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100 Market Street, Suite 300
Portsmouth, NH 03801
United States

info@wam.com

781-416-4000

   

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Definitions:

Alpha - in finance is a measure of an investment's performance, indicating its ability to generate returns in excess of a benchmark index, often referred to as an investment's "edge" or "active return". A positive alpha shows the investment outperformed the benchmark, while a negative alpha indicates underperformance, typically used to evaluate the skill of portfolio managers.
 

About Risk
All fixed-income securities are subject to two types or risk: credit risk and interest rate risk. When the general level of interest rates goes up, the prices of most fixed-income securities go down. When the general level of interest rates goes down, the prices of most fixed-income securities go up. A portion of the Fund’s securities may be rated below investment grade. Lower rated fixedincome securities are subject to greater risk of loss of income and principal than higher-rated securities. The prices of lower rated bonds are likely to be more sensitive to adverse economic changes or individual corporate developments. Investments in convertible securities subject the Fund to the risks associated with both fixed-income securities and common stocks. Exchangeable and synthetic convertible securities may be more volatile and less liquid than traditional convertible securities. In general, stock and other equity security values fluctuate, and sometimes widely fluctuate, in response to activities specific to the company as well as general market, economic and political conditions. The Fund may invest a significant amount of its assets in a particular industry, market, or sector. The value of its shares may be more susceptible to adverse changes within that market or sector than a Fund that does not focus its investments in a particular industry, market or sector.

Mutual Funds involve risk including the possible loss of principal. The Fund is a new mutual fund and has a limited history of operations for investors to evaluate. If the market price of the underlying common stock increases above the conversion price on a convertible security, the price of the convertible security will increase. Convertible bonds are subject to risks associated with both debt securities and equity securities. The Fund is exposed to credit risks that the counterparty may be unwilling or unable to make timely payments or otherwise to meet its contractual obligations. The derivative instruments in which the Fund may invest either directly or through an underlying fund, may be more volatile than other instruments. In general, the price of a fixed income security falls when interest rates rise. Leveraging generally exaggerates the effect on NAV of any increase or decrease in the market value of the Fund’s portfolio securities. 

The Fund's investments in illiquid securities may reduce the returns of the Fund because it may be unable to sell the illiquid securities at an advantageous time or price. By writing call options, the Fund is subject to the risk of counterparty default, as well as the potential for unlimited loss. Increased portfolio turnover may result in higher brokerage commissions, dealer mark-ups and other transaction costs and may result in taxable capital gains. If any private placement security held by the Fund should become illiquid, the value of the security may be reduced and a sale of the security may be more difficult. U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors. The securities of small- and mid-capitalization companies may be more volatile and less liquid than those of large-capitalization companies. Swaps are a type of derivative. Swap agreements involve the risk that the party with which the Fund has entered into the swap will default on its obligation to pay the Fund and the risk that the Fund will not be able to meet its obligations to pay the other party to the agreement. The federal income tax treatment of convertible securities or other securities in which the Fund may invest may not be clear or may be subject to recharacterization by the Internal Revenue Service. Investments in the securities of other investment companies, including ETFs, may involve duplication of advisory fees and certain other expenses. Additionally, if the investment company or ETF fails to achieve its investment objective, the value of the Fund's investment will decline, adversely affecting the Fund's performance. There is no assurance that the Fund will achieve its investment objective.

Investments in convertible securities subject the Fund to the risks associated with both fixed-income securities, including credit risk and interest risk, and common stocks. A portion of the Fund’s convertible securities may be rated below investment grade. Exchangeable and synthetic convertible securities may be more volatile and less liquid than traditional convertible securities. In general, stock and other equity security values fluctuate, and sometimes widely fluctuate, in response to activities specific to the company as well as general market, economic and political conditions. Lower rated fixed-income securities are subject to greater risk of loss of income and principal than higher-rated securities. The prices of lower rated bonds are likely to be more sensitive to adverse economic changes or individual corporate developments. All fixed-income securities are subject to two types of risk: credit risk and interest rate risk. When the general level of interest rates goes up, the prices of most fixed-income securities go down. When the general level of interest rates goes down, the prices of most fixed income securities go up. The Fund may invest a significant amount of its assets in a particular industry, market, or sector. The value of its shares may be more susceptible to adverse changes within that market or sector than a Fund that does not focus its investments in a particular industry, market or sector. 

Investors should carefully consider the investment objectives, risks, charges and expenses of the Miller Convertible Bond Fund, the Miller Intermediate Fund, the Miller Market Neutral Income Fund. This and other important information about the Funds are contained in the prospectus, which can be obtained by calling 781-416-4000. The prospectus should be read carefully before investing. The Miller Convertible Bond Fund, the Miller Intermediate Fund, the Miller Convertible Plus Fund and the Miller Market Neutral Income Fund are distributed by Northern Lights Distributors, LLC, member FINRA / SIPC. Wellesley Asset Management, Inc. and Northern Lights Distributors, LLC are not affiliated entities.

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