unaudited

December 31, 2022

Rational Equity Armor Fund (HDCAX, HDCEX, HDCTX)

Dear Fellow Shareholders,

The Rational Equity Armor Fund (the “Fund”) seeks total return on investment, with dividend income being an important component of that return. The Fund seeks to achieve this goal by investing in two baskets – a long equity portfolio and a volatility hedge overlay. The Fund seeks to achieve its investment objective by investing primarily in common stock of dividend paying companies included within the S&P 500 Index (the “S&P 500”). The Fund also invests a portion of its assets in exchange-traded volatility index futures contracts and in cash and cash equivalents as a hedge against the common stock held in the Fund’s portfolio.

In the past 50 years, the yield curve has inverted seven times. Seven out of seven times there was a recession. In 2022 we first saw the 2 year yield higher than the 10 year yield for the first time April, and the three-month over the ten-year in October, which were two signals of a recession and one of the main reasons stocks struggled in 2022. While stocks struggled, volatility as measured by the VIX Index and the SPIKES Volatility Index did not have its normal opposing run. This led to many hedged equity funds underperforming the S&P 500. During the reporting period, the Fund outperformed the S&P 500 and did so with lower volatility.

The Fund is long volatility and equities. In the first quarter of 2022, the VIX Index was up 19% while the S&P 500 was down 5%. This negative correlation allowed the Fund to have a positive first quarter, up 1%. Historically, the negative correlation provides a tailwind to the fund. The second, third, and fourth quarters of 2022 did not have a similar volatility peak, thus our fund experienced a headwind, overall a challenging environment for all hedged equity funds. The Fund still succeeded in those quarters, outperforming the S&P 500 by roughly 5% for the calendar year and doing so with lower volatility.

We enter 2023 full of uncertainties. Since the Great Financial Crisis, market participants have come to rely on extreme levels of liquidity supplied to the market by the Federal Reserve. This led to the inflation problem we saw dominate the market in 2022. This year, to the extent that inflation comes down, we believe that economic growth will slow down with it. If that economic slowdown occurs, the Fed will have fewer tools at its disposal to stimulate growth.

We at Equity Armor believe that this type of market environment is one where our team and asset allocation/trading strategy can create alpha for investors. In the last 10 years, we have observed that most asset classes have moved in unison with each other, particularly for most large equity-based indices. However, as liquidity is drawn out of the market, it is our view that there will be no rising tide to lift all boats. We believe that in this environment, stock picking and sector rotation will be key. In addition, with a return to a “normalized Fed” we expect a return to normalized volatility in the markets. Our strategy

is designed to harvest some of this normalized volatility in the market to help buffer the portfolio from market downturns and also to help provide an optimized hedge while continuing to be invested in the stock market.

We thank you for your trust in us as we strive to continue to deliver outstanding risk adjusted returns.

Sincerely,

Joe Tigay

Brian Stutland

Luke Rahbari

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The Fund’s total annualized returns through December 31, 2022 as compared to the S&P 500 Value TR Index and S&P 500 TR Index were as follows:

The Fund’s maximum sales charge for Class “A” shares is 4.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions 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, toll free at 1-800-253-0412. You can also obtain a prospectus at www.RationalMF.com.

This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current Fund prospectus. To obtain a prospectus or other information about the Fund, please visit www.RationalMF.com or call 1-800-253-0412. Please read the prospectus carefully before investing.

5169-NLD-01312023

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3

unaudited

December 31, 2022

Rational Tactical Return Fund (HRSAX, HRSFX, HRSTX)

Dear Fellow Shareholders,

The Rational Tactical Return Fund (the “Fund”) seeks total return consisting of long-term capital appreciation and income by making investments in long and short call and put options on futures contracts on the S&P 500 Index, as well as cash and cash equivalents. For the year ended December 31, 2022, the Fund posted a -0.30% (Class I) return versus -18.11% for the S&P 500 TR Index (the “S&P 500 Index”).

Investment Strategy

Warrington Asset Management, LLC’s (the “Sub-Advisor”) strategy seeks to achieve the Fund’s investment objective in three ways: (1) Premium Collection – the Fund collects premiums on options it sells; (2) Volatility Trading – the Fund may enter into positions designed to hedge or profit from either an increase or a decrease in S&P 500 Index volatility; and (3) Trend Following – the Fund may increase or decrease the balance of puts and calls based on trending market direction. The Fund is designed to produce returns that are not correlated with equity market returns. The Fund employs strict risk management procedures, supported by both technical and fundamental analysis, that are intended to provide consistency of returns and to mitigate the extent of losses.

Fund Performance

While the Fund trades options on the S&P 500 Index, the Sub-Advisor’s goal is to have low correlation to that benchmark. In this regard, the Sub-Advisor’s objective is to provide positive, risk adjusted absolute returns to our investors. When those returns are additionally weighed against the volatility endured to produce such returns, with low standard deviation on a daily, monthly, and yearly timeframe, we believe the Fund has performed well and has achieved its objective.

The equity and fixed income markets performed poorly in 2022, highlighting the need for uncorrelated assets. While volatility, as measured by the VIX Index, was low throughout the year, the equity markets themselves presented extreme challenges for most market participants. We believe we were able to navigate these difficult markets and capture trading gains, where possible, while seeking to protect capital when opportunity sets were limited. In looking at the Morningstar ranking and return data for the category in which the Fund’s strategy is placed, “Options Trading,” we believe the category is extremely broad with all options traders, many of whom, in our view, take extreme risk collecting premiums during periods of positive index performance and may at times outperform, but underperform in periods of rising volatility. According to Morningstar, in 2022, the Fund finished in the top 4% of the 258 constituents, which we would attribute to our distinct investment approach. Additionally, since Sub-Advisor inception, the Fund’s Morningstar rating is now at four stars, which we believe is reflective of the Fund’s performance and minimal standard deviation (the five-year standard deviation for the Fund is 1.79 vs 9.85 for the Morningstar category). This wide disparity leads to a Sharpe ratio of 1.92 for the Fund vs. 0.27 for the Morningstar category, underscoring how we have sought to add significant shareholder value using our approach. The flexibility in the tactical trading methodology utilized for the Fund, coupled with stringent risk parameters, is designed to provide the ability to react quickly to an ever-changing market environment in search of profits while also remaining focused on avoiding potentially treacherous market conditions.

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The Fund’s total annualized returns through December 31, 2022, as compared to the S&P 500 TR Index (S&P) benchmark were as follows:

The Fund’s maximum sales charge for Class “A” shares is 4.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions 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, toll free at 1-800-253-0412. You can also obtain a prospectus at www.RationalMF.com.

Summary

In another year as the Fund’s Sub Advisor, Warrington has continued to provide strong absolute and relative returns, while consistently managing market risks. We seek to continue asset growth as weak equity markets have highlighted the need for non-correlated assets. In volatile markets, Warrington ensures that risk management is paramount, while concurrently evaluating the risk/reward relationship of the opportunities presented by those volatile markets.

Sincerely,

Scott Kimple and Mark Adams

Portfolio Managers

This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current Fund prospectus. To obtain a prospectus or other information about the Fund, please visit www.RationalMF.com or call 1-800-253-0412. Please read the prospectus carefully before investing.

5147-NLD-01262023

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15

16

unaudited

December 31, 2022

Rational Strategic Allocation Fund (RHSAX, RHSCX, RHSIX)

Dear Fellow Shareholders,

The Rational Strategic Allocation Fund (the “Fund”) seeks current income and moderate appreciation of capital by implementing a distinct “index plus” strategy that provides investors exposure to a non-traditional fixed income portfolio with an S&P 500 Index equity overlay. During 2022, the Fund returned -28.04% for Class A compared to the S&P 500 Total Return Index ¹ which returned -18.11%. Given the difficult market environment the Fund lagged as a result of its allocations to futures contracts on the S&P 500 Index and fixed income funds.

Investment Strategy

The Fund invests in a portfolio of futures contracts on the S&P 500 Index and income-oriented mutual funds typically representing non-traditional fixed income asset classes. We select underlying funds using a fundamental research process, including a top-down analysis of market conditions and investment category historical performance during various market conditions. We also perform a bottom-up analysis of each potential fund for investment, including investment allocations, investment valuations and characteristics, positioning, historical performance during various market conditions and each fund’s portfolio manager’s outlook. The Fund typically maintains 70% to 100% notional exposure to the S&P 500 Index and 70% to 100% notional exposure to the fixed income portfolio.

Fund Performance

During 2022, the Fund returned -28.04% (Class A) compared to -18.11% for the S&P 500 Total Return Index. The Fund performed in-line with our expectations in the volatile and adverse market conditions during the year. Our equity exposure obtained through allocations to futures contracts on the S&P 500 Index performed how we expected throughout the year. Our allocation to non-traditional fixed income funds was an additional source of negative performance and contributed to the Fund’s overall underperformance as compared to the S&P 500 TR Index. Throughout 2022, we were able to maintain our targeted notional exposure of 70% to 100% to the S&P 500 Index.

2022 was the worst performing year for the traditional “60/40” portfolio (60% in equities and 40% in bonds) in the last 45 years. In a year as difficult as 2022 where equities and fixed income were both down over double digits, this is how we would expect the Fund to perform. In looking a bit deeper into the two sections of the Fund, our S&P 500 futures contracts served its purpose and performed roughly in-line with the S&P 500 Total Return Index. In terms of the fixed income sleeve, our non-traditional holdings returned -7.12% in 2022, outperforming the Bloomberg U.S. Agg Index by close to over 580 bps.

The majority of the holdings performed to our expectations given the challenging market environment. The top performing funds held in the portfolio during 2022 were: Rational Special Situations Fund (RFXIX -0.85%) and Catalyst/CIFC Floating Rate Income Fund (CFRIX -2.34%). The weakest performing fund held in the portfolio during 2022 was: AlphaCentric Income Opportunities Fund (IOFIX -21.68%).

The Fund’s total annualized returns through December 31, 2022 as compared to the S&P 500 Total Return Index were as follows:

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The Fund’s maximum sales charge for Class “A” shares is 4.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions 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, toll free at 1-800-253-0412. You can also obtain a prospectus at www.RationalMF.com.

The views expressed in this letter were those as of December 31, 2022 and may not necessarily reflect views on the date this letter is first published or anytime thereafter. These views are intended to help shareholders in understanding the Fund’s present investment methodology and do not constitute investment advice.

Sincerely,

David Miller

Portfolio Manager

This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current Fund prospectus. To obtain a prospectus or other information about the Fund, please visit www.RationalMF.com or call 1-800-253-0412. Please read the prospectus carefully before investing.

5168-NLD-01312023

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19

unaudited

December 31, 2022

Rational/ReSolve Adaptive Asset Allocation Fund (RDMAX, RDMCX, RDMIX)

Dear Shareholders,

The Rational/ReSolve Adaptive Asset Allocation Fund (“the Fund”) commenced trading on March 16^th, 2018, when ReSolve Asset Management officially replaced the previous manager as sub-advisor.

ReSolve’s Adaptive Asset Allocation¹ methodology uses proprietary quantitative and machine learning innovations that emphasize characteristics such as, but not limited to, total return momentum, trends, seasonal patterns, carry measures, mean reversion and others, while simultaneously maximizing diversification based on changing estimates of volatility and correlations across a global universe of futures markets consisting of stock and bond indices, commodities, and currencies.

Portfolio Review

The strategy experienced two very distinct semesters in 2022, with strong returns between January and June, driven by the alpha portion of the strategy, offset by a challenging second half of the year for both the alpha and beta sleeves.

Energies provided the best source of positive returns, led by long positions in gasoline, heating oil, natural gas and diesel. Despite detracting from performance in the second semester, the sector sidestepped huge losses experienced in these markets via tight risk controls and agile portfolio rebalancing.

Metals also delivered important gains, stemming primarily from short exposure to copper. Silver offered opportunities for profits from both long and short positions, while long platinum also contributed to performance.

Grains were the other meaningful positive contributors, with longs in corn, soybeans and bean oil, and short wheat.

Bonds were by far the largest detractors, primarily from long exposure to the German sovereign complex (especially the long-duration Buxl), while short 5- and 10-year Treasuries offered important offsetting gains.

Softs also struggled, with losses from long coffee and cocoa, and cotton (both long and short).

Equity indices also contributed negatively, primarily from long positions in the Japanese Nikkei, Dutch AEX and Italian MIB. Profitable shorts in the S&P 500 and German DAX, and active trading in the British FTSE offered a partial counterbalance.

Currencies suffered in the second half from short exposure to the Japanese Yen, Australian Dollar, and Swiss Franc, though active trading in the Euro and long Kiwi Dollar provided some gains.

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Figure 1. 2022 Return Attributions

Past performance is not indicative of future results.

Note: Results may differ due to rounding. Performance is expressed in USD. Strategy attribution is a best-efforts approximation, net of all applicable borrowing costs, fees and fund accruals for the period. Indicated returns of one year or more are annualized.

The Fund’s total annualized returns through December 31, 2022 as compared to the BarclayHedge CTA Index⁴ and the S&P 500 Total Return Index⁵ were as follows:

The Fund’s maximum sales charge for Class “A” shares is 5.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions 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 please call the Fund, toll free at 1-800-253-0412.

The Fund acquired all of the assets and liabilities of Chesapeake Fund, LLC (the “Predecessor Fund”) in a tax free reorganization on September 30, 2016. In connection with this acquisition, shares of the Predecessor Fund were exchanged for Institutional Shares of the Fund. At the time of the reorganization, the Predecessor Fund had an investment objective and strategies that were, in all material respects, the same as those of the Fund, and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. Effective February 27, 2018, the Fund’s investment strategy changed, and a new Sub Advisor replaced the prior sub-advisor. Consequently, prior performance may not reflect the Fund’s current operations.

General Market Review

2022 was shaped by global tectonic shifts on several fronts including the economy, finance, geopolitics, and societies at large, in what many believe to be the early stages of a major paradigm shift which effects are likely to last several years. Led by the Federal Reserve, central banks around the world have begun to unwind their balance sheets and raise interest rates to fight inflationary pressures that reached multi-decade highs. Tightening liquidity led to the heaviest capital market losses since the 2007-2009 Great Financial Crisis, with an estimated USD $30 trillion³ wiped out across global stocks and bonds.

Global equities experienced huge losses, led by double-digit declines in major US equities. Sovereigns had their worst year in living memory, with the longest duration bonds falling between 20 and almost 40 percent on both sides of the

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Atlantic. The US dollar strengthened against its major peers but depreciated against some important emerging market currencies. Industrial metals fell, though precious metals proved more resilient, helped by a large rebound in December. Most energies, grains, and several soft commodities saw enormous price increases on extremely volatile trading: heating oil and gasoil practically doubled, while crude oil, RBOB, corn, milling wheat, soybeans, and sugar rose by double-digits.

The first semester was marked by the regrettable invasion of Ukraine by Russian forces in the final week of February, marking the start of the largest conflict on European soil in decades. Though many believed it would be a quick victory for the invading forces, they were met with fierce and heroic opposition by Ukrainian military and civilian forces. The U.S. and NATO allies responded with tens of billions of dollars in military and economic aid, as well as the largest sanctions in history against the Russian regime, including the freezing of approximately two-thirds of Russia’s central bank assets and cutting banks’ access to the international SWIFT system.

The first few months of the war also had profound consequences on commodity prices, from energies to crops such as corn, soybeans and especially wheat, as much of the fighting has taken place in a region commonly referred to as Europe’s breadbasket. In addition to worsening inflation across the globe, the conflict also continues to threaten the availability of fertilizers, with huge implications for food security – especially in poorer countries. As of this writing, neither side has signaled an intention to sue for peace, though a UN-brokered agreement has allowed grains to be shipped from ports in the Black Sea.

China’s zero-Covid policy was another important variable, disrupting the supply of large amounts of export goods and drastically curbing demand from one of the largest consumer markets. Following the reappointment of Xi Jinping to an unprecedented third term as president (essentially cementing lifetime leadership) and amid growing protests across many regions, the country began to relax restrictions and reopen its borders.

Outlook

The Bank of Japan’s decision to widen the interest rate band under its yield curve control (YCC) policy in December weighed on global markets and contributed to the cancellation of equities’ ‘Christmas rally’, increasing the opportunity cost for one of the world’s largest exporters of capital and further fueling a recent dynamic referred to by some as a ‘reverse currency war’. The European Central Bank warned of ’significantly’ more to come after raising interest rates once again in its latest meeting, likely setting the tone for the new year.

On the geopolitical front, a successful counteroffensive by Ukrainian forces recaptured large swathes of territory while raising fears that the conflict could escalate further (and even lead to the use of nuclear weapons). Deglobalization was one of the major themes of 2022, with several events compounding towards this dynamic: the weaponization of the U.S. dollar and other precedents set by sanctions; the U.S.’ decision to ban exports of advanced semiconductors (and the technology to produce them) to China; the ‘reshoring’ of critical supply-chains away from would-be adversaries; and the deterioration of U.S.-Saudi relationships stand out.

A new global order seems to be emerging, where U.S. hegemony gives way to a more fractured, multi-polar world. This would have profound implications for growth, inflation, liquidity, and by extension asset prices worldwide. It is likely that traditional stock-bond portfolios, which have thrived beyond most investors’ wildest dreams in the previous regime, will face great challenges in the coming years.

Sincerely,

ReSolve Asset Management SEZC (Cayman)

Trading Adviser

This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current Fund prospectus. To obtain a prospectus or other information about the Fund, please visit www.RationalMF.com or call 1-800-253-0412. Please read the prospectus carefully before investing.

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6041-NLD-01312023

23

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unaudited

December 31, 2022

Rational/Pier 88 Convertible Securities Fund (PBXAX, PBXCX, PBXIX)

Dear Fellow Shareholders,

2022 has been a challenging market for equity and bond investors. Throughout the year, corporate earnings reports were generally as expected across industries and market caps, but markets focused on inflation, rising interest rates, and heightened geopolitical risks. The recent volatility in the markets has showcased the need for rigorous risk management.

The Rational/Pier 88 Convertible Securities Fund (the “Fund”) seeks total return consisting of capital appreciation and income by investing primarily in convertible securities, which offer equity participation with the added benefit of a bond floor component. The Fund maintains an average investment grade rating with the goal of providing additional downside risk management. Solid risk management and diligent portfolio management helped the Fund mitigate some of the market volatility in 2022. The sell-off in growth stocks has resulted in the convertibles of many secular growth businesses trading below par, which we view as an opportunity for longer-term investors. Moreover, the Fund seeks to provide a way for investors to gain exposure to high quality secular growth companies with less downside than a traditional equity portfolio with similar names.

In our view, the Fund has proven more defensive than the equity markets during the year given that convertibles are higher in the capital structure for companies and offer some fixed income characteristics. Moreover, the Fund has outperformed the Morningstar Convertible Index and Morningstar Convertible Security Peers, which we would attribute to a strong risk management process, and a general focus on companies of higher credit quality.

In analyzing the risk appetite of investors, we think a review of fixed income returns is informative. The table below details year-to-date performance for a group of fixed income asset classes we routinely review.

The Fund’s performance compares favorably to many of the above fixed income categories over the past year.

On a go forward basis, we believe that the Fund offers a compelling risk/reward from current levels as the convertible bonds of many growth companies are now trading below par and close to a theoretical bond floor.

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The following chart of secular growth companies held in the Fund as of December 31, 222 is illustrative.

The chart details 10 convertible bonds of companies levered to multi-year secular growth opportunities in the Technology, Fin Tech, Consumer, and Healthcare sectors where the bonds are trading at a discount to par. Given the below par prices, we believe downside from current levels ought to be fairly limited, unless the companies experience dramatic deterioration of business fundamentals. Assuming the business trends remain stable, it is our view that each of the above bonds should trade at least back to par as the issues mature. If the market begins to favor growth stocks over value stocks and the equities re-rate higher, then we believe the convertible bonds of these companies can trade above par. In our view, convertible bonds, like the examples above, are a defensive way to gain exposure to secular growth companies.

Every industry sector has seen a decline in 2022, with the exception of Energy and Utilities. Energy stocks rallied as the price of oil increased due to numerous factors, including increased demand from a re-opening economy, a lack of refining capacity, the conflict in Ukraine and disruption of European energy markers, and supply shocks in the U.S. due to new Federal policies. Other than the Energy Sector, markets were volatile due to concerns over inflation and a possible recession. We remained underweight in these high premium names, as in our view, a recession would ultimately cause the Energy Sector to buckle as well. Utilities, known as a defensive sector, eked out modest gains this year as investors gravitated toward defensive business models with stable dividends. Other sectors did not fare so well.

The decline in equity prices weighed on the prices of convertible bonds which impacted the performance of positions in the Fund. Companies were not reporting poor fundamentals or missing numbers; rather, most of our companies delivered earnings and outlooks which met or exceeded Street expectations; nevertheless, many positions sold off, which we attribute to multiple compression.

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The following breakdown of S&P sector performance is informative.

Source: Goldman Sachs; FactSet

As the chart above details, Energy was the one bright spot this year as fears of constrained supplies of oil helped drive up the price of oil and highly correlated stocks of energy companies. We think the performance of the Discretionary, Technology and Communication Services sectors is more telling. Recessionary-like price declines of these sectors happened without what we have historically viewed as a typical 30% corresponding decline in earnings. On the contrary, most of the companies in these sectors grew revenue and earnings this year. We believe the multiple compression is tied to a general fear of the prospect of future slower growth and negative revisions. The convertible bonds protected as the equities sold off.

Fixed income markets in general provided no safety as bonds sold off in response to inflation fears. Bonds typically are exposed to interest rate, credit, liquidity, and market risks. This year’s volatility was more a reflection of interest rate and market risk than credit risks. Convertibles and the Fund share risk of market exposure but our active management aims to mitigate credit and liquidity risk.

Pier 88 seeks to employ a “balanced” approach to managing the convertible bond asset class. We endeavor to take a balanced view of risk versus reward. The team is cognizant that all investments present a plethora of risk including macroeconomic, market and idiosyncratic. Our portfolio remains diversified from a sector, market cap, and style perspective. We remain bullish on the fundamentals underlying many of our companies; we believe our secular growth stories have years to expand their business, while our blue-chip franchises are well capitalized and possess the stability to fund their yields.

The Rational/Pier 88 Convertible Securities Fund delivered strong positive returns in 2020 and 2021 and has offered downside protection during the fixed income and equity market declines in 2022. On a multi-year basis, the Fund has outperformed the broad fixed income index (the Barclays US Aggregate Bond Index), as well as a variety of other fixed income categories and Morningstar Convertible Peers. The majority of the holdings performed to our expectations and the Fund benefitted from rigorous security selection and solid risk management. We believe investing on behalf of others is a privilege we must earn everyday through adherence to a disciplined investment process. Thank you for your support.

Sincerely,

Frank Timons

Portfolio Manager

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The Fund’s total annualized returns through 12/31/22 as compared to its benchmark were as follows:

S&P 500 is the primary benchmark.

Maximum sales charge for Class A is 4.75%. Maximum Deferred Sales Charge of 1.00% on Class C Shares applies to shares sold within 12 months of purchase. As of the Fund’s current prospectus dated May 1, 2022, the Fund’s Total Annual Fund Operating Expenses, before any fee waiver and/or expense reimbursement, are 1.17%, 1.35%, and 2.10% for I, A, and C shares, repsectively per the recent prospectus. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. Results shown reflect the waiver, without which the results could have been lower. A fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. To obtain the most recent month end performance information or the Fund’s prospectus please call 800-253-0412 or visit www.RationalMF.com.

Past performance is not a guarantee of future results.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Rational Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (800) 253-0412 or at www.rationalmf.com. The prospectus should be read carefully before investing. The Rational Funds are distributed by Northern Lights Distributors, LLC member FINRA/ SIPC. Rational Advisors, Inc. 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. Investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategies. The Fund is non-diversified and may invest a greater percentage of its assets in a particular issue and may own fewer securities than other mutual funds; the Fund is subject to concentration risk. 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. 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. Bonds with longer maturities tend to be more sensitive to interest rates than bonds with shorter maturities. Lower-quality bonds, known as “high yield” or “junk” bonds, present greater risk than bonds of higher quality, including an increased risk of default. Credit risk is the risk that the issuer of a security will not be able to make principal and interest payments when due. These factors may affect the value of your investment.

The Fund commenced operations by acquiring all of the assets and liabilities of Lake Como Convertible Bond Fund, L.P. (the “Predecessor Fund”) in a tax-free reorganization on December 6, 2019 (the “Reorganization”). In connection with the Reorganization, investors in the Predecessor Fund received Institutional Shares of the Fund. The Fund’s investment

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objectives, policies, guidelines and restrictions are, in all material respects, equivalent to those of the Predecessor Fund. However, the Predecessor Fund was not registered under the 1940 Act and, therefore, was not subject to certain investment restrictions, limitations and diversification requirements that are imposed by the 1940 Act or Subchapter M of the Internal Revenue Code that, if they had been applicable, might have adversely affected the Predecessor Fund’s performance. The Fund’s Sub-Advisor was the investment adviser to the Predecessor Fund.

1135-NLD-01272023

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Unaudited

December 31, 2022

Rational Special Situations Income Fund (RFXAX | RFXCX | RFXIX)

Dear Fellow Shareholders,

The Rational Special Situations Income Fund (the “Fund”) returned +0.90% for the month of December 2022, bringing its calendar year 2022 performance to -0.85% for Institutional Class. According to Bloomberg, the 10-year Treasury yield rose by 27 bps in December 2022 and by 236 bps for calendar year 2022. The Barclays U.S. Aggregate Bond Index returned - 0.45% for December 2022 and -13.01% for calendar year 2022. The Bloomberg Barclays U.S. Mortgage Backed Securities Index returned -0.44% and -11.81% for December 2022 and calendar year 2022, respectively.

We believe our outperformance relative to the Fund’s benchmarks and peers is because we stuck to our investment philosophy: minimize credit risk, minimize interest rate exposure, and seek uncorrelated profit (i.e. alpha) in bonds that have been overlooked, mismodeled, or misunderstood for some reason.

Disciplined Credit Management:

While we are always looking for strong returns, our focus is on senior bonds in structured credit products - primarily in pre-2008 residential mortgage-backed securities (“MBS”) and highly seasoned commercial MBS. We believe focusing on the senior tranches reduced our risk to fundamental credit shocks and made us relatively less exposed to widening credit spreads. When credit markets start to break down, it is the least creditworthy assets that widen out the most and the most quickly. While some managers specifically target lower tier bonds, many managers become tempted to move down the credit stack to find returns when yields are lower and markets appear stable. We felt that during both the pandemic drawdown in 2020 and the Fed hiking cycle in 2022, the downside risk of lower credit quality bonds was unacceptably high. As we face the possibility of a housing downturn following the rate shock last year, we still feel that way.

It is also worth noting that, in our view, remaining in senior bonds improves our portfolio liquidity. The structured credit markets may be considered esoteric, but the most senior bonds are viable investments for many diversified bond funds.

Minimized Interest Rate Exposure:

Another reason for our outperformance in 2022 was our relatively low interest rate exposure. The average duration of the Fund’s portfolio over the calendar year was around 1-1.5 years. We stay focused on keeping our interest rate exposure low by investing primarily in floating rate bonds or short-term bonds. Even through a sustained period of low rates, we did not seek to increase returns by increasing duration (which increases exposure to rate increases).

Predicting the course of interest rates is difficult, including the Federal Reserve. At the end of 2021, the Treasury curve had a 1-year rate 1 year forward of only about 1%. (In other words, the Treasury curve was pricing in a yield of 1% for a 1 year Treasury issued at the end of 2022.) But at the end of 2022, the 1-year rate hit 4.7%. In other words, the market completely failed to predict the large hike in rates.

If there is a reduction in rates over the next year, funds with longer duration may outperform. Our view is that inflation will moderate, the economy will slow significantly, and interest rates could come down, but we still plan to minimize our interest rate exposure.

Accordingly, if spreads and interest rates tighten significantly in 2023, we believe the Fund will do well in absolute terms, but our short-term relative performance versus our peers may suffer.

Uncorrelated Special Situations:

Lastly, our alpha comes from uncorrelated trade ideas. In a market like that of 2022, where all assets became more correlated, our strategy, while still posting a negative performance, outperformed the broader fixed income markets specifically because the majority of our special situation trades were not driven by any market

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factors, but by our strategy to identify opportunities that other market participants either did not or cannot.

If we look roughly at the Fund’s performance over calendar year 2022, the Fund lost around 3.5% to wider credit spreads, 3% to higher risk-free rates (i.e. Treasuries rates), but made about 3% from yields, and 4.5% from special situation trades; after fees the net result was -0.85%.

Opportunity:

We are optimistic about our current portfolio, which we feel has a lot of potential. In addition, the opportunities we are seeing in the special situation space today are more plentiful than we have seen since 2020. This is a general pattern we have observed: When markets are disrupted, more opportunities present themselves. We believe that credit markets will be choppy for the foreseeable future and therefore there will be more opportunities to add special situation trades to the portfolio.

During 2022, we increased our exposure in the commercial MBS (“CMBS”) space. Most CMBS positions that we added or increased in 2022 fell into our special situation bucket. We are continuing to see opportunities in CMBS and we may continue to expand our exposure there. Other credit markets are starting to break down and we believe that there will be opportunities in those markets that could see us build exposures there as well.

We are entering 2023 with a baseline yield to maturity in the portfolio of approximately 8% and a duration of 1.7 years. About half of the portfolio has some special situation aspect to it. If nothing changes in credit spreads or interest rates, we think this baseline yield along with expected realization and/or appreciation of special situation trades currently held in the portfolio should deliver strong returns. As we’ve highlighted, the future paths of credit spreads and interest rates are difficult to predict. We are monitoring other structured credit markets for opportunities. As always, investments in these markets will follow our same investment theme - limited credit and interest rate risk and overlooked upside opportunity.

We thank you for your continued support.

Sincerely,

Dr. Eric S. Meyer and William Van de Water

Portfolio Managers

Performance (%): Ending December 31, 2022

Annualized if greater than a year

Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. Results shown reflect the expense waiver, without which the results could have been lower. A fund’s performance, especially for very short periods of time, should not be the sole factor in

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making your investment decisions. To obtain the most recent month end performance information please call 800-253-0412 or visit www.RationalMF.com.

Maximum sales charge for Class A is 4.75%. Maximum Deferred Sales Charge of 1.00% on Class C Shares applies to shares sold within 12 months of purchase. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Rational Funds. This and other important information about the Fund are contained in the prospectus, which can be obtained by calling (800) 253-0412 or at www.rationalmf.com. The prospectus should be read carefully before investing. The Rational Funds are distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Rational Advisors, Inc. is not affiliated with Northern Lights Distributors, LLC.

Important Risk Information

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 a particular issue and may own fewer securities than other mutual funds; the Fund is subject to concentration risk. When the Fund invests in asset-backed securities and mortgage-backed securities, the Fund is subject to the risk that, if the underlying borrowers fail to pay interest or repay principal, the assets backing these securities may not be sufficient to support payments on the securities. 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. Bonds with longer maturities tend to be more sensitive to interest rates than bonds with shorter maturities. Lower-quality bonds, known as “high yield” or “junk” bonds, present greater risk than bonds of higher quality, including an increased risk of default. Credit risk is the risk that the issuer of a security will not be able to make principal and interest payments when due. These factors may affect the value of your investment.

The Fund commenced operations by acquiring all of the assets and liabilities of ESM Fund I, L.P. (the “Predecessor Fund”) in a tax-free reorganization on July 17, 2019 (the “Reorganization”). In connection with the Reorganization, investors in the Predecessor Fund received Institutional Shares of the Fund. The Fund’s investment objectives, policies, guidelines and restrictions are, in all material respects, equivalent to those of the Predecessor Fund. However, the Predecessor Fund was not registered under the 1940 Act and, therefore, was not subject to certain investment restrictions, limitations and diversification requirements that are imposed by the 1940 Act or Subchapter M of the Internal Revenue Code, which, if they had been applicable, might have adversely affected the Predecessor Fund’s performance. The Fund’s Sub-Advisor was the investment adviser to the Predecessor Fund. The Fund’s fees and expenses are expected to be higher than those of the Predecessor Fund, so if the Fund’s expenses were applied to the Predecessor Fund’s performance, the performance would have been lower.

5143-NLD-01262023

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unaudited

December 31, 2022

Rational Inflation Growth Fund (IGOAX, IGOCX, IGOIX)

Dear Fellow Shareholders,

The Rational Inflation Growth Fund (the “Fund”) seeks to achieve its investment objective by investing in securities that the Sub-Advisor expects to increase with elevated U.S. inflation or with expectations of higher U.S. inflation.

The Fund primarily invests in the common stock of domestic and foreign companies, including ADRs and REITs, with any market capitalization within sectors and/or asset classes that the Sub-Advisor believes to have a strong positive correlation to inflation or inflation expectations, including, but not limited to, real estate, infrastructure, energy, basic materials, financials, industrials, and commodities.

The Fund may also invest in ETFs to gain exposure to a sector or asset class when obtaining the desired exposure is not available through investment in common stocks or when investment indirectly through an ETF would otherwise be beneficial to the Fund.

Fund Performance

The Fund performed well vs its composite benchmark index (comprised of 60% S&P 500 Index and 40% Bloomberg US Aggregate Bond Index) during 2022 in a weak overall market. During this period, the Fund returned -1.1%, a +14.7% difference versus its composite benchmark index, which was -15.8%, and +17.0% better than the S&P500’s -18.1% return.

Longer term inflation expectations moderated throughout the year as markets priced in more hawkish Federal Reserve policy, but inflation remained elevated. This led some interest rate sensitive sectors to lag the broader market - such as Real Estate (as represented by the Real Estate Select Sector SPDR Fund), which was down -26.25% during the period. Other sectors benefited relatively from higher interest rates, such as the financial sector (as represented by the Financial Select Sector SPDR Fund), which outperformed the S&P 500 by +7.5%. Inflationary pressures such as higher energy prices over the course of the year due to chronic underinvestment in supply and the war in Ukraine helped the energy sector (as represented by the Energy Select Sector SPDR Fund) return +64.17%, outperforming the S&P 500 by 82.8%. Commodities had a decent year overall, returning +8.7% (as represented by the S&P GSCI) with a strong start to the year led by supply concerns and finished weak on concerns over an economic slowdown. Despite volatility in commodity markets and recession concerns, generally elevated commodity prices relatively benefited the basic materials sector, which returned -14.3% (as represented by the Materials Select Sector SPDR) outpacing the S&P500 by +3.8%.

Performance (%): Ending December 31, 2022

Annualized if less than a year

Maximum sales charge for Class A is 5.75%. Maximum Deferred Sales Charge of 1.00% on Class C Shares applies to shares sold within 12 months of purchase As of the Fund’s current prospectus dated May 1, 2022, the Fund’s Total Annual Fund Operating Expenses, before any fee waiver and/or expense reimbursement, are 2.21%. 2.46%, and 3.21% for I, A, and C

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shares, respectively per recent prospectus. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. To obtain the most recent month end performance information or the Fund’s prospectus please call 800-253-0412 or visit www.RationalMF.com.

Results shown reflect the any fee waiver and/or expense reimbursement, without which the results could have been lower. A fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions.

Summary

We remain confident that inflation is likely to remain persistently higher than the Federal Reserve’s long-term 2% target. The sub-advisor believes the Fund’s investments will deliver positive returns in such an outcome.

This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current Fund prospectus. To obtain a prospectus or other information about the Fund, please visit www.RationalMF.com or call 1-800-253-0412. Please read the prospectus carefully before investing.

Important Risk Information:

As with any mutual fund, there is no guarantee that the Fund will achieve its objective. Investment markets are unpredictable and there will be certain market conditions where the Fund will not meet its investment objective and will lose money. The Fund has a limited history of operations for investors to evaluate. If the Fund is unable to achieve an economic size, expenses will be higher than expected and the Fund might close, which could produce adverse tax consequences for shareholders.

There is no guarantee that the value of the Fund’s investments will increase with inflation or with the expectation of higher inflation in the future. It is possible that the Fund’s investments may be negatively correlated with inflation trends or show no such correlation at all, either because the estimate of correlation by the Sub-Advisor or its proprietary model was wrong or because the correlation in the market changed. Historic correlation is no guarantee of future correlation.

ADRs are subject to the same risks as direct investment in foreign companies discussed below and involve risks that are not found in investments in U.S. companies. ADRs may not track the price of the underlying foreign securities on which they are based, and their value may change materially at times when U.S. markets are not open for trading.

Like a mutual fund, the value of an ETF can fluctuate based on the prices of the securities owned by the ETF. Because the Fund may invest its assets in ETFs that have their own fees and expenses in addition to those charged directly by the Fund, the Fund may bear higher expenses than a fund that invests directly in individual securities.

The Fund’s investments in REITs are subject to the same risks as direct investments in real estate, including sensitivity to general economic downturns and the volatility of local real estate markets.

The Fund is distributed by Northern Lights Distributors, LLC. (Member FINRA) Rational Funds, the subadvisor and Northern Lights Distributors, LLC are separate and unaffiliated.

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The views expressed in this letter were those as of December 31, 2022 and may not necessarily reflect views on the date this letter is first published or anytime thereafter. These views are intended to help shareholders in understanding the Fund’s present investment methodology and do not constitute investment advice.

1133-NLD-01272023

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