Strategy. The Fund?s investment adviser, Advisors Preferred LLC (the ?Adviser?), delegates execution of the Fund?s investment strategy to the subadviser, Flexible Plan Investments, Ltd. (?FPI? or the ?Sub-Adviser?). The Sub-Adviser selects investments for the Fund and provides trade placement for fixed income instruments, including cash equivalents. The Adviser provides trade placement for non-fixed income instruments. The Sub-Adviser seeks to achieve the Fund?s investment objective by allocating its assets using two principal strategies: ? ?Managed Futures? Strategy ? ?Fixed Income? Strategy The Managed Futures Strategy is designed to produce capital appreciation by capturing returns related to price trends in the commodity futures markets and financial futures markets by investing primarily in securities of commodity pools that employ trend-based strategies. A commodity pool … Show more… The Fund?s investment adviser, Advisors Preferred LLC (the ?Adviser?), delegates execution of the Fund?s investment strategy to the subadviser, Flexible Plan Investments, Ltd. (?FPI? or the ?Sub-Adviser?). The Sub-Adviser selects investments for the Fund and provides trade placement for fixed income instruments, including cash equivalents. The Adviser provides trade placement for non-fixed income instruments. The Sub-Adviser seeks to achieve the Fund?s investment objective by allocating its assets using two principal strategies: ? ?Managed Futures? Strategy ? ?Fixed Income? Strategy The Managed Futures Strategy is designed to produce capital appreciation by capturing returns related to price trends in the commodity futures markets and financial futures markets by investing primarily in securities of commodity pools that employ trend-based strategies. A commodity pool is an investment vehicle where investors combine their money to have a manager trade in futures contracts. The Sub-Adviser selects commodity pools without restriction as to the country, currency or futures instruments held by a commodity pool; and considers expenses, past performance and management tenure when selecting commodity pools. The Sub-Adviser anticipates allocating Managed Futures Strategy assets primarily to commodity pools that are sponsored by the Eckhardt Trading Company. Eckhardt Trading Company is independent of the Fund, the Adviser and Sub-Adviser. The commodity pools? investments are drawn from over 60 exchange-traded futures contacts and consists of exposure to three sectors: (1) commodities (agriculture, energy, and metals), (2) financials (debt and equity), and (3) currencies. Certain key constituents of the futures market that are expected to be used by the commodity pools are as follows. Energy Livestock Grains Softs Metals Financials Currencies Natural Gas Cattle Soybeans Coffee Gold US Treasury Australian Dollar Crude Oil Hogs Wheat Cocoa Silver S&P 500 Index British Pound Corn Sugar Copper Euro The components may be positioned either long or short based on their short-term and medium-term price trends or such other indicators used by the futures manager of the respective commodity pool. The Fixed Income Strategy focuses on generating income and providing liquidity by selecting debt instruments, exchange-traded funds (?ETFs?), mutual funds, debt futures-focused commodity pools that each invest primarily in debt instruments and debt futures; as well as by selecting debt futures and total return swap contracts on debt instruments including ETFs and mutual funds that invest primarily in debt instruments. The Fund invests in ETFs, mutual funds, and debt futures-focused commodity pools that are not affiliated with the Adviser or Sub-Adviser. The Fund uses futures contracts, swaps, and debt futures-focused commodity pools as substitutes for debt instruments, when the Sub-Adviser determines they are more economically efficient. The underlying income-producing securities in which the Fund invests primarily include: (i) U.S. government securities, (ii) corporate debt obligations (including convertible bonds, (iii) foreign debt securities (including emerging markets), (iv) asset-backed securities (?ABS?), and (v) mortgage-backed securities (?MBS?). The Fund invests without any restriction on maturity or credit quality, including in high-yield debt (commonly known as ?junk bonds?). The Fund may gain long or short exposure to debt instruments by using inverse and/or leveraged ETFs and mutual funds, debt futures-focused commodity pools, and swaps; regardless of whether they generate income. Short (inverse) positions are designed to profit from a decline in the price of particular securities, investments in securities or indices. The Fund employs inverse and short positions for hedging purposes or to capture returns in down markets. The Sub-Adviser seeks interest income from debt instruments. Additionally, the Sub-Adviser seeks capital gains by changing asset allocations between debt sectors as well as by utilizing short position exposure. The Sub-Adviser uses a tactical management strategy that factors in inherent leverage in investment instruments and this tactical approach typically results in high portfolio turnover. Tactical investing requires making frequent adjustments to the asset allocation based on market conditions and opportunities. The Sub-Adviser monitors allocations frequently and may trade daily. The Sub-Adviser anticipates that, based upon its analysis of long-term historical returns and volatility of various asset classes, the Fund will allocate approximately 25% of its assets to the Managed Futures Strategy and approximately 75% of its assets to the Fixed Income Strategy. As a non-diversified fund, the Fund may invest more than 5% of its total assets in the securities of one or more issuers. The Fund invests up to 25% of its total assets in a wholly owned and controlled subsidiary (the ?Subsidiary?). The Subsidiary is expected to provide the Fund with indirect exposure to certain futures contracts within the limitations of the federal tax requirements of Subchapter M of the Internal Revenue Code of 1986, as amended (the ?Code?). The Subsidiary will invest primarily in commodity pools. The Subsidiary, when viewed from a consolidated basis, is subject to the same investment restrictions as the Fund. Show less