrowers. The value of the Funds may be adversely impacted by events or developments in a sector or group of sectors.
Investments in lesser-known, small and medium capitalization companies may be more vulnerable than larger, more established organizations. The issuer of the foreign debt or the governmental authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due, and the Funds may have limited recourse in the event of a default. Underlying Funds are subject to investment advisory and other expenses, which will be indirectly paid by the Funds. As a result, the cost of investing in the Funds will be higher than the cost of investing directly in other investment companies and may be higher than other mutual funds that invest directly in securities. The market value of ETF and mutual fund shares may differ from their net asset value. Each investment company and ETF is subject to specific risks, depending on the nature of the fund.
Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund’s investments. When the Funds invest in asset-backed securities, including mortgage backed securities, the Funds are subject to the risk that, if the issuer fails to pay interest or repay principal, the assets backing these securities may not be sufficient to support payments on the securities. Special risks associated with investments in foreign markets may include less liquidity, greater volatility, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. In addition to the risks generally associated with investing in securities of foreign companies, countries with emerging markets also 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.