Important Disclosures

Awards 

Morningstar Ratings

As of 7/31/2022, CLTAX received 3-stars for 3 years, 3-stars for 5 years, 5-stars for 10 years, and 4-stars Overall in the Tactical Allocation Category out of 239, 207, 118, and 239 funds, respectively. As of 7/31/2022, CLTCX received 3-stars for 3 years, 3-stars for 5 years, 5-stars for 10 years, and 4-stars Overall in the Tactical Allocation Category out of 239, 207, 118, and 239 funds, respectively. As of 7/31/2022, CLTIX received 4-stars for 3 years, 3-stars for 5-years, 5-stars for 10 years, and 3-stars Overall in the Tactical Allocation Category out of 239, 207, 118, and 239 funds, respectively. © 2022 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar RatingTM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life sub-accounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.

 

The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The Thomson Reuters Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Lipper Fund Award. For more information, see  www.lipperfundawards.com. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. The Lipper award is for the A share class only. Investors Choice Awards Methodology - All funds reporting to Allocator.com are considered for the awards. The Top Performer Awards - these are granted to the select few funds which have outperformed their wider peer group in each category. Winners are determined purely based on quantitative risk-adjusted returns. The 2021 Top Performer award winners will be chosen based on absolute returns from January 1, 2020 to December 31, 2020. The Long Term categories consider returns from January 2018 to December 2020.

 

Enhanced Yield 

The Lyons Income Overlay is intended for holders of large equity or other concentrated holdings who seek to earn option premium income over and above the dividends or interest payments generated from their existing underlying holdings. The strategy utilizes the available margin capacity of such holdings to purchase options on indices, exchange-traded funds or listed equity options that are different from the client’s underlying holdings.

 

The option strategy employed in Overlay may vary and depends on LWM’s view of the market as being bullish, bearish or neutral. Please see ADV Part 2 for a detailed, descriptive list of the various option strategies that may be utilized and their associated risks.

 

Unlike covered call or other strategies in which the underlying stock is pledged and at risk of assignment or forced sale by the Options Clearing Corporation, clients in the Lyons Income Overlay are not exposed to the risk of assignment because their underlying holdings are not incorporated into an options strategy, but are instead used only for their margin borrowing capacity.

 

However, this is not to say that the program is not without risks. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Prior to investing in listed options, you should read and understand the Options Disclosure Document (“ODD”) published by the Options Clearing Corporation. For a copy of the ODD please email k.falconer@lyonswealth.com or go to the OCC’s website. Additionally, prior to investing in any options strategies, you should consult with a tax advisor to understand the tax implications of such transactions.

 

Specific to the Lyons Income Overlay are the risks associated with margin accounts and margin borrowing. Margin policies and rates are subject to change at any time, and losses that results in account balances below required minimums are subject to liquidation by the custodian or broker-dealer. A decrease in value of the underlying stock position could result in a margin call which may jeopardize the overall strategy’s performance. Before trading stocks or other securities on margin, you should carefully review the margin agreement provided by your custodian for more information on specific risks and policies, including but not limited to:

§You can lose more funds than you deposit in the margin account

§The firm can force the sale of securities or other assets in your account(s)

§The firm can sell your securities without contacting you

§You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a  margin call

§The firm can increase its "house" maintenance margin requirements at any time and is not required to provide you advance written notice.

§You are not entitled to an extension of time on a margin call

Leveraged Collared Stock Portfolio Disclosure

This material is confidential and intended for the exclusive use of the person to whom it has been delivered. It may not be copied, distributed, or otherwise disclosed to any person other than your  authorized representatives. This material was prepared exclusively for information and discussion purposes and to give insight into the mechanics of a possible investment strategy. This material is not meant to be nor shall it be construed as an attempt to define all terms and conditions of any transaction or to contain all information that is or may be material to an investor. Lyons Wealth Management, LLC (“LWM”) is not soliciting any action based upon this material, and this material is not meant to be nor shall it be construed as an offer or solicitation of an offer for the purchase or sale of any security or advisory or other service. Rates of return used in this presentation, and the resulting performance statistics, are provided solely as examples to illustrate a potential strategy. All of the data provided in the example are assumptions that are believed to be reasonable but LWM offers no assurance of their accuracy or current relevance. No representation is made that any investor will achieve, results similar to those shown in the examples. Bonds, in particular, are subject to a number of risks, including, but not limited to, market fluctuations. Such fluctuations in value can occur for many reasons, including interest rates, rating upgrades/downgrades, and other economic reasons. You may lose the entire value of your investment in a specific bond if the issuer defaults. Because the strategy involves the use of leverage, you may lose your entire investment as a result of a margin call. You may also realize losses on callable bonds that are valued below your purchase price at the time the issuer calls them away. If you do not understand the risks involved with bonds and in the use of leverage, you should not invest in such a strategy. The examples provided in this presentation may not reflect the impact of material market or economic factors that might ultimately influence an adviser’s decision making. There are numerous other factors related to the markets in general or to the implementation of any specific trading program that cannot be fully accounted for in the preparation of the examples provided herein. Accordingly, clients should focus on the strategy described rather than the results shown herein. Lyons Wealth Management, LLC is not affiliated with Interactive Brokers, LLC, or any other FINRA broker-dealer.

Lyons Tactical Allocation Separate Account

Lyons Wealth Management (“LWM”) began formally tracking its portfolio performance as of April 30th, 2012. Portfolio composite returns are preliminary and are presented on a timeweighted, sizeweighted, total return basis using monthly portfolio valuations. The composite returns presented herein include all eligible LWM accounts. To be eligible for inclusion in the LWM composite, an account must be fee paying, fully discretionary, and not part of a broker wrap program. New portfolios that are managed to the Tactical Allocation Portfolio investment strategy and meet the composite definition will be added to the composite when
fully invested. The composite is not representative of all accounts managed by LWM. All returns are expressed in U.S. Dollars and are presented net of all fees and expenses. The returns reflect the reinvestment of all dividends and interest. Past performance does not guarantee future results. 

 

No current or prospective client should assume future performance in any specific investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions or withdrawals may cause performance results of your portfolio to differ materially from the reported composite return. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio. Historical performance results for market indices and/or categories generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark. 

 

The QRI is a quantitative approach to risk management based on market and economic factors. Such data may not accurately predict price movements. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the QRI as discussed in this presentation will generate profits or ensure freedom from losses.


Lyons Wealth Management officially changed the benchmark of the Lyons Tactical Allocation Portfolio strategy (“LTAP”) from the S&P 500 Index to the Lipper Flexible Portfolio Funds Index during the 2nd quarter of 2017. Lyons believes this Index is a more appropriate and accurate benchmark against which to compare the strategy’s performance. The Lipper Index measures the unweighted average total return performance, net of fund management fees, of the thirty largest share classes (as available) of funds in the Flexible Portfolio Funds classification. The Flexible Portfolio Funds classification serves as the Lipper peer group for LTAP’s mutual fund counterpart. Unlike the S&P 500 Index and similar all equity indexes, the Lipper Index accounts for LTAP’s monthly tactical allocation decision and ability to shift asset classes from stocks to Treasuries, based on its inclusion of managers that employ similar allocation strategies and which allocate across a range of asset classes. The full list of Lipper Index components is available directly from Lipper. Lipper Indices are unmanaged

CLTAX Disclosure Page

Past performance is not a guarantee of future results.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Catalyst Funds. This
and other important information about the Fund is contained in the prospectus, which can be obtained by calling 866-
447-4228 or at www.CatalystMF.com. The prospectus should be read carefully before investing. The Catalyst Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Catalyst Capital Advisors, LLC is not affiliated with Northern Lights Distributors, LLC. 

 

Risk Considerations: Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. The Fund is non-diversified and may invest a greater percentage of its assets in aparticular issue and may own fewer securities than other mutual funds. The performance of the Fund may be subject to substantial short term changes. Interest rate risk is the risk that bond prices overall, including the prices of securities held by the Fund, will decline over short or even long periods of time due to rising interest rates. These factors may affect the value of your investment.


As of 7/31/2022, CLTAX received 3-stars for 3 years, 3-stars for 5 years, 5-stars for 10 years, and 4-stars Overall in the Tactical Allocation Category out of 239, 207, 118, and 239 funds, respectively. As of 7/31/2022, CLTCX received 3-stars for 3 years, 3-stars for 5 years, 5-stars for 10 years, and 4-stars Overall in the Tactical Allocation Category out of 239, 207, 118, and 239 funds, respectively. As of 7/31/2022, CLTIX received 4-stars for 3 years, 3-stars for 5-years, 5-stars for 10 years, and 3-stars Overall in the Tactical Allocation Category out of 239, 207, 118, and 239 funds, respectively. © 2022 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar RatingTM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life sub-accounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4
stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.

 

The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The Thomson Reuters Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Lipper Fund Award. For more information, see  www.lipperfundawards.com. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. The Lipper award is for the A share class only. Investors Choice Awards Methodology - All funds reporting to Allocator.com are considered for the awards. The Top Performer Awards
- these are granted to the select few funds which have outperformed their wider peer group in each category. Winners are determined purely based on quantitative risk-adjusted returns. The 2021 Top Performer award winners will be chosen based on absolute returns from January 1, 2020 to December 31, 2020. The Long Term categories consider returns from January 2018 to December 2020.