Altegris/AACA Opportunistic Real Estate Fund

The Fund seeks to achieve total returns by accessing an experienced long-biased real estate manager who invests in companies that own real assets, which may also provide a potential inflation hedge and durable income stream.

Reasons to Invest

Exposure to the potential key benefits of the Fund includes:



The Fund is subject to various risks including, but not limited to, credit risk, derivatives risk, equity markets risk, exchange-traded funds risk, foreign investment risk, high yield or junk bond risk, issuer-specific risk, leverage risk, limited history of operations risk, management risk, market risk, non-diversification risk, preferred stock risk, real estate securities risk, REIT risk, sector concentration risk, short selling and short position risk, small and medium capitalization company risk, and turnover risk.

Long is buying an asset/security that gives partial ownership to the buyer of the position. Long positions profit from an increase in price. Short is selling an asset/security that may have been borrowed from a third party with the intention of buying back at a later date. Short positions profit from a decline in price. If a short position increases in price, the potential loss on an uncovered short is unlimited.

See the Glossary for term definitions.

Fund NAV & AUM

Fund Facts

Class A*Class IClass N
SymbolRAAAXRAAIXRAANX
Inception01/09/1401/09/1401/09/14
Investment Minimum$2,500$1,000,000$2,500
Subsequent Investment$250$250$250
Gross Expense Ratio3.40%3.15%3.40%
Net Expense Ratio3.33%3.08%3.33%
Expense Cap1.80%1.55%1.80%

The Fund's adviser has contractually agreed to reduce its fees and to reimburse expenses, at least until December 31, 2018 to ensure that total annual Fund operating expenses after fee waiver and reimbursement will not exceed 1.80%, 1.55%, and 1.80% of average daily net assets attributable to Class A, Class I, and Class N shares, respectively, subject to possible recoupment in future years. This agreement may be terminated only by the Fund's Board of Trustees, on 60 days written notice to the Fund’s adviser.

*The maximum sales charge for Class A shares is 5.75%. Class A share investors may be eligible for a reduction in sales charges. See the Prospectus for more information.

Of course, there is no guarantee that any investment will achieve its objectives, generate profits or avoid losses.



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Historical Returns & NAV

*The maximum sales charge for Class A shares is 5.75%. Class A share investors may be eligible for a reduction in sales charges. See the Prospectus for more information.

(1) Represents the percentage increase/decrease in the net asset value from the prior trading day. For Class A with load, represents the percentage increase/decrease of the net asset value from the prior trading day's maximum offering price.

(2) Performance for periods longer than one year is annualized.

(3) Inception date of the Predecessor Fund was February 1, 2011.

The total annual fund operating expense ratio, gross of any fee waivers or expense reimbursements, is 3.40% for Class A, 3.15% for Class I and 3.40% for Class N.

The Altegris/AACA Opportunistic Real Estate Fund is a newly registered mutual fund. It is important to note that the Fund inherited the track record of its predecessor, the American Assets Real Estate Securities, L.P. ("Predecessor Fund"), which was managed by AACA, the Fund's sub-adviser. The Predecessor Fund was not registered under the Investment Company Act of 1940. The Predecessor Fund, since its inception on February 1, 2011, was managed by AACA in the same style, and pursuant to substantially identical real estate long short strategies, investment goals and guidelines, as are presently being pursued on behalf of the Fund by AACA as its sub-adviser.

The performance returns quoted for periods prior to 1/9/2014 is that of the Predecessor Fund (while it was a limited partnership), and is net of applicable management fees, performance fees and other actual expenses of the Predecessor Fund. From its inception on February 1, 2011, the Predecessor Fund was not subject to the same investment restrictions, diversification requirements, limitations on leverage and other regulatory or Internal Revenue Code restrictions of the Fund, which might have adversely affected its performance. In addition, the Predecessor Fund was not subject to sales loads which are applicable to certain classes of Fund shares, which would have reduced returns.

The performance data quoted here represents past performance, which is no guarantee of future results. 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 costs. The Fund’s adviser has contractually agreed to reduce its fees and to reimburse expenses, at least until December 31, 2018, to ensure that total annual Fund operating expenses after fee waiver and/or reimbursement will not exceed 1.80%, 1.55%, and 1.80% of average daily net assets attributable to Class A, Class I, and Class N shares, respectively, subject to possible recoupment in future years. Fund results shown reflect the waiver, without which the results would 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 (888) 524-9441.

Effective September 8, 2016, the fund changed its name to the Altegris/AACA Opportunistic Real Estate Fund to more closely align with the investment objectives of the fund. The principal investment strategies and risks have not changed.

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The Fund seeks to achieve total returns by accessing an experienced long-biased real estate manager who opportunistically invests in companies that own real assets, which may provide a potential inflation hedge and durable income stream.


Investment Philosophy

AACA* employs a long/short real estate strategy that invests in real estate investment trusts (REITs) and real estate companies. AACA focuses on owning companies in sectors where the tenant is denied choice, exhibited by few sector participants, high barriers to entry/exit, and high secular demand. This type of real estate is believed to perform better over time because it is more difficult to supply, demand is less cyclical, and tenants are reluctant to leave. As a result, the portfolio’s composition consists primarily of owning quality assets in “A” quality locations.

Investment Process

Sector Selection

Sector selection forms the foundation of AACA’s investment strategy, as it focuses on owning companies in real estate sectors where the tenant is denied choice. The characteristics which create this situation are:

  • Few sector participants (i.e., oligopoly or duopoly)
  • High barriers to entry for new owners/developers
  • High barriers to exit for tenants
  • High secular demand drivers for tenant or users

Sector Landscape

Sector attractiveness is subject to change at any time in response to market conditions and/or viewpoint of the sub-adviser and should not be construed as investment advice.

In sourcing both long and short investments, AACA screens companies and their securities with reference to factors including, but not limited to:

  • Value and characteristics of underlying real estate ownership
  • Reliability and performance of management teams
  • Valuation of securities issued by the companies
  • Financial analysis
  • Transparency of reporting
  • Liquidity

AACA screens and re-screens securities looking for relative under- and overvaluation as compared primarily to underlying or intrinsic net asset value, and remains flexible to adjust as economic environments and specific conditions of a company’s buying, selling, building or managing of real estate assets and locations may change.

Investment Adviser

Altegris Advisors, L.L.C.

Sub-Adviser

American Assets Capital Advisers, LLC (AACA)
Sub-Adviser Portfolio Manager

Burland B. East III, CFA, Chief Executive Officer and Portfolio Manager

Other Important Information

Of course, there is no guarantee that any investment will achieve its objectives, generate profits or avoid losses.

1213-NLD-11/6/2018
Current

Altegris/AACA Opportunistic Real Estate Fund

Fund Documents
Monthly Performance Update
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Quarterly Fact Sheet
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Quarterly Fund Commentary
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Estimated 2019 Distributions
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Summary Prospectus
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Prospectus
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SAI
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Annual Report
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Semi-Annual Report
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XBRL
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Forms & Applications
Regular Application
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IRA Application
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Simple IRA Application
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IRA Transfer of Assets
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IRA Custodial Agreement/Disclosure Statement
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Roth IRA Custodial Agreement/Disclosure Statement
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Class A

Dividends [Schedule: Quarterly]

Record Date Ex‑Date Payable Date Reinvestment
Price (NAV) 		Dividend
per Share
12/19/2017 12/20/2017 12/20/2017 $15.83 $0.0477
9/28/2016 9/29/2016 9/29/2016 $12.93 $0.0323
12/14/2015 12/15/2015 12/15/2015 $11.02 $0.0917
06/26/2015 06/29/2015 06/29/2015 $12.04 $0.0216
03/27/2015 03/30/2015 03/30/2015 $12.91 $0.0168
09/26/2014 09/29/2014 09/29/2014 $11.46 $0.0212


Capital Gains [Schedule: Annually]

Record Date Ex‑Date Payable Date Reinvestment
Price (NAV) 		Short‑Term Long‑Term
12/18/2018 12/19/2018 12/19/2018 $12.81 $0.3001 $0.2122
12/14/2015 12/15/2015 12/15/2015 $11.02 $0.0000 $0.4228
12/12/2014 12/15/2014 12/15/2014 $11.62 $0.3657 $0.0282

Fund distributions will vary depending upon market conditions and number of shares outstanding. All dates and distributions are subject to board approval. Past distributions are no guarantee of future distributions or performance results.

This information is not intended to cover the complexities of a shareholder's individual tax situation. Because tax laws vary among states, you should consult your tax advisor about the specific rules in the state(s) in which you pay income taxes.

Performance quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than performance data shown. Investment return and principal will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month end, please call (888) 524-9441.

Record date is the date by which a shareholder must own fund shares to receive the distribution. Ex-date is the date on which a shareholder who purchases fund shares will not be eligible to receive the distribution. Payable date is the date on which a shareholder is paid the distribution.

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