The Fund pursues its investment objective by principally investing in equity and fixed income securities pursuant to a variety of alternative investment strategies employed by Preserver Partners, LLC (the “Adviser”). In addition to the employment of alternative investment strategies, the Adviser may employ a long-only strategy involving the purchase of equity and fixed income securities that the Adviser believes are undervalued based on traditional fundamental analysis. At no time, however, will the long-only strategy be the only strategy employed to manage the Fund’s assets.

Permissible Investments.

Equity Securities. The equity securities in which the Fund primarily invests are common and preferred stock of U.S. issuers, similar securities issued by foreign issuers, American Depositary Receipts or “ADRs” relating to foreign issuers as well as the exchange-traded (including NASDAQ traded) common securities of master limited partnerships (each an “MLP”), business development companies (each a “BDC”) and real estate investment trusts (each a “REIT”) (collectively, “Equity Securities”). The Fund may invest in the Equity Securities of companies of all sizes.

Fixed Income Securities. The fixed income securities in which the Fund primarily invests are mortgage-backed securities (collateralized mortgage obligations, commercial mortgage-backed securities, residential mortgage-backed securities), corporate debt obligations, and asset-backed securities (collateralized loan obligations (each a “CLO”)) and loan participations) issued by U.S. issuers as well as U.S. government securities (“Fixed Income Securities” and collectively with Equity Securities, “Securities”). The Fund may invest in fixed or variable rate Fixed Income Securities across the credit and maturity spectrum including “junk bonds” which are Fixed Income Securities that are not rated in the top four rating categories of a nationally recognized statistical rating organization (“Investment Grade Securities”) or are unrated and not deemed to be of comparable quality to Investment Grade Securities by the Adviser.

Alternative Investment Strategies and Long-Only Investing. Alternative investment strategies are investment strategies that are not intended to correlate with the performance of the general equity and bond markets. The alternative investment strategies that the Adviser principally employs to manage the Fund’s portfolio are described in the following table. The alternative strategies included in the table are organized alphabetically and the order in which they are presented is not representative of the allocation of Fund assets to any one strategy.

Alternative Investment Strategies.

Fundamental Long-Only Strategy. In addition to the alternative investment strategies discussed above, the Adviser may employ a fundamental long-only strategy involving the purchase of Equity and Fixed Income Securities that the Adviser believes are undervalued based on traditional fundamental analysis. Traditional fundamental analysis includes the assessment of market-based factors such as the condition of the overall economy and industry-related economic data as well as issuer-specific factors such as financial condition, management and product/service offerings. Pursuant to this strategy, the Adviser may also invest Fund assets in U.S. Treasury securities or maintain a portion of Fund assets in cash to hedge/provide protection against a decline in the value of equity securities and/or the credit risk associated with fixed income securities held in the Fund’s portfolio.

Pooled Investment Vehicles. The Adviser may implement the alternative investment strategies described above by investing the Fund’s assets in the common securities of exchange-traded closed-end funds and exchange-traded funds (each an “ETF”) registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and the common securities issued by hedge funds, private investment funds exempt from registration as an investment company under the 1940 Act (each a, “Private Fund”).

Illiquid Securities. The Fund limits its investment in illiquid securities to 15% of the Fund’s net assets. The Fund intends to treat the CLOs, loan participations and Private Funds in which it invests as illiquid for purposes of the Fund’s limitation on illiquid investments.

Investment Process. The Adviser looks for long-term return potential over a full market cycle similar to that of a diversified liquid alternatives index. A full market cycle is a peak-to peak period that includes a recession and a price decline of at least 20% from the previous market peak, followed by a rebound that establishes a new, higher peak. The Adviser also searches for Equity and/or Fixed Income Securities with current income potential of greater than 2-3% for equity-focused strategies and greater than 6% for other strategies, lower volatility as compared to equity and fixed income markets, and liquidity.

In conducting its evaluation of potential portfolio securities, where applicable, the Adviser will look to invest in securities that meet its Environmental, Social and Governance (“ESG”) criteria. If the Adviser believes that the Fund’s ESG criteria are partially or wholly inapplicable to a certain class of portfolio securities, the Adviser may only apply certain of its ESG criteria, or none of its ESG criteria, as appropriate, to that class of securities.