USA MUTUALS BEATING BETA FUND - CLASS C SHARES (BEAQX) Exchange: NMFQS

DELISTED - The Beating Beta Fund, a diversified investment company, invests primarily in common stocks of companies of large capitalizations, which include U.S. issuers as well as foreign issuers whose securities are traded in the U.S. as American Depositary Receipts (“ADRs”).  ADRs are equity securities traded on U.S. exchanges that are generally issued by banks or trust companies to evidence ownership of foreign equity securities.  Large capitalization companies are those that are listed on the Standard & Poor’s (“S&P”) 500® Index. Under normal market conditions, USA Mutuals Advisors, Inc. (the “Advisor”), the Beating Beta Fund’s investment advisor, seeks to achieve the Fund’s investment objective by selecting equity securities of companies the Advisor has identified as the best 15% of stocks in each Global Industry Classification Standard (“GICS”) sector within the S&P 500® Index by evaluating the six company characteristics discussed below for the companies in each sector.  GICS includes ten sectors, 24 industry groups, and 67 industries.  This strategy yields a well-diversified portfolio of approximately 75 stocks with an industry composition similar to the equal-weighted S&P 500® Index. In selecting securities, the Advisor’s strategy combines six company characteristics that have each been shown individually to generate above average returns, including: 1) stock price relative to company fundamentals, 2) net stock issuance, 3) earnings quality, 4) increases or decreases in company assets, 5) profitability, and 6) past performance.  By combining these characteristics, each company is evaluated based on a comprehensive review of the six company characteristics, with no single characteristic given outsized weighting, creating a well-rounded portfolio.  Additionally, the use of multiple characteristics keeps the turnover lower as individual characteristics can change much more rapidly than a group of characteristics.  Finally, the Advisor believes combining the characteristics is the most effective method for selecting securities.  The use of contrary characteristics, capturing different aspects of a firm, can reinforce the information value of each. The Beating Beta Fund’s portfolio will have a beta near 1.  Beta is a measure of volatility, or risk level, of a portfolio in comparison to the market as a whole.  A beta of 1 indicates that a portfolio will move with the market.  A beta of less than 1 means the portfolio will be less volatile than the market and a beta of greater than 1 indicates that the portfolio will be more volatile than the market.  The Fund’s portfolio, through sector diversification, will also be highly correlated with the equal-weighted S&P 500® Index.  Thus, the Fund’s portfolio seeks to outperform the large cap equities market without taking additional risk (beta) and with low risk of tracking error and high correlation with the market.