HATTERAS LONG SHORT DEBT FUND CLASS C (HFICX) Exchange: NMFQS

DELISTED - As a mutual fund of funds, the Hatteras Long/Short Debt Fund pursues its investment objective by allocating the Fund’s assets primarily to one or more affiliated investment companies (the “Affiliated Funds”)  that employ various long/short or short-only investment styles. Short strategies involve selling a security the seller does not own in anticipation of purchasing the same security in the future at a lower price to close the short position. The Fund invests its assets with a weighting in one or more of the Affiliated Funds consistent with its objective of achieving long term capital appreciation, while seeking to generate total return through current income, capital preservation, and capital appreciation strategies. The Advisor is also the investment advisor to the Affiliated Funds, and in that role, the Advisor selects sub-advisors for the Affiliated Funds and allocates the assets of each Affiliated Fund among its respective sub-advisors. The Fund may invest up to 100% of its assets in shares of the Affiliated Funds. In addition to investing in Affiliated Funds, the Fund may invest in non-affiliated investment companies including exchange-traded funds (“ETFs”) (collectively with the Affiliated Funds, the “Underlying Funds”) as part of its principal investment strategies. The Fund’s performance and ability to achieve its objective rely on the performance of the Underlying Funds in which it invests. The Fund’s strategy to achieve its objective is to invest, indirectly through its investment in one or more Underlying Funds, at least 80% of its net assets (plus any borrowings for investment purposes) in long/short strategies that utilize debt and debt-related securities. Such strategies are used to take advantage of perceived discrepancies in the market prices of certain convertible bond, common stock, fixed income, asset-backed and mortgage-backed securities, and derivative securities. Debt-related securities primarily include, but are not limited to, derivatives linked to debt instruments, such as credit-default swaps. By allocating its assets to Underlying Funds employing various investment styles, the Fund seeks to achieve its investment objective with less risk and lower volatility than if the Fund utilized a single manager or single strategy approach. The Advisor believes that the use of such Underlying Funds may mitigate losses in generally declining markets because the Fund will be invested in Underlying Funds utilizing non-correlated strategies. However, there can be no assurance that losses will be avoided. Investment strategies that have historically not been correlated or demonstrated low correlations to one another or to major world financial market indices may become correlated at certain times, such as during a liquidity crisis in global financial markets. During such periods, certain hedging strategies may not function as anticipated. The principal strategies to be employed by the Underlying Funds are as follows: · Relative Value – Long/Short Debt - These strategies are designed to take advantage of perceived discrepancies in the market prices of certain fixed income securities, certain convertible bond, common stock, and derivative securities and attempts to achieve total return through current income, capital preservation and capital appreciation. These strategies are based on credit assessments of individual issues and sectors and are effectuated by expressing views on specific credits by taking long and/or short positions in cash debt and debt-related securities, which may include corporate debt, sovereign debt, credit derivatives, bank loans, common and preferred stock, options and futures contracts, privately negotiated options, shares of investment companies, bonds, credit derivatives and other financial instruments. The Relative Value—Long/Short Debt Sub-Strategies may include the following strategies utilizing long/short funds and/or short only funds: ○ Multi-Strategy / Relative Value. The Underlying Funds may employ long and/or short strategies designed to take advantage of a spread between related yield instruments in which one or multiple components of the spread contains a fixed income, derivative, equity, real estate, or master limited partnership (“MLP”) instrument, or a combination of these or other instruments. By using long and/or short investments to attempt to gain exposure to the spread between such instruments, these strategies seek to mitigate or profit from the Underlying Funds’ exposures to interest rate and other general market risks. ○ Credit Arbitrage. The Underlying Funds may employ long and/or short strategies designed to isolate attractive opportunities in corporate fixed income securities; these include both senior and subordinated claims as well as bank debt and other outstanding obligations, structuring positions with little or no broad credit market exposure. ○ Fixed Income – Corporate. The Underlying Funds may employ long and/or short strategies designed to take advantage of a spread between related instruments in which one or multiple components of the spread is a corporate fixed income instrument. By using long and/or short investments to attempt to isolate exposure to the spread, these strategies seek to mitigate or profit from the Underlying Funds’ exposures to interest rate and other general market risks. ○ Fixed Income – Sovereign. The Underlying Funds may employ long and/or short strategies designed to take advantage of a spread between related instruments in which one or multiple components of the spread is a sovereign fixed income instrument. By using long and/or short investments to attempt to gain exposure to the spread between such instruments, these strategies seek to mitigate or profit from the Underlying Funds’ exposures to interest rate and other general market risks. ○ Fixed Income and High Yield (High-Risk) Investment Strategies. The Underlying Funds may employ long and/or short strategies designed to take advantage of deeply discounted debt securities of companies that appear to have significant upside potential. The Underlying Funds may invest in debt securities that fall below investment grade debt — commonly “junk bonds.” These strategies are intended to generate capital gains and/or income in both rising and falling interest rate environments. The Adviser determines the amount of the Fund’s assets to allocate to each strategy based on market conditions and the strategies that the Adviser expects will best achieve the Fund’s investment objective. The allocation of assets may change over short or long periods of time. The Underlying Funds may invest in securities of all market capitalizations (small, mid and large capitalization companies). Such securities include debt instruments, including convertible debt and high yield securities (i.e., “junk bonds”), options, futures, and privately negotiated options. The Underlying Funds may invest in debt instruments of any maturity, duration, or credit quality. The Underlying Funds may invest in foreign securities (including those from developing countries), depositary receipts relating to foreign securities and may enter into equity, interest rate, index, and currency rate swap agreements. Derivative instruments in which the Underlying Funds may invest include options, futures, and swaps. The Underlying Funds may invest in these types of instruments to reduce risk through hedging or to take market risk (i.e., for speculative purposes). The Underlying Funds may invest a substantial portion of their assets in securities that are not publicly traded, but that are eligible for purchase and sale by certain qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, as well as other restricted securities. The Advisor generally expects that such restricted securities will be liquid at the time of their purchase, as determined by the Fund’s policies and procedures approved by the Fund’s Board of Trustees. The Fund and each Affiliated Fund may not directly invest more than 15% of their respective net assets in illiquid securities, and the Advisor expects that the Fund will not invest, directly or indirectly, more than 15% of its net assets in illiquid securities. The Underlying Funds may also invest up to 100% of their assets in shares of other investment companies that invest in the types of securities mentioned above, including shares of ETFs. Because the value of fixed-income and fixed–income related securities may be significantly affected by changes in interest rates, the Advisor also evaluates the duration of the fixed-income instruments held by each Underlying Fund to determine its exposure to changes in interest rates. The Advisor considers its expectations for any changes in interest rates and actively manages the Fund’s asset allocation to mitigate the Fund’s interest rate risk by favoring shorter duration instruments when the Advisor anticipates that interest rates will increase and longer duration instruments when the Advisor anticipates that interest rates will decline. As of the date of this Prospectus, interest rates in the United States are at or near historic lows, which may increase the Fund’s or Underlying Fund’s exposure to risks associated with rising interest rates.