The Fund’s investment adviser Advisors Preferred, LLC (the “Adviser”), delegates execution of the Fund’s investment strategy to Beaumont Capital Management, LLC (the “Sub-Adviser”). The Sub-Adviser seeks to achieve the Fund’s investment objective by using a tactical go-anywhere approach to invest in a wide variety of asset classes. The Fund primarily invests in exchange-traded funds (“ETFs”) that invest in an asset class. Additionally, the Fund may invest directly in equities, fixed income securities, foreign currencies, ETF-linked total return swaps, or index-linked total return swaps to achieve the portfolio’s desired exposure. The Sub-Adviser primarily selects securities representing the following asset classes:

The Fund’s portfolio may hold securities from issuers of any market capitalization, credit quality, maturity, country, or trading currency. Fixed income securities may include securities with credit quality below investment grade (commonly referred to as “junk bond” credit quality). The Fund defines junk bonds as those rated below Baa3 by Moody’s Investor Services, Inc. (“Moody’s”) or below BBB- by Standard and Poor’s Rating Group (“S&P”) or, if unrated, determined by the Sub-Adviser to be of similar credit quality. Foreign securities include issuers from emerging market countries.

The Sub-Adviser uses a proprietary predictive, quantitative, rules-based approach to assess risk (volatility) and reward for each asset class. This approach includes pattern recognition technology (PRT) to analyze the historical return and volatility data of each asset class and representative ETF. PRT seeks to identify repeating patterns within the return and volatility data that suggest a desirable distribution of potential returns over the next 25 trading days. The quantitative system algorithm ranks each ETF in its investment universe daily, based on the desirability of the patterns identified. Higher expected return and lower expected volatility are each considered more desirable. The Sub-Adviser uses these rankings seeking to create a portfolio, generally composed of at least ten ETFs, consisting primarily of ETFs that are highly ranked by the Sub-Adviser’s analysis. Between asset class representative ETFs with similar ranks, those with lower expenses and higher liquidity are preferred by the Sub-Adviser. The Sub-Adviser uses swaps as substitutes for underlying securities when it believes they are more cost effective. Similarly, the Sub-Adviser invests directly in equities, fixed income securities, and foreign currencies rather than ETFs when it believes they are more cost effective. The Sub-Adviser trades dynamically as market environments and opportunities change to create a portfolio that has overall loss risk and volatility within the Sub-Adviser’s assigned risk targets. This will lead to high portfolio turnover.

Conservative in the Fund’s name refers to the Sub-Adviser’s goal of designing a portfolio expected to produce returns within a pre-defined risk tolerance represented by a standard deviation of returns. The Sub-Adviser designates a conservative risk tolerance as a standard deviation of returns of approximately 4% - 7% annualized. The Sub-Adviser expects that the Fund’s standard deviation of returns will be similar over time to a blend of 20% global equities and 80% bonds.