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Fund Characteristics

How This Fund Fits Into A Portfolio
The Fund should be used to make up the U.S. Small and Mid-Cap Cap stock allocation of an investor’s portfolio.

Fund Description
Our primary objective is to participate in Small and Mid-Cap gains, but to avoid significant losses. Our research shows that virtually all stock market declines of significance are preceded by periods of negative, more moderate price decreases. Our fund attempts to exit Small and Mid-Cap Stocks during the preliminary phase of the decline, before large losses are realized. When stocks are rising, our fund is fully invested and attempts to track in equal parts the Russell 2000 Index and the S&P 400 Mid-Cap index. During significant long term declines, the Fund attempts to mimic the return of money market instruments and avoid the majority of losses.

When not in a defensive position, the representative securities in the Fund are reflected above
*There can be no assurance that this objective will be met. See disclosures below.


The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the fund, at least until August 31, 2011, to ensure that the net annual fund operating expenses will not exceed 1.35%, subject to possible recoupment from the Fund in future years. Please review the Fund’s prospectus for more detail on the expense waiver. Total annual fund operating expenses are 1.7% minus the advisor waiver of .35% equaling a net expense ratio of 1.35%. Results shown reflect the waiver, without which the results could have been lower. A Fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. For performance information current to the most recent month-end, please call toll-free 877-558-6397.

The Statistics presented are defined as follows. Annualized Return is the geometric mean of the returns with respect to one year. Standard Deviation measures the average deviations of a return series from its mean, and is often used as a measure of risk. Downside Risk is calculated in the same manner as Standard Deviation, but only those observations below the mean are used in the calculation. Beta is a measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager’s return series to match that of the benchmark used to measure beta. Maximum Drawdown measures the largest percentage decline from a peak to a trough.
The index shown is defined as follows. The Russell 2000 and S&P Midcap are widely recognized, unmanaged index of common stock prices. All Benchmarks composite data supplied by third party vendors, assumes re-investment of all dividends.

*There can be no assurance that this objective will be met. See disclosures below.
**The net annual operating expense is 1.25% plus acquired fund fees of .10% (when combined, the total fee is 1.35%)

The fund may invest in small, less well-known companies, which may be subject to more erratic market movements than large-cap stocks; derivative securities, covered call and put option risk which may carry market, credit, and liquidity risks. These risks may result in greater share price volatility. The Fund may invest in ETF’s. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in ETF shares and may be higher than other mutual funds that invest directly in stocks and bonds. You will indirectly bear fees and expenses charged by ETF’s in addition to the Fund’s direct fees and expenses. The Fund may execute an investment strategy or hedge by entering into derivative contracts such as futures and swaps, which can be riskier than traditional investments. When the adviser believes market conditions are unfavorable, the adviser may attempt to “hedge” with defensive positions and strategies including holding substantial positions in foreign or domestic fixed-income securities and/or cash equivalents, which may limit potential gains when compared to unhedged funds. Russell 2000: is an unmanaged index that is a widely recognized indicator of small capitalization company performance. S&P 400 Mid-Cap Index: is composed of 400 common stocks issued by U.S. mid-capitalization companies in a wide range of businesses and is generally considered to broadly represent the performance of publicly traded U.S. mid-capitalization stocks.

Mutual Funds involve risk including possible loss of principal. An investor should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. This and other information about the Fund is contained in the Fund’s prospectus, which can be obtained by calling 877-558-6397. Please read the prospectus carefully before investing. The Toews Hedged Small & Mid Cap Fund is distributed by Northern Lights Distributors LLC, member FINRA. Toews Corporation is not affiliated with Northern Lights LLC.

NLD Review Code: 0890-NLD-6/23/2010

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