DF Tactical Yield Fund
Ticker: FLOAX • FLOCX • FLOTX
Fund Goal
The Fund has the primary objective of maximizing total return from income and capital appreciation with the preservation of capital a secondary objective.
Potential Benefits
- Seeks attractive current income and preservation of capital during market declines
- Invests in fixed income instruments with lower sensitivity to interest rate risk
- Employs tactical overlays to attempt to potentially reduce significant market drawdowns
*There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.
Model Selection Process
%
Invested or Defensive
%
Invested or Defensive
Short-term signal
Intermediate-term signal
Performance
| Fund Prices & YTD Returns as of December 12, 2025 | Performance Through December 12, 2025 | Average Annual Returns Through September 30, 2025 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DF Tactical Yield Fund Class A | ||||||||||||
| NAV | NAV Daily Change | % Daily Change(1) | % YTD Return(2) | One Month | Three Months | Six Months | Since Inception(4) | One Year | Three Years | Five Years | Ten Years | Since Inception(4) |
| $9.63 | ($0.01) | -0.10% | 2.04% | 0.52% | 1.07% | 3.11% | 3.28% | 2.90% | 6.37% | 4.09% | N/A | 3.26% |
| With Sales Charge(3) | -4.46% | -3.96% | -2.05% | 2.61% | -2.24% | 4.58% | 3.04% | N/A | 2.57% | |||
| DF Tactical Yield Fund Class C | ||||||||||||
| NAV | NAV Daily Change | % Daily Change(1) | % YTD Return(2) | One Month | Three Months | Six Months | Since Inception(4) | One Year | Three Years | Five Years | Ten Years | Since Inception(4) |
| $9.18 | ($0.01) | -0.11% | 0.99% | 0.44% | 0.83% | 2.66% | 2.18% | 1.50% | 4.52% | 2.66% | N/A | 2.15% |
| DF Tactical Yield Fund Class I | ||||||||||||
| NAV | NAV Daily Change | % Daily Change(1) | % YTD Return(2) | One Month | Three Months | Six Months | Since Inception(4) | One Year | Three Years | Five Years | Ten Years | Since Inception(4) |
| $9.30 | ($0.01) | -0.11% | 2.04% | 0.54% | 1.06% | 3.24% | 3.19% | 2.50% | 5.54% | 3.71% | N/A | 3.16% |
- Represents the percentage increase/decrease in the net asset value from the prior trading day.
- Performance for periods less than one year is not annualized.
- The maximum sales charge for Class A Shares is 5.00%. Class A Share investors may be eligible for a reduction in sales charges.
- Inception date of the Class A, I & C shares is December 27, 2017.
The Fund’s total annual operating expenses is 2.17% for Class A shares, 2.92% for Class C shares, 1.92% for Class I shares.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. Please review the fund’s prospectus for more information regarding the fund’s fees and expenses. For performance information current to the most recent month-end, please call toll-free 877-779-7462.
Portfolio Statistics
| Class A Shares | Class C Shares | Class I Shares |
|---|---|---|
| Cusip Number: 66538J795 | Cusip Number: 66538J787 | Cusip Number: 66538J779 |
| Ticker: FLOAX | Ticker: FLOCX | Ticker: FLOTX |
| Fund Assets*: $9.0MM | Fund Assets*: $0.5MM | Fund Assets*: $43.7MM |
*As of 9/30/2025
| Class A Shares | Class C Shares | Class I Shares | |
|---|---|---|---|
| Min. Investment | $1,000 | $1,000 | $10,000 |
| Subsequent Min. | $100 | $100 | $0 |
Model Selection Process Details
The DF Tactical Yield Fund (The Fund) tracks a proprietary model identified in the Fund’s prospectus. It is a rules-based strategy that employs tactical overlays driven by multiple technical signals to determine whether the Fund will be in a bullish or defensive posture.
The Fund uses a short-term and an intermediate-term tactical overlay to determine whether to be in a bullish or defensive posture. Each tactical overlay will trigger 50% of the Fund into a defensive position, should market conditions warrant. When in a defensive position, the Fund will be invested in short-term U.S. Treasury ETFs.
When bullish, the Fund will direct investments into a selection of Floating Rate and High Yield mutual funds and ETFs. Additionally, when in a bullish posture, the Fund will rebalance holdings and reconstitute annually.
Investment Committee
John A. Forlines, III • Jeffrey R. Thompson • Richard E. Molari
Investment Advisor to the Fund
Donoghue Forlines LLC is a tactical investment firm that has specialized in risk-managed portfolios since 1986. Our tactical strategies are based upon rigorous analysis of decades of historical data. The Donoghue Forlines Funds utilize technical indicators to recognize shifts in market momentum and uses proprietary tactical signals to help mitigate losses in down trending markets and potentially offer strong client-centric risk-adjusted returns over a full market cycle.
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Donoghue Forlines LLC | 125 High Street, Suite 220 | Boston, MA 02110 | 1.800.642.4276
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Donoghue Forlines Funds. This and other information about the Funds are contained in the prospectus and should be read carefully before investing. The prospectus can be obtained by calling toll free 1-877-779-7462.
The Donoghue Forlines Funds are distributed by Northern Lights Distributors, LLC. Member FINRA / SIPC. Donoghue Forlines LLC is not affiliated with Northern Lights Distributors, LLC.
Important Risk Information
Mutual funds involve risk including the possible loss of principal. The net asset value of the Fund will fluctuate based on changes in the value of the securities in which it invests. The Fund operates as a fund of funds. Underlying Funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, your cost of investing may be higher than the cost of investing directly in Underlying Funds and may be higher than other mutual funds that do not invest in Underlying Funds. The Fund seeks to track a proprietary model that allocates to short-term Treasury ETFs, money market funds or US Treasury securities based on a defensive indication from technical trends in the exponential moving average of a blend of two fixed income indexes. The exponential moving average is the average of the index’s value over a certain time frame. Diversification does not ensure a profit or guarantee against a loss.
Bank Loan Risk
The market for bank loans may not be highly liquid and the Fund may have difficulty selling them. These investments expose the Fund to the credit risk of both the financial institution and the underlying borrower. Bank loans settle on a delayed basis, potentially leading to the sale proceeds of such loans not being available to meet redemptions for a substantial period of time after the sale of the bank loans.
Credit Risk
There is a risk that issuers will not make payments on fixed income securities held by the Fund or an ETF in which the Fund invests, resulting in losses to the Fund. In addition, the credit quality of fixed income securities may be lowered if an issuer’s financial condition changes. The issuer of a fixed income security may also default on its obligations.
ETF and Mutual Fund Risk
ETFs and mutual funds are subject to investment advisory fees and other expenses, which will be indirectly paid by the Fund. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in ETFs and other mutual funds and may be higher than other funds that invest directly in equity and fixed income securities. Each ETF and mutual fund is subject to specific risks, depending on the nature of the fund. ETF shares may trade at a discount to or a premium above net asset value if there is a limited market in such shares. ETFs and index-tracking mutual funds in which the Fund invests will not be able to replicate exactly the performance of the indexes they track. ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to the Fund.
Floating Rate Risk
Changes in short-term market interest rates will directly affect the yield on the shares of a fund whose investments are normally invested in floating rate debt. If short-term market interest rates fall, the yield on the Fund’s shares will also fall. Conversely, when short-term market interest rates rise, because of the lag between changes in such short-term rates and the resetting of the floating rates on the floating rate debt in the Fund’s portfolio, the impact of rising rates will be delayed to the extent of such lag.
Interest Rate Risk
Interest rate risk is the risk that fixed income security prices overall, including the prices of securities held by the Fund or an ETF in which the Fund invests, will decline over short or even long periods of time due to rising interest rates. Bonds with longer maturities tend to be more sensitive to interest rates than bonds with shorter maturities.
Junk Bond Risk
Lower-quality bonds, known as “high yield” or “junk” bonds, and present greater risk than bonds of higher quality, including an increased risk of default. An economic downturn or period of rising interest rates could adversely affect the market for these bonds and reduce the Fund’s ability to sell its bonds. The lack of a liquid market for these bonds could decrease the Fund’s share price.
Underlying Funds Risk
If short-term treasury exchange traded funds or money market funds (“Underlying Funds”) are utilized, such Underlying Funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in Underlying Funds and may be higher than other mutual funds that do not invest in Underlying Funds. The Fund will only utilize short-term treasury exchange-traded funds and money market mutual funds when it is in a defensive position.
U.S. Treasury Risk
The Fund has investment exposure to short-term U.S. Treasury securities through its investment in short-term treasury exchange-traded funds or direct investment in U.S. Treasury securities. All money market instruments, including U.S. Treasury obligations, can change in value in response to changes in interest rates, and a major change in rates could cause the share price to change. While U.S. Treasury obligations are backed by the full faith and credit of the U.S. government, an investment in the Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation, U.S. government or any other government agency.
Definitions
Volatility refers to the degree of fluctuation or uncertainty in the price of an asset over a specific period.
Tactical overlay is a technique that uses trend following technical indicators to modify a portfolio’s risk and return characteristics.
Market Drawdown is defined as the largest percentage decline an investment experiences from its peak value to its lower value before it recovers to that peak again.