|
Inspire Corporate Bond Impact ETF
|
IBD
|
a series of Northern Lights Fund Trust IV
|
SUMMARY PROSPECTUS
|
MARCH 30, 2020
|
Before you invest, you may want to review the
Fund’s Prospectus, which contains more information about the Fund and its risks. The Fund’s prospectus and Statement
of Additional Information, both dated March 30, 2020, are incorporated by reference into this Summary Prospectus. You can obtain
these documents and other information about the Fund online at www.inspireetf.com/fund-documents/. You can also obtain these documents
at no cost by calling 877.658.9473 or by sending an email request to OrderInspireETFs@UltimusFundSolutions.com. Shares of the Fund
are listed and traded on NYSE Arca (the “Exchange”).
Beginning on January 1, 2021, as permitted
by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder
reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will
be made available on the Funds’ website www.inspireinvesting.com, and you will be notified by mail each time a report is
posted and provided with a website link to access the report.
If you have already elected to receive shareholder
reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder
reports and other communications from the Funds electronically anytime by contacting your financial intermediary (such as a broker-dealer
or bank).
Investment Objective: The Inspire Corporate
Bond Impact ETF (the “Fund”) seeks to replicate investment results that generally correspond, before fees and expenses,
to the performance of the Inspire Corporate Bond Impact Equal Weight Index (“Corporate Bond Index”).
Fees and Expenses of the Fund: This
table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Investors purchasing or selling
shares of the Fund in the secondary market may be subject to costs (including customary brokerage commissions) charged by their
broker. These costs are not included in the expense example below.
Annual Fund Operating Expenses
(expenses that you pay each year
as a percentage of the value of your investment)
|
|
Management Fees
|
0.30%
|
Distribution and Service (12b-1) Fees
|
None
|
Other Expenses
|
0.20%
|
Total Annual Fund Operating Expenses
|
0.50%
|
Example: This Example is intended
to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000
in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual
costs may be higher or lower, based upon these assumptions your costs would be:
1 Year
|
3 Years
|
5 Years
|
10 Years
|
$51
|
$160
|
$280
|
$628
|
Portfolio Turnover: The Fund
pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher
portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance.
During the fiscal year ended November 30, 2019, the Fund’s portfolio turnover rate was 18% of the average value of its portfolio.
Principal Investment Strategies: The
Fund generally will invest at least 80% of its total assets in the component securities of the Corporate Bond Index. CWM Advisers,
LLC dba Inspire (the “Adviser” or “Index Provider”), the Fund’s index provider (and also the Fund’
investment adviser) selects domestic corporate bonds issued by companies that have market capitalizations of $5 billion or more,
have credit ratings of BBB- or higher from Standard and Poor’s or Baa3 or higher from Moody’s and which have an Inspire
Impact Score® of zero or higher. The Inspire Impact Score® is a proprietary selection methodology that is designed to assign
a score to a particular security based on the security’s alignment with biblical values and the positive impact that company
has on the world through various environmental, social and governance criterion.
The methodology removes from the investment
universe the securities of any company that has any degree of participation in the following activities or products that do not
align with biblical values:
-
Abortifacients - Company produces abortifacient
drugs. This category includes all pharmaceuticals used to terminate a pregnancy anytime from the moment of conception onward, including
those labeled as “contraceptives” but which may cause a fertilized egg to be destroyed.
-
Abortion Philanthropy - Corporate guided
philanthropy to organizations that advocate for or provide abortions (excludes employee matching programs.)
-
Abortion Legislation - Corporate sponsored
political, legal or other activism that advocates for or provides abortions.
-
Abortion Procedures - Company offers
abortion procedures as a service.
-
Gambling
- Company generates revenue from gambling. This category includes the operation of casinos or other gambling facilities, as well
as manufacturing gambling machinery and or other gambling specific equipment.
-
Alcohol
- Company produces or specifically distributes alcoholic beverages.
-
Human Rights -
Exploitative labor practices, working conditions or partnerships with exploitative supply partners, including unjust governmental
entities and regimes.
-
LGBT
Legislation - Corporate sponsored legal, political or other activism that advocates for the promotion and acceptance of the LGBT
lifestyle.
-
LGBT Philanthropy - Corporate guided
philanthropy to organizations that advocate for the promotion and acceptance of the LGBT lifestyle (excludes employee match programs).
-
LGBT Promotion -
Provides products or services designed specifically for the promotion and acceptance of the LGBT lifestyle, or otherwise
uses corporate influence for the promotion and acceptance of the LGBT lifestyle.
-
Pornography
- Company produces or distributes pornography. This category includes all media types, such as film, print and online. Also included
are companies that produce AO (Adult Only) rated video games which contain pornographic content.
-
Tobacco
- Company derives revenue from growing, manufacturing or distributing tobacco products.
The methodology then assigns a positive
score based on the company’s track record of acting in alignment with biblical values across the following environmental,
social and governance (ESG) categories:
-
Corporate Governance - Company
exhibits above average Corporate Governance performance relative to its industry peer group. This category considers ownership
structure, voting, proxy procedures, board structure and tenure, ethical business practices and executive compensation.
-
Data Security & Privacy - Company
exhibits above average Data Security & Privacy performance relative to its industry peer group. This category considers data
and privacy policies and practices related to the corporation and customer data.
-
Environmental Stewardship - Company
exhibits above average Environmental stewardship performance relative to its industry peer group. This category considers impacts
on the atmosphere, land and water including carbon emissions, deforestation, biodiversity, waste water, water pollution and other
environmental stewardship issues.
-
Innovation - Company
exhibits above average Innovation performance relative to its industry peer group. This category considers quality and innovation
throughout all aspects of product development and distribution, including R&D, packaging and disposal.
-
Labor Practices - Company
exhibits above average Labor Practices performance relative to its industry peer group.
This category considers compliance with fair labor standards for union and non-union employees, including employee retention, education,
training, health, safety, compensation, benefits, diversity and mentoring programs.
-
Marketing Ethics - Company
exhibits above average Marketing Ethics performance relative to its industry peer group.
This category considers honest and appropriate communications and marketing channels, transparent product labeling and social impact
of marketing efforts.
-
Political Action - Company
exhibits above average Political Action performance relative to its industry peer group.
This category considers lobbying practices, attempts at regulatory capture and undue political influence such that undermines the
government's ability to serve the public interest.
-
Renewable Energy - Company
exhibits above average Renewable Energy performance relative to its industry peer group for the production and/or use of renewable,
sustainable energy.
-
Social Impact - Company
exhibits above average Social Impact performance relative to its industry peer group. This category considers a company's overall
impact on their communities, positive human rights behaviors, philanthropy and charity.
-
Supply Chain - Company
exhibits above average Supply Chain performance relative to its industry peer group. This category considers a company's overall
governance of their supply chain, including social and environmental impacts and ensuring proper compliance with international
human rights standards.
The Index Provider uses software that analyzes
publicly available data relating to the primary business activities, products and services, philanthropy, legal activities, policies
and practices when assigning Inspire Impact Scores® to a company. Two hundred fifty (250) Bonds from the top 200 issuers with
the highest Inspire Impact Scores® are included in the Corporate Bond Index and under normal circumstances are equally weighted
across four maturity tranches of 0-3 years, 3-5 years, 5-7 years and 7-10 years, to arrive at an average maturity of approximately
5 years of all holdings. The Inspire Impact Scores® of the securities in the Corporate Bond Index are reviewed periodically
(at least annually), and the Corporate Bond Index is rebalanced quarterly. If, upon review, the Inspire Impact Score® of a
security falls below an acceptable level, the security is removed from the Corporate Bond Index and replaced with a higher scoring
security.
Under normal market conditions, the Fund invests
at least 80% of its assets (defined as net assets plus borrowing for investment purposes) in domestic corporate bonds. The Fund
may concentrate its investments in a particular industry or group of industries to the extent that the Index concentrates in an
industry or group of industries.
Principal Investment Risks: As with
all funds, there is the risk that you could lose money through your investment in the Fund. Many factors affect the Fund’s
net asset value and price of Shares and performance.
The following describes the risks the Fund
bears with respect to its investments. As with any fund, there is no guarantee that the Fund will achieve its goal.
Asset Class Risk. Securities in the
Corporate Bond Index or in the Fund’s portfolio may underperform in comparison to the general securities markets or other
asset classes.
Authorized Participant Risk. Only an
Authorized Participant (“AP”) may engage in creation or redemption transactions directly with the Fund. The Fund has
a limited number of institutions that may act as APs on an agency basis (i.e., on behalf of other market participants).
To the extent that APs exit the business or are unable to proceed with creation or redemption orders with respect to the Fund and
no other AP is able to step forward to create or redeem Creation Units, Fund shares may be more likely to trade at a premium or
discount to net asset value and possibly face trading halts or delisting. AP concentration risk may be heightened for exchange-traded
funds (“ETFs”) that invest in non-U.S. securities or other securities or instruments that have lower trading volumes.
Biblically Responsible Investment Risk.
The Fund invests at least 80% of its assets in the component securities of the Index which uses the Inspire Impact Score®
and related biblical values screening criteria in selecting its component securities. As a result of its strategy, the Index’s
exclusion of securities of certain issuers for nonfinancial reasons may cause the Fund to forgo some market opportunities available
to funds that do not use these criteria. This could be due to biblically responsible companies falling out of favor with investors
or failing to perform as well as companies that do not receive a favorable Inspire Impact Score®.
Concentration Risk. The Fund may focus
its investments in securities of a particular industry to the extent the Corporate Bond Index does. Economic, legislative or regulatory
developments may occur that significantly affect the industry. This may cause the Fund's net asset value to fluctuate more than
that of a fund that does not focus in a particular industry.
Early Close/Trading Halt Risk. An exchange
or market may close or impose a market trading halt or issue trading halts on specific securities, or the ability to buy or sell
certain securities or financial instruments may be restricted, which may prevent the Fund from buying or selling certain securities
or financial instruments. In these circumstances, the Fund may be unable to rebalance its portfolio, may be unable to accurately
price its investments and may incur substantial trading losses.
ETF Structure Risks. The Fund is structured as an ETF
and as a result is subject to the special risks, including:
-
Not Individually Redeemable.
The Fund’s shares (“Shares”) are not redeemable by retail investors and may be redeemed only by the APs at net
asset value (“NAV”) only in Creation Units. A retail investor generally incurs brokerage costs when selling Shares.
-
Trading Issues. Trading in Shares
on the NYSE Arca (the “Exchange”) may be halted due to market conditions or for reasons that, in the view of the Exchange,
make trading in Shares inadvisable, such as extraordinary market volatility. There can be no assurance that Shares will continue
to meet the listing requirements of the Exchange, which may result in the trading of the Shares being suspended or the Shares being
delisted. An active trading market for the Shares may not be developed or maintained. If the Shares are traded outside a collateralized
settlement system, the number of financial institutions that can act as APs that can post collateral on an agency basis is limited,
which may limit the market for the Shares.
-
Market Price Variance Risk. The
market prices of Shares will fluctuate in response to changes in NAV and supply and demand for Shares and will include a “bid-ask
spread” charged by the exchange specialists, market makers or other participants that trade the particular security. There
may be times when the market price and the NAV vary significantly. This means that Shares may trade at a discount to NAV.
|
o
|
In times of market stress, market makers may step
away from their role market making in shares of ETFs and in executing trades, which can lead to differences between the market
value of the Shares and the Fund’s NAV.
|
|
o
|
The market price for the Shares may deviate from
the Fund’s NAV, particularly during times of market stress, with the result that investors may pay significantly more or
significantly less for Shares than the Fund’s NAV, which is reflected in the bid and ask price for Shares or in the closing
price.
|
|
o
|
When all or a portion of an ETFs underlying securities
trade in a market that is closed when the market for the Shares is open, there may be changes from the last quote of the closed
market and the quote from the Fund’s domestic trading day, which could lead to differences between the market value of the
Shares and the Fund’s NAV.
|
|
o
|
In stressed market conditions,
the market for the Shares may become less liquid in response to the deteriorating liquidity of the Fund’s portfolio. This
adverse effect on the liquidity of the Shares may, in turn, lead to differences between the market value of the Shares and the
Fund’s NAV.
|
Fixed Income Risk. When the Fund invests
in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically,
a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund. In general, the market price
of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than
shorter-term securities. Other risk factors include credit risk (the debtor may default), extension risk (an issuer may exercise
its right to repay principal on a fixed rate obligation held by the Fund later than expected), and prepayment risk (the debtor
may pay its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment
by the Fund, possibly causing the Fund's share price and total return to be reduced and fluctuate more than other types of investments.
Market and Geopolitical Risk. The increasing
interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region
or financial market may adversely impact issuers in a different country, region or financial market. Securities in the Fund’s
portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products
or resources, natural disasters, pandemics, epidemics, terrorism, regulatory events and governmental or quasi-governmental actions.
The occurrence of global events similar to those in recent years may result in market volatility and may have long term effects
on both the U.S. and global financial markets. The current novel coronavirus (COVID-19) global pandemic and the aggressive responses
taken by many governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged
quarantines or similar restrictions, as well as the forced or voluntary closure of, or operational changes to, many retail and
other businesses, has had negative impacts, and in many cases severe negative impacts, on markets worldwide. It
is not known how long such impacts, or any future impacts of other significant events described above, will or would last, but
there could be a prolonged period of global economic slowdown, which may impact your Fund investment.
Passive Investment Risk. The Fund is
not actively managed and the adviser will not sell shares of an equity security due to current or projected underperformance of
a security, industry or sector, unless that security is removed from the Corporate Bond Index or the selling of shares of that
security is otherwise required upon a rebalancing of the Corporate Bond Index as addressed in the Index methodology.
Sampling Risk. The Fund’s use
of a representative sampling approach, if used, could result in its holding a smaller number of securities than are in the Corporate
Bond Index. As a result, an adverse development with an issuer of securities held by the Fund could result in a greater decline
in NAV than would be the case if the Fund held all of the securities in the Corporate Bond Index. To the extent the assets in the
Fund are smaller, these risks will be greater.
Tracking Error Risk. Tracking error
is the divergence of the Fund’s performance from that of the Corporate Bond Index. Tracking error may occur because of imperfect
correlation between the Fund’s holdings of portfolio securities and those in the Corporate Bond Index, pricing differences,
the Fund’s holding of cash, differences on timing of the accrual of dividends, changes to the Index or the need to meet various
regulatory requirements. This risk may be heightened during times of increased market volatility or other unusual market conditions.
Tracking error also may result because the Fund incurs fees and expenses, while the Corporate Bond Index does not.
Performance: The bar chart and performance
table below show the variability of the Fund’s returns, which is some indication of the risks of investing in the Fund by
showing changes in the Fund’s performance from year to year and by showing the Fund’s one-year and since inception
performance compared with those of a broad measure of market performance. The bar chart shows performance of the Fund’s shares
for each calendar year since the Fund's inception. The performance table compares the performance of the Fund over time to the
performance of a broad-based securities market index. You should be aware that the Fund’s past performance (before and after
taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information will be available
at no cost by visiting Inspireinvesting.com or by calling 877.658.9473.
Performance Bar Chart For Calendar Year
Ended December 31
Best Quarter:
|
1st Quarter 2019
|
3.15%
|
Worst Quarter:
|
1st Quarter 2018
|
(1.40)%
|
The Fund’s year-to-date return as of
the most recent fiscal quarter, which ended February 29, 2020 was 2.20%.
Performance Table
Average Annual Total Returns
(For periods ended December 31, 2019)
|
One Year
|
Since
Inception
(7/10/17)
|
Return before taxes
|
8.31%
|
3.42%
|
Return after taxes on distributions
|
7.15%
|
2.46%
|
Return after taxes on distributions and sale of Fund shares
|
4.92%
|
2.20%
|
Inspire Corporate Bond Impact Equal Weight Index
|
9.85%
|
4.54%
|
Bloomberg Barclays U.S. Intermediate Credit Total Return Index
|
9.52%
|
4.22%
|
Bloomberg Barclays U.S. Aggregate Bond Total Return Index
|
8.72%
|
4.04%
|
|
*
|
In prior prospectuses, the Fund compared its performance against the Bloomberg
Barclays U.S. Aggregate Bond Total Return Index as its primary benchmark. The Adviser believes the Bloomberg Barclays U.S. Intermediate
Credit Total Return Index is a more appropriate and accurate index against which to compare the Fund’s investment strategies
and, therefore, the Bloomberg Barclays U.S. Intermediate Credit Total Return Index will replace the Bloomberg Barclays U.S. Aggregate
Bond Total Return Index as the Fund’s primary benchmark in future comparisons.
|
Investment Adviser: CWM Advisors, LLC
dba Inspire.
Portfolio Managers: Robert Netzly, CEO
of the Adviser, and Darrell Jayroe, CFA®, Portfolio Manager or the Adviser have each served the Fund as a portfolio manager
since it commenced operations in February 2017.
Purchase and Sale of Fund Shares: The
Fund will issue and redeem Shares at NAV only in large blocks of 100,000 Shares (each block of Shares is called a “Creation
Unit”). Creation Units are issued and redeemed for cash and/or in-kind for securities. Individual Shares may only be purchased
and sold in secondary market transactions through brokers. Except when aggregated in Creation Units in transactions with APs, the
Shares are not redeemable securities of the Fund.
Shares of the Fund are listed for trading on
the Exchange and trade at market prices rather than NAV. Shares of the Fund may trade at a price that is greater than, at, or less
than NAV.
Tax Information: The Fund’s distributions
generally will be taxable as ordinary income or long-term capital gains. A sale of Shares may result in capital gain or loss.
Payments to Broker-Dealers and Other Financial
Intermediaries: If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund
and its related companies may pay the intermediary for marketing activities or other services related to the sale or promotion
of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson
to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more
information.
Affinity World Leaders E... (AMEX:WLDR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Affinity World Leaders E... (AMEX:WLDR)
Historical Stock Chart
From Sep 2023 to Sep 2024