Mutual Fund & Variable Insurance Trust NCSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05010

Mutual Fund and Variable Insurance Trust

(Exact name of registrant as specified in charter)

36 North New York Avenue

Huntington, NY 11743

(Address of principal executive offices) (Zip code)

The Corporation Trust Company

Corporate Trust Center

1209 Orange Street

Wilmington, DE 19801

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-631-629-4237

Date of fiscal year end: December 31

Date of reporting period: June 30, 2016

Item 1.

Reports to Stockholders.

Semi-Annual Shareholder Report

J U N E 3 0 , 2 0 1 6

CLASS A SHARES

CLASS C SHARES

INSTITUTIONAL SHARES

Rational Dividend Capture Fund

PORTFOLIO REVIEW (Unaudited)

June 30, 2016

The Fund’s performance figures* for each of the periods ended June 30, 2016, compared to its benchmark:

			Annualized	Annualized	Annualized
	6 Month Return	1 Year Return	5 Year Return	10 Year Return	Since Inception**
Class A	8.18%	6.19%	8.59%	5.27%	6.44%
Class A with load	3.03%	1.17%	7.53%	4.76%	6.10%
Class C	7.91%	5.65%	N/A	N/A	5.17%
Institutional Class	8.31%	6.46%	8.88%	5.53%	6.70%
S&P 500/Citigroup Value Total Return Index ^(a)	6.24%	3.36%	11.18%	5.77%	5.91%

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemptions of Fund shares. Past performance is no guarantee of future results. Performance figures for periods greater than 1 year are annualized. Per the fee table in the Fund’s May 1, 2016 prospectus, the total annual operating expense are 1.35% for Institutional shares, 1.60% for A shares and 2.10% for C shares before fee waivers. For performance information current to the most recent month-end, please call toll-free 1-800-253-0412.

Inception date is February 28, 2001 for Class A, Institutional Class and the Benchmarks, and January 2, 2014 for Class C.

(a)

The S&P 500/Citigroup Value Index, is broad, unmanaged-capitalization weighted index which is the successor to the S&P 500/BARRA Value Index, uses a multifactor methodology to score constituents, which are weighted according to market cap and classified as growth, value, or a mix of growth and value. The S&P 500/Citigroup Value Index does not include fees and expenses, and investor may not invest directly in an index.

Top 10 Holdings by Industry	% of Net Assets
Electric		10.1	%
Entertainment		8.7	%
Agriculture		8.5	%
Insurance		8.1	%
Banks		6.4	%
Telecommunications		5.7	%
Software		4.7	%
Electrical Components & Equipment		4.7	%
Retail		4.6	%
REITs		4.4	%
Other/Cash & Equivalents		34.1	%
		100.0	%

Please refer to the Portfolio of Investments for a more detailed breakdown of the Fund’s assets.

Rational Risk Managed Emerging Markets Fund

PORTFOLIO REVIEW (Unaudited)

June 30, 2016

The Fund’s performance figures* for each of the periods ended June 30, 2016, compared to its benchmark:

			Annualized	Annualized
	6 Month Return	1 Year Return	5 Year Return	Since Inception**
Class A	0.59%	-7.26%	-0.86%	1.92%
Class A with load	-4.24%	-11.66%	-1.81%	1.15%
Class C	N/A	N/A	N/A	2.58%
Institutional Class	0.59%^	-7.14%	-0.63%	2.17%
MSCI Emerging Markets Index ^(a)	6.41%	-12.05%	-3.78%	-0.03%

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemptions of Fund shares. Past performance is no guarantee of future results. Performance figures for periods greater than 1 year are annualized. Per the fee table in the Fund’s May 1, 2016 prospectus, the total annual operating expense are 2.58% for Institutional shares, 2.83% for A shares and 3.33% for C shares before fee waivers. For performance information current to the most recent month-end, please call toll-free 1-800-253-0412.

Inception date is December 30, 2009 for Class A, Institutional Class and the Benchmark, and May 31, 2016 for Class C.

Represents return based on unadjusted NAV.

(a)

The MSCI Emerging Markets Index consists of 23 countries representing 10% of world market capitalization. The Index is available for a number of regions, market segments/sizes and covers approximately 85% of the free float-adjusted market capitalization in each of the 23 countries.

Top 10 Holdings by Industry	% of Net Assets
Mining		11.8	%
Exchange Traded Funds		7.2	%
Semiconductors		6.8	%
Internet		6.2	%
Agriculture		5.8	%
Banks		4.3	%
Telecommunications		3.9	%
Retail		3.5	%
Chemicals		3.1	%
Computers		2.9	%
Other/Cash & Equivalents		44.5	%
		100.0	%

Please refer to the Portfolio of Investments for a more detailed breakdown of the Fund’s assets.

Rational Real Strategies Fund

PORTFOLIO REVIEW (Unaudited)

June 30, 2016

The Fund’s performance figures* for each of the periods ended June 30, 2016, compared to its benchmark:

			Annualized	Annualized
	6 Month Return	1 Year Return	5 Year Return	Since Inception**
Class A	1.47%	-11.21%	-6.06%	-5.00%
Class A with load	-3.33%	-15.39%	-6.98%	-5.51%
Class C	N/A	N/A	N/A	0.55%
Institutional Class	1.48%	-11.65%	-5.95%	-4.83%
S&P Goldman Sachs Commodity Index Total Return ^(a)	9.86%	-26.08%	-14.02%	-9.35%

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemptions of Fund shares. Past performance is no guarantee of future results. Performance figures for periods greater than 1 year are annualized. Per the fee table in the Fund’s May 1, 2016 prospectus, the total annual operating expense are 2.25% for Institutional shares, 2.50% for A shares and 3.00% for C shares before fee waivers. For performance information current to the most recent month-end, please call toll-free 1-800-253-0412.

Inception date is May 1, 2007 for Class A, Institutional Class and the Benchmark, and May 31, 2016 for Class C.

(a)

The S&P Goldman Sachs Commodity Index Total Return is one of the most widely recognized benchmarks that is broad-based and production weighted to represent the global commodity market beta. The Index is designed to be investable by including the most liquid commodity futures, and provides diversification with low correlations to other asset classes.

Top 10 Holdings by Industry	% of Net Assets
Real Estate Investments		14.7	%
Pharmaceuticals		7.7	%
Oil & Gas		4.5	%
Chemicals		4.3	%
Electrical Components & Equipment		4.3	%
Commercial Services		3.7	%
Retail		3.2	%
Machinery-Diversified		3.0	%
Miscellaneous Manufacturing		2.9	%
Insurance		2.8	%
Other/Cash & Equivalents		48.9	%
		100.0	%

Please refer to the Portfolio of Investments for a more detailed breakdown of the Fund’s assets.

Rational Defensive Growth Fund

PORTFOLIO REVIEW (Unaudited)

June 30, 2016

The Fund’s performance figures* for each of the periods ended June 30, 2016, compared to its benchmark:

			Annualized	Annualized	Annualized
	6 Month Return	1 Year Return	5 Year Return	10 Year Return	Since Inception**
Class A	1.55%	-8.26%	5.65%	5.42%	9.69%
Class A with load	-3.21%	-12.63%	4.63%	4.91%	9.31%
Class C	1.36%	-8.62%	N/A	N/A	-3.40%
Institutional Class	1.71%	-7.89%	5.95%	5.70%	9.98%
S&P 400 Index Total Return (a)	7.93%	1.33%	10.55%	8.55%	11.41%

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemptions of Fund shares. Past performance is no guarantee of future results. Performance figures for periods greater than 1 year are annualized. Per the fee table in the Fund’s May 1, 2016 prospectus, the total annual operating expense are 1.57% for Institutional shares, 1.82% for A shares and 2.32% for C shares before fee waivers. For performance information current to the most recent month-end, please call toll-free 1-800-253-0412.

Inception date is September 29, 2002 for Class A, Institutional Class and Benchmarks, and January 2, 2014 for Class C.

(a)

The S&P 400 is a capitalization-weighted index comprised of common stocks representing major industries in the mid-range of the U.S. stock market. The index is unmanaged and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an Index.

Top 10 Holdings by Industry	% of Net Assets
Building Materials		9.1	%
Banks		8.3	%
Electric		7.9	%
Gas		7.9	%
Commercial Services		7.8	%
Retail		5.9	%
REITs		5.5	%
Software		5.4	%
Savings & Loans		3.9	%
Healthcare-Services		3.8	%
Other/Cash & Equivalents		34.5	%
		100.0	%

Please refer to the Portfolio of Investments for a more detailed breakdown of the Fund’s assets.

Rational Strategic Allocation Fund

PORTFOLIO REVIEW (Unaudited)

June 30, 2016

The Fund’s performance figures* for each of the periods ended June 30, 2016, compared to its benchmark:

			Annualized	Annualized
	6 Month Return	1 Year Return	5 Year Return	Since Inception**
Class A	4.45%	1.34%	4.15%	6.05%
Class A with load	-0.53%	-3.46%	3.14%	5.30%
Class C	N/A	N/A	N/A	1.35%
Institutional Class	N/A	N/A	N/A	1.37%
S&P 500 Total Return Index ^(a)	3.84%	3.99%	12.10%	13.92%
60/40 Blend S&P 500 Total Return and Barclays U.S. Aggregate Bond Indices	4.52%	5.04%	8.90%	10.30%

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemptions of Fund shares. Past performance is no guarantee of future results. Performance figures for periods greater than 1 year are annualized. Per the fee table in the Fund’s May 1, 2016 prospectus, the total annual operating expense are 1.85% for Institutional shares, 2.10% for A shares and 2.60% for C shares before fee waivers. For performance information current to the most recent month-end, please call toll-free 1-800-253-0412.

Inception date is July 30, 2009 for Class A and the Benchmarks, and May 31, 2016 for Class C and Institutional Class.

(a)

The “S&P 500 Total Return Index”, a registered trademark of McGraw-Hill Co., Inc., is a market capitalization-weighted index of 500 widely held common stocks. Investors cannot invest directly in an Index.

Top Holdings	% of Net Assets
Equity Funds - Mutual Funds		31.6	%
Equity Funds - Exchange Traded Funds		26.4	%
Debt Funds		26.1	%
Asset Allocation Funds		13.3	%
Other/Cash & Equivalents		2.6	%
		100.0	%

Please refer to the Portfolio of Investments for a more detailed breakdown of the Fund’s assets.

RATIONAL DIVIDEND CAPTURE FUND

PORTFOLIO OF INVESTMENTS (Unaudited)

June 30, 2016

Shares			Value
		COMMON STOCK - 72.6%
		AEROSPACE/DEFENSE - 1.6%
	5,850	Lockheed Martin Corp.	$	1,451,794

		AGRICULTURE - 8.5%
	59,250	Altria Group, Inc.		4,085,880
	65,250	Reynolds American, Inc.		3,518,932
				7,604,812
		COMMERCIAL SERVICES - 2.2%
	46,500	KAR Auction Services, Inc.		1,940,910

		COSMETICS/PERSONAL CARE - 4.2%
	44,500	Procter & Gamble Co.		3,767,815

		ELECTRIC - 10.1%
	21,000	ALLETE, Inc.		1,357,230
	24,200	Ameren Corp.		1,296,636
	29,500	Avista Corp.		1,321,600
	15,000	Dominion Resources, Inc.		1,168,950
	22,000	Southern Co.		1,179,860
	6,250	WEC Energy Group, Inc.		408,125
	51,500	Xcel Energy, Inc.		2,306,170
				9,038,571
		ELECTRICAL COMPONENTS & EQUIPMENT - 4.7%
	81,000	Emerson Electric Co.		4,224,960

		ENTERTAINMENT - 8.7%
	65,000	Cedar Fair LP		3,758,300
	70,500	Six Flags Entertainment Corp.		4,085,475
				7,843,775
		ENVIRONMENTAL CONTROL - 2.6%
	20,500	Republic Services, Inc.		1,051,855
	20,000	Waste Management, Inc.		1,325,400
				2,377,255
		FOOD - 3.0%
	23,000	General Mills, Inc.		1,640,360
	20,250	Sysco Corp.		1,027,485
				2,667,845
		GAS - 0.6%
	14,500	New Jersey Resources Corp.		558,975

		HOME FURNISHINGS - 1.9%
	33,000	Leggett & Platt, Inc.		1,686,630

		HOUSEHOLD PRODUCTS/WARES - 3.1%
	13,500	Avery Dennison Corp.		1,009,125
	5,750	Clorox Co.		795,743
	7,400	Kimberly-Clark Corp.		1,017,352
				2,822,220
		MISCELLANEOUS MANUFACTURING - 1.1%
	5,900	3M Co.		1,033,208

		PHARMACEUTICALS - 3.9%
	8,400	Johnson & Johnson		1,018,920
	17,500	Merck & Co., Inc.		1,008,175
	38,500	Owens & Minor, Inc.		1,439,130
				3,466,225
		RETAIL - 4.6%
	23,450	McDonald’s Corp.		2,821,973
	18,500	Target Corp.		1,291,670
				4,113,643

See Notes which are an integral part of the Financial Statements.

RATIONAL DIVIDEND CAPTURE FUND

PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)

June 30, 2016

Shares			Value
		COMMON STOCK - 72.6% (Continued)
		SOFTWARE - 4.7%
	71,500	Paychex, Inc.	$	4,254,250

		TELECOMMUNICATIONS - 5.7%
	24,250	AT&T, Inc.		1,047,843
	73,500	Verizon Communications, Inc.		4,104,240
				5,152,083
		TRANSPORTATION - 1.4%
	9,500	United Parcel Service, Inc.		1,023,340

		TOTAL COMMON STOCK (Cost $56,159,656)		65,028,311

		PREFERRED STOCK - 25.7%
		BANKS - 6.4%
	80,000	U.S. Bancorp, Series F, 6.50%		2,464,000
	118,000	Wells Fargo & Co., Series J, 8.00%		3,276,860
				5,740,860
		DIVERSIFIED FINANCIAL SERVICES - 2.9%
	100,000	Raymond James Financial, Inc., 6.90%		2,640,000

		INSURANCE - 8.1%
	61,000	Aegon NV, 8.00%		1,696,410
	95,000	Allstate Corp., 5.10%		2,558,350
	113,129	Axis Capital Holdings Ltd., Series C, 6.88%		2,965,111
				7,219,871
		INVESTMENT COMPANIES - 3.9%
	135,000	KKR Financial Holdings LLC, 8.38%		3,530,250

		REITS - 4.4%
	10,000	National Retail Properties, Inc., Series D, 6.63%		262,000
	80,000	PS Business Parks, Inc., Series S, 6.45%		2,060,000
	60,000	Realty Income Corp., Series F, 6.63%		1,573,800
				3,895,800

		TOTAL PREFERRED STOCK (Cost $22,537,013)		23,026,781

		SHORT-TERM INVESTMENTS — 1.6%
	1,448,454	Federated Treasury Obligations Fund, Institutional Class, 0.24% *		1,448,454
		TOTAL SHORT-TERM INVESTMENTS (Cost $1,448,454)		1,448,454

		TOTAL INVESTMENTS (Cost $80,145,123) — 99.9% (a)	$	89,503,546
		OTHER ASSETS LESS LIABILITIES — 0.1%		63,439
		NET ASSETS — 100.0%	$	89,566,985

LP - Limited Partnership

Rate shown represents the rate at June 30, 2016 is subject to change and resets daily.

(a)

Represents cost for financial purposes. Aggregate cost for federal tax purposes is $80,486,432 and differs from value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized appreciation:	$	9,292,456
Unrealized depreciation:		(275,342	)
Net unrealized appreciation:	$	9,017,114

See Notes which are an integral part of the Financial Statements.

RATIONAL RISK MANAGED EMERGING MARKETS FUND

PORTFOLIO OF INVESTMENTS (Unaudited)

June 30, 2016

Shares			Value
		COMMON STOCK - 82.2%
		AEROSPACE/DEFENSE - 1.7%
	693	Elbit Systems Ltd.	$	63,029
	1,806	Korea Aerospace Industries Ltd.		114,771
				177,800
		AGRICULTURE - 5.8%
	3,439	British American Tobacco PLC		221,721
	32,103	ITC Limited		175,224
	1,790	KT&G Corp.		212,124
				609,069
		AIRLINES - 1.6%
	72,900	Airasia Berhad		47,015
	1,704	Korean Air Lines Co. Ltd. *		38,389
	3,763	Wizz Air Holdings PLC *		80,403
				165,807
		AUTO MANUFACTURERS - 0.8%
	3,865	Mahindra & Mahindra Limited		81,884

		AUTO PARTS & EQUIPMENT - 2.7%
	80,000	Cheng Shin Rubber Industry Co. Ltd.		167,643
	8,705	Fuyao Glass Industry Group Co. Ltd.		20,152
	518	Hankook Tire Co. Ltd.		22,935
	313	Hyundai Mobis Co. Ltd.		68,478
				279,208
		BANKS - 4.3%
	1,560	Axis Bank Ltd.		60,528
	14,044	Banco Bradesco SA		110,042
	1,100	Bancolombia SA		38,412
	36,700	CIMB Group Holdings Bhd		39,781
	6,115	Itau Unibanco Holding SA		57,604
	3,889	Sberbank of Russia PJSC		33,951
	6,900	Yes Bank Ltd.		113,179
				453,497
		CHEMICALS - 3.1%
	41,000	Formosa Chemicals & Fibre Corp.		102,948
	42,000	Formosa Plastics Corp.		101,293
	103	Lotte Chemical Corp.		25,306
	5,055	PhosAgro OJSC		74,561
	15,000	Taiwan Fertilizer Co. Ltd.		19,925
				324,033
		COMMERCIAL SERVICES - 1.9%
	1,271	KRUK SA		65,014
	26,500	Shenzhen International Holdings Ltd.		38,257
	1,597	TAL Education Group *		99,110
				202,381
		COMPUTERS - 2.9%
	9,298	Infosys Ltd.		161,288
	3,828	Tata Consultancy Services Ltd.		144,800
				306,088
		COSMETIC/PERSONAL CARE- 1.8%
	193	LG Household & Health Care Ltd.		187,161

		DIVERSIFIED FINANCIAL SERVICES - 1.9%
	35,000	Fubon Financial Holding Co. Ltd.		40,849
	91,780	Moscow Exchange MICEX-RTS PJSC		161,496
				202,345
		ELECTRIC - 0.6%
	1,111	Korea Electric Power Corp.		58,258

See Notes which are an integral part of the Financial Statements.

RATIONAL RISK MANAGED EMERGING MARKETS FUND

PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)

June 30, 2016

Shares			Value
		COMMON STOCK - 82.2% (Continued)
		ELECTRICAL COMPONENTS & EQUIPTMENT - 0.4%
	836	LG Electronics, Inc.		39,120

		ELECTRONICS - 2.4%
	13,000	AAC Technologies Holdings, Inc.	$	110,343
	27,000	Hon Hai Precision Industry Co. Ltd.		69,051
	39,975	Micro-Star International Co. Ltd.		73,236
				252,630
		ENGINEERING & CONSTRUCTION - 0.3%
	1,945	Grupo Aeroportuario del Sureste SAB de CV		30,992

		FOOD - 2.1%
	12,181	Gruma SAB de CV		175,227
	10,020	Universal Robina Corp.		44,299
				219,526
		HAND/MACHINE TOOLS - 0.9%
	23,000	Techtronic Industries Co. Ltd.		95,610

		HEALTHCARE-PRODUCTS - 0.4%
	5,000	Hengan International Group Co. Ltd.		41,698

		HOME FURNISHINGS - 2.4%
	1,867	Coway Co. Ltd.		169,381
	43,000	Haier Electronics Group Co. Ltd.		65,624
	3,354	Steinhoff International Holdings NV		19,191
				254,196
		HOUSEHOLD PRODUCTS/WARES - 1.2%
	6,722	Hindustan Unilever Ltd.		89,489
	14,100	Samsonite International SA		38,984
				128,473
		INSURANCE - 0.3%
	2,508	AvivaSA Emeklilik ve Hayat AS		16,636
	19,000	Cathay Financial Holding Co. Ltd.		20,614
				37,250
		INTERNET - 6.2%
	800	Alibaba Group Holding Ltd. *		63,624
	500	Baidu, Inc. *		82,575
	2,000	Ctrip.com International Ltd. *		82,400
	18,900	Tencent Holdings Ltd.		429,008
				657,607
		MACHINERY-DIVERSIFIED - 0.4%
	51,000	Teco Electric and Machinery Co. Ltd.		42,844

		MEDIA - 1.7%
	1,140	Naspers Ltd.		173,383

		MINING - 11.8%
	91,490	Centamin PLC		160,649
	8,772	Cia de Minas Buenaventura SAA *		104,825
	5,469	Fresnillo PLC		119,693
	4,465	Industrias Penoles SAB de CV		106,601
	11,659	Polymetal International PLC		162,506
	43,680	Sibanye Gold Ltd.		148,645
	800	Southern Copper Corp.		21,584
	19,500	Yamana Gold, Inc.		101,400
	146,500	Zhaojin Mining Industry Co. Ltd.		154,656
	468,000	Zijin Mining Group Co. Ltd.		156,239
				1,236,798

See Notes which are an integral part of the Financial Statements.

RATIONAL RISK MANAGED EMERGING MARKETS FUND

PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)

June 30, 2016

Shares			Value
		COMMON STOCK - 82.2% (Continued)
		MISCELLANEOUS MANUFACTURING - 1.0%
	29,700	Sunny Optical Technology Group Co. Ltd.		103,937

		OIL & GAS - 2.5%
	65,705	DNO ASA *	$	73,095
	2,977	Lukoil PJSC		124,230
	88	Novatek OJSC		8,976
	3,066	YPF SA		58,867
				265,168
		PHARMACEUTICALS - 1.8%
	1,445	Hikma Pharmaceuticals PLC		47,418
	3,805	Richter Gedeon Nyrt		75,562
	6,266	Sun Pharmaceuticals Industries Ltd.		70,844
				193,824
		REAL ESTATE - 0.2%
	6,110	BR Malls Participacoes SA *		24,575

		RETAIL - 3.5%
	19,000	ANTA Sports Products Ltd.		37,960
	9,220	Jollibee Foods Corp.		47,425
	14,521	Raia Drogasil SA		286,957
				372,342
		SEMICONDUCTORS - 6.8%
	337	Samsung Electronics Co. Ltd.		416,916
	59,000	Taiwan Semiconductor Manufacturing Co. Ltd.		297,204
				714,120
		SOFTWARE - 1.0%
	5,474	HCL Technologies Ltd.		59,241
	141,300	Xurpas, Inc.		50,156
				109,397
		TELECOMMUNICATIONS - 3.9%
	13,500	China Mobile Ltd.		154,261
	53,600	Telekom Malyasia Bhd		90,009
	557,900	Telekomunikasi Indonesia Persero Tbk PT		168,056
				412,326
		TEXTILES - 0.2%
	23,000	Formosa Taffeta Co. Ltd.		22,138

		TRANSPORTATION - 0.7%
	412	CJ Korea Express Corp. *		77,618

		WATER - 1.0%
	66,300	Guangdong Investment Ltd.		100,671

		TOTAL COMMON STOCK (Cost - $7,921,377)		8,653,774

		EXCHANGE TRADED FUNDS - 7.2%
	12,700	iShares MSCI Emerging Markets ETF		436,372
	9,275	Vanguard FTSE Emerging Markets ETF		326,666
		TOTAL EXCHANGE TRADED FUNDS (Cost - $745,053)		763,038

		SHORT-TERM INVESTMENTS - 5.7%
	599,116	Fidelity Institutional Money Market Portfolio, Class I, 0.24% **		599,116
		TOTAL SHORT-TERM INVESTMENTS (Cost - $599,116)		599,116

		TOTAL INVESTMENTS - 95.1% (Cost - $9,265,546) (a)	$	10,015,928
		LIABILITIES LESS OTHER ASSETS - 4.8%		516,230
		NET ASSETS - 100.0%	$	10,532,158

See Notes which are an integral part of the Financial Statements.

RATIONAL RISK MANAGED EMERGING MARKETS FUND

PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)

June 30, 2016

ETF - Exchange Traded Fund

PLC - Public Liability Company

Non-income producing security.

Rate shown represents the rate at June 30, 2016 is subject to change and resets daily.

(a)

Represents cost for financial purposes. Aggregate cost for federal tax purposes is $9,265,546 and differs from value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized appreciation:	$	859,366
Unrealized depreciation:		(108,984	)
Net unrealized appreciation:	$	750,382

As of June 30, 2016, the Fund’s Long-Term Holdings were divided among countries as follows:

Country	Percentage
Argentina		0.5	%
Brazil		4.4	%
Canada		0.9	%
China		12.7	%
Colombia		0.4	%
Great Britain		2.0	%
Hong Kong		4.2	%
Hungary		0.7	%
India		8.8	%
Indonesia		1.5	%
Israel		0.6	%
Jersey		1.5	%
Jordan		0.4	%
Malaysia		1.6	%
Mexico		4.0	%
Netherlands		0.2	%
Norway		0.7	%
Peru		1.1	%
Philippines		1.3	%
Poland		0.6	%
Russia		5.2	%
South Africa		3.0	%
South Korea		13.1	%
Switzerland		0.7	%
Taiwan		8.8	%
Turkey		0.2	%
United States		10.3	%
Total Long-Term Holdings:		89.4	%

Percentages in the above table are based on net assets, excluding short-term investments, of the Fund as of June 30, 2016.

See Notes which are an integral part of the Financial Statements.

RATIONAL RISK MANAGED EMERGING MARKETS FUND

PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)

June 30, 2016

	Foreign Currency Units to									Unrealized Appreciation/
Settlement Date	Receive/Deliver			Counterparty	In Exchange For			US Dollar Value		(Depreciation)
To Sell:
7/18/2016		2,113,800	BRL	BNY Mellon	$	600,000	USD	$	654,241	$	(54,241	)
7/18/2016		12,324,000	ZAR	BNY Mellon		800,000	USD		833,638	$	(33,638	)
7/18/2016		2,596,220,000	KRW	BNY Mellon		2,200,000	USD		2,253,548	$	(53,548	)
9/21/2016		8,401,966	JPY	BNY Mellon		1,271,863	USD		1,260,923	$	10,940
Total Sells:										$	(130,487	)

See Notes which are an integral part of the Financial Statements.

RATIONAL REAL STRATEGIES FUND

PORTFOLIO OF INVESTMENTS (Unaudited)

June 30, 2016

Shares			Value
		COMMON STOCK - 54.2%
		AUTO PARTS & EQUIPMENT - 0.0%
	50	American Axle & Manufacturing Holdings, Inc.	$	724

		CHEMICALS - 4.3%
	5,725	Aceto Corp. +		125,320
	8,500	American Vanguard Corp. +		128,435
	9,300	Huntsman Corp.		125,085
				378,840
		COMMERCIAL SERVICES - 3.7%
	2,850	INC Research Holdings, Inc. * +		108,670
	7,000	Kforce, Inc. +		118,230
	5,125	TrueBlue, Inc. * +		96,965
				323,865
		COMPUTERS - 1.3%
	9,550	Silver Spring Networks, Inc. * +		116,032

		COSMETIC/PERSONAL CARE - 1.2%
	27,500	Avon Products, Inc. +		103,950

		DISTRIBUTION/WHOLESALE - 1.4%
	3,350	Veritiv Corp. * +		125,893

		DIVERSIFIED FINANCIAL SERVICES - 2.8%
	6,700	Investment Technology Group, Inc. +		112,024
	11,500	Wisdom Tree Investments, Inc. +		112,585
				224,609
		ELECTRICAL COMPONENT & EQUIPMENT - 4.3%
	10,200	General Cable Corp. +		129,642
	4,350	Insteel Industries, Inc. +		124,367
	8,250	SPX Corp.		122,512
				376,521
		ENGINEERING & CONSTRUCTION - 1.5%
	50	Dycom Industries, Inc. *		4,488
	5,350	Mistras Group, Inc. *		127,705
				132,193
		HEALTHCARE-PRODUCTS - 1.4%
	10,250	Invacare Corp. +		124,333

		HEALTHCARE-SERVICES - 2.6%
	10,300	Kindred Healthcare, Inc. +		116,287
	10,500	Select Medical Holdings Corp. *		114,135
				230,422
		INSURANCE - 2.8%
	25	American Equity Investment Life Holding Co.		356
	49,000	Genworth Financial, Inc. * +		126,420
	16,625	MBIA, Inc. * +		113,549
				240,325
		IRON/STEEL - 1.3%
	6,625	Schnitzer Steel Industries, Inc. +		116,600

See Notes which are an integral part of the Financial Statements.

RATIONAL REAL STRATEGIES FUND

PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)

June 30, 2016

Shares			Value
		COMMON STOCK - 54.2% (Continued)
		LODGING - 0.0%
	50	Diamond Resorts International, Inc. *	$	1,498

		MACHINERY-DIVERSIFIED - 3.0%
	6,800	Hollysys Automation Technologies Ltd. * +		118,116
	27,000	Manitowoc Co., Inc. +		147,150
				265,266
		MISCELLANEOUS MANUFACTURING - 2.9%
	3,100	American Railcar Industries, Inc. +		122,357
	7,250	Trinity Industries, Inc. +		134,633
				256,990
		OIL & GAS - 4.5%
	11,675	Noble Corp. PLC +		96,202
	8,100	Rowan Cos. PLC +		143,046
	13,000	Transocean Ltd. +		154,570
				393,818
		PHARMACEUTICALS - 7.7%
	3,900	Impax Laboratories, Inc. * +		112,398
	2,250	Mallinckrodt PLC * +		136,755
	4,000	Natural Health Trends Corp. +		112,760
	10,750	SciClone Pharmaceuticals, Inc. * +		140,395
	8,400	Supernus Pharmaceuticals, Inc. * +		171,108
				673,416
		REITS - 1.7%
	32,750	Newcastle Investment Corp.		150,322

		RETAIL - 3.2%
	11,100	Barnes & Noble, Inc. +		125,985
	7,700	Tile Shop Holdings, Inc. *		153,076
				279,061
		SEMICONDUCTORS - 1.0%
	1,600	Synaptics, Inc. * +		86,000

		SOFTWARE - 1.6%
	2,900	Ebix, Inc. +		138,910

		TELECOMMUNICATIONS - 0.0%
	25	Ciena Corp. *		469

		TOTAL COMMON STOCK (Cost - $5,308,865)		4,740,057

		REAL ESTATE INVESTMENTS - 14.7%
		Grocery & Pharmacy Portfolio DST (a)(b)(c)		823,108
		New York Power DST (a)(b)(c)		467,769
		TOTAL REAL ESTATE INVESTMENTS (Cost - $1,529,383)		1,290,877

		SHORT-TERM INVESTMENTS - 31.7%
	2,769,800	Fidelity Investments Money Market Prime Money Market Portfolio, Institutional Class, 0.24% **		2,769,800
		TOTAL SHORT-TERM INVESTMENTS (Cost - $2,769,800)		2,769,800

		TOTAL INVESTMENTS - 100.6% (Cost - $9,608,048) (d)	$	8,800,734
		LIABILITIES LESS OTHER ASSETS - (0.6)%		(56,676	)
		NET ASSETS - 100.0%	$	8,744,058

See Notes which are an integral part of the Financial Statements.

RATIONAL REAL STRATEGIES FUND

PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)

June 30, 2016

Contracts ^			Expiration Date - Exercise Price	Value
		CALL OPTIONS WRITTEN - (0.9)% *
	57	Aceto Corp.	07/15/2016 - $22.50	$	1,853
	31	American Railcar Industries, Inc.	07/15/2016 - $40.00		2,635
	85	American Vanguard Corp.	07/15/2016 - $15.00		4,250
	275	Avon Products, Inc.	07/15/2016 - $4.50		1,375
	111	Barnes & Noble, Inc.	07/15/2016 - $12.00		832
	29	Ebix, Inc.	07/15/2016 - $49.00		1,885
	102	General Cable Corp.	07/15/2016 - $14.00		1,020
	490	Genworth Financial, Inc.	07/15/2016 - $3.50		1,225
	68	Hollysys Automation Technologies, Ltd.	07/15/2016 - $17.50		2,720
	93	Huntsman Corp.	07/15/2016 - $16.00		465
	39	Impax Laboratories, Inc.	07/15/2016 - $35.00		390
	28	INC Research Holdings, Inc.	07/15/2016 - $40.00		700
	43	Insteel Industries, Inc.	07/15/2016 - $29.00		2,473
	102	Invacare Corp.	07/15/2016 - $12.50		3,060
	67	Investment Technology Group, Inc.	07/15/2016 - $17.50		1,842
	70	Kforce, Inc.	07/15/2016 - $17.50		1,050
	103	Kindred Healthcare, Inc.	07/15/2016 - $12.50		1,545
	22	Mallinckrodt PLC	07/15/2016 - $60.00		5,720
	270	Manitowoc Co., Inc.	07/15/2016 - $6.00		2,025
	166	MBIA, Inc.	07/15/2016 - $7.00		3,735
	40	Natural Health Trends Corp.	07/15/2016 - $30.00		3,200
	116	Noble Corp. PLC	07/15/2016 - $9.50		580
	81	Rowan Cos. PLC	07/15/2016 - $19.00		1,377
	66	Schnitzer Steel Industries, Inc.	07/15/2016 - $18.00		3,300
	107	SciClone Pharmaceuticals, Inc.	07/15/2016 - $15.00		535
	95	Silver Spring Networks, Inc.	07/15/2016 - $12.50		2,375
	82	SPX Corp.	07/15/2016 - $17.50		2,050
	84	Supernus Pharmaceuticals, Inc.	07/15/2016 - $19.00		11,550
	16	Synaptics, Inc.	07/15/2016 - $55.50		2,480
	130	Transocean Ltd.	07/15/2016 - $11.50		9,750
	72	Trinity Industries, Inc.	07/15/2016 - $19.00		900
	51	TrueBlue, Inc.	07/15/2016 - $20.00		637
	33	Veritiv Corp.	07/15/2016 - $40.00		1,733
	115	WisdomTree Investments, Inc.	07/15/2016 - $11.00		1,725
		TOTAL CALL OPTIONS WRITTEN (Premiums Received - $136,300) (d)		$	82,992

Non-income producing security.

All or a portion of this security is segregated as collateral for and is subject to call options written.

Rate shown represents the rate at June 30, 2016, is subject to change and resets daily.

DST - Delaware Statutory Trust

PLC - Public Liability Company.

One contract is equivalent to 100 shares of the underlying common stock.

(a)

Illiquid security.

(b)

Investments do not offer shares. Fair value represents direct ownership of Real Estate.

(c)

Security is currently being valued by the Pricing Committee according to the Fair Value procedures approved by the Board of Trustees.

(d)

Represents cost for financial purposes. Aggregate cost for federal tax purposes, including call options written, is $9,254,731 and differs from value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized appreciation:	$	148,193
Unrealized depreciation:		(685,182	)
Net unrealized depreciation:	$	(536,989	)

See Notes which are an integral part of the Financial Statements.

RATIONAL DEFENSIVE GROWTH FUND

PORTFOLIO OF INVESTMENTS (Unaudited)

June 30, 2016

Shares			Value
		COMMON STOCK - 97.6%
		AIRLINES - 2.5%
	14,300	Hawaiian Holdings, Inc. *	$	542,828

		APPAREL - 2.4%
	4,850	Carter’s, Inc.		516,380

		BANKS - 8.3%
	2,525	Cathay General Bancorp		71,205
	4,800	Chemical Financial Corp.		178,992
	1,750	Commerce Bancshares, Inc.		83,825
	4,175	Community Bank System, Inc.		171,551
	4,400	Community Trust Bancorp, Inc.		152,504
	7,825	First Busey Corp.		167,377
	5,100	MB Financial, Inc.		185,028
	6,025	NBT Bancorp, Inc.		172,496
	6,250	Republic Bancorp, Inc.		172,688
	3,000	Southside Bancshares, Inc.		92,760
	2,825	Tompkins Financial Corp.		183,625
	5,875	TriCo Bancshares		162,150
				1,794,201
		BEVERAGES - 2.1%
	7,250	National Beverage Corp.*		455,372

		BUILDING MATERIALS - 9.1%
	22,000	AAON, Inc.		605,220
	1,750	Owens Corning		90,160
	6,850	Universal Forest Products, Inc.		634,926
	5,357	Vulcan Materials Co.		644,769
				1,975,075
		COMMERCIAL SERVICES - 7.8%
	10,425	CorVel Corp. *		450,151
	15,250	ABM Industries, Inc.		556,320
	15,900	Forrester Research, Inc.		586,074
	875	Gartner, Inc. *		85,234
				1,677,779
		DISTRIBUTION/WHOLESALE - 3.0%
	5,900	Pool Corp.		554,770
	650	Watsco, Inc.		91,449
				646,219
		ELECTRIC - 7.9%
	12,800	Avista Corp.		573,440
	15,750	Hawaiian Electric Industries, Inc.		516,443
	3,500	MDU Resources Group, Inc.		84,000
	9,525	MGE Energy, Inc.		538,305
				1,712,188
		ELECTRONICS - 2.1%
	14,500	FLIR Systems, Inc.		448,775

		ENGINEERING & CONSTRUCTION - 2.5%
	9,100	Exponent, Inc.		531,531

		FOOD - 3.1%
	750	Lancaster Colony Corp.		95,707
	14,935	Tootsie Roll Industries, Inc.		575,446
				671,153
		GAS - 7.9%
	13,100	New Jersey Resources Corp.		505,005
	8,900	Northwest Natural Gas Co.		576,898
	13,700	UGI Corp.		619,925
				1,701,828

See Notes which are an integral part of the Financial Statements.

RATIONAL DEFENSIVE GROWTH FUND

PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)

June 30, 2016

Shares				Value
			COMMON STOCK - 97.6% (Continued)
			HEALTHCARE-PRODUCTS - 2.5%
	7,750		Cantel Medical Corp.	$	532,658

			HEALTHCARE-SERVICES - 3.8%
	6,800		Quest Diagnostics, Inc.		553,588
	4,450		US Physical Therapy, Inc.		267,935
					821,523
			HOME BUILDERS - 0.8%
	100		NVR, Inc. *		178,034

			INSURANCE - 1.9%
	1,900		Hanover Insurance Group, Inc.		160,778
	2,425		RLI Corp.		166,791
	1,500		WR Berkley Corp.		89,880
					417,449
			MISCELLANEOUS MANUFACTURING - 0.8%
	1,000		AO Smith Corp.		88,110
	1,500		CLARCOR, Inc.		91,245
					179,355
			PHARMACEUTICALS - 2.3%
	13,300		Owens & Minor, Inc.		497,154

			REITS - 5.5%
	1,000		Equity LifeStyle Properties, Inc.		80,050
	5,100		Healthcare Realty Trust, Inc.		178,449
	1,625	��	Mid-America Apartment Communities, Inc.		172,900
	14,850		Monmouth Real Estate Investment Corp.		196,911
	2,500		National Health Investors, Inc.		187,725
	8,350		Retail Opportunity Investments Corp.		180,945
	4,600		Tanger Factory Outlet Centers, Inc.		184,828
					1,181,808
			RETAIL - 5.9%
	1,750		Big Lots, Inc.		87,693
	11,925		Cato Corp.		449,811
	1,200		Children’s Place, Inc,.		96,216
	7,300		Darden Restaurants, Inc.		462,382
	2,500		Hibett Sports, Inc. *		86,975
	1,375		Papa John’s International, Inc.		93,500
					1,276,577
			SAVINGS & LOANS - 3.9%
	5,650		Berkshire Hills Bancorp, Inc.		152,098
	14,000		Brookline Bancorp, Inc.		154,420
	6,500		Capitol Federal Financial, Inc.		90,675
	12,900		Investors Bancorp, Inc.		142,935
	10,200		People’s United Financial, Inc.		149,531
	8,000		Provident Financial Services, Inc.		157,120
					846,779
			SOFTWARE - 5.4%
	12,800		CSG Systems International, Inc.		515,968
	13,400		Ebix, Inc.		641,860
					1,157,828

See Notes which are an integral part of the Financial Statements.

RATIONAL DEFENSIVE GROWTH FUND

PORTFOLIO OF INVESTMENTS (Unaudited) (Continued)

June 30, 2016

Shares			Value
		COMMON STOCK - 97.6% (Continued)
		TOYS/GAMES/HOBBIES - 2.4%
	6,150	Hasbro, Inc.	$	516,539

		TRANSPORTATION - 3.7%
	1,250	CH Robinson Worldwide, Inc.		92,813
	1,100	JB Hunt Transport Services, Inc.		89,023
	1,250	Landstar System, Inc.		85,825
	26,500	Marten Transport Ltd.		524,700
				792,361

		TOTAL COMMON STOCK (Cost $17,414,887)		21,071,394

		SHORT-TERM INVESTMENTS — 1.9%
	495,691	Federated Treasury Obligations Fund, Institutional Class, 0.24% **		495,691
		TOTAL SHORT-TERM INVESTMENTS (Cost $495,691)		495,691

		TOTAL INVESTMENTS (Cost $17,910,578) — 99.9% (a)		21,567,085
		OTHER ASSETS LESS LIABILITIES — (0.1)%		32,131
		NET ASSETS — 100.0%	$	21,599,216

Non-income producing security.

Rate shown represents the rate at June 30, 2016 is subject to change and resets daily.

(a)

Represents cost for financial purposes. Aggregate cost for federal tax purposes is $17,967,158 and differs from value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized appreciation:	$	3,662,649
Unrealized depreciation:		(62,721	)
Net unrealized appreciation:	$	3,599,928

See Notes which are an integral part of the Financial Statements.

RATIONAL STRATEGIC ALLOCATION FUND

PORTFOLIO OF INVESTMENTS (Unaudited)

June 30, 2016

Shares			Value
		MUTUAL FUNDS - 71.0%
		ASSET ALLOCATION FUNDS - 13.3%
	308,846	Rational Risk Managed Emerging Markets Fund +	$	2,100,151

		DEBT FUNDS - 26.1%
	153,869	Catalyst/Stone Beach Income Opportunity Fund +		1,514,072
	82,649	Federated Mortgage Fund		810,788
	77,455	Federated Short-Intermediate Total Return Bond Fund		807,078
	89,107	Federated Total Return Government Bond Fund		1,003,343
				4,135,281
		EQUITY FUND - 31.6%
	66,979	Catalyst Dynamic Alpha Fund +		1,112,525
	130,030	Catalyst MLP & Infrastructure Fund +		821,788
	250,472	Rational Defensive Growth Fund +		1,194,753
	209,500	Rational Dividend Capture Fund +		1,881,309
				5,010,375

		TOTAL MUTUAL FUNDS (Cost - $11,115,013)		11,245,807

		EXCHANGE TRADED FUNDS - 26.4%
		EQUITY FUND - 26.4%
	58,183	Ecological Strategy ETF +		2,042,223
	56,069	US Equity Rotation Strategy ETF +		2,139,593
		TOTAL EXCHANGE TRADED FUNDS (Cost - $3,200,801)		4,181,816

		SHORT-TERM INVESTMENTS - 2.6%
	409,869	Fidelity Institutional Money Market Government Portfolio, Class I, 0.24% *		409,869
		TOTAL SHORT-TERM INVESTMENTS (Cost - $409,869)		409,869

		TOTAL INVESTMENTS - 100.0% (Cost - $14,725,684) (a)	$	15,837,492
		LIABILITIES LESS OTHER ASSETS - (0.0%)		(3,980	)
		NET ASSETS - 100.0%	$	15,833,512

Investment in affiliate

Rate shown represents the rate at June 30, 2016, is subject to change and resets daily.

(a)

Represents cost for financial purposes. Aggregate cost for tax purposes is $15,367,182 and differs from value by net unrealized appreciation (depreciation of securities as follows:

Unrealized appreciation:	$	1,791,052
Unrealized depreciation:		(1,320,742	)
Net unrealized appreciation:	$	470,310

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Statements of Assets and Liabilities (Unaudited)

June 30, 2016

	Rational			Rational Risk			Rational			Rational		Rational
	Divided Capture			Managed Emerging			Real Strategies			Defensive Growth		Strategic Allocation
	Fund			Markets Fund			Fund			Fund		Fund

ASSETS:
Investments in Unaffiliated securities, at cost	$	80,145,123		$	9,265,546		$	9,608,048		$	17,910,578	$	3,002,053
Investments in Affiliated securities, at cost		—			—			—			—		11,723,631
Total Securities at Cost		80,145,123			9,265,546			9,608,048			17,910,578		14,725,684
Investments in Unaffiliated securities, at value	$	89,503,546		$	10,015,928		$	8,800,734		$	21,567,085	$	3,031,078
Investments in Affiliated securities, at value		—			—			—			—		12,806,414
Total Securities at Value	$	89,503,546		$	10,015,928		$	8,800,734		$	21,567,085	$	15,837,492
Receivable for securities sold		—			652,772			—			—		—
Receivable for Fund shares sold		28,413			10,286			—			3,035		654
Dividends and interest receivable		237,334			23,880			1,219			19,313		16,662
Foreign Cash ($114,177)		—			114,437			—			—		—
Cash		—			—			—			26		—
Appreciation on Foreign currency contract		—			10,940			—			—		—
Due from Advisor		—			9,103			37,383			18,164		28,101
Tax reclaims receivable		—			475,008			—			39,908		—
Prepaid expenses and other assets		33,877			19,413			20,584			34,090		8,722
Total Assets		89,803,170			11,331,767			8,859,920			21,681,621		15,891,631

LIABILITIES:
Options written (premiums received $0, $0, $136,300, $0, $0)		—			—			82,992			—		—
Management fees payable		25,796			—			—			—		—
Trustee fees payable		1,508			1,540			1,743			1,489		1,531
Payable for securities purchased		—			601,338			—			—		—
Payable for Fund shares redeemed		37,563			10,105			2,094			14,483		25,731
Depreciation on Foreign Currency Contract		—			141,427			—			—		—
Fees payable to affiliate		10,814			2,169			2,096			3,882		2,445
Shareholder services payable		54,588			6,107			5,052			16,357		—
Accrued 12b-1 fees		18,469			1,876			410			7,949		6,570
Accrued expenses and other liabilities		87,447			35,047			21,475			38,245		21,842
Total Liabilities		236,185			799,609			115,862			82,405		58,119

Net Assets	$	89,566,985		$	10,532,158		$	8,744,058		$	21,599,216	$	15,833,512

NET ASSETS CONSIST OF:
Paid in capital	$	86,147,467		$	9,638,096		$	25,430,489		$	13,415,818	$	15,280,975
Undistributed net investment income (loss)		176,083			(8,763	)		368,432			139,422		19,883
Accumulated net realized gain (loss) on investments, and options written		(6,114,988	)		334,458			(16,300,857	)		4,393,556		(579,154	)
Net unrealized appreciation (depreciation) on investments, and options written		9,358,423			568,367			(754,006	)		3,650,420		1,111,808
Net Assets	$	89,566,985		$	10,532,158		$	8,744,058		$	21,599,216	$	15,833,512

Institutional Shares
Net Assets	$	51,610,145		$	6,201,486		$	7,811,157		$	3,955,773	$	100,389
Shares of beneficial interest outstanding (a)		5,746,296			910,612			1,427,039			828,765		9,936
Net asset value per share	$	8.98		$	6.81		$	5.47		$	4.77	$	10.10

Class A shares
Net Assets	$	36,011,360		$	4,329,645		$	931,896		$	17,120,318	$	15,732,110
Shares of beneficial interest outstanding (a)		4,013,073			639,096			169,046			4,362,981		1,556,110
Net asset value and redemption price per share	$	8.97		$	6.77		$	5.51		$	3.92	$	10.11
Maximum offering price per share (b)	$	9.42		$	7.11		$	5.79		$	4.12	$	10.61

Class C shares
Net Assets	$	1,945,480		$	1,027		$	1,005		$	523,125	$	1,013
Shares of beneficial interest outstanding (a)		217,258			152			182			139,937		100
Net asset value, offering price and redemption price per share (c)	$	8.95		$	6.77	(d)	$	5.52		$	3.74	$	10.11	(d)

(a)

Unlimited number of shares of no par value beneficial interest authorized.

(b)

There is a maximum front-end sales charge (load) of 4.75% imposed on purchases of Class A shares for each Fund.

(c)

A contingent deferred sales charge (“CDSC”) of 1.00% may be charged on shares held less than 12 months.

(d)

Does not compute due to rounding of shares.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Statements of Operations (Unaudited)

For the Six Months Ended June 30, 2016

	Rational			Rational Risk			Rational			Rational			Rational
	Divided Capture			Managed Emerging			Real Strategies			Defensive Growth			Strategic Allocation
	Fund			Markets Fund			Fund			Fund			Fund
Investment Income:
Dividend income	$	1,937,234		$	98,524		$	98,730		$	274,001		$	47,621
Interest income		804			416			760			203			308
Dividend income - affiliated companies		—			—			—			—			73,277
Securities lending - net		1,384			299			173			8,171			—
Foreign tax withheld		(8,637	)		(43,018	)		(1,751	)		27,215			—
Total Investment Income		1,930,785			56,221			97,912			309,590			121,206

Operating Expenses:
Investment management fees		333,812			47,296			30,681			106,994			7,958
12b-1 Fees - Class A Shares		45,265			5,370			1,161			22,244			19,874
12b-1 Fees - Class C Shares		7,641			—			—			2,268			—
Shareholder Services - Institutional Shares		63,458			6,454			9,066			12,665			—
Shareholder Services - Class A Shares		45,265			5,370			828			22,244			—
Shareholder Services - Class C Shares		2,547			—			—			756			—
Administration fees		75,836			10,479			7,416			27,115			15,214
MFund Services fees		37,757			6,842			5,497			14,080			8,963
Registration fees		21,711			14,918			15,047			19,674			3,985
Audit fees		7,543			3,167			7,268			3,593			6,034
Custody fees		3,209			22,166			1,918			2,126			2,023
Printing expense		16,539			3,427			3,149			10,042			4,898
Trustees’ fees		3,037			3,247			5,444			3,117			3,241
Legal fees		54,002			10,386			9,103			19,803			9,882
Insurance expense		12,943			3,579			3,296			6,019			4,189
Interest expense		4,418			371			443			1,437			657
Miscellaneous expense		3,263			2,301			4,595			3,907			2,811
Total Operating Expenses		738,246			145,373			104,912			278,084			89,729
Less: Expenses waived/reimbursed by Manager		(236,141	)		(80,389	)		(62,445	)		(107,916	)		(34,733	)
Net Operating Expenses		502,105			64,984			42,467			170,168			54,996

Net Investment Income (Loss)		1,428,680			(8,763	)		55,445			139,422			66,210

Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from:
Investments		(8,099,396	)		906,439			(80,008	)		158,543			(77,451	)
Affiliated companies		—			—			—			—			(1,257,866	)
Options written		—			—			296,885			—			—
Foreign currency transactions		—			(302,819	)		—			2,814			—
Net realized gain (loss)		(8,099,396	)		603,620			216,877			161,357			(1,335,317	)

Net change in unrealized appreciation (depreciation) on:
Investments		13,348,682			(435,571	)		(56,076	)		(439,273	)		(1,245,640	)
Affiliated companies		—			—			—			—			3,181,071
Options written		—			—			53,308			—			—
Foreign currency translation		—			(105,276	)		—			(2,414	)		—
Net change in unrealized appreciation (depreciation)		13,348,682			(540,847	)		(2,768	)		(441,687	)		1,935,431

Net Realized and Unrealized Gain (Loss) on Investments		5,249,286			62,773			214,109			(280,330	)		600,114

Net Increase (Decrease) in Net Assets Resulting From Operations	$	6,677,966		$	54,010		$	269,554		$	(140,908	)	$	666,324

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Statements of Changes in Net Assets

	Rational Dividend Capture Fund						Rational Risk Managed Emerging Markets Fund						Rational Real Strategies Fund

	Six Months Ended			Year Ended			Six Months Ended			Year Ended			Six Months Ended			Year Ended
	June 30, 2016			December 31, 2015			June 30, 2016			December 31, 2015			June 30, 2016			December 31, 2015
		(Unaudited)						(Unaudited)						(Unaudited)
Operations:
Net investment income (loss)	$	1,428,680		$	5,351,294		$	(8,763	)	$	43,928		$	55,445		$	442,681
Net realized gain (loss) on investments		(8,099,396	)		8,987,193			603,620			4,698,152			216,877			(2,422,253	)
Net change in unrealized appreciation (depreciation) on investments		13,348,682			(19,598,188	)		(540,847	)		(4,186,717	)		(2,768	)		(270,985	)
Net increase (decrease) in net assets resulting from operations		6,677,966			(5,259,701	)		54,010			555,363			269,554			(2,250,557	)

Distributions to Shareholders from:
Net investment income
Institutional Class		(718,370	)		(3,572,228	)		—			(221,355	)		—			(294,587	)
Class A		(472,276	)		(1,793,365	)		—			(148,228	)		—			(43,812	)
Class C		(21,007	)		(96,312	)		—			—			—			—
Net realized gains
Institutional Class		—			(6,390,065	)		—			(1,445,789	)		—			—
Class A		—			(4,069,559	)		—			(1,058,208	)		—			—
Class C		—			(242,641	)		—			—			—			—
Total distributions to shareholders		(1,211,653	)		(16,164,170	)		—			(2,873,580	)		—			(338,399	)

Share Transactions of Beneficial Interest:
Net proceeds from shares sold
Institutional Class		3,008,497			7,754,112			2,239,423			2,940,494			3,283,376			10,628,392
Class A		745,759			4,554,863			743,416			3,611,499			83,773			513,202
Class C		167,406			255,610			1,000			—			1,000			—
Reinvestment of distributions
Institutional Class		445,262			4,469,092			—			1,085,331			—			231,235
Class A		405,039			5,123,016			—			1,126,444			—			39,488
Class C		16,154			265,727			—			—			—			—
Cost of shares redeemed
Institutional Class		(12,661,438	)		(73,426,985	)		(1,363,961	)		(17,915,875	)		(1,766,750	)		(32,049,885	)
Class A		(7,023,966	)		(28,792,432	)		(1,125,346	)		(5,898,316	)		(138,352	)		(942,099	)
Class C		(698,749	)		(1,858,331	)		—			—			—			—
Capital Contribution (Note 3)
Institutional Class		—			—			—			—			—			60,989
Class A		—			—			—			—			—			9,899
Net increase (decrease) in net assets from share transactions of beneficial interest		(15,596,036	)		(81,655,328	)		494,532			(15,050,423	)		1,463,047			(21,508,779	)

Total Increase (Decrease) in Net Assets		(10,129,723	)		(103,079,199	)		548,542			(17,368,640	)		1,732,601			(24,097,735	)

Net Assets:
Beginning of year/period		99,696,708			202,775,907			9,983,616			27,352,256			7,011,457			31,109,192
End of period*	$	89,566,985		$	99,696,708		$	10,532,158		$	9,983,616		$	8,744,058		$	7,011,457
Includes undistributed net investment income (loss) at end of year/period of:	$	176,083		$	(40,944	)	$	(8,763	)	$	—		$	368,432		$	312,987

Share Activity:
Institutional Class
Shares Sold		168,795			793,366			176,982			335,566			639,346			1,631,536
Shares Reinvested		23,306			510,061			—			164,444			—			—
Shares Redeemed		(310,162	)		(7,631,172	)		(33,065	)		(1,882,710	)		(332,266	)		42,980
Net increase (decrease) in shares of																	-4933477
Beneficial interest		(118,061	)		(6,327,745	)		143,917			(1,382,700	)		307,080			(3,258,961	)

Class A
Shares Sold		36,420			462,199			13,804			411,292			14,526			77,273
Shares Reinvested		20,224			583,317			—			171,453			—			7,286
Shares Redeemed		(282,534	)		(2,969,332	)		(25,572	)		(638,798	)		(25,882	)		(150,168	)
Net increase (decrease) in shares of Beneficial interest		(225,891	)		(1,923,816	)		(11,768	)		(56,053	)		(11,356	)		(65,609	)

Class C
Shares Sold		18,358			793,366			152			335,566			182			1,631,536
Shares Reinvested		736			510,061			—			164,444			—			—
Shares Redeemed		(36,619	)		(7,631,172	)		—			(1,882,710	)		—			42,980
Net increase (decrease) in shares of Beneficial interest		(17,525	)		(6,327,745	)		152			(1,382,700	)		182			1,674,516

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Statements of Changes in Net Assets (Continued)

	Rational Defensive Growth Fund						Rational Strategic Allocation Fund

	Six Months Ended			Year Ended			Six Months Ended			Year Ended
	June 30, 2016			December 31, 2015			June 30, 2016			December 31, 2015
	(Unaudited)						(Unaudited)
Operations:
Net investment income (loss)	$	139,422		$	502,183		$	66,210		$	213,479
Long-term capital gain dividends from investment companies					26,422						2,146,121
Net realized gain (loss) on investments		161,357			77,614,710			(1,335,317	)		(931,840	)
Net change in unrealized appreciation (depreciation) on investments		(441,687	)		(81,881,649	)		1,935,431			(1,745,386	)
Net increase (decrease) in net assets resulting from operations		(140,908	)		(3,738,334	)		666,324			(317,626	)

Distributions to Shareholders:
Net investment income
Institutional Class		—			(244,761	)		(258	)		—
Class A		—			(368,959	)		(166,045	)		(186,964	)
Class C		—			(8,323	)		(1	)		—
Net realized gains
Institutional Class		—			(22,491,969	)		—			—
Class A		—			(21,407,056	)		—			(1,944,437	)
Class C		—			(841,929	)		—			—

Total distributions to shareholders		—			(45,362,997	)		(166,304	)		(2,131,401	)

Share Transactions of Beneficial Interest:
Net proceeds from shares sold
Institutional Class		259,701			5,437,095			99,000			—
Class A		255,593			2,094,914			338,643			1,430,438
Class C		11,654			62,887			1,000			—
Reinvestment of distributions
Institutional Class		—			11,979,899			258			—
Class A		—			20,819,069			159,291			2,023,696
Class C		—			830,989			1			—
Cost of shares redeemed
Institutional Class		(9,551,300	)		(132,632,327	)		—			—
Class A		(4,151,710	)		(22,581,388	)		(2,325,501	)		(4,952,530	)
Class C		(250,009	)		(724,671	)		—			—
Net increase (decrease) in net assets from share transactions of beneficial interest		(13,426,071	)		(114,713,533	)		(1,727,308	)		(1,498,396	)

Total Increase (Decrease) in Net Assets		(13,566,979	)		(163,814,864	)		(1,227,288	)		(3,947,423	)

Net Assets:
Beginning of year/period		35,166,195			198,981,059			17,060,800			21,008,223
End of period*	$	21,599,216		$	35,166,195		$	15,833,512		$	17,060,800
Includes undistributed net investment income (loss) at end of year/period of:	$	139,422		$	—		$	19,883		$	119,977

Share Activity:
Institutional Class
Shares Sold		57,543			302,656			9,910			125,398
Shares Reinvested		—			2,366,203			26			205,237
Shares Redeemed		(1,386,951	)		(1,962,664	)		—			(436,219	)
Net increase (decrease) in shares of Beneficial interest		(1,329,408	)		706,195			9,936			(105,584	)

Class A
Shares Sold		17,827			157,162			33,969			125,398
Shares Reinvested		—			4,987,319			2,995			205,237
Shares Contributed		—			—			—			—
Shares Redeemed		(329,970	)		(1,962,664	)		(234,146	)		(436,219	)
Net increase in shares of Beneficial interest		(312,143	)		3,181,817			(197,182	)		(105,584	)

Class C
Shares Sold		3,039			3,281			100			—
Shares Reinvested		—			209,461			—	*		—
Shares Contributed		—			—			—			—
Shares Redeemed		(34,010	)		(83,369	)		—			—
Net decrease in shares of Beneficial interest		(30,971	)		129,373			100			—

Amount represents less than 0.500 share

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Rational Dividend Capture Fund

Financial Highlights

For a Share Outstanding Throughout Each Period

	Institutional Class
				For the			For the			For the			For the			For the
	For the			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Six Months Ended			December 31,			December 31,			December 31,			December 31,			December 31,
	June 30, 2016			2015			2014			2013			2012			2011
	(Unaudited)
Net asset value, beginning of year	$	8.41		$	10.01		$	10.74		$	9.49		$	8.91		$	8.69

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.14	(A)		0.36			0.39			0.36			0.33			0.30
Net realized and unrealized gain (loss) on investments		0.55			(0.67	)		0.64			1.60			0.63			0.22
Total from investment operations		0.69			(0.31	)		1.03			1.96			0.96			0.52

LESS DISTRIBUTIONS:
From net investment income		(0.12	)		(0.35	)		(0.41	)		(0.32	)		(0.38	)		(0.30	)
From net realized gains on investments		—			(0.94	)		(1.35	)		(0.39	)		—			—
Total distributions		(0.12	)		(1.29	)		(1.76	)		(0.71	)		(0.38	)		(0.30	)

Net asset value, end of period	$	8.98		$	8.41		$	10.01		$	10.74		$	9.49		$	8.91

Total return (B)		8.31	% (C)		(3.25	)%		9.59	%		21.14	%		10.87	%		6.03	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in 000’s)	$	51,610		$	57,752		$	132,177		$	278,917		$	145,946		$	117,798
Ratios to average net assets
Expenses, before waiver and reimbursement		1.54	% (D)		1.47	%		1.38	%		1.33	%		1.36	%		1.36	%
Expenses, net waiver and reimbursement		1.00	% (D)		0.89	%		0.88	%		0.89	%		1.21	%		1.36	%
Net investment income		3.34	% (D)		3.37	%		3.22	%		3.59	%		3.55	%		3.40	%
Portfolio turnover rate		79	% (C)		92	%		92	%		130	%		109	%		143	%


	Class A
				For the			For the			For the			For the			For the
	For the			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Six Months Ended			December 31,			December 31,			December 31,			December 31,			December 31,
	June 30, 2016			2015			2014			2013			2012			2011
	(Unaudited)
Net asset value, beginning of year	$	8.40		$	10.01		$	10.73		$	9.49		$	8.90		$	8.69

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.13	(A)		0.31			0.34			0.34			0.30			0.28
Net realized and unrealized gain (loss) on investments		0.55			(0.66	)		0.67			1.59			0.65			0.21
Total from investment operations		0.68			(0.35	)		1.01			1.93			0.95			0.49

LESS DISTRIBUTIONS:
From net investment income		(0.11	)		(0.32	)		(0.38	)		(0.30	)		(0.36	)		(0.28	)
From net realized gains on investments		—			(0.94	)		(1.35	)		(0.39	)		—			—
Total distributions		(0.11	)		(1.26	)		(1.73	)		(0.69	)		(0.36	)		(0.28	)

Net asset value, end of period	$	8.97		$	8.40		$	10.01		$	10.73		$	9.49		$	8.90

Total return (B)		8.18	% (C)		(3.60	)%		9.45	%		20.74	%		10.72	%		5.65	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in 000’s)	$	36,011		$	39,610		$	66,445		$	71,258		$	46,343		$	26,843
Ratios to average net assets
Expenses, before waiver and reimbursement		1.78	% (D)		1.72	%		1.63	%		1.58	%		1.61	%		1.61	%
Expenses, net waiver and reimbursement		1.25	% (D)		1.14	%		1.13	%		1.14	%		1.46	%		1.61	%
Net investment income		3.10	% (D)		3.14	%		3.01	%		3.32	%		3.37	%		3.19	%
Portfolio turnover rate		79	% (C)		92	%		92	%		130	%		109	%		143	%

(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(B)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends and does not reflect the impact of sales charges. Had the Advisor not waived its fees and reimbursed expenses, total return would have been lower.

(C)

Not annualized.

(D)

Annualized.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Rational Dividend Capture Fund (Continued)

Financial Highlights

For a Share Outstanding Throughout the Period

	Class C
				For the			For the
	For the			Year Ended			Period Ended
	Six Months Ended			December 31,			December 31,
	June 30, 2016			2015			2014 (A)
	(Unaudited)
Net asset value, beginning of year/period	$	8.38		$	9.99		$	10.67

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.11	(B)		0.27			0.32
Net realized and unrealized gain (loss) on investments		0.55			(0.66	)		0.70
Total from investment operations		0.66			(0.39	)		1.02

LESS DISTRIBUTIONS:
From net investment income		(0.09	)		(0.28	)		(0.35	)
From net realized gains on investments		—			(0.94	)		(1.35	)
Total distributions		(0.09	)		(1.22	)		(1.70	)

Net asset value, end of period	$	8.95		$	8.38		$	9.99

Total return (C)		7.91	% (D)		(4.08	)%		9.54	% (D)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in 000’s)	$	1,945		$	2,335		$	4,154
Ratios to average net assets
Expenses, before waiver and reimbursement		2.29	% (E)		2.16	%		2.22	% (E)
Expenses, net waiver and reimbursement		1.75	% (E)		1.63	%		1.63	% (E)
Net investment income		2.59	% (E)		2.64	%		2.69	% (E)
Portfolio turnover rate		79	% (D)		92	%		92	% (D)

(A)

The Rational Dividend Capture Fund Class C shares commenced operations on January 3, 2014.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the year.

(C)

Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund assuming reinvestment of dividends. Had the Advisor not waived its fees and reimbursed expenses, total return would have been lower.

(D)

Not annualized.

(E)

Annualized.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Rational Risk Managed Emerging Markets Fund

Financial Highlights

For a Share Outstanding Throughout Each Period

	Institutional Class
				For the			For the			For the			For the			For the
	For the			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Six Months Ended			December 31,			December 31,			December 31,			December 31,			December 31,
	June 30, 2016			2015			2014			2013			2012			2011
	(Unaudited)
Net asset value, beginning of period	$	6.76		$	9.38		$	10.74		$	10.33		$	9.36		$	11.46

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (A)		(0.01	)		0.03			(0.03	)		0.04			0.04			0.08
Net realized and unrealized gain (loss) on investments		0.06			(0.15	)		0.16			0.58			0.97			(1.99	)
Total from investment operations		0.05			(0.12	)		0.13			0.62			1.01			(1.91	)

LESS DISTRIBUTIONS:
From net investment income		—			(0.33	)		—			(0.21	)		(0.04	)		(0.05	)
From net realized gains on investments		—			(2.17	)		(1.49	)		—			—			(0.14	)
Total distributions		—			(2.50	)		(1.49	)		(0.21	)		(0.04	)		(0.19	)

Net asset value, end of period	$	6.81		$	6.76		$	9.38		$	10.74		$	10.33		$	9.36

Total return (B)		0.59	% (C)		(0.60	)%		1.31	%		6.08	%		10.82	%		(16.67	)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	6,201		$	5,483		$	20,578		$	27,015		$	38,696		$	38,871
Ratios to average net assets
Expenses, before waiver and reimbursement (E)		2.94	% (D)		2.52	%		2.22	%		2.01	%		1.90	%		1.79	%
Expenses, net waiver and reimbursement (E)		1.25	% (D)		0.90	%		1.63	%		1.87	%		1.90	%		1.79	%
Net investment income (loss) (E,F)		(0.28	)% (D)		0.32	%		(0.29	)%		0.40	%		0.41	%		0.71	%
Portfolio turnover rate		239	% (C)		86	%		88	%		156	%		97	%		110	%


	Class A
				For the			For the			For the			For the			For the
	For the			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Six Months Ended			December 31,			December 31,			December 31,			December 31,			December 31,
	June 30, 2016			2015			2014			2013			2012			2011
	(Unaudited)
Net asset value, beginning of period	$	6.73		$	9.35		$	10.73		$	10.32		$	9.36		$	11.43

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (A)		0.00			0.02			(0.02	)		0.01			0.01			0.04
Net realized and unrealized gain (loss) on investments		0.04			(0.17	)		0.13			0.59			0.97			(1.97	)
Total from investment operations		0.04			(0.15	)		0.11			0.60			0.98			(1.93	)

LESS DISTRIBUTIONS:
From net investment income		—			(0.30	)		—			(0.19	)		(0.02	)		—
From net realized gains on investments		—			(2.17	)		(1.49	)		—			—			(0.14	)
Total distributions		—			(2.47	)		(1.49	)		(0.19	)		(0.02	)		(0.14	)

Net asset value, end of period	$	6.77		$	6.73		$	9.35		$	10.73		$	10.32		$	9.36

Total return (B)		0.75	% (C)(G)		(0.91	)%		1.13	%		5.87	%		10.43	%		(16.80	)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	4,330		$	4,501		$	6,774		$	429		$	416		$	541
Ratios to average net assets
Expenses, before waiver and reimbursement (E)		3.21	% (D)		2.77	%		2.47	%		2.26	%		2.15	%		2.04	%
Expenses, net waiver and reimbursement (E)		1.50	% (D)		1.15	%		1.88	%		2.12	%		2.15	%		2.04	%
Net investment income (loss) (E,F)		(0.06	)% (D)		0.19	%		(0.15	)%		0.06	%		0.09	%		0.48	%
Portfolio turnover rate		239	% (C)		86	%		88	%		156	%		97	%		110	%

(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(B)

(C)

Not annualized.

(D)

Annualized.

(E)

Does not include expenses of the underlying investment companies in which the Fund invests.

(F)

Recognition of net investment income (loss) is affected by the timing and declaration of dividends by the underlying investment companies in which the Fund invests.

(G)

Includes adjustments in accordance with accounting principles generally accepted in the United States and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the nest asset values and returns for shareholder transactions.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Rational Risk Managed Emerging Markets Fund (Continued)

Financial Highlights

For a Share Outstanding Throughout the Period

	Class C ^(A)

	For the
	Period Ended
	June 30, 2016
	(Unaudited)
Net asset value, beginning of period	$	6.60

INCOME FROM INVESTMENT OPERATIONS:
Net investment income (B)		0.02
Net realized and unrealized gain on investments		0.15
Total from investment operations		0.17

LESS DISTRIBUTIONS:
From net investment income		—
From net realized gains on investments		—
Total distributions		—

Net asset value, end of period	$	6.77

Total return (C)		2.58	% (D)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	1
Ratios to average net assets
Expenses, before waiver and reimbursement (F)		2.59	% (E)
Expenses, net waiver and reimbursement (F)		2.25	% (E)
Net investment income (F,G)		3.14	% (E)
Portfolio turnover rate		239	% (D)

(A)

The Rational Risk Managed Emerging Markets Fund Class C shares commenced operations on May 31, 2016.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

(D)

Not annualized.

(E)

Annualized.

(F)

Does not include expenses of the underlying investment companies in which the Fund invests.

(G)

Recognition of net investment income is affected by the timing and declaration of dividends by the underlying investment companies in which the Fund invests.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Rational Real Strategies Fund

Financial Highlights

For a Share Outstanding Throughout Each Period

	Institutional Class
				For the			For the			For the			For the			For the
	For the			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Six Months Ended			December 31,			December 31,			December 31,			December 31,			December 31,
	June 30, 2016			2015			2014			2013			2012			2011
	(Unaudited)
Net asset value, beginning of period	$	5.39		$	6.73		$	8.05		$	7.42		$	7.15		$	7.99

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.04	(A)		0.19			0.13			0.15			0.11			0.05
Net realized and unrealized gain (loss) on investments		0.04			(1.32	)		(1.35	)		0.55			0.26			(0.82	)
Total from investment operations		0.08			(1.13	)		(1.22	)		0.70			0.37			(0.77	)

LESS DISTRIBUTIONS:
From net investment income		—			(0.26	)		(0.10	)		(0.07	)		(0.10	)		(0.07	)
Total distributions		—			(0.26	)		(0.10	)		(0.07	)		(0.10	)		(0.07	)

From capital contributions from Advisor		—			0.05			—			—			—			—

Net asset value, end of period	$	5.47		$	5.39		$	6.73		$	8.05		$	7.42		$	7.15

Total return (B)		1.48	% (C)		(16.05	)% (E)		(15.03	)%		9.49	%		5.20	%		(9.64	)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	7,811		$	6,032		$	29,453		$	89,571		$	96,292		$	92,475
Ratios to average net assets
Expenses, before wavier and reimbursement		2.53	% (D)		2.49	%		1.52	%		1.36	%		1.35	%		1.35	%
Expenses, net waiver and reimbursement		1.00	% (D)		1.07	%		1.04	%		1.34	%		1.35	%		1.35	%
Net investment income		1.38	%(C)		2.99	%		1.53	%		1.93	%		1.54	%		0.66	%
Portfolio turnover rate		102	% (D)		13	%		31			43			30			60


	Class A
				For the			For the			For the			For the			For the
	For the			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Six Months Ended			December 31,			December 31,			December 31,			December 31,			December 31,
	June 30, 2016			2015			2014			2013			2012			2011
	(Unaudited)
Net asset value, beginning of period	$	5.43		$	6.73		$	8.05		$	7.43		$	7.16		$	8.00

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.03	(A)		0.19			0.10			0.13			0.09			0.03
Net realized and unrealized gain (loss) on investments		0.05			(1.30	)		(1.33	)		0.54			0.26			(0.82	)
Total from investment operations		0.08			(1.11	)		(1.23	)		0.67			0.35			(0.79	)

LESS DISTRIBUTIONS:
From net investment income		—			(0.24	)		(0.09	)		(0.05	)		(0.08	)		(0.05	)
Total distributions		—			(0.24	)		(0.09	)		(0.05	)		(0.08	)		(0.05	)

From capital contributions from Advisor		—			0.05			—			—			—			—

Net asset value, end of period	$	5.51		$	5.43		$	6.73		$	8.05		$	7.43		$	7.16

Total return (B)		1.47	% (C)		(15.75	)% (E)		(15.23	)%		9.09	%		4.96	%		(9.88	)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	932		$	979		$	1,656		$	2,366		$	2,173		$	2,004
Ratios to average net assets
Expenses, before wavier and reimbursement		2.76	% (D)		2.74	%		1.77	%		1.61	%		1.60	%		1.60	%
Expenses, net waiver and reimbursement		1.25	% (D)		1.32	%		1.29	%		1.59	%		1.60	%		1.60	%
Net investment income		1.23	% (D)		3.10	%		1.21	%		1.68	%		1.30	%		0.39	%
Portfolio turnover rate		102	% (C)		13	%		31	%		43	%		30	%		60	%

(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(B)

(C)

Not annualized.

(D)

Annualized.

(E)

Includes the impact of a contribution from the Advisor. Without such contribution, the returns would have been (16.98)% for Institutional Shares and (16.68)% for Class A Shares.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Rational Real Strategies Fund (Continued)

Financial Highlights

For a Share Outstanding Throughout Each Period

	Class C ^(A)

	For the
	Period Ended
	June 30, 2016
	(Unaudited)
Net asset value, beginning of period	$	5.49

LOSS FROM INVESTMENT OPERATIONS:
Net investment income (B)		—
Net realized and unrealized loss on investments		0.03
Total from investment operations		0.03

LESS DISTRIBUTIONS:
From net investment income		—
Total distributions		—

Net asset value, end of period	$	5.52

Total return (C,D)		0.55	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	1
Ratios to average net assets
Expenses, before waiver and reimbursement (E)		2.00	%
Expenses, net waiver and reimbursement (E)		2.00	%
Net investment Income (E)		0.08	%
Portfolio turnover rate (D)		102	%

(A)

The Rational Real Strategies Fund Class C shares commenced operations on May 31, 2016.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

(D)

Not annualized.

(E)

Annualized.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Rational Defensive Growth Fund

Financial Highlights

For a Share Outstanding Throughout Each Period

	Institutional Class
				For the			For the			For the			For the			For the
	For the			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Six Months Ended			December 31,			December 31,			December 31,			December 31,			December 31,
	June 30, 2016			2015			2014			2013			2012			2011
	(Unaudited)
Net asset value, beginning of period	$	4.69		$	20.75		$	28.75		$	23.44		$	19.53		$	20.21

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)		0.03	(A)		0.09			0.09			(0.01	)		0.09			(0.05	)
Net realized and unrealized gain on investments		0.05			(0.81	)		(0.58	)		6.60			4.60			(0.63	)
Total from investment operations		0.08			(0.72	)		(0.49	)		6.59			4.69			(0.68	)

LESS DISTRIBUTIONS:
From net investment income		—			(0.08	)		(0.02	)		(0.01	)		(0.04	)		—
From net realized gains on investments		—			(15.26	)		(7.49	)		(1.27	)		(0.74	)		—
Total distributions		—			(15.34	)		(7.51	)		(1.28	)		(0.78	)		—

Net asset value, end of period	$	4.77		$	4.69		$	20.75		$	28.75		$	23.44		$	19.53

Total return (B)		1.71	% (C)		(7.82	)%		(1.41	)%		28.38	%		24.11	%		(3.36	)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	3,956		$	13,456		$	152,846		$	339,983		$	192,757		$	166,134
Ratios to average net assets
Expenses, before waiver and reimbursement		1.76	% (D)		1.56	%		1.37	%		1.33	%		1.35	%		1.32	%
Expenses, net waiver and reimbursement		1.00	% (D)		1.06	%		1.03	%		1.33	%		1.35	%		1.32	%
Ratio of net investment income (loss)		1.24	% (D)		0.46	%		0.23	%		0.05	%		0.41	%		(0.25	)%
Portfolio turnover rate		102	% (C)		35	%		12	%		22	%		11	%		18	%


	Class A
				For the			For the			For the			For the			For the
	For the			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Six Months Ended			December 31,			December 31,			December 31,			December 31,			December 31,
	June 30, 2016			2015			2014			2013			2012			2011
	(Unaudited)
Net asset value, beginning of period	$	3.86		$	19.89		$	27.92		$	22.84		$	19.06		$	19.78

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)		0.02	(A)		0.07			0.01			(0.07	)		0.04			(0.10	)
Net realized and unrealized gain on investments		0.04			(0.77	)		(0.55	)		6.42			4.48			(0.62	)
Total from investment operations		0.06			(0.70	)		(0.54	)		6.35			4.52			(0.72	)

LESS DISTRIBUTIONS:
From net investment income		—			(0.07	)		—			—			—			—
From net realized gains on investments		—			(15.26	)		(7.49	)		(1.27	)		(0.74	)		—
Total distributions		—			(15.33	)		(7.49	)		(1.27	)		(0.74	)		—

Net asset value, end of period	$	3.92		$	3.86		$	19.89		$	27.92		$	22.84		$	19.06

Total return (B)		1.55	% (C)		(8.21	)%		(1.62	)%		28.09	%		23.82	%		(3.64	)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	17,120		$	20,944		$	44,589		$	74,132		$	28,485		$	22,409
Ratios to average net assets
Expenses, before waiver and reimbursement		2.00	% (D)		1.81	%		1.62	%		1.58	%		1.60	%		1.57	%
Expenses, net waiver and reimbursement		1.25	% (D)		1.31	%		1.28	%		1.55	%		1.60	%		1.57	%
Ratio of net investment income (loss)		0.88	% (D)		0.52	%		0.01	%		(0.27	)%		0.17	%		(0.50	)%
Portfolio turnover rate		102	% (C)		35	%		12	%		22	%		11	%		18	%

(A)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(B)

(C)

Not annualized.

(D)

Annualized.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Rational Defensive Growth Fund (Continued)

Financial Highlights

For a Share Outstanding Throughout Each Period

	Class C ^(A)
				For the			For the
	For the			Year Ended			Period Ended
	Six Months Ended			December 31,			December 31,
	June 30, 2016			2015			2014
	(Unaudited)
Net asset value, beginning of period
	$	3.69		$	19.75		$	27.60
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)		0.01	(B)		—			(0.07	)
Net realized and unrealized gain (loss) on investments		0.04			(0.76	)		(0.29	)
Total from investment operations		0.05			(0.76	)		(0.36	)

LESS DISTRIBUTIONS:
From net investment income		—			(0.04	)		—
From net realized gains on investments		—			(15.26	)		(7.49	)
Total distributions		—			(15.30	)		(7.49	)

Net asset value, end of period	$	3.74		$	3.69		$	19.75

Total return (C)		1.36	% (D)		(8.56	)%		(1.00	)% (D)

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	523		$	766		$	1,545
Ratios to average net assets
Expenses, before waiver and reimbursement		2.47	% (E)		2.31	%		2.15	% (E)
Expenses, net waiver and reimbursement		1.75	% (E)		1.81	%		(1.79	)% (E)
Ratio of net investment income (loss)		0.39	% (E)		0.04	%		(0.54	)% (E)
Portfolio turnover rate		102	% (D)		35	%		12	% (D)

(A)

The Rational Defensive Growth Fund Class C shares commenced operations on January 3, 2014.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

(D)

Not annualized.

(E)

Annualized.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Rational Strategic Allocation Fund

Financial Highlights

For a Share Outstanding Throughout Each Period

	Institutional Class ^(A)
	For the
	Period Ended
	June 30, 2016
	(Unaudited)
Net asset value, beginning of period	$	9.99

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (B)		0.01
Net realized and unrealized gain on investments		0.13
Total from investment operations		0.14

LESS DISTRIBUTIONS:
From net investment income		(0.03	)
From net realized gains on investments		—
Total distributions		(0.03	)

Net asset value, end of period	$	10.10

Total return (C,D)		1.37	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	100
Ratios to average net assets
Expenses, before waiver and reimbursement (E,F)		0.89	%
Expenses, net waiver and reimbursement (E,F)		0.45	%
Net investment income (E,F,G)		1.26	%
Portfolio turnover rate (D)		20	%

	Class A
				For the			For the			For the			For the			For the
	For the			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	Six Months Ended			December 31,			December 31,			December 31,			December 31,			December 31,
	June 30, 2016			2015			2014			2013			2012			2011
	(Unaudited)
Net asset value, beginning of period	$	9.78		$	11.36		$	11.77		$	10.99		$	11.33		$	11.57

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.04	(B)		0.14			0.17			0.09			0.12			0.10
Net realized and unrealized gain (loss) on investments		0.31			(0.34	)		0.07			1.34			0.75			(0.13	)
Total from investment operations		0.35			(0.20	)		0.24			1.43			0.87			(0.03	)

LESS DISTRIBUTIONS:
From net investment income		(0.02	)		(0.12	)		(0.24	)		(0.24	)		(0.12	)		(0.10	)
From net realized gains on investments		—			(1.26	)		(0.41	)		(0.41	)		(1.09	)		(0.11	)
Total distributions		(0.02	)		(1.38	)		(0.65	)		(0.65	)		(1.21	)		(0.21	)

Net asset value, end of period	$	10.11		$	9.78		$	11.36		$	11.77		$	10.99		$	11.33

Total return (C)		4.45	% (D)		(1.87	)%		2.05	%		13.14	%		7.79	%		(0.18	)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	15,732		$	17,061		$	21,008		$	21,065		$	18,192		$	27,642
Ratios to average net assets
Expenses, before waiver and reimbursement (F)		1.14	% (E)		0.80	%		0.89	%		0.93	%		0.96	%		1.04	%
Expenses, net waiver and reimbursement (F)		0.70	% (E)		0.67	%		0.68	%		0.74	%		0.73	%		0.70	%
Ratios of net Investment income (F,G)		0.82	% (E)		1.10	%		1.38	%		0.72	%		0.98	%		0.90	%
Portfolio turnover rate		20	% (D)		44	%		52	%		44	%		74	%		23	%

(A)

The Rational Strategic Allocation Fund Institutional shares commenced operations on May 31, 2016.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

(D)

Not annualized.

(E)

Annualized.

(F)

The ratios of expenses to average net assets and net investment income (loss) to average net assets do not reflect the expenses of the underlying investment companies in which the Fund invests.

(G)

Recognition of net investment income (loss) is affected by the timing and declaration of dividends by the underlying investment companies in which the Fund invests.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS

Rational Strategic Allocation Fund (Continued)

Financial Highlights

For a Share Outstanding Throughout Each Period

	Class C ^(A)

	For the
	Period Ended
	June 30, 2016
	(Unaudited)
Net asset value, beginning of period	$	9.99

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (B)		0.00
Net realized and unrealized gain on investments		0.13
Total from investment operations		0.13

LESS DISTRIBUTIONS:
From net investment income		(0.01	)
From net realized gains on investments		—
Total distributions		(0.01	)

Net asset value, end of period	$	10.11

Total return (C,D)		1.35	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000’s)	$	1
Ratios to average net assets (including interest expense)
Expenses, before waiver and reimbursement (E,F)		1.89	%
Expenses, net waiver and reimbursement (E,F)		1.45	%
Net investment income (E,F,G)		0.23	%
Portfolio turnover rate (D)		20	%

(A)

The Rational Strategic Allocation Fund Class C shares commenced operations on May 31, 2016.

(B)

Per share amounts calculated using average shares method, which more appropriately presents the per share data for the period.

(C)

(D)

Not annualized.

(E)

Annualized.

(F)

The ratios of expenses to average net assets and net investment income (loss) to average net assets do not reflect the expenses of the underlying investment companies in which the Fund invests.

(G)

Recognition of net investment income (loss) is affected by the timing and declaration of dividends by the underlying investment companies in which the Fund invests.

See Notes which are an integral part of the Financial Statements.

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited)*

June 30, 2016	SEMI-ANNUAL REPORT

(1) ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

The Mutual Fund & Variable Insurance Trust (the “Trust”) was organized as a Delaware statutory trust on June 23, 2006. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of June 30, 2016, the Trust operated 7 separate series, or mutual funds, each with its own investment objective and strategy. The Trust was renamed effective February 22, 2016, it was formerly the Huntington Funds. This report contains financial statements and financial highlights of the funds listed below (individually referred to as a “Fund”, or collectively as the “Funds”):

●

Rational Dividend Capture Fund

●

Rational Risk Managed Emerging Markets Fund

●

Rational Real Strategies Fund

●

Rational Defensive Growth Fund

●

Rational Strategic Allocation Fund

The Funds are registered as non-diversified.

Currently, all Funds offer Class A, Class C and Institutional shares. The Class C shares for the Risk Managed Emerging Markets Fund, Real Strategies Fund and Strategic Allocation Fund commenced operations on May 31, 2016. The Strategic Allocation Fund Institutional shares class commenced operations on May 31, 2016. Each class of shares for each Fund has identical rights and privileges except with respect to distribution (12b-1) and service fees, voting rights on matters affecting a single class of shares, exchange privileges of each class of shares and sales charges. The price at which the Funds will offer or redeem shares is the net asset value (“NAV”) per share next determined after the order is considered received, subject to any applicable front end or contingent deferred sales charges. Class A shares have a maximum sales charge on purchases of 4.75% as a percentage of the original purchase price. Class C shares have a contingent deferred sales charge of 1.00% on shares sold within one year of purchase. The prospectus provides a description of each Fund’s investment objectives, policies and strategies along with information on the classes of shares currently being offered.

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Trust may enter into contracts with vendors and others that provide for general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust. However, based on experience, the Trust expects that risk of loss to be remote.

(2) SIGNIFICANT ACCOUNTING POLICIES

Each Fund is an investment company and each follow accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies”. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

A. Investment Valuations

In computing the NAV of the Funds, fair value is based on market valuations with respect to portfolio securities for which market quotations are readily available. Pursuant to Trustee-approved policies, the Trust relies on certain security pricing services to provide the current market value of securities. Those security pricing services value equity securities (including

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

foreign equity securities, exchange-traded funds and closed-end funds) traded on a securities exchange at the last reported sales price on the principal exchange. Equity securities quoted by NASDAQ are valued at the NASDAQ official closing price. If there is no reported sale on the principal exchange, and in the case of over-the counter securities, equity securities are valued at a bid price estimated by the security pricing service. Option contracts are generally valued at the mean of the bid and asked price on which such options are traded. Foreign securities quoted in foreign currencies are translated into U.S. dollars at the foreign exchange rate in effect as of the close of the NYSE. Forward currency exchange contracts are valued daily at the forward foreign exchange rate in effect as of the close of the NYSE. Investments in open-end investment companies are valued at their respective net asset value as reported by such companies and are typically categorized as Level 1 in the fair value hierarchy. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost.

Securities for which market quotations are not readily available are valued at fair value under Trust procedures approved by the Trustees. In these cases, a Pricing Committee, established and appointed by the Trustees, determines in good faith, subject to Trust procedures, the fair value of portfolio securities held by a Fund (“good faith fair valuation”). When a good faith fair valuation of a security is required, consideration is generally given to a number of factors including, but not limited to the following: dealer quotes, published analyses by dealers or analysts regarding the security, transactions which provide implicit valuation of the security (such as a merger or tender offer transaction), the value of other securities or contracts which derive their value from the security at issue, and the implications of any other circumstances which have caused trading in the security to halt. With respect to certain categories of securities, the procedures utilized by the Pricing Committee detail specific valuation methodologies to be applied in lieu of considering the aforementioned list of factors.

Fair valuation procedures are also used when a significant event affecting the value of a portfolio security is determined to have occurred between the time when the price of the portfolio security is determined and the close of trading on the NYSE, which is when each Fund’s NAV is computed. An event is considered significant if there is both an affirmative expectation that the security’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Significant events include significant securities market movements occurring between the time the price of the portfolio security is determined and the close of trading on the NYSE. For securities normally priced at their last sale price in a foreign market, such events can occur between the close of trading in the foreign market and the close of trading on the NYSE.

In some cases, events affecting the issuer of a portfolio security may be considered significant events. Examples of potentially significant events include announcements concerning earnings, acquisitions, new products, management changes, litigation developments, a strike or natural disaster affecting the company’s operations or regulatory changes or market developments affecting the issuer’s industry occurring between the time when the price of the portfolio security is determined and the close of trading on the NYSE. For securities of foreign issuers, such events could also include political or other developments affecting the economy or markets in which the issuer conducts its operations or its securities are traded.

There can be no assurance that a Fund could purchase or sell a portfolio security at the price used to calculate the Fund’s NAV. In the case of good faith fair valued portfolio securities, lack of information and uncertainty as to the significance of information may lead to a conclusion that a prior valuation is the best indication of a portfolio security’s present value. Good faith fair valuations generally remain unchanged until new information becomes available. Consequently, changes in good faith fair valuation of portfolio securities may be less frequent and of greater magnitude than changes in the price of portfolio securities valued at their last sale price, by an independent pricing service, or based on market quotations.

The Trust calculates the NAV for each of the Funds by valuing securities held based on fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Funds’ investments are summarized in the three broad levels listed below:

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

●

Level 1 – unadjusted quoted prices in active markets for identical investments and/or registered investment companies where the value per share is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date.

●

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

●

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments).

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Trust recognizes transfers between fair value hierarchy levels at the reporting period end. The inputs or methodology used for valuing investments is not necessarily an indication of the risk associated with investing in those investments.

The Trustees have authorized the use of an independent fair valuation service. If the movement in a designated U.S. market index, after foreign markets close, is greater than predetermined levels, the Funds may use a systematic valuation model provided from that independent third party to fair value its international equity securities.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of June 30, 2016, for each Fund’s assets and liabilities measured at fair value:

Rational Dividend Capture
Assets	Level 1		Level 2		Level 3		Total
Common Stock	$	65,028,311	$	—	$	—	$	65,028,311
Preferred Stock		23,026,781		—		—		23,026,781
Short-Term Investments		1,448,454		—		—		1,448,454
Total Assets	$	89,503,546	$	—	$	—	$	89,503,546

Rational Risk Managed Emerging Markets
Assets	Level 1		Level 2		Level 3		Total
Common Stock	$	8,653,774	$	—	$	—	$	8,653,774
Exchange Traded Funds		763,038		—		—		763,038
Short-Term Investments		599,116		—		—		599,116
Forward Contracts		10,940						10,940
Total Assets	$	10,026,868	$	—	$	—	$	10,026,868
Liabilities
Forward Contracts	$	141,427		—		—	$	141,427
Total Liabilities	$	141,427	$	—	$	—	$	141,427

Rational Real Strategies
Assets	Level 1		Level 2		Level 3		Total
Common Stock	$	4,740,057	$	—	$	—	$	4,740,057
Real Estate Investments		—		—		1,290,877		1,290,877
Short-Term Investments		2,769,800		—		—		2,769,800
Total Assets	$	7,509,857	$	—	$	1,290,877	$	8,800,734
Liabilities
Call Options Written	$	82,992		—		—	$	82,992
Total Liabilities	$	82,992	$	—	$	—	$	82,992

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

Rational Defensive Growth
Assets	Level 1		Level 2		Level 3		Total
Common Stock	$	21,071,394	$	—	$	—	$	21,071,394
Short-Term Investments		495,691		—		—		495,691
Total Assets	$	21,567,085	$	—	$	—	$	21,567,085

Rational Strategic Allocation
Assets	Level 1		Level 2		Level 3		Total
Mutual Funds	$	11,245,807	$	—	$	—	$	11,245,807
Exchange Traded Funds		4,181,816		—		—		4,181,816
Short-Term Investments		409,869		—		—		409,869
Total Assets	$	15,837,492	$	—	$	—	$	15,837,492

Refer to the Portfolio of Investments for Industry classifications.

For the six months ended June 30, 2016, there were no transfers into or out of Level 1 and Level 2 during the six months ended June 30, 2016. The Trust recognizes significant transfers between fair value hierarchy levels at the reporting period end.

The following is a summary of the inputs used to value the Real Strategies Fund’s Level 3 investments as of June 30, 2016:

	Fair Value				Range
Type of Assets	at 6/30/2016		Valuation Techniques	Unobservable Inputs	(Weighted Average)
Real Estate Investments	$	1,290,877	Independent Valuation	Sales Comparison Approach	N/A
				Income Approach	N/A
				Market Cap Rate	5.30%-13.60%(7.00%)

As noted previously, the Real Strategies Fund’s investments in real estate investments are valued by using the results of an independent valuation appraisal. The independent valuation agent will utilize either an income approach, a sales comparison approach, or a combination thereof to arrive at the valuation. The significant unobservable inputs used in the income approach include the net cash flow from each underlying property and the related discount and market cap rates. An increase in the cash flows and/or market cap rates or decreases in the discount rate used would increase the value of the real estate. A decrease in the cash flows and/or market cap rate or increases in the discount rate used would decrease the value of the real estate. The significant unobservable inputs used in the sales comparison approach include measurable units of comparison (such as price per acre, price per unit, price per square foot, or gross rent multiplier), as adjusted for each comparable property’s location, physical condition or other economic characteristics.

Following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:

	Real Estate
Real Strategies Fund	Investments
Balance as of December 31, 2015	$	1,519,093
Transfers into Level 3		—
Transfers out of Level 3		—
Purchases		—
Sales		(275,000	)
Realized Gain (Loss)		12,678
Change in unrealized appreciation (depreciation)		33,506
Balance as of June 30, 2016	$	1,290,277

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

B. Foreign Currency Translation

The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange each business day to determine the value of investments, and other assets and liabilities. Purchases and sales of foreign securities, and income and expenses, are translated at the prevailing rate of exchange on the respective date of these transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuation arising from changes in market prices of securities held. These fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currency transactions.

C. Derivative Instruments

Certain of the Funds may be subject to equity price risk and foreign currency exchange risk in the normal course of pursuing their investment objectives. Certain of the Funds may invest in various financial instruments including positions in foreign currency contracts and written option contracts to gain exposure to or hedge against changes in the value of equities or foreign currencies. The following is a description of the derivative instruments utilized by the Funds, including the primary underlying risk exposure related to each instrument type.

Foreign Exchange Contracts—Certain of the Funds may enter into forward foreign exchange contracts. A forward foreign exchange contract involves an obligation to purchase or sell a specific currency at a future date at a price set at the time of the contract. Such contracts are used to sell unwanted currency exposure that comes with holding securities in a market, or to buy currency exposure where the exposure from holding securities is insufficient to provide the desired currency exposure. The contracts are marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When a forward foreign currency contract is closed, a Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in exchange rates. As of June 30, 2016, the Funds did not have any forward foreign exchange contracts outstanding.

Written Options Contracts—Certain of the Funds may write options contracts for which premiums received are recorded as liabilities and are subsequently adjusted to the current value of the options written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are either exercised or closed are offset against the proceeds received or the amount paid on the transaction to determine realized gains or losses. Investing in written options contracts exposes a Fund to equity price risk.

The following is a summary of Real Strategies Fund’s written option activity for the six months ended June 30, 2016:

Rational Real Strategies	Call Options Written
	Number of			Premiums
	Contracts			Received
Options outstanding, beginning of year		—		$	—
Options written		9,324			592,299
Options covered		—			—
Options exercised		(1,951	)		(178,849	)
Options expired		(4,034	)		(277,150	)
Options outstanding, end of period		3,339		$	136,300

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

The derivatives are not accounted for as hedging instruments under GAAP. The effect of derivative instruments on the Statements of Assets and Liabilities at June 30, 2016, were as follows:

			Consolidated Statements of Assets and	Fair value of asset/liability
Fund	Derivative	Risk Type	Liabilities	derivatives
Real Strategies
	Call options written	Equity	Options written	$	82,992
Totals				$	82,992
Managed Risk Emerging Markets
	Forward Contract	Foreign Exchange	Appreciation on Foreign Currency Contracts	$	10,940
	Forward Contract	Foreign Exchange	Depreciation on Foreign Currency Contracts	$	(141,427	)
Totals				$	(130,487	)

The effect of derivative instruments on the Consolidated Statements of Operations for the six months or period ended June 30, 2016, were as follows:

				Realized and unrealized
Fund	Derivative	Risk Type	Location of gain (loss) on derivatives	gain (loss) on derivatives
Real Strategies
	Options Written	Equity	Net realized gain on options written	$	296,885
	Options Written	Equity	Net change in unrealized appreciation on options written		53,308
Totals				$	350,193
Managed Risk Emerging Markets
	Forward Contracts	Foreign Exchange	Net realized loss on foreign currency transactions	$	(302,819	)
		Foreign Exchange	Net change in unrealized depreciation on foreign currency translations		(105,276	)
				$	(408,095	)

The value of derivative instruments outstanding as of June 30, 2106 as disclosed in the Portfolios of Investments and the amounts realized and changes in unrealized gains and losses on derivative instruments during the period as disclosed above and within the Statements of Operations serve as indicators of the volume of derivative activity for the Funds.

Balance Sheet Offsetting Information

Netting Agreements – During the ordinary course of business, the Funds may enter into transactions subject to enforceable netting agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows a Fund to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreement. Generally, a Fund manages its cash collateral and securities collateral on a counterparty basis. As of June 30, 2016, the Funds were not invested in any portfolio securities or derivatives that could be netted subject to the netting agreements.

The following table provides a summary of offsetting financial liabilities derivatives and the effect of the derivative instruments on the Statements of Assets and Liabilities as of June 30, 2016:

Gross Amounts of Assets Presented in the

Statement of Assets & Liabilities

Gross Amounts

Financial

of Recognized

Instruments

Cash Collateral

Net Amount

Liabilities

Pledged

of Assets

Real Strategies Fund

Description of Liability:

Options Written

82,922

(82,922

) (1)

—

(1)

The amount is limited to the derivative liability balance and accordingly does not include excess collateral pledged.

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

D. Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer’s expense, either upon demand by the Funds or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid. The Funds will not incur any registration costs upon such resale. The Funds’ restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value price as determined by the Trust’s Pricing Committee. As of June 30, 2016, the Real Strategies Fund held restricted securities representing 14.8% of net assets as listed below:

Issuer Description	Acquisition Date	Principal Amount	Cost		Value
Real Strategies Fund:
Grocery & Pharmacy DST	8/26/11, 5/15/14	N/A	$	991,705	$	823,108
New York Power DST	7/21/11	N/A	$	537,678	$	467,769

E. Security Transactions and Related Income

During the period, investment transactions are accounted for no later than the first calculation of the NAV on the business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on the trade date on the last business day of the reporting period. Discounts and premiums on securities purchased are amortized over the lives of the respective securities. Securities gains and losses are calculated on the identified cost basis. Interest income and expenses are accrued daily. Dividends, less foreign tax withholding (if any), are recorded on the ex-dividend date.

F. Dividends and Distributions to Shareholders

Dividends from net investment income are declared and paid annually by the Risk Managed Emerging Markets Fund, Real Strategies Fund and Defensive Growth Fund. Dividends from net investment income are declared and paid quarterly by the Strategic Allocation Fund. Dividends from net investment income are declared and paid monthly by the Dividend Capture Fund.

The amount of dividends from net investment income and net realized gains are determined in accordance with the federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g. tax treatment of foreign currency gain/loss, non-deductible stock issuance costs, distributions and income received from pass through investments and net investment loss adjustments), such amounts are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. Temporary differences are primarily due to market discounts, capital loss carryforwards and losses deferred due to wash sales, straddles and return of capital from investments.

Dividends are declared separately for each class. No class has preferential rights; differences in per share dividend rates are generally due to differences in separate class expenses. Net realized capital gains, if any, are distributed at least annually.

Certain of the Funds may own shares of real estate investments trusts (“REITs”) which report information on the source of their distributions annually. Distributions received from investments in REITs in excess of income from underlying investments are recorded as realized gain and/or as a reduction to the cost of the individual REIT.

Certain of the Funds may invest in Master Limited Partnerships (“MLPs”), which generally are treated as partnerships for Federal income tax purposes. As a limited partner in the MLPs, the Fund includes its allocable share of the MLPs’ taxable income in computing its own taxable income.

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

G. Allocation of Expenses, Income, and Gains and Losses

Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionally among various Funds or all Funds within the Trust in relation to the net assets of each Fund or on another reasonable basis.

H. Federal Income Taxes

It is the policy of each Fund to qualify or continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes.

Withholding taxes on foreign interest, dividends and capital gains with respect to the Funds have been provided for in accordance with each applicable country’s tax rules and rates.

The tax character of distributions paid during the fiscal year ended December 31, 2015, were as follows:

		Distributions Paid From(a)
		Net Long-Term Capital	Total Taxable	Total
Fund	Ordinary Income	Gains	Distributions	Distributions Paid
Dividend Capture Fund	$8,008,639	$8,155,530	$16,164,169	$16,164,169
Risk Managed Emerging Markets Fund	533,123	2,340,458	2,873,581	2,873,581
Real Strategies Fund	338,399	—	338,399	338,399
Defensive Growth Fund	622,043	44,740,954	45,362,997	45,362,997
Strategic Allocation Fund	186,964	1,944,437	2,131,401	2,131,401

(a)

The tax character of distributions paid may differ from the character of distributions shown on the statements of changes in net assets due to short-term capital gains being treated as ordinary income for tax purposes.

As of December 31, 2015, the tax cost of securities and the breakdown of unrealized appreciation (depreciation) for each Fund were as follows:

								Net Unrealized
			Unrealized		Unrealized			Appreciation/
Fund	Tax Cost of Securities		Appreciation		Depreciation		(Depreciation)(a)
Dividend Capture Fund	$	113,072,615	$	7,107,182	$	(11,438,750)	$	(4,331,568)
Risk Managed Emerging Markets Fund		8,036,372		1,841,228		(655,275)		1,185,953
Real Strategies Fund		7,655,893		780,241		(1,314,462)		(534,221)
Defensive Growth Fund		36,668,749		5,608,509		(1,569,310)		4,039,199
Strategic Allocation Fund		18,414,641		501,832		(1,966,953)		(1,465,121)

(a)

The differences between the book-basis unrealized appreciation (depreciation) are attributable primarily to: tax deferral of losses on wash sales, the tax treatment of Trust Preferred securities, hybrid securities and Grantor trusts, differences related to partnership investments and the return of capital adjustments from real estate investment trusts.

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

As of December 31, 2015, the components of accumulated earnings (deficit) were as follows:

			Undistributed				Accumulated			Other			Unrealized
	Undistributed		Long-Term		Accumulated		Capital and			Temporary			Appreciation			Total Accumulated
Fund	Ordinary Income		Capital Gains		Earnings		Other Losses			Differences			(Depreciation)			Earnings (Deficit)
Dividend Capture Fund	$	1,159,945	$	1,197,882	$	2,357,827	$	—		$	(73,053	)	$	(4,331,568	)	$	(2,046,794	)
Risk Managed Emerging Markets Fund		—		—		—		(269,162	)		—			1,109,214			840,052
Real Strategies Fund		341,786		—		341,786		(16,645,408	)		(118,142	)		(534,221	)		(16,955,985	)
Defensive Growth Fund		766,678		3,522,102		4,288,780		—			—			4,035,526			8,324,306
Strategic Allocation Fund		118,514		1,399,124		1,517,638		—			—			(1,465,121	)		52,517

As of December 31, 2015, for federal income tax purposes and the treatment of distributions payable, the following Funds had capital loss carryforwards available to offset future gains, if any, to the extent provided by the Treasury regulations:

					No Expiration		No Expiration
Fund	2017		2018		Short-Term (a)		Long-Term (a)		Total
Real Strategies Fund	$	12,599,554	$	2,136,294	$	935,308	$	974,252	$	1,909,560

(a)

The provisions of the Regulated Investment Company Modernization Act of 2010 (the “Act”), which was enacted on December 22, 2010, were effective for the Funds’ fiscal year ending December 31, 2012. Although the Act provided several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each Fund’s pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses must be utilized before pre-enactment capital loss carryovers may be utilized. Under the Act, new capital losses may now be carried forward indefinitely, and retain the character of the original loss as compared with pre-enactment law, where capital losses could be carried forward for up to eight years, and carried forward as short-term capital losses, irrespective of the character of the original loss.

During the year ended December 31, 2015, the following Funds utilized capital loss carryforwards and had capital loss carryforwards expire:

	Utililized		Expired
Fund	Amount		Amount
Defensive Growth Fund	$	550,102	$	—

Certain capital and qualified late year losses incurred after October 31 and within the current taxable year are deemed to arise on the first business day of the Funds’ following taxable year. For the tax year ended December 31, 2015, the Funds deferred post October capital and late year ordinary losses as follows:

Fund		Losses				Ordinary Losses
Risk Managed Emerging Markets Fund		$	269,162			$	—

Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last three tax year ends and the interim tax period since then). Management believes there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

I. Securities Lending

Prior to February 18, 2016 The Funds had entered into securities lending agreements with Morgan Stanley & LLC,. The Funds receive compensation in the form of fees, and retain a portion of interest on the investment of any cash received as collateral. The Funds also continue to receive interest or dividends on the securities loaned. The loans are secured by collateral at least equal, at all times, to 102% of the market value of loaned securities. Gain or loss in the fair value of the securities loaned that may occur during the term of the loan will be for the account of each Fund. Each Fund has the right under the lending agreement to recover the securities from the borrower on demand. If the market value of the collateral falls below 102% plus accrued interest of the loaned securities, the lender’s agent shall request additional collateral from the borrowers to bring the collateralization back to 102%. The risks to a Fund of securities lending are that the borrower may not provide additional

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

collateral when required or return the securities when due resulting in a loss. Under the terms of the Securities Lending Agreement, each Fund is indemnified for such losses by the securities lending agent.

(3) FEES AND OTHER TRANSACTIONS WITH AFFILIATES AND OTHER SERVICE PROVIDERS

Investment Advisory Fee— Rational Advisors, Inc., (the “Advisor”) serves as the Funds’ investment adviser. For the six months ended June 30, 2016, the Advisor received a fee for its services, computed daily and paid monthly, based on a percentage of each Fund’s average daily net assets as listed below.

The Advisor has contractually agreed to waive all or a portion of its investment advisory fee (based on average daily net assets) and/or reimburse certain operating expenses of each Fund to the extent necessary in order to limit each Fund’s total annual fund operating expenses (after the fee waivers and/or expense reimbursements, and exclusive of acquired fund fees and expenses, brokerage costs, interest, taxes and dividends, and extraordinary expenses) as listed below:

				Expense Caps
													Expense Cap
Fund	Management Fee			Institutional Shares			Class A Shares			Class C Shares			Expiration Date
Dividend Capture Fund		0.75	%		1.00	%		1.25	%		1.75	%	April 30, 2017
Risk Managed Emerging Markets Fund		1.00	%		1.25	%		1.50	%		2.25	%	April 30, 2017
Real Strategies Fund		0.75	%		1.00	%		1.25	%		2.00	%	April 30, 2017
Defensive Growth Fund		0.75	%		1.00	%		1.25	%		1.75	%	April 30, 2017
Strategic Allocation Fund		0.10	%		0.45	%		0.70	%		1.45	%	April 30, 2017

Amounts waived or reimbursed in the contractual period may be recouped by the Advisor within three years of the waiver and/or reimbursement. As of June 30, 2016, the following amounts have been waived or reimbursed by the Advisor and are subject to repayment by the respective Fund:

			Expiring
	Amount Waived		Beginning
Fund	or Reimbursed		December 31,
Dividend Capture Fund	$	1,004,031		2016
		1,313,835		2017
		950,747		2018
Risk Managed Emerging Markets Fund		43,287		2016
		96,711		2017
		259,857		2018
Real Strategies Fund		14,797		2016
		282,469		2017
		209,310		2018
Defensive Growth Fund		73,283		2016
		1,097,463		2017
		528,144		2018
Strategic Allocation Fund		37,483		2016
		48,026		2017
		65,861		2018

The Independent Trustees are paid a quarterly retainer, and receive compensation for each committee meeting, telephonic Board meeting, and special in-person Board meeting attended. Officers receive no compensation from the Trust. The Trust reimburses each of the Independent Trustees for travel and other expenses incurred in connection with attendance at such meetings. The Trust has no retirement or pension plans. Additional information regarding the Trust’s Trustees is available in the Funds’ Statement of Additional Information.

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

The Board has adopted the Trust’s Master Distribution and Shareholder Servicing Plan (the “Plan”) which allows each Fund to pay fees up to 0.25% of the Fund’s average daily net assets to financial intermediaries (which may be paid through the Funds’ distributor) for the sale and distribution of these Shares. Pursuant to the Funds’ 12b-1 Plan, the Funds may finance from their assets certain activities or expenses that are intended primarily to result in the sale of Fund shares and to reimburse Northern Lights Distributors, LLC. (the “Distributor”) and Manager for distribution related expenses. For the period January 1, 2016 to April 15, 2016 Unified Financial Securities, LLC, served as distributor of the Funds.

Shareholder Servicing Fees – The Trust has adopted a Shareholder Servicing Plan pursuant to which the Funds may pay Shareholder Services Fees up to 0.25% of the average daily net assets to financial intermediaries for providing shareholder assistance, maintaining shareholder accounts and communicating or facilitating purchases and redemptions of Shares.

In addition, certain affiliates of the Distributor provide services to the Funds as follows:

Gemini Fund Services, LLC (“GFS”) – GFS an affiliate of the Distributor, provides administrative, fund accounting, and transfer agency services to the Funds pursuant to agreements with the Trust, for which it receives from each Fund the greater of an annual minimum fee or an asset based fee, which scales downward based upon net assets for fund administration, fund accounting and transfer agency services. The Fund also pays Administrator for any out-of-pocket expenses. Officers of the Trust are also employees of GFS, and are not paid any fees directly by the Trust for serving in such capacity. For the period January 1, 2016 to April 15, 2016 Ultimus Asset Services, LLC, served as Administrator to the Trust.

Blu Giant, LLC (“Blu Giant”) – Blu Giant, an affiliate of GFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Funds on an ad-hoc basis. For the provision of these services, Blu Giant receives customary fees from the Funds.

Pursuant to the Management Services Agreement between the Trust and MFund Services LLC (“MFund”), MFund provides the Funds with various management and administrative services. For these services, the Funds pay MFund an annual base fee plus an annual asset-based fee which scales downward based upon net assets. In addition, the Funds reimburse MFund for any reasonable out- of- pocket expenses incurred in the performance of its duties under the Management Services Agreement.

Pursuant to the Services Agreements, MFund provides chief compliance officer services to the Funds. For these services, the Funds pay MFund an annual base fee plus an annual asset-based fee based upon net assets. In addition, the Funds reimburse MFund for any reasonable out- of- pocket expenses incurred in the performance of its duties under the Services Agreement. The amounts due to MFund at June 30, 2016 for management and chief compliance officer services are listed in the Statements of Assets and Liabilities under “Fees Payable to Affiliate.”

Affiliated Funds — Affiliated companies are mutual funds which are advised by Catalyst Capital Advisors or Rational Advisors. Companies which are affiliates of the Funds’ at June 30, 2016, are noted in the Funds’ Portfolios of Investments. A summary of these investments in affiliated funds is set forth below:

		Value at				Sales			Dividend		Value at
Fund	Affiliated Holding	12/31/2015		Purchases		Proceeds			Income		6/30/2016
Rational Strategic Allocation
	Rational Dividend Capture Fund, Inst. Sh.	$	2,261,270	$	—	$	(500,000	)	$	25,365	$	1,881,309
	Rational Risk Managed Emerging Markets Fund, Inst. Sh.		2,087,797		1,075,000		—			—		2,100,151
	Rational Defensive Growth Fund, Inst. Sh.		1,721,335		—		(500,000	)		—		1,194,753
	Catalyst Dynamic Alpha Fund, Class I		—		1,000,000		—			—		1,112,525
	Catalyst MLP & Infrastructure Fund, Class I		—		500,000		—			27,221		821,788
	Catalyst/Stone Beach Income Opportunity Fund, Class I		—		1,500,000		—			9,420		1,514,072
	Ecological Strategy ETF		2,074,172		—		—			—		2,042,223
	US Equity Rotation Strategy ETF		2,092,495		—		—			—		2,139,593
		$	10,237,069	$	4,075,000	$	(1,000,000	)	$	62,006	$	12,806,414

RATIONAL FUNDS
*NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)*

June 30, 2016	SEMI-ANNUAL REPORT

(4) INVESTMENT TRANSACTIONS

For the six months ended June 30, 2016, aggregate purchases and proceeds from sales of investment securities (excluding short-term investments) for the Funds were as follows:

Fund	Purchases		Sales
Dividend Capture	$	69,238,032	$	83,824,155
Risk Managed Emerging Markets		20,895,444		20,410,591
Real Strategies		6,976,031		6,563,886
Defensive Growth		28,509,521		39,916,048
Strategic Allocation		3,118,274		4,295,271

(5) FOREIGN INVESTMENT RISK

Compared with investing in the United States, investing in foreign markets involves a greater degree and variety of risk. Investors in international or foreign markets may face delayed settlements, currency controls and adverse economic developments as well as higher overall transaction costs. In addition, fluctuations in the U.S. dollar’s value versus other currencies may erode or reverse gains from investments denominated in foreign currencies or widen losses. Foreign governments may expropriate assets, impose capital or currency controls, impose punitive taxes, impose limits on ownership or nationalize a company or industry. Any of these actions could have severe effect on security prices and impair the Fund’s ability to bring its capital or income back to the U.S. Exchange rate. Fluctuations also may impair an issuer’s ability to repay U.S. dollar denominated debt, thereby increasing credit risk of such debt. Finally, the value of foreign securities may be affected by incomplete, less frequent or inaccurate financial information about their issuers, social upheavals or political actions ranging from tax code changes to government collapse. Foreign companies may also receive less coverage than U.S. companies by market analysts, and financial reporting standards or regulatory requirements may not be comparable to those applicable to U.S. companies.

(6) LINE OF CREDIT

The Trust participated in a short-term credit agreement (“Line of Credit”) with Huntington for the period January 1, 2016 through January 12, 2016 when the agreement was terminated. Under the terms of the agreement, the Funds could borrow up to $30 million at an interest rate of LIBOR plus 135 basis points. The purpose of the agreement was to meet temporary or emergency cash needs, including redemption requests that might otherwise require the untimely disposition of securities. Huntington received an annual facility fee of 0.125% on $30 million as well as an additional annual fee of 0.125% on any unused portion of the credit facility for providing the Line of Credit. Each Fund in the Trust paid a pro-rata portion of this facility fee, and unused fee, plus any interest on amounts borrowed. For the period January 1, 2016 through January 12, 2016 the Funds did not utilize the Line of Credit.

(7) SUBSEQUENT EVENTS

Management of the Funds has evaluated the need for disclosure and/or adjustments resulting from subsequent events through the date these financial statements were issued. There were no other additional items requiring adjustment of the financial statements or additional disclosure.

RATIONAL FUNDS

INFORMATION ABOUT YOUR FUNDS’ EXPENSES (Unaudited)

As a shareholder of the Fund(s), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees; and other Fund expenses. The example below is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The example below illustrates an investment of $1,000 invested at the beginning of the period (01/01/16) and held for the entire period through 6/30/16.

Actual Expenses

The first section of each table below provides information about actual account values and actual expenses. You may use the information in these sections, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first row under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second section of each table provides information about the hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. For more information on transactional costs, please refer to the Funds’ prospectus.

											Hypothetical
						Actual					(5% return before expenses)

	Fund’s			Beginning
	Annualized			Account Value		Ending Account		Expenses Paid			Ending Account		Expenses Paid
	Expense Ratio			01/01/16		Value 06/30/16		During Period *			Value 06/30/16		During Period *

Rational Dividend Capture Fund - Class A		1.25	%	$	1,000.00	$	1,081.80	$	6.47		$	1,018.65	$	6.27
Rational Dividend Capture Fund - Class C		1.75	%		1,000.00		1,079.10		9.05			1,016.16		8.77
Rational Dividend Capture Fund - Institutional Class		1.00	%		1,000.00		1,083.10		5.18			1,019.89		5.02
Rational Risk Managed Emerging Markets Fund - Class A		1.50	%		1,000.00		1,044.50		3.56			1,021.38		3.52
Rational Risk Managed Emerging Markets Fund - Class C		2.25	%		1,000.00		1,013.50		1.24	+		1,017.65		7.27
Rational Risk Managed Emerging Markets Fund - Institutional Class		1.25	%		1,000.00		1,013.70		0.38			1,022.63		2.26
Rational Real Strategies Fund - Class A		1.25	%		1,000.00		1,015.50		6.26			1,018.65		6.27
Rational Real Strategies Fund - Class C		2.00	%		1,000.00		1,013.60		8.76	+		1,016.16		8.77
Rational Real Strategies Fund - Institutional Class		1.00	%		1,000.00		1,017.13		5.02			1,019.89		5.02
Rational Defensive Growth Fund - Class A		1.25	%		1,000.00		1,005.90		7.48			1,017.40		7.52
Rational Defensive Growth Fund - Class C		1.75	%		1,000.00		1,025.80		1.93			1,013.67		11.27
Rational Defensive Growth Fund - Institutional Class		1.00	%		1,000.00		1,005.90		6.23			1,018.65		6.27
Rational Strategic Allocation Fund - Class A		0.70	%		1,000.00		1,016.60		6.27			1,018.65		6.27
Rational Strategic Allocation Fund - Class C		1.45	%		1,000.00		1,005.50		1.70	+		1,014.92		10.02
Rational Strategic Allocation Fund - Insitutional Class		0.45	%		1,000.00		1,016.70		5.01	+		1,019.89		5.02

Expenses are equal to the Funds’ annualized expense ratios multiplied by the average account value over the period, multiplied by 182/366 to reflect the one-half year period.

Annualized expense ratio does not include interest expenses or dividend expenses.

Multiplied by 31/366 to reflect inception May 31, 2016 through period end.

For more information on Fund expenses, please refer to the Funds’ prospectus, which can be obtained from your investment representative or by calling 1-866-447-4228. Please read it carefully before you invest or send money.

[This page intentionally left blank]

A copy of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in the Funds’ portfolios, as well as a record of how the Funds voted any such proxies during the most recent 12-month period ended June 30, is available without charge and upon request by calling 800-253-0412. This information is also available from the EDGAR database on the SEC’s website at www.sec.gov.

The Funds file with the SEC a complete schedule of their portfolio holdings, as of the close of the first and third quarters of their fiscal year, on “Form N-Q.” These filings are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (call 202-551-8090 for information on the operation of the Public Reference Room.).

Rational Advisors, Inc., serves as Investment Advisor to the Funds.

This report is authorized for distribution to prospective investors only when preceded or accompanied by a prospectus which contains facts concerning the Funds’ objectives and policies, management fees, expenses and other information.

Shareholder Services: 800-253-0412

Item 2.

Code of Ethics.

Not applicable.

Item 3.

Audit Committee Financial Expert.

Not applicable.

Item 4.

Principal Accountant Fees and Services.

Not applicable.

Item 5.

Audit Committee of Listed Registrants.

Not applicable.

Item 6.

Schedule of Investments.

See Item 1.

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10.

Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11.

Controls and Procedures.

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-2 under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing of this report on Form N-CSR.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12.

Exhibits.

(a)(1) Not applicable.

(a)(2) Certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 (and Item 11(a)(2) of Form N-CSR) are filed herewith.

(a)(3) Not applicable.

(b) Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 (and Item 11(b) of Form N-CSR) are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Mutual Fund and Variable Insurance Trust


By (Signature and Title)		/s/ Jerry Szilagyi
		Jerry Szilagyi, President and Principal Executive Officer

Date		9/8/16

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By (Signature and Title)		/s/ Jerry Szilagyi
		Jerry Szilagyi, President and Principal Executive Officer

Date		9/8/16


By (Signature and Title)		/s/ Erik Naviloff
		Erik Naviloff, Treasurer and Principal Financial Officer

Date		9/8/16

Mutual Fund & Variable Insurance Trust N-CSRSCertified semi-annual shareholder report (management investment company)