NDNCX — Navigator Duration Neutral Bond Fund

NDNCX Fund Overview

NDNCX — Navigator Duration Neutral Bond Fund is a US mutual fund managed by Northern Lights Fund Trust, categorised as Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Northern Lights Fund Trust
• Category: Bond
• Assets under management: $55.82M
• Ticker: NDNCX
• SEC CIK: 0001314414
• SEC series ID: S000041821
• Share class ID: C000129858

NDNCX Investment Objective and Strategy

Navigator Duration Neutral Bond Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Northern Lights Fund Trust.

Investment objective

The Fund seeks to maximize total return, which is comprised of income and capital appreciation, while hedging interest rate exposure.

Principal investment strategy

Under normal circumstances, the Fund invests at least 80% of its assets (defined as net assets plus any borrowing for investment purposes) in bond instruments. The Fund will invest primarily in municipal bond instruments. The Fund intends to be duration neutral, meaning it seeks to provide exposure to the municipal bond market while protecting against loss of principal when interest rates rise. The Fund is non-diversified, which means that it can invest a greater percentage of its assets in any one issuer than a diversified fund. The Fund defines bond instruments to include bonds such as municipal bonds, and U.S. Treasury bonds and notes; derivatives based on bonds, such as futures or options on U.S. Treasury Bonds and Notes; and other investment companies, including exchange traded funds or closed-end funds (Underlying Funds), that invest primarily in municipal bonds.

The Fund may invest in municipal bond instruments that are not tax advantaged and which may provide taxable income. The 80% bond investment policy can be changed without shareholder approval, however, shareholders would be given at least 60 days notice prior to any such change. Duration is the measure of a bonds sensitivity to interest rate risk changes. Generally the longer the duration, the more sensitive a bond is to interest rate changes. By maintaining both long and short positions, the Fund expects to be able to isolate and neutralize price shifts resulting from changing interest rates, so that the Fund is duration neutral. The Fund seeks to hedge the portion of the value of the municipal bond instruments subject to interest rate risk through investments in: ? U.S. Treasury Bonds and Notes; ?

Futures and Options on U.S. Treasury Bonds and Notes; ? Futures and Options on LIBOR Swaps; and ? Other mutual funds, exchange traded funds (ETFs) or closed-end funds (collectively, Underlying Funds), including inverse or leveraged ETFs. Bond Selection The Adviser uses a trading strategy based on its proprietary model to take advantage of value in the municipal bond market, by seeking investments it believes are undervalued. Using this model the Adviser expects the Fund to invest in securities of a particular municipal bond market or category when trends are favorable or, conversely, sell securities in that municipal bond market or category when trends are unfavorable. The Fund will invest primarily in investment grade bonds, rated at least Baa3 or higher by Moodys, BBB- or higher by Standard & Poors, or BBB- or higher by Fitch Ratings at the time of purchase.

However, there is no limitation or maximum maturity on the Funds investments and the Adviser expects to invest in bonds issued throughout the U.S., with various maturities. Riskless Rate Offset The Adviser believes every bond has embedded in its value a riskless interest rate and it uses a proprietary method of evaluating the amount of riskless interest rate for the base currency (U.S. dollar) embedded in the municipal bond holdings of the Fund, then expects to offset any interest rate risk through the sale of one of a series of instruments that exemplifies this riskless rate, like U.S. Treasury Bond futures contracts that trade on the Chicago Mercantile Exchange (CME). By hedging against the risk of rising interest rates through its duration neutral approach, the Fund seeks to avoid principal loss when interest rates rise.

The adviser may engage in frequent buying and selling of securities to achieve the Funds investment objective. The Fund may borrow money from banks to help manage Fund inflows and outflows, such as to avoid having to sell portfolio investments in order to meet net redemptions. The Fund also may borrow money from banks to make additional portfolio investments when the Adviser believes market conditions are appropriate. The Fund may borrow an amount equal to as much as one-third of the value of its total assets (which includes the amount borrowed).

NDNCX Costs and Fees

NDNCX costs about $208 per $10,000 invested per year in fund expenses.

• Net expense ratio: 2.08%
• Gross expense ratio: 2.08%
• Portfolio turnover: 156%
• Brokerage commissions: 0.62 bps of average net assets (SEC N-CEN)

NDNCX Cashflows

Over the 12 months to 2020-04, Navigator Duration Neutral Bond Fund had net inflows of $15.27M, from monthly SEC N-PORT filings.

NDNCX Debt Constituents

No individual debt constituents are reported in Navigator Duration Neutral Bond Fund's latest SEC N-PORT filing.

NDNCX Prospectus and SEC Filings

Official Navigator Duration Neutral Bond Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-03-03
• Prospectus (485BPOS) — filed 2019-02-01
• Prospectus supplement (497) — filed 2020-08-07
• Portfolio holdings (N-PORT) — filed 2020-06-23
• Annual census (N-CEN) — filed 2020-01-14
• Annual census (N-CEN) — filed 2019-01-09
• Annual census (N-CEN) — filed 2018-12-14

Related Funds

Other Bond funds tracked on ABC INVEST:

• Great-West T. Rowe Price Equity Income Fund (MXTQX)
• Absolute Return Currency Fund (JCUAX)
• ICON Flexible Bond Fund (IOBCX)
• Tributary Growth Opportunities Fund (FOGRX)
• Oakhurst Fixed Income Fund (FWFIX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.