Dynamic International Opportunity Fund -Class I

Innealta’s International Fund Delivers Three Times the Return and Half the Drawdown

AUSTIN, Texas--(BUSINESS WIRE)--Innealta Capital’s Dynamic International Opportunity Fund (ICCIX) ranked in the top 1% –on a total-return basis, of 771 funds– in Morningstar's Foreign Large Blend Category (competitors) for the one-year period ending 12/31/2020. The Fund experienced half the drawdown and delivered more than three times the returns than its competitors in 2020. During the most volatile year since the Great Financial Crisis in 2008, the Fund, which is managed by Dr. Vito Sciaraffia and Josh Kocher, achieved the following 2020 performance statistics1: Returns: ICCIX returned 27.20%, outperforming the MSCI All Country World Index ex-USA Index (benchmark) and competitors by an impressive 16.55% and 18.32%, respectively. Risk (volatility): ICCIX exhibited a 13.46% annualized standard deviation, representing only 68.08% and 51.69% of its benchmark and competitors’ volatility, respectively. Risk (drawdown): ICCIX experienced a maximum peak-to-trough contraction of 17.03%, representing only 49.51% and 50.33% of its benchmark and competitors’ drawdown, respectively. Over the five years that Dr. Sciaraffia’s team has managed ICCIX, 2020 marks the second year the Fund has ranked in the top 1 percentile. Moreover, under his tenure, the Fund has outperformed its benchmark and competitors for all relevant periods, i.e., 1, 3, and 5 years. Dr. Sciaraffia stated, “Our results, both absolute and risk-adjusted, are a testament to the robustness of our investment framework during challenging market environments. Innealta focuses on investing, not marketing. And as simple as that sounds, I think it is the recipe for our success.” Speaking about the future, Josh Kocher stated, “Equity market valuations are at or near record highs, monetary and fiscal policy support at record levels, and interest rates around the world are at record lows. Consequently, we expect the returns of the traditional 60-40 portfolio will not satisfy the needs of many investors and episodic volatility similar to that of March 2020 will occur more frequently. Thus, we feel active management will be critical for investors seeking to achieve their financial goals, particularly managing risk.” We believe investors looking for a core international markets solution should consider ICCIX. Its primary goal is capital appreciation. Innealta believes that thoughtful international diversification allows for both capital appreciation and risk management. ICCIX achieves that diversification by investing across 40+ individual-country equity markets. Additionally, it utilizes international fixed income to modulate risk. Innealta trusts this approach allows the Fund to capture the best of international markets: developed markets stability, emerging markets opportunities, foreign currency upside, and fixed income reliability. For the one-year, three-year, five-year, and since-inception (12/30/2011) periods ending 12/31/2020, ICCIX returned 27.20%, 5.17%, 9.72% and 5.28%, MSCI All Country World Index ex-USA returned 10.65%, 4.88%, 8.93%, and 7.22%, and Morningstar's Foreign Large Blend Category returned 8.88%, 4.14%, 7.36%, 7.25%, annualized, respectively. Current performance may be lower or higher than the data cited above. Investment return and principal value will fluctuate. When redeemed, shares may be worth more or less than their original cost. For most recent month end performance information, please call 855.994.2326. Total annual operating expenses for Class I and Class N shares are 1.76% and 2.01%, respectively. The Adviser has agreed to waive fees and/or absorb expenses such that total annual operating expenses do not exceed 1.24% and 1.49% for Class I and Class N shares, respectively, through 04/30/2021. Past performance is no guarantee of future results. Important Fund Information © 2020 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Morningstar Percentile Rankings are based on the average annual total returns of the funds in the category for the periods stated and do not include any sales charges or redemption fees. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. Morningstar ranked ICCIX in the top 1%, 24% and 9% based on total returns, out of 771, 665, and 576 funds respectively, in the Foreign Large Blend Category, for the 1, 3, and 5-year periods ending 12/31/2020. The MSCI ACWI ex US NR Index captures large- and mid-cap representation across 22 of 23 Developed Markets countries (excluding the US) and 26 Emerging Markets countries. Unmanaged index returns do not reflect any fees, expenses, or sales charges, and it is not possible to invest directly in an index. Mutual Funds involve risk including the possible loss of principal. There is no guarantee that the investment process used by the adviser will achieve its objectives, generate positive returns or avoid loss. Investors should carefully consider the investment objectives, risks, charges and expenses of the Innealta Funds. This and other important information about the Funds is contained in the prospectus, which can be obtained by calling 855.994.2326. The prospectus should be read carefully before investing. The Innealta Funds are distributed by Northern Lights Distributors, LLC a FINRA/SIPC member. Innealta Capital, LLC is not affiliated with Northern Lights Distributors, LLC. 1. Performance, annualized standard deviation of monthly returns, and maximum drawdown calculated using daily returns from 12/31/2019 to 12/31/2020. Innealta Capital, LLC is an independent registered investment advisor and is the investment advisor for certain mutual funds and individually managed client accounts. Investing involves risk, principal loss is possible, and there can be no assurance that investment objectives will be achieved. Past performance is no guarantee of future results. Innealta Capital, LLC only transacts business in states where it is properly registered or exempt from registration. Registration of an investment adviser does not imply any certain level of skill or training. 674-INN-01/05/2021 3008-NLD-1/5/2021