Bandon Isolated Alpha Fixed Income (Presentation)

Bandon Isolated Alpha Fixed Income Fund

October 31, 2012

Unbiased

Unconstrained

Global Fixed Income

For Financial Professional Use Only

1818-NLD-11/9/2012

2

Bandon Overview

Privately owned firm based in Portland Oregon

Registered Investment Adviser with the Securities and Exchange Commission

Founder has implemented hedge fund manager research for investors since 2004

Strategies delivered through strategic relationships with specialized institutional managers

Seeks to deliver alternative return characteristics in a Mutual Fund format

The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer information is contained towards the end of this presentation and should be read in conjunction with the information presented above. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.

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Bandon Capital Management – Alternatives Democratization Specialist

3

77%

19%

3% 1%

Composition of the Barclays US Aggregate Bond Index**

Government

Corporate Credit - IG

Asset-Backed Securities /Commercial Mortgages

Emerging Markets Debt

Why Fixed Income Alternatives?

** Includes domestic and sovereign debt, quasi government, such as agency government guaranteed and agency non-government guaranteed, municipal bonds and agency RMBS. Source: Barclays Capital as of December 31, 2010.

This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. Please see additional disclosures.

Duration: 5.05 yrs

Period Bond Fund Flows* ($mm)2000 ‐ 2008 (9yrs) $47,4312009 ‐ 2011 (3yrs) $740,526

Rates have declined dramatically over the prior 30 years, investors have piled into bonds and benchmarks have become more concentrated in government back securities.

*Source: Investment Company Institute

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Jan-62 Jan-68 Jan-74 Jan-80 Jan-86 Jan-92 Jan-98 Jan-04 Jan-10

10-Yr Yields (1/2/1962 - 6/30/2012)

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4

Expanding The Fixed Income Toolbox

The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer information is contained towards the end of this presentation and should be read in conjunction with the information presented above. 1818-NLD-11/9/2012

ABS / MBS TIPS

ABS / MBS TIPS

Rate Hedge Credit Hedge

ABS / MBS TIPS

Rate Hedge Credit Hedge

Potential for Short Exposure

High Quality – Most Traditional Bond Funds

ABS / MBS

Total Return / Strategic Income

Unconstrained Bond Funds Absolute Return – Bandon Fund

Reduced Benchmark Orientation

Reduced Long Bias

5

Fund Overview

The information in this presentation is for informational purposes only and is not intended as an offer to buy or sell, or amount to a solicitation to buy or sell, any securities referred to herein. Important fee, performance and disclaimer information is contained towards the end of this presentation and should be read in conjunction with the information presented above. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 1818-NLD-11/9/2012

* The Performance, Risk and Correlation goals are current, subject to change, and should not be considered a predictor of investment return or risk characteristics. All investments involved the risk of loss and no measure of performance or risk is guaranteed. The fund aims to deliver its target return and risk over a full market cycle, which is likely to include stretches of both up and down performance.** Excludes developed market sovereign credit risks. Total fund notional exposure may exceed 100%.

Performance Goal*: 6 – 8% net or US T-bills + 4–6%

Risk Objective*: 3-5% standard deviation

Correlation Objective*: Between -.33 and +.33 over a market cycle

Unconstrained to a benchmark, the fund utilizes a diverse set of global absolute return-oriented strategies.

Seeking: positive returns through all market environments.limited volatility and downside risk (stop loss on every position).little to no correlation to traditional investments.

Duration -5 yrs 0 +5 yrs

Credit** -100% 0 +100%

Defined symmetrical bands for potential exposures

6

Institutionally Oriented Sub-Advisers

*As of March 31st, 2012.1818-NLD-11/9/2012

Founded in 2007 – Delaware Investments institutional investment team transaction

Fixed Income manager dedicated solely to the institutional marketplace

Over $16.1 Billion* in assets under management including 4 MF Sub-Advisory mandates

64 employees, 9 portfolio managers, 15 research analysts, and 13 traders

Purchased by Fortress Investment Group, LLC in April of 2010 (FIG)

Logan Circle Partners, LP – Credit Specialist

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

DirectionalLongs

0% - 50%

DirectionalShorts

- 50% - 0%

Directional / Relative Value

Cap Structure /Event Driven

0% - 50%

Relative ValuePairs Trades

0% - 50%

Short Term Mispricing

Opportunistic0% - 50%

Credit Strategies

7

Credit – Investment Process

Proprietary ResearchRisk Management/Portfolio Review

1

34

Idea Generation

Portfolio ConstructionSell Discipline

Research

PortfolioManagement Trading

25 • Examination of critical industry trends.• Identification of potential relative value opportunities.• 5 Senior Analysts/Group Leaders closely monitoring 20-25 companies.• Industry Specialists Monitoring 50-75 Companies

• Research• Portfolio Management• Trading

• Directional (Long & Short)• Event Driven / Cap Structure• Pairs Trades• Opportunistic

• Research identifies negative change in fundamentals• Securities reach price targets or stop losses• Better opportunities arise (relative value)

• Forward Looking Risk Identification• Position Sizing• Portfolio Level Assessments

• Gross / Net Exposure• Strategy Allocation %’s


A global, L/S, unconstrained portfolio of Logan Circle’s best 20-40 credit ideas

8

Institutionally Oriented Sub-Advisers

*As of March 31st, 2012.1818-NLD-11/9/2012There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.

Founded in 2003 with 11 full time employees, 4 founding partners

13 years experience managing active duration investment strategies

$575 Million* in assets under management

Strategic business partnership with Federated Investors, Inc.

Dix Hills Partners, LLC – Interest Rate Specialist

US Treasury

German Bund

UK Gilt

Japanese JGB

Interest Rates (10yr)

9

Interest Rate – Investment Process

MonthlyEconomic

DataRelease

Inputs

TechnicalValuationMacro

Economic

Hard Data Multi-Factor Model

Interest RateForecast

Trading Signals

Target DurationExposure

to Interest RatesBetween

+5 years&

-5 years

A monthly systematized multi-factor approach to project interest rate exposures

Important fee, performance and disclaimer information is contained towards the end of this presentation and should be read in conjunction with the information presented above.

GovernmentBond Futures

Implementation

Stop LossProfit Taking

Bound Exposures

Risk Management

Trading Tools

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10

Performance and Statistics

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The Fund's adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until at least January 31, 2013, to ensure that total annual fund operating expenses after feewaiver and/or reimbursement will not exceed 1.95%, 2.20%, 2.95% and 2.45% of each class's net assets, respectively, for Investor Class, Class A, Class C and Class R shares. The BandonIsolated Alpha Fixed Income Fund total annual operating expense ratio (gross) is 2.16% for Investor Class, 2.41% for class A shares, 3.16% for the class C shares and 2.66% for the class Rshares. Expense waivers and reimbursements are subject to possible recoupment from the Fund in future years on a rolling three year basis (within the three years after the fees have been waivedor reimbursed) if such recoupment can be achieved within the foregoing expense limits.

Results shown reflect the waiver, without which the results could have been lower. The performance data quotedhere represents past performance. Current performance may be lower or higher than the performance dataquoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worthmore or less than their original cost. Past performance is no guarantee of future results. A Fund's performance,especially for very short periods of time, should not be the sole factor in making your investment decisions. Toobtain performance information current to the most recent month-end, please call toll-free 1-503-477-8100.

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-4-3-2-1012345

Performance Figures as of 9/30/2012 Q3 2012 2012 YTD 1yr Ann. Since InceptionI Shares ( BANIX) 2.68% 3.49% 6.03% 3.38%

Return Summary 10/31/12 BANIX Barclays

Last Month 0.48% 0.20%

2012 YTD 3.99% 4.20%

1yr Ann. 5.68% 5.25%

Since Inception 12/31/2010 3.88% 12.37%

Ann. Standard Deviation 3.88% 3.40%

Correlation vs Barclay's (0.40)

Correlation vs S&P 500 0.40

Cumulative Growth (12/31/10 ‐Current)

‐6%

‐4%

‐2%

0%

2%

4%

6%

8%

10%

12%

14%

BANIX

BarclaysAggregate

HFRX Ab Return

11

Time Series Analysis

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The Fund's adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until at least January 31, 2013, to ensure that total annual fund operating expenses after feewaiver and/or reimbursement will not exceed 1.95%, 2.20%, 2.95% and 2.45% of each class's net assets, respectively, for Investor Class, Class A, Class C and Class R shares. The BandonIsolated Alpha Fixed Income Fund total annual operating expense ratio (gross) is 2.16% for Investor Class, 2.41% for class A shares, 3.16% for the class C shares and 2.66% for the class Rshares. Expense waivers and reimbursements are subject to possible recoupment from the Fund in future years on a rolling three year basis (within the three years after the fees have been waivedor reimbursed) if such recoupment can be achieved within the foregoing expense limits. *The Fund’s inception date is 12/31/10. Since inception and 1yr performance figures are as of the mostrecent quarter end 1) Market value excludes cash used as collateral or covering notional exposures.


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-4-3-2-1012345

We believe the optimal L/S Debt strategy should possess the ability to do well not only in rising interest rate environments but also during periods of credit spread widening (risk asset stress).

Rising Rates (measured by periods where US 10-yr Treasury yields rise)

Risk Asset Stress (measured by periods when S&P 500 declines)

Bandon Fund at Target Allocation

Change in Yield Bandon (BANIX) Barclays AggSep 22 ‐ Oct 27 (2011) 0.67% 1.54% ‐0.78%Jan 31 ‐Mar 19 (2012) 0.58% 2.79% ‐1.03%

Change in Yield Bandon (BANIX) S&PMay 1 ‐ Aug 8 (2011) ‐0.95% 0.82% ‐17.90%

Bandon (BANIX)May 1 (2011) ‐ Oct 30 (2012) 6.22%

12

5 Worst Months in the Barclays – Since January 2011

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The Fund's adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until at least January 31, 2013, to ensure that total annual fund operating expenses after feewaiver and/or reimbursement will not exceed 1.95%, 2.20%, 2.95% and 2.45% of each class's net assets, respectively, for Investor Class, Class A, Class C and Class R shares. The BandonIsolated Alpha Fixed Income Fund total annual operating expense ratio (gross) is 2.16% for Investor Class, 2.41% for class A shares, 3.16% for the class C shares and 2.66% for the class Rshares. Expense waivers and reimbursements are subject to possible recoupment from the Fund in future years on a rolling three year basis (within the three years after the fees have been waivedor reimbursed) if such recoupment can be achieved within the foregoing expense limits. *The Fund’s inception date is 12/31/10. Since inception and 1yr performance figures are as of the mostrecent quarter end 1) Market value excludes cash used as collateral or covering notional exposures.


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The Fund has a history of strong performance when high quality fixed income struggles.

0.88%

0.30%0.51%

1.39%

2.01%

-0.55%-0.29%

-0.09% -0.02%

0.04%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Mar-12 Jun-11 Nov-11 Feb-12 Jun-12BANIX Barclays

13

Absolute Return Within Your Fixed Income Allocation

AlternativeFixed

Income

TIPS

Emerging Market Debt

Barclay’sAgg

High YieldBank Loans

Barclay’sAgg

TIPS

Emerging Market Debt

AlternativeFixed

Income

High YieldBank Loans

Replacing core fixed income during bear markets

A Fixed Income Diversifier

The information contained on this page is for discussion purposes only and is not intended to be a recommendation for a particular allocation. Allocations will vary based on each client’s needs, objectives and risk tolerance.

1818-NLD-11/9/2012

A Differentiated Alternative Fixed Income Strategy

Strategic Income, Unconstrained Bond

Beta-oriented returns

Interest rate long bias

Limited short exposure as hedge

Blurred alpha/beta characteristics

Many strategies have seen increased

correlation to risk assets during periods of

market stress

Long rate bias may provide limited relief

during periods of rising rates

Bandon Isolated Alpha

Seeks alpha not beta

No directional interest rate bias

Shorts often for return not hedge

Seeks isolated alpha

Has historically exhibited low correlation

to risk assets including periods of market

stress

Lack of directional rate bias creates equal

opportunity for gains in both up and down

interest rate environments

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Operational and Administrative Considerations

Available Custodians Schwab, Fidelity/NFS, TD Ameritrade, PershingTrust Company of America

I Class Ticker BANIX (1.95%) A Class Ticker BANAX (2.20%) C Class Ticker CBANX (2.95%)

Minimum Investment $10,000

Tax Reporting 1099

– A & C classes may require operational items in order to become available at custodians listed above– R share class (50bps 12-b1 fee) available upon capital commitments

For more information please contact Mike Miller at 503-477-8100 or [email protected]

www.bandonalts.com 1818-NLD-11/9/2012

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Portfolio Manager Bios

Joseph A. Baggett, CFA - Mr. Baggett is a founder and Senior Portfolio Manager for Dix Hills Partners, LLC and its affiliate management company, Dix HillsAssociates, LLC. Until his departure in January 2003, Mr. Baggett served as Executive Director, Quantitative Investments Group, UBS Global AssetManagement in New York. At UBS, Joe was senior portfolio manager/research analyst for the quantitatively driven investment strategy group that managedover $6 billion in assets. Joe served as Model Developer and Portfolio Manager for Quantitative Fixed Income Strategies and Quantitative Allocation, LLC(“Q.A.”). Additionally, Joe was also a member of the Portfolio Management Team for UBS Tactical Allocation Fund, a $3 billion, fully flexible mutual fund thatallocated between stocks (S&P 500), bonds (intermediate-term Treasury notes) and cash on the basis of a quantitatively-driven market valuation model. Hehas extensive experience in other traditional quantitative disciplines as well, including portfolio optimization, indexation, stock selection models, performanceattribution/analysis, risk management and securities and derivatives trading. At UBS, he was also actively involved in marketing these products to institutionaland individual prospects. Prior to UBS Asset Management, Joe worked as an Economist at PaineWebber, Inc., part of a three-person unit that produced thefirm's U.S. economic growth, inflation and interest rate outlooks. Prior to PaineWebber, Joe worked at the Federal Reserve Bank of New York as an AssistantEconomist, Domestic Financial Markets Division. Mr. Baggett holds a B.A. in Economics from Columbia University (Summa Cum Laude, Phi Beta Kappa). Healso attended the University of Chicago Graduate School of Business, completing the first year of a two year M.B.A. program with a 4.0 G.P.A.

Andrew J. Kronschnabel, CFA - Mr. Kronschnabel is a senior portfolio manager at Logan Circle Partners. As a member of the portfolio management teamhe is responsible for the firm’s absolute return strategies with a specialization in high grade. Prior to joining Logan Circle Partners, he was a member of theportfolio management team at Delaware Investments where he was responsible for Core-based and high grade products from 2000 to 2007. Mr.Kronschnabel received a Bachelor of Science degree in international economics and politics from Colorado College.

William F. Woodruff - Mr. Woodruff is Bandon’s Founder, Managing Principal and Chief Investment Officer. He is responsible for all investmentmanagement activity at Bandon. Prior to founding Bandon in 2007, Mr. Woodruff spent four years with Beacon Investment Group and its subsidiaries,ultimately serving as a portfolio manager for the firm’s various hedge funds and alternative investment products. In that role, Mr. Woodruff evaluated andinvested in a wide variety of alternative strategies. His primary focus was developing ways to democratize alternative strategies. These efforts lead to thecreation of the trading approach for the DIRS Program that is now a flagship Bandon product. Mr. Woodruff began his career working for Portland, Oregonbased Philips & Co. Securities in 2002. He holds a B.B.A. in Finance from the University of Portland.


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Important Disclosures

The material contained in this document is for general information purposes only and is based on information that is considered tobe reliable. However, Bandon makes this information available on an “as is” basis and make no warranties, express or implied,regarding the accuracy of the information contained herein, for any particular purpose. Bandon and its independent providers arenot liable for any information errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.Nothing contained in this material is intended to constitute legal, tax, securities, financial or investment advice, nor an opinionregarding the appropriateness of any investment. The information herein should not be acted upon without obtaining specific legal,tax or investment advice from a licensed professional. Bandon Capital Management, LLC, Dix Hills Partners, LLC and Logan CirclePartners, LLC are not affiliated with Northern Lights Distributors, LLC

Investors should carefully consider the investment objectives, risks, charges and expenses of the Bandon Isolated AlphaFixed Income Fund. This and other important information about the Fund is contained in the prospectus, which can beobtained at www.bandonfunds.com or by calling 503-477-8100. The prospectus should be read carefully before investing.The Bandon Isolated Alpha Fixed Income Fund is distributed by Northern Lights Distributors, LLC member FINRA.

Investing in Mutual Funds involves risk including the possible loss of principal. There is a risk that issuers and counterparties willnot make payments on securities and other investments held by the Fund, resulting in losses to the Fund. The Fund's use ofderivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly insecurities and other traditional investments. Emerging market countries may have relatively unstable governments, weakereconomies, and less-developed legal systems with fewer security holder rights. Closed-end funds are subject to investmentadvisory and other expenses, which will be indirectly paid by the Fund. The value of the Fund's investments in fixed incomesecurities and derivatives will fluctuate with changes in interest rates. Currency trading risks include market risk, credit risk andcountry risk. Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economicconditions, and different governmental and accounting standards. The Fund may invest in high yield securities, also known as"junk bonds." High yield securities provide greater income and opportunity for gain, but entail greater risk of loss of principal.Using derivatives to increase the Fund's combined long and short exposure creates leverage, which can magnify the Fund'spotential for gain or loss. The default rate on underlying mortgage loans or asset loans may be higher than anticipated, potentiallyreducing payments to the Fund. As a non-diversified fund, the Fund may invest more than 5% of its total assets in the securitiesof one or more issuers. The Fund will incur a loss as a result of a short position if the price of the short position instrumentincreases in value between the date of the short position sale and the date on which the Fund purchases an offsetting position.

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18

Definitions

S&P: Refers to the Standard and Poor's 500 Index which is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broaddomestic equity market. This index is used for comparative purposes only.

Barclays Agg (BarCap): Refers to the Barclays Aggregate US Bond Index. The index is designed to measure performance of the broad based investment-grade, fixed rate,taxable bond market. This index is used for comparative purposes only.

IEF: An Exchange Traded Fund that seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays Capital U.S. 7-10Year Treasury Bond Index.

TLT: An Exchange Traded Fund that seeks results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays Capital U.S. 20+Year Treasury Bond Index.

Alpha: A risk-adjusted measure of the active return on an investment. It is a measure of the manager’s contribution to performance. A positive annual Alpha indicates theportfolio outperformed the market on a risk-adjusted basis, and a negative Alpha indicates the portfolio underperformed in relation to the market.

Beta: Describes how the expected return of a stock or portfolio is correlated to the return of the financial market as a whole. A Beta greater than 1.00 indicates the portfoliois more volatile than the market, and a Beta less than 1.00 indicates the portfolio is less volatile than the market.

Duration: A measure of a bonds price sensitivity to yield. It can also be described as the percentage change in price for a parallel shift in yield.

Standard Deviation: Measures the degree of variation of monthly returns around the mean (average) return. The higher the volatility of the investment returns, the higherthe standard deviation will be.

Correlation: Measures how closely the investment tracks the market (the "market" can be defined as an index).

Absolute Return: The return that an asset achieves over a certain period of time. This measure looks at the appreciation or depreciation (expressed as a percentage) thatan asset - usually a stock or a mutual fund - achieves over a given period of time.

Directional Trading: A strategy used by investors that open positions, either long or short, on the belief that they are able to correctly predict the movement of price in asecurity.

Event Driven: A strategy where positions seek profits from the consummation of a given event (e.g. takeover, merger, etc).

Cap Structure: A strategy that attempts to exploit a pricing inefficiency between two securities of the same company.

Paris Trade: The strategy of matching a long position with a short position in two stocks of the same sector. This creates a hedge against the sector and the overall marketthat the two stocks are in.

Opportunistic: A strategy that seeks to take advantage of short-term mispricing in securities.


19

Appendix 1: Alpha / Beta Separation

By going away from traditional actively managed product where Beta and Alpha areblurred together you gain control of your asset allocation. Giving you the choice ofeither minimizing costs or reducing beta.

90%

Beta

10% Alpha

Actively Managed Bond Portfolio0.58% total cost

BND0.12%

Exp Ratio

Cost of Alpha4.70%

Isolated Alpha (Cost Reduction)

0.30% Avg cost

90%

Beta

10% BANIX

BND0.12%

Exp Ratio

Cost of Alpha1.95%

Isolated Alpha (Beta Reduction)

0.58% Avg cost

75%

Beta

25% BANIX

BND0.12%

Exp Ratio

Cost of Alpha1.95%

BND: Vanguard Total Bond Market ETF.The portfolios are hypothetical examples created by Bandon and are provided for illustration purposes only. No assumptions should be made that the allocations above will be profitable or provide alpha. Allocations and their percentages should change based on an individual investor's needs. 1818-NLD-11/9/2012

20

PORTFOLIO & RISK MANAGEMENT

Jude Driscoll, CIO

High GradeAndy Kronschnabel, CFA

Stephen Mullin, CFA

High YieldTim Rabe, CFA

EM / Non-DollarScott Moses, CFATodd Howard, CFA

Structured ProductAl Leone, CFA

TRADING / TECHNICAL ANALYSIS

High GradeMatt BuchananDana CottrellLou Petriello

High YieldTom McClinticSpencer Tullo

EM / Non-DollarTodd Howard, CFA

Structured ProductJoseph Watkins

Kevin Hendrickson

FUNDAMENTAL RESEACH Brian Funk, CFA,

DirectorZach Bauer, CFA

Michael BorowskeIan Bowman

Evan Driedger, CFA

Michael FreyXimena GalvezBrent Garrels

Lee RubensteinGreg Zappin, CFA

Matt Higgins, CFAChris Moon, CFAMichael Recchiuti

Risk AnalyticsPaul Polichino

Credit Research Team

Appendix 2: Logan Circle - Investment Team


Documents

Bandon Isolated Alpha Fixed Income (Presentation)