ALPHACENTRIC LIFESCI HEALTHCARE FUND
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AlphaCentric LifeSci Healthcare Fund
Subadvised by LifeSci Partners, a global consulting firm specializing in life sciences, medical technology and healthcare
Unconstrained Biotech/Healthcare Portfolio focused on the following areas:
Disruptive life sciences innovators LYFIX
Robust cash flow/revenue growth companies LYFAX
Direct funding through private placements, IPOs & other structured transactions
LYFCX
Portfolio Manager is co-inventor of FDA approved therapeutic & eight drug patents
©2021 AlphaCentric Advisors | ACPB LYF 06302021 | 7029-NLD-07222021
Context: Rare Disease Discovery Compared to FDA Approved Orphan Drugs
5,683 5,935
5,429 According to the WHO
5,179
4,963 An "orphan" disease, by US
4,697
criteria, is a rare disease that
affects fewer than 200,000
people.
These are serious, chronic
diseases, that may be life-
threatening.
Approximately 1 in 15 persons
worldwide could be affected
by an “orphan” disease.
957
2015 2016 2017 2018 2019 2020
FDA Approved Orphan Drugs Discovered Genetic Diseases
Source: LifeSci, WHO: https://www.who.int/medicines/areas/priority_medicines/Ch6_19Rare.pdf
2 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIX
Biotech Funding vs Operation Warp Speed
Aggregate Biotech Funding Throughout 2020
Compared to Operation Warp Speed Spending
$90
With recent biotech Follow Ons IPOs
$80
funding levels Private Funding Operation Warp Speed
greatly outpacing $70
the amount of $60
capital raised for
Billions of USD
$50
Operation Warp
Speed, we expect $40
a continued
$30
innovation boom in
life sciences. $20
$10
$0
Q1 Q2 Q3 Q4 Operation
Warp Speed
Source: LifeSci Capital Analysis, Capital IQ, Dealogic, Congressional Research Report
3 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIX
Healthcare: The Investment Sector Poised for Rapid Growth
Healthcare: Secular Growth Drivers
Employment in healthcare occupations is
projected to grow 15% from 2019 to 2029
Expanding
Access
Increasing
Life Expectancy
That's much faster
Demographic than the average for all
Shift
other job sectors, and
Technology will add about
Advances
Growing
2.4 million new jobs.
Population U.S. Bureau of Labor
4 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIX
Mark Charest, PhD - Portfolio Manager
12+ year career as Co-founder of Fund Sub-
an investor at several Advisor, LifeSci Fund
specialized $1B+ AUM Management
healthcare funds
Co-inventor on LifeSci Fund
eight biotechnology Management is an
and pharmaceutical independent division
patents of LifeSci Partners
Led Medicinal Chemistry Lab
at the Novartis Institutes for
BioMedical Research focused on
Oncology drug discovery
Mark Charest, PhD
Portfolio Manager Since Inception
Ph.D. and M.S. in
Chemistry and Chemical
Biology from
Harvard University
5 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIXLeveraging the Power of LifeSci Partners
LifeSci Partners is a global provider of
Strategic Scientific Consulting Services
established in 2009
Financial Savvy
Research-Driven Investment Banking
Venture Investing
Investor Communications
Strategy Development
PR and Marketing Communications
The Investment Doctors. LifeSci's team of 40+ MDs and PhDs are engaged
with healthcare companies worldwide.
Dr. Charest leverages this formidable level of resources in managing the Portfolio.
6 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIXLeveraging the Power of LifeSci Partners
LifeSci Fund Management synthesizes knowledge and insights across LifeSci Offices
the global LifeSci Partners Platform to enhance fundamental due Boston
diligence activities. Geneva
Milan
12 Member registered research team, >500 publications annually, hosts London
events with leading academic and medical thought leaders at every New York
major medical conference across the globe Paris
Charlotte
40+ PhDs and MDs across the platform Chicago
In 2020, LifeSci hosted: Puerto Rico
8,000+ Corporate Meetings San Diego
160 Key Opinion Leader events San Francisco/Silicon Valley
43 executive/board placements Tel-Aviv
7 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIXThree Thematic Investment Areas: Examples
Disruptive Robust Cash Flow/ Direct Company Funding
Life Science Revenue Growth through Private Placements, IPOs
Innovator Company and other structured transactions
Viracta Gilead Athira Pharma Series B
Therapeutics Inc. Sciences, Inc. Private Funding
Precision oncology company Approximately 50% net operating D eveloping novel mechanism
targeting virus-associated cancers margin trading at single digit targeting regeneration of neuronal
Epstein Barr Virus positive [EBV+] earnings and cash flow multiples damage to treat Alzheimer's and
cancer patients often have U nderappreciated growth potential Parkinson's patients
shortened survival from recently launched products, P rivate financing and IPO proceeds
V iracta’s synthetic lethality specifically oncology pipeline directly funded the company’s
approach has demonstrated up to late stage Alzheimer's clinical
an 80% objective response rate in development trials which are
certain EBV+ lymphoma patients expected to be completed in 2022
8 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIXInvestment Process
Systematic Screening of Life Sciences Corporate Universe,
INITIAL leveraging LifeSci Research Team
(500+ Companies with >$1 Trillion aggregate market cap) Life Science
s Corporate Universe
SCREEN
Triage based on scientific fundamentals and financial metrics
SECTOR Perform sector diligence & gather KOL input via LifeSci network
DILIGENCE/ Identify highly innovative thematic areas of interest and disruptive
KEY OPINION growth opportunities Watch List of Potential Investments
LEADER REVIEW Review financial metrics using proprietary analytics dashboard
Perform comprehensive fundamental analysis on prioritized companies using
COMPREHENSIVE proprietary diligence methodology, considering the following:
FUNDAMENTAL
Scientific/medical evidence underlying key products, Competitive landscape, Prioritized Companies
ANALYSIS
Regulatory strategy, Market size, Management team, and Analyst coverage
Portfolio Management
Conduct ongoing contact with management
Relative risk/reward analysis guides position size and capital deployment among three teams and Key Opinion Leader community to
CONSTRUCT key thematic buckets: 1) Disruptive life sciences innovators; 2) Robust cash flow/revenue Portfolio
validate ideas
PORTFOLIO growth companies; 3) Direct company funding through private placements, IPOs and other
structured transactions Monitor price changes relative to operational
progress and scientific/medical data releases
9 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIXFund Results
LYFIX VS. Morningstar Health (MF + ETF) Universe
Manager Risk/Return December 2019 - June 2021
AlphaCentric LifeSci Healthcare I S&P Biotechnology Select Industry Index
Morningstar Health (MF+ETF) Universe S&P 500 Health Care Sector TR Index S&P 500
100%
Higher Return
The Fund has achieved 80%
greater returns than
all but one of the 60%
other funds in the
Morningstar Health
Source: Data provided by Zephyr StyleADVISOR®
40%
(MF+ETF) Universe that
have taken similar or
less risk. 20%
Lower Return
0%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Data shown represents past performance and is not Standard Deviation
indicative of future results. Less Risk More Risk
10 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIXFund Results
Fund Objective Performance & Risk Statistics as of 6/30/21
The Fund’s objective is to achieve long-term capital appreciation. LYFIX
S&P Biotechnology Select S&P 500 Health Care
Industry Total Return Index Sector TR Index
Cumulative Return 65.43% 45.26% 31.45%
Fund Performance as of 6/30/21 (Annualized if greater than 1 year) Annualized Return 37.43% 26.59% 18.85%
Inception Date: 11/29/19 QTD 6 Months YTD 1 Year Inception Standard Deviation 17.53% 29.03% 15.73%
LYFIX 3.72 5.62 5.62 46.79 37.35 Sharpe Ratio (RF 0.0431%) 2.13 0.91 1.20
LYFAX 3.66 5.49 5.49 46.43 37.13
Risk-Free Rate 0.0431% - -
LYFCX 3.41 5.10 5.10 45.79 36.76
Alpha 25.34% - -
S&P Biotechnology Select Industry Total Return Index 8.40 11.85 11.85 27.92 31.45
Beta 0.45 - -
S&P 500 Health Care Sector TR Index -0.05 -3.66 -3.66 21.19 26.54
R-Squared 0.63 - -
Class A After Sales Charges -2.30 -0.55 -0.55 37.98 32.11
Past performance is no guarantee of future results. There is no assurance that the Fund will achieve its investment
objective. Share Class Net Expense* Gross Expense *The advisor has contractually agreed to waive fees and/
The maximum sales charge for Class “A” Shares is 5.75%. Performance is historic and does not guarantee future or reimburse expenses to maintain the Fund’s total
Class A LYFAX 1.73% 2.61% annual operating expense ratio at 1.65%, 2.40% and
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 Class C LYFCX 2.48% 3.36% 1.40% for Class A shares, Class C shares and Class I
performance data quoted. To obtain the most recent month end performance information or the funds prospectus shares, respectively, excluding 12b-1 fees through July
Class I LYFIX 1.48% 2.36% 31, 2021.
please call the Fund, toll free at 1-844-ACFUNDS (844-223-8637). You can also obtain a prospectus at www.
AlphaCentricFunds.com.
The Total Annual Fund Operating Expenses are 2.61%, 3.36%, and 2.36%, for Share Class A, C, and I, respectively.
All data is as of the most recent quarter-end other than the annual return which is annualized.
11 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIXRisk Disclosures The Fund may be non-diversified and the value and/or volatility of a single issuer could have a greater impact on Fund performance. The Fund may be susceptible to an increased risk of loss due to adverse occurrences affecting the Fund more than the market as a whole, because the Fund's investments are concentrated. Some securities held by the Fund may be difficult to sell, or illiquid, particularly during times of market turmoil. The Fund can invest in smaller-sized companies which may experience higher failure rates than larger companies and normally have a lower trading volume than larger companies. The Fund can have risk associated with the biotechnology and pharmaceutical industry in which these companies may be heavily dependent on clinical trials with uncertain outcomes and decisions by the U.S. Food and Dr ug Administration. Companies in the technology industries have different risks including, but not limited to, products becoming obsolete, and entrance of competing products. Further, these companies are dependent on patent protection, and the expiration of patents may adversely affect the profitability of the companies. The Fund invests in IPOs at the time of the initial public offering and in post-IPO trading. IPOs are often subject to extreme price volatility and speculative trading. The ETFs in which the Fund invests are subject to advisory fees and other expenses as a result the cost of investing in the Fund will be higher than the cost of investing directly in the underlying funds. The Fund can have risk related to option investing. There are special risks associated with investments in foreign companies including exposure to currency fluctuations, less efficient trading markets, political instability and differing auditing and legal standards. All investments involve risks, including possible loss of principal, there is no assurance that the Fund will achieve its investment objective. This presentation is prepared for internal communications only and shall not constitute an offer to sell or the solicitation of any offer to buy which may only be made at the time registration statement is filed. These securities shall not be offered or sold in any jurisdiction in which such offer, solicitation or sale would be unlawful until the requirements of the laws of such jurisdiction have been satisfied. While all the information prepared in this presentation is believed to be accurate, LifeSci Partners (collectively all LifeSci branded entities such as LifeSci Advisors, LLC, LifeSci Capital, LLC, etc.) and/or Phenomic Capital LLC (Phenomic) make no express warranty as to the completeness or accuracy nor can they accept responsibility for errors appearing in this presentation. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. This presentation is not intended for public use or distribution. Phenomic and LifeSci Partners are furnishing this presentation on a confidential basis. These materials may not be reproduced, either whole or in part, nor may the contents be disclosed to any third party. The information provided herein, including, without limitation, investment strategies, investment restrictions and parameters, may be modified, terminated or supplemented at any time without further notice in a manner which LifeSci Partners and/or Phenomic believe is consistent with its overall investment objective. The security holdings are presented to illustrate examples of the securities that the Fund has bought and the diversity of areas in which the Fund may invest, and may not be representative of the Fund’s current or future investments. Portfolio holdings are subject to change and should not be considered investment advice. Investors should carefully consider the investment objectives, risks, charges and expenses of the AlphaCentric Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 844-ACFUNDS (844-223-8637) or at www.AlphaCentricFunds.com. The prospectus should be read carefully before investing. The AlphaCentric Funds are distributed by Northern Lights Distributors, LLC, member FINRA. AlphaCentric Advisors LLC is not affiliated with Northern Lights Distributors, LLC. 12 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIX
Key Definitions Investment Terms Used Alpha: A measure of risk-adjusted return. Beta: A statistic that measures the volatility of the fund, as compared to that of the overall market. Risk-adjusted Alpha: A measure of the difference between a fund’s actual returns and its expected performance, given its level of risk as measured by beta. R-Squared: R-Squared indicates how much of a fund’s fluctuations were attributable to movements in the fund’s benchmark index. Sharpe Ratio: A statistical measure that uses standard deviation and excess return to determine reward per unit of risk. A higher Sharpe ratio implies a better historical risk-adjusted performance. Standard Deviation: A statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time. Index Definitions (Indices assume reinvestment of all dividends and distributions. You cannot invest directly in an index.) S&P Biotechnology Select Industry Total Return Index: Represents the bio-technology sub-industry portion of the S&P Total Markets Index. S&P 500 Health Care Sector TR Index: Comprises those companies included in the S&P 500 that are classified as members of the GICS health care sector. There is no assurance that the Fund will achieve its investment objective. You cannot invest directly in an index. Unmanaged index returns do not reflect fees, expenses or sales charges. 13 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIX
Thank you for your interest in the Fund.
Contact Us:
+1 855 674 FUND LYFIX
LYFAX
www.alphacentricfunds.com LYFCX
info@alphacentricfunds.comAppendix
LYFIX
LYFAX
LYFCXHealthcare Sector Performance
Risk/Return: January 2011 - June 2021
Higher Return
20% Information Technology
Consumer Discretionary
Healthcare
The Healthcare
15% S&P 500 sector has
Industrials
Real Estate
Financials exhibited an
Consumer Staples
10% Materials
attractive risk/
Source: Data provided by Zephyr StyleADVISOR®
Utilities
Communication
reward profile
versus other
5%
sectors.
Lower Return
0% Energy
0% 5% 10% 15% 20% 25% 30%
Standard Deviation
Less Risk More Risk
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
APPENDIX 2 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIXAthira: A Direct Funding Story
June 2020: Fund participated in January 2021: ATHA raised $90M
$85M Series B Private Financing at 33% premium to IPO price
September 2020: ATHA completes IPO raising
>$200M at >130% premium to Series B Private
Athira Pharma (ATHA) Financing Valuation
Disruptive biopharma
innovator aiming to restore
neuronal health for those
suffering from neurological
diseases so that patients can
regain their memories, lives,
and family relationships.
Athira is currently advancing
its lead therapeutic candidate,
ATH-1017, a novel small
molecule, in a phase 3 pivotal
trial for Alzheimer’s.
Source: StockCharts.com
The security holdings are presented to illustrate examples of the securities that the fund has bought and the diversity of areas in which the funds may invest and
may not be representative of the fund’s current or future investments. Portfolio holdings are subject to change and should not be considered investment advice.
APPENDIX 3 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIXParticipating in the Upside While Mitigating the Downside
Drawdown
December 2019 - June 2021
0%
-2%
-4%
-6% AlphaCentric LifeSci Healthcare I
Max Drawdown: -5.63%
-8%
-10%
-12%
S&P Health Care (Sector) TR Index Max Drawdown: -12.67%
-14%
50/50 Blend: S&P 500 Health Care (Sector) TR Index/S&P Biotechnology Select Industry Index
-16% Max Drawdown: -15.57%
-18%
S&P Biotechnology Select Industry Index Max Drawdown: -18.52%
-20%
Nov Mar Jun Sep Dec Mar Jun
2019 2020 2020 2020 2020 2021 2021
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
APPENDIX 4 | ALPHACENTRIC LIFESCI HEALTHCARE FUND | LYFAX LYFCX LYFIXYou can also read
