Northern Lights Fund Trust II has made a significant update to its prospectus for the Sequoia ETF, effective immediately. This change is crucial for current and potential investors as it outlines new policies regarding dividends and tax distributions.

The update was filed on October 30, 2026, and replaces specific sections of the existing prospectus and Statement of Additional Information (SAI) dated October 16, 2026. The revisions clarify how the fund will handle dividends and capital gains distributions, ensuring compliance with federal tax requirements.

Background

Northern Lights Fund Trust II is an investment firm based in Cincinnati, Ohio. It operates under the Central Index Key (CIK) 0001518042. The firm is known for its Sequoia ETF, which trades on the NYSE Arca under the ticker SEQ. This fund aims to provide investors with exposure to a diversified portfolio while adhering to regulatory requirements.

What the Filing Says

The filing states, "Ordinarily, dividends from net investment income, if any, are declared and paid annually by the Fund." It also notes that the fund may distribute net realized capital gains annually and may issue special distributions to meet federal tax obligations.

Furthermore, the update specifies that the fund intends to distribute all of its net investment income and capital gains in accordance with the timing requirements imposed by the Tax Code. This structure is designed to minimize federal income or excise taxes for the fund.

Impact

This update will primarily affect investors in the Sequoia ETF, as it provides clearer guidelines on how and when they can expect to receive dividends and capital gains distributions. The changes may also influence other investment firms in the ETF space, prompting them to review and potentially adjust their own distribution policies.

What's Next

The filing does not say what happens next.