Coming into 2023, the Fund was very defensively positioned with a variety of shorts and hedges. At year-end, our dynamic hedge model was targeting 0% market exposure. If one looked at the charts, it appeared a retest of the October lows was likely. But Mr. Market loves to keep investors on their toes, and as soon as something looks obvious—it usually isn’t.

Four days into January, a better-than-expected Nonfarm Payrolls report sparked a wave of short-covering that morphed into an upside rout for the bears. Some pundits exclaimed it was the start of a new bull market. But from our vantage point, we still don’t have all the pieces in place to make that call yet. By most measures, like many of the rallies of 2022, this latest rally was led by very low-quality stocks. To wit, the Goldman “most heavily shorted” index rose +21% in January alone. The Roundhill “meme stock” index rose +25%. And so on. But an index like the Dow, supposedly made up of quality, blue chips stock, rose less than 3% for the month.

Past performance does not guarantee future results

That type of action makes it difficult for a manager that prefers to own quality stocks versus chasing low-quality stocks higher purely on the basis of momentum. But we continue to scan for high quality stocks that are just starting to lead the market and could offer potential new leadership in the next upcycle. That is the bread and butter of our strategy, and we have been waiting many years for a new cycle led by a new group of leaders.

When the market starts to rally and the Fund is fully hedged, the first order of business is to cut our losses on short positions and reduce hedges. We did this in the early part of January, but our market exposure never really got much above 60% during the month, due to the technical position of the market and our hedge model. But we were able to recoup the early losses and get into positive return territory.

We know that there is plenty of time left in 2023, and likely plenty of volatility ahead as well. The yield curve remains highly inverted and signals recession. Earnings estimates continue to be revised lower, leaving the P/E multiple on the market pretty elevated. And the Fed is still raising interest rates, and still reducing its balance sheet (QT) and slowing the money supply with restrictive monetary policy. Don’t fight the Fed?

But while we are cautioning in the near-term, we think the market is getting closer to putting in its final bottom for this down cycle. And from there we are extremely excited about the prospect of finding the next market leaders that are not yet household names. As portfolio managers, the early part of a new bull market is always the most exciting – and the most fruitful.

Thank you for your continued support–

Sincerely,

Jordan L. Kahn, CFA
Chief Investment Officer

Sources: Standard & Poor’s, Stockcharts.com, Morningstar Briefing.com

Performance is historic and does not guarantee future results. Investment principal value will fluctuate so that when redeemed, shares may be worth more or lessthan their original cost. Current performance may be lower or higher than the performance dataquoted. To obtain the most recent month end performance information or the Fund’s prospectus pleasecall the Fund at 1-844-798-3833. You can also obtain a prospectus at www.ACM-funds.com.

Defined Terms: S&P 500 Index- The S&P 500 index is an unmanaged composite of large capitalization companies. This index is widely used by professional investors as a performance benchmark for large-cap stocks. HFRX Equity Hedge Index– tracks strategies that maintain positions both long and short in primarily equity and equity driven securities. Morningstar Long/Short Equity Category- A composite of returns produced by Morningstar which can be used to compare the returns of other mutual funds in the same category. Long– the holder of the position owns the security and will profit if the price of the security goes up. Short- Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is motivated by the belief that a security’s price will decline, enabling it to be bought back at a lower price to make a profit. Derivative hedge – transaction that limits investment risk with the use of derivatives such as option contracts.

Investors are not able to invest directly in the indices referenced and unmanaged index returns do not reflect any fees, expenses or sales charges. For current performance information, please visit our performance page: https://acm-funds.com/dynamic-fund-performance/

There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.

ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few. Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards.

6091-NLD-02/28/2023

Fund Overview

We strive to help our investors participate in the gains available from financial markets, while mitigating the downside risk

The ACM Dynamic Opportunity Fund is designed as a core investment for investors seeking long term capital appreciation with a short-term focus on  capital preservation. The fund employs a dynamic strategy, which aims to actively participate during a rising market environment and mitigate downside  risk when markets experience downturns.

Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment principal value will fluctuate so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the Fund’s prospectus please call the Fund at 1-844-798-3833. You can also obtain a prospectus at www.ACM-funds.com.

The fund’s maximum sales charges for Class “A” shares is 5.75%. Gross expense ratios are 2.07% for Class A shares and 1.82% for Class I Shares. The Adviser has contractually agreed to reduce its fees and reimburse expenses of the Fund, at least Until April 30, 2022, to ensure that the net annual fund operating expenses will not exceed 2.40% for Class A shares and 2.15% for Class I shares.

These fee waivers and expense reimbursements are subject to possible recoupment from each Fund within three years after the fees have been waived or reimbursed. You should be aware that the Fund’s past performance (before and after taxes) may not be an indication of how the Fund will perform in the future. Although Class A Shares would have similar returns to Class I shares because the classes are invested in the same portfolio of securities, the returns for Class A shares are different from Class I shares because Class A shares have different expenses than Class I shares. Updated performance information is available at no cost by visiting www.ACM-funds.com or by calling 1-8444-798-3833.  Actual Total Annual Operating Expenses of 1.95% for Class A and 1.70% for Class I from the prospectus.

Sector Weightings

As of 1/31/2023

There is no assurance that the Fund will achieve its investment objectives.

Mutual Funds involve risk including possible loss of principal. Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund’s investments. ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few. Investments in underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations. Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Investments in foreign securities could subject the Fund to greater risks including currency fluctuation, economic conditions, and different governmental and accounting standards. In addition to the risks generally associated with investing in securities of foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues.

Investors bear the risk that the Fund may not be able to implement its investment strategies or attract sufficient assets. Purchased put options may decline in value or expire worthless and may have imperfect correlation to the value of the Fund’s portfolio securities. Written call and put options may limit the Fund’s participation in equity market gains and may amplify losses in market declines. The Fund’s losses are potentially large in a written put or call transaction. If unhedged, written calls expose the Fund to potentially unlimited losses. The Fund will incur a loss as a result of a short position if the price of the short position instrument increases in value between the date of the short position sale and the date on which an offsetting position is purchased. Short positions may be considered speculative transactions and involve special risks, including greater reliance on the ability to accurately anticipate the future value of a security or instrument. The Fund’s losses are potentially large in a short position transaction.

Price to Earnings (P/E) is a valuation ratio of a company’s current share price compared to its per share earnings. Gross Long and Short Exposure is the percentage in securities that are expected to rise and decline, respectively. Beta is a measure of systemic risk. Standard Deviation is a statistical measurement. It sheds light on the historical volatility of that investment. The greater the standard deviation of a security, the greater the variance between each price and the mean, indicating a larger price range. Treynor ratio – A performance metric for determining how much excess return was generated for each unit of risk taken on by a portfolio. HFRX Equity Hedge Index – tracks strategies that maintain positions both long and short in primarily equity and equity driven securities. S&P 500 Index – tracks 500 individual stocks chosen for market size, liquidity and industry grouping, among other factors.

Investors are not able to invest directly in the indices referenced in this illustration and unmanaged index returns do not reflect any fees, expenses or sales charges.