BTS Tactical Fixed Income

Objective And Strategy

Objective
Seeks to provide total return.

Strategy
Flexible approach designed to move 100% of assets between three uncorrelated asset classes. High Yield when risk is on, thus seeking to capture equity exposure, Treasuries when risk is off, taking advantage of the flight to quality, or Cash if there is not a risk-on/risk-off opportunity, in an effort to preserve capital. The fund seeks to preserve capital, aims to offer downside protection and upside potential, and strives to reduce volatility while delivering consistent long-term returns.

Principal Risks

* This portfolio invests in securities of foreign issuers which involves risks not typically associated with domestic issuers, including currency fluctuations and the possibility of political and economic instability. Emerging markets involve risks in addition to those generally associated with foreign securities, because political and economic structures in many emerging markets may be undergoing significant evolution and rapid development.

* Certain portfolios are subject to active trading risk. (Some may derive a significant portion of their assets from investors who take part in certain strategic and tactical asset allocation programs). The frequent exchange of shares of the portfolio may cause the portfolio to experience high turnover. High portfolio turnover may result in the portfolio having to pay higher transaction costs and may negatively impact the portfolio manager's ability to achieve the investment objective of the portfolio.

* This portfolio invests its assets in underlying funds, thus the risks associated with investing in the portfolio are closely related to the risks associated with the securities and other investments held by the underlying funds. The ability of this portfolio to achieve its investment objective will depend on the ability of the underlying funds to achieve their investment objectives.

* Sovereign debt securities are subject to the risk that a government entity may delay or refuse to pay interest or repay principal on its sovereign debt.

* The risk that high yield securities and unrated securities of similar credit quality (commonly known as "junk bonds") are subject to greater levels of credit and liquidity risks. High yield securities are considered primarily speculative with respect to the issuer's continuing ability to make principal and interest payments.

* Each of the Funds and Adviser is a new enterprise with no operating history. Accordingly, an investment in a Fund entails a high degree of risk. There can be no assurance that the fund will achieve its investment objective notwithstanding the performance of any or all of the foregoing or their respective affiliates or principals in other transactions including, without limitation, arrangements similar in nature to either Fund.