Northern Lights launches two Innealta Funds tied to countries/sectors

By Toni Weeks

San Diego, Dec. 19 - Northern Lights Fund Trust II announced the launch of the Innealta Capital Sector Rotation Fund and the Innealta Capital Country Rotation Fund in an N-1A filing with the Securities and Exchange Commission.

The Innealta Capital Country Rotation Fund seeks capital appreciation, current income and preservation of capital. The fund's investment strategy is to invest in up to 20 equally weighted countries based on the specific risk/reward characteristics of each country by investing in representative equity-only exchange-traded funds. Each country is weighted at 5%. The countries analyzed for investment include, among others, Australia, Belgium, Canada, China, France, Germany, Hong Kong, Italy, Japan, Korea, Malaysia, Mexico, Netherlands, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, United Kingdom, Brazil, Austria, Columbia, Egypt, India, Israel, Peru and Russia.

The strategy seeks to outperform its benchmark, which is a composited consisting of the MSCI ACWI Ex-U.S. Index weighted at 60% and the Barlcays Capital U.S. Aggregated Bond Index weighted at 40%. The fund expects to invest about 98% of its assets in ETFs.

The Innealta Capital Sector Rotation Fund also aims to achieve capital appreciation, current income and preservation of capital. The fund will invest in up to 10 sectors as defined by the S&P Global Industry Classification Structure based on the specific risk/reward characteristics of each sector by investing in representative ETFs. Each sector will be weighted 10%. The sectors include, but are not limited to, consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecom services and utilities.

The shares from either fund will not incur a maximum sales charge. Both class N and class I shares, however, will incur a redemption fee of 2% of the amount redeemed if done so within 60 days of purchase.

Management fees for both classes of both funds will be 1%. The fund's adviser has agreed to waive fees and/or absorb expenses until March 31, 2013 in order to limit fund operating expenses to 1.74% and 1. 24% for class N and class I shares, respectively. As a result, the total annual fund operating expenses taking into account the fee waiver will be 1.97% for class N shares and 1.47% for class I shares.

The portfolio manager for both funds will be Gerald W. Buetow, Jr., chief investment officer and a portfolio manager for Aliso Viejo, Calif.-based Al Frank Asset Management, the fund's investment adviser.

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