Fideicomiso de Fondos Líder del Formulario 497

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Fondo de bonos de corta duración líder

Acciones Institucionales:	LCCIX
Acciones del inversor:	LCCMX
Acciones de clase A:	LCAMX
Acciones de clase C:	LCMCX

Fondo de retorno total líder

Acciones Institucionales:	LCTIX
Acciones del inversor:	LCTRX
Acciones de clase A:	LCATX
Acciones de clase C:	LCCTX

Fondo de tasa flotante líder

Acciones Institucionales:	LFIFX
Acciones del inversor:	LFVFX

FOLLETO

1 de octubre de 2019

					Asesorado por:
					Leader Capital Corp.
					315 W. Mill Plain Blvd.
					Suite 204
					Vancouver, WA 98660


	1-800-711-9164				www.leadercapital.com

Este Folleto proporciona información importante.
sobre los fondos que debe conocer antes de invertir. Léalo detenidamente y guárdelo para futuras referencias.

Estos valores no han sido aprobados o desaprobados
por la Comisión de Bolsa y Valores de EE. UU. ni la Comisión de Bolsa y Valores de EE. UU. ha aprobado la precisión o
adecuación de este Folleto. Cualquier representación en contrario es un delito penal.

NOTA IMPORTANTE: a partir del 1 de enero de 2021,
según lo permitido por las regulaciones adoptadas por la Comisión de Bolsa y Valores de EE. UU., copias en papel del accionista de los fondos
los informes ya no se enviarán por correo, a menos que solicite específicamente copias en papel de los informes del fondo o de su
intermediario financiero, como un corredor de bolsa o banco. En cambio, los informes estarán disponibles en un sitio web, y usted
recibir una notificación por correo cada vez que se publique un informe y se le proporcione un enlace al sitio web para acceder al informe.

Si ya eligió recibir accionista
informa electrónicamente, no se verá afectado por este cambio y no necesita tomar ninguna medida. Puede elegir recibir accionista
informes y otras comunicaciones del fondo o de su intermediario financiero electrónicamente llamando o enviando una solicitud por correo electrónico.

Puede elegir recibir todos los informes futuros
en papel sin cargo. Puede informar al fondo o a su intermediario financiero que desea continuar recibiendo copias en papel
de sus informes de accionistas llamando o enviando una solicitud por correo electrónico. Su elección para recibir informes en papel se aplicará a todos
Fondos mantenidos con el complejo del Fondo / su intermediario financiero.

mesa
de contenidos

RESUMEN DEL FONDO DE BONOS DE CORTA DURACIÓN LÍDER	1
RESUMEN DEL FONDO TOTAL DE DEVOLUCIONES DEL LÍDER	8
RESUMEN DEL FONDO DE TASA FLOTANTE LÍDER	14
INFORMACIÓN ADICIONAL SOBRE LAS PRINCIPALES ESTRATEGIAS DE INVERSIÓN Y RIESGOS RELACIONADOS	19
ADMINISTRACIÓN	31
CÓMO SE VALORAN LAS ACCIONES	32
CÓMO COMPRAR ACCIONES	33
CÓMO CANJEAR ACCIONES	36
COMPRAS Y CANCELACIONES FRECUENTES DE ACCIONES DE FONDO	38
ESTADO FISCAL, DIVIDENDOS Y DISTRIBUCIONES	39
DISTRIBUCIÓN DE ACCIONES	40
ASPECTOS FINANCIEROS MÁS DESTACADOS	41
*AVISO DE PRIVACIDAD*	51

RESUMEN DEL FONDO DE BONOS DE CORTA DURACIÓN LÍDER

Objetivos de inversión: La inversión primaria
El objetivo del Leader Short Duration Bond Fund (el “Fondo”) es entregar un alto nivel de ingresos actuales, con un
objetivo secundario de apreciación del capital.

Honorarios y gastos del fondo: los
La siguiente tabla describe los honorarios y gastos que puede pagar si compra y mantiene acciones del Fondo. Puede calificar para ventas
cobrar descuentos en compras de acciones de Clase A si usted y su familia invierten, o acuerdan invertir en el futuro, al menos $ 50,000
en el fondo. Puede obtener más información sobre estos descuentos en los cargos de ventas y otros descuentos de su profesional financiero
y en la seccion Cómo comprar acciones del Folleto del Fondo y en la sección
Compra, reembolso y fijación de precios de acciones de la Declaración de fondos del Fondo
Información.

Honorarios de accionistas (honorarios pagados directamente de su inversión)	Institucional Comparte	Inversor Comparte	Clase A Comparte	Clase C Comparte
Cargo máximo de venta (carga) impuesto a las compras (como% del precio de oferta)	Ninguna	Ninguna	1,50%	Ninguna
Cargo máximo por ventas diferidas (carga) (como% del precio de compra más bajo o la redención procede)⁽¹⁾	Ninguna	Ninguna	Ninguna	1,00%
Cargo máximo de venta (carga) impuesto sobre Dividendos reinvertidos y otras distribuciones	Ninguna	Ninguna	Ninguna	Ninguna
Tarifa de canje (como porcentaje de la cantidad canjeada)	Ninguna	Ninguna	Ninguna	Ninguna
Gastos operativos anuales del fondo (gastos que paga cada año como porcentaje del valor de su inversión)⁽²⁾
Los gastos de gestión	0,75%	0,75%	0,75%	0,75%
Distribución y / o servicio (12b-1) Tarifas	Ninguna	0,50%	0,50%	1,00%
Otros gastos	0,55%	0,56%	0,56%	0,56%
Intereses y dividendos sobre valores vendidos en corto	0,13%	0,13%	0,13%	0,13%
Resto de otros gastos	0,42%	0,43%	0,43%	0,43%
Honorarios y gastos del fondo adquirido⁽³⁾	0.02%	0.02%	0.02%	0.02%
Gastos operativos totales del fondo anual	1,32%	1,83%	1,83%	2,33%

(1)

Un cargo por ventas diferidas contingentes de 1.00%
se aplica a ciertos canjes realizados dentro de los 12 meses posteriores a la fecha de compra.

(2)

El Fondo es el sucesor del Líder.
Fondo de Bonos de Duración Corta (el "Fondo de Duración Corta Predecesor"), una serie de Northern Lights Fund Trust, que fue
reorganizado en el Fondo el 15 de julio de 2019.

(3)

Los honorarios y gastos del fondo adquirido son los
costos indirectos de invertir en otras compañías de inversión. Los gastos operativos en esta tabla de tarifas no se correlacionan con los gastos.
ratio en los aspectos financieros destacados del Fondo porque los aspectos financieros destacados incluyen solo los gastos operativos directos incurridos
por el Fondo.

Ejemplo: Este ejemplo está destinado
para ayudarlo a comparar el costo de invertir en el Fondo con el costo de invertir en otros fondos mutuos.

El ejemplo supone que invierte $ 10,000
en el Fondo por los períodos de tiempo indicados y luego canjear todas sus acciones al final de esos períodos. El ejemplo también supone
que su inversión tiene un rendimiento del 5% cada año y que los gastos operativos del Fondo siguen siendo los mismos. Aunque tu real
los costos pueden ser mayores o menores, según estos supuestos, sus costos serían:

Clase	1 año	3 años	5 años	10 años
Acciones Institucionales	$ 134	$ 418	$ 723	$ 1,590
Acciones de inversionistas	$ 186	$ 576	$ 990	$ 2,148
Acciones de clase A	$ 333	$ 717	$ 1,125	$ 2,266
Acciones de clase C	$ 336	$ 727	$ 1,245	$ 2,666

Volumen de negocios de la cartera: El Fondo paga la transacción
costos, como las comisiones, cuando compra y vende valores (o "entrega" su cartera). Una mayor rotación de cartera
puede indicar costos de transacción más altos y puede generar impuestos más altos cuando las acciones del Fondo se mantienen en una cuenta sujeta a impuestos. Estos costos,
que no se reflejan en los gastos operativos anuales del fondo o en el Ejemplo, afectan el rendimiento del Fondo. Durante la mayoría
reciente año fiscal, la tasa de rotación de la cartera del Fondo de corta duración del predecesor fue del 496,37% del valor promedio de su
portafolio.

Principales estrategias de inversión: los
El Fondo espera alcanzar sus objetivos invirtiendo en una cartera de títulos de deuda con grado de inversión y sin grado de inversión
(también conocidos como "bonos basura") títulos de deuda, tanto nacionales como extranjeros, incluidos los mercados emergentes. El fondo define
emisores de mercados emergentes como los que se encuentran fuera de Norteamérica, Europa, Japón, Australia y Nueva Zelanda. Valores de renta fija
en los cuales el Fondo puede invertir incluyen bonos extranjeros y nacionales, pagarés, deuda corporativa, valores de deuda convertibles, preferentes
valores, valores del gobierno estadounidense y extranjero, valores municipales nacionales, valores respaldados por activos (préstamos y créditos respaldados
valores, incluidas las obligaciones de préstamos garantizados ("CLO"), valores solo de interés y STRIPS (operaciones separadas)
de interés registrado y principal de valores, un tipo de instrumento de deuda de cupón cero). El promedio efectivo del Fondo
La duración de las inversiones de su cartera será normalmente de tres años o menos. El Fondo también puede mantener efectivo o equivalentes de efectivo, y
Puede celebrar acuerdos de recompra. Leader Capital Corp. (el "Asesor") utiliza un análisis fundamental de arriba hacia abajo,
lo que significa que el Asesor analiza la economía, los ciclos de tasas de interés, la oferta y la demanda de crédito y las características individuales
valores al hacer selecciones de inversión.

Normalmente, el Fondo invertirá al menos el 80%
de sus activos netos (incluidos los préstamos para fines de inversión) en valores de renta fija. El fondo puede invertir hasta el 40%
de sus activos en bonos de baja calidad y alto rendimiento con calificación B o superior por Moody’s Investors Service, Standard & Poor’s
Ratings Group, Fitch Ratings, Inc. u otra Organización Nacional de Calificación Estadística Reconocida (“NRSRO”) o, si no está calificado
por dichas NRSRO, determinadas por el Asesor como de calidad comparable. El Fondo puede invertir hasta el 20% de sus activos, determinado
en el momento de la inversión, en valores de renta fija extranjera denominados en moneda extranjera. Valores de renta fija extranjera
puede ser de grado de inversión, inferior al grado de inversión o no calificado. El Fondo puede invertir en valores del Gobierno del Tesoro de EE. UU. Con
sin límite. El Fondo puede usar opciones y swaps de incumplimiento crediticio para gestionar el riesgo de inversión.

El Fondo también puede vender acciones de capital en corto
al 20% de los activos del Fondo. El Asesor considerará reducir el stock de emisores en los que el Fondo posee una posición en
los valores de deuda convertibles del mismo emisor. Al seguir su estrategia corta, el Asesor busca aprovechar tácticamente
de la relación de precios entre las acciones de un emisor y sus valores convertibles.

El Fondo puede invertir hasta el 20% de sus activos.
en valores de tasa variable y variable, efectivo, equivalentes de efectivo y valores de renta fija distintos a los descritos anteriormente. los
El fondo también puede invertir en otros fondos mutuos que inviertan principalmente en valores de tasa variable, incluidos los fondos que también se recomiendan
por el asesor. Al conservar algo de efectivo o equivalentes de efectivo, el Fondo puede evitar obtener ganancias y pérdidas por la venta de inversiones
cuando hay canjes de accionistas. Sin embargo, el Fondo puede tener dificultades para cumplir sus objetivos de inversión cuando mantiene un
Posición de efectivo significativa.

El asesor considerará una tasa variable o variable
seguridad para tener un vencimiento igual a su vencimiento establecido (o fecha de redención si se ha solicitado redención), excepto que
puede considerar: (1) valores de tasa variable que tengan un vencimiento igual al período restante hasta el próximo reajuste en el
tasa de interés, a menos que esté sujeto a una función de demanda; (2) valores de tasa variable sujetos a una función de demanda para tener un
vencimiento restante igual al mayor de (a) el siguiente reajuste en la tasa de interés o (b) el período restante hasta el
el principal puede recuperarse a través de la demanda; y (3) valores de tasa variable sujetos a una característica de demanda para tener un vencimiento
igual al período restante hasta que el principal pueda recuperarse a través de la demanda.

El Asesor puede vender un valor si su valor
se vuelve poco atractivo, como cuando sus fundamentos se deterioran o cuando existen otras oportunidades de inversión que pueden tener más
rendimientos atractivos. El Asesor puede participar en la compra y venta frecuente de valores para lograr el objetivo de inversión del Fondo.

Principales riesgos de inversión: Como con todo
fondos mutuos, existe el riesgo de que pueda perder dinero a través de su inversión en el Fondo.

Riesgo de fondo afiliado. Inversiones
en otras compañías de inversión, incluido un fondo afiliado, están sujetas a tarifas de asesoramiento de inversión y otros gastos, que
será pagado indirectamente por el Fondo. Como resultado, el costo de invertir en el Fondo será mayor que el costo de invertir directamente
en un fondo afiliado y puede ser más alto que otros fondos mutuos que invierten directamente en acciones y bonos. El asesor puede recibir
gestión u otros honorarios de un fondo afiliado en el que el Fondo puede invertir. Es posible que un conflicto de intereses entre
el Fondo y un fondo afiliado podrían afectar la forma en que el Asesor cumple con sus deberes fiduciarios para el Fondo y un fondo afiliado.

Riesgo respaldado por activos. La tasa predeterminada
los préstamos de activos subyacentes pueden ser más altos de lo previsto, lo que podría reducir los pagos al Fondo. Las tasas predeterminadas son sensibles
a condiciones económicas generales como el desempleo, los niveles salariales y las tasas de crecimiento económico.

Riesgo de obligación de préstamo colateralizado.
Los CLO son valores respaldados por una cartera subyacente de obligaciones de deuda y préstamo, respectivamente. Las CLO emiten clases o "tramos"
que varían en riesgo y rendimiento y pueden experimentar pérdidas sustanciales debido a incumplimientos reales, disminución del valor de mercado debido a garantías
incumplimientos y eliminación de tramos subordinados, anticipación del mercado de incumplimientos y aversión de los inversores a los valores de CLO como clase.
Los riesgos de invertir en CLO dependen en gran medida del tramo invertido y del tipo de deudas y préstamos subyacentes en el
tramo del CLO, respectivamente, en el que invierte el Fondo. Las CLO también conllevan riesgos que incluyen, entre otros, la tasa de interés
riesgo y riesgo crediticio.

Riesgo de valores de deuda convertible. Convertible
Los títulos de deuda someten al Fondo a los riesgos asociados tanto con los títulos de renta fija como con los títulos de renta variable. Si un convertible
El valor de la inversión en seguridad de la deuda es mayor que su valor de conversión, su precio probablemente aumentará cuando las tasas de interés
caen y disminuyen cuando suben las tasas de interés. Si el valor de conversión excede el valor de inversión, el precio del convertible
La seguridad de la deuda tenderá a fluctuar directamente con el precio de la seguridad de capital subyacente.

Riesgo de swap de incumplimiento crediticio. Los CDS son
típicamente contratos financieros de dos partes que transfieren la exposición crediticia entre las dos partes. Bajo un CDS típico, una de las partes (el
"Vendedor") recibe pagos periódicos predeterminados de la otra parte (el "comprador"). El vendedor acepta
para hacer pagos compensatorios específicos al comprador si ocurre un evento de crédito negativo, como la bancarrota o el incumplimiento por parte del
emisor del instrumento de deuda subyacente. El uso de CDS implica técnicas de inversión y riesgos diferentes a los asociados.
con transacciones de seguridad de cartera ordinarias, como riesgos de contraparte, concentración y exposición potencialmente elevados.

Riesgo crediticio. El emisor de un fijo
es posible que la seguridad de ingresos no pueda hacer pagos de intereses o capital cuando vencen. En general, cuanto menor es la calificación crediticia de un valor,
cuanto mayor es el riesgo de que el emisor incumpla su obligación. Riesgos de crédito asociados con valores de tasa de subasta ("ARS")
reflejar las de otras emisiones de bonos en términos de riesgo de incumplimiento asociado con los emisores. Debido a que el ARS no tiene una función de venta
permitiendo que el tenedor de bonos requiera la compra de los bonos por parte del emisor o un tercero, son muy sensibles a los cambios
en calificaciones crediticias y normalmente requieren las calificaciones más altas (por ejemplo, AAA / Aaa) para que sean comercializables.

Riesgo de cambio. Comercio de divisas
Los riesgos incluyen riesgo de mercado, riesgo de crédito y riesgo país. El riesgo de mercado resulta de cambios adversos en los tipos de cambio en las monedas.
en el que el Fondo es largo o corto. El riesgo de crédito se produce porque una contraparte de comercio de divisas puede incumplir. Surge el riesgo país
porque un gobierno puede interferir con las transacciones en su moneda.

Riesgo de derivados. Al escribir opciones de compra y venta,
el Fondo está expuesto a disminuciones en el valor del activo subyacente contra el cual se suscribió la opción. En la medida requerida,
el Fondo cubrirá la exposición financiera creada escribiendo opciones de venta y compra comprando o vendiendo opciones de compensación
o futuros o designando activos líquidos para cubrir dicha exposición financiera. Al comprar opciones, el Fondo está expuesto al potencial
pérdida del precio de compra de la opción. Los derivados pueden ser ilíquidos y el mercado de derivados no está regulado en gran medida. El uso de
Los derivados pueden no ser siempre una estrategia exitosa y su uso podría reducir el rendimiento del Fondo.

Riesgo de mercados emergentes. El Fondo puede invertir en países.
con mercados de valores recién organizados o menos desarrollados. En general, las estructuras económicas en estos países son menos diversas y
maduros que los de los países desarrollados y sus sistemas políticos tienden a ser menos estables. Las economías de mercado emergentes pueden estar basadas
en solo unas pocas industrias, por lo tanto, los emisores de seguridad, incluidos los gobiernos, pueden ser más susceptibles a la debilidad económica y más
probable de incumplimiento. Los países de mercados emergentes también pueden tener gobiernos relativamente inestables, economías más débiles y países menos desarrollados.
sistemas legales con menos derechos de titular de seguridad.

Riesgo extranjero. Las inversiones extranjeras implican adicional
Riesgos que generalmente no están asociados con la inversión en valores del gobierno de los EE. UU. y / o valores de compañías nacionales, incluyendo
fluctuaciones del tipo de cambio, inestabilidad política y económica, diferencias en los estándares de información financiera y una regulación menos estricta
de los mercados de valores. La retirada del Reino Unido de la Unión Europea (el llamado Brexit) puede crear una mayor economía
incertidumbre para los emisores de deuda europeos e impacta negativamente en su calidad crediticia. Los valores sujetos a estos riesgos pueden ser menores
líquido que los que no están sujetos a estos riesgos.

Riesgo de valores gubernamentales. Es posible que el
El gobierno de los EE. UU. No proporcionaría apoyo financiero a sus agencias o instrumentos si la ley no lo requiere.
Si una agencia o instrumento del gobierno de los EE. UU. En el que el Fondo invierte incumplimientos y el gobierno de los EE. UU. No respalda
la obligación, el precio de la acción o el rendimiento del Fondo podría caer. Valores de entidades patrocinadas por el gobierno de EE. UU., Como Freddie
Mac o Fannie Mae, no son emitidos ni garantizados por el gobierno de los EE. UU. La garantía del gobierno de EE. UU.
el pago del principal y el pago oportuno de los intereses de los valores del Gobierno de los EE. UU. que son propiedad del Fondo no implica que el
Las acciones del Fondo están garantizadas por la Corporación Federal de Seguro de Depósitos o cualquier otra agencia gubernamental, o que el precio
de las acciones del Fondo no fluctuará.

Riesgo de bonos de alto rendimiento. Bonos de baja calidad, conocidos
como bonos de alto rendimiento o "bonos basura", presentan un riesgo significativo de pérdida de capital e intereses. Estos bonos ofrecen
el potencial de un mayor rendimiento, pero también implica un mayor riesgo que los bonos de mayor calidad, incluida una mayor posibilidad
que el emisor, el deudor o el garante del bono no pueden realizar sus pagos de intereses y capital (calidad crediticia
riesgo). Si eso sucede, el valor del bono puede disminuir, y el precio de las acciones del Fondo puede disminuir y su distribución de ingresos
puede ser reducido Una recesión económica o un período de aumento de las tasas de interés (riesgo de tasa de interés) podría afectar negativamente al mercado
para estos bonos y reducir la capacidad del Fondo para vender sus bonos (riesgo de liquidez). La falta de un mercado líquido para estos bonos.
podría disminuir el precio de las acciones del Fondo. La capacidad de los gobiernos para pagar sus obligaciones se ve afectada negativamente por incumplimiento,
insolvencia, quiebra o inestabilidad política, incluida la participación autoritaria y / o militar en la toma de decisiones gubernamentales,
conflicto armado, guerra civil, inestabilidad social y el impacto de estos eventos y circunstancias en la economía de un país y
los ingresos de su gobierno. Por lo tanto, los bonos del gobierno pueden presentar un riesgo significativo. Los gobiernos también pueden repudiar sus
deudas a pesar de su capacidad de pago. La capacidad del Fondo para recuperarse de un gobierno en incumplimiento es limitada porque eso
el mismo gobierno puede bloquear el acceso a los recursos legales exigidos por el tribunal u otros medios de recuperación.

Riesgo de valores solo de interés. Ciertos valores,
denominados "valores de interés solamente" implican una mayor incertidumbre con respecto al retorno de la inversión. Solo un interés
la seguridad no tiene derecho a ningún pago principal. Si los activos de la hipoteca en un grupo prepago o impago a tasas rápidas, puede reducir
la cantidad de interés disponible para pagar un valor relacionado solo de interés y puede causar que un inversionista en ese interés solo garantice
no recuperar la inversión inicial del inversor.

Riesgo de tipo de interés. El valor del Fondo puede fluctuar.
basado en cambios en las tasas de interés y las condiciones del mercado. A medida que aumentan las tasas de interés, el valor de los instrumentos que generan ingresos puede
disminución. Este riesgo aumenta a medida que aumenta el plazo de la nota. Los ingresos obtenidos de valores de tasa variable o variable variarán
a medida que las tasas de interés disminuyen o aumentan. Sin embargo, las tasas de interés en valores de tasa variable, así como ciertas tasas de interés variable
los valores cuyas tasas de interés se restablecen solo periódicamente, pueden fluctuar en valor como resultado de cambios en las tasas de interés cuando hay
es una correlación imperfecta entre las tasas de interés de los valores y las tasas de interés del mercado prevalecientes.

Riesgo específico del emisor. El valor de una seguridad específica.
puede ser más volátil que el mercado en su conjunto y puede funcionar de manera diferente al valor del mercado en su conjunto.

Riesgo de cambio legislativo. Los valores municipales son
sujeto al riesgo de que los cambios legislativos y los desarrollos locales y comerciales puedan afectar negativamente el rendimiento o el valor del
Las inversiones del fondo en dichos valores.

Riesgo de liquidez. Algunos valores pueden tener pocos creadores de mercado
y bajo volumen de negociación, que tiende a aumentar los costos de transacción y puede dificultar que el Fondo disponga de una garantía
en absoluto o a un precio que represente el valor de mercado actual o justo.

Riesgo de gestión. La estrategia utilizada por el asesor
puede no producir los resultados previstos. La capacidad del Fondo para cumplir sus objetivos de inversión está directamente relacionada con la
Estrategias de inversión del asesor para el Fondo. Su inversión en el Fondo varía con la efectividad del Asesor
investigación, análisis y asignación de activos entre valores de cartera. Si las estrategias de inversión del Asesor no producen
Los resultados esperados, su inversión podría verse disminuida o incluso perdida.

Riesgo de mercado. Los riesgos generales del mercado de renta fija pueden
afectar el valor de los valores individuales en los que invierte el Fondo. Factores como los niveles de tasa de interés global, el crecimiento económico,
Las condiciones del mercado y los acontecimientos políticos afectan los mercados de valores de renta fija. Cuando el valor de las inversiones del Fondo
disminuye, su inversión en el Fondo disminuye en valor y podría perder dinero.

Riesgo de valores municipales. El valor de municipal
los bonos que dependen de una fuente de ingresos específica o de una fuente de ingresos general para financiar sus obligaciones de pago pueden fluctuar como resultado
de cambios en los flujos de efectivo generados por la (s) fuente (s) de ingresos o cambios en la prioridad de la obligación municipal de recibir
Los flujos de efectivo generados por las fuentes de ingresos. Además, los cambios en las leyes fiscales federales o la actividad de un emisor pueden afectar negativamente
afectar el estado exento de impuestos de los bonos municipales. Las inversiones en valores de tasa flotante inversa generalmente implican un mayor riesgo
que las inversiones en bonos municipales de vencimiento comparable y calidad crediticia y sus valores son más volátiles que los municipales
bonos debido al apalancamiento que conllevan.

portafolio
Riesgo de rotación. La frecuencia de las transacciones del Fondo variará de año en año. El aumento de la rotación de la cartera puede
dar lugar a mayores comisiones de corretaje, márgenes de beneficio del distribuidor y otros costos de transacción y puede generar ganancias de capital imponibles. Mayor
los costos asociados con una mayor rotación de la cartera pueden compensar las ganancias en el rendimiento del Fondo. Rotación
aumentó a medida que el Fondo realizó cambios estratégicos en la asignación de cartera para aprovechar el panorama cambiante de las tasas de interés
y para abordar un aumento en la actividad de participación de capital. los
Se espera que la rotación de la cartera del Fondo sea superior al 100% anual, ya que el Fondo se negocia activamente.

Riesgo de seguridad preferido. El valor
de los valores preferidos fluctuará con los cambios en las tasas de interés. Por lo general, un aumento en las tasas de interés provoca una disminución en
El valor de las acciones preferentes. Los valores preferentes también están sujetos al riesgo de crédito, que es la posibilidad de que un emisor de
las acciones preferentes no realizarán sus pagos de dividendos.

Riesgo del acuerdo de recompra. El fondo
puede celebrar acuerdos de recompra en los que compra un valor (conocido como "valor subyacente") de un valor
concesionario o banco. En caso de quiebra u otro incumplimiento por parte del vendedor de un acuerdo de recompra, el Fondo podría experimentar
retrasos en la liquidación del valor subyacente y pérdidas en caso de una disminución en el valor del valor subyacente mientras
el Fondo busca hacer valer sus derechos en virtud del acuerdo de recompra.

Riesgo de venta corta. Si se vendió un valor
incrementos en el precio a corto u otro instrumento, el Fondo puede tener que cubrir su posición corta a un precio más alto que la venta en corto
precio, lo que resulta en una pérdida. Es posible que el Fondo no pueda implementar con éxito su estrategia de venta corta debido a la disponibilidad limitada
de valores deseados o por otras razones.

TIRAS Riesgo. Las TIRAS son un tipo de
Bono de cupón cero. Los bonos de cupón cero no hacen pagos periódicos de intereses. En cambio, se venden con un descuento de su cara
valor y pueden canjearse a su valor nominal cuando maduren. El valor de mercado de un bono de cupón cero es generalmente más volátil que
El valor de mercado de otros valores de renta fija con vencimientos similares que hacen pagos periódicos de intereses. Bonos de cupón cero
También puede responder a los cambios en las tasas de interés en mayor medida que otros valores de renta fija con vencimientos similares y
Calidad crediticia.

Valores de tasa variable y variable
Riesgo. Los valores de tasa variable y variable pueden disminuir en valor si las tasas de interés de mercado o las tasas de interés pagadas por ellos lo hacen
No moverse como se esperaba. Por el contrario, los valores de tasa variable y variable generalmente no aumentarán de valor si las tasas de interés del mercado
disminución. Los valores de tasa variable y variable pueden estar sujetos a un mayor riesgo de liquidez que otros valores de deuda, lo que significa que
puede haber limitaciones en la capacidad del Fondo para vender los valores en un momento dado. Cierta tasa variable y variable
los valores tienen una característica de piso de tasa de interés, que evita que la tasa de interés pagadera por el valor caiga por debajo de
nivel especificado en comparación con una tasa de interés de referencia (la "tasa de referencia"), como LIBOR. Tal piso protege
el Fondo por pérdidas resultantes de una disminución en la tasa de referencia por debajo del nivel especificado. Sin embargo, si la tasa de referencia
está debajo del piso, habrá un desfase entre un aumento en la tasa de referencia y un aumento en la tasa de interés pagadera por el valor,
y el Fondo puede no beneficiarse del aumento de las tasas de interés durante un período de tiempo significativo.

Actuación: El Fondo adquirió los activos.
y pasivos del Fondo de corta duración del predecesor el 15 de julio de 2019. Como resultado de la reorganización, el Fondo es la contabilidad
Sucesor del Fondo de corta duración del predecesor. Los resultados de rendimiento que se muestran en el gráfico de barras y la tabla de rendimiento a continuación reflejan
el rendimiento de la clase de acciones del inversor del Fondo de corta duración del predecesor. El gráfico de barras y la tabla a continuación proporcionan
alguna indicación de los riesgos de invertir en el Fondo y el Fondo de corta duración del predecesor. El gráfico de barras muestra los rendimientos anuales.
de la Clase de Inversionista del Fondo Predecesor de Duración Corta de acciones para cada año calendario desde el Predecesor Corto
Duración del inicio del Fondo. Los rendimientos de las otras Clases de acciones del Fondo de corta duración del predecesor serían sustancialmente
similar porque las acciones se invierten en la misma cartera de valores y los rendimientos anuales diferirían solo en la medida
que las Clases no tienen los mismos gastos. La tabla de rendimiento compara el rendimiento del precursor de corta duración
Las acciones del Fondo a lo largo del tiempo para el desempeño del BofA Merrill Lynch 1-3 Year Government / Corporate Index. El predecesor
El rendimiento pasado del Fondo de corta duración, antes y después de impuestos, no es necesariamente una indicación de cómo funcionará el Fondo
en el futuro. La información de rendimiento actualizada está disponible sin costo visitando www.leadercapital.com o llamando al (800) 711-9164.

Clase de inversionista

Devoluciones del año calendario a partir de diciembre
31

Mejor barrio:	30/06/2009	11,12%
Peor trimestre	30/09/2011	(4,86)%

Las acciones de la clase de inversores del Fondo tenían un
rendimiento total de 2.04% durante el período del 1 de enero de 2019 al 30 de junio de 2019.

Rendimientos totales anuales promedio

(Para los períodos terminados el 31 de diciembre,
2018)

	Un año	Cinco años	Diez años	Desde el inicio*
Clase de inversionista antes de impuestos	2,34%	0,16%	2,21%	2,34% *
Retorno de clase de inversor después de impuestos sobre distribuciones	1,15%	(0,89%)	1,15%	1,12% *
Retorno de clase de inversor después de impuestos sobre distribuciones y venta de acciones del fondo	1,38%	(0,34%)	1,27%	1,32% *
Declaración de clase institucional antes de impuestos	2,86%	0,73%	3,45%	3.71% **
Devolución de clase A antes de impuestos	0,64%	(0,66%)	N / A	0,85% ***
Declaración de clase C antes de impuestos	1,95%	(0.27%)	N / A	0,91% ****
BofA Merrill Lynch 1-3 años Índice gubernamental / corporativo +	1,64%	1,04%	1,56%	2,39% *

* *

La fecha de inicio de la clase de inversores fue el 14 de julio de 2005.

** **

La fecha de inicio de la Clase Institucional fue el 31 de octubre de 2008.

***

La fecha de inicio de la Clase A fue el 21 de marzo de 2012.

****

La fecha de inicio de la Clase C fue el 8 de agosto de 2012.

Después de que las declaraciones de impuestos se calculan utilizando el historial
tasas impositivas federales de ingreso marginal más altas individuales y no reflejan el efecto de los impuestos estatales y locales. Declaraciones reales después de impuestos
dependen de la situación fiscal de un inversor y pueden diferir de las mostradas, y las declaraciones después de impuestos que se muestran no son relevantes para los inversores
que poseen acciones del Fondo a través de acuerdos con impuestos diferidos, como planes 401 (k) o cuentas de jubilación individuales ("IRA").
Las declaraciones después de impuestos se muestran solo para las acciones de la clase Investor, y las declaraciones después de impuestos para otras clases variarán.

+ BofA Merrill Lynch 1-3 años Gobierno / Corporativo
Index es un índice que rastrea valores corporativos y del gobierno de EE. UU. A corto plazo con vencimientos entre 1 y 2,99 años. El índice
es producido por BofA Merrill Lynch. El índice no refleja la deducción de tarifas, gastos o impuestos que los inversores de fondos mutuos
oso. A diferencia de un fondo mutuo, un índice no refleja ningún costo de negociación o comisión de gestión. Los inversores no pueden invertir directamente en
un índice.

Asesor de inversiones: Leader Capital Corp.
es el asesor de inversiones del Fondo.

Asesor de inversiones Gerente de cartera: John
E. Lekas, fundador de Leader Capital Corp., ha sido gerente de cartera del Fondo y predecesor del Fondo de corta duración
desde que comenzó a operar en julio de 2005.

Compra y venta de acciones del fondo: por
Acciones de Clase Institucional, el monto mínimo de inversión inicial para una cuenta es de $ 2,000,000. No hay mínimo para posteriores
inversiones. Para las acciones de Clase Inversionista, Clase A y Clase C, el monto mínimo de inversión inicial para todas las cuentas (incluyendo
IRA) es de $ 2,500 y la inversión posterior mínima es de $ 100. Puede comprar y canjear acciones del Fondo cualquier día que el
La Bolsa de Nueva York está abierta. Las solicitudes de reembolso pueden hacerse por escrito, por teléfono o a través de un intermediario financiero.
y será pagado por ACH, cheque o transferencia bancaria.

Información sobre los impuestos:
Dividendos y distribuciones de ganancias de capital que recibe del Fondo, ya sea que reinvierta sus distribuciones en un Fondo adicional
las acciones o las recibe en efectivo, están sujetas a impuestos a las tasas impositivas ordinarias de ingresos o ganancias de capital a menos que esté invirtiendo
a través de un plan con impuestos diferidos, como un plan IRA o 401 (k).

Pagos a agentes de bolsa y otros servicios financieros
Intermediaries: If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank),
the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may
create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the
Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

LEADER TOTAL RETURN FUND SUMMARY

Investment Objective: The investment
objective of the Leader Total Return Fund (the “Fund”) is to seek income and capital appreciation to produce a high
total return.

Fees and Expenses of the Fund: los
following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales
charge discounts on purchases of Class A shares if you and your family invest, or agree to invest in the future, at least $50,000
in the Fund. More information about these sales charge discounts and other discounts is available from your financial professional
and in the section How to Purchase Shares of the Fund’s Prospectus and in the section
Purchase, Redemption and Pricing of Shares of the Fund’s Statement of Additional
Information.

Shareholder Fees (fees paid directly from your investment)	Institutional Shares	Investor Shares	Class A Shares	Class C Shares
Maximum Sales Charge (Load) Imposed on Purchases (as a % of offering price)	None	None	1.50%	None
Maximum Deferred Sales Charge (Load) (as a % of the lower of original purchase price or redemption proceeds)⁽¹⁾	None	None	None	1.00%
Maximum Sales Charge (Load) Imposed on Reinvested Dividends and other Distributions	None	None	None	None
Redemption Fee (as a % of amount redeemed, on shares held less than six months)	None	None	None	None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)⁽²⁾
Management Fees	0.75%	0.75%	0.75%	0.75%
Distribution and/or Service (12b-1) Fees	None	0.50%	0.50%	1.00%
Other Expenses	1.13%	1.17%	1.04%	1.21%
Acquired Fund Fees and Expenses⁽³⁾	0.03%	0.03%	0.03%	0.03%
Total Annual Fund Operating Expenses	1.91%	2.45%	2.32%	2.99%

(1)

A contingent deferred sales charge of 1.00%
applies on certain redemptions made within 12 months of their purchase date.

(2)

The Fund is the successor to the Leader
Total Return Fund (the “Predecessor Total Return Fund”), a series of Northern Lights Fund Trust, which was reorganized
into the Fund on July 15, 2019.

(3)

Acquired Fund Fees and Expenses are the
indirect costs of investing in other investment companies. The operating expenses in this fee table do not correlate to the expense
ratio in the Fund’s financial highlights because the financial statements include only the direct operating expenses incurred
by the Fund.

Ejemplo: This Example is intended
to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000
in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual
costs may be higher or lower, based upon these assumptions your costs would be:

Clase	1 Year	3 Years	5 Years	10 Years
Institutional Shares	$194	$600	$1,032	$2,233
Investor Shares	$248	$764	$1,306	$2,786
Class A Shares	$382	$864	$1,372	$2,766
Class C Shares	$402	$924	$1,572	$3,308

Portfolio Turnover: The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover
may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs,
which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most
recent fiscal year, the portfolio turnover rate of the Predecessor Total Return Fund was 397.79% of the average value of its portfolio.

Principal Investment Strategies: los
Fund seeks to achieve its investment objective by investing primarily in domestic and foreign fixed income securities of various
maturities and credit qualities that are denominated in U.S. dollars or foreign currencies. Fixed income security types include
bonds, convertible debt securities, interest-only securities, preferred securities, notes and debentures issued by corporations,
governments and their agencies or instrumentalities as well as mortgage-backed securities (agency, adjustable rate and collateralized
mortgage-backed securities) and asset-backed securities (loan and credit-backed securities including collateralized loan obligations
(“CLOs”). The Fund’s investments in foreign issuers may include issuers from emerging markets. The Fund defines
emerging market issuers as those found outside of North America, Europe, Japan, Australia and New Zealand.

The Fund invests primarily in investment-grade
securities, but may invest up to 40% of its total assets in high yield securities (commonly referred to as “junk bonds”).
The Fund defines junk bonds as those rated lower than Baa3 by Moody’s Investors Service (“Moody’s”) or
lower than BBB- by Standard and Poor’s Rating Group (“S&P”), or, if unrated, determined by the Advisor to
be of similar credit quality. However, the Fund restricts its junk bond purchases to those rated B3 or higher by Moody’s
or B- or higher by S&P, or, if unrated, determined by the Advisor to be of comparable quality. The Fund may invest in U.S.
treasury government securities with no limit. Foreign issues denominated in U.S. dollars will be excluded from the 40% allocation
limit.

The Advisor allocates Fund assets among various
fixed income sectors, maturities and specific issues using an opportunistic approach by assessing risk and reward.

Sector selection focuses on identifying
portions of the fixed income market that the Advisor believes offer the highest yield or expected capital appreciation from interest
rate declines or currency exchange rate gains.

Maturity or yield curve management focuses
on selecting securities with maturities that the Advisor believes have the highest yield and/or highest potential capital appreciation,
when compared to securities with shorter or longer maturities.

Security selection focuses on identifying
specific securities that offer the highest yield or expected capital appreciation when compared to a peer group of securities with
similar credit quality and maturity.

The Advisor buys securities for either or both
their interest income and their potential for capital appreciation, generally resulting from decreases in interest rates, foreign
currency appreciation, or improving credit fundamentals for a particular sector or security. The Advisor may sell a security if
its value becomes unattractive, such as when its fundamentals deteriorate or when other investment opportunities exist that may
have more attractive yields.

The Fund may short equity stocks up to 20% of
its total assets. The Advisor will consider shorting the stock of issuers in which the Fund owns a position in the same issuer’s
convertible debt securities. In pursuing its short strategy, the Advisor seeks to tactically take advantage of the price relationship
between an issuer’s stock and its convertible securities.

The Advisor may engage in frequent buying and
selling of securities to achieve the Fund’s investment objective.

Principal Investment Risks: As with all
mutual funds, there is the risk that you could lose money through your investment in the Fund.

Collateralized Loan Obligation Risk.
CLOs are securities backed by an underlying portfolio of debt and loan obligations, respectively. CLOs issue classes or “tranches”
that vary in risk and yield and may experience substantial losses due to actual defaults, decrease of market value due to collateral
defaults and removal of subordinate tranches, market anticipation of defaults and investor aversion to CLO securities as a class.
The risks of investing in CLOs depend largely on the tranche invested in and the type of the underlying debts and loans in the
tranche of the CLO, respectively, in which the Fund invests. CLOs also carry risks including, but not limited to, interest rate
risk and credit risk.

Convertible Debt Securities Risk.
Convertible debt securities subject the Fund to the risks associated with both fixed-income securities and equity securities. Si
a convertible debt security’s investment value is greater than its conversion value, its price will likely increase when
interest rates fall and decrease when interest rates rise. If the conversion value exceeds the investment value, the price of the
convertible security will tend to fluctuate directly with the price of the underlying equity security.

Credit Risk. Issuers may not make
interest and principal payments on securities held by the Fund, resulting in losses to the Fund. In addition, the credit quality
of securities held by the Fund may be lowered if an issuer’s financial condition changes. Lower credit quality may lead to
greater volatility in the price of a security and lower liquidity making it difficult for the Fund to sell the security.

Currency Risk. Currency trading
risks include market risk, credit risk and country risk. Market risk results from adverse changes in exchange rates in the currencies
the Fund is long or short. Credit risk results because a currency-trade counterparty may default. Country risk arises because a
government may interfere with transactions in its currency.

Emerging Markets Risk. The Fund may invest in countries
with newly organized or less developed securities markets. Generally, economic structures in these countries are less diverse and
mature than those in developed countries and their political systems tend to be less stable. Emerging market economies may be based
on only a few industries, therefore security issuers, including governments, may be more susceptible to economic weakness and more
likely to default. Emerging market countries also may have relatively unstable governments, weaker economies, and less-developed
legal systems with fewer security holder rights.

Foreign Risk. Foreign investments involve additional
risks not typically associated with investing in U.S. Government securities and/or securities of domestic companies, including
currency rate fluctuations, political and economic instability, differences in financial reporting standards and less strict regulation
of securities markets. The withdrawal of the United Kingdom from the European Union (so-called Brexit) may create greater economic
uncertainty for European debt issuers and negatively impact their credit quality. Securities subject to these risks may be less
liquid than those that are not subject to these risks.

Government Securities Risk. It is possible that the
U.S. Government would not provide financial support to its agencies or instrumentalities if it is not required to do so by law.
If a U.S. Government agency or instrumentality in which the Fund invests defaults and the U.S. Government does not stand behind
the obligation, the Fund’s share price or yield could fall. Securities of U.S. Government sponsored entities, such as Freddie
Mac or Fannie Mae, are neither issued nor guaranteed by the U.S. Government. The U.S. Government’s guarantee of ultimate
payment of principal and timely payment of interest of the U.S. Government securities owned by the Fund does not imply that the
Fund’s shares are guaranteed by the Federal Deposit Insurance Corporation or any other government agency, or that the price
of the Fund’s shares will not fluctuate.

High-Yield Bond Risk. Lower-quality bonds, known
as high-yield bonds or “junk bonds,” present a significant risk for loss of principal and interest. These bonds offer
the potential for higher return, but also involve greater risk than bonds of higher quality, including an increased possibility
that the bond’s issuer, obligor or guarantor may not be able to make its payments of interest and principal (credit quality
risk). If that happens, the value of the bond may decrease, and the Fund’s share price may decrease and its income distribution
may be reduced. An economic downturn or period of rising interest rates (interest rate risk) could adversely affect the market
for these bonds and reduce the Fund’s ability to sell its bonds (liquidity risk). The lack of a liquid market for these bonds
could decrease the Fund’s share price. The ability of governments to repay their obligations is adversely impacted by default,
insolvency, bankruptcy or by political instability, including authoritarian and/or military involvement in governmental decision-making,
armed conflict, civil war, social instability and the impact of these events and circumstances on a country’s economy and
its government’s revenues. Therefore, government bonds can present a significant risk. Governments may also repudiate their
debts in spite of their ability to pay. The Fund’s ability to recover from a defaulting government is limited because that
same government may block access to court-mandated legal remedies or other means of recovery.

Interest Only Securities Risk. Certain securities,
called “interest only securities” involve greater uncertainty regarding the return on investment. An interest only
security is not entitled to any principal payments. If the mortgage assets in a pool prepay or default at rapid rates, it may reduce
the amount of interest available to pay a related interest only security and may cause an investor in that interest only security
to fail to recover the investor’s initial investment.

Interest Rate Risk. The value of the Fund may fluctuate
based on changes in interest rates and market conditions. As interest rates rise, the value of income producing instruments may
decrease. This risk increases as the term of the note increases. Income earned on floating- or variable-rate securities will vary
as interest rates decrease or increase. However, the interest rates on variable-rate securities, as well as certain floating-rate
securities whose interest rates are reset only periodically, can fluctuate in value as a result of interest rate changes when there
is an imperfect correlation between the interest rates on the securities and prevailing market interest rates.

Issuer-Specific Risk. The value of a specific security
can be more volatile than the market as a whole and can perform differently from the value of the market as a whole.

Liquidity Risk. Some securities may have few market-makers
and low trading volume, which tends to increase transaction costs and may make it difficult for the Fund to dispose of a security
at all or at a price which represents current or fair market value.

Management Risk. The Advisor’s judgments about
the attractiveness, value and potential appreciation of particular security in which the Fund invests may prove to be incorrect
and may not produce the desired results.

Mortgage-Backed and Asset-Backed Securities Risk. los
default rate on underlying mortgage loans or asset loans may be higher than anticipated, potentially reducing payments to the Fund.
Default rates are sensitive to overall economic conditions such as unemployment, wage levels and economic growth rates. Mortgage-backed
securities are susceptible maturity risk because issuers of securities held by the Fund are able to prepay principal due on these
securities, particularly during periods of declining interest rates.

Portfolio Turnover Risk. The frequency of the Fund’s
transactions will vary from year to year. Increased portfolio turnover may result in higher brokerage commissions, dealer mark-ups
and other transaction costs and may result in taxable capital gains. Turnover increased as the Fund made strategic changes to portfolio
allocation to take advantage of the changing interest rate landscape and to address an increase in capital share activity. los
Fund’s portfolio turnover is expected to be over 100% annually, as the Fund is actively traded.

Preferred Security Risk. The value of preferred securities
will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of preferred stock.
Preferred securities are also subject to credit risk, which is the possibility that an issuer of preferred stock will fail to make
its dividend payments.

Short Sale Risk. If a security sold short or other
instrument increases in price, the Fund may have to cover its short position at a higher price than the short sale price, resulting
in a loss. The Fund may not be able to successfully implement its short sale strategy due to limited availability of desired securities
or for other reasons.

Performance: The Fund acquired the assets
and liabilities of the Predecessor Total Return Fund on July 15, 2019. As a result of the reorganization, the Fund is the accounting
successor of the Predecessor Total Return Fund. Performance results shown in the bar chart and the performance table below reflect
the performance of the Predecessor Total Return Fund’s Investor Class of shares. The bar chart and table below provide some
indication of the risks of investing in the Fund and the Predecessor Total Return Fund. The bar chart shows the annual returns
of the Predecessor Total Return Fund’s Investor Class shares performance for each calendar year since the Predecessor Total
Return Fund’s inception. Returns for the Predecessor Total Return Fund’s other Classes of shares would be substantially
similar because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent
that the Classes do not have the same expenses. The performance table compares the performance of the Predecessor Total Return
Fund’s shares over time to the performance of the Bloomberg Barclays U.S. Aggregate Bond Index. The Predecessor Total Return
Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future.
Updated performance information is available at no cost by visiting www.leadercapital.com or by calling (800) 711-9164.

Investor Class

Calendar Year Returns as of December
31

Best Quarter:	03/31/2012	5.93%
Worst Quarter:	9/30/2011	(6.72)%

The Fund’s Investor Class shares had a
total return of 2.98% during the period January 1, 2019 to June 30, 2019.

Average Annual Total Returns

(For the periods ended December 31,
2018)

	One Year	Five Years	Since Inception
Investor Class Return Before Taxes	6.00%	1.52%	3.70%*
Investor Class Return After Taxes on Distributions	4.55%	0.06%	2.17%*
Investor Class Return After Taxes on Distributions and Sale of Fund Shares	3.52%	0.50%	2.21%*
Institutional Class Return Before Taxes	6.62%	2.26%	4.32%*
Class A Return Before Taxes	4.39%	0.80%	2.94%**
Class C Return Before Taxes	5.46%	1.06%	3.16%***
Bloomberg Barclays US Intermediate Aggregate Index+	0.92%	2.09%	2.27%*

* *

Inception date for Investor Class and Institutional Class was July 30, 2010.

** **

Inception date for Class A was March 21, 2012.

***

Inception date for Class C is August 8, 2012.

After tax returns are calculated using the historical
highest individual federal marginal income tax rates and do not reflect the effect of state and local taxes. Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors
who hold shares of the Fund through tax-deferred arrangements, such as 401(k) plans or IRAs. After-tax returns are shown for only
Investor Class shares, and after-tax returns for other classes will vary.

+ Bloomberg Barclays US Intermediate Aggregate
Index measures the performance of the U.S. investment grade bond market. The index invests in a wide spectrum of public, investment-grade,
taxable, fixed income securities in the United States – including government, corporate, and international dollar-denominated bonds,
as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year. Investors may not invest directly
in an index. Unlike the Fund’s returns, the Index does not reflect any fees or expenses.

Investment Advisor: Leader Capital Corp.
is the Fund’s investment advisor.

Investment Advisor Portfolio Managers: John
E. Lekas, founder of Leader Capital Corp., has been the Fund’s and Predecessor Total Return Fund’s portfolio manager
since it commenced operations in July 2010.

Purchase and Sale of Fund Shares: por
Institutional Class shares, the minimum initial investment amount for all accounts (including IRAs) is $2,000,000. No hay
minimum for subsequent investments. For Investor Class, Class A and Class C shares, the minimum initial investment amount for all
accounts (including IRAs) is $2,500 and the minimum subsequent investment is $100. You may purchase and redeem shares of the Fund
on any day that the New York Stock Exchange is open. Redemption requests may be made in writing, by telephone, or through a financial
intermediary and will be paid by ACH, check or wire transfer.

Tax Information:
Dividends and capital gain distributions you receive from the Fund, whether you reinvest your distributions in additional Fund
shares or receive them in cash, are taxable to you at either ordinary income or capital gains tax rates unless you are investing
through a tax-deferred plan such as an IRA or 401(k) plan.

Payments to Broker-Dealers and Other Financial
Intermediaries: If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank),
the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may
create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the
Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

LEADER FLOATING RATE FUND SUMMARY

Investment Objectives: The primary investment
objective of the Leader Floating Rate Fund (the “Fund”) is to deliver a high level of current income, with a secondary
objective of capital appreciation.

Fees and Expenses of the Fund: los
following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. More information about
these sales charge discounts and other discounts is available from your financial professional and in the How to Purchase
Shares of the Fund’s Prospectus and in the section Purchase, Redemption and Pricing
of Shares of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Institutional Shares	Investor Shares
Maximum Sales Charge (Load) Imposed on Purchases (as a % of offering price)	None	None
Maximum Deferred Sales Charge (Load) (as a % of the lower of original purchase price or redemption proceeds)	None	None
Maximum Sales Charge (Load) Imposed on Reinvested Dividends and other Distributions	None	None
Redemption Fee (as a percentage of amount redeemed)	None	None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)⁽¹⁾
Management Fees	0.65%	0.65%
Distribution and/or Service (12b-1) Fees⁽²⁾	None	0.38%
Other Expenses	0.30%	0.31%
Acquired Fund Fees & Expenses⁽³⁾	0.01%	0.01%
Total Annual Fund Operating Expenses	0.96%	1.35%

(1)

The Fund is the successor to the Leader
Floating Rate Fund (the “Predecessor Floating Rate Fund”), a series of Northern Lights Fund Trust, which was reorganized
into the Fund on July 15, 2019.

(2)

The Fund has limited 12b-1 fees for Investor
Class shares to 0.38% for the current fiscal year.

(3)

Ejemplo: This Example is intended
to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that
you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. los
Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same
and the contractual agreement to reduce management fees and pay other Fund expenses remains in effect only until September 30,
2020. Although your actual costs may be higher or lower, based upon these assumptions your costs would be:

Clase	1 Year	3 Years	5 Years	10 Years
Institutional Shares	$98	$306	$531	$1,178
Investor Shares	$137	$428	$739	$1,624

Portfolio Turnover: The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover
may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs,
which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most
recent fiscal year, the Predecessor Floating Rate Fund’s portfolio turnover rate was 248.18% of the average value of its
portfolio.

Principal Investment Strategies: Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any amount of borrowings for investment purposes, in
floating rate debt securities. For the purposes of the Fund’s 80% investment policy, the Fund defines the following US dollar
denominated domestic and foreign floating rate securities as floating rate debt securities:

bonds and corporate debt

bank loans and bank loan participations

agency and non-agency commercial mortgage-backed
securities (“CMBS”) and residential mortgage-backed securities (“RMBS”)

interest-only securities

collateralized loan obligations (“CLOs”)
that are backed by domestic and foreign floating rate debt obligations

collateralized debt obligations (“CDOs”)
that are backed by domestic and foreign floating rate debt obligations

US government securities

The Fund invests in floating rate debt securities
with an interest rate that resets quarterly based on the London Interbank Offered Rate (“LIBOR”). The Fund allocates
assets across floating rate debt security types without restriction, subject to its 80% floating rate debt policy. The Fund’s
investments in foreign issuers may include issuers from emerging markets. The Fund defines emerging market issuers as those found
outside of North America, Europe, Japan, Australia and New Zealand.

While the Fund invests without restriction as
to the maturity of any single debt security, the Fund’s portfolio average effective duration (a measure of interest rate
risk similar to maturity) will be one year or less. When the Fund invests in debt securities, each security must be rated no lower
than the A category by Standard & Poor’s Ratings Group, Moody’s Investors Service or Fitch Ratings, Inc. If a debt
security is downgraded to below an A rating, the Fund will sell such security within 30 days.

CMBS, RMBS, CLOs, and CDOs are single-purpose
investment vehicles that hold baskets of loans and issue securities that are paid from the cash flows of the underlying loans.
Investors purchase a particular class of securities called a tranche (a French word for slice). The tranches receive payments from
the principal and interest payments made by underlying borrowers in accordance to the rank of the tranche. Normally, CMBS, RMBS,
CLOs, and CDOs have multiple tranches with investors in the bottom tranches having last priority to receive payment. By investing
in A rated or better debt tranches, the Fund will not be less than third in priority for payment. Loans and loan participations
may be unsecured which means that they are not collateralized by any specific assets of the borrower. The Fund allocates assets
across security types without restriction, subject to its 80% floating rate debt policy. The Fund does not purchase floating rate
securities with subordinate underlying loans or debt obligations.

As a result of its trading strategy, the Fund
expects to engage in frequent portfolio transactions that will likely result in higher portfolio turnover and commissions than
many investment companies.

Principal Investment Risks: As with all
mutual funds, there is the risk that you could lose money through your investment in the Fund.

CLO and CDO Risk. CLOs and CDOs are securities backed
by an underlying portfolio of loan and debt obligations, respectively. CLOs and CDOs issue classes or “tranches” that
vary in risk and yield and may experience substantial losses due to actual defaults, decrease of market value due to collateral
defaults and removal of subordinate tranches, market anticipation of defaults and investor aversion to CLO and CDO securities as
a class. Investments in CLO and CDO securities may be riskier and less transparent than direct investments in the underlying loans
and debt obligations.

The risks of investing in CLOs and
CDOs depend largely on the tranche invested in and the type of the underlying debts and loans in the tranche of the CLO or CDO,
respectively, in which the Fund invests. The tranches in a CLO or CDO vary substantially in their risk profile. The senior tranches
are relatively safer because they have first priority on the collateral in the event of default. As a result, the senior tranches
of a CLO or CDO generally have a higher credit rating and offer lower coupon rates than the junior tranches, which offer higher
coupon rates to compensate for their higher default risk. The CLOs and CDOs in which the Fund may invest may incur, or may have
already incurred, debt that is senior to the Fund’s investment. CLOs and CDOs also carry risks including, but not limited
to, interest rate risk and credit risk.

Investments in CLOs and CDOs may
be subject to certain tax provisions that could result in the Fund incurring tax or recognizing income prior to receiving cash
distributions related to such income. CLOs and CDOs that fail to comply with certain U.S. tax disclosure requirements may be subject
to withholding requirements that could adversely affect cash flows and investment results. Any unrealized losses the Fund experiences
with respect to its CLO and CDO investments may be an indication of future realized losses.

The senior tranches of certain
CLOs and CDOs in which the Fund invests may be concentrated in a limited number of industries or borrowers, which may subject those
CLOs and CDOs, and in turn the Fund, to the risk of significant loss if there is a downturn in a particular industry in which the
CLO or CDO is concentrated.

The application of risk retention
rules to CLOs and CDOs may affect the overall CLO and CDO market, resulting in fewer investment opportunities for the Fund.

Distribution Risk. There is a risk that shareholders
may not receive distributions from the Fund or that such distributions may not grow or may be reduced over time, including on a
per share basis. The Fund may have difficulty paying out distributions if income from its investments is recognized before or without
receiving cash representing such income.

Foreign Risk. Foreign investments involve additional
risks not typically associated with investing in U.S. Government securities and/or securities of domestic companies, including
currency rate fluctuations, political and economic instability, differences in financial reporting standards and less strict regulation
of securities markets. The withdrawal of the United Kingdom from the European Union (so-called Brexit) may create greater economic
uncertainty for European debt issuers and negatively impact their credit quality. Securities subject to these risks described above
may be less liquid than those that are not subject to these risks.

Government Securities Risk. It is possible that
the U.S. Government would not provide financial support to its agencies or instrumentalities if it is not required to do so by
law. If a U.S. Government agency or instrumentality in which the Fund invests defaults and the U.S. Government does not stand behind
the obligation, the Fund’s share price or yield could fall. Securities of U.S. Government sponsored entities, such as Freddie
Mac or Fannie Mae, are neither issued nor guaranteed by the U.S. Government. The U.S. Government’s guarantee of ultimate
payment of principal and timely payment of interest of the U.S. Government securities owned by the Fund does not imply that the
Fund’s shares are guaranteed by the Federal Deposit Insurance Corporation or any other government agency, or that the price
of the Fund’s shares will not fluctuate.

Interest Rate Risk. The value of the Fund may fluctuate
based on changes in interest rates and market conditions. As interest rates rise, the value of income producing instruments may
decrease. This risk increases as the term of the note increases. Income earned on floating-rate securities will vary as interest
rates decrease or increase. However, the interest rates on certain floating-rate securities whose interest rates are reset only
periodically, can fluctuate in value as a result of interest rate changes when there is an imperfect correlation between the interest
rates on the securities and prevailing market interest rates.

Loan and Loan Participation Risk. The secondary market
for loans and loan participations is a private, unregulated inter-dealer or inter-bank resale market. Purchases and sales of loans
and loan participations are generally subject to contractual restrictions that must be satisfied before a loan or loan participations
can be bought or sold. These restrictions may impede the Fund’s ability to buy or sell loans and loan participations and
may negatively impact the transaction price. It may take longer than seven days for transactions in loans and loan participations
to settle. The Fund may hold cash, sell investments or temporarily borrow from banks or other lenders to meet short-term liquidity
needs due to the extended loan settlement process, such as to satisfy redemption requests from Fund shareholders. Loan participations
are indirectly subject to default risk of the bank granting the participation. Such a default will likely delay the Fund’s
access to the cash flows from underlying loan. Loans and loan participations may be unsecured which means that they are not collateralized
by any specific assets of the borrower.

Management Risk. The strategy used by the Advisor
may fail to produce the intended results. The ability of the Fund to meet its investment objectives is directly related to the
Advisor’s investment strategies for the Fund. Your investment in the Fund varies with the effectiveness of the Advisor’s
research, analysis and asset allocation among portfolio securities. The Advisor’s judgments about the attractiveness, value
and potential appreciation of particular security in which the Fund invests may prove to be incorrect and may not produce the desired
resultados. If the Advisor’s investment strategies do not produce the expected results, your investment could be diminished
or even lost. The Fund’s board of trustees may change Fund operating policies and strategies without prior notice or shareholder
approval, the effects of which may be adverse.

Market Risk. Overall fixed income market risks may
affect the value of individual securities in which the Fund invests. Factors such as global interest rate levels, economic growth,
market conditions and political events affect the fixed income securities markets. Uncertainty relating to the LIBOR calculation
process may adversely affect the value of the Fund’s investments in floating rate debt securities that are indexed to LIBOR.
When the value of the Fund’s investments goes down, your investment in the Fund decreases in value and you could lose money.

Mortgage-Backed Securities Risk. When the Fund invests
in RMBS and CMBS, the Fund is subject to the risk that, if the underlying borrowers fail to pay interest or repay principal, the
assets backing these securities may not be sufficient to support payments on the securities. The value of these securities may
be significantly affected by changes in interest rates, the market’s perception of issuers, and the creditworthiness of the
parties involved. RMBS default rates tend to be sensitive to these conditions and to home prices. CMBS default rates tend to be
sensitive to overall economic conditions and to localized commercial property vacancy rates and prices. Any unrealized losses the
Fund experiences with respect to its RMBS and CMBS investments may be an indication of future realized losses.

RMBS are subject to prepayment risk and
extension risk. If interest rates rise, there may be fewer prepayments, which would cause an RMBS’s average maturity to rise,
increasing the potential for the Fund to lose money. If interest rates fall, there may be faster prepayments, which would cause
an RMBS’s average maturity to decline, increasing the risk that the Fund will have reinvest prepayment proceeds at lower
interest rates.

Mortgage-backed securities issued or guaranteed
by private issuers are also known as “non-agency MBS”. Non-agency MBS generally are a greater credit risk than MBS
issued by the U.S. government, and the market for non-agency MBS is smaller and less liquid than the market for government issued
MBS.

Portfolio Turnover Risk. The frequency of the Fund’s
transactions will vary from year to year. Increased portfolio turnover may result in higher brokerage commissions, dealer mark-ups
and other transaction costs and may result in taxable capital gains. Higher costs associated with increased portfolio turnover
may offset gains in the Fund’s performance. Turnover increased as the Fund made strategic changes to portfolio allocation
to take advantage of the changing interest rate landscape and to address an increase in capital share activity. The Fund’s
portfolio turnover is expected to be over 100% annually, as the Fund is actively traded.

Regulatory Risk. Changes in laws
or regulations governing the Fund’s operations may adversely affect the Fund or cause an alteration in the Fund’s strategy.
The SEC has raised questions regarding certain non-traditional investments, including CLOs.

Performance: The Fund acquired the assets
and liabilities of the Predecessor Floating Rate Fund on July 15, 2019. As a result of the reorganization, the Fund is the accounting
successor of the Predecessor Floating Rate Fund. Performance results shown in the bar chart and the performance table below reflect
the performance of the Predecessor Floating Rate Fund’s Investor Class of shares. The bar chart and table below provide some
indication of the risks of investing in the Fund and the Predecessor Floating Rate Fund. The bar chart shows the annual returns
of the Predecessor Floating Rate Fund’s Investor Class shares performance for each calendar year since the Predecessor Floating
Rate Fund’s inception. Returns for the Predecessor Floating Rate Fund’s Institutional Class of shares would be substantially
similar because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent
that the Classes do not have the same expenses. The performance table compares the performance of the Predecessor Floating Rate
Fund’s shares over time to the performance of the S&P/LSTA Leveraged Loan Total Return Index. The Predecessor Floating
Rate Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the
future. Updated performance information is available at no cost by visiting www.leadercapital.com or by calling (800) 711-9164.

Investor Class

Calendar Year Returns as of December
31

Best Quarter:	12/31/2017	0.75%
Worst Quarter:	3/21/2017	0.35%

The Fund’s Investor Class shares had a
total return of 1.67% during the period January 1, 2019 to June 30, 2019.

Average Annual Total Returns

(For the periods ended December 31,
2018)

	One Year	Since Inception*
Investor Class Return Before Taxes	2.05%	2.19%
Investor Class Return After Taxes on Distributions	1.05%	1.29%
Investor Class Return After Taxes on Distributions and Sale of Fund Shares	1.21%	1.28%
Institutional Class Return Before Taxes	2.45%	2.64%
S&P/LSTA Leveraged Loan Total Return Index+	0.44%	2.26%

* Inception date for Leader Floating
was December 30, 2016.

+ S&P/LSTA Leveraged Loan Total Return Index
is a market value weighted index designed to measure the performance of the U.S. leveraged loan market based upon market weightings,
spreads and interest payments. Investors may not invest directly in an index. Unlike the Fund’s returns, the Index does not
reflect any fees or expenses.

Investment Advisor: Leader Capital Corp.
is the Fund’s investment advisor.

Investment Advisor Portfolio Manager: John
E. Lekas, founder of Leader Capital Corp., has been the Fund’s and Predecessor Floating Rate Fund’s portfolio manager
since it commenced operations in December 2016.

Purchase and Sale of Fund Shares: por
Institutional Class shares, the minimum initial investment amount for an account is $2,000,000. There is no minimum for subsequent
investments. For Investor Class, the minimum initial investment amount for all accounts (including IRAs) is $2,500 and the minimum
subsequent investment is $100. You may purchase and redeem shares of the Fund on any day that the New York Stock Exchange is open.
Redemption requests may be made in writing, by telephone, or through a financial intermediary and will be paid by ACH, check or
wire transfer.

ADDITIONAL INFORMATION ABOUT PRINCIPAL
INVESTMENT STRATEGIES AND RELATED RISKS

Investment Objectives:

The primary investment objective
of the Leader Short Duration Bond Fund is to deliver a high level of current income, with a secondary objective of capital appreciation.
The Fund’s investment objective is not fundamental and may be changed by the Board of Trustees without shareholder approval.
The investment objectives, strategies and policies of the Leader Short Duration Bond Fund may be changed without the approval of
the Fund’s shareholders upon 60 days’ written notice to shareholders. However, the Fund will not change its investment
objective or its investment policy of investing at least 80% of its assets in fixed income securities without changing the name
of the Fund and providing shareholders with at least 60 days’ advance notice in writing.

The investment objective of the Leader Total
Return Fund is to seek income and capital appreciation to produce a high total return. The Fund’s investment objective is
not fundamental, and may be changed by the Board of Trustees without shareholder approval upon 60 days’ written notice.

The primary investment objective
of the Leader Floating Rate Fund is to deliver a high level of current income, with a secondary objective of capital appreciation.
The investment objectives, strategies and policies of the Leader Floating Rate Fund may be changed without the approval of the
Fund’s shareholders upon 60 days’ written notice to shareholders. However, the Fund will not change its investment
policy of investing at least 80% of its net assets, plus any amount of borrowings for investment purposes, in floating rate debt
securities without changing the name of the Fund and providing shareholders with at least 60 days’ advance notice in writing.

Principal Investment Strategies:

Leader Short Duration Bond Fund

The Fund expects to achieve its objectives by
investing in a portfolio of investment grade debt securities and non-investment grade (also known as “junk bonds”)
debt securities, both domestic and foreign, including emerging markets. Fixed income securities in which the Fund may invest include
foreign and domestic bonds, notes, corporate debt, preferred securities, US and foreign government securities, domestic municipal
securities, mortgage-backed and asset-backed securities and STRIPS (Separate Trading of Registered Interest and Principal of Securities,
a type of zero-coupon debt instrument). The Fund’s effective average duration will normally be three years or less. los
Fund also may hold cash or cash equivalents, and it may enter into repurchase agreements. The Advisor utilizes a fundamental top-down
analysis, meaning the Advisor analyzes the economy, interest rate cycles, the supply and demand for credit and the characteristics
of individual securities in making investment selections.

Under normal circumstances, the Fund will invest
at least 80% of its net assets, plus any amount of borrowings for investment purposes, in fixed income securities. This policy
may not be changed without at least 60 days’ advance notice to shareholders in writing. The Fund may invest up to 40% of
its assets in lower-quality, high yield bonds rated B or higher by Moody’s Investors Service, Standard & Poor’s
Ratings Group, Fitch Ratings, Inc. or other Nationally Recognized Statistical Rating Organization (“NRSRO”) or, if
unrated by such NRSROs, determined by the Advisor to be of comparable quality. The Fund also may invest in bonds with the potential
for capital appreciation by purchasing these bonds at a larger discount from par value. The Fund may invest up to 20% of its assets,
determined at the time of investment, in foreign fixed income securities denominated in foreign currencies. Foreign fixed income
securities may be investment grade, below investment grade or unrated. The Fund may invest in U.S. Treasury Government securities
with no limit. The Fund may use options and credit default swaps to manage investment risk and liquidity.

The Fund may also sell equity stocks short up
to 20% of the Fund’s assets. The Advisor will consider shorting the stock of issuers in which the Fund owns a position in
same issuer’s convertible debt securities. In pursuing its short strategy, the Advisor seeks to tactically take advantage
of the price relationship between an issuer’s stock and its convertible securities.

The Fund may invest up to 20% of its assets
in floating and variable-rate securities, cash, cash equivalents and fixed income securities other than as described above. los
Fund may also invest in other mutual funds that primarily invest in floating rate securities, including funds that are also advised
by the Advisor. By keeping some cash or cash equivalents, the Fund may avoid realizing gains and losses from selling investments
when there are shareholder redemptions. However, the Fund may have difficulty meeting its investment objectives when holding a
significant cash position.

The Advisor will consider a floating or variable-rate
security to have a maturity equal to its stated maturity (or redemption date if it has been called for redemption), except that
it may consider: (1) variable-rate securities to have a maturity equal to the period remaining until the next readjustment in the
interest rate, unless subject to a demand feature; (2) variable-rate securities subject to a demand feature to have a remaining
maturity equal to the longer of (a) the next readjustment in the interest rate or (b) the period remaining until the principal
can be recovered through demand; and (3) floating-rate securities subject to a demand feature to have a maturity equal to the period
remaining until the principal can be recovered through demand. Variable and floating-rate securities generally are subject to less
principal fluctuation than securities without these attributes.

As noted above, the Fund’s effective average
duration will normally be three years or less. Effective duration is a measure of a fixed income security’s average life
that reflects the present value of the security’s cash flow, and accordingly, is a measure of price sensitivity to interest
rate changes. Effective duration is expressed in years, like maturity, but it is a better indicator of price sensitivity than maturity
because it takes into account the time value of cash flows generated over the security’s life. Future interest and principal
payments are discounted to reflect their present value and then are multiplied by the number of years they will be received to
produce a value expressed in years. You can estimate the effect of interest rates on a fixed income fund’s share price by
multiplying the fund’s effective duration by an expected change in interest rates. For example, the share price of a fixed
income fund with an effective duration of three years would be expected to fall approximately 3% if interest rates rose by one
percentage point. The Advisor may sell a security if its value becomes unattractive, such as when its fundamentals deteriorate
or when other investment opportunities exist that may have more attractive yields. The Advisor may engage in frequent buying and
selling of securities to achieve the Fund’s investment objective.

Leader Total Return Fund

The Fund seeks to achieve its investment objective
by investing primarily in domestic and foreign fixed income securities, including issuers from emerging markets, of various maturities
and credit qualities that are denominated in U.S. dollars or foreign currencies. Fixed income security types include bonds, convertible
debt securities, preferred securities, notes, debentures and other evidence of indebtedness issued by corporations, governments
and their agencies or instrumentalities as well as mortgage-backed and asset-backed securities including collateralized loan obligations
(“CLOs”).

Individual securities are purchased without
restriction as to maturity or duration; however, the average portfolio duration normally varies within 75% to 125% of the three-year
average duration of the Morningstar Core Bond Index, which as of May 31, 2019 was 5.59 years. The Fund will normally have an average
portfolio duration in between 3.50 to 6.00 years. Duration is a measure of the expected life of a fixed income security that is
used to determine the sensitivity of a security’s price to changes in interest rates. The longer a security’s duration,
the more sensitive it will be to changes in interest rates.

The Fund invests primarily in investment-grade
securities but may invest up to 40% of its total assets in high yield securities (commonly referred to as “junk bonds”).
The Fund defines junk bonds as those rated lower than Baa3 by Moody’s Investors Service (“Moody’s”) or
lower than BBB- by Standard and Poor’s Rating Group (“S&P”), or, if unrated, determined by the Advisor to
be of similar credit quality. However, the Fund restricts its junk bond purchases to those rated B3 or higher by Moody’s
or B- or higher by S&P, or, if unrated, determined by the Advisor to be of comparable quality. The Fund may invest in U.S.
treasury government securities with no limit. Foreign issues denominated in U.S. dollars will be excluded from the 40% allocation
limit.

The Advisor allocates Fund assets among various
fixed income sectors, maturities and specific issues using an opportunistic approach by assessing risk and reward.

Sector selection focuses on identifying
portions of the fixed income market that the Advisor believes offer the highest yield or expected capital appreciation based upon
both credit risk, as measured by the Moody’s, S&P and/or Fitch’s rating; and on the Advisor’s business cycle
and exchange rate forecast.

Leader Floating Rate Fund

The Fund seeks to achieve its objectives by
investing principally in floating rate debt securities. The Fund invests in floating rate debt securities with an interest rate
that resets quarterly) based on the London Interbank Offered Rate (“LIBOR”). While the Fund invests without restriction
as to the maturity of any single debt security, the Fund’s portfolio average effective duration (a measure of interest rate
risk similar to maturity) will be one year or less. When the Fund invests in debt securities, each security must be rated no lower
than the A category by Standard & Poor’s Ratings Group or no lower than the A category by Moody’s Investors Service
or no lower than the A category by Fitch Ratings, Inc. If a debt security is downgraded to below an A rating, the Fund will sell
such security within 30 days.

The Fund invests principally in floating rate
US dollar denominated foreign and domestic bonds, corporate debt, bank loans, bank loan participations, commercial mortgage-backed
securities (“CMBS”), residential mortgage-backed securities (“RMBS”), and collateralized loan obligations
(“CLOs”) and collateralized debt obligations (“CDOs”) that are backed by domestic and foreign floating
rate debt obligations, and US government securities. The Fund invests in both senior and subordinate debt tranches of CLOs, CDOs,
RMBS and CMBS. Senior tranches are structured so they are first in line to receive payments from the underlying pool of loans,
while subordinate tranches are lower in payment priority. Tranches rated A are typically no lower than third in payment priority
and in all cases are not lowest in payment priority. The tranches receive payments from the principal and interest payments made
by underlying borrowers in accordance to the rank of the tranche. Normally, CMBS, RMBS, CLOs, and CDOs have multiple tranches with
investors in the bottom tranches having last priority to receive payment. By investing in A rated or better debt tranches, the
Fund will not be less than third in priority for payment. The Fund allocates assets across security types without restriction,
subject to the Fund’s 80% floating rate debt security limitation.

The Advisor utilizes a fundamental top-down
analysis, meaning the Advisor analyzes the economy, interest rate cycles, the supply and demand for credit and the characteristics
of individual securities in making investment selections for the Fund. The Fund only invests in CLO and CDO tranches that are managed
by managers that the Advisor believes are above-average when compared to their peers. The Advisor selects managers it ranks
as either Tier 1 or Tier 2 according to the Advisor’s proprietary ranking system; and excludes lower-rated managers. Esta
system ranks managers based upon years of experience, performance history, and depth of staff. Each security is evaluated according
to the Advisor’s investment process that not only includes an analysis of the macro-economic environment, but also evaluates
each particular security’s structural nuances, credit metrics, and value relative to similar alternative securities that
may be offered from time to time.

The Advisor may sell a security if its value
becomes unattractive, such as when its fundamentals deteriorate, its credit rating is downgraded (including, as described above,
sales required when a security is downgraded to below an A rating), when it determines that the underlying credit has been impaired
such that a future downgrade is likely, or when other investment opportunities exist that may have more attractive yields. As a
result of its trading strategy, the Fund expects to engage in frequent portfolio transactions that will likely result in higher
portfolio turnover and commissions than many investment companies.

The Fund uses effective duration to measure
interest rate risk. While the Fund invests without restriction as to the maturity of any single debt security, the Fund’s
portfolio average effective duration (a measure of interest rate risk similar to maturity) will be one year or less. Effective
duration is a measure of a fixed income security’s price sensitivity to interest rate changes. Effective duration is expressed
in years, like maturity, but it is a better indicator of price sensitivity than maturity because it takes into account the nature
of the cash flows generated over the security’s life. The Fund defines the effective duration of a floating rate security
as the time remaining to its next interest rate reset.

Principal Investment Risks:

Leader Short Duration Bond Fund

Affiliated Fund Risk. Investments
in other investment companies, including an affiliated fund, are subject to investment advisory fees and other expenses, which
will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly
in an affiliated fund and may be higher than other mutual funds that invest directly in stocks and bonds. The Advisor may receive
management or other fees from an affiliated fund in which the Fund may invest. It is possible that a conflict of interest among
the Fund and an affiliated fund could affect how the Advisor fulfills its fiduciary duties to the Fund and an affiliated fund.

Collateralized Loan Obligation Risk. CLOs are securities
backed by an underlying portfolio of debt and loan obligations, respectively. CLOs issue classes or “tranches” that
vary in risk and yield and may experience substantial losses due to actual defaults, decrease of market value due to collateral
defaults and removal of subordinate tranches, market anticipation of defaults and investor aversion to CLO securities as a class.
The risks of investing in CLOs depend largely on the tranche invested in and the type of the underlying debts and loans in the
tranche of the CLO, respectively, in which the Fund invests. CLOs also carry risks including, but not limited to, interest rate
risk and credit risk.

Convertible Debt Securities Risk. Convertible
debt securities subject the Fund to the risks associated with both fixed-income securities and equity securities. If a convertible
debt security’s investment value is greater than its conversion value, its price will likely increase when interest rates
fall and decrease when interest rates rise. If the conversion value exceeds the investment value, the price of the convertible
security will tend to fluctuate directly with the price of the underlying equity security.

Credit Default Swap Risk. Crédito
default swaps (“CDS”) are typically two-party financial contracts that transfer credit exposure between the two parties.
Under a typical CDS, one party (the “seller”) receives pre-determined periodic payments from the other party (the “buyer”).
The seller agrees to make compensating specific payments to the buyer if a negative credit event occurs, such as the bankruptcy
or default by the issuer of the underlying debt instrument. The use of CDS involves investment techniques and risks different from
those associated with ordinary portfolio security transactions, such as potentially heightened counterparty, concentration and
exposure risks.

Credit Risk. The issuer of a fixed
income security may not be able to make interest or principal payments when due. Generally, the lower the credit rating of a security,
the greater the risk is that the issuer will default on its obligation. Credit risks associated with Auction Rate Securities (“ARS”)
mirror those of other bond issues in terms of default risk associated with the issuers. Because ARS do not carry a put feature
allowing the bondholder to require the purchase of the bonds by the issuer or a third party, they are very sensitive to changes
in credit ratings and normally require the highest ratings (e.g., AAA/Aaa) to make them marketable.

Derivatives Risk. When writing put
and call options, the Fund is exposed to declines in the value of the underlying asset against which the option was written. A
the extent required, the Fund will cover the financial exposure created by writing put and call options either by purchasing or
selling offsetting options or futures or designating liquid assets to cover such financial exposure. When purchasing options, the
Fund is exposed to the potential loss of the option purchase price. Derivatives may be illiquid and the market for derivatives
is largely unregulated. The use of derivatives may not always be a successful strategy and using them could lower the Fund’s
return.

Emerging Markets Risk. The Fund
may invest in countries with newly organized or less developed securities markets. Generally, economic structures in these countries
are less diverse and mature than those in developed countries and their political systems tend to be less stable. Emerging market
economies may be based on only a few industries, therefore security issuers, including governments, may be more susceptible to
economic weakness and more likely to default. Emerging market countries also may have relatively unstable governments, weaker economies,
and less-developed legal systems with fewer security holder rights.

changes in governmental administration
or economic or monetary policy (in this country or abroad) or changed circumstances
in dealings between nations. In addition, foreign brokerage commissions, custody fees and other costs of investing in foreign securities
are generally higher than in the United States. Investments in foreign issuers, whether denominated in U.S. dollars or foreign
currencies, could be affected by other factors not present in the United States, including expropriation, armed conflict, confiscatory
taxation, and potential difficulties in enforcing contractual obligations. The withdrawal of the United Kingdom from the European
Union (so-called Brexit) may create greater economic uncertainty for European debt issuers and negatively impact their credit quality.

Government Securities Risk. It is possible that the U.S.
Government would not provide financial support to its agencies or instrumentalities if it is not required to do so by law. If a
U.S. Government agency or instrumentality in which the Fund invests defaults and the U.S. Government does not stand behind the
obligation, the Fund’s share price or yield could fall. Securities of U.S. Government sponsored entities, such as Freddie
Mac or Fannie Mae, are neither issued nor guaranteed by the U.S. Government. The U.S. Government’s guarantee of ultimate
payment of principal and timely payment of interest of the U.S. Government securities owned by the Fund does not imply that the
Fund’s shares are guaranteed by the Federal Deposit Insurance Corporation or any other government agency, or that the price
of the Fund’s shares will not fluctuate.

High-Yield Bond Risk. Lower-quality
bonds, known as high-yield bonds or “junk bonds,” present a significant risk for loss of principal and interest. Estas
bonds offer the potential for higher return, but also involve greater risk than bonds of higher quality, including an increased
possibility that the bond’s issuer, obligor or guarantor may not be able to make its payments of interest and principal (credit
quality risk). If that happens, the value of the bond may decrease, and the Fund’s share price may decrease and its income
distribution may be reduced. An economic downturn or period of rising interest rates (interest rate risk) could adversely affect
the market for these bonds and reduce the Fund’s ability to sell its bonds (liquidity risk). The lack of a liquid market
for these bonds could decrease the Fund’s share price. The ability of governments to repay their obligations is adversely
impacted by default, insolvency, bankruptcy or by political instability, including authoritarian and/or military involvement in
governmental decision-making, armed conflict, civil war, social instability and the impact of these events and circumstances on
a country’s economy and its government’s revenues. Therefore, government bonds can present a significant risk. Governments
may also repudiate their debts in spite of their ability to pay. The Fund’s ability to recover from a defaulting government
is limited because that same government may block access to court-mandated legal remedies or other means of recovery

Interest Only Securities Risk. Certain
securities, called “interest only securities” involve greater uncertainty regarding the return on investment. An interest
only security is not entitled to any principal payments. If the mortgage assets in a pool prepay or default at rapid rates, it
may reduce the amount of interest available to pay a related interest only security and may cause an investor in that interest
only security to fail to recover the investor’s initial investment.

Interest Rate Risk. The value of
the Fund may fluctuate based on changes in interest rates and market conditions. As interest rates rise, the value of income producing
instruments may decrease. This risk increases as the term of the note increases. Income earned on floating- or variable-rate securities
will vary as interest rates decrease or increase. However, the interest rates on variable-rate securities, as well as certain floating-rate
securities whose interest rates are reset only periodically, can fluctuate in value as a result of interest rate changes when there
is an imperfect correlation between the interest rates on the securities and prevailing market interest rates.

Issuer-Specific Risk. The value of a specific security can
be more volatile than the market as a whole and can perform differently from the value of the market as a whole.

Legislative Change Risk. Municipal
securities are subject to the risk that legislative changes and local and business developments may adversely affect the yield
or value of the Fund’s investments in such securities.

Liquidity Risk. Liquidity risk is the risk that a security
cannot be sold or replaced quickly at or very close to its market value. The Fund’s ability to sell a position in a security
prior to maturity depends, in part, on the existence of a liquid secondary market for such a security. Some securities may have
few market-makers and low trading volume, which tends to increase transaction costs and may make it difficult for the Fund to dispose
of a security at all or at a price which represents current or fair market value.

Management Risk. The strategy used by the Advisor may fail
to produce the intended results. The ability of the Fund to meet its investment objectives is directly related to the Advisor’s
investment strategies for the Fund. Your investment in the Fund varies with the effectiveness of the Advisor’s research,
analysis and asset allocation among portfolio securities. If the Advisor’s investment strategies do not produce the expected
results, your investment could be diminished or even lost.

Mortgage-Backed and Asset-Backed Securities
Risk. Mortgage-Backed (“MBS”) and asset-backed securities (“ABS”) are subject to certain additional
risks. The default rate on underlying mortgage loans or asset loans may be higher than anticipated, potentially reducing payments
to the Fund. Default rates are sensitive to overall economic conditions such as unemployment, wage levels and economic growth rates.
MBS are susceptible maturity risk because issuers of securities held by the Fund are able to prepay principal due on these securities,
particularly during periods of declining interest rates. Securities subject to prepayment risk generally offer less potential for
gains when interest rates decline, and may offer a greater potential for loss when interest rates rise. When interest rates decline,
borrowers may pay off their mortgages sooner than expected. This can reduce the returns of the Fund because the Fund may have to
reinvest that money at the lower prevailing interest rates. Prepayment risk as well as the risk that the structure of certain MBS
may make their reaction to interest rates and other factors difficult to predict, making their prices volatile. Generally, rising
interest rates tend to be associated with longer MBS maturities because borrower prepayment rates tend to decline when rates rise.
As a result, in a period of rising interest rates, MBS exhibit additional volatility, known as extension risk. ABS are also subject
to maturity risk, although to a much smaller degree.

Municipal Securities Risk. The value of municipal bonds that
depend on a specific revenue source or general revenue source to fund their payment obligations may fluctuate as a result of changes
in the cash flows generated by the revenue source(s) or changes in the priority of the municipal obligation to receive the cash
flows generated by the revenue source(s). In addition, changes in federal tax laws or the activity of an issuer may adversely affect
the tax-exempt status of municipal bonds. Investments in inverse floating rate securities typically involve greater risk than investments
in municipal bonds of comparable maturity and credit quality and their values are more volatile than municipal bonds due to the
leverage they entail.

Portfolio
Turnover Risk. The frequency of a Fund’s transactions will vary from year to year. Increased portfolio turnover may result
in higher brokerage commissions, dealer mark-ups and other transaction costs and may result in taxable capital gains. Higher costs
associated with increased portfolio turnover may offset gains in the Fund’s performance. Turnover
increased as the Fund made strategic changes to portfolio allocation to take advantage of the changing interest rate landscape
and to address an increase in capital share activity. los
Fund’s portfolio turnover is expected to be over 100% annually, as the Fund is actively traded.

Preferred Security Risk. El valor
of preferred securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in
the value of preferred stock. Preferred securities are also subject to credit risk, which is the possibility that an issuer of
preferred stock will fail to make its dividend payments.

Repurchase Agreement Risk. The Fund
may enter into repurchase agreements in which it purchases a security (known as the “underlying security”) from a securities
dealer or bank. In the event of a bankruptcy or other default by the seller of a repurchase agreement, the Fund could experience
delays in liquidating the underlying security and losses in the event of a decline in the value of the underlying security while
the Fund is seeking to enforce its rights under the repurchase agreement.

Short Sale Risk. If a security or
other instrument sold short increases in price, the Fund may have to cover its short position at a higher price than the short
sale price, resulting in a loss. The Fund may have substantial short security positions and must borrow those securities to make
delivery to the buyer. The Fund may not be able to borrow a security that it needs to deliver or it may not be able to close out
a short position at an acceptable price and may have to sell related long positions before it had intended to do so. Thus, the
Fund may not be able to successfully implement its short sale strategy due to limited availability of desired securities or for
other reasons. The Fund may not achieve the desired result of risk mitigation in the implementation of the short sale strategy.

The Fund also may be required to pay a commission and other transactional
and ongoing costs, which would increase the cost of the security sold short. The amount of any gain will be decreased, and the
amount of any loss increased, by the amount of the commission, dividends, interest or expenses the Fund may be required to pay
in connection with the short sale.

Until the Fund replaces a borrowed security,
it is required to maintain a segregated account of cash or liquid assets with a broker or custodian to cover the Fund’s short
posición. Generally, securities held in a segregated account cannot be sold unless they are replaced with other liquid assets.
The Fund’s ability to access the pledged collateral may also be impaired in the event the broker fails to comply with the
terms of the contract. In such instances, the Fund may not be able to substitute or sell the pledged collateral. Adicionalmente,
the Fund must maintain sufficient liquid assets (less any additional collateral pledged to the broker), marked-to-market daily,
to cover the short sale obligations. This may limit the Fund’s investment flexibility, as well as its ability to meet redemption
requests or other current obligations. The timing of redemption requests may require unfavorable timing of the disposal of a short
position which may impact the Fund’s return.

STRIPS Risk. STRIPS are a type of
zero coupon bond. Zero coupon bonds do not make periodic interest payments. Instead, they are sold at a discount from their face
value and can be redeemed at face value when they mature. The market value of a zero-coupon bond is generally more volatile than
the market value of other fixed income securities with similar maturities that make periodic interest payments. Zero coupon bonds
may also respond to changes in interest rates to a greater degree than other fixed income securities with similar maturities and
credit quality.

Variable and Floating Rate Securities
Risk. Variable and floating rate securities may decline in value if market interest rates or interest rates paid by them do
not move as expected. Conversely, variable and floating rate securities will not generally rise in value if market interest rates
decline. Variable and floating rate securities may be subject to greater liquidity risk than other debt securities, meaning that
there may be limitations on the Fund’s ability to sell the securities at any given time. Certain variable and floating rate
securities have an interest rate floor feature, which prevents the interest rate payable by the security from dropping below a
specified level as compared to a reference interest rate (the “reference rate”), such as LIBOR. Such a floor protects
the Fund from losses resulting from a decrease in the reference rate below the specified level. However, if the reference rate
is below the floor, there will be a lag between a rise in the reference rate and a rise in the interest rate payable by the security,
and the Fund may not benefit from increasing interest rates for a significant period of time.

The Fund is not a complete investment program.
As with any mutual fund investment, the Fund’s returns will vary and you could lose money.

Is the Fund right for you?

The Fund may be suitable for:

long-term
investors seeking a high level of current income;
investors
willing to accept price and return fluctuations associated with lower-quality investments;
investors
seeking to diversify their holdings with a portfolio consisting primarily of short-term fixed income securities; o
investors
seeking to reduce their portfolio’s interest rate risk.

Leader Total Return Fund

Convertible Debt Securities Risk. Convertible securities
subject the Fund to the risks associated with both fixed-income securities and equity securities. If a convertible security’s
investment value is greater than its conversion value, its price will likely increase when interest rates fall and decrease when
interest rates rise. If the conversion value exceeds the investment value, the price of the convertible security will tend to fluctuate
directly with the price of the underlying equity security.

Credit Risk. There is a risk that issuers will not
make payments on securities held by the Fund, resulting in losses to the Fund. In addition, the credit quality of securities held
by the Fund may be lowered if an issuer’s financial condition changes. Lower credit quality may lead to greater volatility
in the price of a security and in shares of the Fund. Lower credit quality also may affect liquidity and make it difficult for
the Fund to sell the security. The Fund may invest, directly or indirectly, in “junk bonds.” High yield fixed-income
securities (also known as “junk bonds”) are considered speculative with respect to the issuer’s capacity to pay
interest and repay principal in accordance with the terms of the obligations. This means that, compared to issuers of higher rated
securities, issuers of medium and lower rated securities are less likely to have the capacity to pay interest and repay principal
when due in the event of adverse business, financial or economic conditions and/or may be in default or not current in the payment
of interest or principal. The market values of medium- and lower-rated securities tend to be more sensitive to company-specific
developments and changes in economic conditions than higher-rated securities. The companies that issue these securities often are
highly leveraged, and their ability to service their debt obligations during an economic downturn or periods of rising interest
rates may be impaired. In addition, these companies may not have access to more traditional methods of financing, and may be unable
to repay debt at maturity by refinancing. The risk of loss due to default in payment of interest or principal by these issuers
is significantly greater than with higher-rated securities because medium- and lower-rated securities generally are unsecured
and subordinated to senior debt. Default, or the market’s perception that an issuer is likely to default, could reduce the
value and liquidity of securities held by the Fund, thereby reducing the value of your investment in Fund shares. In addition,
default may cause the Fund to incur expenses in seeking recovery of principal or interest on its portfolio holdings.

Currency Risk. Foreign currency investing through
non-U.S. dollar denominated investments involves significant risks, including market risk, interest rate risk, country risk, counterparty
credit risk and short sale risk. Market risk results from the price movement of foreign currency values in response to shifting
market supply and demand. Since exchange rate changes can readily move in one direction, a currency position carried overnight
or over a number of days may involve greater risk than one carried a few minutes or hours. Interest rate risk arises whenever a
country changes its stated interest rate target associated with its currency. Country risk arises because virtually every country
has interfered with international transactions in its currency. Interference has taken the form of regulation of the local exchange
market, restrictions on foreign investment by residents or limits on inflows of investment funds from abroad. Restrictions on the
exchange market or on international transactions are intended to affect the level or movement of the exchange rate. This risk could
include the country issuing a new currency, effectively making the “old” currency worthless.

Foreign Risk. The Fund could be
subject to greater risks because the Fund’s performance may depend on factors other than the performance of securities of
U.S. issuers. Changes in foreign economies and political climates are more likely to affect the Fund than a mutual fund that invests
exclusively in U.S. dollars and U.S. Issuers. The value of foreign currency denominated securities or foreign currency contracts
is also affected by the value of the local currency relative to the U.S. dollar. There may also be less government supervision
of foreign markets, resulting in non-uniform accounting practices and less publicly available information about issuers of foreign
currency denominated securities. The value of foreign investments, including foreign currency denominated investments, may be affected
by changes in exchange control regulations, application of foreign tax laws (including withholding tax), changes in governmental
administration or economic or monetary policy (in this country or abroad) or changed circumstances in dealings between nations.
In addition, foreign brokerage commissions, custody fees and other costs of investing in foreign securities are generally higher
than in the United States. Investments in foreign issuers, whether denominated in U.S. dollars or foreign currencies, could be
affected by other factors not present in the United States, including expropriation, armed conflict, confiscatory taxation, and
potential difficulties in enforcing contractual obligations. The withdrawal of the United Kingdom from the European Union (so-called
Brexit) may create greater economic uncertainty for European debt issuers and negatively impact their credit quality.

High-Yield Bond Risk. Lower-quality bonds, known as “high-yield”
or “junk” bonds, present a significant risk for loss of principal and interest. These bonds offer the potential for
higher return, but also involve greater risk than bonds of higher quality, including an increased possibility that the bond’s
issuer, obligor or guarantor may not be able to make its payments of interest and principal (credit quality risk). If that happens,
the value of the bond may decrease, and the Fund’s share price may decrease and its income distribution may be reduced. Un
economic downturn or period of rising interest rates (interest rate risk) could adversely affect the market for these bonds and
reduce the Fund’s ability to sell its bonds (liquidity risk). Such securities may also include “Rule 144A” securities,
which are subject to resale restrictions. The lack of a liquid market for these bonds could decrease the Fund’s share price.
The ability of governments to repay their obligations is adversely impacted by default, insolvency, bankruptcy or by political
instability, including authoritarian and/or military involvement in governmental decision-making, armed conflict, civil war, social
instability and the impact of these events and circumstances on a country’s economy and its government’s revenues.
Therefore, government bonds can present a significant risk. Governments may also repudiate their debts in spite of their ability
to pay. A Fund’s ability to recover from a defaulting government is limited because that same government may block access
to court-mandated legal remedies or other means of recovery.

yonterest
Only Securities Risk. Certain securities, called “interest only securities”
involve greater uncertainty regarding the return on investment. An interest only security is not entitled to any principal payments.
If the mortgage assets in a pool prepay or default at rapid rates, it may reduce the amount of interest available to pay a related
interest only security and may cause an investor in that interest only security to fail to recover the investor’s initial
investment.

Issuer-Specific Risk. The value of a specific security
can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. El valor
of securities of smaller sized issuers can be more volatile than that of larger issuers. The value of certain types of securities
can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic developments.

Liquidity Risk. Liquidity risk is the risk that a
security cannot be sold or replaced quickly at or very close to its market value. The Fund’s ability to sell a position in
a security prior to maturity depends, in part, on the existence of a liquid secondary market for such a security. Some securities
may have few market-makers and low trading volume, which tends to increase transaction costs and may make it difficult for the
Fund to dispose of a security at all or at a price which represents current or fair market value.

Management Risk. The Advisor’s
judgments about the attractiveness, value and potential appreciation of particular security in which the Fund invests may prove
to be incorrect and may not produce the desired results.

Market Risk. The net asset value of the Fund will
fluctuate based on changes in the value of the securities in which the Fund invests. The Fund invests in securities which may be
more volatile and carry more risk than some other forms of investment. The price of securities fall because of economic or political
cambios Security prices in general may decline over short or even extended periods of time. Market prices of securities and broad
market segments may be adversely affected by a prominent issuer having experienced losses or by the lack of earnings or such an
issuer’s failure to meet the market’s expectations with respect to new products or services, or even by factors wholly
unrelated to the value or condition of the issuer, such as changes in economic growth rates.

Mortgage-Backed and Asset-Backed Securities Risk. Mortgage-Backed
(“MBS”) and asset-backed securities (“ABS”) are subject to certain additional risks. The default rate on
underlying mortgage loans or asset loans may be higher than anticipated, potentially reducing payments to the Fund. Default rates
are sensitive to overall economic conditions such as unemployment, wage levels and economic growth rates. MBS are susceptible maturity
risk because issuers of securities held by the Fund are able to prepay principal due on these securities, particularly during periods
of declining interest rates. Securities subject to prepayment risk generally offer less potential for gains when interest rates
decline, and may offer a greater potential for loss when interest rates rise. When interest rates decline, borrowers may pay off
their mortgages sooner than expected. This can reduce the returns of the Fund because the Fund may have to reinvest that money
at the lower prevailing interest rates. Prepayment risk as well as the risk that the structure of certain MBS may make their reaction
to interest rates and other factors difficult to predict, making their prices volatile. Generally, rising interest rates tend to
be associated with longer MBS maturities because borrower prepayment rates tend to decline when rates rise. As a result, in a period
of rising interest rates, MBS exhibit additional volatility, known as extension risk. ABS are also subject to maturity risk, although
to a much smaller degree.

Portfolio Turnover Risk. Portfolio turnover refers
to the rate at which the securities held by the Fund are replaced. The higher the rate, the higher the transactional and brokerage
costs associated with the turnover, which may reduce the Fund’s return unless the securities traded can be bought and sold
without corresponding commission costs. Active trading of securities may also increase the Fund’s realized capital gains
or losses, which may affect the taxes you pay as a Fund shareholder. Turnover increased as the Fund made strategic changes to portfolio
allocation to take advantage of the changing interest rate landscape and to address an increase in capital share activity.

Short Sale Risk. If a security or other instrument sold short
increases in price, the Fund may have to cover its short position at a higher price than the short sale price, resulting in a loss.
The Fund may have substantial short security positions and must borrow those securities to make delivery to the buyer. The Fund
may not be able to borrow a security that it needs to deliver or it may not be able to close out a short position at an acceptable
price and may have to sell related long positions before it had intended to do so. Thus, the Fund may not be able to successfully
implement its short sale strategy due to limited availability of desired securities or for other reasons. The Fund may not achieve
the desired result of risk mitigation in the implementation of the short sale strategy.

The Fund also may be required to
pay a commission and other transactional and ongoing costs, which would increase the cost of the security sold short. The amount
of any gain will be decreased, and the amount of any loss increased, by the amount of the commission, dividends, interest or expenses
the Fund may be required to pay in connection with the short sale.

Until the Fund replaces a borrowed
security, it is required to maintain a segregated account of cash or liquid assets with a broker or custodian to cover the Fund’s
short position. Generally, securities held in a segregated account cannot be sold unless they are replaced with other liquid assets.
The Fund’s ability to access the pledged collateral may also be impaired in the event the broker fails to comply with the
terms of the contract. In such instances the Fund may not be able to substitute or sell the pledged collateral. Additionally, the
Fund must maintain sufficient liquid assets (less any additional collateral pledged to the broker), marked-to-market daily, to
cover the short sale obligations. This may limit the Fund’s investment flexibility, as well as its ability to meet redemption
requests or other current obligations. The timing of redemption requests may require unfavorable timing of the disposal of a short
position which may impact the Fund’s return.

Leader Floating Rate Fund

CLO and CDO Risk. Collateral Loan Obligations (“CLOs”)
and collateralized debt obligations (“CDOs”) are securities backed by an underlying portfolio of loan and debt obligations,
respectivamente. CLOs and CDOs issue classes or “tranches” that vary in risk and yield and may experience substantial
losses due to actual defaults, decrease of market value due to collateral defaults and removal of subordinate tranches, market
anticipation of defaults and investor aversion to CLO and CDO securities as a class. Investments in CLO and CDO securities may
be riskier and less transparent than direct investments in the underlying loans and debt obligations.

The risks of investing in CLOs
and CDOs depend largely on the tranche invested in and the type of the underlying debts and loans in the tranche of the CLO or
CDO, respectively, in which the Fund invests. The tranches in a CLO or CDO vary substantially in their risk profile. The senior
tranches are relatively safer because they have first priority on the collateral in the event of default. As a result, the senior
tranches of a CLO or CDO generally have a higher credit rating and offer lower coupon rates than the junior tranches, which offer
higher coupon rates to compensate for their higher default risk. The CLOs and CDOs in which the Fund may invest may incur, or may
have already incurred, debt that is senior to the Fund’s investment. CLOs and CDOs also carry risks including, but not limited
to, interest rate risk and credit risk.

Investments in CLOS and CDOs may
be subject to certain tax provisions that could result in the Fund incurring tax or recognizing income prior to receiving cash
distributions related to such income. CLOs and CDOs that fail to comply with certain U.S. tax disclosure requirements may be subject
to withholding requirements that could adversely affect cash flows and investment results. Any unrealized losses the Fund experiences
with respect to its CLO and CDO investments may be an indication of future realized losses.

The application of risk retention
rules to CLOs and CDOs may affect the overall CLO and CDO market, resulting in fewer investment opportunities for the Fund.

Distribution Risk. There is a risk that shareholders
may not receive distributions from the Fund or that such distributions may be reduced over time, including on a per share basis.
The Fund may have difficulty paying out distributions if income from its investments is recognized before or without receiving
cash representing such income.

Foreign Risk. The Fund could be subject to greater
risks because the Fund’s performance may depend on factors other than the performance of securities of U.S. issuers. Cambios
in foreign economies and political climates are more likely to affect the Fund than a mutual fund that invests exclusively in U.S.
dollars and U.S. Issuers. The value of foreign currency denominated securities or foreign currency contracts is also affected by
the value of the local currency relative to the U.S. dollar. There may also be less government supervision of foreign markets,
resulting in non-uniform accounting practices and less publicly available information about issuers of foreign currency denominated
securities. The value of foreign investments, including foreign currency denominated investments, may be affected by changes in
exchange control regulations, application of foreign tax laws (including withholding tax), changes in governmental administration
or economic or monetary policy (in this country or abroad) or changed circumstances in dealings between nations. In addition, foreign
brokerage commissions, custody fees and other costs of investing in foreign securities are generally higher than in the United
States. Investments in foreign issuers, whether denominated in U.S. dollars or foreign currencies, could be affected by other factors
not present in the United States, including expropriation, armed conflict, confiscatory taxation, and potential difficulties in
enforcing contractual obligations. The withdrawal of the United Kingdom from the European Union (so-called Brexit) may create greater
economic uncertainty for European debt issuers and negatively impact their credit quality.

Government Securities Risk. It is possible that
the U.S. Government would not provide financial support to its agencies or instrumentalities if it is not required to do so by
law. If a U.S. Government agency or instrumentality in which the Fund invests defaults and the U.S. Government does not stand behind
the obligation, the Fund’s share price or yield could fall. Securities of U.S. Government sponsored entities, such as Freddie
Mac or Fannie Mae, are neither issued nor guaranteed by the U.S. Government. The U.S. Government’s guarantee of ultimate
payment of principal and timely payment of interest of the U.S. Government securities owned by the Fund does not imply that the
Fund’s shares are guaranteed by the Federal Deposit Insurance Corporation or any other government agency, or that the price
of the Fund’s shares will not fluctuate.

Interest Rate Risk. The value of the Fund may fluctuate based
on changes in interest rates and market conditions. As interest rates rise, the value of income producing instruments may decrease.
This risk increases as the term of the note increases. Income earned on floating-rate securities will vary as interest rates decrease
or increase. However, the interest rates on floating-rate securities whose interest rates are reset only periodically, can fluctuate
in value as a result of interest rate changes when there is an imperfect correlation between the interest rates on the securities
and prevailing market interest rates.

Liquidity Risk. Liquidity risk is the risk that
a security cannot be sold or replaced quickly at or very close to its market value. The Fund’s ability to sell a position
in a security prior to maturity depends, in part, on the existence of a liquid secondary market for such a security. Some securities
may have few market-makers and low trading volume, which tends to increase transaction costs and may make it difficult for the
Fund to dispose of a security at all or at a price which represents current or fair market value.

Loan and Loan Participation Risk. The secondary
market for loans and loan participations is a private, unregulated inter-dealer or inter-bank resale market. Purchases and sales
of loans and loan participations are generally subject to contractual restrictions that must be satisfied before a loan or loan
participation can be bought or sold. These restrictions may impede the Fund’s ability to buy or sell loans and loan participations
and may negatively impact the transaction price. It may take longer than seven days for transactions in loans to settle. The Fund
may hold cash, sell investments or temporarily borrow from banks or other lenders to meet short-term liquidity needs due to the
extended loan settlement process, such as to satisfy redemption requests from Fund shareholders. Loans and loan participations
may be unsecured which means that they are not collateralized by any specific assets of the borrower.

U.S. federal securities laws afford
certain protections against fraud and misrepresentation in connection with the offering or sale of a security, as well as against
manipulation of trading markets for securities. The typical practice of a lender in relying exclusively or primarily on reports
from the borrower may involve the risk of fraud, misrepresentation, or market manipulation by the borrower. It is unclear whether
U.S. federal securities law protections are available to an investment in a loan. In certain circumstances, loans may not be deemed
to be securities, and in the event of fraud or misrepresentation by a borrower, lenders may not have the protection of the anti-fraud
provisions of the federal securities laws. However, contractual provisions in the loan documents may offer some protections, and
lenders may also avail themselves of common-law fraud protections under applicable state law. Loan participations are indirectly
subject to default risk of the bank granting the participation. Such a default will likely delay the Fund’s access to the
cash flows from underlying loan.

Management Risk. The strategy used by the Advisor
is new and may fail to produce the intended results. The ability of the Fund to meet its investment objectives is directly related
to the Advisor’s investment strategies for the Fund. Your investment in the Fund varies with the effectiveness of the Advisor’s
research, analysis and asset allocation among portfolio securities. If the Advisor’s investment strategies do not produce
the expected results, your investment could be diminished or even lost. The Fund’s board of trustees may change Fund operating
policies and strategies without prior notice or shareholder approval, the effects of which may be adverse.

Mortgage-Backed Securities Risk. When the Fund
invests in MBS and CMBS, the Fund is subject to the risk that, if the underlying borrowers fail to pay interest or repay principal,
the assets backing these securities may not be sufficient to support payments on the securities. Prepayment risk is associated
with mortgage-backed securities. If interest rates rise, there may be fewer prepayments, which would cause the average bond maturity
to rise, increasing the potential for the Fund to lose money. Rising rates may also make it more difficult for borrowers to repay
floating rate loans. The value of these securities may be significantly affected by changes in interest rates, the market’s
perception of issuers, and the creditworthiness of the parties involved. The ability of the Fund to successfully utilize these
instruments may depend on the ability of the Fund’s Advisor to forecast interest rates and other economic factors correctly.
RMBS default rates tend to be sensitive to these conditions and to home prices. CMBS default rates tend to be sensitive to overall
economic conditions and to localized commercial property vacancy rates and prices. Mortgage-backed securities and other securities
issued by participants in housing and commercial real estate

finance, as well as other real estate-related markets have experienced significant weakness and volatility
in recent years. Possible legislation in the area of residential mortgages loans that may collateralize the securities in which
the Fund may invest could negatively impact the value of the Fund’s investments. Any unrealized losses the Fund experiences
with respect to its RMBS and CMBS investments may be an indication of future realized losses.

The value of CMBS is affected by:
(i) changes in general economic and market conditions; (ii) changes in the value of real estate properties; (iii) risks related
to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses;
(v) changes in zoning laws; (vi) casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the
appeal of property to tenants; (viii) and the availability of financing. RMBS are subject to prepayment risk and extension risk.
If interest rates rise, there may be fewer prepayments, which would cause an RMBS’s average maturity to rise, increasing
the potential for the Fund to lose money. If interest rates fall, there may be faster prepayments, which would cause an RMBS’s
average maturity to decline, increasing the risk that the Fund will have reinvest prepayment proceeds at lower interest rates.

Mortgage-backed securities issued
or guaranteed by private issuers are also known as “non-agency MBS”. Non-agency MBS generally offer a higher rate of
interest (but greater credit risk) than securities issued by the U.S. government, and the market for non-agency MBS is smaller
and less liquid than the market for government issued MBS.

The Fund is not a complete investment
program. As with any mutual fund investment, the Fund’s returns will vary and you could lose money.

Temporary Investments: To respond to
adverse market, economic, political or other conditions, each Fund may invest 100% of its total assets, without limitation, in
high-quality short-term debt securities and money market instruments. These short-term debt securities and money market instruments
include: shares of money market mutual funds, commercial paper, certificates of deposit, bankers’ acceptances, U.S. Government
securities and repurchase agreements. While a Fund is in a defensive position, it may not achieve its investment objective. Furthermore,
to the extent that a Fund invests in money market mutual funds for cash positions, there will be some duplication of expenses because
a Fund pays its pro-rata portion of such money market funds’ advisory fees and operational fees. Each Fund may also invest
a substantial portion of its assets in such instruments at any time to maintain liquidity or pending selection of investments in
accordance with its policies.

Portfolio Holdings Disclosure: A description
of the Funds’ policies regarding the release of portfolio holdings information is available in the Funds’ Statement
of Additional Information. Each Fund will post a complete list of its portfolio holdings as of the last day of each fiscal quarter
or semi-annual period within 60 days following the end of such period on its website at www.leadercapital.com. Each Fund’s
portfolio holdings will remain available on its website at least until the next quarterly update. Shareholders may request portfolio
holdings schedules at no charge by calling 1-800-711-9164.

Cybersecurity: The computer systems,
networks and devices used by the Funds and their service providers to carry out routine business operations employ a variety of
protections designed to prevent damage or interruption from computer viruses, network failures, computer and telecommunication
failures, infiltration by unauthorized persons and security breaches. Despite the various protections utilized by the Funds and
their service providers, systems, networks, or devices potentially can be breached. The Funds and their shareholders could be negatively
impacted as a result of a cybersecurity breach.

Cybersecurity breaches can include unauthorized
access to systems, networks, or devices; infection from computer viruses or other malicious software code; and attacks that shut
down, disable, slow, or otherwise disrupt operations, business processes, or website access or functionality. Cybersecurity breaches
may cause disruptions and impact a Fund’s business operations, potentially resulting in financial losses; interference with
the Fund’s ability to calculate their NAV; impediments to trading; the inability of a Fund, the Advisor, and other service
providers to transact business; violations of applicable privacy and other laws; regulatory fines, penalties, reputational damage,
reimbursement or other compensation costs, or additional compliance costs; as well as the inadvertent release of confidential information.

Similar adverse consequences could result from
cybersecurity breaches affecting issuers of securities in which the Funds invest; counterparties with which the Funds engage in
transactions; governmental and other regulatory authorities; exchange and other financial market operators, banks, brokers, dealers,
insurance companies, and other financial institutions (including financial intermediaries and service providers for a Fund’s
shareholders); and other parties. In addition, substantial costs may be incurred by these entities in order to prevent any cybersecurity
breaches in the future.

MANAGEMENT

Investment Advisor: Leader Capital Corp.,
315 W. Mill Plain Blvd., Suite 204, Vancouver, WA 98660, serves as investment advisor to all Funds. John E. Lekas is the President
of the Advisor, which he founded in 1997. The Advisor implements each Fund’s overall investment strategies, identifies securities
for investment, determines when securities should be purchased or sold, selects brokers or dealers to execute transactions for
each Fund’s portfolio and votes any proxies solicited by portfolio companies. As of December 31, 2018, the Advisor had approximately
$331 million in assets under management.

Pursuant to an advisory agreement between the
Leader Funds Trust (the “Trust”), on behalf of the Funds, and Leader Capital Corp., the Advisor is entitled to receive,
on a monthly basis, an annual advisory fee equal to 0.75% on the first $1.25 billion of the average daily net assets and then 0.70%
on assets greater than $1.25 billion of the Leader Short Duration Bond Fund, 0.75% of the average daily net assets of the Leader
Total Return Fund, and 0.65% of the average daily net assets of the Leader Floating Rate Fund. For the fiscal year ended May 31,
2019, the Predecessor Short Duration Fund paid an investment advisory fee to the Advisor at an annual rate of 0.73% the average
daily net assets of the Predecessor Short Duration Fund. For the fiscal year ended May 31, 2019, the Predecessor Total Return Fund
paid an investment advisory fee to the Advisor at an annual rate of 0.75% the average daily net assets of the Predecessor Total
Return Fund. For the fiscal year ended May 31, 2019, the Predecessor Floating Rate Fund accrued an investment advisory fee at an
annual rate of 0.44% the average daily net assets of the Predecessor Floating Rate Fund.

The Advisor has contractually agreed to waive
its fee with regard to the Leader Floating Rate Fund and reimburse that Fund’s expenses so that total annual operating expenses
of the Fund (excluding any front-end or contingent deferred loads, brokerage fees and commissions, 12b-1 fees, Acquired Fund Fees
and Expenses, borrowing costs (such as interest and dividend expense on securities sold short), taxes or extraordinary expenses,
such as litigation) do not exceed 1.00% of the average daily net assets attributable to each of the Fund’s Investor Class
and Institutional Class, through September 30, 2020. Any expense waivers and reimbursements made by the Advisor are subject to
possible recoupment from the Fund in future years on a rolling three year basis (within the three years after the fees have been
waived or reimbursed) if such recoupment does not exceed both: (1) the expense cap in effect at the time of waiver/reimbursement;
and (2) the expense cap in effect at the time of recoupment, if applicable. This agreement may be terminated only by the Fund’s
Board of Trustees, on 60 days written notice to the Advisor.

The Advisor (not the Fund) may pay certain financial
institutions (which may include banks, credit unions, brokers, securities dealers and other industry professionals) a fee for providing
distribution-related services and/or for performing certain administrative servicing functions for Fund shareholders, to the extent
these institutions are allowed to do so by applicable statute, rule or regulation. A discussion regarding the basis for the Board
of Trustees’ approval of the advisory agreements for Leader Short Duration Bond Fund, Leader Total Return Fund and Leader
Floating Rate Fund is included in the Funds’ annual report dated May 31, 2019.

Investment Advisor Portfolio Manager: John
E. Lekas serves as the portfolio manager and is responsible for the investment decisions of each Fund. Mr. Lekas has been responsible
for managing each Predecessor Fund’s portfolio since such Fund’s inception. He has 20 years’ experience as an
investment professional. Prior to founding the Advisor in 1997, Mr. Lekas served as a portfolio manager at Smith Barney where he
focused on discretionary management of bond portfolios worth over $200 million. He received a bachelor’s degree in finance
from the University of Oregon.

The Funds’ Statement of Additional Information
provides information about Mr. Lekas’ compensation structure, other accounts managed by him and his ownership interests in
shares of the Funds.

HOW SHARES ARE PRICED

The net asset value (“NAV”) and
offering price (NAV plus any applicable sales charges) of each class of shares is determined as of the close of the New York Stock
Exchange (“NYSE”) (normally 4:00 p.m. Eastern Time) on each day the NYSE is open for business. NAV is computed by determining
the aggregate market value of all assets of the Fund less its liabilities divided by the total number of each Fund’s shares
outstanding ((asset-liabilities)/number of shares=NAV) attributable to each share class. The NYSE is closed on weekends and New
Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving
Day and Christmas Day. The NAV takes into account the expenses and fees of each Fund, including investment advisory, administration,
and any distribution fees, which are accrued daily. The determination of NAV of each Fund for a particular day is applicable to
all applications for the purchase of shares, as well as all requests for the redemption of shares, received by each Fund (or an
authorized broker or agent, or its authorized designee) before the close of trading on the NYSE on that day.

Generally, securities are valued each day at
the last quoted sales price on each security’s principal exchange. Securities traded or dealt in upon one or more securities
exchanges (whether domestic or foreign) for which market quotations are readily available and not subject to restrictions against
resale shall be valued at the last quoted sales price on the primary exchange or, in the absence of a sale on the primary exchange,
at the mean between the current bid and ask prices on such exchange. Securities primarily traded in the National Association of
Securities Dealers’ Automated Quotation System (“NASDAQ”) National Market System for which market quotations
are readily available shall be valued using the NASDAQ Official Closing Price. Securities that are not traded or dealt in any securities
exchange (whether domestic or foreign) and for which over-the-counter market quotations are readily available generally shall be
valued at the last sale price or, in the absence of a sale, at the mean between the current bid and ask price on such over-the-
counter market. Debt securities not traded on an exchange may be valued at prices supplied by a pricing agent(s) based on broker
or dealer supplied valuations or matrix pricing, a method of valuing securities by reference to the value of other securities with
similar characteristics, such as rating, interest rate and maturity. If market quotations are not readily available, securities
will be valued at their fair market value as determined using the “fair value” procedures approved by the Board. En
these cases, each Fund’s NAV will reflect certain portfolio securities’ fair value rather than their market price.
Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially
different than the value that could be realized upon the sale of that security. The fair value prices can differ from market prices
when they become available or when a price becomes available. The Board has delegated execution of these procedures to a fair value
team composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) Advisor. The team may also
enlist third party consultants such as an audit firm or financial officer of a security issuer on an as-needed basis to assist
in determining a security-specific fair value. The Board reviews and ratifies the execution of this process and the resultant fair
value prices at least quarterly to assure the process produces reliable results.

Each Fund may use independent pricing services
to assist in calculating the value of the Fund’s securities. Although not part of the Advisor’s principal investment
strategy, since each Fund may invest in foreign securities that are primarily listed on foreign exchanges that may trade on weekends
or other days when the Fund does not price its shares, the value of the Fund’s portfolio may change on days when you may
not be able to buy or sell Fund shares. In computing the NAV of each Fund, the Advisor values foreign securities held by each Fund
at the latest closing price on the exchange in which they are traded immediately prior to closing of the NYSE. Prices of foreign
securities quoted in foreign currencies are translated into U.S. dollars at current rates. If events materially affecting the value
of a security in each Fund’s portfolio occur before the Fund prices its shares, the security will be valued at fair value.
For example, if trading in a portfolio security is halted and does not resume before the Fund calculates its NAV, the Advisor may
need to price the security using the Fund’s fair value pricing guidelines. Without a fair value price, short-term traders
could take advantage of the arbitrage opportunity and dilute the NAV of long-term investors. Fair valuation of each Fund’s
portfolio securities can serve to reduce arbitrage opportunities available to short-term traders, but there is no assurance that
fair value pricing policies will prevent dilution of the Fund’s NAV by short-term traders.

With respect to any portion of each Fund’s
assets that are invested in one or more open-end management investment companies that are registered under the 1940 Act, each Fund’s
NAV is calculated based upon the net asset values of the registered open-end management investment companies in which each Fund
invests, and the prospectuses for these companies explain the circumstances under which those companies will use fair value pricing
and the effects of using fair value pricing.

HOW TO PURCHASE SHARES

The Leader Short Duration Bond Fund and the
Leader Total Return Fund each offer four classes of shares: Class A, Class C, Institutional Class and Investor Class. The Leader
Floating Rate Fund offers Institutional Class and Investor Class shares. The main difference between the share classes are the
minimum investment, ongoing fees and sales charges. Class A, Class C and Investor Class shares, pay an annual fee of 0.50%, 1.00%
and 0.50%, respectively, for distribution expenses pursuant to a plan under Rule 12b-1, and Institutional Class shares do not pay
such fees. All share classes may not be available for purchase in all states.

Class A Shares: Class A shares are offered
at their public offering price, which is net asset value per share plus the applicable sales charge. The sales charge varies, depending
on how much you invest. There are no sales charges on reinvested distributions. The Funds reserve the right to waive sales charges.
The following sales charges apply to your purchases of Class A shares of a Fund:

Amount Invested	Sales Charge as a % of Offering Price⁽¹⁾	Sales Charge as a % of Amount Invested	Dealer Reallowance⁽²⁾
Less than $50,000	1.50%	1.52%	1.50%
$50,000 but less than $250,000	1.00%	1.01%	1.00%
$250,000 but less than $500,000	0.50%	0.51%	0.50%
$500,000 or more	None	None	None

(1)

Offering price includes
the front-end sales load. The sales charge you pay may differ slightly from the amount set forth above because of rounding that
occurs in the calculations used to determine your sales charge.

(2)

Represents amount
of sales charge retained by the selling broker-dealer.

You may be able to buy Class A Shares without
a sales charge (i.e. “load-waived”) when you are:

reinvesting dividends or distributions;

participating in an investment advisory
or agency commission program under which you pay a fee to an investment advisor or other firm for portfolio management or brokerage
services;

exchanging an investment in Class A Shares
of another fund for an investment in the Fund;

a current or former director or trustee
of the Fund;

an employee (including the employee’s
spouse, domestic partner, children, grandchildren, parents, grandparents, siblings, and any independent of the employee, as defined
in Section 152 of the Internal Revenue Code) of the Fund’s advisor or its affiliates or of a broker-dealer authorized to
sell shares of the fund;

participants in certain “wrap-fee”
or asset allocation programs or other fee-based arrangements sponsored by broker-dealers and other financial institutions that
have entered into agreements with the Distributor;

purchasing shares through the Fund’s
advisor; o

purchasing shares through a financial services
firm (such as a broker-dealer, investment advisor or financial institution) that has a special arrangement with the Fund.

Whether a sales charge waiver is available for
your retirement plan or charitable account depends upon the policies and procedures of your intermediary. Please consult your financial
adviser for further information.

Right of Accumulation: por
the purposes of determining the applicable reduced sales charge, the right of accumulation allows you to include prior purchases
of Class A shares of a Fund as part of your current investment as well as reinvested dividends. To qualify for this option, you
must be either:

an individual and spouse purchasing shares
for your own account or trust or custodial accounts for your minor children; o

a fiduciary purchasing for any one trust,
estate or fiduciary account, including employee benefit plans created under Sections 401, 403 or 457 of the Internal Revenue Code,
including related plans of the same employer.

If you plan to rely on this right of accumulation,
you must notify your financial advisor or the Funds’ transfer agent, at the time of your purchase. You will need to give
your financial advisor or the Funds’ transfer agent your account numbers. Existing holdings of family members or other related
accounts of a shareholder may be combined for purposes of determining eligibility. If applicable, you will need to provide the
account numbers of your spouse and your minor children as well as the ages of your minor children.

Class C Shares: Class C shares are sold
at NAV without an initial sales charge. This means that 100% of your initial investment is placed into shares of the Fund. Clase
C shares pay up to 1.00% on an annualized basis of the average daily net assets as reimbursement or compensation for service and
distribution-related activities with respect to the Fund and/or shareholder services. Over time, fees paid under this distribution
and service plan will increase the cost of a Class C shareholder’s investment and may cost more than other types of sales
charges.

The Advisor will advance to, or reimburse, a
Fund up to 1.00% in connection with 12b-1 fees advanced to authorized broker-dealers on purchases of Class C shares. Sin embargo,
when the Advisor makes such a payment, the respective Class C shares are subject to a CDSC on shares redeemed within 12 months
of their purchase in the amount advanced to recover commissions paid to your broker-dealer.

Investor Class Shares: Investor Class
Shares of each Fund are sold at NAV without an initial sales charge. Investor Class shares pay up to 0.50% on an annualized basis
of the average daily net assets as reimbursement or compensation for service and distribution-related activities with respect to
the Fund and/or shareholder services. Over time, fees paid under this distribution and service plan will increase the cost of an
Investor Class shareholder’s investment and may cost more than other types of sales charges.

Institutional Shares: Institutional Shares
are sold without any initial sales charge to the following:

Accounts for which the Advisor or any of
its affiliates act as fiduciary, agent, investment Advisor or custodian and clients of the Advisor’s affiliates.

Institutional investors (such as qualified
retirement plans, wrap fee plans and other programs charging asset-based fees) with a minimum initial investment of $10,000
that have received authorization from the Advisor.

Advisory clients of a registered investment
advisor with a fee-based asset management account.

Any accounts established on behalf of registered
investment advisors or their clients by broker-dealers that charge a transaction fee and that have entered into agreements with
the Advisor.

For these purposes, “immediate family”
is defined to include a person’s spouse, parents and children. The initial investment minimum may be waived for persons affiliated
with the Advisor and its affiliated entities.

All share classes may not be available for purchase
in every state.

Voluntary Conversion: Shareholders may
be able to convert shares into Institutional Class shares of a Fund, which have a lower expense ratio, provided certain conditions
are met. This conversion feature is intended for shares held through a financial intermediary offering a fee-based or wrap fee
program that has an agreement with the Advisor or the Distributor for this purpose. In such instances, Class A, Class C or Investor
Class shares may be converted under certain circumstances. Generally, Class C Shares are not eligible for conversion until the
applicable CDSC period has expired. Please contact your financial intermediary for additional information. Not all share classes
are available through all financial intermediaries. If shares of the Fund are converted to a different share class of the Fund,
the transaction will be based on the respective NAV of each class as of the trade date of the conversion. Consequently, a shareholder
may receive fewer shares than originally owned, depending on that day’s NAVs.

Minimum and Additional Investment Amounts:
For Institutional Class shares, the minimum initial investment amount for an account is $2,000,000. There is no minimum for
subsequent investments. For Leader Short Duration Bond Fund and Leader Total Return Fund Investor Class, Class A and Class C shares,
the minimum initial investment amount for all accounts is $2,500 and the minimum subsequent investment is $100. For Leader Floating
Rate Fund Investor Class shares, the minimum initial investment amount for all accounts is $2,500 and the minimum subsequent investment
is $100. The minimum initial investment for each share class may be waived for clients of the Funds’ Advisor and accounts
related to such Advisor clients. Lower minimum initial and additional investments may also be applicable if the shares are purchased
through a financial intermediary or retirement account. There is no minimum investment requirement when you are buying shares by
reinvesting dividends and distributions from the Funds.

Purchasing Shares: You may purchase shares
of a Fund by sending a completed application form to the following address:

via Regular Mail:

or Overnight Mail:

Leader Short Duration
Bond Fund

Leader Total Return Fund

Leader Floating Rate
Fund

c/o Gemini Fund Services, LLC

CORREOS. Box 541150

Omaha, Nebraska 68154

Leader Short Duration
Bond Fund

Leader Total Return Fund

Leader Floating Rate
Fund

c/o Gemini Fund Services, LLC

17645 Wright Street, Suite 200

Omaha, Nebraska 68130

The USA PATRIOT Act requires financial institutions,
including the Funds, to adopt certain policies and programs to prevent money-laundering activities, including procedures to verify
the identity of customers opening new accounts. As requested on the Application, you should supply your full name, date of birth,
social security number and permanent street address. Mailing addresses containing a P.O. Box will not be accepted. This information
will assist a Fund in verifying your identity. Until such verification is made, the Funds may temporarily limit additional share
purchases. In addition, the Funds may limit additional share purchases or close an account if it is unable to verify a shareholder’s
identity. As required by law, the Fund may employ various procedures, such as comparing the information to fraud databases or requesting
additional information or documentation from you, to ensure that the information supplied by you is correct.

Purchase through Brokers:
You may invest in the Funds through brokers or agents who have entered into selling agreements with the Funds’ distributor.
The brokers and agents are authorized to receive purchase and redemption orders on behalf of the Funds. Such brokers are authorized
to designate other intermediaries to receive purchase and redemption orders on the fund’s behalf. Each Fund will be deemed
to have received a purchase or redemption order when an authorized broker or its designee receives the order. The broker or agent
may set their own initial and subsequent investment minimums. You may be charged a fee if you use a broker or agent to buy or redeem
shares of the Funds. Finally, various servicing agents use procedures and impose restrictions that may be in addition to, or different
from those applicable to investors purchasing shares directly from a Fund. You should carefully read the program materials provided
to you by your servicing agent.

Purchase by Wire: Si
you wish to wire money to make an investment in a Fund, please call the Fund at
1-800-711-9164 for wiring instructions and to notify the Fund that a wire transfer is
coming. Any commercial bank can transfer same-day funds via wire. The Fund will normally accept wired funds for investment on the
day received if they are received by the Funds’ designated bank before the close of regular trading on the NYSE. Your bank
may charge you a fee for wiring same-day funds.

Automatic Investment
Plan: You may participate in the Funds’ Automatic Investment Plan, an investment plan that automatically moves money
from your bank account and invests it in the Funds through the use of electronic funds transfers or automatic bank drafts. Tú
may elect to make subsequent investments by transfers of a minimum of $100 on specified days of each month into your established
Fund account for the Leader Short Duration Bond Fund. You may elect to make subsequent investments by transfers of a minimum of
$25 on specified days of each month into your established Fund account for the Leader Total Return Fund. You may elect to make
subsequent investments by transfers of a minimum of $100 on specified days of each month into your established Fund account for
Leader Floating Rate Fund. Please contact the Funds at 1-800-711-9164 para más información
about the Funds’ Automatic Investment Plan.

When Order is Processed: All shares will
be purchased at the NAV per share next determined after the Funds or their designated financial intermediaries receive your application
or request in good order. All requests received in good order by the Funds before 4:00 p.m. (Eastern Time) will be processed on
that same day. Requests received after 4:00 p.m. will be processed on the next business day.

Good Order: When making a purchase request,
make sure your request is in good order. “Good order” means your purchase request includes:

·
the name of the Fund and share class;

·
the dollar amount of shares to be purchased;

·
a completed purchase application or investment stub; y

·
check payable to the “Leader Short Duration Bond Fund”
o
“Leader Total Return Fund” or “Leader Floating Rate Fund.”

Retirement
Plans: You may purchase shares of a Fund for your individual retirement plans. Please call the
Funds at 1-800-711-9164 for the most current listing
and appropriate disclosure documentation on how to open a retirement account.

Each Fund, however, reserves the right, in its
sole discretion, to reject any application to purchase shares. Applications will not be accepted unless they are accompanied by
a check drawn on a U.S. bank, savings and loan, or credit union in U.S. funds for the full amount of the shares to be purchased.
After you open an account, you may purchase additional shares by sending a check together with written instructions stating the
name(s) on the account and the account number, to the above address. Make all checks payable to the applicable Fund. The Funds
will not accept payment in cash, including cashier’s checks or money orders. Also, to prevent check fraud, the Funds will
not accept third party checks, U.S. Treasury checks, credit card checks or starter checks for the purchase of shares.

Nota: Gemini Fund Services, LLC, the
Funds’ transfer agent, (the “Transfer Agent”) will charge a $25 fee against a shareholder’s account, in
addition to any loss sustained by a Fund, for any check returned to the transfer agent for insufficient funds.

HOW TO REDEEM SHARES

Redeeming Shares: You may redeem all
or any portion of the shares credited to your account by submitting a written request for redemption to:

via Regular Mail:

or Overnight Mail:

Leader Short Duration
Bond Fund

Leader Total Return Fund

Leader Floating Rate
Fund

c/o Gemini Fund Services, LLC

CORREOS. Box 541150

Omaha, Nebraska 68154

Leader Short Duration
Bond Fund

Leader Total Return Fund

Leader Floating Rate
Fund

c/o Gemini Fund Services, LLC

17645 Wright Street, Suite 200

Omaha, Nebraska 68130

Redemptions by Telephone:
The telephone redemption privilege is automatically available to all new accounts except retirement accounts. If you do not
want the telephone redemption privilege, you must indicate this in the appropriate area on your account application or you must
write to the Funds and instruct it to remove this privilege from your account.

The proceeds will be sent by mail to the address
designated on your account or wired directly to your existing account in a bank or brokerage firm in the United States as designated
on your application. To redeem by telephone, call 1-800-711-9164. The redemption proceeds
normally will be sent by mail or by wire within three business days after receipt of your telephone instructions. IRA accounts
are not redeemable by telephone. You may redeem shares telephonically up to $100,000.

The Funds reserve the right to suspend the telephone
redemption privileges with respect to your account if the name(s) or the address on the account has been changed within the previous
30 days. Neither the Funds, the Transfer Agent, nor their respective affiliates will be liable for complying with telephone instructions
they reasonably believe to be genuine or for any loss, damage, cost or expenses in acting on such telephone instructions and you
will be required to bear the risk of any such loss. The Funds or the transfer agent, or both, will employ reasonable procedures
to determine that telephone instructions are genuine. If the Funds and/or the transfer agent do not employ these procedures, they
may be liable to you for losses due to unauthorized or fraudulent instructions. These procedures may include, among others, requiring
forms of personal identification prior to acting upon telephone instructions, providing written confirmation of the transactions
and/or tape recording telephone instructions.

Redemptions through Broker:
If shares of a Fund are held by a broker-dealer, financial institution or other servicing agent, you must contact that servicing
agent to redeem shares of the Fund. The servicing agent may charge a fee for this service.

Redemptions by Wire:
You may request that your redemption proceeds be wired directly to your bank account. The Funds’ transfer agent imposes
a $15 fee for each wire redemption and deducts the fee directly from your account. Your bank may also impose a fee for the incoming
wire.

Automatic Withdrawal
Plan: If your individual account, IRA or other qualified plan account has a current account value of at least $10,000 for Investor
Class shares or $3 million for Institutional Class shares, you may participate in the Funds’ Automatic Withdrawal Plan, an
investment plan that automatically moves money to your bank account from a Fund through the use of electronic funds transfers.
You may elect to make subsequent withdrawals by transfers of a minimum of $100 on specified days of each month into your established
bank account. Please contact the Funds at 1-800-711-9164 for more information about
the Funds’ Automatic Withdrawal Plan.

Redemptions in Kind: Each Fund reserves
the right to honor requests for redemption or repurchase orders made by a shareholder during any 90-day period by making payment
in whole or in part in portfolio securities (“redemption in kind”) if the amount of such a request is large enough
to affect operations (if the request is greater than the lesser of $250,000 or 1% of the Fund’s net assets at the beginning
of the 90-day period). In such a case, the Trustees may authorize payment to be made in readily marketable portfolio securities
of a Fund, either through the distribution of selected individual portfolio securities or a pro-rata distribution of all portfolio
securities held by the Fund. The securities will be valued using the same procedures as used in calculating the Fund’s NAV.
A shareholder will be exposed to market risk until these securities are converted to cash and may incur transaction expenses in
converting these securities to cash.

When Redemptions are Sent: Once a Fund
receives your redemption request in “good order” as described below, it will issue a check based on the next determined
NAV following your redemption request. The redemption proceeds normally will be sent by mail or by wire within three business days
after receipt of a request in “good order.” If you purchase shares using a check and soon after request a redemption,
your redemption proceeds will not be sent until the check used for your purchase has cleared your bank.

Good Order: Your redemption
request will be processed if it is in “good order.” To be in good order, the following conditions must be satisfied:

·
The request should be in writing, unless redeeming by telephone,
indicating the number of shares or dollar amount to be redeemed;

·
the request must identify your account number;

·
the request should be signed by you and any other person listed
on the account, exactly as the shares are registered; y

·
if you request that the redemption proceeds be sent to a person,
        bank or an address other than that of record or paid to someone other than the record owner(s), or if the address was changed within
        the last 30 days, or if the proceeds of a requested redemption exceed $100,000, the signature(s) on the request must be medallion
        signature guaranteed by an eligible signature guarantor.

Exchanging Shares: Shares
of a Fund may be exchanged without payment of any exchange fee for shares of the other Fund of the same class at their respective
net asset values.

An exchange of shares is treated for federal
income tax purposes as a redemption (sale) of shares given in exchange by the shareholder, and an exchanging shareholder may, therefore,
realize a taxable gain or loss in connection with the exchange.

With regard to redemptions and exchanges made
by telephone, the Funds’ Transfer Agent will request personal or other identifying information to confirm that the instructions
received from shareholders or their account representatives are genuine. Calls may be recorded. For your protection, we may delay
a transaction or not implement one if we are not reasonably satisfied that the instructions are genuine. If this occurs, we will
not be liable for any loss. The Fund and the transfer agent also will not be liable for any losses if they follow instruction by
phone that they reasonably believe are genuine or if an investor is unable to execute a transaction by phone.

Limitations on Exchanges. The Funds believe
that use of the exchange privilege by investors utilizing market-timing strategies adversely affects the Funds and their shareholders.
Therefore, the Funds will not honor requests for exchanges by shareholders who identify themselves or are identified as “market
timers”. Market timers are investors who repeatedly make exchanges within a short period of time. The Funds reserve the right
to suspend, limit or terminate the exchange privilege of an investor who uses the exchange privilege more than six times during
any twelve-month period, or in the Funds’ opinion, engages in excessive trading that would be disadvantageous to the Funds
or their shareholders. In those emergency circumstances, wherein the SEC authorizes funds to do so, the Funds reserve the right
to change or temporarily suspend the exchange privilege.

When You Need Medallion Signature Guarantees:
If you wish to change the bank or brokerage account that you have designated on your account, you may do so at any time by
writing to the Fund with your signature guaranteed. A medallion signature guarantee assures that a signature is genuine and protects
you from unauthorized account transfers. You will need your signature guaranteed if:

you request a redemption to be made payable
to a person not on record with the Fund,

you request that a redemption be mailed
to an address other than that on record with the Fund,

the proceeds of a requested redemption
exceed $100,000,

any redemption is transmitted by federal
wire transfer to a bank other than the bank of record, or

your address was changed within 30 days
of your redemption request.

Signatures may be guaranteed by any eligible
guarantor institution (including banks, brokers and dealers, credit unions, national securities exchanges, registered securities
associations, clearing agencies and savings associations). Further documentation will be required to change the designated account
if shares are held by a corporation, fiduciary or other organization. A notary public cannot guarantee signatures.

Retirement Plans: If you own an IRA or
other retirement plan, you must indicate on your redemption request whether the Fund should withhold federal income tax. A no ser que
you elect in your redemption request that you do not want to have federal tax withheld, the redemption will be subject to withholding.

Low Balances: If at any time your account
balance in a Fund falls below $2,500 for Class A, Class C and Investor Class shares or $2 million for Institutional Class shares,
the Fund may notify you that, unless the account is brought up to the applicable minimum within 60 days of the notice, your account
could be closed. After the notice period, the Fund may redeem all of your shares and close your account by sending you a check
to the address of record. Your account will not be closed if the account balance drops below the applicable minimum due to a decline
in NAV.

Eso
may take up to 7 days following the receipt of your redemption request to pay out redemption proceeds by check or electronic transfer.
The Fund typically expects to pay redemptions from cash, cash equivalents, and proceeds from the sale of portfolio securities.
These redemption payment methods will be used in regular and stressed market conditions.

FREQUENT PURCHASES AND REDEMPTIONS
OF FUND SHARES

Each Fund discourages and does not accommodate
market timing. Frequent trading into and out of a Fund can harm all Fund shareholders by disrupting the Fund’s investment
strategies, increasing Fund expenses, decreasing tax efficiency and diluting the value of shares held by long-term shareholders.
Each Fund is designed for long-term investors and is not intended for market timing or other disruptive trading activities. Accordingly,
the Funds’ Board has approved policies that seek to curb these disruptive activities while recognizing that shareholders
may have a legitimate need to adjust their Fund investments as their financial needs or circumstances change. The Funds currently
use several methods to reduce the risk of market timing. These methods include:

Committing staff to review,
on a continuing basis, recent trading activity in order to identify trading activity that may be contrary to the Funds’
“Market Timing Trading Policy”;
reject or limit specific
purchase requests; y
reject purchase requests
from certain investors.

Though these methods involve judgments that
are inherently subjective and involve some selectivity in their application, the Funds seek to make judgments and applications
that are consistent with the interests of the Funds’ shareholders.

Each Fund reserves the right to reject or restrict
purchase or exchange requests for any reason, particularly when the shareholder’s trading activity suggests that the shareholder
may be engaged in market timing or other disruptive trading activities. Neither the Funds nor the Advisor will be liable for any
losses resulting from rejected purchase or exchange orders. The Advisor may also bar an investor who has violated these policies
(and the investor’s financial advisor) from opening new accounts with the Funds.

Although the Funds attempt to limit disruptive
trading activities, some investors use a variety of strategies to hide their identities and their trading practices. There can
be no guarantee that the Funds will be able to identify or limit these activities. Omnibus account arrangements are common forms
of holding shares of the Funds. While the Funds will encourage financial intermediaries to apply the Funds’ Market Timing
Trading Policy to their customers who invest indirectly in the Funds, the Funds are limited in its ability to monitor the trading
activity or enforce the Funds’ Market Timing Trading Policy with respect to customers of financial intermediaries. Por ejemplo,
should it occur, a Fund may not be able to detect market timing that may be facilitated by financial intermediaries or made difficult
to identify in the omnibus accounts used by those intermediaries for aggregated purchases, exchanges and redemptions on behalf
of all their customers. More specifically, unless the financial intermediaries have the ability to apply the Funds’ Market
Timing Trading Policy to their customers through such methods as implementing short-term trading limitations or restrictions and
monitoring trading activity for what might be market timing, the Funds may not be able to determine whether trading by customers
of financial intermediaries is contrary to the Funds’ Market Timing Trading Policy. Brokers maintaining omnibus accounts
with the Funds have agreed to provide shareholder transaction information to the extent known to the broker to the Fund upon request.
If the Funds or their transfer agent or shareholder servicing agent suspects there is market timing activity in the account, the
Funds will seek full cooperation from the service provider maintaining the account to identify the underlying participant. At the
request of the Advisor, the service providers may take immediate action to stop any further short-term trading by such participants.

TAX STATUS, DIVIDENDS AND DISTRIBUTIONS

Any sale or exchange of a Fund’s shares
may generate tax liability (unless you are a tax-exempt investor or your investment is in a qualified retirement account). Cuando
you redeem your shares you will generally realize a taxable gain or loss. This is measured by the difference between the proceeds
of the sale and the tax basis for the shares you sold. (To aid in computing your tax basis, you generally should retain your account
statements for the period that you hold shares in the Fund.)

Each Fund intends to distribute all or substantially
all of its net investment income monthly and net capital gains annually. Both distributions will be reinvested in shares of the
Fund unless you elect to receive cash. Dividends from net investment income (including any excess of net short-term capital gain
over net long-term capital loss) are taxable to investors as ordinary income, while distributions of net capital gain (the excess
of net long-term capital gain over net short-term capital loss) are generally taxable as long-term capital gain, regardless of
your holding period for the shares. Any dividends or capital gain distributions you receive from a Fund will normally be taxable
to you when made, regardless of whether you reinvest dividends or capital gain distributions or receive them in cash. Each year
each Fund will inform you of the amount and type of your distributions. IRAs and other qualified retirement plans are exempt from
federal income taxation until retirement proceeds are paid out to the participant.

Your redemptions, including exchanges, will
generally result in a capital gain or loss for federal tax purposes. A capital gain or loss on your investment is the difference
between the tax basis (generally the cost) of your shares, including any sales charges, and the amount you receive when you sell
ellos.

On the account application, you will be asked
to certify that your social security number or taxpayer identification number is correct and that you are not subject to backup
withholding for failing to report income to the IRS. If you are subject to backup withholding or you did not certify your taxpayer
identification number, the IRS requires a Fund to withhold a percentage of any dividend, redemption or exchange proceeds. Cada
Fund reserves the right to reject any application that does not include a certified social security or taxpayer identification
number. If you do not have a social security number, you should indicate on the purchase form that your application to obtain a
number is pending. Each Fund is required to withhold taxes if a number is not delivered to the Fund within seven days.

Fund distributions and gains from the sale or
exchange of your shares will generally be subject to state and local income tax. Non-U.S. investors may be subject to U.S. withholding
and estate tax. You should consult with your tax adviser about the federal, state, local or foreign tax consequences of your investment
in the Fund.

Federal law requires that mutual fund companies
report their shareholders’ cost basis, gain/loss, and holding period to the IRS on each Fund’s shareholders’
Consolidated Form 1099s when “covered” securities are sold. Covered securities are any regulated investment company
and/or dividend reinvestment plan shares acquired on or after January 1, 2012. Each Fund has chosen average cost as its standing
(default) tax lot identification method for all shareholders. A tax lot identification method is the way a Fund will determine
which specific shares are deemed to be sold when there are multiple purchases on different dates at differing NAVs, and the entire
position is not sold at one time. A Fund’s standing tax lot identification method is the method covered shares will be reported
on your Consolidated Form 1099 if you do not select a specific tax lot identification method. You may choose a method different
than the Fund’s standing method and will be able to do so at the time of your purchase or upon the sale of covered shares.
Please refer to the appropriate Internal Revenue Service regulations or consult your tax advisor with regard to your personal circumstances.

For those securities defined as “covered”
under current IRS cost basis tax reporting regulations, a Fund is responsible for maintaining accurate cost basis and tax lot information
for tax reporting purposes. The Fund is not responsible for the reliability or accuracy of the information for those securities
that are not “covered.” The Fund and its service providers do not provide tax advice. You should consult independent
sources, which may include a tax professional, with respect to any decisions you may make with respect to choosing a tax lot identification
método.

This summary is not intended to be and should
not be construed to be legal or tax advice. You should consult your own tax advisors to determine the tax consequences of owning
the Funds’ shares.

DISTRIBUTION OF SHARES

Distributor: Ceros
Financial Services, Inc., (the “Distributor”) located at 1445 Research Boulevard, Suite 530, Rockville, MD 20850, serves
as distributor of the shares of each Fund. The Distributor is a registered broker-dealer and member of the Financial Industry Regulatory
Authority, Inc. (“FINRA”). Shares of the Funds are offered on a continuous basis.

Distribution (12b-1) and Shareholder Servicing
Fees: The Trust, with respect to the Leader Short Duration Bond Fund and the Leader Total Return Fund, has adopted the Trust’s
Master Distribution and Shareholder Servicing Plans for Class A, Class C, and Investor Class shares (the “Plans”) pursuant
to Rule 12b-1 of the 1940 Act which allows each Fund to pay the Fund’s distributor an annual fee for distribution and shareholder
servicing expenses of 0.50%, 1.00%, and 0.50% of Fund’s average daily net assets attributable to Class A, Class C, and Investor
Class shares, respectively. The Trust, with respect to the Leader Floating Rate Fund, has adopted the Trust’s Master Distribution
and Shareholder Servicing Plan for Investor Class shares (the “Plan”) pursuant to Rule 12b-1 of the 1940 Act which
allows the Fund to pay the Fund’s distributor an annual fee for distribution and shareholder servicing expenses of 0.50%
of Fund’s average daily net assets attributable to Investor Class shares. For the current fiscal year the Board has authorized
a rate of 0.38% for Investor Class shares.

The Funds’ Distributor and other entities
are paid pursuant to the Plans, for distribution and shareholder servicing provided and the expenses borne by the Distributor and
others in the distribution of Investor Class, Class A, and Class C Fund shares, including the payment of commissions for sales
of the shares and incentive compensation to and expenses of dealers and others who engage in or support distribution of shares
or who service shareholder accounts, including overhead and telephone expenses; printing and distribution of prospectuses and reports
used in connection with the offering of the Fund’s shares to other than current shareholders; and preparation, printing and
distribution of sales literature and advertising materials. In addition, the Distributor or other entities may utilize fees paid
pursuant to the Plan to compensate dealers or other entities for their opportunity costs in advancing such amounts, which compensation
would be in the form of a carrying charge on any un-reimbursed expenses.

You should be aware that if you had your shares
for a substantial period of time, you may indirectly pay more than the economic equivalent of the maximum front-end sales charge
allowed by FINRA due to the recurring nature of distribution (12b-1) fees.

Additional Compensation
to Financial Intermediaries: The Funds’ Distributor, its affiliates, and the Fund’s Advisor and its affiliates
may each, at its own expense and out of its own assets including their legitimate profits from Fund-related activities, provide
additional cash payments to financial intermediaries who sell shares of the Fund. Financial intermediaries include brokers, financial
planners, banks, insurance companies, retirement or 401(k) plan administrators and others. These payments may be in addition to
the Rule 12b-1 fees that are disclosed elsewhere in this Prospectus. These payments are generally made to financial intermediaries
that provide shareholder or administrative services, or marketing support. Marketing support may include access to sales meetings,
sales representatives and financial intermediary management representatives, inclusion of the Funds on a sales list, including
a preferred or select sales list, or other sales programs. These payments also may be made as an expense reimbursement in cases
where the financial intermediary provides shareholder services to Fund shareholders. The Advisor may, from time to time, provide
promotional incentives to certain investment firms. Such incentives may, at the Advisor’s discretion, be limited to investment
firms who allow their individual selling representatives to participate in such additional commissions.

Householding: To reduce
expenses, only one copy of the prospectus and each annual and semi-annual report will be mailed to those addresses shared by two
or more accounts. If you wish to receive individual copies of these documents, please call the Funds at 1-800-711-9164
on days the Fund is open for business or contact your financial institution. The Funds will begin sending you individual copies thirty days after receiving your request.

FINANCIAL HIGHLIGHTS

The following tables are intended to help you
understand each Predecessor Fund’s financial performance. Certain information reflects financial results for a single Predecessor
Fund share. The total return figures represent the percentage that an investor in a Predecessor Fund would have earned (or lost)
on an investment in the Predecessor Fund (assuming reinvestment of all dividends and distributions). The information for each Predecessor
Fund has been derived from the financial statements audited by BBD, LLP, whose report, along with the Funds’ financial statements,
are included in the Predecessor Funds’ May 31, 2019 annual report, which is available upon request.

Leader Short Duration Bond Fund

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Year Presented.

	Investor Class
	Year Ended May 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	8.91		$	8.98		$	9.05		$	9.79		$	10.10
From investment operations:
Net investment income⁽¹⁾		0.22			0.24	⁽¹⁰⁾		0.20			0.19			0.24
Net realized and unrealized gain (loss) on investments		0.01	⁽⁹⁾		(0.06	)⁽¹⁰⁾		(0.08	)		(0.74	)		(0.23	)
Total from investment operations		0.23			0.18			0.12			(0.55	)		0.01
Paid-in-capital from redemption fees		0.00	⁽⁸⁾		–			–			–			–
Less distributions from:
Net investment income		(0.20	)		(0.25	)		(0.17	)		(0.15	)		(0.24	)
Net realized gains		–			–			–			–			(0.08	)
Return of capital		–			–			(0.02	)		(0.04	)		–
Total distributions		(0.20	)		(0.25	)		(0.19	)		(0.19	)		(0.32	)
Net asset value, end of year	$	8.94		$	8.91		$	8.98		$	9.05		$	9.79
Total return⁽²⁾		2.58	%⁽⁶⁾		1.99	%⁽⁶⁾		1.34	%⁽³⁾		(5.60	)%		0.11	%
Net assets, end of year (000s)	$	43,489		$	54,874		$	89,743		$	193,008		$	335,258
Ratio of gross expenses to average net assets including dividend and interest expense, excluding waiver⁽⁴⁾		1.81	%		1.65	%		1.54	%		1.41	%		1.43	%
Ratio of net expenses to average net assets including dividend and interest expense⁽⁴⁾		1.79	%		1.62	%		1.54	%		1.41	%		1.43	%
Ratio of net expenses to average net assets:
excluding dividends and interest expense⁽⁴⁾		1.66	%		1.54	%		1.48	%		1.41	%		1.43	%
Ratio of net investment income to average net assets^(4,5)		2.48	%		2.68	%⁽¹⁰⁾		2.16	%		2.08	%		2.38	%
Portfolio Turnover Rate		496.37	%		325.30	%		143.80	%		106.98	%		71.38	%

(1)

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

(2)

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 distributions.

(3)

Total Return would have been 1.22% if the reimbursement of trade errors had not been made by the
Advisor.

(4)

The ratios shown do not include the Fund’s proportionate shares of the expenses of the underlying
funds in which the Fund invests.

(5)

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

(6)

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 the net asset values
may differ from the net asset values and returns for shareholder transactions.

(8)

Less than $0.01 per share.

(9)

The amount of net realized and unrealized gain (loss) on investment per share does not accord with
the amounts in the Statements of Operations due to the timing of purchases and sales of Fund shares in relation to fluctuating
market values.

(10)

Net
Investment Income, net realized and unrealized gain(loss) and ratio of net investment income to average net assets were restated.

Leader Short Duration Bond Fund

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Year Presented.

	Institutional Class
	Year Ended May 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	8.98		$	9.05		$	9.12		$	9.86		$	10.17
From investment operations:
Net investment income⁽¹⁾		0.27			0.28	⁽⁸⁾		0.24			0.25			0.29
Net realized and unrealized gain (loss) on investments		0.01	⁽⁷⁾		(0.05	)⁽⁸⁾		(0.08	)		(0.75	)		(0.23	)
Total from investment operations		0.28			0.23			0.16			(0.50	)		0.06
Less distributions from:
Net investment income		(0.24	)		(0.30	)		(0.21	)		(0.18	)		(0.29	)
Net realized gains		–			–			–			–			(0.08	)
Return of capital		–			–			(0.02	)		(0.06	)		–
Total distributions		(0.24	)		(0.30	)		(0.23	)		(0.24	)		(0.37	)
Net asset value, end of year	$	9.02		$	8.98		$	9.05		$	9.12		$	9.86
Total return⁽²⁾		3.11	%⁽⁶⁾		2.54	%⁽⁶⁾		1.79	%⁽³⁾		(5.08	)%		0.62	%
Net assets, end of year (000s)	$	45,994		$	59,181		$	106,392		$	245,710		$	504,366
Ratio of gross expenses to average net assets including dividend and interest expense, excluding waiver⁽⁴⁾		1.30	%		1.15	%		1.04	%		0.91	%		0.93	%
Ratio of net expenses to average net assets including dividend and interest expense⁽⁴⁾		1.29	%		1.12	%		1.04	%		0.91	%		0.93	%
Ratio of net expenses to average net assets:
excluding dividends and interest expense⁽⁴⁾		1.16	%		1.04	%		0.99	%		0.91	%		0.93	%
Ratio of net investment income to average net assets^(4,5)		3.04	%		3.16	%⁽⁸⁾		2.65	%		2.68	%		2.89	%
Portfolio Turnover Rate		496.37	%		325.30	%		143.80	%		106.98	%		71.38	%

(1)

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

(2)

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 distributions, if any.

(3)

Total Return would have been 1.66% if the reimbursement of trade errors had not been made by the
Advisor.

(4)

The ratios shown do not include the Fund’s proportionate shares of the expenses of the underlying
funds in which the Fund invests.

(5)

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

(6)

(7)

(8)

Net Investment Income, net realized and unrealized gain(loss) and ratio of net investment income
to average net assets were restated.

Leader Short Duration Bond Fund

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Year Presented.

	Class A
	Year Ended May 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	8.90		$	8.96		$	9.04		$	9.77		$	10.08
From investment operations:
Net investment income⁽¹⁾		0.22			0.24	⁽¹⁰⁾		0.20			0.20			0.23
Net realized and unrealized gain (loss) on investments		0.00	(8,9)		(0.05	)⁽¹⁰⁾		(0.09	)		(0.74	)		(0.22	)
Total from investment operations		0.22			0.19			0.11			(0.54	)		0.01
Less distributions from:
Net investment income		(0.20	)		(0.25	)		(0.17	)		(0.15	)		(0.24	)
Net realized gains		–			–			–			–			(0.08	)
Return of capital		–			–			(0.02	)		(0.04	)		–
Total distributions		(0.20	)		(0.25	)		(0.19	)		(0.19	)		(0.32	)
Net asset value, end of year	$	8.92		$	8.90		$	8.96		$	9.04		$	9.77
Total return⁽²⁾		2.46	%⁽⁶⁾		2.11	%⁽⁶⁾		1.21	%⁽³⁾		(5.52	)%		0.10	%
Net assets, end of year (000s)	$	6,843		$	6,776		$	10,026		$	23,619		$	46,008
Ratio of gross expenses to average net assets including dividend and interest expense, excluding waiver⁽⁴⁾		1.81	%		1.64	%		1.54	%		1.41	%		1.43	%
Ratio of net expenses to average net assets including dividend and interest expense⁽⁴⁾		1.80	%		1.61	%		1.54	%		1.41	%		1.43	%
Ratio of net expenses to average net assets:
excluding dividends and interest expense⁽⁴⁾		1.66	%		1.55	%		1.48	%		1.41	%		1.43	%
Ratio of net investment income to average net assets^(4,5)		2.52	%		2.66	%⁽¹⁰⁾		2.16	%		2.11	%		2.38	%
Portfolio Turnover Rate		496.37	%		325.30	%		143.80	%		106.98	%		71.38	%

(1)

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

(2)

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 distributions, if any. Class A total return does not reflect
the applicable sales load.

(3)

Total Return would have been 1.04% if the reimbursement of trade errors had not been made by the
Advisor.

(4)

The ratios shown do not include the Fund’s proportionate shares of the expenses of the underlying
funds in which the Fund invests.

(5)

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

(6)

(8)

Less than $0.01 per share.

(9)

(10)

Net Investment Income, net realized and unrealized gain(loss) and ratio of net investment income
to average net assets were restated.

Leader Short Duration Bond Fund

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Year Presented.

	Class C
	Year Ended May 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	8.92		$	8.99		$	9.07		$	9.81		$	10.12
From investment operations:
Net investment income⁽¹⁾		0.18			0.19	⁽⁷⁾		0.15			0.15			0.19
Net realized and unrealized gain (loss) on investments		(0.01	)		(0.05	)⁽⁷⁾		(0.07	)		(0.74	)		(0.23	)
Total from investment operations		0.17			0.14			0.08			(0.59	)		(0.04	)
Less distributions from:
Net investment income		(0.16	)		(0.21	)		(0.15	)		(0.13	)		(0.19	)
Net realized gains		–			–			–			–			(0.08	)
Return of capital		–			–			(0.01	)		(0.02	)		–
Total distributions		(0.16	)		(0.21	)		(0.16	)		(0.15	)		(0.27	)
Net asset value, end of year	$	8.93		$	8.92		$	8.99		$	9.07		$	9.81
Total return⁽²⁾		1.93	%⁽⁶⁾		1.56	%⁽⁶⁾		0.84	%⁽³⁾		(6.07	)%		(0.39	)%
Net assets, end of year (000s)	$	3,362		$	3,915		$	5,934		$	12,488		$	20,337
Ratio of gross expenses to average net assets including dividend and interest expense, excluding waiver⁽⁴⁾		2.31	%		2.15	%		2.04	%		1.91	%		1.93	%
Ratio of net expenses to average net assets including dividend and interest expense⁽⁴⁾		2.29	%		2.11	%		2.04	%		1.91	%		1.93	%
Ratio of net expenses to average net assets:
excluding dividends and interest expense⁽⁴⁾		2.16	%		2.05	%		1.98	%		1.91	%		1.93	%
Ratio of net investment income to average net assets^(4,5)		2.04	%		2.11	%⁽⁷⁾		1.66	%		1.56	%		1.92	%
Portfolio Turnover Rate		496.37	%		325.30	%		143.80	%		106.98	%		71.38	%

(1)

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

(2)

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 distributions, if any.

(3)

Total Return would have been 0.71% if the reimbursement of trade errors had not been made by the
Advisor.

(4)

The ratios shown do not include the Fund’s proportionate shares of the expenses of the underlying
funds in which the Fund invests.

(5)

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

(6)

(7)

Net Investment Income, net realized and
unrealized gain(loss) and ratio of net investment income to average net assets were restated.

Total Return Fund

Per Share Data and Ratios for a Share of Beneficial
Interest Outstanding Throughout Each Year Presented.

	Investor Class
	Year Ended May 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	9.71		$	9.60		$	9.35		$	10.74		$	11.36
From investment operations:
Net investment income⁽¹⁾		0.23			0.28	⁽⁸⁾		0.27			0.40			0.42
Net realized and unrealized gain (loss) on investments		0.37			0.11	^(2,8)		0.24			(1.37	)		(0.46	)
Total from investment operations		0.60			0.39			0.51			(0.97	)		(0.04	)
Less distributions from:
Net investment income		(0.24	)		(0.28	)		(0.22	)		(0.28	)		(0.42	)
Net realized gains		–			–			–			–			(0.16	)
Return of capital		–			–			(0.04	)		(0.14	)		–
Total distributions		(0.24	)		(0.28	)		(0.26	)		(0.42	)		(0.58	)
Net asset value, end of year	$	10.07		$	9.71		$	9.60		$	9.35		$	10.74
Total return⁽³⁾		6.33	%⁽⁷⁾		4.08	%⁽⁷⁾		5.57	%		(9.04	)%		(0.30	)%
Net assets, end of year (000s)	$	10,955		$	8,091		$	14,209		$	20,087		$	80,582
Ratio of net expenses to average net assets including dividend and interest expense⁽⁴⁾		2.42	%		2.28	%		1.81	%		1.54	%		1.55	%⁽⁶⁾
Ratio of net expenses to average net assets:
excluding dividends and interest expense⁽⁴⁾		2.42	%		2,20	%		1.77	%		1.54	%		1.52	%⁽⁶⁾
Ratio of net investment income to average net assets^(4,5)		2.28	%		2.93	%⁽⁸⁾		2.88	%		4.00	%		3.81	%⁽⁶⁾
Portfolio Turnover Rate		397.79	%		535.81	%		175.53	%		208.59	%		173.78	%

(1)

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

(2)

Realized and unrealized gain/loss per share in this caption are balancing amounts necessary to
reconcile the change in net asset value per share for the year, and may not reconcile with aggregate gains and losses in the statement
of operations due to the share transactions for the year.

(3)

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 distributions, if any.

(4)

The ratios shown do not include the Fund’s proportionate shares of the expenses of the underlying
funds in which the Fund invests.

(5)

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

(6)

Inclusive of Advisor’s recapture of waived/reimbursed fees from prior periods.

(7)

(8)

Net Investment Income, net realized and unrealized gain(loss) and ratio of net investment income
to average net assets were restated.

Leader Total Return Fund

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Year Presented.

	Institutional Class
	Year Ended May 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	9.67		$	9.56		$	9.30		$	10.69		$	11.31
From investment operations:
Net investment income⁽¹⁾		0.26			0.31	⁽⁸⁾		0.33			0.48			0.47
Net realized and unrealized gain (loss) on investments		0.39			0.12	^(2,8)		0.24			(1.40	)		(0.46	)
Total from investment operations		0.65			0.43			0.57			(0.92	)		0.01
Less distributions from:
Net investment income		(0.28	)		(0.32	)		(0.26	)		(0.31	)		(0.47	)
Net realized gains		–			–			–			–			(0.16	)
Return of capital		–			–			(0.05	)		(0.16	)		–
Total distributions		(0.28	)		(0.32	)		(0.31	)		(0.47	)		(0.63	)
Net asset value, end of year	$	10.04		$	9.67		$	9.56		$	9.30		$	10.69
Total return⁽³⁾		6.84	%⁽⁷⁾		4.56	%⁽⁷⁾		6.22	%		(8.64	)%		0.18	%
Net assets, end of year (000s)	$	14,162		$	8,831		$	22,291		$	42,043		$	141,065
Ratio of net expenses to average net assets including dividend and interest expense⁽⁴⁾		1.88	%		1.78	%		1.31	%		1.04	%		1.05	%⁽⁶⁾
Ratio of net expenses to average net assets:
excluding dividends and interest expense⁽⁴⁾		1.88	%		1.70	%		1.27	%		1.04	%		1.02	%⁽⁶⁾
Ratio of net investment income to average net assets^(4,5)		2.62	%		3.22	%⁽⁸⁾		3.47	%		4.80	%		4.35	%⁽⁶⁾
Portfolio Turnover Rate		397.79	%		535.81	%		175.53	%		208.59	%		173.78	%

(1)

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

(2)

Realized and unrealized gain/loss per share in this caption are balancing amounts necessary to
reconcile the change in net asset value per share for the period, and may not reconcile with aggregate gains and losses in the
statement of operations due to the share transactions for the period.

(3)

Total return in the above table represents the rate that the investor would have earned or lost
as an investment in the Fund, assuming reinvestment of dividends and distributions, if any.

(4)

The ratios shown do not include the Fund’s proportionate shares of the expenses of the underlying
funds in which the Fund invests.

(5)

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

(6)

Inclusive of Advisor’s recapture of waived/reimbursed fees from prior periods.

(7)

(8)

Net Investment Income, net realized and unrealized gain(loss) and ratio of net investment income
to average net assets were restated.

Leader Total Return Fund

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Year Presented.

	Class A
	Year Ended May 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	9.68		$	9.59		$	9.33		$	10.72		$	11.34
From investment operations:
Net investment income⁽¹⁾		0.16			0.25	⁽⁸⁾		0.28			0.44			0.42
Net realized and unrealized gain (loss) on investments		0.44			0.12	^(2,8)		0.24			(1.41	)		(0.46	)
Total from investment operations		0.60			0.37			0.52			(0.97	)		(0.04	)
Less distributions from:
Net investment income		(0.24	)		(0.28	)		(0.22	)		(0.28	)		(0.42	)
Net realized gains		–			–			–			–			(0.16	)
Return of capital		–			–			(0.04	)		(0.14	)		–
Total distributions		(0.24	)		(0.28	)		(0.26	)		(0.42	)		(0.58	)
Net asset value, end of year	$	10.04		$	9.68		$	9.59		$	9.33		$	10.72
Total return⁽³⁾		6.33	%⁽⁷⁾		3.89	%⁽⁷⁾		5.69	%		(9.06	)%		(0.31	)%
Net assets, end of year (000s)	$	11,529		$	952		$	4,292		$	10,027		$	39,175
Ratio of net expenses to average net assets including dividend and interest expense⁽⁴⁾		2.29	%		2.28	%		1.81	%		1.54	%		1.55	%⁽⁶⁾
Ratio of net expenses to average net assets:
excluding dividends and interest expense⁽⁴⁾		2.29	%		2,20	%		1.77	%		1.54	%		1.52	%⁽⁶⁾
Ratio of net investment income to average net assets^(4,5)		1.58	%		2.55	%⁽⁸⁾		2.94	%		4.44	%		3.86	%⁽⁶⁾
Portfolio Turnover Rate		397.79	%		535.81	%		175.53	%		208.59	%		173.78	%

(1)

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

(2)

(3)

(4)

The ratios shown do not include the Fund’s proportionate shares of the expenses of the underlying
funds in which the Fund invests.

(5)

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

(6)

Inclusive of Advisor’s recapture of waived/reimbursed fees from prior periods.

(7)

(8)

Net Investment Income, net realized and unrealized gain(loss) and ratio of net investment income
to average net assets were restated.

Leader Total Return Fund

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Year Presented.

	Class C
	Year Ended May 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	9.76		$	9.66		$	9.40		$	10.81		$	11.43
From investment operations:
Net investment income⁽¹⁾		0.14			0.23	⁽⁸⁾		0.24			0.39			0.37
Net realized and unrealized gain (loss) on investments		0.41			0.10	^(2,8)		0.24			(1.42	)		(0.46	)
Total from investment operations		0.55			0.33			0.48			(1.03	)		(0.09	)
Paid-in-capital from redemption fees		–			–			–			–			–
Less distributions from:
Net investment income		(0.20	)		(0.23	)		(0.19	)		(0.25	)		(0.37	)
Net realized gains		–			–			–			–			(0.16	)
Return of capital		–			–			(0.03	)		(0.13	)		–
Total distributions		(0.20	)		(0.23	)		(0.22	)		(0.38	)		(0.53	)
Net asset value, end of year	$	10.11		$	9.76		$	9.66		$	9.40		$	10.81
Total return⁽³⁾		5.78	%⁽⁷⁾		3.50	%⁽⁷⁾		5.16	%		(9.60	)%		(0.77	)%
Net assets, end of year (000s)	$	871		$	1,256		$	2,334		$	5,712		$	13,021
Ratio of net expenses to average net assets including dividend and interest expense⁽⁴⁾		2.96	%		2.78	%		2.31	%		2.04	%		2.05	%⁽⁶⁾
Ratio of net expenses to average net assets:
excluding dividends and interest expense⁽⁴⁾		2.96	%		2.70	%		2.27	%		2.04	%		2.02	%⁽⁶⁾
Ratio of net investment income to average net assets^(4,5)		1.32	%		2.39	%⁽⁸⁾		2.47	%		3.90	%		3.36	%⁽⁶⁾
Portfolio Turnover Rate		397.79	%		535.81	%		175.53	%		208.59	%		173.78	%

(1)

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

(2)

Realized and unrealized gain/loss per share in this caption are balancing amounts necessary to
reconcile the change in net asset value per share for the period, and may not reconcile with aggregate gains and losses in the
Statement of Operations due to the share transactions for the period.

(3)

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 distributions, if any.

(4)

The ratios shown do not include the Fund’s proportionate shares of the expenses of the underlying
funds in which the Fund invests.

(5)

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

(6)

Inclusive of Advisor’s recapture of waived/reimbursed fees from prior periods.

(7)

(8)

Net
Investment Income, net realized and unrealized gain(loss) and ratio of net investment income to average net assets were restated.

Leader Floating Rate Fund

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Year/Period Presented.

	Investor Class
							Period Ended
	Year Ended May 31,						May 31,
	2019			2018			2017⁽¹⁾

Net asset value, beginning of year/period	$	10.04		$	10.02		$	10.00
From investment operations:
Net investment income⁽²⁾		0.24			0.23			0.06
Net realized and unrealized gain on investments		0.02			0.02	⁽³⁾		0.01
Total from investment operations		0.26			0.25			0.07
Less distributions from:
Net investment income		(0.24	)		(0.23	)		(0.05	)
Total distributions		(0.24	)		(0.23	)		(0.05	)
Net asset value, end of year/period	$	10.06		$	10.04		$	10.02
Total return⁽⁴⁾		2.64	%		2.55	%⁽⁶⁾		0.68	%^(5,6)
Net assets, end of year/period (000s)	$	28,704		$	13,622		$	1,857
Ratio of total expenses to average net assets before waiver/reimbursed		1.34	%		1.84	%		8.56	%⁽⁷⁾
Ratio of net expenses to average net assets		1.12	%		1.03	%		1.03	%⁽⁷⁾
Ratio of net investment income to average net assets		2.40	%		2.32	%		1.54	%⁽⁷⁾
Portfolio Turnover Rate		248.18	%		128.78	%		43.77	%⁽⁵⁾

(1)

The Fund commenced operations on December 30, 2016.

(2)

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

(3)

Realized and unrealized losses per share in this caption are balancing amounts necessary to reconcile
the change in net asset value per share for the period, and may not reconcile with aggregate gains and losses in the Statement
of Operations due to the share transactions for the period.

(4)

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 distributions, if any.

(6)

Leader Floating Rate Fund

Per Share Data and Ratios for a Share of Beneficial
Interest Outstanding Throughout Each Year/Period Presented.

	Institutional Class
							Period Ended
	Year Ended May 31,						May 31,
	2019			2018			2017⁽¹⁾

Net asset value, beginning of year/period	$	10.04		$	10.03		$	10.00
From investment operations:
Net investment income⁽²⁾		0.27			0.27			0.08
Net realized and unrealized gain on investments		0.04			0.01	⁽³⁾		0.01
Total from investment operations		0.31			0.28			0.09
Less distributions from:
Net investment income		(0.28	)		(0.27	)		(0.06	)
Total distributions		(0.28	)		(0.27	)		(0.06	)
Net asset value, end of year/period	$	10.07		$	10.04		$	10.03
Total return⁽⁴⁾		3.12	%		2.84	%⁽⁶⁾		0.94	%^(5,6)
Net assets, end of year/period (000s)	$	161,041		$	55,680		$	2,163
Ratio of total expenses to average net assets before waiver/reimbursed		0.95	%		1.42	%		11.08	%⁽⁷⁾
Ratio of net expenses to average net assets		0.74	%		0.65	%		0.65	%⁽⁷⁾
Ratio of net investment income to average net assets		2.72	%		2.71	%		2.01	%⁽⁷⁾
Portfolio Turnover Rate		248.18	%		128.78	%		43.77	%⁽⁵⁾

(1)

The Fund commenced operations on December 30, 2016.

(2)

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

(3)

(4)

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 distributions, if any.

(6)

PRIVACY
NOTICE

LEADER FUNDS TRUST

March 2019

FACTS

WHAT DOES LEADER FUNDS TRUST DO WITH YOUR PERSONAL INFORMATION?

¿Por qué?

Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

¿Qué?

The types of personal information we collect
and share depends on the product or service that you have with us. This information can include:

Social Security number and wire transfer instructions
account transactions and transaction history

·
investment experience and purchase history

When you are no longer our customer, we
continue to share your information as described in this notice.

¿Cómo?

All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Leader Funds Trust chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information:	Does Leader Funds Trust share information?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus.	SI	NO
For our marketing purposes – to offer our products and services to you.	NO	We don’t share
For joint marketing with other financial companies.	NO	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and records.	NO	We don’t share
For our affiliates’ everyday business purposes – information about your credit worthiness.	NO	We don’t share
For nonaffiliates to market to you	NO	We don’t share

QUESTIONS?

Call 1-(800) 711-9164

What we do:
How does Leader Funds Trust protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.
How does Leader Funds Trust collect my personal information?	We collect your personal information, for example, when you · open an account or deposit money · direct us to buy securities or direct us to sell your securities · seek advice about your investments We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?	Federal law gives you the right to limit only: · sharing for affiliates’ everyday business purposes – information about your creditworthiness. · affiliates from using your information to market to you. · sharing for nonaffiliates to market to you. State laws and individual companies may give you additional rights to limit sharing.

Definitions
Affiliates	Companies related by common ownership or controlar. They can be financial and nonfinancial companies. · Leader Funds Trust does not share with our affiliates.
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies. · Leader Funds Trust does not share with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. · Leader Funds Trust doesn’t jointly market.

Leader Short Duration
Bond Fund

Leader Total Return
Fund

Leader Floating Rate
Fund

Advisor	Leader Capital Corp. 315 W. Mill Plain Blvd., Suite 204 Vancouver, WA 98660
Distributor	Ceros Financials Services, Inc. 1445 Research Boulevard, Suite 530 Rockville, MD 20850
Legal Counsel	Practus, LLP 11300 Tomahawk Creek Parkway, Suite 310 Leawood, KS 66211
Transfer Agent	Gemini Fund Services, LLC 17645 Wright Street, Suite 200 Omaha, NE 68130
Custodian	Fifth Third Bank 38 Fountain Square Plaza Cincinnati, OH 45202
Independent Registered Public Accounting Firm	BBD, LLP 1835 Market Street, 3^rd FLR Philadelphia, PA 19103

Additional information about the Funds is included
in the Funds’ Statement of Additional Information dated October 1, 2019 (the “SAI”). The SAI is incorporated
into this Prospectus by reference (i.e., legally made a part of this Prospectus). The SAI provides more details about the Funds’
policies and management. Additional information about the Funds’ investments will be available in the Funds’ Annual
and Semi-Annual Reports to Shareholders. In the Funds’ Annual Report, you will find a discussion of the market conditions
and investment strategies that significantly affected the Funds’ performance during its most recent fiscal year.

To obtain a free copy of the SAI and the Annual
and Semi-Annual Reports to Shareholders (when available), or other information about the Funds, or to make shareholder inquiries
about the Funds, please call 1-800-711-9164 or visit http://www.leadercapital.com.
You may also write to:

Leader Short Duration Bond
Fund

Leader Total Return Fund

Leader Floating Rate Fund

c/o Gemini Fund Services, LLC

17645 Wright Street, Suite 200

Omaha, Nebraska 68130

You may review and obtain copies of the Funds’
information (including the SAI) at the SEC Public Reference Room in Washington, D.C. Please call 1-202-551-8090 for information
relating to the operation of the Public Reference Room. Reports and other information about the Funds are available on the EDGAR
Database on the SEC’s Internet site at http://www.sec.gov. Copies of the information may be obtained, after paying a duplicating
fee, by electronic request at the following E-mail address: publicinfo@sec.gov, or by writing the Public Reference Section, Securities
and Exchange Commission, 100 F Street, N.E. Washington, D.C. 20549-0102.

Investment
Company Act File Number: 811-23419

LEADER
SHORT DURATION BOND FUND

INSTITUTIONAL SHARES: LCCIX

INVESTOR SHARES: LCCMX

CLASS A SHARES: LCAMX

CLASS C SHARES: LCMCX

LEADER
TOTAL RETURN FUND

INSTITUTIONAL SHARES: LCTIX

INVESTOR SHARES: LCTRX

CLASS A SHARES: LCATX

CLASS C SHARES: LCCTX

LEADER
FLOATING RATE FUND

INSTITUTIONAL SHARES: LFIFX

INVESTOR SHARES: LFVFX

Each a Series of Leader Funds
Trust (the “Trust”)

STATEMENT OF ADDITIONAL INFORMATION

1 de octubre de 2019

This Statement of Additional Information
(“SAI”) is not a Prospectus and should be read in conjunction with the Prospectus of the Leader Short Duration Bond
Fund, Leader Total Return Fund, and Leader Floating Rate Fund (each a “Fund” and together the “Funds”)
dated October 1, 2019. You can obtain copies of the Funds’ Prospectus, without charge by contacting the Funds’ Transfer
Agent, Gemini Fund Services, LLC, 17645 Wright Street, Suite 200, Omaha, Nebraska 68130 or by calling 1–800-711-9164.
Leader Capital Corp. (the “Advisor” or “Leader”) is the investment advisor to the Funds. Tú
may also obtain a prospectus by visiting our website at www.LeaderCapital.com.

Each Fund is the successor to a
corresponding series within the Northern Lights Fund Trust that was managed by the Advisor and reorganized into the Fund (each
a “Predecessor Fund” and together, the Predecessor Funds”). The audited financial statements of the Predecessor
Funds and the related report of the Predecessor Funds’ independent registered public accounting firm for the fiscal year
ended May 31, 2019 appearing in the Predecessor Funds’ annual report to shareholders and the Predecessor Funds’ semi-annual
reported dated November 30, 2018, are incorporated herein by reference. A copy of the annual report and semi-annual report for
the Predecessor Funds may be obtained upon request and without charge by calling 1-800-711-9164.

TABLE OF CONTENTS

THE FUNDS	1
TYPES OF INVESTMENTS	2
INVESTMENT RESTRICTIONS	34
POLICIES AND PROCEDURES FOR DISCLOSURE OF PORTFOLIO HOLDINGS	36
MANAGEMENT	37
CONTROL PERSONS AND PRINCIPAL HOLDERS	41
INVESTMENT ADVISOR	45
DISTRIBUTION OF FUND SHARES	48
PORTFOLIO MANAGER	51
ALLOCATION OF PORTFOLIO BROKERAGE	52
PORTFOLIO TURNOVER	53
OTHER SERVICE PROVIDERS	53
DESCRIPTION OF SHARES	56
ANTI-MONEY LAUNDERING PROGRAM	57
PURCHASE, REDEMPTION AND PRICING OF SHARES	57
TAXES	61
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	72
LEGAL COUNSEL	72
FINANCIAL STATEMENTS	73
APPENDIX A — PROXY VOTING POLICIES	74
APPENDIX B- DESCRIPTION OF BOND RATINGS	77

THE FUNDS

The Trust was organized as a Delaware statutory
trust on February 1, 2019 and is registered with the U.S. Securities and Exchange Commission (“SEC”) as an open-end
investment management company. The Trust is authorized to offer an unlimited number of shares of beneficial interest, which may
be divided into different series and classes. Each Fund is a diversified series of the Trust. The Trust is governed by its Board
of Trustees (the “Board” or “Trustees”). Each Fund may issue an unlimited number of shares of beneficial
interest. All shares of the Funds have equal rights and privileges. Each share of a Fund is entitled to one vote on all matters
as to which shares are entitled to vote. In addition, each share of a Fund is entitled (i) to participate equally with other shares
in dividends and distributions declared by the Fund and (ii) upon liquidation to its proportionate share of the assets remaining
after satisfaction of outstanding liabilities. Shares of a Fund are fully paid, non-assessable and fully transferable when issued
and have no pre-emptive, conversion or exchange rights. Fractional shares have proportionately the same rights, including voting
rights, as are provided for a full share.

On July 15, 2019, each Fund acquired all the
assets and liabilities of a corresponding series of the Northern Lights Fund Trust, as identified below (each, a “Predecessor
Fund”).

PREDECESSOR FUND	FUND
Leader Short Duration Bond Fund – Institutional Shares	Leader Short Duration Bond Fund – Institutional Shares
Leader Short Duration Bond Fund – Investor Shares	Leader Short Duration Bond Fund – Investor Shares
Leader Short Duration Bond Fund – Class A Shares	Leader Short Duration Bond Fund – Class A Shares
Leader Short Duration Bond Fund – Class C Shares	Leader Short Duration Bond Fund – Class C Shares

Leader Total Return Fund – Institutional Shares	Leader Total Return Fund – Institutional Shares
Leader Total Return Fund – Investor Shares	Leader Total Return Fund – Investor Shares
Leader Total Return Fund – Class A Shares	Leader Total Return Fund – Class A Shares
Leader Total Return Fund – Class C Shares	Leader Total Return Fund – Class C Shares

Leader Floating Rate Fund – Institutional Shares	Leader Floating Rate Fund – Institutional Shares
Leader Floating Rate Fund – Investor Shares	Leader Floating Rate Fund – Investor Shares

Each Fund adopted the prior performance and
financial history of its corresponding Predecessor Fund. Accordingly, all performance and other information shown for the Funds
for periods prior to the date of this SAI is that of the corresponding Predecessor Funds.

Leader Short Duration Bond
Fund and Leader Total Return Fund consists of four classes of shares. Leader Floating Rate Fund consists of two classes of shares.
Each Fund’s investment objective, restrictions and policies are more fully described here and in Prospectus. The Board may
start other series and offer shares of a new fund under the Trust at any time.

Under the Trust’s Agreement and Declaration
of Trust, each Trustee will continue in office until the termination of the Trust or his/her earlier death, incapacity, resignation
or removal. Shareholders can remove a Trustee to the extent provided by the Investment Company Act of 1940, as amended (the “1940
Act”) and the rules and regulations promulgated thereunder. Vacancies may be filled by a majority of the remaining Trustees,
except insofar as the 1940 Act may require the election by shareholders. As a result, normally no annual or regular meetings of
shareholders will be held unless matters arise requiring a vote of shareholders under the Agreement and Declaration of Trust or
the 1940 Act.

TYPES OF INVESTMENTS

The investment objective
of each Fund and a description of its principal investment strategies are set forth under “Risk/Return Summary” in
the Prospectus. Each Fund’s investment objective is not fundamental and may be changed without the approval of a majority
of the outstanding voting securities of the Trust.

The following pages contain
more detailed information in which the Advisor may employ in pursuit of each Fund’s investment objective and a summary of
related risks. To the extent that a type of investment is not disclosed in the Principal Investment Strategies section of the Funds’
prospectus, such type of investment is not used as a principal strategy for the Funds.

A. Asset-Backed
Debt Obligations and Mortgage-Backed Securities. Asset-backed debt obligations represent direct or indirect
participation in, or are secured by and payable from, assets such as motor vehicle installment sales contracts, other installment
loan contracts, home equity loans, leases of various types of property and receivables from credit card or other revolving credit
arrangements.  The credit quality of most asset-backed securities depends primarily on the credit quality of the assets
underlying such securities, how well the entity issuing the security is insulated from the credit risk and bankruptcy of the originator
or any other affiliated entities and the amount and quality of any credit enhancement of the securities.  Payments or
distributions of principal and interest on asset-backed debt obligations may be supported by non-governmental credit enhancements
including letters of credit, reserve funds, over-collateralization and guarantees by third parties.  The market for privately
issued asset-backed debt obligations is smaller and less liquid than the market for government sponsored mortgage-backed securities.

Mortgage-backed securities represent direct
or indirect participations in, or are secured by and payable from, mortgage loans secured by real property, and include single-
and multi-class pass-through securities and Collateralized Mortgage Obligations (“CMOs”). Such securities
may be issued or guaranteed by U.S. Government agencies or instrumentalities, such as the Government National Mortgage Association
and the Federal National Mortgage Association, or by private issuers, generally originators and investors in mortgage loans, including
savings associations, mortgage bankers, commercial banks, investment bankers and special purpose entities (collectively, “private
lenders”). Mortgage-backed securities issued by private lenders may be supported by pools of mortgage loans or
other mortgage-backed securities that are guaranteed, directly or indirectly, by the U.S. Government or one of its agencies or
instrumentalities, or they may be issued without any governmental guarantee of the underlying mortgage assets but with some form
of non-governmental credit enhancement.

The rate of principal payment on mortgage-
and asset-backed securities generally depends on the rate of principal payments received on the underlying assets, which in turn
may be affected by a variety of economic and other factors.  As a result, the yield on any mortgage- or asset-backed
security is difficult to predict with precision and actual yield to maturity may be more or less than the anticipated yield to
maturity.  The yield characteristics of mortgage- and asset-backed debt obligations differ from those of traditional
debt obligations.  Among the principal differences are that interest and principal payments are made more frequently
on mortgage- and asset-backed debt obligations, usually monthly, and that principal may be prepaid at any time because the underlying
assets generally may be prepaid at any time.  As a result, if these debt obligations or securities are purchased at a
premium, a prepayment rate that is faster than expected will reduce yield to maturity, while a prepayment rate that is slower than
expected will have the opposite effect of increasing the yield to maturity.  Conversely, if these debt obligations or
securities are purchased at a discount, a prepayment rate that is faster than expected will increase yield to maturity, while a
prepayment rate that is slower than expected will reduce yield to maturity.  Mortgage-backed securities available for
reinvestment by a Fund are likely to be greater during a period of declining interest rates and, as a result, are likely to be
reinvested at lower interest rates than during a period of rising interest rates.  Accelerated prepayments on debt obligations
or securities purchased at a premium also impose a risk of loss of principal because the premium may not have been fully amortized
at the time the principal is prepaid in full.  The market for privately issued mortgage-backed securities is smaller
and less liquid than the market for government-sponsored mortgage-backed securities.

While asset-backed securities may be issued
with only one class of security, many asset-backed securities are issued in more than one class, each with different payment terms.  Mortgage-backed
securities may be issued with either a single class of security or multiple classes, which are commonly referred to as a CMO.  Multiple
class mortgage- and asset-backed securities are issued for two main reasons.  First, multiple classes may be used as
a method of providing selective credit support.  This is accomplished typically through creation of one or more classes
whose right to payments on the asset-backed security is made subordinate to the right to such payments of the remaining class or
clases Second, multiple classes may permit the issuance of securities with payment terms, interest rates or other
characteristics differing both from those of each other and from those of the underlying assets.  Examples include separate
trading of registered interest and principal of securities (“STRIPS”) (mortgage- and asset-backed securities entitling
the holder to disproportionate interests with respect to the allocation of interest and principal of the assets backing the security),
and securities with class or classes having characteristics that mimic the characteristics of non-asset-backed securities, such
as floating interest rates (i.e., interest rates that adjust as a specified benchmark changes) or scheduled amortization of principal.

The Funds may invest in stripped mortgage-backed
securities, which receive differing proportions of the interest and principal payments from the underlying assets, including interest-only
(“IO”) and principal-only (“PO”) securities. IO and PO mortgage-backed securities may be illiquid. los
market value of such securities generally is more sensitive to changes in prepayment and interest rates than is the case with traditional
mortgage-backed securities, and in some cases such market value may be extremely volatile. IO securities involve greater uncertainty
regarding the return on investment. An interest only security is not entitled to any principal payments. If the mortgage
assets in a pool prepay or default at rapid rates, it may reduce the amount of interest available to pay a related interest only
security and may cause an investor in that interest only security to fail to recover the investor's initial investment

Mortgage- and asset-backed securities backed
by assets, other than as described above, or in which the payment streams on the underlying assets are allocated in a manner different
than those described above may be issued in the future. The Funds may invest in such mortgage- and asset-backed securities
if such investment is otherwise consistent with its investment objectives and policies and with the investment restrictions of
each Fund.

If a Fund purchases mortgage- or asset-backed
securities that are “subordinated” to other interests in the same mortgage pool, the Fund as a holder of those securities
may only receive payments after the pool’s obligations to other investors have been satisfied.  An unexpectedly
high rate of defaults on the mortgages held by a mortgage pool may substantially limit the pool’s ability to make payments
of principal or interest to the Fund as a holder of such subordinated securities, reducing the values of those securities or in
some cases rendering them worthless; the risk of such defaults is generally higher in the case of mortgage pools that include so
called “subprime” mortgages.  An unexpectedly high or low rate of prepayments on a pool’s underlying
mortgages may have a similar effect on subordinated securities.  A mortgage pool may issue securities subject to various
levels of subordination; the risk of non-payment affects securities at each level, although the risk is greater in the case of
more highly subordinated securities.

B. Auction
Rate Securities. Auction Rate Securities (“ARS”) are long-term, variable-rate bonds tied to short-term
interest rates.  ARS have a long-term nominal maturity with interest rates reset through a modified Dutch auction, at
pre-determined short-term intervals, usually, 7, 28 or 35 days.  ARS trade at par and are “callable” (the
issuer can require the bondholder to sell the bond back to the issuer) at par on any interest payment date.  Common issuers
of ARS include municipalities, non-profit hospitals, utilities, housing finance agencies, student loan finance authorities and
universities.  Credit risk associated with ARS is similar to the default risk associated with other municipal and corporate
bond issuers.  Bond insurance is usually used to lower the credit risk of ARS.  Although very infrequent, and
almost always due to a dramatic decline in the credit quality of the issuers, ARS would be subject to liquidity risk if the auction
process used to reset the interest rates failed because there were more orders to sell the ARS than bids to purchase the ARS. Si
an auction process failed, existing holders of ARS would have to continue to hold their ARS until there were a sufficient number
of bids to purchase the ARS at the next auction to calculate the interest rate reset.

C.
Cash Management. los Funds may invest directly in cash, ARS and other short-term
fixed-income securities. All money market instruments can change in value when interest rates or an issuer’s creditworthiness
change dramatically.

D.
Closed-End Investment Companies. Each Fund may invest its assets in "closed-end" investment companies (or
"closed-end funds"), subject to the investment restrictions set forth above. Shares of closed-end funds are typically
offered to the public in a one-time initial public offering by a group of underwriters who retain a spread or underwriting commission
of between 4% or 6% of the initial public offering price. Such securities are then listed for trading on an exchange such as the
New York Stock Exchange or the National Association of Securities Dealers Automated Quotation System (commonly known as "NASDAQ")
and, in some cases, may be traded in other over-the-counter markets. Because the shares of closed-end funds cannot be redeemed
upon demand to the issuer like the shares of an open-end investment company (such as the Funds), investors seek to buy and sell
shares of closed-end funds in the secondary market.

Each Fund generally will purchase shares of
closed-end funds only in the secondary market. A Fund will incur normal brokerage costs on such purchases similar to the expenses
the Fund would incur for the purchase of securities of any other type of issuer in the secondary market. A Fund may, however, also
purchase securities of a closed-end fund in an initial public offering when, in the opinion of the Adviser, based on a consideration
of the nature of the closed-end fund's proposed investments, the prevailing market conditions and the level of demand for such
securities, they represent an attractive opportunity for growth of capital. The initial offering price typically will include a
dealer spread, which may be higher than the applicable brokerage cost if a Fund purchased such securities in the secondary market.

The shares of many closed-end funds, after
their initial public offering, frequently trade at a price per share that is less than the net asset value per share, the difference
representing the "market discount" of such shares. This market discount may be due in part to the investment objective
of long-term appreciation, which is sought by many closed-end funds, as well as to the fact that the shares of closed-end funds
are not redeemable by the holder upon demand to the issuer at the next determined net asset value, but rather are subject to the
principles of supply and demand in the secondary market. A relative lack of secondary market purchasers of closed-end fund shares
also may contribute to such shares trading at a discount to their net asset value.

Each Fund may invest in shares of closed-end
funds that are trading at a discount to net asset value or at a premium to net asset value. There can be no assurance that the
market discount on shares of any closed-end fund purchased by a Fund will ever decrease. In fact, it is possible that this market
discount may increase and a Fund may suffer realized or unrealized capital losses due to further decline in the market price of
the securities of such closed-end funds, thereby adversely affecting the net asset value of the Fund's shares. Similarly, there
can be no assurance that any shares of a closed-end fund purchased by a Fund at a premium will continue to trade at a premium or
that the premium will not decrease subsequent to a purchase of such shares by the Fund.

Closed-end funds may issue senior securities
(including preferred stock and debt obligations) for the purpose of leveraging the closed-end fund's common shares in an attempt
to enhance the current return to such closed-end fund's common shareholders. A Fund's investment in the common shares of closed-end
funds that are financially leveraged may create an opportunity for greater total return on its investment, but at the same time
may be expected to exhibit more volatility in market price and net asset value than an investment in shares of investment companies
without a leveraged capital structure.

E. Collateralized
Loan Obligations (“CLOs”). CLO investments generally represent either a residual economic interest, in the case
of a defaulted tranche, or a performing debt investment collateralized by a portfolio of Senior Loans. The value of CLO investments
generally depend on both the quality and nature of the underlying portfolio it references and also on the specific structural characteristics
of the CLO itself.

CLO Structural Elements

Structurally, CLO vehicles are entities formed
to originate and manage a portfolio of loans. The loans within the CLO vehicle are generally limited to loans which meet established
credit criteria and are subject to concentration limitations in order to limit a CLO vehicle’s exposure to a single credit.

A CLO vehicle is formed by raising multiple
“tranches” of debt (with the most senior tranches being rated “AAA” to the most junior tranches typically
being rated “BB” or “B”) and equity. As interest payments are received the CLO vehicle makes contractual
interest payments to each tranche of debt based on their seniority. If there are funds remaining after each tranche of debt receives
its contractual interest rate and the CLO vehicle meets or exceeds required collateral coverage levels (or other similar covenants)
the remaining funds may be paid to the equity tranche. The contractual provisions setting out this order of payments are set out
in detail in the CLO vehicle’s indenture. These provisions are referred to as the “priority of payments” or the
“waterfall” and determine any other obligations that may be required to be paid ahead of payments of interest and principal
on the securities issued by a CLO vehicle. In addition, for payments to be made to each tranche, after the most senior tranche
of debt, there are various tests which must be complied with, which are different for each CLO vehicle.

CLO indentures typically provide for adjustments
to the priority of payments in the event that certain cashflow or collateral requirements are not maintained. The collateral quality
tests that may divert cashflows in the priority of payments are predominantly determined by reference to the par values of the
underlying loans, rather than their current market values. Accordingly, CLO debt investments allow investors to gain diversified
exposure to the Senior Loan market on a levered basis frequently without being structurally subject to mark-to-market price fluctuations
of the underlying loans. As such, although the current valuations of CLO debt tranches are expected to fluctuate based on price
changes within the loan market, interest rate movements and other macroeconomic factors, those tranches will generally be expected
to continue to receive distributions from the CLO vehicle periodically so long as the underlying portfolio does not suffer defaults,
realized losses or other covenant violations sufficient to trigger changes in the waterfall allocations.

The diagram below is for illustrative purposes
solamente. The CLO structure highlighted below is only a hypothetical structure and structures among CLO vehicles in which the Fund
may invest may vary substantially from the hypothetical example set forth below.

The Syndicated Senior Loan Market

The syndicated leveraged corporate loan market
remains largely inaccessible to a significant portion of investors that are not lenders or approved institutions. The CLO market
permits wider exposure to syndicated Senior Loans, but this market is almost exclusively private and predominantly institutional.

The Senior Loan market is characterized by
various factors, including:

•

Seniority. A Senior Loan typically ranks senior in a company’s capital structure to all other forms of debt or equity. As such, that loan generally maintains the senior-most claim on the company’s assets and cash flow, and, we believe should, all other things being equal, offer the prospect of a relatively more stable and lower-risk holding.

•

Floating rate instruments. A Senior Loan typically contains a floating versus a fixed interest rate, which we believe provides some measure of protection against the risk of interest rate fluctuation.

•

Frequency of interest payments. A Senior Loan typically provides for scheduled interest payments no less frequently than quarterly.

F.
Commercial Paper. Commercial paper is a debt obligation usually issued by corporations (including foreign corporations)
and may be unsecured or secured by letters of credit or a surety bond.  Commercial paper is usually repaid at maturity
by the issuer from the proceeds of the issuance of new commercial paper.  As a result, investment in commercial paper
is subject to the risk the issuer cannot issue enough new commercial paper to satisfy its outstanding commercial paper, also known
as rollover risk.  Commercial paper may be deemed a restricted security, thereby causing it to be illiquid or reducing
its liquidity in certain circumstances.

Asset-backed commercial paper is a form of
commercial paper generally issued by a corporate-sponsored special purpose entity to which the corporation has contributed cash-flowing
receivables like credit card receivables, auto and equipment leases and other receivables. Investment in asset-backed
commercial paper is subject to the risk that insufficient proceeds from the projected cash flows of the contributed receivables
are available to repay the commercial paper at maturity.

SOL.
Convertible Securities. Convertible securities are bonds, debentures, notes, preferred stocks or other securities
that may be converted into or exchanged for a specified amount of common stock of the same or a different issuer within a particular
period of time at a specified price or formula.  A convertible security entitles the holder to receive interest normally
paid or accrued on debt or the dividend paid on preferred stock until the convertible security matures or is redeemed, converted
or exchanged.  Convertible securities have unique investment characteristics in that they generally (1) have higher yields
than common stocks, but lower yields than comparable non-convertible securities, (2) are less subject to fluctuation in value than
the underlying stock since they have fixed income characteristics and (3) provide the potential for capital appreciation if the
market price of the underlying common stock increases.  Most convertible securities currently are issued by U.S. companies,
although a substantial Eurodollar convertible securities market has developed, and the markets for convertible securities denominated
in local currencies are increasing.

The value of a convertible security is a function
of its “investment value” (determined by its yield in comparison with the yields of other securities of comparable
maturity and quality that do not have a conversion privilege) and its “conversion value” (the security’s worth,
at market value, if converted into the underlying common stock). The investment value of a convertible security is influenced
by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. los
credit standing of the issuer and other factors also may have an effect on the convertible security’s investment value. los
conversion value of a convertible security is determined by the market price of the underlying common stock. Si el
conversion value is low relative to the investment value, the price of the convertible security is governed principally by its
investment value. Generally, the conversion value decreases as the convertible security approaches maturity. A
the extent the market price of the underlying common stock approaches or exceeds the conversion price, the price of the convertible
security will be increasingly influenced by its conversion value. A convertible security generally will sell at a premium
over its conversion value by the extent to which investors place value on the right to acquire the underlying common stock while
holding a fixed income security.

A convertible security may be subject to redemption
at the option of the issuer at a price established in the convertible security’s governing instrument. If a convertible
security is called for redemption, a Fund will

be required to permit the issuer to redeem
the security, convert it into the underlying common stock or sell it to a third party.

H.
Debt Obligations. los Funds may invest a portion of their
assets in debt obligations.  Issuers of debt obligations have a contractual obligation to pay interest at a specified
rate on specified dates and to repay principal on a specified maturity date.  Certain debt obligations (usually intermediate-
and long-term bonds) have provisions that allow the issuer to redeem or “call” a bond before its maturity.  Issuers
are most likely to call such securities during periods of falling interest rates and the Fund may have to replace such securities
with lower yielding securities, which could result in a lower return for the Fund.  Risks of investing in debt obligations
may include the following:

PRICE VOLATILITY. The market
value of debt obligations is affected primarily by changes in prevailing interest rates. The market value of a debt
obligation generally reacts inversely to interest-rate changes, which means that, when prevailing interest rates decline, an obligation’s
price usually rises, and when prevailing interest rates rise, an obligation’s price usually declines.

MATURITY. In general, the
longer the maturity of a debt obligation, the higher its yield is, but the greater its sensitivity to changes in interest rates. Conversely,
the shorter the maturity is, the lower the yield, but the lesser its sensitivity to changes in the interest rates, and the greater
the price stability. Commercial paper is generally considered the shortest maturity form of debt obligation.

CREDIT QUALITY. El valor
of debt obligations may also be affected by changes in the credit rating or financial condition of their issuers and obligors. Generally,
the lower the quality rating of a security, the higher the degree of risk as to the payment of interest and return of principal. A
compensate investors for taking on such increased risk, those issuers deemed to be less creditworthy generally must offer their
investors higher interest rates than do issuers with better credit ratings.

In conducting its credit research and analysis,
the Advisor considers both qualitative and quantitative factors to evaluate the creditworthiness of individual issuers. los
Advisor also relies, in part, on credit ratings compiled by a number of Nationally Recognized Statistical Rating Organizations
(“NRSROs”).

DURATION. Duration was developed
as a more precise alternative to the concept of “maturity” for a debt security or portfolio of debt securities.  Traditionally,
a debt security’s maturity has been used as a proxy for the sensitivity of the debt security’s price to changes in
interest rates (which is the “interest rate risk” or “volatility” of the security). Sin embargo,
maturity measures only the time until a debt security provides its final payment, taking no account of the expected timing of the
security’s principal and interest payments prior to maturity.  In contrast, duration incorporates a bond’s
yield, coupon interest payments, final maturity and call features into one measure.  Duration management is one of the
fundamental tools used by the Advisor.

Duration is a measure of the expected life
of a debt obligation on a present value basis. Duration takes the length of the time intervals between the present time
and the time that the interest and principal payments are scheduled or, in the case of a callable bond, the time the principal
payments are expected to be received, and weights them by the present values of the cash to be received at each future point in
hora. For any debt obligation with interest payments occurring prior to the payment of principal, duration is always
less than maturity. In general, all other things being equal, the lower the stated or coupon rate of interest of a fixed
income security, the longer the duration of the security; conversely, the higher the stated or coupon rate of interest of a fixed
income security, the shorter the duration of the security.

Futures, options and options on futures have
durations that, in general, are closely related to the duration of the debt securities that underlie them. Holding long
futures or call option positions will lengthen the duration of the Fund’s portfolio by approximately the same amount of time
that holding an equivalent amount of the underlying debt securities would.

Short futures or put option positions have
durations roughly equal to the negative duration of the debt securities that underlie these positions, and have the effect of reducing
portfolio duration by approximately the same amount of time that selling an equivalent amount of the underlying debt securities
would.

There are some situations where even the standard
duration calculation does not completely reflect the interest rate exposure or projected cash flows of a debt security. por
example, floating- and variable-rate securities often have final maturities of ten or more years; however, their interest rate
exposure and duration correspond to the frequency of the coupon reset.  Another example where the interest rate exposure
is not properly captured by duration is mortgage pass-through securities.  The stated final maturity of such securities
is generally 30 years, but current prepayment rates are more critical in determining the securities’ interest rate exposure. Si
the Fund invests in collateralized mortgage obligations (“CMOs”), the Advisor may consider using the average life versus
its final maturity for the purpose of calculating the Fund’s average duration.  Finally, the duration of a debt
obligation may vary over time in response to changes in interest rates and other market factors.

YO.
U.S. Treasury Securities. los Funds may invest its assets in
U.S. treasuries with no limit.

J. Depositary
Receipts. los Funds may invest in foreign securities by purchasing depositary
receipts, including American Depositary Receipts (“ADRs”) and European Depositary Receipts (“EDRs”), or
other securities convertible into securities of foreign issuers.  These securities may not necessarily be denominated
in the same currency as the securities into which they may be converted.  Generally, ADRs, in registered form, are denominated
in U.S. dollars and are designed for use in the U.S. securities markets, while EDRs, in bearer form, may be denominated in other
currencies and are designed for use in the European securities markets.  ADRs are receipts typically issued by a U.S.
bank or trust company evidencing ownership of the underlying securities.  EDRs are European receipts evidencing a similar
arrangement.  For purposes of each Fund’s investment policies, ADRs and EDRs are deemed to have the same classification
as the underlying securities they represent, except that ADRs and EDRs shall be treated as indirect foreign investments. por
example, an ADR or EDR representing ownership of common stock will be treated as common stock.  Depositary receipts do
not eliminate all of the risks associated with directly investing in the securities of foreign issuers.

ADR facilities may be established as either
“unsponsored” or “sponsored.” While ADRs issued under these two types of facilities are in some
respects similar, there are distinctions between them relating to the rights and obligations of ADR holders and the practices of
market participants.

A depositary may establish an unsponsored facility
without participation by (or even necessarily the permission of) the issuer of the deposited securities, although typically the
depositary requests a letter of non-objection from such issuer prior to the establishment of the facility.  Holders of
unsponsored ADRs generally bear all the costs of such facility.  The depositary usually charges fees upon the deposit
and withdrawal of the deposited securities, the conversion of dividends into U.S. dollars, the disposition of non-cash distributions
and the performance of other services.  The depositary of an unsponsored facility frequently is under no obligation to
pass through voting rights to ADR holders in respect of the deposited securities.  In addition, an unsponsored facility
is generally not obligated to distribute communications received from the issuer of the deposited securities or to disclose material
information about such issuer in the U.S. and there may not be a correlation between such information and the market value of the
depositary receipts.

Sponsored ADR facilities are created in generally
the same manner as unsponsored facilities, except that the issuer of the deposited securities enters into a deposit agreement with
the depositary.  The deposit agreement sets out the rights and responsibilities of the issuer, the depositary and the
ADR holders.  With sponsored facilities, the issuer of the deposited securities generally will bear some of the costs
relating to the facility (such as dividend payment fees of the depositary), although ADR holders continue to bear certain other
costs (such as deposit and withdrawal fees).  Under the terms of most sponsored arrangements, depositaries agree to distribute
notices of shareholder meetings and voting instructions, and to provide shareholder communications and other information to the
ADR holders at the request of the issuer of the deposited securities.

K. Derivative
Instruments.

IN GENERAL. The Funds may
use derivative instruments for any lawful purpose consistent with its investment objectives such as for hedging, managing risk
or obtaining market exposure. Derivative instruments are commonly defined to include securities or contracts whose values
depend on (or “derive” from) the value of one or more other assets, such as securities, currencies, commodities (commonly
referred to as “underlying assets”) or indices.

A derivative instrument generally consists
of, is based upon or exhibits characteristics similar to options or forward contracts.  Options and forward contracts
are considered to be the basic “building blocks” of derivatives.  For example, forward-based derivatives
include forward contracts and swap contracts, as well as exchange-traded futures.  Option-based derivatives include privately
negotiated, over-the-counter (“OTC”) options (including options on forward and cap, floor and collar swap contracts)
and exchange-traded options on futures.  Diverse types of derivatives may be created by combining options or forward
contracts in different ways, and by applying these structures to a wide range of underlying assets.

An option is a contract in which the “holder”
(the buyer) pays a certain amount (“premium”) to the “writer” (the seller) to obtain the right, but not
the obligation, to buy from the writer (in a “call”) or sell to the writer (in a “put”) a specific asset
at an agreed upon price at or before a certain time. The holder pays the premium at inception and has no further financial
obligation. The holder of an option-based derivative generally will benefit from favorable movements in the price of
the underlying asset but is not exposed to corresponding losses due to adverse movements in the value of the underlying asset. los
writer of an option-based derivative usually will receive fees or premiums, but generally is exposed to losses due to adverse changes
in the value of the underlying asset or index.

A forward is a sales contract between a buyer
(holding the “long” position) and a seller (holding the “short” position) for an asset with delivery deferred
until a future date.  The buyer agrees to pay a fixed price at the agreed future date and the seller agrees to deliver
the asset.  The seller hopes that the market price on the delivery date is less than the agreed upon price, while the
buyer hopes for the contrary.  The change in market value of a forward-based derivative generally is roughly proportional
to the change in value of the underlying asset.

HEDGING. The Funds may use
derivative instruments to protect against possible adverse changes in the market value of securities held in, or anticipated to
be held in, its portfolio.  Derivatives may also be used to “lock-in” realized but unrecognized gains in
the value of its portfolio securities.  Hedging strategies, if successful, can reduce the risk of loss by wholly or partially
offsetting the negative effect of unfavorable price movements in the investments being hedged.  However, hedging strategies
can also reduce the opportunity for gain by offsetting the positive effect of favorable price movements in the hedged investments. A
the extent that a hedge matures prior to or after the disposition of the investment subject to the hedge, any gain or loss on the
hedge will be realized earlier or later than any offsetting gain or loss on the hedged investment.

MANAGING RISK/MARKET EXPOSURE. los
Funds may also use derivative instruments to manage the risks of its portfolio. Risk management strategies include,
but are not limited to, facilitating the sale of portfolio securities, managing the effective maturity or duration of debt obligations
in its portfolio, or establishing a position in the derivatives markets as a substitute for buying, selling, holding certain securities
or creating or altering exposure to certain asset classes, such as equity, debt, foreign securities and floating-rate debt securities. los
use of derivative instruments may provide a less expensive, more expedient or more specifically focused way to invest than “traditional”
securities (i.e., stocks or bonds) would.

EXCHANGE-TRADED AND OTC DERIVATIVES. Derivative
instruments may be exchange-traded or traded in OTC transactions between private parties.  Exchange-traded derivatives
are standardized options and futures contracts traded in an auction on the floor of a regulated exchange.  Exchange contracts
are generally very liquid.  The exchange clearinghouse is the counterparty of every contract.  Thus, each holder
of an exchange contract bears the credit risk of the clearinghouse (and has the benefit of its financial strength) rather than
that of a particular counterparty.  On the other hand, OTC derivative transactions are not traded on established exchanges
and are not guaranteed by the creditworthiness of any exchange.  Consequently,

OTC derivative transactions are subject to
additional risks, such as the credit risk of the counterparty to the instrument. OTC derivative transactions are less
liquid than exchange-traded derivatives since they often can only be closed out with the other party to the transaction.

RISKS. The use of derivative
instruments involves risks as described below. Risks pertaining to particular derivative instruments are described in
the sections that follow.

(1)
MARKET RISK. The primary risk of derivatives is the same as the risk of the underlying assets, namely that
the value of the underlying asset may go up or down.  Adverse movements in the value of an underlying asset can expose
the Fund to losses.  Derivative instruments may include elements of leverage and, accordingly, the fluctuation of the
value of the derivative instrument in relation to the underlying asset may be magnified.  The successful use of derivative
instruments depends upon a variety of factors, particularly the ability of the Advisor to predict movements of the securities,
currencies and commodity markets, which requires different skills than predicting changes in the prices of individual securities. Ahí
can be no assurance that any particular strategy adopted will succeed.  The Advisor’s decision to engage in a derivative
transaction will reflect its judgment that the derivative transaction will provide value to the Fund and its shareholders, and
is consistent with the Fund’s objectives, investment limitations and operating policies.  In making such a judgment,
the Advisor will analyze the benefits and risks of the derivative transaction and weigh them in the context of the Fund’s
entire portfolio and investment objectives.

(2) CREDIT
RISK. The Funds will be subject to the risk that a loss may be sustained as a result of the failure of a counter-party
to comply with the terms of a derivative instrument.  The counterparty risk for exchange-traded derivative instruments
is generally less than for privately negotiated or OTC derivative instruments, since generally a clearing agency, (which is the
issuer or counterparty to each exchange-traded instrument), provides a guarantee of performance for exchange-traded derivatives. por
privately negotiated instruments, there is no similar clearing agency guarantee.  In all transactions, the Fund will
bear the risk that the counterparty will default, and this could result in a loss of the expected benefit of the derivative transaction
and possibly other losses.  The Funds will enter into transactions in derivative instruments only with counterparties
that the Advisor reasonably believes are capable of performing under the contract.  In certain circumstances, the Advisor
will obtain collateral for the Fund from the counterparty to minimize this credit risk.

(3) CORRELATION
RISK. Correlation risk is the risk that there might be imperfect correlation, or even no correlation, between price
movements of an instrument and price movements of investments being hedged.  For example, if the value of a derivative
instrument used in a short hedge (such as writing a call option, buying a put option or selling a futures contract) increased by
less than the decline in value of the hedged investments, the hedge would not be perfectly correlated.  With a perfect
hedge, the value of the combined position remains unchanged for any change in the price of the underlying asset. Con
an imperfect hedge, the values of the derivative instrument and the associated hedge are not perfectly correlated. Cuando
a derivative transaction is used to completely hedge another position, changes in the market value of the combined position (the
derivative instrument plus the position being hedged) result from an imperfect correlation between the price movements of the instruments
and the position hedged.    Such a lack of correlation might occur due to factors unrelated to the value of
the investments being hedged, such as speculative or other pressures on the markets in which these derivative instruments are traded. los
effectiveness of hedges using derivative instruments based on indices will depend, in part, on the degree of correlation between
price movements in the index and price movements in the investments being hedged.

(4) LIQUIDITY
RISK. Derivatives are also subject to liquidity risk.  Liquidity risk is the risk that a derivative instrument
cannot be sold, terminated early or replaced quickly at or very close to its market value.  Generally, exchange contracts
are very liquid because the exchange clearinghouse is the counterparty of every contract.  OTC transactions are less
liquid than exchange-traded derivatives since they often can only be closed out with the other party to the transaction. UNA
Fund might be required by applicable regulatory requirements or by the derivative instrument to maintain assets as “cover,”
maintain segregated accounts, designate assets on its books and records, post collateral and/or make margin payments when it takes
positions in derivative instruments involving obligations to third parties (i.e., instruments other than purchased options). Si
a Fund were unable to close out its positions in such instruments, it might be required

to continue to maintain such assets, accounts
or collateral or make such payments until the position expired, matured or was closed out.  The requirements might impair
a Fund’s ability to sell a portfolio security or make an investment at a time when it would otherwise be favorable to do
so, or require that the Fund sell a portfolio security at a disadvantageous time.  A Fund’s ability to sell or
close out a position in an instrument prior to expiration or maturity depends, in part, on the existence of a liquid secondary
market for such derivative instruments or, in the absence of such a market, the ability and willingness of the counterparty to
enter into a transaction closing out the position.  Therefore, there is no assurance that any derivatives position can
be sold or closed out at a time and price that is favorable to the Fund.

(5) LEGAL
RISK. Legal risk is the risk of loss caused by the legal unenforceability of a party’s obligations under the
derivative instrument. While a party seeking price certainty agrees to surrender the potential upside in exchange for
downside protection, the party taking the risk is looking for a positive payoff. Despite this voluntary assumption of
risk, a counterparty that has lost money in a derivative transaction may try to avoid payment by exploiting various legal uncertainties
about certain derivative instruments.

(6) SYSTEMIC
OR “INTERCONNECTION” RISK. Interconnection risk is the risk that a disruption in the financial markets
will cause difficulties for all market participants.  In other words, a disruption in one market will spill over into
other markets, perhaps creating a chain reaction.  Much of the OTC derivatives market takes place among the OTC dealers
themselves, which creates a large interdependent web of financial obligations.  This interdependence raises the possibility
that a default by one large dealer could create losses at other dealers and destabilize the entire market for OTC derivative instruments.

GENERAL LIMITATIONS. los
use of derivative instruments is subject to applicable regulations of the SEC, the several options and futures exchanges upon which
they may be traded, the Commodity Futures Trading Commission (“CFTC”) and various state regulatory authorities. En
addition, the Fund’s ability to use derivative instruments may be limited by certain tax considerations.

The Trust, on behalf of the Funds, has filed
with the National Futures Association, a notice claiming an exemption from the definition of the term “commodity pool operator”
in accordance with Rule 4.5 under the Commodity Exchange Act (“CEA”), as amended, and the rules of the Commodity Futures
Trading Commission promulgated thereunder, with respect to the Funds’ operation. Accordingly, the Funds are not subject to
registration or regulation as a commodity pool operator under the CEA.

LEVERAGED DERIVATIVE TRANSACTIONS. los
SEC has identified certain trading practices involving derivative instruments that have the potential for leveraging the Fund’s
assets in a manner that raises senior security issues as defined under the 1940 Act.  In order to avoid creating a senior
security and to limit the potential problems for leveraging of the Fund’s assets when the Fund invests in derivatives, the
SEC has stated that each Fund may use coverage or designation of the Fund’s liquid assets.  To the extent required
by SEC guidelines, the Fund will not enter into any such leveraging derivative transactions unless it owns either: (1) an offsetting
(“covered”) position in securities, options, futures or derivative instruments; or (2) cash or liquid securities positions
with a value sufficient at all times to cover its potential obligations to the counterparty to the extent that the position is
not “covered.”  Assets designated on the Fund’s records cannot be sold while the related derivative
position is open unless they are replaced with similar assets and such designated assets may be deemed illiquid. Como
a result, the designation of a large portion of the Fund’s assets could impede portfolio management or the Fund’s ability
to meet redemption requests or other current obligations.

In some cases, a Fund may be required to maintain
or limit exposure of a specified percentage of its assets to a particular asset class. In such cases, when the Fund
uses a derivative instrument to increase or decrease exposure to an asset class and is required by applicable SEC guidelines to
designate liquid assets on its books and records to secure its obligations under such derivative instruments, the Advisor may,
where reasonable in light of the circumstances, measure compliance with the applicable percentage by reference to the nature of
the economic exposure created through the use of the derivative instrument and not by reference to the nature of the exposure arising
from the liquid assets designated on the Fund’s books and records (unless another interpretation is specified by applicable
regulatory requirements).

OPTIONS. The Funds may use
options for any lawful purpose consistent with its investment objectives such as hedging or managing risk.  An option
is a contract in which the “holder” (the buyer) pays a certain amount (“premium”) to the “writer”
(the seller) to obtain the right, but not the obligation, to buy from the writer (in a “call”) or sell to the writer
(in a “put”) a specific asset at an agreed upon price (“strike price” or “exercise price”)
at or before a certain time (“expiration date”).  The holder pays the premium at inception and has no further
financial obligation.  The holder of an option will benefit from favorable movements in the price of the underlying asset
but is not exposed to corresponding losses due to adverse movements in the value of the underlying asset.  The writer
of an option will receive fees or premiums but is exposed to losses due to adverse changes in the value of the underlying asset. los
Fund may buy (hold) or write (sell) put and call options on assets, such as securities, currencies, financial commodities and indices
of debt and equity securities (“underlying assets”) and enter into closing transactions with respect to such options
to terminate an existing position. Options used by the Fund may include European, American and Bermuda style options. Si
an option is exercisable only at maturity, it is a “European” option; if it is also exercisable prior to maturity,
it is an “American” option and if it is exercisable only at certain times, it is a “Bermuda” option.

The Funds may hold (buy) and write (sell) put
and call options on underlying assets and enter into closing transactions with respect to such options to terminate an existing
posición. The purchase of a call option serves as a long hedge, and the purchase of a put option serves as a short hedge. Writing
put or call options can enable a Fund to enhance income by reason of the premiums paid by the purchaser of such options.  Writing
call options serves as a limited short hedge because declines in the value of the hedged investment would be offset to the extent
of the premium received for writing the option.  However, if the security appreciates to a price higher than the exercise
price of the call option, it can be expected that the option will be exercised and the Fund will be obligated to sell the security
at less than its market value or will be obligated to purchase the security at a price greater than that at which the security
must be sold under the option.  All or a portion of any assets used as cover for OTC options written by the Fund would
be considered illiquid.  Writing put options serves as a limited long hedge because decreases in the value of the hedged
investment would be offset to the extent of the premium received for writing the option.  However, if the security depreciates
to a price lower than the exercise price of the put option, it can be expected that the put option will be exercised and the Fund
will be obligated to purchase the security at more than its market value.

The value of an option position will reflect,
among other things, the historical price volatility of the underlying investment, the current market value of the underlying investment,
the time remaining until expiration, the relationship of the exercise price to the market price of the underlying investment and
general market conditions.

Each Fund may effectively terminate its right
or obligation under an option by entering into a closing transaction.  For example, a Fund may terminate its obligation
under a call or put option that it had written by purchasing an identical call or put option; this is known as a closing purchase
transaction.  Conversely, the Fund may terminate a position in a put or call option it had purchased by writing an identical
put or call option; this is known as a closing sale transaction.  Closing transactions permit the Fund to realize the
profit or limit the loss on an option position prior to its exercise or expiration.

The Funds may purchase or write both exchange-traded
and OTC options.  Exchange-traded options are issued by a clearing organization affiliated with the exchange on which
the option is listed that, in effect, guarantees completion of every exchange-traded option transaction.  In contrast,
OTC options are contracts between the Fund and the other party to the transaction (“counterparty”) (usually a securities
dealer or a bank) with no clearing organization guarantee.  Thus, when the Fund purchases or writes an OTC option, it
relies on the counterparty to make or take delivery of the underlying investment upon exercise of the option.  Failure
by the counterparty to do so would result in the loss of any premium paid by the Fund as well as the loss of any expected benefit
of the transaction.

A Fund’s ability to establish and close
out positions in exchange-listed options depends on the existence of a liquid market.  The Funds intend to purchase or
write only those exchange-traded options for which there appears to be a liquid secondary market.  However, there can
be no assurance that such a market will exist at any particular time.  Closing transactions can be made for OTC options
only by negotiating directly with the counterparty, or by a transaction in the secondary market if any such market exists. A pesar de que
the Fund will enter into OTC options only with counterparties that are expected to be capable of entering into closing

transactions with the Fund, there is no assurance
that the Fund will in fact be able to close out an OTC option at a favorable price prior to expiration. In the event
of insolvency of the counterparty, the Fund might be unable to close out an OTC option position at any time prior to its expiration. Si
the Fund were unable to effect a closing transaction for an option it had purchased, it would have to exercise the option to realize
any profit.

The Funds may engage in options transactions
on indices in much the same manner as the options on securities discussed above, except the index options may serve as a hedge
against overall fluctuations in the securities market represented by the relevant market index.

The writing and purchasing of options is a
highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio
securities transactions. Imperfect correlation between the options and securities markets may detract from the effectiveness
of the attempted hedging.

SPREAD OPTION TRANSACTIONS. los
Funds may use spread transactions for any lawful purpose consistent with its investment objectives such as hedging or managing
risk.  The Funds may purchase covered spread options from securities dealers.  Such covered spread options
are not presently exchange-listed or exchange-traded.  The purchase of a spread option gives the Fund the right to put,
or sell, a security that it owns at a fixed dollar spread or fixed yield spread in relation to another security that the Fund does
not own, but which is used as a benchmark.  The risk to the Fund in purchasing covered spread options is the cost of
the premium paid for the spread option and any transaction costs.  In addition, there is no assurance that closing transactions
will be available.  The purchase of spread options will be used to protect the Fund against adverse changes in prevailing
credit quality spreads, i.e., the yield spread between high quality and lower quality securities.  Such protection is
only provided during the life of the spread option.

FUTURES CONTRACTS. The Funds
may use futures contracts for any lawful purpose consistent with its investment objectives such as hedging or managing risk. los
Funds may enter into futures contracts, including, but not limited to, interest rate futures and index futures. los
Funds may also purchase put and call options, and write covered put and call options, on futures in which it is allowed to invest. los
purchase of futures or call options thereon can serve as a long hedge, and the sale of futures or the purchase of put options thereon
can serve as a short hedge.  Writing covered call options on futures contracts can serve as a limited short hedge, and
writing covered put options on futures contracts can serve as a limited long hedge, using a strategy similar to that used for writing
covered options in securities.  The Funds may also purchase and sell interest rate futures contracts on a short-term
trading basis as a means of managing the duration of and interest rate exposure of the Fund.  The Funds may also write
put options on futures contracts while at the same time purchasing call options on the same futures contracts in order to create
synthetically a long futures contract position. Such options would have the same strike prices and expiration dates. los
Funds will engage in this strategy only when the Advisor believes it is more advantageous to the Fund than purchasing the futures
contract.

To the extent required by regulatory authorities,
the Funds only enter into futures contracts that are traded on national futures exchanges and are standardized as to maturity date
and underlying financial instrument. Futures exchanges and trading are regulated under the CEA by the CFTC. A pesar de que
techniques other than sales and purchases of futures contracts could be used to reduce a Fund’s exposure to market or interest
rate fluctuations, a Fund may be able to hedge its exposure more effectively and perhaps at a lower cost through the use of futures
contracts.

An interest rate futures contract provides
for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument (e.g.,
debt security) for a specified price at a designated date, time and place. An index futures contract is an agreement
pursuant to which the parties agree to take or make delivery of an amount of cash equal to the difference between the value of
the index at the close of the last trading day of the contract and the price at which the index futures contract was originally
written. Transaction costs are incurred when a futures contract is bought or sold and margin deposits must be maintained. UNA
futures contract may be satisfied by delivery or purchase, as the case may be, of the instrument or by payment of the change in
the cash value of the index. More commonly, futures contracts are closed out prior to delivery by entering into an offsetting
transaction in a matching futures

contract.  Although the value of
an index might be a function of the value of certain specified securities, no physical delivery of those securities is made. Si
the offsetting purchase price is less than the original sale price, a Fund realizes a gain; if it is more, a Fund realizes a loss.  Conversely,
if the offsetting sale price is more than the original purchase price, a Fund realizes a gain; if it is less, a Fund realizes a
loss.  The transaction costs must also be included in these calculations.  There can be no assurance, however,
that a Fund will be able to enter into an offsetting transaction with respect to a particular futures contract at a particular
hora. If a Fund is not able to enter into an offsetting transaction, a Fund will continue to be required to maintain
the margin deposits on the futures contract.

No price is paid by a Fund upon entering into
a futures contract.  Instead, at the inception of a futures contract, a Fund is required to deposit in a segregated account
with its custodian, in the name of the futures broker through whom the transaction was effected, “initial margin” consisting
of cash and/or other appropriate liquid assets in an amount generally equal to 10% or less of the contract value.  Margin
must also be deposited when writing a call or put option on a futures contract, in accordance with applicable exchange rules.  Unlike
margin in securities transactions, initial margin on futures contracts does not represent a borrowing, but rather is in the nature
of a performance bond or good-faith deposit that is returned to a Fund at the termination of the transaction if all contractual
obligations have been satisfied.  Under certain circumstances, such as periods of high volatility, a Fund may be required
by an exchange to increase the level of its initial margin payment, and initial margin requirements might be increased generally
in the future by regulatory action.

Subsequent “variation margin” payments
are made to and from the futures broker daily as the value of the futures position varies, a process known as “marking to
market.”  Variation margin does not involve borrowing, but rather represents a daily settlement of a Fund’s
obligations to or from a futures broker.  When a Fund purchases an option on a future, the premium paid plus transaction
costs is all that is at risk.  In contrast, when a Fund purchases or sells a futures contract or writes a call or put
option thereon, it is subject to daily variation margin calls that could be substantial in the event of adverse price movements. Si
a Fund has insufficient cash to meet daily variation margin requirements, it might need to sell securities at a time when such
sales are disadvantageous.  Purchasers and sellers of futures positions and options on futures can enter into offsetting
closing transactions by selling or purchasing, respectively, an instrument identical to the instrument held or written.  Positions
in futures and options on futures may be closed only on an exchange or board of trade that provides a secondary market. los
Funds intend to enter into futures transactions only on exchanges or boards of trade where there appears to be a liquid secondary
mercado. However, there can be no assurance that such a market will exist for a particular contract at a particular time.

Under certain circumstances, futures exchanges
may establish daily limits on the amount that the price of a future or option on a futures contract can vary from the previous
day’s settlement price; once that limit is reached, no trades may be made that day at a price beyond the limit. Daily
price limits do not limit potential losses because prices could move to the daily limit for several consecutive days with little
or no trading, thereby preventing liquidation of unfavorable positions.

If a Fund were unable to liquidate a futures
or option on a futures contract position due to the absence of a liquid secondary market or the imposition of price limits, it
could incur substantial losses. A Fund would continue to be subject to market risk with respect to the position. En
addition, except in the case of purchased options, a Fund would continue to be required to make daily variation margin payments
and might be required to maintain the position being hedged by the future or option or to designate liquid assets on its books
and records.

Certain characteristics of the futures market
might increase the risk that movements in the prices of futures contracts or options on futures contracts might not correlate perfectly
with movements in the prices of the investments being hedged.  For example, all participants in the futures and options
on futures contracts markets are subject to daily variation margin calls and might be compelled to liquidate futures or options
on futures contracts positions whose prices are moving unfavorably to avoid being subject to further calls.  These liquidations
could increase price volatility of the instruments and distort the normal price relationship between the futures or options and
the investments being hedged.  Also, because initial margin deposit requirements in the futures markets are less onerous
than margin requirements in the securities markets, there might be increased participation by speculators in the futures markets. Esta
participation also might cause

temporary price distortions. En
addition, activities of large traders in both the futures and securities markets involving arbitrage, “program trading”
and other investment strategies might result in temporary price distortions.

Single-stock futures are futures traded on
individual stocks.  When buying or selling single-stock futures, a Fund is obligated to fulfill the terms of the contract
upon expiration, unless it offsets the position before then.  Single-stock futures carry higher margin requirements than
regular futures contracts.  Trading single-stock futures also involves the risk of losing more than a Fund’s initial
investment.

FOREIGN CURRENCY DERIVATIVES. los
Funds may purchase and sell foreign currency on a spot basis, and may use currency-related derivative instruments such as options
on foreign currencies, futures on foreign currencies, options on futures on foreign currencies and forward currency contracts (i.e.,
an obligation to purchase or sell a specific currency at a specified future date, which may be any fixed number of days from the
contract date agreed upon by the parties, at a price set at the time the contract is entered into).  The Funds may use
these instruments for hedging or any other lawful purpose consistent with each Fund’s investment objectives, including transaction
hedging, anticipatory hedging, cross hedging, proxy hedging and position hedging.  A Fund’s use of currency-related
derivative instruments will be directly related to a Fund’s current or anticipated portfolio securities, and the Fund may
engage in transactions in currency-related derivative instruments as a means to protect against some or all of the effects of adverse
changes in foreign currency exchange rates on its investment portfolio.  In general, if the currency in which a portfolio
investment is denominated appreciates against the U.S. dollar, the dollar value of the security will increase.  Conversely,
a decline in the exchange rate of the currency would adversely affect the value of the portfolio investment expressed in U.S. dollars.

For example, the Funds might use currency-related
derivative instruments to “lock in” a U.S. dollar price for a portfolio investment, thereby enabling a Fund to protect
itself against a possible loss resulting from an adverse change in the relationship between the U.S. dollar and the subject foreign
currency during the period between the date the security is purchased or sold and the date on which payment is made or received. los
Funds also might use currency-related derivative instruments when the Advisor believes that one currency may experience a substantial
movement against another currency, including the U.S. dollar, and it may use currency-related derivative instruments to sell or
buy the amount of the former foreign currency, approximating the value of some or all of a Fund’s portfolio securities denominated
in such foreign currency.  Alternatively, where appropriate, a Fund may use currency-related derivative instruments to
hedge all or part of its foreign currency exposure through the use of a basket of currencies or a proxy currency where such currency
or currencies act as an effective proxy for other currencies.  The use of this basket hedging technique may be more efficient
and economical than using separate currency-related derivative instruments for each currency exposure held by a Fund.  Furthermore,
currency-related derivative instruments may be used for short hedges – for example, the Fund may sell a forward currency contract
to lock in the U.S. dollar equivalent of the proceeds from the anticipated sale of a security denominated in a foreign currency.

In addition, the Funds may use a currency-related
derivative instrument to shift exposure to foreign currency fluctuations from one foreign country to another foreign country where
the Advisor believes that the foreign currency exposure purchased will appreciate relative to the U.S. dollar and thus better protect
the Fund against the expected decline in the foreign currency exposure sold.  For example, if a Fund owns securities
denominated in a foreign currency and the Advisor believes that currency will decline, it might enter into a forward contract to
sell an appropriate amount of the first foreign currency, with payment to be made in a second foreign currency that the Advisor
believes would better protect the Fund against the decline in the first security than would a U.S. dollar exposure.  Hedging
transactions that use two foreign currencies are sometimes referred to as “cross hedges.”  The effective
use of currency-related derivative instruments by a Fund in a cross hedge is dependent upon a correlation between price movements
of the two currency instruments and the underlying security involved, and the use of two currencies magnifies the risk that movements
in the price of one instrument may not correlate or may correlate unfavorably with the foreign currency being hedged.  Such
a lack of correlation might occur due to factors unrelated to the value of the currency instruments used or investments being hedged,
such as speculative or other pressures on the markets in which these instruments are traded.

A Fund also might seek to hedge against changes
in the value of a particular currency when no hedging instruments on that currency are available or such hedging instruments are
more expensive than certain other hedging instruments. In such cases, a Fund may hedge against price movements in that
currency by entering into transactions using currency-related derivative instruments on another foreign currency or a basket of
currencies, the values of which the Advisor believes will have a high degree of positive correlation to the value of the currency
being hedged. The risk that movements in the price of the hedging instrument will not correlate perfectly with movements
in the price of the currency being hedged is magnified when this strategy is used.

The use of currency-related derivative instruments
by a Fund involves a number of risks. The value of currency-related derivative instruments depends on the value of the
underlying currency relative to the U.S. dollar. Because foreign currency transactions occurring in the interbank market
might involve substantially larger amounts than those involved in the use of such derivative instruments, a Fund could be disadvantaged
by having to deal in the odd lot market (generally consisting of transactions of less than $1 million) for the underlying foreign
currencies at prices that are less favorable than for round lots (generally consisting of transactions of greater than $1 million).

There is no systematic reporting of last sale
information for foreign currencies or any regulatory requirement that quotations available through dealers or other market sources
be firm or revised on a timely basis.  Quotation information generally is representative of very large transactions in
the interbank market and thus might not reflect odd-lot transactions where rates might be less favorable.  The interbank
market in foreign currencies is a global, round-the-clock market.  To the extent the U.S. options or futures markets
are closed while the markets for the underlying currencies remain open, significant price and rate movements might take place in
the underlying markets that cannot be reflected in the markets for the derivative instruments until they re-open.

Settlement of transactions in currency-related
derivative instruments might be required to take place within the country issuing the underlying currency. Thus, a Fund
might be required to accept or make delivery of the underlying foreign currency in accordance with any U.S. or foreign regulations
regarding the maintenance of foreign banking arrangements by U.S. residents and might be required to pay any fees, taxes and charges
associated with such delivery assessed in the issuing country.

When a Fund engages in a transaction in a currency-related
derivative instrument, it relies on the counterparty to make or take delivery of the underlying currency at the maturity of the
contract or otherwise complete the contract.  In other words, a Fund will be subject to the risk that a loss may be sustained
by the Fund as a result of the failure of the counterparty to comply with the terms of the transaction.  The counterparty
risk for exchange-traded instruments is generally less than for privately negotiated or OTC currency instruments, since generally
a clearing agency, which is the issuer or counterparty to each instrument, provides a guarantee of performance. por
privately negotiated instruments, there is no similar clearing agency guarantee.  In all transactions, a Fund will bear
the risk that the counterparty will default, and this could result in a loss of the expected benefit of the transaction and possibly
other losses to a Fund.  A Fund will enter into transactions in currency-related derivative instruments only with counterparties
that the Advisor reasonably believes are capable of performing under the contract.

Purchasers and sellers of currency-related
derivative instruments may enter into offsetting closing transactions by selling or purchasing, respectively, an instrument identical
to the instrument purchased or sold.  Secondary markets generally do not exist for forward currency contracts, with the
result that closing transactions generally can be made for forward currency contracts only by negotiating directly with the counterparty. Así,
there can be no assurance that a Fund will in fact be able to close out a forward currency contract (or any other currency-related
derivative instrument) at a time and price favorable to the Fund.  In addition, in the event of insolvency of the counterparty,
a Fund might be unable to close out a forward currency contract at any time prior to maturity.  In the case of an exchange-traded
instrument, a Fund will be able to close the position out only on an exchange that provides a market for the instruments. los
ability to establish and close out positions on an exchange is subject to the maintenance of a liquid market, and there can be
no assurance that a liquid market will exist for any instrument at any specific time.  In the case of a

privately negotiated instrument, a Fund will
be able to realize the value of the instrument only by entering into a closing transaction with the issuer or finding a third party
buyer for the instrument. While the Funds will enter into privately negotiated transactions only with entities that
are expected to be capable of entering into a closing transaction, there can be no assurance that a Fund will in fact be able to
enter into such closing transactions.

The precise matching of currency-related derivative
instrument amounts and the value of the portfolio securities involved generally will not be possible because the value of such
securities, measured in the foreign currency, will change after the currency-related derivative instrument position has been established. Así,
a Fund might need to purchase or sell foreign currencies in the spot (cash) market. The projection of short-term currency
market movements is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain.

Permissible foreign currency options will include
options traded primarily in the OTC market. Although options on foreign currencies are traded primarily in the OTC market,
a Fund will normally purchase or sell OTC options on foreign currency only when the Advisor reasonably believes a liquid secondary
market will exist for a particular option at any specific time.

There will be a cost to a Fund of engaging
in transactions in currency-related derivative instruments that will vary with factors such as the contract or currency involved,
the length of the contract period and the market conditions then prevailing. A Fund may have to pay a fee or commission
for using these instruments or, in cases where the instruments are entered into on a principal basis, foreign exchange dealers
or other counterparties will realize a profit based on the difference (“spread”) between the prices at which they are
buying and selling various currencies. Thus, for example, a dealer may offer to sell a foreign currency to a Fund at
one rate, while offering a lesser rate of exchange should a Fund desire to resell that currency to the dealer.

When required by the SEC guidelines, a Fund
will designate liquid assets on its books and records to cover potential obligations under currency-related derivative instruments. A
the extent a Fund’s assets are so set aside, they cannot be sold while the corresponding currency position is open, unless
they are replaced with similar assets. As a result, if a large portion of a Fund’s assets is so set aside, this
could impede portfolio management or a Fund’s ability to meet redemption requests or other current obligations.

The Advisor’s decision to engage in a
transaction in a particular currency-related derivative instrument will reflect the Advisor’s judgment that the transaction
will provide value to a Fund and its shareholders and is consistent with a Fund’s objectives and policies. En
making such a judgment, the Advisor will analyze the benefits and risks of the transaction and weigh them in the context of a Fund’s
entire portfolio and objectives.  The effectiveness of any transaction in a currency-related derivative instrument is
dependent on a variety of factors, including the Advisor’s skill in analyzing and predicting currency values and upon a correlation
between price movements of the currency instrument and the underlying security.  There might be imperfect correlation,
or even no correlation, between price movements of an instrument and price movements of investments being hedged.  Such
a lack of correlation might occur due to factors unrelated to the value of the investments being hedged, such as speculative or
other pressures on the markets in which these instruments are traded.  In addition, a Fund’s use of currency-related
derivative instruments is always subject to the risk that the currency in question could be devalued by the foreign government. En
such a case, any long currency positions would decline in value and could adversely affect any hedging position maintained by a
Fund.

The Funds’ dealing in currency-related
derivative instruments will generally be limited to the transactions described above. However, the Funds reserve the
right to use currency-related derivative instruments for different purposes and under different circumstances. Por supuesto,
the Funds are not required to use currency-related derivative instruments and will not do so unless deemed appropriate by the Advisor. Eso
also should be realized that use of these instruments does not eliminate, or protect against, price movements in the Fund’s
securities that are attributable to other (i.e., non-currency related) causes. Moreover, while the use of currency-related
derivative instruments may reduce the risk of loss due to a decline in the value of a hedged

currency, at the same time the use of these
instruments tends to limit any potential gain that may result from an increase in the value of that currency.

“SWAP” DERIVATIVE TRANSACTIONS. los
Funds may enter into interest rate, credit default, securities index, commodity or security and currency exchange rate swap agreements
for any lawful purpose consistent with a Fund’s investment objective, such as for the purpose of attempting to obtain, enhance
or preserve a particular desired return or spread at a lower cost to a Fund than if a Fund had invested directly in an instrument
that yielded that desired return or spread.  A Fund also may enter into swaps in order to protect against an increase
in the price of, or the currency exchange rate applicable to, securities that a Fund anticipates purchasing at a later date.  Swap
agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a few weeks to several
years.  In a standard “swap” transaction, two parties agree to exchange the returns (or differentials in
rates of return) earned or realized on particular predetermined investments or instruments.  The gross returns to be
exchanged or “swapped” between the parties are calculated with respect to a “notional amount” (i.e., the
amount or value of the underlying asset used in computing the particular interest rate, return or other amount to be exchanged)
in a particular foreign currency, or in a “basket” of securities representing a particular index.  Swap agreements
may include (1) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the
extent that interest rates exceed a specified rate, or “cap;” (2) interest rate floors, under which, in return for
a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified level, or “floor”
and (3) interest rate collars, under which a party sells a cap and purchases a floor, or vice versa, in an attempt to protect itself
against interest rate movements exceeding given minimum or maximum levels or “collar” amounts.

The “notional amount” of the swap
agreement is the agreed upon amount or value of the underlying asset used for calculating the obligations that the parties to a
swap agreement have agreed to exchange. Under most swap agreements entered into by a Fund, the obligations of the parties
would be exchanged on a “net basis.” Consequently, a Fund’s obligation (or rights) under a swap agreement
will generally be equal only to the net amount to be paid or received under the agreement based on the relative notional values
of the positions held by each party to the agreement (“net amount”) and not the notional amount differences themselves. UNA
Fund’s obligation under a swap agreement will be accrued daily (offset against amounts owed to a Fund) and any accrued but
unpaid net amounts owed to a swap counterparty will be covered by designating liquid assets on the Fund’s books and records.

Whether the Funds’ use of swap agreements
will be successful in furthering its investment objectives will depend, in part, on the Advisor’s ability to predict correctly
whether certain types of investments are likely to produce greater returns than other investments and the changes in the future
values, indices or rates covered by the swap agreement.  Swap agreements may be considered to be illiquid.  Moreover,
a Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy
of a swap agreement counterparty.  A Fund will enter into swap agreements only with counterparties that the Advisor reasonably
believes are capable of performing under the swap agreements.  If there is a default by the other party to such a transaction,
the Fund will have to rely on its contractual remedies (which may be limited by bankruptcy, insolvency or similar laws) pursuant
to the agreements related to the transaction.  Certain restrictions imposed on the Fund by the Internal Revenue Code
of 1986 (“IRC”) may limit the Fund’s ability to use swap agreements.  The swaps market is largely unregulated.

CREDIT DERIVATIVES. Crédito
derivatives are a form of derivative that are divided into two basic types, credit default swaps and total return swaps, and are
usually governed by the standard ISDA Master Agreement terms and conditions.  A credit default swap involves a protection
buyer and a protection seller.  The Fund may be either a protection buyer or seller.  The protection buyer
makes periodic premium payments to the protection seller during the swap term in exchange for the protection seller agreeing to
make certain defined payments to the protection buyer in the event that certain defined credit events occur with respect to a particular
security, issuer or basket of securities. A total return swap involves a total return receiver and a total return payor. los
Fund may either be a total return receiver or payor.  Generally, the total return payor sells to the total return receiver
an amount equal to all cash flows and price appreciation on a defined security or asset payable at periodic times during the swap
term (i.e., credit risk) in return for a periodic payment from the total return receiver based on a designated index (e.g., the
London Interbank Offer

Rate (“LIBOR”)) and spread plus
the amount of any price depreciation on the reference security or asset.  The total return payor does not need to own
the underlying security or asset to enter into a total return swap.  The final payment at the end of the swap term includes
final settlement of the current market price of the underlying reference security or asset, and payment by the applicable party
for any appreciation or depreciation in value.  Usually, collateral must be posted by the total return receiver to secure
the periodic interest-based and market price depreciation payments depending on the credit quality of the underlying reference
security and creditworthiness of the total return receiver, and the collateral amount is marked-to-market daily equal to the market
price of the underlying reference security or asset between periodic payment dates.  Another type of credit derivative
is the credit-linked notes and other forms of debt obligations with an embedded credit default swap component. En esto
type of credit derivative, payments of principal and interest are linked to the performance of one or more reference debt securities
or assets.  In all of these credit derivative transactions, the same general risks of derivative transactions are present,
but they offer greater risks of imperfect correlation between the performance and price of the underlying reference security or
asset, and the general performance of the designated interest rate or index which is the basis for the periodic payment. Si
the Fund writes a credit default swap, it receives a premium up front but the Fund’s exposure under the credit default swap
is a form of leverage and will be subject to the restrictions on leveraged derivatives discussed above.

L. Exchange-Traded
Funds. The Funds may invest in exchange-traded funds (“ETFs”). ETFs represent shares of ownership
in mutual funds, or unit investment trusts (“UITs”), that hold portfolios of securities that closely track the performance
and dividend yield of specific domestic or foreign market indices. An index-based ETF seeks to track the performance of a particular
index by holding in its portfolio either the contents of the index or a representative sample of the securities in the index. Unlike
typical open-end mutual funds or UITs, ETFs do not sell or redeem their individual shares at net asset value (“NAV”).
Instead, ETFs sell and redeem their shares at NAV only in large blocks (such as 50,000 shares). In addition, national securities
exchanges list ETF shares for trading, which allow investors to purchase and sell individual ETF shares among themselves at market
prices throughout the day. ETFs therefore possess characteristics of traditional open-end mutual funds and UITs, which issue redeemable
shares, and of closed-end mutual funds, which generally issue shares that trade at negotiated prices on national securities exchanges
and are not redeemable.

The Funds expect to use ETFs as part of their
overall investment strategies, which may include yield enhancement and as part of their hedging strategies. ETFs other than those
related to the fixed income sector may be used for yield enhancement purposes. For example, to offset the risk of declining security
prices, the Fund may invest in inverse ETFs. Inverse ETFs are funds designed to rise in price when stock or other security prices
are falling. Consequently, an investment in an inverse ETF is economically similar to a short-sale position. Inverse ETFs seek
daily investment results, before fees and expenses that will match a certain percentage of the inverse (opposite) of the daily
performance of a specific benchmark. For example, if an ETF's current benchmark is 100% of the inverse of the Russell 2000 Index
and the ETF meets its objective, the value of the ETF will tend to increase on a daily basis when the value of the underlying index
decreases (if the Russell 2000 Index goes down 5% then the ETF’s value should go up 5%). Conversely, when the value of the
underlying index increases, the value of the ETF’s shares tend to decrease on a daily basis (if the Russell 2000 Index goes
up 5% then the fund’s value should go down 5%). Positions in inverse securities are speculative and can be more risky than
"long" positions (purchases).

Additionally, long and inverse ETF’s
may employ leverage, which magnifies the changes in the underlying stock or other index upon which they are based. Por ejemplo,
if an inverse ETF’s current benchmark is 200% of the inverse of the Russell 2000 Index and the ETF meets its objective, the
value of the ETF will tend to increase on a daily basis by a factor of two when the value of the underlying index decreases (e.g.,
if the Russell 2000 Index goes down 5% then the inverse ETF’s value should go up 10%). You should be aware that any strategy
that includes inverse securities could suffer significant losses because of the return magnifying effect of leverage.

ETF shares may trade at a discount or a premium
in market price if there is a limited market in such shares. Investments in ETFs are also subject to brokerage and other trading
costs, which could result in greater expenses to a Fund. ETFs are subject to investment advisory and other expenses, which will
be indirectly paid by a Fund. As a result, your cost of investing in the Fund will be higher than the cost of investing

directly in ETFs and may be higher than other
mutual funds that invest exclusively in stocks and bonds. Also, because the value of ETF shares depends on the demand in the market,
the Advisor may not be able to liquidate the Fund's holdings at the most optimal time, adversely affecting the Fund's performance.

M. Foreign
Investment Companies. The Funds may invest, to a limited extent, in foreign investment companies.  Some
of the countries in which the Funds invest may not permit direct investment by outside investors.  Investments in such
countries may only be permitted through foreign government-approved or -authorized investment vehicles, which may include other
investment companies.  In addition, it may be less expensive and more expedient for a Fund to invest in a foreign investment
company in a country that permits direct foreign investment.  Investing through such vehicles may involve frequent or
layered fees or expenses and may also be subject to limitation under the 1940 Act.  Under the 1940 Act, the Funds may
invest up to 10% of its assets in shares of other investment companies and up to 5% of its assets in any one investment company
as long as the investment does not represent more than 3% of the voting stock of the acquired investment company. los
Funds do not intend to invest in such investment companies unless, in the judgment of the Advisor, the potential benefits of such
investments justify the payment of any associated fees and expenses.

N. Emerging
Markets Securities. Investing in emerging market securities imposes risks different from, or greater than,
risks of investing in foreign developed countries. These risks include: smaller market capitalization of securities markets, which
may suffer periods of relative illiquidity; significant price volatility; restrictions on foreign investment; possible repatriation
of investment income and capital. In addition, foreign investors may be required to register the proceeds of sales; future economic
or political crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization,
or creation of government monopolies. The currencies of emerging market countries may experience significant declines against the
U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the Fund. Inflation and rapid fluctuations
in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging
market countries.

Additional risks of emerging markets securities
may include: greater social, economic and political uncertainty and instability; more substantial governmental involvement in the
economy; less governmental supervision and regulation; unavailability of currency hedging techniques; companies that are newly
organized and small; differences in auditing and financial reporting standards, which may result in unavailability of material
information about issuers; and less developed legal systems. In addition, emerging securities markets may have different clearance
and settlement procedures, which may be unable to keep pace with the volume of securities transactions or otherwise make it difficult
to engage in such transactions. Settlement problems may cause a Fund to miss attractive investment opportunities, hold a portion
of its assets in cash pending investment, or be delayed in disposing of a portfolio security. Such a delay could result in possible
liability to a purchaser of the security.

Investing in securities of foreign companies
and countries involves certain considerations and risks that are not typically associated with investing in U.S. government securities
and securities of domestic companies. There may be less publicly available information about a foreign issuer than a domestic one,
and foreign companies are not generally subject to uniform accounting, auditing and financial standards and requirements comparable
to those applicable to U.S. companies. There may also be less government supervision and regulation of foreign securities exchanges,
brokers and listed companies than exists in the United States. Interest and dividends paid by foreign issuers may be subject to
withholding and other foreign taxes, which may decrease the net return on such investments as compared to dividends and interest
paid to the Fund by domestic companies or the U.S. government. There may be the possibility of expropriations, seizure or nationalization
of foreign deposits, confiscatory taxation, political, economic or social instability or diplomatic developments that could affect
assets of the Fund held in foreign countries. Finally, the establishment of exchange controls or other foreign governmental laws
or restrictions could adversely affect the payment of obligations.

To the extent currency exchange transactions
do not fully protect a Fund against adverse changes in currency exchange rates, decreases in the value of currencies of the foreign
countries in which a Fund will invest relative to the U.S. dollar will result in a corresponding decrease in the U.S. dollar value
of the Fund’s assets denominated in those currencies (and possibly a corresponding increase in the amount of securities required

to be liquidated to meet distribution requirements).
Conversely, increases in the value of currencies of the foreign countries in which the Fund invests relative to the U.S. dollar
will result in a corresponding increase in the U.S. dollar value of a Fund’s assets (and possibly a corresponding decrease
in the amount of securities to be liquidated).

O. Equity
Securities. The Funds may from time to time invest in equity securities, which have various risks including the risk that
the financial condition of issuers may become impaired or that the general condition of the stock market may deteriorate (either
of which may cause a decrease in the value of each Fund’s portfolio securities and therefore a decrease in the value of shares
of each Fund). Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value
as market confidence and perceptions change. These investor perceptions are based on various and unpredictable factors, including
expectations regarding government, economic, monetary and fiscal policies; inflation and interest rates; economic expansion or
contraction; and global or regional political, economic or banking crises.

Holders of common stocks incur more risk than
holders of preferred stocks and debt obligations because common stockholders, as owners of the issuer, generally have inferior
rights to receive payments from the issuer in comparison with the rights of creditors or holders of debt obligations or preferred
stocks. Further, unlike debt securities, which typically have a stated principal amount payable at maturity (whose value, however,
is subject to market fluctuations prior thereto), or preferred stocks, which typically have a liquidation preference and which
may have stated optional or mandatory redemption provisions, common stocks have neither a fixed principal amount nor a maturity.
Common stock values are subject to market fluctuations as long as the common stock remains outstanding.

There can be no guarantee that a liquid market
for equity securities will be maintained. The existence of a liquid trading market for certain securities may depend on whether
dealers will make a market in such securities. There can be no assurance that a market will be made or maintained or that any such
market will be or remain liquid. The price at which securities may be sold and the value of each Fund’s shares will be adversely
affected if trading markets for each Fund’s portfolio securities are limited or absent, or if bid/ask spreads are wide.”

pags. Foreign
Securities. Foreign securities are securities issued by a foreign government or securities issued by a company
incorporated in a foreign country.  Investing in foreign securities involves certain risks not present in investing in
U.S. securities, and many of these risks are discussed below.  For example, many of the foreign securities held by the
Funds will not be registered with the SEC, nor will the foreign issuers be subject to SEC reporting requirements.  Accordingly,
the Funds have the risk of obtaining less publicly available information concerning these foreign issuers and foreign securities
than is available concerning U.S. issuers.  In addition, the Funds have the risk that disclosure, reporting and regulatory
standards for foreign issuers may be less stringent in certain foreign countries (especially emerging market countries) than in
the U.S. and other major markets.  There also may be a lower level of effective government regulation of emerging markets
and the activities of investors in such markets, and enforcement of existing regulations in these emerging markets may be extremely
limited.  Foreign companies, and in particular, companies in smaller and emerging capital markets, are not generally
subject to the same uniform accounting, auditing and financial reporting standards as in the U.S. and other developed countries. los
Funds also have the risk that its net investment income and capital gains from its foreign investment activities may be subject
to non-U.S. withholding taxes.

Foreign securities may be subject to the instability
of foreign governments and/or their relationship with the U.S. government (including concerns over nationalization of U.S. assets);
unilateral actions of the foreign government about payment of its own debt or restricting payments of foreign company debt and
unilateral actions of the U.S. government with respect to treaties, trade, capital flows, immigration and taxation with that foreign
country or affecting that foreign company.

A Fund’s costs attributable to investing
in foreign securities may be higher than those attributable to domestic investments- and this is particularly true with respect
to investments in emerging capital markets. For example, a Fund’s cost of maintaining custody of its foreign securities
usually exceeds its custodial costs for domestic securities; and a Fund’s transaction and settlement costs of for foreign
securities usually are higher

than those attributable to domestic investing. UNA
Fund’s costs associated with the exchange of and hedging foreign currencies also make investing in foreign securities more
expensive than domestic investments. A Fund’s investment income on certain foreign securities may be subject to
foreign withholding or other foreign taxes that could reduce a Fund’s total return on its investments in foreign securities. Tax
treaties between the U.S. and certain foreign countries, however, may reduce or eliminate the amount of foreign tax to which a
Fund would be subject.

Foreign markets also have different clearance
and settlement procedures.  In certain foreign markets, there have been times when settlements have failed to keep pace
with the volume of securities transactions, making it difficult for the Fund to conduct or timely settle such transactions.  Delays
in foreign settlement could result in unexpected, temporary periods when the Fund’s assets are uninvested and are earning
no investment return.  The Fund’s inability to make and timely settle foreign security purchases due to settlement
problems could cause the Fund to miss foreign investment opportunities.  On the sell-side, the Fund’s inability
to dispose of a foreign security due to settlement problems could result either in unexpected losses to the Fund (due to subsequent
declines in the value of such foreign security) or, if the Fund is unable to deliver the foreign security to the purchaser, could
result in the Fund’s possible liability to the purchaser.

In addition, a Fund’s investment in any
security payable in a foreign currency is subject to the risk of changes in the value of the U.S. dollar versus the value of the
foreign currency.

Non-foreign securities may also be directly
or indirectly subject to foreign risks because of, for example, the issuer’s affiliation with a foreign company or the multinational
nature of the issuer’s operations. The type and aggregate level of foreign risk can vary significantly between
individual securities held by the Funds. A summary of certain common types of debt-obligations affected by foreign risks
is presented below:

NON-DOLLAR BONDS (INTERNATIONAL BONDS). Foreign
governments, U.S. and international agencies and corporations may issue debt instruments with interest and/or principal payable
in currencies other than the U.S. dollar.  These types of debt instruments are usually known as “non-dollar bonds.”  For
U.S.-based investors, these non-dollar bonds entail foreign currency risk as described above.  While some foreign currencies
tend to trade in a moderate range versus the U.S. dollar, other foreign currencies may exhibit dramatic and/or unexpected increases
or decreases in value relative to the U.S. dollar.  Freely floating foreign currencies have no limit on the degree of
appreciation or depreciation they may experience.  Even foreign currencies which are managed by foreign governments and
central banks to track the value of the U.S. dollar or a “basket” of securities (“managed float” or “peg”)
can in fact gain or lose value in U.S. dollar terms.  Such managed currency arrangements can break down at any time,
resulting in significant U.S. dollar valuation swings for those non-dollar bonds paying in these foreign currencies. Mientras
the most common issuers of non-dollar bonds are domiciled outside the United States, U.S entities can choose to offer bonds payable
in foreign currencies.

YANKEE BONDS. “Yankee”
bonds are debt instruments issued and/or registered in the United States by non-U.S. borrowers (also called “Yankee issuers”)
paying interest and principal in U.S. dollars.  Yankee issuers may have significant operations or entire subsidiaries
located in the United States, or they may have U.S. funding arms, but no U.S. business operations.  U.S. holders of Yankee
bonds are not directly subject to foreign currency risk, but exchange rate movements may have an indirect influence on the market
price of Yankee bonds since they impact the financial condition of the Yankee issuer.  For example, a Canadian-based
company raising capital in the U.S. market by issuing Yankee bonds could face a change in its business results (and therefore its
creditworthiness) due to a change in the value of the Canadian dollar versus the U.S. dollar.  Yankee bonds may also
be subject to foreign, political, legal, accounting, regulatory and disclosure risks discussed above.

U.S. SUBSIDIARY BONDS. UNA
U.S. subsidiary bond is a debt instrument issued by a U.S. operating company which is owned, directly or indirectly, by a foreign
company. Like Yankee bonds, U.S. subsidiary bonds are payable in U.S. dollars, and consequently avoid direct foreign
currency risk for U.S. holders. However, as with Yankee bonds, the creditworthiness of the U.S. subsidiary issuing the
bonds (and market value of the U.S. subsidiary’s bonds) can be influenced by foreign currency movements and the other

foreign risk factors noted above to the extent
that the foreign parent company’s business prospects are affected by such foreign risks.

U.S. MULTI-NATIONAL BONDS. UNA
U.S. multi-national bond is a debt instrument issued in the U.S. by a subsidiary of a multi-national company (which multi-national
company is domiciled in the United States).  The issuing subsidiary could be domiciled in the U.S. or in a foreign country,
and could be either an operating subsidiary or a funding vehicle for the multi-national parent company.  A U.S. multi-national
bond can be issued in U.S. dollars or other foreign currencies.  If issued by the subsidiary company in a foreign currency,
a U.S. multi-national bond embodies the same foreign currency risks described above for non-dollar bonds.  If issued
by the subsidiary in U.S. dollars, there is no direct foreign currency risk for U.S. investors, but indirect foreign currency risks
affecting the multi-national operations of the parent company remain.  Many U.S. multi-national companies derive a greater
share of revenues and earnings from foreign activities than from U.S. operations.  Consequently, financial results and
the creditworthiness of these U.S. multi-national companies (and the market value of the debt instruments issued by their subsidiaries)
can be affected (to a greater or lesser extent) by the foreign risk factors described above.

U.S. DOLLAR FOREIGN BONDS. NOSOTROS.
dollar foreign bonds are debt instruments issued by foreign governments, supra-national foreign organizations, foreign subsidiaries
of U.S. multinational companies, foreign corporations and offshore registered entities payable in U.S. dollars.  Principal
and interest on these bonds are payable in U.S. dollars, so there is no direct foreign currency risk for U.S. holders. Sin embargo,
indirect foreign currency risk and the other foreign risk factors may apply to the foreign issuers of these U.S. dollar foreign
bonds, and affect the market value of these bonds.  (Note: These foreign issuers of U.S. dollar foreign bonds may also
have U.S. subsidiaries or a U.S. parent that issue debt instruments themselves.  Accordingly, it is not uncommon that
one multi-national company may issue bonds both at its subsidiary level and at its parent level and, depending if the issuer is
a U.S. entity or a foreign entity, one bond could be categorized as a “foreign security” while the other bond categorized
as a U.S. security).

Q. Governmental/Municipal
Obligations.

IN GENERAL. Municipal obligations
are debt obligations issued by or on behalf of states, territories and possessions of the United States (including the District
of Columbia) and their political subdivisions, agencies and instrumentalities.  Municipal obligations generally include
debt obligations issued to obtain funds for various public purposes.  Certain types of municipal obligations are issued
in whole or in part to obtain funding for privately operated facilities or projects.  Municipal obligations include general
obligation bonds, revenue bonds, industrial development bonds, notes and municipal lease obligations.  Municipal obligations
also include additional obligations, the interest on which is exempt from federal income tax that may become available in the future
as long as the Board of the Fund determines that an investment in any such type of obligation is consistent with the Fund’s
investment objectives.  Municipal obligations may be fully or partially backed by local government, the credit of a private
issuer, current or anticipated revenues from a specific project or specific assets or domestic or foreign entities providing credit
support such as letters of credit, guarantees or insurance.

BONDS AND NOTES. General
obligation bonds are secured by the issuer’s pledge of its full faith, credit and taxing power for the payment of interest
and principal.  Revenue bonds are payable only from the revenues derived from a project or facility or from the proceeds
of a specified revenue source.  Industrial development bonds are generally revenue bonds secured by payments from and
the credit of private users.  Municipal notes are issued to meet the short-term funding requirements of state, regional
and local governments.  Municipal notes include tax anticipation notes, bond anticipation notes, revenue anticipation
notes, tax and revenue anticipation notes, construction loan notes, short-term discount notes, tax-exempt commercial paper, demand
notes and similar instruments.

MUNICIPAL LEASE OBLIGATIONS. Municipal
lease obligations may take the form of a lease, an installment purchase or a conditional sales contract.  They are issued
by state and local governments and authorities to acquire land, equipment and facilities, such as vehicles, telecommunications
and computer equipment and other capital assets.  The Fund may purchase these lease obligations directly, or it may purchase
participation interests in such lease obligations (See “Participation Interests” section). States have different requirements
for issuing municipal debt and issuing municipal leases.  Municipal leases are

generally subject to greater risks than general
obligation or revenue bonds because they usually contain a “non-appropriation” clause, which provides that the issuer
is not obligated to make payments on the obligation in future years unless funds have been appropriated for this purpose each year. Such
non-appropriation clauses are required to avoid the municipal lease obligations from being treated as debt for state debt restriction
purposes. Accordingly, such obligations are subject to “non-appropriation” risk. Municipal leases
may be secured by the underlying capital asset and it may be difficult to dispose of any such asset in the event of non-appropriation
or other default.

MORTGAGE-BACKED BONDS. UNA
Fund’s investments in municipal obligations may include mortgage-backed municipal obligations, which are a type of municipal
security issued by a state, authority or municipality to provide financing for residential housing mortgages to target groups,
generally low-income individuals who are first-time home buyers.  The Fund’s interest, evidenced by such obligations,
is an undivided interest in a pool of mortgages.  Payments made on the underlying mortgages and passed through to the
Fund will represent both regularly scheduled principal and interest payments.  The Fund may also receive additional principal
payments representing prepayments of the underlying mortgages.  While a certain level of prepayments can be expected,
regardless of the interest rate environment, it is anticipated that prepayment of the underlying mortgages will accelerate in periods
of declining interest rates.  In the event that the Fund receives principal prepayments in a declining interest-rate
environment, its reinvestment of such funds may be in bonds with a lower yield.

PARTICIPATION INTERESTS. UNA
participation interest gives the Fund an undivided interest in a municipal debt obligation in the proportion that the Fund’s
participation interest bears to the principal amount of the underlying obligation.  These underlying obligations may
have fixed-, floating-, or variable-rates of interest.  The Fund will only purchase participation interests if accompanied
by an opinion of counsel that the interest earned on the underlying municipal obligations will be federal tax-exempt. Si
the Fund purchases unrated participation interests, the Board or its delegate must have determined that the credit risk is equivalent
to the rated obligations in which the Fund may invest.  Participation interests may be backed by a letter of credit or
repurchase obligation of the selling institution.  When determining whether such a participation interest meets the Fund’s
credit quality requirements, the Fund may look to the credit quality of any financial guarantor providing a letter of credit or
guaranty.

PASS-THROUGH CERTIFICATES. Cada
Fund may also invest in pass-through certificates or securities issued by partnerships and grantor trusts.  These securities
allow the Fund to receive principal and interest payments on underlying obligations and such securities may have fixed-, floating-,
or variable-rates of interest.  The pass-through certificates may be backed by a letter of credit, guarantee or liquidity
provider and, if the pass-through certificate is intended to be a tax-exempt security, it is generally accompanied by an opinion
of counsel that the interest on the pass-through certificates will be exempt from federal income tax.  The Fund may only
invest in these securities if they meet the Fund’s credit-quality and eligibility requirements.

R. High-Yield
Securities.

IN GENERAL. Non-investment
grade debt obligations (“lower-quality securities”) include (1) debt obligations rated between BB and C by Moody’s
Investor Services (“Moody’s”), Standard & Poor’s Ratings Group (“S&P”) and comparable
ratings of other NRSROs; (2) commercial paper rated as low as C by S&P, Not Prime by Moody’s and comparable ratings of
other NRSROs and (3) unrated debt obligations of comparable credit-quality as determined by the Advisor.  Lower-quality
securities, while generally offering higher yields than investment grade securities with similar maturities, involve greater risks,
including the possibility of default or bankruptcy of the obligor.  They are regarded as predominantly speculative and
present a significant risk for loss of principal and interest.  The special risk considerations in connection with investments
in these securities are discussed below.

EFFECT OF INTEREST RATES. los
lower-quality and comparable unrated security market is relatively new and its growth has paralleled a long economic expansion. Como
a result, it is not clear how this market may withstand a prolonged recession or economic downturn. Such conditions
could severely disrupt the market for and adversely affect the value of such securities.

All fixed interest-bearing securities typically
experience appreciation when interest rates decline and depreciation when interest rates rise.  The market values of
lower-quality and comparable unrated securities tend to reflect individual corporate developments to a greater extent than do higher
rated securities (which react primarily to fluctuations in the general level of interest rates).  Lower-quality and comparable
unrated securities also tend to be more sensitive to economic conditions than are higher-rated securities.  As a result,
they generally involve more credit risks than securities in the higher-rated categories.  During an economic downturn
or a sustained period of rising interest rates, highly leveraged issuers of lower-quality and comparable unrated securities may
experience financial stress and may not have sufficient revenues to meet their payment obligations.  The issuer’s
ability to service its debt obligations may also be adversely affected by specific corporate developments, the issuer’s inability
to meet specific projected business forecasts or the unavailability of additional financing.  The risk of loss due to
default by an issuer of these securities is significantly greater than issuers of higher-rated securities because such securities
may be unsecured and may be subordinated to other creditors.  Further, if the issuer of a lower-quality or comparable
unrated security defaulted, the Fund might incur additional expenses to seek recovery.  Periods of economic uncertainty
and changes would also generally result in increased volatility in the market prices of these securities and thus in the Fund’s
NAV.

DECREASED FUND LIQUIDITY. Como
previously stated, the value of a lower-quality or comparable unrated security will decrease in a rising interest rate market and
accordingly, so will the Fund’s NAV.  If the Fund experiences unexpected net redemptions in such a market, it may
be forced to liquidate a portion of its portfolio securities without regard to their investment merits.  Due to the limited
liquidity of lower-quality and comparable unrated securities (discussed below), the Fund may be forced to liquidate these securities
at a substantial discount to its existing market value to meet redemptions.  Any such redemption would force the Fund
to sell the more liquid portion of its portfolio.

PREPAYMENT RISK. Lower-quality
and comparable unrated securities typically bear higher rates of interest than higher- and medium- quality securities, and generally
contain redemption, call or prepayment provisions that permit the issuer of such securities containing such provisions to, at its
discretion, redeem the securities. During periods of falling interest rates, issuers of these securities are likely
to redeem or prepay the securities and refinance them with debt securities with a lower interest rate. To the extent
an issuer is able to refinance the securities, or otherwise redeem them, the Fund may have to replace the securities with a lower
yielding security, which would result in a lower return for the Fund.

CREDIT RATINGS. Credit ratings
issued by NRSROs are designed to evaluate the ability of obligors to make principal and interest payments on rated securities. Ellos
do not, however, evaluate the overall risk of owning lower-quality securities and, therefore, may not fully reflect the true risks
of this type of investment.  In addition, credit rating agencies may or may not make timely changes in a rating to reflect
changes in the economy or in the condition of the issuer that affect the market value of the security.  Consequently,
credit ratings are used only as a preliminary indicator of investment quality.  Investments in lower-quality and comparable
unrated obligations will be more dependent on the Advisor’s credit analysis than would be the case with investments in investment-grade
debt obligations.  The Advisor employs its own credit research and analysis, which includes a study of existing debt,
capital structure, ability to service debt and to pay dividends, the issuer’s sensitivity to economic conditions, its operating
history, its industry and the current trend of earnings.  The Advisor periodically monitors the investments in the Fund’s
portfolio and carefully evaluates whether to dispose of or to retain lower-quality and comparable unrated securities whose credit
ratings or credit quality may have changed.

LIQUIDITY AND VALUATION. los
Fund may have difficulty disposing of certain lower-quality and comparable unrated securities because there may be a thin trading
market for such securities or they may be illiquid.  Because not all dealers maintain markets in all lower-quality and
comparable unrated securities, there is no established retail secondary market for many of these securities.  The Fund
anticipates that such securities could be sold only to a limited number of dealers or institutional investors.  To the
extent a secondary trading market does exist in these lower-quality (and comparable unrated) securities, it is generally not as
liquid as the secondary market for higher-rated securities.  The lack of a liquid secondary market may have an adverse
impact on the market price of the security.  As a result, the Fund’s NAV and ability to dispose

of particular securities, when necessary to
meet the Fund’s liquidity needs or in response to a specific economic event, may be impacted.  The lack of a liquid
secondary market for certain securities may also make it more difficult for the Fund to obtain accurate market quotations for purposes
of valuing these securities held in the Fund’s portfolio.  Market quotations are generally available on many lower-quality
and comparable unrated issues only from a limited number of dealers and may not necessarily represent firm bids of such dealers
or prices for actual sales.  During periods of thin trading, the spread between bid and asked prices is likely to increase
significantly which can lead to lower reliability of broker price quotations.  In addition, adverse publicity and investor
perceptions, whether or not based on fundamental analysis, may decrease the values and liquidity of lower-quality and comparable
unrated securities, especially in a thinly traded market.

LEGISLATION. Legislation
may be adopted, from time to time, designed to limit the use of certain lower-quality and comparable unrated securities as permissible
investments. It is anticipated that if additional legislation is enacted or proposed, it could have a material effect
on the value of these securities and the existence of a secondary trading market for the securities.

S. Inflation-Indexed
Securities. Each Fund may invest in inflation-indexed securities, which have a final value and interest payment
stream linked to the inflation rate.  The index for measuring the inflation rate for these securities is typically the
non-seasonally adjusted Consumer Price Index published monthly by the U.S. Department of Labor- Bureau of Labor Statistics. Por
offering interest and principal payments linked to inflation, these securities attempt to protect the future purchasing power of
the money invested in them. However, inflation-indexed securities provide this protected return only if held to maturity. En
addition, inflation-indexed securities may not trade at par value.  Real interest rates (the market rate of interest
adjusted for inflation) change over time as a result of many factors, such as expected domestic economic output. Cuando
real interest rates do change, inflation-indexed securities prices may be more sensitive to these changes than conventional bonds.  Should
market expectations for real interest rates rise, the price of inflation-indexed securities may fall.  In addition, inflation-indexed
securities may not be as widely traded as fixed-principal securities.  This lesser liquidity may result in the Fund experiencing
higher transaction costs when purchasing and selling these securities.

T. Investment Companies. Cada
Fund may invest in investment companies such as open-end funds (mutual funds), closed-end funds, and ETFs (collectively referred
to as "Underlying Funds"). Generally, the 1940 Act provides that a mutual fund may not: (1) purchase more than 3% of
an investment company’s outstanding shares; (2) invest more than 5% of its assets in any single such investment company (the
"5% Limit"), or (3) invest more than 10% of its assets in investment companies overall (the "10% Limit"), unless:
(i) the underlying investment company and/or the Fund has received an order for exemptive relief from such limitations from the
SEC; and (ii) the underlying investment company and the Fund take appropriate steps to comply with any conditions in such order.

In addition, Section 12(d)(1)(F) of the "1940
Act", provides that the provisions of paragraph 12(d)(1) shall not apply to securities purchased or otherwise acquired by
a Fund if (i) immediately after such purchase or acquisition not more than 3% of the total outstanding stock of such registered
investment company is owned by the Fund and all affiliated persons of the Fund; and (ii) the Fund has not, and is not proposing
to offer or sell any security issued by it through a principal underwriter or otherwise at a public or offering price which includes
a sales load of more than 1.5%. An investment company that issues shares to a Fund pursuant to paragraph 12(d)(1)(F) shall not
be required to redeem its shares in an amount exceeding 1% of such investment company’s total outstanding shares in any period
of less than thirty days. A Fund (or the Fund’s investment adviser acting on behalf of the Fund) must comply with the following
voting restrictions: when the Fund exercises voting rights, by proxy or otherwise, with respect to investment companies owned by
the Fund, the Fund will either seek instruction from the Fund's shareholders with regard to the voting of all proxies and vote
in accordance with such instructions, or vote the shares held by the Fund in the same proportion as the vote of all other holders
of such security.

Further, a Fund may rely on Rule 12d1-3 under
the 1940 Act, which allows unaffiliated mutual funds to exceed the 5% Limit and the 10% Limit, provided the aggregate sales loads
any investor pays (i.e., the combined distribution expenses of both the acquiring fund and the acquired funds) does not exceed
the limits on sales loads established by the Financial Industry Regulatory Authority, Inc. ("FINRA") for funds of funds.

Generally, a Fund and any "affiliated
persons," as defined by the 1940 Act, may purchase in the aggregate only up to 3% of the total outstanding securities of any
Underlying Fund. Accordingly, when affiliated persons hold shares of any of the Underlying Funds, a Fund’s ability to invest
fully in shares of those funds is restricted, and the Funds’ investment adviser must then, in some instances, select alternative
investments that would not have been its first preference. The 1940 Act also provides that a mutual fund whose shares are purchased
by a Fund will be obligated to redeem shares held by the Fund only in an amount up to 1% of the mutual fund's outstanding securities
during any period of less than 30 days. Shares held by a Fund in excess of 1% of a mutual fund's outstanding securities therefore,
will be considered not readily marketable securities, which, together with other such securities, may not exceed 15% of the Fund's
total assets.

Under certain circumstances an Underlying Fund
may determine to make payment of a redemption by a Fund wholly or partly by a distribution in kind of securities from its portfolio,
in lieu of cash, in conformity with the rules of the SEC. In such cases, the Fund may hold securities distributed by an Underlying
Fund until the Adviser determines that it is appropriate to dispose of such securities.

Investment decisions by the investment advisors
of the Underlying Funds are made independently of the Funds. Therefore, the investment advisor of one Underlying Fund may be purchasing
shares of the same issuer whose shares are being sold by the investment advisor of another such fund. The result would be an indirect
expense to a Fund without accomplishing any investment purpose. Because other investment companies employ an investment adviser,
such investments by a Fund may cause shareholders to bear duplicate fees.

U. Maturity. UNA
Fund’s average effective portfolio maturity represents an average based on the actual stated maturity dates of the debt securities
in the Fund’s portfolio, except that (1) variable-rate securities are deemed to mature at the next interest-rate adjustment
date, unless subject to a demand feature, (2) variable-rate securities subject to a demand feature are deemed to mature on the
longer of the next interest-rate adjustment date or the date on which principal can be recovered through demand, (3) floating-rate
securities subject to a demand feature are deemed to mature on the date on which the principal can be recovered through demand,
(4) the maturity of mortgage-backed and certain other asset-backed securities is determined on an “expected life” basis
by the Advisor and (5) securities being hedged with futures contracts may be deemed to have a longer maturity, in the case of purchases
of futures contracts, and a shorter maturity, in the case of sales of futures contracts, than they would otherwise be deemed to
have.  In addition, a security that is subject to redemption at the option of the issuer on a particular date (“call
date”), which is prior to the security’s stated maturity, may be deemed to mature on the call date rather than on its
stated maturity date.  The call date of a security will be used to calculate average effective portfolio maturity when
the Advisor reasonably anticipates, based upon information available to it, that the issuer will exercise its right to redeem the
security.  The average effective portfolio maturity of a Fund is dollar-weighted based upon the market value of a Fund’s
securities at the time of the calculation.

The Funds may utilize puts which are provided
on a “best efforts” or similar basis (a “soft put”) to shorten the maturity of securities when the Advisor
reasonably believes, based upon information available to it at the time the security is acquired, that the issuer of the soft put
has or will have both the willingness and the resources or creditworthiness to repurchase the securities at the time the Fund exercises
the put.  Failure of an issuer to honor a soft put may, depending on the specific put, have a variety of possible consequences,
including (1) an automatic extension of the soft put to a later date, (2) the elimination of the soft put, in which case the effective
maturity of the security may be its final maturity date or (3) a default of the security, typically after the passage of a cure
period.  Should either the exercise date of the soft put automatically extend or the soft put right be eliminated as
a result of the failure to honor a soft put, the affected security may include a provision that adjusts the interest rate on the
security to an amount intended to result in the security being priced at par at an interest rate equal to comparable securities. Sin embargo,
not all securities have rate reset provisions or, if they have such provisions, the reset rate may be capped at a rate that would
prevent the security from being priced at par.  Furthermore, it is possible that the interest rate may reset to a level
that increases the interest expense to the issuer by an amount that negatively affects the credit quality of the security.

V. Private Placement Debt Securities.
The Funds may invest in debt securities issued in private placement transactions. A private placement is a direct offering of securities,
which are exempt from registration under the Securities Act of 1933, to a single or limited number of sophisticated investors (such
as mutual funds, insurance companies, pension funds and accredited individual investors). Issuance is typically made by direct
negotiation between an issuer and an investor (or small group of investors), but may also be made with the assistant of a placement
agent. Private placement debt securities are generally more complex than those issued in the public market (those registered with
the SEC under the Securities Act of 1933). Private Placement debt securities may (i) bear fixed or floating rates of interest,
(ii) may permit the issuer to increase the size of the issue at some future date, (iii) may permit the issuer to extend or shorten
the repayment date, (iv) may be secured or unsecured (v) or may offer the issuer additional terms which are generally more flexible
than those offered in the public market. Private placement debt securities may include restrictive covenants on the issuer such
as limiting additional debt issuance and restricting or prohibiting asset sales, but are primarily dependent on the credit quality
of the issuer for repayment. These debt securities also bear the risks described more fully above under the heading Debt Obligations
including price volatility. Unless the Fund’s Advisor determines that such private placements securities are liquid, the
Fund will classify them as illiquid for purposes of complying with additional investment restriction number 6 (more fully described
below), which limits the Fund to investing no more than 15% of the value of its net assets, taken at the time of investment, in
illiquid securities. Certain privately placed securities may be traded among sophisticated investors under Rule 144A (described
more fully below), which may substantially increase their liquidity.

W. Real
Estate Investment Trusts. The Funds may invest in securities of real estate investment trusts (“REITs”). REITs
are corporations or trusts that specialize in acquiring, holding and managing residential, commercial or industrial real estate.
A REIT is not taxed at the entity level on income distributed to its shareholders or unitholders if it distributes to shareholders
or unitholders at least 95% of its taxable income for each taxable year and complies with regulatory requirements relating to its
organization, ownership, assets and income.

REITs generally can be classified as “Equity
REITs,” “Mortgage REITs” and “Hybrid REITs.” An Equity REIT invests the majority of its assets directly
in real property and derives its income primarily from rents and from capital gains on real estate appreciation, which are realized
through property sales. A Mortgage REIT invests the majority of its assets in real estate mortgage loans and services its income
primarily from interest payments. A Hybrid REIT combines the characteristics of an Equity REIT and a Mortgage REIT. Although the
Fund can invest in all three kinds of REITs, its emphasis is expected to be on investments in Equity REITs.

Investments in the real estate industry involve
particular risks. The real estate industry has been subject to substantial fluctuations and declines on a local, regional and national
basis in the past and may continue to be in the future. Real property values and income from real property may decline due to general
and local economic conditions, overbuilding and increased competition, increases in property taxes and operating expenses, changes
in zoning laws, casualty or condemnation losses, regulatory limitations on rents, changes in neighborhoods and in demographics,
increases in market interest rates, or other factors. Factors such as these may adversely affect companies that own and operate
real estate directly, companies that lend to such companies, and companies that service the real estate industry.

Investments in REITs also involve risks. Equity
REITs will be affected by changes in the values of and income from the properties they own, while Mortgage REITs may be affected
by the credit quality of the mortgage loans they hold. In addition, REITs are dependent on specialized management skills and on
their ability to generate cash flow for operating purposes and to make distributions to shareholders or unitholders REITs may have
limited diversification and are subject to risks associated with obtaining financing for real property, as well as to the risk
of self-liquidation. REITs also can be adversely affected by their failure to qualify for tax-free pass-through treatment of their
income under the Internal Revenue Code of 1986, as amended, or their failure to maintain an exemption from registration under the
1940 Act. By investing in REITs indirectly through the Funds, a shareholder bears not only a proportionate share of the expenses
of the Fund, but also may indirectly bear similar expenses of some of the REITs in which it invests.

Non-Traded REITs are subject to significant
commissions, expenses, and offering and organizational costs that reduce the value of an investor's (including the Funds’)
investment. Non-Traded REITs are not liquid,

and investments in Non-Traded REITs may not
be accessible for an extended period of time. There is no guarantee of any specific return on the principal amount or the repayment
of all or a portion of the principal amount invested in Non-Traded REITs. In addition, there is no guarantee that investors (including
the Funds) will receive a distribution. Distributions from Non-Traded REITs may be derived from the proceeds of the offering, from
borrowings, or from the sale of assets. Payments of distributions from sources other than cash flow from operations will decrease
or diminish an investor's interest.

X. Repurchase
and Reverse Repurchase Agreements. The Funds may enter into repurchase agreements with qualified, creditworthy
banks or non-bank dealers (“Seller”) as determined by the Advisor.  In a repurchase agreement, the Fund buys
from the Seller investment-grade securities at one price and the Seller agrees to repurchase these securities at a later date (usually
within one to seven days) for a price equal to the original price paid by the Fund plus an agreed interest payment (“Repurchase
Price”).  The Seller’s obligation to repurchase the securities is secured by cash, the securities purchased
and/or certain U.S. Government securities or U.S. agency guaranteed securities (“Collateral”).  The Collateral
is held by the Fund’s custodian or a qualified sub-custodian under the 1940 Act that is a financial intermediary (“Custodian”). los
Advisor or Custodian will monitor, on an ongoing basis, the current market value of the Collateral to ensure it always equals or
exceeds the Repurchase Price.  Each repurchase agreement must at all times be “fully collateralized” by the
Collateral as required by the 1940 Act.  Repurchase agreements involve risks that the Seller cannot pay the Repurchase
Price (e.g., in the event of a default or insolvency of the Seller) and risks that the net liquidation value of the Collateral
is less than the amount needed to repay the Repurchase Price.

In addition, the Fund may invest in foreign
repurchase agreements.  Foreign repurchase agreements may include agreements to purchase and sell foreign securities
in exchange for fixed U.S. dollar amounts, or in exchange for specified amounts of foreign currency.  In the event of
default by the counterparty, the Fund may suffer a loss if the value of the security purchased, i.e., the collateral, in U.S. dollars,
is less than the agreed upon repurchase price, or if the Fund is unable to successfully assert a claim to the collateral under
foreign laws.  As a result, foreign repurchase agreements may involve greater credit risk than repurchase agreements
in U.S. markets, as well as risks associated with currency fluctuations.  Repurchase agreements with foreign counterparties
may have more risk than with U.S. counterparties, since less financial information may be available about the foreign counterparties
and they may be less creditworthy.

In a reverse repurchase agreement, the Fund
sells portfolio securities to another party and agrees to repurchase the securities at an agreed-upon price and date. Reverse repurchase
agreements involve the risk that the other party will fail to return the securities in a timely manner, or at all, which may result
in losses to the Fund. The Fund could lose money if it is unable to recover the securities and the value of the collateral held
by the Fund is less than the value of the securities. These events could also trigger adverse tax consequences to the Fund. Reverse
repurchase agreements also involve the risk that the market value of the securities sold will decline below the price at which
the Fund is obligated to repurchase them. Reverse repurchase agreements may increase fluctuations in the Fund’s NAV and may
be viewed as a form of borrowing by a Fund.

Y. Rule
144A Securities. The Funds may invest in Rule 144A securities that the Advisor determines to be liquid. Rule
144A allows a broader institutional trading market for securities otherwise subject to restriction on their resale to the general
public.  Rule 144A establishes a “safe harbor” from the registration requirements of the 1933 Act of resales
of certain securities to qualified institutional buyers.  Rule 144A securities are not considered to be illiquid for
purposes of the Fund’s illiquid securities policy, if such securities satisfy the conditions enumerated in Rule 144A and
are determined to be liquid by the Advisor in accordance with the requirements established by the Trust.  In determining
the liquidity of such securities, the Advisor will consider, among other things, the following factors:  (1) the frequency
of trades and quotes for the security; (2) the number of dealers and other potential purchasers or sellers of the security; (3)
dealer undertakings to make a market in the security and (4) the nature of the security and of the marketplace trades (p.ej.,
the time needed to dispose of the security, the method of soliciting offers and the mechanics of the transfer).

Z. Short-Hold
Trading Strategy. The Funds may have the opportunity to participate in the primary market for new issues offered
by issuers and/or underwriters at prices the Fund’s manager(s) deem(s)

favorable, based on factors such as the supply
of bonds in the marketplace and economic conditions.  In these situations, the Fund may decide to purchase these new
security issues at the negotiated opening price, and shortly thereafter offer to sell all or a part of the Fund’s purchased
allocation to third-party interested purchasers at a higher price, depending on market conditions.  These short-term
trades are only done when the Fund’s Advisor believes it is in the best interests of the Fund (e.g., realization of capital
appreciation).  Because the Fund is “at risk” for the purchased amount of these new issues, it is possible
for the Fund to experience losses on these trades.

A.A Sovereign
Debt. Sovereign debt differs from debt obligations issued by private entities in that, generally, remedies for
defaults must be pursued in the courts of the defaulting party. Legal recourse is therefore limited. Political
conditions, especially a sovereign entity’s willingness to meet the terms of its debt obligations, are of considerable significance. También,
there can be no assurance that the holders of commercial bank loans to the same sovereign entity may not contest payments to the
holders of sovereign debt in the event of default under commercial bank loan agreements.

A sovereign debtor’s willingness or ability
to repay principal and pay interest in a timely manner may be affected by a variety of factors, including among others, its cash
flow situation, the extent of its foreign reserves, the availability of sufficient foreign exchange on the date a payment is due,
the relative size of the debt service burden to the economy as a whole, the sovereign debtor’s policy toward principal international
lenders and the political constraints to which a sovereign debtor may be subject.  A country whose exports are concentrated
in a few commodities could be vulnerable to a decline in the international price of such commodities.  Increased protectionism
on the part of a country’s trading partners, or political changes in those countries, could also adversely affect its exports.  Such
events could diminish a country’s trade account surplus, if any, or the credit standing of a particular local government
or agency.  Another factor bearing on the ability of a country to repay sovereign debt is the level of the country’s
international reserves.  Fluctuations in the level of these reserves can affect the amount of foreign exchange readily
available for external debt payments and, thus, could have a bearing on the capacity of the country to make payments on its sovereign
debt.

To the extent that a country has a current
account deficit (generally when its exports of merchandise and services are less than its country’s imports of merchandise
and services plus net transfers (e.g., gifts of currency and goods) to foreigners), it may need to depend on loans from foreign
governments, multilateral organizations or private commercial banks, aid payments from foreign governments and inflows of foreign
investment. The access of a country to these forms of external funding may not be certain, and a withdrawal of external
funding could adversely affect the capacity of a government to make payments on its obligations. In addition, the cost
of servicing debt obligations can be adversely affected by a change in international interest rates, since the majority of these
obligations carry interest rates that are adjusted periodically based upon international rates.

With respect to sovereign debt of emerging
market issuers, investors should be aware that certain emerging market countries are among the largest debtors to commercial banks
and foreign governments. At times, certain emerging market countries have declared moratoria on the payment of principal
and interest on external debt.

Certain emerging market countries have experienced
difficulty in servicing their sovereign debt on a timely basis which led to defaults on certain obligations and the restructuring
of certain indebtedness.  Restructuring arrangements have included, among other things, reducing and rescheduling interest
and principal payments by negotiating new or amended credit agreements or converting outstanding principal and unpaid interest
to Brady Bonds (discussed below), and obtaining new credit to finance interest payments.  Holders of sovereign debt,
including the Fund, may be requested to participate in the rescheduling of such debt and to extend further loans to sovereign debtors,
and the interests of holders of sovereign debt could be adversely affected in the course of restructuring arrangements or by certain
other factors referred to below.  Furthermore, some of the participants in the secondary market for sovereign debt may
also be directly involved in negotiating the terms of these arrangements and may therefore have access to information not available
to other market participants, such as the Fund.  Obligations arising from past restructuring agreements may affect the
economic performance and political and social stability of certain issuers of sovereign debt. No hay

bankruptcy proceeding by which sovereign debt
on which a sovereign has defaulted may be collected in whole or in part.

Foreign investment in certain sovereign debt
is restricted or controlled to varying degrees.  These restrictions or controls may at times limit or preclude foreign
investment in such sovereign debt and increase the costs and expenses of the Fund.  Certain countries in which the Fund
may invest require governmental approval prior to investments by foreign persons, limit the amount of investment by foreign persons
in a particular issuer, limit the investment by foreign persons only to a specific class of securities of an issuer that may have
less advantageous rights than the classes available for purchase by domiciliaries of the countries or impose additional taxes on
foreign investors.  Certain issuers may require governmental approval for the repatriation of investment income, capital
or the proceeds of sales of securities by foreign investors.  In addition, if a deterioration occurs in a country’s
balance of payments, the country could impose temporary restrictions on foreign capital remittances.  The Fund could
be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well
as by the application to the Fund of any restrictions on investments.  Investing in local markets may require the Fund
to adopt special procedures, seek local government approvals or take other actions, each of which may involve additional costs
to the Fund.

The sovereign debt in which the Fund may invest
includes Brady Bonds, which are securities issued under the framework of the Brady Plan, an initiative announced by former U.S.
Treasury Secretary Nicholas F. Brady in 1989 as a mechanism for debtor nations to restructure their outstanding external commercial
bank indebtedness. In restructuring its external debt under the Brady Plan framework, a debtor nation negotiates with
its existing bank lenders as well as multilateral institutions such as the International Monetary Fund (“IMF”). los
Brady Plan framework, as it has developed, contemplates the exchange of commercial bank debt for newly issued Brady Bonds. Brady
Bonds may also be issued in respect of new money being advanced by existing lenders in connection with the debt restructuring. los
World Bank and the IMF support the restructuring by providing funds pursuant to loan agreements or other arrangements which enable
the debtor nation to collateralize the new Brady Bonds or to repurchase outstanding bank debt at a discount.

There can be no assurance that the circumstances
regarding the issuance of Brady Bonds by these countries will not change.  Investors should recognize that Brady Bonds
do not have a long payment history.  Agreements implemented under the Brady Plan to date are designed to achieve debt
and debt-service reduction through specific options negotiated by a debtor nation with its creditors.  As a result, the
financial packages offered by each country differ.  The types of options have included the exchange of outstanding commercial
bank debt for bonds issued at 100% of face value of such debt, which carry a below-market stated rate of interest (generally known
as par bonds), bonds issued at a discount from the face value of such debt (generally known as discount bonds), bonds bearing an
interest rate which increases over time and bonds issued in exchange for the advancement of new money by existing lenders.  Regardless
of the stated face amount and stated interest rate of the various types of Brady Bonds, the Fund will purchase Brady Bonds, if
any, in secondary markets, as described below, in which the price and yield to the investor reflect market conditions at the time
of purchase.

Certain Brady Bonds have been collateralized
as to principal due at maturity by U.S. Treasury zero coupon bonds with maturities equal to the final maturity of such Brady Bonds.  Collateral
purchases are financed by the IMF, the World Bank and the debtor nations’ reserves.  In the event of a default
with respect to collateralized Brady Bonds as a result of which the payment obligations of the issuer are accelerated, the U.S.
Treasury zero coupon obligations held as collateral for the payment of principal will not be distributed to investors, nor will
such obligations be sold and the proceeds distributed.  The collateral will be held by the collateral agent to the scheduled
maturity of the defaulted Brady Bonds, which will continue to be outstanding, at which time the face amount of the collateral will
equal the principal payments which would have then been due on the Brady Bonds in the normal course.  In addition, interest
payments on certain types of Brady Bonds may be collateralized by cash or high grade securities in amounts that typically represent
between 12 and 18 months of interest accruals on these instruments with the balance of the interest accruals being uncollateralized.  Brady
Bonds are often viewed as having several valuation components: (1) the collateralized repayment of principal, if any, at final
maturity, (2) the collateralized interest payments, if any, (3) the uncollateralized interest payments and (4) any uncollateralized
repayment of principal at maturity

(these uncollateralized amounts constitute
the “residual risk”).  In light of the residual risk of Brady Bonds and, among other factors, the history
of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady Bonds, investments
in Brady Bonds have speculative characteristics.  The Fund may purchase Brady Bonds with no or limited collateralization,
and will be relying for payment of interest and (except in the case of principal collateralized Brady Bonds) principal primarily
on the willingness and ability of the foreign government to make payment in accordance with the terms of the Brady Bonds.  Brady
Bonds issued to date are purchased and sold in secondary markets through U.S. securities dealers and other financial institutions
and are generally maintained through European transnational securities depositories.

B.B NOSOTROS
Government Securities. U.S. Government securities are issued by the U.S. Government or its agencies or instrumentalities,
including:

U.S. Treasury obligations, such as Treasury bills, notes and bonds;

The Federal Housing Administration, Farmers Home Administration, Export-Import Bank of the United States, Small Business Administration and the Government National Mortgage Association (“GNMA”), including GNMA pass-through certificates, whose securities are supported by the full faith and credit of the United States;

The Federal Home Loan Banks, Federal Intermediate Credit Banks and the Tennessee Valley Authority, whose securities are supported by the right of the agency to borrow from the U.S. Treasury;

The Federal National Mortgage Association, whose securities are supported by the discretionary authority of the U.S. Government to purchase certain obligations of the agency or instrumentality; y

The Student Loan Marketing Association, the Inter-American Development Bank and International Bank for Reconstruction and Development, whose securities are supported only by the credit of such agencies.

Although the U.S. Government provides various
types of financial support to U.S. Government-sponsored agencies or instrumentalities, no assurance can be given that it will always
do so and not all U.S. Government securities are guaranteed or backed by the full faith and credit of the U.S. Government. los
U.S. Government and its agencies and instrumentalities do not guarantee the market value of their securities. Consequently,
the market value of such securities will fluctuate. On September 7, 2008, the U.S. Treasury Department and the Federal Housing
Finance Authority (the “FHFA”) announced that Fannie Mae and Freddie Mac had been placed into conservatorship, a statutory
process designed to stabilize a troubled institution with the objective of returning the entity to normal business operations.
The U.S. Treasury Department and the FHFA at the same time established a secured lending facility and a Secured Stock Purchase
Agreement with both Fannie Mae and Freddie Mac to ensure that each entity had the ability to fulfill its financial obligations.
The FHFA announced that it does not anticipate any disruption in pattern of payments or ongoing business operations of Fannie Mae
or Freddie Mac.

C.C Variable-
or Floating-Rate Securities. The Funds may invest in securities that offer a variable- or floating-rate of interest. Variable-rate
securities provide for automatic establishment of a new interest rate at fixed intervals (e.g., daily, monthly, semi-annually,
etc.). Floating-rate securities generally provide for automatic adjustment of the interest rate whenever some specified
interest rate index changes. The interest rate on variable- or floating-rate securities is ordinarily determined by
reference to or is a percentage of a bank’s prime rate, LIBOR, the 90-day U.S. Treasury bill rate, the rate of return on
bank certificates of deposit or some other objective measure.

Variable- or floating-rate securities frequently
include a put or demand feature entitling the holder to sell the securities to the issuer at par. In many cases, the
demand feature can be exercised at any time on seven days’ notice; in other cases, the put or demand feature is exercisable
at any time on 30 days’ notice or on similar notice at intervals of not more than one year. Some securities, which
do not have variable or floating interest rates, may be accompanied by puts producing similar results and price characteristics. Cuando
considering the

maturity of any instrument that may be sold
or put to the issuer or a third party prior to its stated maturity, the Fund may consider that instrument’s maturity to be
shorter than its stated maturity.

Variable-rate demand notes include master demand
notes, which are obligations that permit the Fund to invest fluctuating amounts that may change daily without penalty, pursuant
to direct arrangements between the Fund, as lender, and the borrower.  The interest rates on these notes fluctuate from
time to time.  The issuer of such obligations normally has a corresponding right, after a given period, to prepay in
its discretion the outstanding principal amount of the obligations plus accrued interest upon a specified number of days’
notice to the holders of such obligations.  The interest rate on a floating-rate demand obligation is based on a known
lending rate, such as a bank’s prime rate or LIBOR, and is adjusted automatically each time such rate is adjusted. los
interest rate on a variable-rate demand obligation is adjusted automatically at specified intervals.  Frequently, such
obligations are secured by letters of credit or other credit support arrangements provided by banks.  Because these obligations
are direct lending arrangements between the lender and borrower, it is not contemplated that such instruments will generally be
traded and may be illiquid.  There generally is not an established secondary market for these obligations, although they
are redeemable at face value.  Accordingly, where these obligations are not secured by letters of credit or other credit
support arrangements, the Fund’s right to redeem is dependent on the ability of the borrower to pay principal and interest
on demand.  Such obligations frequently are not rated by credit rating agencies and, if not so rated, the Fund may invest
in them only if the Advisor determines that at the time of investment the obligations are of comparable quality to the other obligations
in which the Fund may invest.  The Advisor, on behalf of the Fund, will consider on a periodic basis the creditworthiness
of the issuers of the floating- and variable-rate demand obligations in the Fund’s portfolio and any providers of credit
enhancements.

In determining the Fund’s average effective
portfolio maturity, the Fund will consider a floating- or variable-rate security to have a maturity equal to its stated maturity
(or redemption date if it has been called for redemption), except that it may consider (1) variable-rate securities to have a maturity
equal to the period remaining until the next readjustment in the interest rate, unless subject to a demand feature, (2) variable-rate
securities subject to a demand feature to have a remaining maturity equal to the longer of (a) the next readjustment in the interest
rate or (b) the period remaining until the principal can be recovered through demand and (3) floating-rate securities subject to
a demand feature to have a maturity equal to the period remaining until the principal can be recovered through demand. Variable-
and floating-rate securities generally are subject to less principal fluctuation than securities without these attributes.

D.D When-Issued
and Delayed-Delivery Securities. The Funds may purchase securities on a when-issued or delayed-delivery basis and such
transactions represent a type of forward commitment by the Fund.  The price of debt obligations so purchased, which may
be expressed in yield terms, generally is fixed at the time the commitment to purchase is made, but delivery and payment for the
securities take place at a later date.  During the period between the purchase and settlement, no payment is made by
the Fund to the issuer and no interest on the underlying debt obligations accrues to the Fund.  These types of forward
commitments involve a risk of loss if the value of the security to be purchased declines prior to the settlement date. Mientras
when-issued and delayed-delivery securities may be sold prior to the settlement date, the Fund intends to purchase such securities
with the purpose of actually acquiring them unless a sale appears desirable for investment reasons.  At the time a Fund
makes the commitment to purchase these types of securities, it will record the transaction and reflect the value of the security
in determining its NAV.  The Funds do not believe that their NAV will be adversely affected by these types of securities
purchases.

To the extent required by the SEC, the Fund
will maintain cash and liquid assets equal in value to the aggregate outstanding forward commitments for when-issued and delayed-delivery
securities marked to market daily. Such designated securities either will mature or, if necessary, be sold on or before
the settlement date. When the time comes to pay for when-issued or delayed-delivery securities, the Fund will meet its
obligations from then-available cash flow, sale of the securities designated on its books and records, described above, sale of
other securities or, although it would not normally expect to do so, from the sale of the when-issued or delayed-delivery securities
themselves (which may have a market value greater or less than the Fund’s payment obligation).

Another type of forward commitment is for certain
future pass-through, residential mortgage-backed pools which forward commitments are traded in the “to-be-announced”
market (TBAs). TBAs are the Fund’s

commitment to purchase one or more standardized,
residential mortgage pools which will be placed in a pass-through mortgage-backed security issued by Fannie Mae, Freddie Mac or
Ginnie Mae in the future.  The residential mortgages in these pools all have common underwriting characteristics: they
are residential mortgages with 15 to 30 year maturities, generally at a fixed rate, with monthly payments and no prepayment penalties
and must be under a certain prescribed dollar limit.  TBA settlement terms are commonly 90 days, but may extend to 180
days.  TBAs are sold by mortgage originators during the process of originating residential mortgages and are a primary
source of the funds needed by these mortgage loan originators.  Certain key terms are specified at the time the TBA is
purchased (mortgage type, mortgage issuer, required rate, dollar amount to be purchased, price and settlement date), but the exact
identity and number of the mortgage pools to be covered by the TBA is only determined 48 hours before the settlement date. los
Fund may hold and trade TBAs, and TBAs are included in the Fund’s NAV.  TBAs are actively traded and the TBA market
is very liquid.  The price of most TBAs are ascertainable by market quotations.  However, TBAs are still subject
to the same risks as other forward commitments, and subject to the same leverage requirements as other forward commitments.

E.E Zero-Coupon,
Step-Coupon and Pay-In-Kind Securities. los Funds may invest in zero-coupon,
step-coupon and pay-in-kind securities.  These securities are debt securities that do not make regular cash interest
pagos Zero-coupon and step-coupon securities are sold at a deep discount to their face value. Pay-in-kind
securities pay interest through the issuance of additional securities.  Because such securities do not pay current cash
income, the price of these securities can be volatile when interest rates fluctuate.  While these securities do not pay
current cash income, federal income tax law requires the holders of zero-coupon, step-coupon and pay-in-kind securities to include
in income each year the portion of the original issue discount (or deemed discount) and other non-cash income on such securities
accruing that year.  In order for the Fund to continue to qualify as a “regulated investment company” or
“RIC” under the IRC and avoid a certain excise tax, the Fund may be required to distribute a portion of such discount
and income to its shareholders.  Consequently, the Fund may be required to dispose of other portfolio securities, which
may occur in periods of adverse market prices, in order to generate cash to meet these IRC distribution requirements.

The U.S. Treasury Department creates STRIPS
by separating the coupon payments and the principal payment from an outstanding Treasury security and selling them as individual
securities.  A broker-dealer creates a derivative zero by depositing a Treasury security with a custodian for safekeeping
and then selling the coupon payments and principal payment that will be generated by this security separately. Ejemplos
are Certificates of Accrual on Treasury Securities (“CATs”), Treasury Investment Growth Receipts (“TIGRs”)
and generic Treasury Receipts (“TRs”).  These derivative zero coupon obligations are not considered to be
government securities unless they are part of the STRIPS program.  Original issue zeros are zero coupon securities issued
directly by the U.S. government, a government agency or by a corporation.

INVESTMENT RESTRICTIONS

The Funds have adopted the following investment
restrictions that may not be changed without approval by a "majority of the outstanding shares" of each Fund which, as
used in this SAI, means the vote of the lesser of (a) 67% or more of the shares of the Fund represented at a meeting, if the holders
of more than 50% of the outstanding shares of each Fund are present or represented by proxy, or (b) more than 50% of the outstanding
shares of each Fund. Each Fund may not:

Borrow money, except (a) from a bank, provided that immediately after such borrowing there is an asset coverage of 300% for all borrowings of the Fund; or (b) from a bank or other persons for temporary purposes only, provided that such temporary borrowings are in an amount not exceeding 5% of the Fund’s total assets at the time when the borrowing is made. (This limitation does not preclude the Fund from entering into reverse repurchase transactions, provided that the Fund has an asset coverage of 300% for all borrowings and repurchase commitments of the Fund pursuant to reverse repurchase transactions);

Issue senior securities. (This limitation is not applicable to activities that may be deemed to involve the issuance or sale of a senior security by the Fund, provided that the Fund’s engagement in such activities is consistent with or permitted by the 1940 Act, the rules and regulations promulgated thereunder or interpretations of the SEC or its staff);

3)	Act as underwriter (except to the extent the Fund may be deemed to be an underwriter in connection with the sale of securities in its investment portfolio);

Invest more than 25% of its net assets, calculated at the time of purchase and taken at market value, in securities of issuers in any one industry or group of industries (other than obligations issued or guaranteed by the U.S. Government, its agencies and instrumentalities, or repurchase agreements with respect thereto);

Purchase or sell real estate unless acquired as a result of ownership of securities (although the Fund may invest in marketable securities which are secured by or represent interests in real estate, and may invest in mortgage-related securities or invest in companies engaged in the real estate business or that have a significant portion of their assets in real estate (including real estate investment trusts));

Purchase or sell commodities unless acquired as a result of ownership of securities or other investments. This limitation does not preclude the Fund from purchasing or selling options or futures contracts, from investing in securities or other instruments backed by commodities or from investing in companies which are engaged in a commodities business or have a significant portion of their assets in commodities;

With respect to Leader Short Duration Bond
Fund: Make loans of money (except for the lending of its portfolio securities, purchases of debt securities consistent with the
investment policies of the Fund and except for repurchase agreements).

With respect to Leader Total Return Fund Only:
        Make loans to others, except (a) where each loan is represented by a note executed by the borrower, (b) through the purchase of
        debt securities, which may be considered loans, (c) to the extent the entry into a repurchase agreement is deemed to be a loan,
        and (d) by loaning portfolio securities. Additionally, the preceding limitation on loans does not preclude either Fund from modifying
        note terms.

8)	With respect to 75% of its total assets, invest more than 5% of its total assets in securities of a single issuer or hold more than 10% of the voting securities of such issuer. (Does not apply to investments in the securities of the U.S. Government, its agencies or instrumentalities.)

Except with respect to borrowing, if any percentage
restriction or requirement described above is satisfied at the time of investment, a later increase or decrease in such percentage
resulting from a change in asset value will not constitute a violation of such restriction or requirement. However, should a change
in net asset value or other external events cause the Fund's investments in illiquid securities, repurchase agreements with maturities
in excess of seven days and other instruments in the Fund which are not readily marketable to exceed the limit set forth in the
Fund's Prospectus for its investment in illiquid securities, the Fund will act to cause the aggregate amount of such securities
to come within such limit as soon as reasonably practicable. In such an event, however, the Fund would not be required to liquidate
any portfolio securities where the Fund would suffer a loss on the sale of such securities.

THE FOLLOWING ARE ADDITIONAL INVESTMENT
LIMITATIONS OF THE FUNDS. THE FOLLOWING RESTRICTIONS ARE DESIGNATED AS NON-FUNDAMENTAL AND MAY BE CHANGED BY THE BOARD OF TRUSTEES
OF THE TRUST WITHOUT THE APPROVAL OF SHAREHOLDERS.

A Fund may not:

Mortgage, pledge, hypothecate or in any manner transfer, as security for indebtedness, any assets of the Fund except as may be necessary in connection with borrowings described in fundamental restriction 1 above. (Margin deposits, security interests, liens and collateral arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques are not deemed to be a mortgage, pledge or hypothecation of assets for purposes of this limitation);

2)	With respect to fundamental investment restriction 1 above, the Fund will not purchase portfolio securities while outstanding borrowings exceed 5% of its assets;

3)	Purchase securities or evidences of interest thereon on “margin.” (This limitation is not applicable to short-term credit obtained by the Fund for the clearance of purchases and sales or redemption of securities, or to arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques);

4)	Purchase or sell puts, calls, options or straddles except as described in the Prospectus or this SAI;

Invest more than 15% of the value of its net assets, taken at the time of investment, in illiquid securities. Illiquid securities are those securities without readily available market quotations, including repurchase agreements having a maturity of more than seven days. Illiquid securities may include restricted securities not determined by the Board of Trustees to be liquid, non-negotiable time deposits, over-the-counter options and repurchase agreements providing for settlement in more than seven days after notice; o

Except with respect to borrowing, if a percentage
or rating restriction on investment or use of assets set forth herein or in the Prospectus is adhered to at the time a transaction
is effected, later changes in percentage resulting from any cause other than actions by a Fund will not be considered a violation.
In the event that the Fund engages in any borrowings and such borrowings exceed the limits of Section 18 of the 1940 Act, the Fund
will reduce its borrowings within three days in order to comply with such limits.

POLICIES AND PROCEDURES FOR DISCLOSURE OF PORTFOLIO HOLDINGS

The Trust has adopted policies and procedures
that govern the disclosure of each Fund’s portfolio holdings. These policies and procedures are designed to ensure that such
disclosure is in the best interests of Fund shareholders.

It is the Trust’s policy to: (1) ensure
that any disclosure of portfolio holdings information is in the best interest of Trust shareholders; (2) protect the confidentiality
of portfolio holdings information; (3) have procedures in place to guard against personal trading based on the information; y
(4) ensure that the disclosure of portfolio holdings information does not create conflicts between the interests of the Trust’s
shareholders and those of the Trust’s affiliates.

Each Fund discloses its portfolio holdings
by mailing its annual and semi-annual reports to shareholders approximately two months after the end of the fiscal year and semi-annual
period. In addition, the Funds may, from time to time, make available end of quarter portfolio holdings information on its website
at www.leadercapital.com. Quarterly portfolio holdings are generally posted to the website within 10 days of the end of each quarter
and remain available until new information for the next quarter is posted. The Advisor may periodically post Fund portfolio commentary
and updates, including changes to the Funds’ portfolio holdings, on its website at http://www.leadercapital.com/leading_thoughts.html.

Each Fund may choose to make available to rating
agencies such as Lipper, Morningstar or Bloomberg earlier and more frequently on a confidential basis.

Under limited circumstances, as described
below, each Fund’s portfolio holdings may be disclosed to, or known by, certain third parties in advance of their filing
with the SEC on Form N-CSR or Form N-Q. In each case, a determination has been made that such advance disclosure is supported by
a legitimate business purpose and that the recipient is subject to a duty to keep the information confidential and to not trade
on any non-public information.

The Advisor. Personnel of the Advisor, including personnel responsible for managing the
Fund’s portfolio, may have full daily access to Fund portfolio holdings because that information is necessary in order for
the Advisor to provide their management, administrative, and investment services to the Fund. As required for purposes of analyzing
the impact of existing and future market changes on the prices, availability, demand and liquidity of such securities, as well
as for the assistance of the portfolio manager in the trading of such securities, Advisor personnel may also release and discuss
certain portfolio holdings with various broker-dealers.

Gemini Fund Services, LLC. Gemini Fund Services, LLC is the transfer agent, fund accountant
and administrator for the Funds; therefore, its personnel have full daily access to each Fund’s portfolio holdings since
that information is necessary in order for them to provide the agreed-upon services for the Trust.

Fifth Third Bank. Fifth Third Bank is the custodian for the Funds; therefore, its personnel
have full daily access to each Fund’s portfolio holdings since that information is necessary in order for them to provide
the agreed-upon services for the Trust.

BBD, LLP. is the Funds’ independent registered public accounting firm; therefore,
its personnel have access to each Fund’s portfolio holdings in connection with auditing of each Fund's annual financial statements
and providing assistance and consultation in connection with SEC filings.

Practus, LLP. is counsel to the Trust; therefore, its personnel have access to each Fund’s
portfolio holdings in connection with the review of the Funds' annual and semi-annual shareholder reports and SEC filings.

Additions to List of Approved Recipients

The Trust’s Chief Compliance Officer
is the person responsible, and whose prior approval is required, for any disclosure of each Fund’s portfolio securities to
persons other than those listed before the Fund files its portfolio holdings with the SEC on Form N-CSR or Form N-Q. In such cases,
the recipient must have a legitimate business need for the information and must be subject to a duty to keep the information confidential
and not trade on any material non-public information. There are no ongoing arrangements in place with respect to the disclosure
of portfolio holdings. In no event shall the Funds, the Advisor or any other party receive any direct or indirect compensation
in connection with the disclosure of information about the Funds’ portfolio holdings.

Compliance with Portfolio Holdings Disclosure Procedures

The Trust’s Chief Compliance Officer
will report periodically to the Board with respect to compliance with each Fund’s portfolio holdings disclosure procedures,
and from time to time will provide the Board any updates to the portfolio holdings disclosure policies and procedures.

There is no assurance that the Trust’s
policies on disclosure of portfolio holdings will protect the Funds from the potential misuse of holdings information by individuals
or firms in possession of that information.

MANAGEMENT

The business of the Trust
is managed under the direction of the Board in accordance with the Agreement and Declaration of Trust and the Trust’s By-laws
(the “Governing Documents”), which have been filed with the SEC and are available upon request. The Board consists
of four (4) individuals three of whom are not “interested persons” (as defined under the 1940 Act) of the Trust, the
Advisor, or the Funds’ principal underwriter (“Independent Trustees”). Pursuant to the Governing Documents of
the Trust, the Trustees shall elect officers including a President, a Secretary, a Treasurer, a Principal Executive Officer, a
Principal Accounting Officer, and appoint a Chief Compliance Officer. The Board retains the power to conduct, operate and carry
on the business of the Trust and has the power to incur and pay any expenses, which, in the opinion of the Board, are necessary
or incidental to carry out any of the Trust’s purposes. The Trustees, officers, employees and agents of the Trust, when acting
in such capacities, shall not be subject to any

personal liability except for his or her own
bad faith, willful misfeasance, gross negligence or reckless disregard of his or her duties.

Board Leadership Structure

The Trust is led by Andrew
Rogers, an Independent Trustee, who has served as the Chairman of the Board since the Trust’s inception March 1, 2019. The
Board of Trustees is comprised of Mr. Rogers and two (2) additional Independent Trustees, and one interested trustee, Mr. John
E. Lekas. Additionally, under certain 1940 Act governance guidelines that apply to the Trust, the Independent Trustees will meet
in executive session, at least quarterly. Under the Trust’s Agreement and Declaration of Trust and By-Laws, the Chairman
of the Board is responsible for (a) presiding at board meetings, (b) calling special meetings on an as-needed basis, (c) execution
and administration of Trust policies including (i) setting the agendas for board meetings and (ii) providing information to board
members in advance of each board meeting and between board meetings. Generally, the Trust believes it best to have a non-executive
Chairman of the Board, who together with the President (principal executive officer), are seen by our shareholders, business partners
and other stakeholders as providing strong leadership. The Trust believes that its Chairman, the independent chair of the Audit
Committee, and, as an entity, the full Board of Trustees, provide effective leadership that is in the best interests of the Trust,
its Funds and each shareholder.

Board Risk Oversight

The Board of Trustees has
a standing independent Audit Committee with a separate chair, Andrew Rogers. The Board is responsible for overseeing risk management,
and the full Board regularly engages in discussions of risk management and receives compliance reports that inform its oversight
of risk management from its Chief Compliance Officer at quarterly meetings and on an ad hoc basis, when and if necessary. The Audit
Committee considers financial and reporting risk within its area of responsibilities. Generally, the Board believes that its oversight
of material risks is adequately maintained through the compliance-reporting chain where the Chief Compliance Officer is the primary
recipient and communicator of such risk-related information.

Trustee Qualifications

Generally, the Trust believes
that each Trustee is competent to serve because of their individual overall merits including: (i) experience, (ii) qualifications,
(iii) attributes and (iv) skills.

John E. Lekas has over
20 years of investment experience and has managed fixed income securities on a discretionary basis for over 17 years. He founded
the Advisor in 1997 and has been managing mutual funds since 2005. Mr. Lekas holds a Bachelor of Arts Degree in Finance from the
University of Oregon. He currently serves as the President, Chief Executive Officer and Senior Portfolio Manager at the Advisor.
The Board has concluded that Mr. Lekas is suitable to serve as a Trustee because of his past service and experience as a portfolio
manager and owner of the Advisor, his professional investment and business experience and his academic background.

Andrew Rogers has over
20 years of business experience in the financial services industry. For 16 years, Mr. Rogers served as Chief Executive Officer
of a large fund administrator, fund accountant and transfer agency firm. Mr. Rogers has also served as a trustee for another registered
company. Currently, Mr. Rogers serves as Chief Executive Officer at FusionIQ, a fintech company that provides intelligent investment
solutions to investors. The Board has concluded that Mr. Rogers is suitable to serve as a Trustee because of his strong understanding
of the regulatory framework under which investment companies must operate and his extensive experience in the financial services
industry.

Martin Kehoe has approximately
30 years of experience in real estate development. He is the owner of Kehoe Northwest Properties, a Portland, Oregon based real
estate development company. Mr. Kehoe has extensive business experience in the areas of residential and commercial real estate
development. His company has been involved in the development of over a half billion dollars of real estate since 1989. Mr. Kehoe
is graduate of the University of Oregon. The Board has concluded that Mr. Kehoe is suitable to serve as a Trustee because of his
business and finance acumen and academic background.

Raymond A. Davis has nearly
26 years of professional experience as a United States Army soldier, private security employee and government contractor. En su
current role, he serves as an instructor, teacher and mentor. Mr. Davis attained a Bachelor of Science Degree in Security Management
with an emphasis in International Security. Mr. Davis was selected to serve as Trustee of the Trust based primarily on his considerable
knowledge of operational and management issues.

The following is a list
of the Trustees and executive officers of the Trust and each person’s principal occupation over the last five years. A no ser que
otherwise noted, the address of each Trustee and Officer is 17645 Wright Street, Suite 200, Omaha, Nebraska 68130.

Independent Trustees

Name, Address and Year of Birth	Position/Term of Office*	Principal Occupation During the Past Five Years	Number of Portfolios in Fund Complex Overseen by Trustee**	Other Directorships held by Trustee During the Past Five Years
Andrew Rogers Born in 1969	Trustee Since 2019; Chairman of the Board Since 2019	Chief Executive Officer of FusionIQ (a technology company serving the financial services industry) from December 2017 to present; Chief Executive Officer of Gemini Fund Services, LLC (a fund administrator, fund accountant and transfer agent) from 2001 to 2017.	3	Northern Lights Fund Trust from 2013 to 2018.
Martin Kehoe Born in 1961	Trustee Since 2019	Owner of Kehoe Northwest Properties, a real estate development company, from 2001 – present.	3	None
Raymond A. Davis Born in 1974	Trustee Since 2019	Author and government contractor (security and intelligence related services)	3	None

Interested Trustees and Officers

Name, Address and Year of Birth

Position/Term of Office*

Principal Occupation During the Past Five Years

Number of Portfolios in Fund Complex** Overseen by Trustee

Other Directorships held by Trustee During the Past Five Years

John E. Lekas

Born in 1958

Trustee

Since 2019; President and Treasurer of the Board Since 2019

President, Chief Executive Officer and Senior Portfolio Manager at the Advisor since 1997.

None

Emile R. Molineaux

80 Arkay Drive

Hauppauge, NY 11788

1962

Compliance Officer and Anti Money Laundering Officer

Since 2019

Senior Compliance Officer and CCO of Various clients of Northern Lights Compliance Services, LLC, (since 2011).

N/A

None

*The term of office for each Trustee and officer
listed above will continue indefinitely until the individual resigns or is removed.

Board Committees

Audit Committee

The Board has an Audit Committee that consists
of all the Trustees who are not “interested persons” of the Trust within the meaning of the 1940 Act. The Audit Committee’s
responsibilities include: (i) recommending to the Board the selection, retention or termination of the Trust’s independent
auditors; (ii) reviewing with the independent auditors the scope, performance and anticipated cost of their audit; (iii) discussing
with the independent auditors certain matters relating to the Trust’s financial statements, including any adjustment to such
financial statements recommended by such independent auditors, or any other results of any audit; (iv) reviewing on a periodic
basis a formal written statement from the independent auditors with respect to their independence, discussing with the independent
auditors any relationships or services disclosed in the statement that may impact the objectivity and independence of the Trust’s
independent auditors and recommending that the Board take appropriate action in response thereto to satisfy itself of the auditor’s
independence; and (v) considering the comments of the independent auditors and management’s responses thereto with respect
to the quality and adequacy of the Trust’s accounting and financial reporting policies and practices and internal controls.
The Audit Committee operates pursuant to an Audit Committee Charter. The Audit Committee is responsible for seeking and reviewing
nominee candidates for consideration as Independent Trustees as is from time to time considered necessary or appropriate. The Audit
Committee generally will not consider shareholder nominees. The Audit Committee is also responsible for reviewing and setting Independent
Trustee compensation from time to time when considered necessary or appropriate. The Audit Committee is expected to meet at least
twice a year.

Compensation

For their services to the Trust, each Independent
Trustee receives an annual retainer of $30,000. The Trust has no pension or retirement plan. The Trustees will be reimbursed for
any out-of-pocket expenses incurred while attending Board and/or Committee meetings. No other entity affiliated with the Trust
pays any compensation to the Independent Trustees.

The “interested persons” who serve
as Trustees of the Trust receive no compensation for their services as Trustees. None of the executive officers receive compensation
from the Trust.

The table below details the amount of compensation
the Trustees are expected to receive from the Trust during their first year of service. The Trust does not have a bonus, profit
sharing, pension or retirement plan.

Name and Position	Leader Short Duration Bond Fund	Leader Total Return Fund	Leader Floating Rate Fund	Total Compensation From Fund Complex Paid to Directors
John E. Lekas – Interested Trustee	None	None	None	None

Andrew Rogers – Independent Trustee	$10,000	$10,000	$10,000	$30,000
Martin Kehoe – Independent Trustee	$10,000	$10,000	$10,000	$30,000
Raymond A. Davis – Independent Trustee	$10,000	$10,000	$10,000	$30,000

Trustee Ownership

The following table indicates the dollar range
of equity securities that each Trustee beneficially owned in the Trust as of December 31, 2018.

Name of Trustee	Dollar Range of Equity Securities in Leader Short Duration Bond Fund	Dollar Range of Equity Securities in Leader Total Return Fund	Dollar Range of Equity Securities in Leader Floating Rate Fund	Aggregate Dollar Range of Equity Securities in All Registered Investment Companies Overseen by Trustee in Family of Investment Companies
John E. Lekas – Interested Trustee	Over $100,000	Over $100,000	Over $1,000, 000	Over $1,000,000
Andrew Rogers – Independent Trustee	None	None	None	None
Martin Kehoe – Independent Trustee	None	None	None	None
Raymond A. Davis- Independent Trustee	None	None	None	None

Management Ownership

As of the date of this SAI, the Trustees and officers, as a group,
owned less than 1.00% of each Fund's outstanding shares and less than 1.00% of the Fund Complex's outstanding shares.

CONTROL PERSONS AND PRINCIPAL HOLDERS

A principal shareholder is
any person who owns (either of record or beneficially) 5% or more of the outstanding shares of a fund. A control person is one
who owns either directly or indirectly, more than 25% of the voting securities of a fund or acknowledges the existence of such
controlar.

As of September 3, 2019, the following shareholders of record owned
5% or more of the outstanding shares of each Fund.

LEADER SHORT DURATION
FUND

Name & Address	Shares		Percentage of Fund Share Class
Class A Shares
MSSB FBO TIC II LTD		527,161.371		66.00	%
PO Box 49976

CMS Corp Plaza 1st FLR
Godfrey Nixon Way
PO Box 799
Grand Cayman KY1-1103

Charles Schwab & Co	50,703.438	6.35	%
INC./ATTN: Mutual Fund OPS
211 Main St.
San Francisco, CA 94105

Pershing LLC	101,560.188	12.71	%
PO Box 2052
Jersey City, NJ 07303

Class C Shares
Charles Schwab & Co Inc.	56,830.603	15.63	%
ATTN Mutual Funds OPS
211 Main St.
San Francisco, CA 94104

J. P. Morgan Securities LLC/	22,680.770	6.24	%
4 Chase Metrotech Center
Brooklyn NY 11245-0001

J. P. Morgan Securities LLC/	19,762.846	5.44	%
4 Chase Metrotech Center
Brooklyn NY 11245-0001

Institutional Shares
Charles Schwab & Co Inc/	1,250,940.311	25.96	%
Special Custody Account FBO
Our Customers
Attn Mutual Funds
101 Montgomery Street
San Francisco, CA 94104-4151

LPL Financial	861,523.7910	17.88	%
4707 Executive Drive
San Diego, CA 92121-3091

TD Ameritrade Inc.	482,319.540	10.01	%
FBO/Our Clients
PO Box 2226
Omaha, NE 68103-2226

Pershing LLC	289,226.3730	6.00	%
PO Box 2052
Jersey City, NJ 07303

Investor Shares
Pershing LLC	839,837.751	17.95	%
PO Box 2052
Jersey City, NJ 07303

Charles Schwab & Co Inc/	399,876.3090	8.55	%
Attn: Mutual Fund Ops
211 Main St.
San Francisco, CA 94105

LEADER TOTAL RETURN FUND

Name & Address	Shares		Percentage of Fund Share Class
Institutional Shares
Charles Schwab & Co Inc		186,313.676		10.83	%
Special Custody Account FBO Our
Customers
Attn Mutual Funds
101 Montgomery Street
San Francisco, CA 94104-4151

LPL Financial		417,030.555		24.25	%
4707 Executive Drive
San Diego, CA 92121-3091

Pershing LLC		305,085.366		17.74	%
PO Box 2052
Jersey City, NJ 07303

J.P. Morgan Securities LLC		109,505.631		6.37	%
4 Chase Metrotech Center
Brooklyn NY 11245-0001

Class A Shares
Charles Schwab Co Inc.		739,164.962		72.09	%
Special Custody
ATTN Mutual Funds
101 Montgomery St.
San Francisco, CA 94104

TD Ameritrade Inc		228,135.498		22.25	%
FBO/Our Clients
PO Box 2226
Omaha, NE 68103-2226

Class C Shares
Pershing LLC		15,206.300		18.95	%
PO Box 2052
Jersey City, NJ 07303

American Enterprise Inv		4,581.759		5.71	%
Customer Ponce
707 2nd Avenue South
Minneapolis, MN 55402

National Financial Services LLC		10,545.574		13.14	%
499 Washington Blvd.
Jersey City, NJ 07310


LPL Financial		5,204.714		6.49	%
Customer Paredes
4707 Executive Drive
San Diego, CA 92121

LPL Financial	5,243.137	6.53	%
Customer LPL Financial
4707 Executive Drive
San Diego, CA 92121


Investor Shares
TD Ameritrade Inc.	148,980.870	15.80	%
FBO/Our Clients
PO Box 2226
Omaha, NE 68103-2226

LEADER FLOATING RATE FUND

Name & Address	Shares		Percentage of Fund Share Class
Institutional Shares
Charles Schwab & Co		2,796,345.263		18.43	%
Inc/Special Custody
Account FBO
Our Customers
ATTN Mutual Funds
101 Montgomery St
San Francisco, CA
94104-4151

TD Ameritrade Inc.		4,818,678.182		31.76	%
PO Box 2226
Omaha, NE 68103

Pershing LLC		2,796,489.667		18.26	%
O Box 2052
Jersey City, NJ 07303

Charles Schwab & Co. Inc.		852,964.840		5.62	%
ATTN: Mutual Funds
211 Main Street
San Francisco, CA 94105

Investor Shares
Pershing LLC		1,432,043.459		36.44	%
PO Box 2052
Jersey City, NJ 07303

Charles Schwab & Co Inc.		378,523.795		9.63	%
ATTN Mutual Fund Ops
211 Main St.
San Francisco, CA 94105

LPL Financial		396,844.583		10.10	%
Customer LPL Financial
4707 Executive Drive
San Diego, CA 92121

INVESTMENT ADVISOR

Investment Advisor and Advisory Agreement

The Funds’ Investment Advisor is Leader
Capital Corp., 315 W. Mill Plain Blvd., Suite 204, Vancouver, WA 98660. John E. Lekas, President of the Advisor, is
the controlling shareholder of the Advisor. The Advisor is 100% employee-owned.

The Advisory Agreement will remain in effect
with respect to each Fund for an initial two-year period. After the initial two-year period, the Advisory Agreement will continue
in effect from year to year only if such continuance is specifically approved at least annually by the Board or by vote of a majority
of a Fund’s outstanding voting securities and by a majority of the Trustees who are not parties to the Advisory Agreement
or interested persons of any such party, at a meeting called for the purpose of voting on the Advisory Agreement. The Advisory
Agreement is terminable without penalty by the Trust on behalf of a Fund, upon giving the Advisor 60 days’ notice when authorized
either by a majority vote of a Fund’s shareholders or by a vote of a majority of the Board, or by the Advisor on 60 days’
written notice, and will automatically terminate in the event of its “assignment” (as defined in the 1940 Act). los
Advisory Agreement provides that the Advisor shall not be liable for any error of judgment or for any loss suffered by the Trust
in connection with the Advisory Agreement, except for a loss resulting from a breach of fiduciary duty, or for a loss resulting
from willful misfeasance, bad faith or gross negligence in the performance of its duties, or from reckless disregard by the Advisor
of its duties under the Advisory Agreement.

As compensation for its management services,
the Leader Short Duration Bond Fund is obligated to pay the Advisor a fee computed and accrued daily and paid monthly at an annual
rate of 0.75% on the first $1.25 billion of the average daily net assets and then 0.70% on assets greater than $1.25 billion of
the Fund’s average daily net assets. The Leader Total Return Fund pays the Advisor a fee of 0.75% of the average daily net
assets of the Fund. The Leader Floating Rate Fund pays the Advisor a fee of 0.65% of the average daily net assets of the Fund.

Under the Advisory Agreement, the Advisor,
under the supervision of the Board, agrees to invest the assets of the Funds in accordance with applicable law and the investment
objective, policies and restrictions set forth in the Funds’ current Prospectus and Statement of Additional Information,
and subject to such further limitations as the Trust may from time to time impose by written notice to the Advisor. The Advisor
shall act as the investment advisor to the Funds and, as such shall (i) obtain and evaluate such information relating to the economy,
industries, business, securities markets and securities as it may deem necessary or useful in discharging its responsibilities
here under; (ii) formulate a continuing program for the investment of the assets of the Fund in a manner consistent with its investment
objective, policies and restrictions; and (iii) determine from time to time securities to be purchased, sold, retained or lent
by the Fund, and implement those decisions, including the selection of entities with or through which such purchases, sales or
loans are to be effected; provided, however, that the Advisor will place orders pursuant to its investment determinations either
directly with the issuer or with a broker or dealer, and if with a broker or dealer, (a) will attempt to obtain the best price
and execution of its orders, and (b) may nevertheless in its discretion purchase and sell portfolio securities from and to brokers
who provide the Advisor with research, analysis, advice and similar services and pay such brokers in return a higher commission
or spread than may be charged by other brokers. The Advisor also provides the Funds with all necessary office facilities and personnel
for servicing the Funds’ investments, compensates all officers, Trustees and employees of the Trust who are officers, directors
or employees of the Advisor, and all personnel of the Fund or the Advisor performing services relating to research, statistical
and investment activities.

For the fiscal years noted in the table the
Funds paid the following advisory fees to the Adviser pursuant to the investment advisory agreement with the Funds, of which the
Adviser waived or recouped the amount set forth in the table below.

Fiscal Period Ended	Advisory Fee	Waiver	Recapture of Previously Waived Advisory Fees	Advisory Fee after Waiver and Recapture
Leader Short Duration Bond Fund
May 31, 2017	$2,395,051	$0	$0	$2,395,051
May 31, 2018	$1,208,816	$44,426	$0	$1,164,390
May 31, 2019	$839,951	$20,730	$0	$819,221

Leader Total Return Fund
May 31, 2017	$439,695	$0	$0	$439,695
May 31, 2018	$217,737	$0	$0	$217,737
May 31, 2019	$196,688	$0	$0	$196,688

Leader Floating Rate Fund
May 31, 2017	$6,018	$6,018	$0	$0
May 31, 2018	$191,995	$191,995	$0	$0
May 31, 2019	$979,825	$309,849	$0	$669,976

*Additional amounts reimbursed.

Fund Expenses. Each Fund
is responsible for its own operating expenses. Pursuant to an operating expense limitation agreement between the Advisor
and the Trust, the Advisor has contractually agreed to reduce its fees and/or absorb expenses of the Leader Floating Rate Fund,
until at least September 30, 2020 to ensure that Total Annual Fund Operating Expenses After Fee Waiver and/or Reimbursement, excluding
any front-end or contingent deferred loads, 12b-1 fees, brokerage fees and commissions, indirect expenses associated with the Fund’s
investments (such as acquired fund fees and expenses, or expenses of any other underlying investments in collective investment
vehicles or derivative instruments), borrowing costs (such as interest and dividend expense on securities sold short), taxes, and
extraordinary expenses, such as litigation expenses, will not exceed 1.00% of the daily average net assets attributable to each
of the Institutional and Investor shares, respectively, of the Fund; subject to possible recoupment from the Fund and Class in
future years on a rolling three-year basis (within the three years after the fees have been waived or reimbursed) if such recoupment
does not exceed both: (1) the expense cap in effect at the time of waiver/reimbursement; and (2) the expense cap in effect at the
time of recoupment, if applicable. This agreement may be terminated only by the Fund’s Board of Trustees, on 60 days written
notice to the Advisor. Cumulative expenses subject to the aforementioned conditions will expire in the following years:

Expires:	May 31, 2020		May 31, 2021
Potential Recoupment:	$	82,328	$	127,076

Under the terms of the expense limitation agreement,
examples of fees and expenses that would not be considered to be extraordinary or non-recurring include, but are not limited to,
taxes, interest, loan commitment fees, brokerage fees and commissions, if any, fees of Board members who are not officers, directors,
employees or holders of 5% or more of the outstanding voting securities of the Advisor, SEC fees, state Blue Sky qualification
fees, advisory fees, charges of custodians, transfer and dividend disbursing agents’ fees, certain insurance premiums, industry
association fees, outside auditing and legal expenses, costs of maintaining each Fund’s existence, costs of independent pricing
services, costs attributable to investor services (including, without limitation, telephone and personnel expenses), costs of preparing
and printing prospectuses and statements of additional information for regulatory purposes and for distribution to existing shareholders,
costs of shareholders' reports and meetings.

Expenses not expressly assumed
by the Advisor under the Advisory Agreement are paid by the Trust. Under the terms of the Advisory Agreement, the Trust is responsible
for the payment of the following expenses among others: (a) the fees payable to the Advisor; (b) the fees and expenses of Trustees
who are not affiliated persons of the Advisor or Distributor (as defined under the section entitled (“The Distributor”);
(c) the fees and certain expenses of the Custodian (as defined under the section entitled “Custodian”) and Transfer
y

Dividend Disbursing Agent (as defined under
the section entitled “Transfer Agent”), including the cost of maintaining certain required records of the Trust and
of pricing the Trust’s shares; (d) the charges and expenses of legal counsel and independent accountants for the Trust; (e)
brokerage commissions and any issue or transfer taxes chargeable to the Trust in connection with its securities transactions; (f)
all taxes and corporate fees payable by the Trust to governmental agencies; (g) the fees of any trade association of which the
Trust may be a member; (h) the cost of fidelity bonds and liability insurance; (i) the fees and expenses involved in registering
and maintaining registration of the Trust and of its shares with the SEC, qualifying its shares under state securities laws, including
the preparation and printing of the Trust’s registration statements and prospectuses for such purposes; (j) all expenses
of shareholders and Trustees’ meetings (including travel expenses of Trustees and officers of the Trust who are directors,
officers or employees of the Advisor); (k) the costs of preparing, printing and mailing reports, proxy statements and prospectuses
to shareholders in the amount necessary for distribution to the shareholders; and (l) litigation and indemnification expenses and
other extraordinary expenses not incurred in the ordinary course of each Fund’s business.

The Advisor may make payments to banks or other
financial institutions that provide shareholder services and administer shareholder accounts. If a bank or other financial
institution were prohibited from continuing to perform all or a part of such services, management of the Funds believes that there
would be no material impact on each Fund or its shareholders. Banks and other financial institutions may charge their
customers fees for offering these services to the extent permitted by applicable regulatory authorities, and the overall return
to those shareholders availing themselves of the bank services will be lower than to those shareholders who do not. los
Funds may from time to time purchase securities issued by banks and other financial institutions which provide such services; sin embargo,
in selecting investments for a Fund, no preference will be shown for such securities.

Codes of Ethics

The Trust and the Advisor
each have adopted codes of ethics under Rule 17j-1 under the 1940 Act that governs the personal securities transactions of their
board members, officers and employees who may have access to current trading information of the Trust. Under the code of ethics
adopted by the Trust (the “Code”), the Trustees are permitted to invest in securities that may also be purchased by
the Fund.

In addition, the Code, which
applies only to the Trust’s executive officers to ensure that these officers promote professional conduct in the practice
of corporate governance and management. The purpose behind these guidelines is to promote i) honest and ethical conduct, including
the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; ii) full, fair,
accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the SEC and
in other public communications made by the Fund; iii) compliance with applicable governmental laws, rule and regulations; iv) the
prompt internal reporting of violations of this Code to an appropriate person or persons identified in the Code; and v) accountability
for adherence to the Code.

Proxy Voting Policies

The Board has adopted Proxy Voting Policies
and Procedures (“Policies”) on behalf of the Trust, which delegate the responsibility for voting proxies to the Advisor,
subject to the Board’s continuing oversight. The Policies require that the Advisor vote proxies received in a manner consistent
with the best interests of each Fund and its shareholders. The Policies also require the Advisor to present to the Board, at least
annually, the Advisor’s Proxy Policies and a record of each proxy voted by the Advisor on behalf of a Fund, including a report
on the resolution of all proxies identified by the Advisor as involving a conflict of interest. A copy of the Advisor’s proxy
voting policies is attached hereto as Appendix A.

Más información. Information regarding
how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available
(1) without charge, upon request, by calling the Fund at 1–800-711-9164 y 2)
on the U.S. SEC’s website at http://www.sec.gov and will be sent within three business days of receipt of a request.

DISTRIBUTION OF FUND SHARES

The Distributor

Ceros Financial Services, Inc., 1445 Research
Boulevard, Suite 530, Rockville, MD 20850 (the “Distributor”) serves as the principal underwriter and national distributor
for the shares of the Trust pursuant to a Distribution Agreement with the Trust (the “Distribution Agreement”). los
Distributor is registered as a broker-dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry
Regulatory Authority, Inc. (“FINRA”). The offering of the Funds’ shares is continuous. The Distribution Agreement
provides that the Distributor, as agent in connection with the distribution of Fund shares, will use reasonable efforts to facilitate
the sale of the Funds’ shares.

The Distribution Agreement provides that, unless
sooner terminated, it will continue in effect for two years initially and thereafter shall continue from year to year, subject
to annual approval by (a) the Board or a vote of a majority of the outstanding shares, and (b) by a majority of the Trustees who
are not interested persons of the Trust or of the Distributor by vote cast in person at a meeting called for the purpose of voting
on such approval.

The Distribution Agreement may be terminated
by the Trust at any time, without the payment of any penalty, by vote of a majority of the entire Board of the Trust or by vote
of a majority of the outstanding shares of each Fund on 60 days’ written notice to the Distributor, or by the Distributor
at any time, without the payment of any penalty, on 60 days’ written notice to the Trust. The Distribution Agreement will
automatically terminate in the event of its assignment as defined by the Investment Company Act.

The following table sets
forth the total compensation received by the Distributor from each Predecessor Fund during the fiscal year ended May 31, 2017:

Fund	*Net Underwriting Discounts and Commissions*	*Compensation on Redemptions and Repurchases*	*Brokerage Commissions*	*Other Compensation*
Leader Short Duration Bond Fund	$0	$0	$0	* *
Leader Total Return Fund	$0	$0	$0	* *
Leader Floating Rate Fund	$0	$0	$0	* *

* The Distributor
also receives 12b-1 fees from the Funds as described under the following section entitled “Rule 12b-1 Plan and Shareholder
Servicing Agreement”.

The following table sets
forth the total compensation received by the Distributor from each Predecessor Fund during the fiscal year ended May 31, 2018:

Fund	*Net Underwriting Discounts and Commissions*	*Compensation on Redemptions and Repurchases*	*Brokerage Commissions*	*Other Compensation*
Leader Short Duration Bond Fund	$0	$0	$0	* *
Leader Total Return Fund	$0	$0	$0	* *
Leader Floating Rate Fund	$0	$0	$0	* *

* The Distributor
also receives 12b-1 fees from the Funds as described under the following section entitled “Rule 12b-1 Plan and Shareholder
Servicing Agreement”.

The following table sets
forth the total compensation received by the Distributor from each Predecessor Fund during the fiscal year ended May 31, 2019:

Fund	*Net Underwriting Discounts and Commissions*	*Compensation on Redemptions and Repurchases*	*Brokerage Commissions*	*Other Compensation*
Leader Short Duration Bond Fund	$0	$0	$0	* *
Leader Total Return Fund	$0	$0	$0	* *
Leader Floating Rate Fund	$0	$0	$0	* *

* The Distributor
also receives 12b-1 fees from the Funds as described under the following section entitled “Rule 12b-1 Plan and Shareholder
Servicing Agreement”.

Rule 12b-1 Plan and Shareholder Servicing Agreement

The Trust, with respect to the Leader Short
Duration Bond Fund and Leader Total Return Fund, adopted the Trust’s Master Distribution and Shareholder Servicing Plans
pursuant to Rule 12b-1 under the 1940 Act for each of the Fund’s Class A shares, Class C shares and Investor Class shares
(the "Plans") pursuant to which each Fund is authorized to pay the Distributor, as compensation for Distributor's account
maintenance services under the respective Plans, a distribution and shareholder servicing fee at the rate of up to 0.50% for Class
A shares and Investor Class shares and 1.00% for Class C shares of each Fund's average daily net assets attributable to the relevant
clase. The Trust, with respect to the Leader Floating Rate Fund, has adopted the Trust’s Master Distribution and Shareholder
Servicing Plan for Investor Class shares (the “Plan”) pursuant to Rule 12b-1 of the 1940 Act which allows the Fund
to pay the Fund’s distributor an annual fee for distribution and shareholder servicing expenses of 0.50% of Fund’s
average daily net assets attributable to Investor Class shares. For the current fiscal year of the Leader Floating Rate Fund, the
Board has authorized a rate of 0.38% for Investor Class shares. Such fees are to be paid by each Fund monthly, or at such other
intervals as the Board shall determine. Such fees shall be based upon each Fund's average daily net assets during the preceding
month, and shall be calculated and accrued daily. Each Fund may pay fees to the Distributor at a lesser rate, as agreed upon by
the Board of Trustees of the Trust and the Distributor. The Plans authorizes payments to the Distributor as compensation for providing
account maintenance services to Class A, Class C and Investor Class Fund shareholders, respectively, including arranging for certain
securities dealers or brokers, administrators and others ("Recipients") to provide these services and paying compensation
for these services.

The services to be provided under the Plans
by Recipients may include, but are not limited to, the following: assistance in the offering and sale of Class A, Class C and Investor
Class and in other aspects of the marketing of the shares to clients or prospective clients of the respective recipients; answering
routine inquiries concerning the Fund; assisting in the establishment and maintenance of accounts or sub-accounts in the Funds
and in processing purchase and redemption transactions; making the Funds’ investment plan and shareholder services available;
and providing such other information and services to investors in shares of the Funds as the Distributor or the Trust, on behalf
of the Funds, may reasonably request. The distribution services shall also include any advertising and marketing services provided
by or arranged by the Distributor with respect to the Funds.

The Distributor is required to provide a written
report, at least quarterly to the Board of Trustees of the Trust, specifying in reasonable detail the amounts expended pursuant
to each of the Plans and the purposes for which such expenditures were made. Further, the Distributor will inform the Board of
any Rule 12b-1 fees to be paid by the Distributor to Recipients.

The initial term of each Plan is one year and
it will continue in effect from year to year thereafter, provided such continuance is specifically approved at least annually by
a majority of the Board of Trustees of the Trust and a majority of the Trustees who are not “interested persons” of
the Trust and do not have a direct or indirect financial interest in the Rule 12b-1 Plan (“Rule 12b-1 Trustees”) by
votes cast in person at a meeting called for the purpose of voting on the Rule 12b-1 Plan. The Plan may be terminated at any time
by the Trust

or the Fund by vote of a majority of the Rule
12b-1 Trustees or by vote of a majority of the outstanding voting shares of the Fund.

A Plan may not be amended to increase materially
the amount of the Distributor’s compensation to be paid by the Fund, unless such amendment is approved by the vote of a majority
of the outstanding voting securities of the Fund (as defined in the 1940 Act). All material amendments must be approved by a majority
of the Board of Trustees of the Trust and a majority of the Rule 12b- 1 Trustees by votes cast in person at a meeting called for
the purpose of voting on a Rule 12b-1 Plan. During the term of the Rule 12b-1 Plan, the selection and nomination of non-interested
Trustees of the Trust will be committed to the discretion of current non-interested Trustees. The Distributor will preserve copies
of the Plan, any related agreements that are signed by the Distributor, and all reports that are filed by the Distributor, for
a period of not less than six years from the date of such document and for at least the first two years in an easily accessible
place.

Any agreement related to a Plan will be in
writing and provide that: (a) it may be terminated by the Trust or with respect to the Funds at any time upon sixty days’
written notice, without the payment of any penalty, by vote of a majority of the respective Rule 12b-1 Trustees, or by vote of
a majority of the outstanding voting securities of the Trust or the Fund; (b) it will automatically terminate in the event of its
assignment (as defined in the 1940 Act); and (c) it will continue in effect for a period of more than one year from the date of
its execution or adoption only so long as such continuance is specifically approved at least annually by a majority of the Board
and a majority of the Rule 12b-1 Trustees by votes cast in person at a meeting called for the purpose of voting on such agreement.

The distribution related fees set forth below
are related to the activities of the Predecessor Funds.

During the fiscal year ended May 31, 2019,
Leader Short Duration Bond Fund paid $313,687 in distribution related fees pursuant to a Rule 12b-1 Plan. During the fiscal year
ended May 31, 2018, Leader Short Duration Bond Fund paid $570,810 in distribution related fees pursuant to a Rule 12b-1 Plan. Durante
the fiscal year ended May 31, 2017, Leader Short Duration Bond Fund paid $877,437 in distribution related fees pursuant to a Rule
12b-1 Plan. Leader Short Duration Bond Fund paid the following allocated distribution fees:

Actual 12b-1 Expenditures Paid by Leader Short Duration Bond Fund Shares During the Fiscal Year Ended May 31, 2019
	Total Dollars Allocated
Advertising/Marketing	$0
Printing/Postage	$0
Payment to distributor	$27,918
Payment to dealers	$260,235
Compensation to sales personnel	$0
Other	$25,534
Total	$313,687

During the fiscal period ended May 31, 2019,
Leader Total Return Fund paid $79,894 in distribution related fees pursuant to a 12b-1 Plan. During the fiscal period ended May
31, 2018, Leader Total Return Fund paid $244,706 in distribution related fees pursuant to a 12b-1 Plan. During the fiscal period
ended May 31, 2017, Leader Total Return Fund paid $177,975 in distribution related fees pursuant to a 12b-1 Plan. For the fiscal
period indicated below, Leader Total Return Fund paid the following allocated distribution fees:

Actual 12b-1 Expenditures Paid by Leader Total Return Fund Shares During the Fiscal Period Ended May 31, 2019
	Total Dollars Allocated
Advertising/Marketing	$0
Printing/Postage	$0
Payment to distributor	$10,003
Payment to dealers	$66,280
Compensation to sales personnel	$0
Other	$3,611
Total	$79,894

During the fiscal period ended May 31, 2019,
Leader Floating Rate Fund paid $78,500 in distribution related fees pursuant to a 12b-1 Plan. During the fiscal period ended May
31, 2018, Leader Floating Rate Fund paid $31,152 in distribution related fees pursuant to a 12b-1 Plan. During the fiscal period
ended May 31, 2017, Leader Floating Rate Fund paid $1,315 in distribution related fees pursuant to a 12b-1 Plan. For the fiscal
period indicated below, Leader Total Return Fund paid the following allocated distribution fees:

Actual 12b-1 Expenditures Paid by Leader Floating Rate Fund Shares During the Fiscal Period Ended May 31, 2019
	Total Dollars Allocated
Advertising/Marketing	$0
Printing/Postage	$0
Payment to distributor	$12,623
Payment to dealers	$65,124
Compensation to sales personnel	$0
Other	$754
Total	$78,500

PORTFOLIO MANAGER

Portfolio Manager

John E. Lekas serves as portfolio manager for
the Funds and, as such, is responsible for making all investment decisions of the Funds (“Portfolio Manager”). Como
of May 31, 2019, the Portfolio Manager was responsible for the management of the following types of accounts in addition to the
Funds:

John E. Lekas

Category of Account	Total Number of Accounts Managed	Total Assets in Accounts Managed	Number of Accounts for cual Advisory Fee is Residencia en Actuación	Assets in Accounts for which Advisory Fee is Based on Actuación
Other Registered Investment Companies	0 0	$0	0 0	$0
Other Pooled Investment Vehicles	0 0	$0	0 0	$0
Other Accounts	0 0	$0	0 0	$0

Potential Conflicts of Interest

The Advisor does not believe that any material
conflicts of interest exist as a result of Mr. Lekas managing the Funds.

The Advisor may occasionally recommend purchases
or sales of the same portfolio securities for the Funds. In such circumstances, it is the policy of the Advisor to allocate purchases
and sales among the Funds in a manner which the Advisor deems equitable, taking into consideration such factors as relative size
of the portfolios, concentration of holdings, investment objectives, tax status, cash availability, purchase costs, holding periods
and other pertinent factors relative to each series. The Advisor believes that it is highly unlikely that simultaneous transactions
in Funds would adversely affect the price at which such security can be purchased or sold.

Compensation.

The Portfolio Manager is compensated for his
services by the Advisor. The Portfolio Manager’s compensation consists of a base salary. Additionally, the
Portfolio Manager receives an annual discretionary bonus based on the Advisor’s profits.

Ownership of Securities.

As of May 31, 2019, the Portfolio Manager’s ownership of the
Predecessor Funds was as follows:

Portfolio Manager

Dollar Range of Shares Owned

John E. Lekas

Leader Short Duration Bond Fund

Leader Total Return Fund

Leader Floating Rate Fund

100,001-500,000

1,000,000 -1,500,000

ALLOCATION OF PORTFOLIO BROKERAGE

Specific decisions to purchase or sell securities
for the Funds are made by the portfolio manager who is an employee of the Advisor. The Advisor is authorized by the Trustees to
allocate the orders placed by them on behalf of the Funds to brokers or dealers who may, but need not, provide research or statistical
material or other services to the Funds or the Advisor for the Funds’ use. Such allocation is to be in such amounts and proportions
as the Advisor may determine.

In selecting a broker or dealer to execute
each particular transaction, the Advisor will take the following into consideration:

·
the best net price available;

·
the reliability, integrity and financial condition of the broker or dealer;

·
the size of and difficulty in executing the order; y

·
the value of the expected contribution of the broker or dealer to the investment performance of the Fund on a continuing
basis.

Brokers or dealers executing
a portfolio transaction on behalf of the Funds may receive a commission in excess of the amount of commission another broker or
dealer would have charged for executing the transaction if the Advisor determines in good faith that such commission is reasonable
in relation to the value of brokerage, research and other services provided to the Funds. In allocating portfolio brokerage, the
Advisor may select brokers or dealers who also provide brokerage, research and other services to other accounts over which the
Advisor exercises investment discretion. Some of the services received as the result of Fund

transactions may primarily benefit accounts
other than the Funds’, while services received as the result of portfolio transactions effected on behalf of those other
accounts may primarily benefit the Fund.

The Predecessor Funds paid
the following brokerage commissions in the amounts and for the periods noted below.

For the fiscal year ended
May 31, 2017, Leader Short Duration Bond Fund paid brokerage commissions of $227,620. For the fiscal year ended May 31, 2018, Leader
Short Duration Bond Fund paid brokerage commissions of $171,306. For the fiscal year ended May 31, 2019, Leader Short Duration
Bond Fund paid brokerage commissions of $356,123.

For the fiscal year ended
May 31, 2017, Leader Total Return Fund paid brokerage commissions of approximately $30,344. For the fiscal year ended May 31, 2018,
Leader Total Return Fund paid brokerage commissions of approximately $75,746. For the fiscal year ended May 31, 2019, Leader Total
Return Fund paid brokerage commissions of approximately $102,134.

por
the fiscal year ended May 31, 2017, Leader Floating Rate Fund paid brokerage commissions of approximately $0. For the fiscal year
ended May 31, 2018, Leader Floating Rate Fund paid brokerage commissions of approximately $0. For the fiscal year ended May 31,
2019, Leader Floating Rate Fund paid brokerage commissions of approximately $19,346.

PORTFOLIO TURNOVER

A Fund’s portfolio turnover rate is calculated
by dividing the lesser of purchases or sales of portfolio securities for the fiscal year by the monthly average of the value of
the portfolio securities owned by the Fund during the fiscal year. The calculation excludes from both the numerator and the denominator
securities with maturities at the time of acquisition of one year or less. High portfolio turnover involves correspondingly greater
brokerage commissions and other transaction costs, which will be borne directly by a Fund. A 100% turnover rate would occur if
all of a Fund’s portfolio securities were replaced once within a one-year period. A Fund may engage in active trading to
achieve its investment objectives and may experience episodes of substantial portfolio turnover occasionally. The following portfolio
turnover rate information is for the Predecessor Funds. For the fiscal years ended May 31, 2018 and 2019, Leader Short Duration
Bond Fund’s portfolio turnover rate was approximately 325.30% and 496.37%, respectively. For the fiscal years ended May 31,
2018 and 2019, Leader Total Return Fund’s portfolio turnover rate was 535.81% and 397.79%, respectively. For the fiscal years
ended May 31, 2018 and 2019, Leader Floating Rate Fund’s portfolio turnover rate was approximately 128.78% and 248.18%, respectively.
Turnover increased as the Funds made large strategic changes to portfolio allocation to take advantage of the changing interest
rate landscape and to address an increase in capital share activity.

OTHER SERVICE PROVIDERS

Fund Administration, Fund Accounting and Transfer Agent Services

Gemini Fund Services, LLC, (“GFS”),
which has its principal office at 80 Arkay Drive, Suite 110., Hauppauge, New York 11788, serves as administrator, fund accountant
and transfer agent for the Funds pursuant to a Fund Services Agreement (the “Agreement”) with the Trust and subject
to the supervision of the Board. GFS is primarily in the business of providing administrative, fund accounting and transfer agent
services to retail and institutional mutual funds. GFS may also provide persons to serve as officers of the Fund. Such officers
may be directors, officers or employees of GFS or its affiliates.

On February 1, 2019, NorthStar Financial Services
Group, LLC, the parent company of GFS and its affiliated companies including Northern Lights Distributors, LLC and Northern Lights
Compliance Services, LLC (collectively, the “Gemini Companies”), sold its interest in the Gemini Companies to a third
party private equity firm that contemporaneously acquired Ultimus Fund Solutions, LLC (an independent mutual fund administration
firm) and its affiliates (collectively, the “Ultimus Companies”). As a result of these separate transactions, the Gemini
Companies and the Ultimus Companies are now indirectly owned through a common parent entity, The Ultimus Group, LLC.

The Agreement became effective on July 15,
2019 and will remain in effect for 2 years from the applicable effective date for the Fund, and will continue in effect for successive
twelve-month periods provided that such continuance is specifically approved at least annually by a majority of the Board. los
Agreement is terminable by the Board or GFS on 90 days’ written notice and may be assigned by either party, provided that
the Trust may not assign this agreement without the prior written consent of GFS. The Agreement provides that GFS shall be without
liability for any action reasonably taken or omitted pursuant to the Agreement.

Under the Agreement, GFS performs administrative
services, including: (1) monitoring the performance of administrative and professional services rendered to the Trust by others
service providers; (2) monitoring Fund holdings and operations for post-trade compliance with each Funds’ registration statement
and applicable laws and rules; (3) preparing and coordinating the printing of semi-annual and annual financial statements; (4)
preparing selected management reports for performance and compliance analyses; (5) preparing and disseminating materials for and
attending and participating in meetings of the Board; (6) determining income and capital gains available for distribution and calculating
distributions required to meet regulatory, income, and excise tax requirements; (7) reviewing the Trust's federal, state, and local
tax returns as prepared and signed by the Trust's independent public accountants; (8) preparing and maintaining the Trust's operating
expense budget to determine proper expense accruals to be charged to each Fund to calculate its daily net asset value; (9) assisting
in and monitoring the preparation, filing, printing and where applicable, dissemination to shareholders of amendments to the Trust’s
Registration Statement on Form N-1A, periodic reports to the Trustees, shareholders and the SEC, notices pursuant to Rule 24f-2,
proxy materials and reports to the SEC on Forms N-CEN, N-CSR, N-Q, N-PORT, N-23c-3 and N-PX; (10) coordinating the Trust's audits
and examinations by assisting each Fund’s independent public accountants; (11) determining, in consultation with others,
the jurisdictions in which shares of the Trust shall be registered or qualified for sale and facilitating such registration or
qualification; (12) monitoring sales of shares and ensure that the shares are properly and duly registered with the SEC; (13) monitoring
the calculation of performance data for the Funds; (14) preparing, or cause to be prepared, expense and financial reports; (15)
preparing authorizations for the payment of Trust expenses and pay, from Trust assets, all bills of the Trust; (16) providing information
typically supplied in the investment company industry to companies that track or report price, performance or other information
with respect to investment companies; (17) upon request, assisting each Fund in the evaluation and selection of other service providers,
such as independent public accountants, printers, EDGAR providers and proxy solicitors (such parties may be affiliates of GFS)
and (18) performing other services, recordkeeping and assistance relating to the affairs of the Trust as the Trust may, from time
to time, reasonably request.

For the administrative services rendered to
the Funds by GFS, the Funds pay GFS the greater of an annual minimum fee or an asset based fee, which scales downward based upon
net assets. The Funds also pay GFS for any out-of-pocket expenses. The Funds also pay the Administrator for any out-of-pocket expenses.

GFS received the following fees from the Predecessor
Funds for the periods noted herein.

For the fiscal year ended May 31, 2017, Leader
Short Duration Bond Fund paid $268,756 for administrative services fees. For the fiscal year ended May 31, 2018, Leader Short Duration
Bond Fund paid $174,646 for administrative services fees. For the fiscal year ended May 31, 2019, Leader Short Duration Bond Fund
paid $122,833 for administrative services fees.

For the fiscal period ended May 31, 2017, Leader
Total Return Fund paid $54,783 for administrative service fees. For the fiscal period ended May 31, 2018, Leader Total Return Fund
paid $36,433 for administrative

service fees.
For the fiscal period ended May 31, 2019, Leader Total Return Fund paid $39.709 for administrative service fees.

For the fiscal period ended May 31, 2017, Leader
Floating Rate Fund paid $12,281 for administrative service fees. For the fiscal period ended May 31, 2018, Leader Floating Rate
Fund paid $60,883 for administrative service fees. For the fiscal period ended May 31, 2019, Leader Floating Rate Fund paid $168,413
for administrative service fees

GFS also provides the Funds with accounting
services, including: (i) daily computation of net asset value; (ii) maintenance of security ledgers and books and records as required
by the 1940 Act; (iii) production of the Funds’ listing of portfolio securities and general ledger reports; (iv) reconciliation
of accounting records; (v) calculation of yield and total return for the Funds; (vi) maintenance of certain books and records described
in Rule 31a-1 under the 1940 Act, and reconciliation of account information and balances among the Funds’ custodian and Advisor;
and (vii) monitoring and evaluation of daily income and expense accruals, and sales and redemptions of shares of the Funds.

For the fund accounting services rendered to
the Funds by GFS, the Funds pay GFS the greater of an annual minimum fee or an asset based fee, which scales downward based upon
assets. The Funds also pay the Administrator for any out-of-pocket expenses.

For the fiscal year ended May 31, 2017, Leader
Short Duration Bond Fund paid $75,232 for fund accounting fees. For the fiscal year ended May 31, 2018, Leader Short Duration Bond
Fund paid $59,359 for fund accounting fees. For the fiscal year ended May 31, 2019, Leader Short Duration Bond Fund paid $53,700
for fund accounting fees.

For the fiscal period ended May 31, 2017, Leader
Total Return Fund paid $64,749 for fund accounting fees. For the fiscal year ended May 31, 2018, Leader Total Return Fund paid
$24,751 for fund accounting fees.

For the fiscal year ended May 31, 2019, Leader
Total Return Fund paid $45,364 for fund accounting fees.

For the fiscal period ended May 31, 2017, Leader
Floating Rate Fund paid $5,492 for fund accounting fees.

For the fiscal period ended May 31, 2018, Leader
Floating Rate Fund paid $27,967 for fund accounting fees.

For the fiscal period ended May 31, 2019, Leader
Floating Rate Fund paid $42,573 for fund accounting fees.

GFS also acts as transfer, dividend disbursing,
and shareholder servicing agent for the Funds pursuant to the Agreement. Under the Agreement, GFS is responsible for administering
and performing transfer agent functions, dividend distribution, shareholder administration, and maintaining necessary records in
accordance with applicable rules and regulations.

For the transfer agent services rendered to
the Funds by GFS, the Funds pay GFS the greater of an annual minimum fee or an asset based fee, which scales downward based upon
assets. The Funds also pay the Administrator for any out-of-pocket expenses.

For the fiscal year ended May 31, 2017, Leader
Short Duration Bond Fund paid $115,533 for transfer agency fees. For the fiscal year ended May 31, 2018, Leader Short Duration
Bond Fund paid $94,988 for transfer agency fees. For the fiscal year ended May 31, 2019, Leader Short Duration Bond Fund paid $81,428
for transfer agency fees.

For the fiscal period ended May 31, 2017, Leader
Total Return Fund paid $46,981 for transfer agency fees.

For the fiscal year ended May 31, 2018, Leader
Total Return Fund paid $66,558 for transfer agency fees.

For the fiscal year ended May 31, 2019, Leader
Total Return Fund paid $61,734 for transfer agency fees.

For the fiscal period ended May 31, 2017, Leader
Floating Rate Fund paid $9,547 for transfer agency fees.

For the fiscal period ended May 31, 2018, Leader
Floating Rate Fund paid $25,505 for transfer agency fees.

For the fiscal period ended May 31, 2019, Leader
Floating Rate Fund paid $38,334 for transfer agency fees.

Custodian

Fifth Third Bank (the
"Custodian") 38 Fountain Square Plaza Cincinnati, OH 45202 serves as the custodian of the Funds’ assets pursuant
to a Custody Agreement by and between the Custodian and the Trust on behalf of the Funds. The Custodian’s responsibilities
include safeguarding and controlling the Funds’ cash and securities, handling the receipt and delivery of securities, and
collecting interest and dividends on the Funds’ investments. Pursuant to the Custody Agreement, the Custodian also maintains
original entry documents and books of record and general ledgers; posts cash receipts and disbursements; and records purchases
and sales based upon communications from the Advisor. The Funds may employ foreign sub-custodians that are approved by the Board
to hold foreign assets.

Compliance Officer

Northern Lights Compliance Services, LLC (“NLCS”),
17605 Wright Street, Suite 2, Omaha, NE 68130, an affiliate of GFS and the Distributor, provides a Chief Compliance Officer to
the Trust as well as related compliance services pursuant to a consulting agreement between NLCS and the Trust. NLCS’s compliance
services consist primarily of reviewing and assessing the policies and procedures of the Trust and its service providers pertaining
to compliance with applicable federal securities laws, including Rule 38a-1 under the 1940 Act. For the compliance services rendered
to the Fund, the Fund pays NLCS an annual fixed fee and an asset based fee, which scales downward based upon the Fund’s net
assets The Funds also pay NLCS for any out-of-pocket expenses.

NLCS received the following compliance service
fees from the Predecessor Funds for the periods noted herein.

During the fiscal year ended May 31, 2017,
the Leader Short Duration Bond Fund paid $20,493 for compliance service fees. During the fiscal year ended May 31, 2018, the Leader
Short Duration Bond Fund paid $19,083 for compliance service fees. During the fiscal year ended May 31, 2019 the Leader Short Duration
Bond Fund paid $17,165 for compliance service fees.

During the fiscal period ended May 31, 2017,
the Leader Total Return Fund paid $6,102 for compliance service fees. During the fiscal year ended May 31, 2018, the Leader Total
Return Fund paid $10,381 for compliance service fees. During the fiscal year ended May 31, 2019, the Leader Total Return Fund paid
$8,665 for compliance service fees.

During the fiscal period ended May 31, 2017,
the Leader Floating Rate Fund paid $4,400 for compliance service fees. During the fiscal period ended May 31, 2018, the Leader
Floating Rate Fund paid $16,001 for compliance service fees. During the fiscal period ended May 31, 2019, the Leader Floating Rate
Fund paid $16,372 for compliance service fees.

DESCRIPTION OF SHARES

Each share of beneficial
interest of the Trust has one vote in the election of Trustees. Cumulative voting is not authorized for the Trust. This means that
the holders of more than 50% of the shares voting for the election of Trustees can elect 100% of the Trustees if they choose to
do so, and, in that event, the holders of the remaining shares will be unable to elect any Trustees.

Shareholders of the Trust
and any other future series of the Trust will vote in the aggregate and not by series except as otherwise required by law or when
the Board determines that the matter to be voted upon affects only the interest of the shareholders of a particular series. Matters
such as ratification of the independent public accountants and election of Trustees are not subject to separate voting requirements
and may be acted upon by shareholders of the Trust voting without regard to series.

The Trust is authorized to
issue an unlimited number of shares of beneficial interest. Each share has equal dividend, distribution and liquidation rights.
There are no conversion or preemptive rights applicable to any shares of the Funds. All shares issued are fully paid and non-assessable.

ANTI-MONEY LAUNDERING PROGRAM

The Trust has established
an Anti-Money Laundering Compliance Program (the “Program”) as required by Section 352 the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“USA PATRIOT Act”).
To ensure compliance with this law, the Trust’s Program is written and has been approved by the Fund’s Board of Trustees.
The Program provides for the development of policies, procedures and internal controls, reasonably designed to prevent money laundering,
the designation of an anti-money laundering compliance officer, who is responsible for implementing and monitoring the Program,
ongoing anti-money laundering training for appropriate persons and an independent audit function to determine the effectiveness
of the Program. The Trust’s secretary serves as its Anti-Money Laundering Compliance Officer.

Procedures to implement the
Program include, but are not limited to, determining that the Fund’s Transfer Agent has established reasonable anti-money
laundering procedures, have reported suspicious and/or fraudulent activity and have completed thorough reviews of all new opening
account applications. The Trust will not transact business with any person or entity whose identity cannot be adequately verified
under the provisions of the USA PATRIOT Act.

As a result of the Program,
the Trust may be required to “freeze” the account of a shareholder if the shareholder appears to be involved in suspicious
activity or if certain account information matches information on government lists of known terrorists or other suspicious persons,
or the Trust may be required to transfer the account or proceeds of the account to a governmental agency.

PURCHASE, REDEMPTION AND PRICING OF SHARES

Calculation of Share Price

As indicated in the Prospectus under the heading
“Net Asset Value,” (“NAV”) the NAV of each Fund’s shares is determined by dividing the total value
of the Fund’s portfolio investments and other assets, less any liabilities, by the total number of shares outstanding of
the Fund.

For purposes of calculating the NAV, portfolio
securities and other assets for which market quotes are available are stated at market value. Market value is generally determined
on the basis last quoted sales price on the day of valuation on the primary exchange or, in the absence of a sale on the primary
exchange, at the mean between the current bid and ask prices on such exchange. Securities primarily traded in the NASDAQ National
Market System for which market quotations are readily available shall be valued using the NASDAQ Official Closing Price (“NOCP”).
If the NOCP is not available, such securities shall be valued at the last sale price on the day of valuation on the primary exchange,
or if there has been no sale on such day, the mean between the current bid and ask prices on such exchange. Certain securities
or investments for which daily market quotes are not readily available may be valued, pursuant to guidelines established by the
Board, with reference to other securities or indices. Debt securities not traded on an exchange may be valued at prices supplied
by a pricing agent(s) based on broker or dealer supplied valuations or matrix pricing, a method of valuing securities by reference
to the value of other securities with similar characteristics, such as rating, interest rate and maturity. Short-term investments
having a maturity of 60 days or less may be generally valued at amortized cost. Exchange traded options are valued at the last
quoted sales price or, in the absence of a sale, at the mean between the current bid and ask prices on the exchange on which such
options are traded. Futures and options on futures are valued at the settlement price determined by the exchange. Other securities
for which market quotes are not readily available are valued at fair value as determined in good faith by the Board or persons
acting at their direction. Swap agreements and other derivatives are generally valued daily based upon quotations from market makers
or by a pricing service in accordance with the valuation procedures approved by the Board.

Under certain circumstances, the Fund may use
an independent pricing service to calculate the fair market value of foreign equity securities on a daily basis by applying valuation
factors to the last sale price or the mean price as noted above. The fair market values supplied by the independent pricing service
will generally reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or
the value of other instruments that have a strong correlation to the fair-valued securities. The independent pricing service will
also take into account the current relevant currency exchange rate. A security that is fair valued may be valued at a price higher
or lower than actual market quotations or the value determined by other funds using their own fair valuation procedures. Porque
foreign securities may trade on days when Fund shares are not priced, the value of securities held by the Fund can change on days
when Fund shares cannot be redeemed or purchased. In the event that a foreign security’s market quotations are not readily
available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closed before the Fund’s
calculation of NAV), the security will be valued at its fair market value as determined in good faith by the Fund’s fair
value committee in accordance with procedures approved by the Board as discussed below. Without fair valuation, it is possible
that short-term traders could take advantage of the arbitrage opportunity and dilute the NAV of long-term investors. Fair valuation
of the Fund’s portfolio securities can serve to reduce arbitrage opportunities available to short-term traders, but there
is no assurance that it will prevent dilution of the Fund’s NAV by short-term traders. In addition, because the Fund may
invest in underlying ETFs which hold portfolio securities primarily listed on foreign (non-U.S.) exchanges, and these exchanges
may trade on weekends or other days when the underlying ETFs do not price their shares, the value of these portfolio securities
may change on days when you may not be able to buy or sell Fund shares.

Investments initially valued in currencies
other than the U.S. dollar are converted to U.S. dollars using exchange rates obtained from pricing services. As a result, the
NAV of a Fund’s shares may be affected by changes in the value of currencies in relation to the U.S. dollar. The value of
securities traded in markets outside the United States or denominated in currencies other than the U.S. dollar may be affected
significantly on a day that the New York Stock Exchange is closed and an investor is not able to purchase, redeem or exchange shares.

Fund shares are valued at the close of regular
trading on the New York Stock Exchange (“NYSE”) (normally 4:00 p.m., Eastern time) (the “NYSE Close”) on
each day that the New York Stock Exchange is open. For purposes of calculating the NAV, the Fund normally uses pricing data for
domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements
that take place after the NYSE Close. Domestic fixed income and foreign securities are normally priced using data reflecting the
earlier closing of the principal markets for those securities. Information that becomes known to a Fund or its agents after the
NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of the security or the
NAV determined earlier that day.

When market quotations are insufficient or
not readily available, the Funds may value securities at fair value or estimate their value as determined in good faith by the
Board or their designees, pursuant to procedures approved by the Board. Fair valuation may also be used by the Board if extraordinary
events occur after the close of the relevant market but prior to the NYSE Close.

The Fund may hold securities, such as private
placements, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations
are not readily available or are determined to be unreliable. These securities will be valued at their fair market value as determined
using the “fair value” procedures approved by the Board. The Board has delegated execution of these procedures to a
fair value team composed of one of more representatives from each of the (i) Trust, (ii) administrator, and (iii) advisor and/or
sub-advisor. The team may also enlist third party consultants such as an audit firm or financial officer of a security issuer on
an as-needed basis to assist in determining a security-specific fair value. The Board reviews and ratifies the execution of this
process and the resultant fair value prices at least quarterly to assure the process produces reliable results.

Fair Value Committee and Valuation Process.
This committee is composed of one of more representatives from each of the (i) Trust, (ii) administrator, and (iii) Advisor and/or
sub-advisor. The applicable investments are valued collectively via inputs from each of these groups. For example, fair value determinations
are required for the following securities: (i) securities for which market quotations are insufficient or not readily

available on a particular business day (including
securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source), (ii) securities
for which, in the judgment of the Advisor or sub-advisor, the prices or values available do not represent the fair value of the
instrument. Factors which may cause the Advisor or sub-advisor to make such a judgment include, but are not limited to, the following:
only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales;
the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation
of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value
thereof has occurred (a “significant event”) since the closing prices were established on the principal exchange on
which they are traded, but prior to a Fund’s calculation of its net asset value. Specifically, interests in commodity pools
or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other
asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private placements or non-traded
securities are valued via inputs from the advisor or sub-advisor valuation based upon the current bid for the security from two
or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take
into consideration all relevant factors as may be appropriate under the circumstances). If the Advisor is unable to obtain a current
bid from such independent dealers or other independent parties, the fair value team shall determine the fair value of such security
using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Fund's
holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent
thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions
on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar
securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities;
(ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities
into which the security is convertible or exchangeable.

Standards For Fair Value Determinations. Como
a general principle, the fair value of a security is the amount that a Fund might reasonably expect to realize upon its current
rebaja. The Trust has adopted Financial Accounting Standards Board Statement of Financial Accounting Standards Codification Topic
820, Fair Value Measurements and Disclosures ("ASC 820"). In accordance with ASC 820, fair value is defined as the price
that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most
advantageous market of the investment. ASC 820 establishes a three-tier hierarchy to maximize the use of observable market data
and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.
Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions
about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing
model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs
are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market
data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's
own assumptions about the assumptions market participants would use in pricing the asset or liability, developed based on the best
information available under the circumstances.

Various inputs are used in determining the
value of each Fund's investments relating to ASC 820. These inputs are summarized in the three broad levels listed below.

Level 1 – quoted prices in active markets
for identical securities.

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 a Fund’s own assumptions in determining the fair value of investments).

The fair value team takes into account the
relevant factors and surrounding circumstances, which may include: (i) the nature and pricing history (if any) of the security;
(ii) whether any dealer quotations for the security are available; (iii) possible valuation methodologies that could be used to
determine the fair value of

the security; (iv) the recommendation of a
portfolio manager of the Fund with respect to the valuation of the security; (v) whether the same or similar securities are held
by other Funds managed by the Advisor (or sub-advisor) or other Funds and the method used to price the security in those Funds;
(vi) the extent to which the fair value to be determined for the security will result from the use of data or formulae produced
by independent third parties and (vii) the liquidity or illiquidity of the market for the security.

Board of Trustees Determination. The Board
of Trustees meets at least quarterly to consider the valuations provided by the fair value committee and to ratify the valuations
made for the applicable securities. The Board of Trustees considers the reports provided by the fair value committee, including
follow up studies of subsequent market-provided prices when available, in reviewing and determining in good faith the fair value
of the applicable portfolio securities.

The Trust expects that the New York Stock Exchange
will be closed on the following holidays: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Purchase of Shares

Orders for shares received
by a Fund in good order prior to the close of business on the NYSE on each day during such periods that the NYSE is open for trading
are priced at net asset value per share computed as of the close of the regular session of trading on the NYSE. Orders received
in good order after the close of the NYSE, or on a day it is not open for trading, are priced at the close of such NYSE on the
next day on which it is open for trading at the next determined net asset value per share.

Notice to Shareholders

Under section 72.1021(a)
of the Texas Property Code, initial investors in a Fund who are Texas residents may designate a representative to receive notices
of abandoned property in connection with Fund shares. Texas shareholders who wish to appoint a representative should notify the
Transfer Agent by writing to the address below to obtain a form for providing written notice to the Trust:

Leader Short Duration Bond
Fund,

Leader Total Return Fund,
y

Leader Floating Rate Fund

c/o Gemini Fund Services,
LLC

17645 Wright Street, Suite
200

Omaha, Nebraska 68130

Redemption of Shares

A Fund will redeem all or
any portion of a shareholder’s shares of the Fund when requested in accordance with the procedures set forth in the “Redemptions”
section of the Prospectus. Under the 1940 Act, a shareholder’s right to redeem shares and to receive payment therefore may
be suspended at times:

(a) when the NYSE
is closed, other than customary weekend and holiday closings;

(b) when trading on
that exchange is restricted for any reason;

(c) when an emergency
exists as a result of which disposal by the Fund of securities owned by it is not reasonably practicable or it is not reasonably
practicable for the Fund fairly to determine the value of its net assets, provided that applicable rules and regulations of the
SEC (or any succeeding governmental authority) will govern as to whether the conditions prescribed in (b) or (c) exist; o

(d) when the SEC by
order permits a suspension of the right to redemption or a postponement of the date of payment on redemption.

In case of suspension of the right of redemption,
payment of a redemption request will be made based on the net asset value next determined after the termination of the suspension.

Supporting documents in addition to those listed
under “Redemptions” in the Prospectus will be required from executors, administrators, Trustees, or if redemption is
requested by someone other than the shareholder

of record. Such documents include, but are
not restricted to, stock powers, Trust instruments, certificates of death, appointments as executor, certificates of corporate
authority and waiver of tax required in some states when settling estates.

TAXES

The following is a summary of certain additional
tax considerations generally affecting a Fund and its shareholders that are not described in the Prospectus. No attempt is made
to present a detailed explanation of the tax treatment of a Fund or its shareholders, and the discussion here and in the Prospectus
is not intended as a substitute for careful tax planning.

This “Taxes” section is based on
the Code and applicable regulations in effect on the date of this SAI. Future legislative, regulatory or administrative changes,
including provisions of current law that sunset and thereafter no longer apply, or court decisions may significantly change the
tax rules applicable to the Fund and its shareholders. Any of these changes or court decisions may have a retroactive effect.

This is for general information only
and not tax advice. All investors should consult their own tax advisors as to the federal, state, local and foreign tax provisions
applicable to them.

Taxation of the Funds

Each Fund has elected and intends to qualify,
or, if newly organized, intends to elect and qualify, each year as a regulated investment company (sometimes referred to as a “regulated
investment company,” “RIC” or “fund”) under Subchapter M of the Code. If a Fund so qualifies, the
Fund will not be subject to federal income tax on the portion of its investment company taxable income (that is, generally, taxable
interest, dividends, net short-term capital gains, and other taxable ordinary income, net of expenses, without regard to the deduction
for dividends paid) and net capital gain (that is, the excess of net long-term capital gains over net short-term capital losses)
that it distributes to shareholders.

To qualify for treatment as a regulated investment
company, each Fund must satisfy the following requirements:

Distribution Requirement —a Fund must distribute an amount equal to the sum of at least 90%
of its investment company taxable income and 90% of its net tax-exempt income, if any, for the tax year (including, for purposes
of satisfying this distribution requirement, certain distributions made by the Fund after the close of its taxable year that are
treated as made during such taxable year).

Income Requirement —a Fund must derive at least 90% of its gross income from dividends, interest,
certain payments with respect to securities loans, and gains from the sale or other disposition of stock, securities or foreign
currencies, or other income (including, but not limited to, gains from options, futures or forward contracts) derived from its
business of investing in such stock, securities or currencies and net income derived from qualified publicly traded partnerships
(“QPTPs”).

Asset Diversification Test —a Fund must satisfy the following asset diversification test
at the close of each quarter of the Fund’s tax year: (1) at least 50% of the value of the Fund’s assets must consist
of cash and cash items, U.S. government securities, securities of other regulated investment companies, and securities of other
issuers (as to which the Fund has not invested more than 5% of the value of the Fund’s total assets in securities of an issuer
and as to which the Fund does not hold more than 10% of the outstanding voting securities of the issuer); and (2) no more than
25% of the value of the Fund’s total assets may be invested in the securities of any one issuer (other than U.S. government
securities or securities of other regulated investment companies) or of two or more issuers which the Fund controls and which are
engaged in the same or similar trades or businesses, or, in the securities of one or more QPTPs.

In some circumstances, the character and timing
of income realized by a Fund for purposes of the Income Requirement or the identification of the issuer for purposes of the Asset
Diversification Test is uncertain

under current law with respect to a particular
investment, and an adverse determination or future guidance by the IRS with respect to such type of investment may adversely affect
a Fund’s ability to satisfy these requirements. See, “Tax Treatment of Portfolio Transactions” below with respect
to the application of these requirements to certain types of investments. In other circumstances, a Fund may be required to sell
portfolio holdings in order to meet the Income Requirement, Distribution Requirement, or Asset Diversification Test, which may
have a negative impact on the Fund’s income and performance. In lieu of potential disqualification, a Fund is permitted to
pay a tax for certain failures to satisfy the Asset Diversification Test or Income Requirement, which, in general, are limited
to those due to reasonable cause and not willful neglect.

Each Fund may use “equalization accounting”
(in lieu of making some cash distributions) in determining the portion of its income and gains that has been distributed. If a
Fund uses equalization accounting, it will allocate a portion of its undistributed investment company taxable income and net capital
gain to redemptions of Fund Shares and will correspondingly reduce the amount of such income and gains that it distributes in cash.
Certain aspects of equalization accounting are uncertain under current law. If the IRS determines that a Fund’s allocation
is improper and that the Fund has under-distributed its income and gain for any taxable year, the Fund may be liable for federal
income and/or excise tax. If, as a result of such adjustment, the Fund fails to satisfy the Distribution Requirement, the Fund
will not qualify that year as a regulated investment company the effect of which is described in the following paragraph.

If for any taxable year a Fund does not qualify
as a regulated investment company, all of its taxable income (including its net capital gain) would be subject to tax at regular
corporate rates without any deduction for dividends paid to shareholders, and the dividends would be taxable to the shareholders
as ordinary income (or possibly as qualified dividend income) to the extent of the Fund’s current and accumulated earnings
and profits. Failure to qualify as a regulated investment company would thus have a negative impact on a Fund’s income and
performance. Subject to savings provisions for certain failures to satisfy the Income Requirement or Asset Diversification Test,
which, in general, are limited to those due to reasonable cause and not willful neglect, it is possible that a Fund will not qualify
as a regulated investment company in any given tax year. Even if such savings provisions apply, a Fund may be subject to a monetary
sanction of $50,000 or more. Moreover, the Board reserves the right not to maintain the qualification of a Fund as a regulated
investment company if it determines such a course of action to be beneficial to shareholders.

Portfolio Turnover. For investors that
hold their Fund Shares in a taxable account, a high portfolio turnover rate may result in higher taxes. This is because a fund
with a high turnover rate is likely to accelerate the recognition of capital gains and more of such gains are likely to be taxable
as short-term rather than long-term capital gains in contrast to a comparable fund with a low turnover rate. Any such higher taxes
would reduce the Fund’s after-tax performance. See, “Taxation of Fund Distributions – Distributions of Capital Gains”
abajo. For non-U.S. investors, any such acceleration of the recognition of capital gains that results in more short-term and less
long-term capital gains being recognized by the Fund may cause such investors to be subject to increased U.S. withholding taxes.
See, “Non-U.S. Investors –Capital Gain Dividends” and “Short- Term Capital Gain Dividends and Interest
Related Dividends” below.

Capital Loss Carryovers. La capital
losses of a Fund, if any, do not flow through to shareholders. Rather, a Fund may use its capital losses, subject to applicable
limitations, to offset its capital gains without being required to pay taxes on or distribute to shareholders such gains that are
offset by the losses. Rules similar to those that apply to capital loss carryovers of individuals apply to RICs. Thus, if a Fund
has a "net capital loss" (that is, capital losses in excess of capital gains), the excess (if any) of the Fund's net
short-term capital losses over its net long-term capital gains is treated as a short-term capital loss arising on the first day
of the Fund's next taxable year, and the excess (if any) of the Fund's net long-term capital losses over its net short-term capital
gains is treated as a long-term capital loss arising on the first day of the Fund's next taxable year. Any such net capital losses
of a Fund that are not used to offset capital gains may be carried forward indefinitely to reduce any future capital gains realized
by the Fund in succeeding taxable years. The amount of capital losses that can be carried forward and used in any single year is
subject to an annual limitation if there is a more than 50% “change in ownership” of a Fund. An ownership change generally
results when shareholders owning 5% or more of a Fund increase their aggregate holdings by more than 50% over a three-year look-back
period. An ownership change could result in capital loss carryovers being used at a slower rate, thereby reducing a Fund’s
ability to offset capital gains with those losses. An increase in the amount of

taxable gains distributed to a Fund’s
shareholders could result from an ownership change. The Funds undertake no obligation to avoid or prevent an ownership change,
which can occur in the normal course of shareholder purchases and redemptions or as a result of engaging in a tax-free reorganization
with another fund. Moreover, because of circumstances beyond a Fund’s control, there can be no assurance that a Fund will
not experience, or has not already experienced, an ownership change. Additionally, if a Fund engages in a tax-free reorganization
with another fund, the effect of these and other rules not discussed herein may be to disallow or postpone the use by a Fund of
its capital loss carryovers (including any current year losses and built-in losses when realized) to offset its own gains or those
of the other fund, or vice versa, thereby reducing the tax benefits Fund shareholders would otherwise have enjoyed from use of
such capital loss carryovers.

At May 31, 2019, the Predecessor Funds had
capital loss carry forwards for federal income tax purposes available to offset future capital gains as follows:

	Non-Expiring		Non-Expiring
	Short-Term		Long-Term		Total
Short Duration Bond	$	34,558,481	$	41,631,690	$	76,190,171
Total Return		20,051,566		12,060,664		32,112,230
Floating Rate		–		–		–

Deferral of Late Year Losses. A Fund
may elect to treat part or all of any "qualified late year loss" as if it had been incurred in the succeeding taxable
year in determining the Fund’s taxable income, net capital gain, net short-term capital gain, and earnings and profits. los
effect of this election is to treat any such “qualified late year loss” as if it had been incurred in the succeeding
taxable year in characterizing Fund distributions for any calendar year (see, “Taxation of Fund Distributions – Distributions
of capital gains” below). A “qualified late year loss” includes:

(i)

any net capital loss, net long-term capital loss, or net short-term capital loss incurred after
October 31 of the current taxable year (“post- October losses”), and

(ii)

the excess, if any, of (1) the sum of (a) specified losses incurred after October 31 of the current
taxable year, and (b) other ordinary losses incurred after December 31 of the current taxable year, over (2) the sum of (a) specified
gains incurred after October 31 of the current taxable year, and (b) other ordinary gains incurred after December 31 of the current
taxable year.

The terms “specified losses” and
“specified gains” mean ordinary losses and gains from the sale, exchange, or other disposition of property (including
the termination of a position with respect to such property), foreign currency losses and gains, and losses and gains resulting
from holding stock in a passive foreign investment company (“PFIC”) for which a mark-to-market election is in effect.
The terms “ordinary losses” and “ordinary gains” mean other ordinary losses and gains that are not described
in the preceding sentence.

Undistributed Capital Gains. A Fund
may retain or distribute to shareholders its net capital gain for each taxable year. The Funds currently intend to distribute net
capital gains. If a Fund elects to retain its net capital gain, the Fund will be taxed thereon (except to the extent of any available
capital loss carryovers) at the highest corporate tax rate (currently 21%). If a Fund elects to retain its net capital gain, it
is expected that the Fund also will elect to have shareholders treated as if each received a distribution of its pro rata share
of such gain, with the result that each shareholder will be required to report its pro rata share of such gain on its tax return
as long-term capital gain, will receive a refundable tax credit for its pro rata share of tax paid by the Fund on the gain, and
will increase the tax basis for its Shares by an amount equal to the deemed distribution less the tax credit.

Federal Excise Tax. To avoid a 4% non-deductible
excise tax, a Fund must distribute by December 31 of each year an amount equal to at least: (1) 98% of its ordinary income for
the calendar year, (2) 98.2% of capital gain net income (that is, the excess of the gains from sales or exchanges of capital assets
over the losses from such sales or exchanges) for the one-year period ended on October 31 of such calendar year, and (3) any prior
year undistributed ordinary income and capital gain net income. A Fund may elect to defer to the following year any net ordinary
loss incurred for the portion of the calendar year which is after the beginning of the Fund’s taxable year. Also, a Fund
will defer any “specified gain” or “specified loss” which

would be properly taken into account for the
portion of the calendar year after October 31. Any net ordinary loss, specified gain, or specified loss deferred shall be treated
as arising on January 1 of the following calendar year. Generally, each Fund intends to make sufficient distributions prior to
the end of each calendar year to avoid any material liability for federal income and excise tax, but can give no assurances that
all or a portion of such liability will be avoided. In addition, under certain circumstances, temporary timing or permanent differences
in the realization of income and expense for book and tax purposes can result in a Fund having to pay an excise tax.

Foreign Income Tax. Investment income
received by a Fund from sources within foreign countries may be subject to foreign income tax withheld at the source and the amount
of tax withheld generally will be treated as an expense of the Fund. The United States has entered into tax treaties with many
foreign countries which entitle a Fund to a reduced rate of, or exemption from, tax on such income. It is impossible to determine
the effective rate of foreign tax in advance since the amount of a Fund’s assets to be invested in various countries is not
known. Under certain circumstances, a Fund may elect to pass-through foreign tax credits to shareholders, although it reserves
the right not to do so.

Purchase of Shares. As a result of tax
requirements, the Trust on behalf of each Fund has the right to reject an order to purchase Shares if the purchaser (or group of
purchasers acting in concert with each other) would, upon obtaining the Shares so ordered, own 80% or more of the outstanding Shares
of the Fund and if, pursuant to section 351 of the Code, the Fund would have a basis in the Deposit Securities different from the
market value of such securities on the date of deposit. The Trust also has the right to require information necessary to determine
beneficial Share ownership for purposes of the 80% determination.

Taxation of Fund Distributions

Each Fund anticipates distributing all or substantially
all of its investment company taxable income and net capital gain for each taxable year. Distributions by a Fund will be treated
in the manner described below regardless of whether such distributions are paid in cash or reinvested in additional Shares of the
Fund (or of another fund). A Fund will send you information annually as to the federal income tax consequences of distributions
made (or deemed made) during the year.

Distributions of Net Investment Income.
Each Fund receives ordinary income generally in the form of dividends and/or interest on its investments. A Fund may also recognize
ordinary income from other sources, including, but not limited to, certain gains on foreign currency-related transactions. Esta
income, less expenses incurred in the operation of a Fund, constitutes a Fund’s net investment income from which dividends
may be paid to you. If you are a taxable investor, distributions of net investment income generally are taxable as ordinary income
to the extent of the Fund’s earnings and profits. In the case of a Fund whose strategy includes investing in stocks of corporations,
a portion of the income dividends paid to you may be qualified dividends eligible to be taxed at reduced rates. See the discussion
below under the headings, “– Qualified Dividend Income for Individuals” and “– Dividends-Received
Deduction for Corporations.”

Distributions of Capital Gain. Cada
Fund may derive capital gain and loss in connection with sales or other dispositions of its portfolio securities. Distributions
derived from the excess of net short-term capital gain over net long-term capital loss will be taxable to you as ordinary income.
Distributions paid from the excess of net long-term capital gain over net short-term capital loss will be taxable to you as long-term
capital gain, regardless of how long you have held your Shares in a Fund. Any net short-term or long-term capital gain realized
by a Fund (net of any capital loss carryovers) generally will be distributed once each year and may be distributed more frequently,
if necessary, in order to reduce or eliminate federal excise or income taxes on the Fund.

Returns of Capital. Distributions by
a Fund that are not paid from earnings and profits will be treated as a return of capital to the extent of (and in reduction of)
the shareholder’s tax basis in his Shares; any excess will be treated as gain from the sale of his Shares. Thus, the portion
of a distribution that constitutes a return of capital will decrease the shareholder’s tax basis in his Fund Shares (but
not below zero), and will result in an increase in the amount of gain (or decrease in the amount of loss) that will be recognized
by the shareholder for tax purposes on the later sale of such Fund Shares. Return of capital distributions can occur for a number
of reasons including, among others, a Fund over-estimates the income to be received from certain investments

such as those classified as partnerships or
equity real estate investment trusts (“REITs”) (see, “Tax Treatment of Portfolio Transactions – Investments
in U.S. REITs” below).

Qualified Dividend Income for Individuals.
Ordinary income dividends reported by the Fund to shareholders as derived from qualified dividend income will be taxed in the
hands of individuals and other noncorporate shareholders at the rates applicable to long-term capital gain. “Qualified dividend
income” means dividends paid to a Fund (a) by domestic corporations, (b) by foreign corporations that are either (i) incorporated
in a possession of the United States, or (ii) are eligible for benefits under certain income tax treaties with the United States
that include an exchange of information program, or (c) with respect to stock of a foreign corporation that is readily tradable
on an established securities market in the United States. Both a Fund and the investor must meet certain holding period requirements
to qualify Fund dividends for this treatment. Specifically, a Fund must hold the stock for at least 61 days during the 121-day
period beginning 60 days before the stock becomes ex-dividend. Similarly, investors must hold their Fund Shares for at least 61
days during the 121-day period beginning 60 days before a Fund distribution goes ex-dividend. Income derived from investments in
derivatives, fixed-income securities, U.S. REITs, PFICs, and income received “in lieu of” dividends in a securities
lending transaction generally is not eligible for treatment as qualified dividend income. If the qualifying dividend income received
by a Fund is equal to or greater than 95% of the Fund's gross income (exclusive of net capital gain) in any taxable year, all of
the ordinary income dividends paid by the Fund will be qualifying dividend income.

Dividends-Received Deduction for Corporations.
For corporate shareholders, a portion of the dividends paid by a Fund may qualify for the 70% corporate dividends-received deduction.
The portion of dividends paid by a Fund that so qualifies will be reported by the Fund to shareholders each year and cannot exceed
the gross amount of dividends received by the Fund from domestic (U.S.) corporations. The availability of the dividends-received
deduction is subject to certain holding period and debt financing restrictions that apply to both a Fund and the investor. Specifically,
the amount that a Fund may report as eligible for the dividends-received deduction will be reduced or eliminated if the Shares
on which the dividends earned by the Fund were debt-financed or held by the Fund for less than a minimum period of time, generally
46 days during a 91-day period beginning 45 days before the stock becomes ex-dividend. Similarly, if your Fund Shares are debt-financed
or held by you for less than a 46-day period then the dividends-received deduction for Fund dividends on your Shares may also be
reduced or eliminated. Even if reported as dividends eligible for the dividends-received deduction, all dividends (including any
deducted portion) must be included in your alternative minimum taxable income calculation. Income derived by a Fund from
investments in derivatives, fixed-income and foreign securities generally is not eligible for this treatment.

Impact of Realized but Undistributed Income
and Gains, and Net Unrealized Appreciation of Portfolio Securities. At the time of your purchase of Shares, a Fund’s
net asset value may reflect undistributed income, undistributed capital gains, or net unrealized appreciation of portfolio securities
held by the Fund. A subsequent distribution to you of such amounts, although constituting a return of your investment, would be
taxable, and would be taxed as ordinary income (some portion of which may be taxed as qualified dividend income), capital gains,
or some combination of both, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual
retirement account. A Fund may be able to reduce the amount of such distributions from capital gains by utilizing its capital loss
carryovers, if any.

Pass-Through of Foreign Tax Credits.
If more than 50% of a Fund’s total assets at the end of a fiscal year is invested in foreign securities, the Fund may elect
to pass through to you your pro rata share of foreign taxes paid by the Fund. If this election is made, a Fund may report more
taxable income to you than it actually distributes. You will then be entitled either to deduct your share of these taxes in computing
your taxable income, or to claim a foreign tax credit for these taxes against your U.S. federal income tax (subject to limitations
for certain shareholders). A Fund will provide you with the information necessary to claim this deduction or credit on your personal
income tax return if it makes this election. No deduction for foreign tax may be claimed by a non-corporate shareholder who does
not itemize deductions or who is subject to the alternative minimum tax. Shareholders may be unable to claim a credit for the full
amount of their proportionate shares of the foreign income tax paid by a Fund due to certain limitations that may apply. Each Fund
reserves the right not to pass through to its shareholders the amount of foreign income taxes paid by the Fund. Additionally, any
foreign tax withheld on payments made “in lieu of” dividends or interest will not

qualify for the pass-through of foreign tax
credits to shareholders. See, “Tax Treatment of Portfolio Transactions – Securities Lending” below.

U.S. Government Securities. Income earned
on certain U.S. government obligations is exempt from state and local personal income taxes if earned directly by you. States also
grant tax-free status to dividends paid to you from interest earned on direct obligations of the U.S. government, subject in some
states to minimum investment or reporting requirements that must be met by a Fund. Income on investments by a Fund in certain other
obligations, such as repurchase agreements collateralized by U.S. government obligations, commercial paper and federal agency-backed
obligations (e.g., GNMA or FNMA obligations), generally does not qualify for tax-free treatment. The rules on exclusion of this
income are different for corporations.

Dividends Declared in December and Paid
en Enero. Ordinarily, shareholders are required to take distributions by the Fund into account in the year in which the distributions
are made. However, dividends declared in October, November or December of any year and payable to shareholders of record on a specified
date in such a month will be deemed to have been received by the shareholders (and made by the Fund) on December 31 of such calendar
year if such dividends are actually paid in January of the following year. Shareholders will be advised annually as to the U.S.
federal income tax consequences of distributions made (or deemed made) during the year in accordance with the guidance that has
been provided by the IRS.

Medicare Tax. A 3.8% Medicare tax is
imposed on net investment income earned by certain individuals, estates and trusts. “Net investment income,” for these
purposes, means investment income, including ordinary dividends and capital gain distributions received from the Fund and net gains
from redemptions or other taxable dispositions of Fund Shares, reduced by the deductions properly allocable to such income. En
the case of an individual, the tax will be imposed on the lesser of (1) the shareholder’s net investment income or (2) the
amount by which the shareholder’s modified adjusted gross income exceeds $250,000 (if the shareholder is married and filing
jointly or a surviving spouse), $125,000 (if the shareholder is married and filing separately) or $200,000 (in any other case).
This Medicare tax, if applicable, is reported by you on, and paid with, your federal income tax return.

Sales and Redemption of Fund Shares

Sales and redemptions (including redemptions
in kind) of Fund Shares are taxable transactions for federal and state income tax purposes. If you redeem your Fund Shares, the
IRS requires you to report any gain or loss on your redemption. If you held your Shares as a capital asset, the gain or loss that
you realize will be a capital gain or loss and will be long-term or short-term, generally depending on how long you have held your
Shares. Any redemption fees you incur on Shares redeemed will decrease the amount of any capital gain (or increase any capital
loss) you realize on the sale. Capital losses in any year are deductible only to the extent of capital gains plus, in the case
of a non-corporate taxpayer, $3,000 of ordinary income.

Taxes on Purchase and Redemption of Creation
Units. An Authorized Participant who exchanges equity securities for Creation Units generally will recognize a gain or a loss.
The gain or loss will be equal to the difference between the market value of the Creation Units at the time of purchase and the
exchanger’s aggregate basis in the securities surrendered and the Cash Component paid. A person who exchanges Creation Units
for equity securities will generally recognize a gain or loss equal to the difference between the exchanger’s basis in the
Creation Units and the aggregate market value of the securities received and the Cash Redemption Amount. The IRS, however, may
assert that a loss realized upon an exchange of securities for Creation Units cannot be deducted currently under the rules governing
“wash sales,” or on the basis that there has been no significant change in economic position. Persons exchanging securities
should consult their own tax advisor with respect to whether wash sale rules apply and when a loss might be deductible.

Under current federal tax laws, any capital
gain or loss realized upon redemption of Creation Units is generally treated as long-term capital gain or loss if the Shares have
been held for more than one year and as a short-term capital gain or loss if the Shares have been held for one year or less.

If the Fund redeems Creation Units in cash,
it may recognize more capital gains than it will if it redeems Creation Units in-kind.

Tax Basis Information. A Fund will be
required to provide shareholders with cost basis information on the redemption of any of the shareholder’s Shares in the
Fund, subject to certain exceptions for exempt recipients. This cost basis reporting requirement is effective for Shares purchased
in a Fund on or after January 1, 2012. If you hold your Fund Shares through a broker (or other nominee), please contact that broker
(nominee) with respect to reporting of cost basis and available elections for your account.

Wash Sales. All or a portion of any
loss that you realize on a redemption of your Fund Shares will be disallowed to the extent that you buy other Shares in the Fund
(through reinvestment of dividends or otherwise) within 30 days before or after your Share redemption. Any loss disallowed under
these rules will be added to your tax basis in the new Shares.

Redemptions at a Loss Within Six Months
of Purchase. Any loss incurred on a redemption or exchange of Shares held for six months or less will be treated as long-term
capital loss to the extent of any long-term capital gain distributed to you by the Fund on those Shares.

Reportable Transactions. Under Treasury
regulations, if a shareholder recognizes a loss with respect to a Fund’s Shares of $2 million or more for an individual shareholder
or $10 million or more for a corporate shareholder (or certain greater amounts over a combination of years), the shareholder must
file with the IRS a disclosure statement on Form 8886. The fact that a loss is reportable under these regulations does not affect
the legal determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax
advisors to determine the applicability of these regulations in light of their individual circumstances.

Tax Treatment of Portfolio Transactions

Set forth below is a general description of
the tax treatment of certain types of securities, investment techniques and transactions that may apply to a fund and, in turn,
affect the amount, character and timing of dividends and distributions payable by the fund to its shareholders. This section should
be read in conjunction with the discussion above under “Investment Objective, Investment Strategies and Risks” for
a detailed description of the various types of securities and investment techniques that apply to a Fund.

In General. In general, gain or loss
recognized by a fund on the sale or other disposition of portfolio investments will be a capital gain or loss. Such capital gain
and loss may be long-term or short-term depending, in general, upon the length of time a particular investment position is maintained
and, in some cases, upon the nature of the transaction. Property held for more than one year generally will be eligible for long-term
capital gain or loss treatment. The application of certain rules described below may serve to alter the manner in which the holding
period for a security is determined or may otherwise affect the characterization as long-term or short-term, and also the timing
of the realization and/or character, of certain gains or losses.

Certain Fixed Income Investments. Gain
recognized on the disposition of a debt obligation purchased by a fund at a market discount (generally, at a price less than its
principal amount) will be treated as ordinary income to the extent of the portion of the market discount that accrued during the
period of time the fund held the debt obligation unless the fund made a current inclusion election to accrue market discount into
income as it accrues. If a fund purchases a debt obligation (such as a zero-coupon security or payment-in-kind security) that was
originally issued at a discount, the fund generally is required to include in gross income each year the portion of the original
issue discount that accrues during such year. Therefore, a fund’s investment in such securities may cause the fund to recognize
income and make distributions to shareholders before it receives any cash payments on the securities. To generate cash to satisfy
those distribution requirements, a fund may have to sell portfolio securities that it otherwise might have continued to hold or
to use cash flows from other sources such as the sale of fund shares.

Investments in Debt Obligations that are
at Risk of or in Default Present Tax Issues for a Fund. Tax rules are not entirely clear about issues such as whether and to
what extent a fund should recognize market discount on a debt obligation, when a fund may cease to accrue interest, original issue
discount or market discount, when and to what extent a fund may take deductions for bad debts or worthless securities and how a
fund should allocate payments received on obligations in default between principal and income. These and other

related issues will be addressed by a fund
in order to ensure that it distributes sufficient income to preserve its status as a regulated investment company.

Foreign Currency Transactions. A fund’s
transactions in foreign currencies, foreign currency-denominated debt obligations and certain foreign currency options, futures
contracts and forward contracts (and similar instruments) may give rise to ordinary income or loss to the extent such income or
loss results from fluctuations in the value of the foreign currency concerned. This treatment could increase or decrease a fund's
ordinary income distributions to you, and may cause some or all of a fund's previously distributed income to be classified as a
return of capital. In certain cases, a fund may make an election to treat such gain or loss as capital.

PFIC Investments. A fund may invest
in securities of foreign companies that may be classified under the Code as PFICs. In general, a foreign company is classified
as a PFIC if at least one-half of its assets constitute investment-type assets or 75% or more of its gross income is investment-type
income. When investing in PFIC securities, a fund intends to mark-to-market these securities under certain provisions of the Code
and recognize any unrealized gains as ordinary income at the end of the fund’s fiscal and excise tax years. Deductions for
losses are allowable only to the extent of any current or previously recognized gains. These gains (reduced by allowable losses)
are treated as ordinary income that a fund is required to distribute, even though it has not sold or received dividends from these
securities. You should also be aware that the designation of a foreign security as a PFIC security will cause its income dividends
to fall outside of the definition of qualified foreign corporation dividends. These dividends generally will not qualify for the
reduced rate of taxation on qualified dividends when distributed to you by a fund. Foreign companies are not required to identify
themselves as PFICs. Due to various complexities in identifying PFICs, a fund can give no assurances that it will be able to identify
portfolio securities in foreign corporations that are PFICs in time for the fund to make a mark-to-market election. If a fund is
unable to identify an investment as a PFIC and thus does not make a mark-to-market election, the fund may be subject to U.S. federal
income tax on a portion of any “excess distribution” or gain from the disposition of such shares even if such income
is distributed as a taxable dividend by the fund to its shareholders. Additional charges in the nature of interest may be imposed
on a fund in respect of deferred taxes arising from such distributions or gains.

Investments in Partnerships and QPTPs. por
purposes of the Income Requirement, income derived by a fund from a partnership that is not a QPTP will be treated as qualifying
income only to the extent such income is attributable to items of income of the partnership that would be qualifying income if
realized directly by the fund. While the rules are not entirely clear with respect to a fund investing in a partnership outside
a master-feeder structure, for purposes of testing whether a fund satisfies the Asset Diversification Test, the fund generally
is treated as owning a pro rata share of the underlying assets of a partnership. See, “Taxation of the Funds.” In contrast,
different rules apply to a partnership that is a QPTP. A QPTP is a partnership (a) the interests in which are traded on an established
securities market, (b) that is treated as a partnership for federal income tax purposes, and (c) that derives less than 90% of
its income from sources that satisfy the Income Requirement (e.g., because it invests in commodities). All of the net income derived
by a fund from an interest in a QPTP will be treated as qualifying income but the fund may not invest more than 25% of its total
assets in one or more QPTPs. However, there can be no assurance that a partnership classified as a QPTP in one year will qualify
as a QPTP in the next year. Any such failure to annually qualify as a QPTP might, in turn, cause a fund to fail to qualify as a
regulated investment company. Although, in general, the passive loss rules of the Code do not apply to RICs, such rules do apply
to a fund with respect to items attributable to an interest in a QPTP. Fund investments in partnerships, including in QPTPs, may
result in the fund being subject to state, local or foreign income, franchise or withholding tax liabilities.

Securities Lending. While securities
are loaned out by a fund, the fund generally will receive from the borrower amounts equal to any dividends or interest paid on
the borrowed securities. For federal income tax purposes, payments made “in lieu of” dividends are not considered dividend
income. These distributions will neither qualify for the reduced rate of taxation for individuals on qualified dividends nor the
70% dividends received deduction for corporations. Also, any foreign tax withheld on payments made “in lieu of” dividends
or interest will not qualify for the pass-through of foreign tax credits to shareholders.

Investments in Convertible Securities.
Convertible debt is ordinarily treated as a “single property” consisting of a pure debt interest until conversion,
after which the investment becomes an equity interest. If the security

is issued at a premium (i.e., for cash in excess
of the face amount payable on retirement), the creditor-holder may amortize the premium over the life of the bond. If the security
is issued for cash at a price below its face amount, the creditor-holder must accrue original issue discount in income over the
life of the debt. The creditor-holder's exercise of the conversion privilege is treated as a nontaxable event. Mandatorily convertible
debt (e.g., an exchange traded note or ETN issued in the form of an unsecured obligation that pays a return based on the performance
of a specified market index, exchange currency, or commodity) is often, but not always, treated as a contract to buy or sell the
reference property rather than debt. Similarly, convertible preferred stock with a mandatory conversion feature is ordinarily,
but not always, treated as equity rather than debt. Dividends received generally are qualified dividend income and eligible for
the corporate dividends received deduction. In general, conversion of preferred stock for common stock of the same corporation
is tax-free. Conversion of preferred stock for cash is a taxable redemption. Any redemption premium for preferred stock that is
redeemable by the issuing company might be required to be amortized under original issue discount principles.

Investments in ETFs. The Funds may invest
in ETFs that are taxable as RICs under the Code. Accordingly, the income the Funds receive from such ETFs should be qualifying
income for purposes of the Funds satisfying the “Income Requirement” (as defined above under the heading “Taxes”).
However, the Funds may also invest in one or more ETFs that are not taxable as RICs under the Code and that may generate non-qualifying
income for purposes of satisfying the Income Requirement. The Funds anticipate monitoring their investments in such ETFs so as
to keep the Funds’ non-qualifying income within acceptable limits of the Income Requirement, however, it is possible that
such non-qualifying income will be more than anticipated which could cause the Funds to inadvertently fail the Income Requirement
thereby causing the Funds to fail to qualify as a RIC. In such a case, the Funds would be subject to the rules described above.

Investments in Securities of Uncertain Tax
Character. A fund may invest in securities the U.S. federal income tax treatment of which may not be clear or may be subject
to recharacterization by the IRS. To the extent the tax treatment of such securities or the income from such securities differs
from the tax treatment expected by a fund, it could affect the timing or character of income recognized by the fund, requiring
the fund to purchase or sell securities, or otherwise change its portfolio, in order to comply with the tax rules applicable to
regulated investment companies under the Code.

Backup Withholding

By law, a Fund may be required to withhold
a portion of your taxable dividends and sales proceeds unless you:

provide your correct social security or taxpayer identification number,

certify that this number is correct,

certify that you are not subject to backup withholding, and

certify that you are a U.S. person (including a U.S. resident alien).

A Fund also must withhold if the IRS instructs
it to do so. When withholding is required, the amount will be 24% of any distributions or proceeds paid. Backup withholding is
not an additional tax. Any amounts withheld may be credited against the shareholder’s U.S. federal income tax liability,
provided the appropriate information is furnished to the IRS. Certain payees and payments are exempt from backup withholding and
information reporting. The special U.S. tax certification requirements applicable to non-U.S. investors to avoid backup withholding
are described under the “Non-U.S. Investors” heading below.

Non-U.S. Investors

Non-U.S. investors (shareholders who, as to
the United States, are nonresident alien individuals, foreign trusts or estates, foreign corporations, or foreign partnerships)
may be subject to U.S. withholding and estate tax and are subject to special U.S. tax certification requirements. Non-U.S. investors
should consult their tax advisors about the applicability of U.S. tax withholding and the use of the appropriate forms to certify
their status.

In General. The United States imposes
a flat 30% withholding tax (or a withholding tax at a lower treaty rate) on U.S. source dividends, including on income dividends,
paid to you by a Fund, subject to certain exemptions described below. However, notwithstanding such exemptions from U.S. withholding
at the source, any dividends and distributions of income and capital gains, including the proceeds from the sale of your Fund shares,
will be subject to backup withholding at a rate of 24% if you fail to properly certify that you are not a U.S. person.

Capital Gain Dividends. En general,
capital gain dividends reported by a Fund to shareholders as paid from its net long-term capital gains, other than long-term capital
gains realized on disposition of U.S. real property interests (see the discussion below), are not subject to U.S. withholding tax
unless you are a nonresident alien individual present in the United States for a period or periods aggregating 183 days or more
during the calendar year.

Short-Term Capital Gain Dividends and Interest-Related
Dividends. The prior exemptions from U.S. withholding for interest-related dividends paid by a Fund from its qualified net
interest income from U.S. sources and short-term capital gain dividends have expired. With respect to taxable years of a Fund that
began before January 1, 2014, short-term capital gain dividends reported by the Fund to shareholders as paid from its net short-term
capital gains, other than short-term capital gains realized on disposition of U.S. real property interests (see the discussion
below), were not subject to U.S. withholding tax unless you were a nonresident alien individual present in the United States for
a period or periods aggregating 183 days or more during the calendar year. Similarly, with respect to taxable years of a Fund that
began before January 1, 2014, dividends reported by the Fund to shareholders as interest-related dividends and paid from its qualified
net interest income from U.S. sources were not subject to U.S. withholding tax. “Qualified interest income” included,
in general, U.S. source (1) bank deposit interest, (2) short-term original discount, (3) interest (including original issue discount,
market discount, or acquisition discount) on an obligation that is in registered form, unless it is earned on an obligation issued
by a corporation or partnership in which the Fund is a 10-percent shareholder or is contingent interest, and (4) any interest-related
dividend from another regulated investment company. It is currently unclear whether Congress will extend these exemptions to taxable
years of a fund beginning on or after January 1, 2014 or what the terms of any such extension would be, including whether such
extension would have retroactive effect. If the exemptions are reinstated, a Fund reserves the right to not report small amounts
of short-term capital gain dividends or interest-related dividends. Additionally, a Fund’s reporting of short-term capital
gain dividends or interest-related dividends may not be passed through to shareholders by intermediaries who have assumed tax reporting
responsibilities for this income in managed or omnibus accounts due to systems limitations or operational constraints.

Net Investment Income from Dividends on
Stock and Foreign Source Interest Income Continue to be Subject to Withholding Tax; Foreign Tax Credits. Ordinary dividends
paid by a Fund to non-U.S. investors on the income earned on portfolio investments in (i) the stock of domestic and foreign corporations
and (ii) the debt of foreign issuers continue to be subject to U.S. withholding tax. Foreign shareholders may be subject to U.S.
withholding tax at a rate of 30% on the income resulting from an election to pass-through foreign tax credits to shareholders,
but may not be able to claim a credit or deduction with respect to the withholding tax for the foreign tax treated as having been
paid by them.

Income Effectively Connected with a U.S.
Trade or Business. If the income from a Fund is effectively connected with a U.S. trade or business carried on by a foreign
shareholder, then ordinary income dividends, capital gain dividends and any gains realized upon the sale or redemption of Shares
of the Fund will be subject to U.S. federal income tax at the rates applicable to U.S. citizens or domestic corporations and require
the filing of a nonresident U.S. income tax return.

Investment in U.S. Real Property. los
Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) makes non-U.S. persons subject to U.S. tax on disposition
of a U.S. real property interest (“USRPI”) as if he or she were a U.S. person. Such gain is sometimes referred to as
FIRPTA gain. A Fund may invest in equity securities of corporations that invest in USRPI, which may trigger FIRPTA gain to the
Fund’s non-U.S. shareholders.

The Code provides a look-through rule for distributions
of FIRPTA gain when a RIC is classified as a qualified investment entity. A RIC will be classified as a qualified investment entity
only with respect to any

distribution by the RIC which is attributable
directly or indirectly to a distribution to the RIC from a U.S. REIT (“FIRPTA distribution”) and if, in general, 50%
or more of the RIC’s assets consist of interests in U.S. REITs and other U.S. real property holding corporations (“USRPHC”).
If a RIC is a qualified investment entity and the non-U.S. shareholder owns more than 5% of a class of Fund shares at any time
during the one-year period ending on the date of the FIRPTA distribution, the FIRPTA distribution to the non-U.S. shareholder is
treated as gain from the disposition of a USRPI, causing the distribution to be subject to U.S. withholding tax at a rate of 35%
(unless reduced by future regulations), and requiring the non-US shareholder to file a nonresident U.S. income tax return. In addition,
even if the non-U.S. shareholder does not own more than 5% of a class of Fund shares, but the Fund is a qualified investment entity,
the FIRPTA distribution will be taxable as ordinary dividends (rather than as a capital gain or short-term capital gain dividend)
subject to withholding at 30% or lower treaty rate.

It is currently unclear whether Congress will
extend the look-through rules previously in effect before January 1, 2014 for distributions of FIRPTA gain to other types of distributions
on or after January 1, 2014 from a RIC to a non-US shareholder from the RIC’s direct or indirect investment in USRPI or what
the terms of any such extension would be, including whether such extension would have retroactive effect.

U.S. Estate Tax. Transfers by gift of
Shares of a Fund by a foreign shareholder who is a nonresident alien individual will not be subject to U.S. federal gift tax. Un
individual who, at the time of death, is a non-U.S. shareholder will nevertheless be subject to U.S. federal estate tax with respect
to Fund Shares at the graduated rates applicable to U.S. citizens and residents, unless a treaty exemption applies. If a treaty
exemption is available, a decedent’s estate may nonetheless need to file a U.S. estate tax return to claim the exemption
in order to obtain a U.S. federal transfer certificate. The transfer certificate will identify the property (i.e., Fund Shares)
as to which the U.S. federal estate tax lien has been released. In the absence of a treaty, there is a $13,000 statutory estate
tax credit (equivalent to U.S. located assets with a value of $60,000). For estates with U.S. located assets of not more than $60,000,
a Fund may accept, in lieu of a transfer certificate, an affidavit from an appropriate individual evidencing that decedent’s
U.S. located assets are below this threshold amount.

U.S. Tax Certification Rules. Especial
U.S. tax certification requirements may apply to non-U.S. shareholders both to avoid U.S. backup withholding imposed at a rate
of 24% and to obtain the benefits of any treaty between the United States and the shareholder’s country of residence. En
general, if you are a non-U.S. shareholder, you must provide a Form W-8 BEN (or other applicable Form W-8) to establish that you
are not a U.S. person, to claim that you are the beneficial owner of the income and, if applicable, to claim a reduced rate of,
or exemption from, withholding as a resident of a country with which the United States has an income tax treaty. A Form W-8 BEN
provided without a U.S. taxpayer identification number will remain in effect for a period beginning on the date signed and ending
on the last day of the third succeeding calendar year unless an earlier change of circumstances makes the information on the form
incorrect. Certain payees and payments are exempt from backup withholding.

The tax consequences to a non-U.S. shareholder
entitled to claim the benefits of an applicable tax treaty may be different from those described herein. Non-U.S. shareholders
are urged to consult their own tax advisors with respect to the particular tax consequences to them of an investment in a Fund,
including the applicability of foreign tax.

Foreign Account Tax Compliance Act (“FATCA”).
Under FATCA, a Fund will be required to withhold a 30% tax on (a) income dividends paid by the Fund after June 30, 2014, and
(b) certain capital gain distributions and the proceeds arising from the sale of Fund shares paid by the Fund after December 31,
2016, to certain foreign entities, referred to as foreign financial institutions (“FFI”) or non-financial foreign entities
(“NFFE”), that fail to comply (or be deemed compliant) with extensive new reporting and withholding requirements designed
to inform the U.S. Department of the Treasury of U.S.-owned foreign investment accounts. The FATCA withholding tax generally can
be avoided: (a) by an FFI, if it reports certain direct and indirect ownership of foreign financial accounts held by U.S. persons
with the FFI and (b) by an NFFE, if it: (i) certifies that it has no substantial U.S. persons as owners or (ii) if it does have
such owners, reporting information relating to them. The U.S. Treasury has negotiated intergovernmental agreements (“IGA”)
with certain countries and is in various stages of negotiations with a number of other foreign countries with respect

to one or more alternative approaches to implement
FATCA; an entity in one of those countries may be required to comply with the terms of an IGA instead of U.S. Treasury regulations.

An FFI can avoid FATCA withholding if it is
deemed compliant or by becoming a “participating FFI,” which requires the FFI to enter into a U.S. tax compliance agreement
with the IRS under section 1471(b) of the Code (“FFI agreement”) under which it agrees to verify, report and disclose
certain of its U.S. accountholders and meet certain other specified requirements. The FFI will either report the specified information
about the U.S. accounts to the IRS, or, to the government of the FFI’s country of residence (pursuant to the terms and conditions
of applicable law and an applicable IGA entered into between the US and the FFI’s country of residence), which will, in turn,
report the specified information to the IRS. An FFI that is resident in a country that has entered into an IGA with the U.S. to
implement FATCA will be exempt from FATCA withholding provided that the FFI shareholder and the applicable foreign government comply
with the terms of such agreement.

An NFFE that is the beneficial owner of a payment
from a Fund can avoid the FATCA withholding tax generally by certifying that it does not have any substantial U.S. owners or by
providing the name, address and taxpayer identification number of each substantial U.S. owner. The NFFE will report the information
to a Fund or other applicable withholding agent, which will, in turn, report the information to the IRS.

Such foreign shareholders also may fall into
certain exempt, excepted or deemed compliant categories as established by U.S. Treasury regulations, IGAs, and other guidance regarding
FATCA. An FFI or NFFE that invests in a Fund will need to provide the Fund with documentation properly certifying the entity’s
status under FATCA in order to avoid FATCA withholding. Non-U.S. investors should consult their own tax advisors regarding the
impact of these requirements on their investment in the Fund. The requirements imposed by FATCA are different from, and in addition
to, the U.S. tax certification rules to avoid backup withholding described above. Shareholders are urged to consult their tax advisors
regarding the application of these requirements to their own situation.

Effect of Future Legislation; Local Tax
Considerations

The foregoing general discussion of U.S. federal
income tax consequences is based on the Code and the regulations issued thereunder as in effect on the date of this SAI. Future
legislative or administrative changes, including provisions of current law that sunset and thereafter no longer apply, or court
decisions may significantly change the conclusions expressed herein, and any such changes or decisions may have a retroactive effect
with respect to the transactions contemplated herein. Rules of state and local taxation of ordinary income, qualified dividend
income and capital gain dividends may differ from the rules for U.S. federal income taxation described above. Distributions may
also be subject to additional state, local and foreign taxes depending on each shareholder’s particular situation. Non-U.S.
shareholders may be subject to U.S. tax rules that differ significantly from those summarized above. Shareholders are urged to
consult their tax advisors as to the consequences of these and other state and local tax rules affecting investment in a Fund.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

BBD, LLP, located at 1835 Market Street, 3^rd
Floor, Philadelphia, PA 19103 serves as the Funds’ independent registered public accounting firm providing services including
(1) audit of annual financial statements, and (2) assistance and consultation in connection with SEC filings.

LEGAL COUNSEL

Practus, LLP, 11300 Tomahawk Creek Parkway,
Suite 310 Leawood, KS 66211 serves as the Trust’s legal counsel.

FINANCIAL STATEMENTS

The Trust’s independent registered public
accounting firm, BBD, LLP audits and reports on the Funds’ annual financial statements. Each Fund has adopted the
financial statements of its Predecessor Fund.

The Predecessor Funds’ audited financial
statements for the fiscal year ended May 31, 2019, together with the notes thereto, and the report of the Predecessor Funds’
independent registered public accounting firm are incorporated into this SAI by reference to the Predecessor Funds’ Annual
Report to Shareholders on file with the SEC (Accession No. 0001580642-19-003603). In addition, the Predecessor Funds unaudited
semi-annual financial statements for the period ended November 30, 2018 on file with the SEC (Accession No. 0001580642-19-000640)
are incorporated by reference into this SAI. You can obtain a copy of the Annual Report and/or Semi-Annual Report without charge
by calling the Funds at 1–800-711-9164.

APPENDIX A — PROXY VOTING
POLICIES

LEADER CAPITAL CORPORATION

PROXY VOTING POLICIES AND PROCEDURES

Pursuant to the adoption
by the Securities and Exchange Commission (the “Commission”) of Rule 206(4)-6 (17 CFR 275.206(4)-6) and amendments
to Rule 204-2 (17 CFR 275.204-2) under the Investment Advisors Act of 1940 (the “Act”), it is a fraudulent, deceptive,
or manipulative act, practice or course of business, within the meaning of Section 206(4) of the Act, for an investment Advisor
to exercise voting authority with respect to client securities, unless (i) the Advisor has adopted and implemented written policies
and procedures that are reasonably designed to ensure that the Advisor votes proxies in the best interest of its clients, (ii)
the Advisor describes its proxy voting procedures to its clients and provides copies on request, and (iii) the Advisor discloses
to clients how they may obtain information on how the Advisor voted their proxies.

In order to fulfill its
responsibilities under the Act, Leader Capital Corporation (hereinafter “we” or “our”) has adopted the
following policies and procedures for proxy voting with regard to companies in investment portfolios of our clients.

KEY OBJECTIVES

The key objectives of these
policies and procedures recognize that a company’s management is entrusted with the day-to-day operations and longer term
strategic planning of the company, subject to the oversight of the company’s board of directors. While “ordinary
business matters” are primarily the responsibility of management and should be approved solely by the corporation’s
board of directors, these objectives also recognize that the company’s shareholders must have final say over how management
and directors are performing, and how shareholders’ rights and ownership interests are handled, especially when matters could
have substantial economic implications to the shareholders.

Therefore, we will pay
particular attention to the following matters in exercising our proxy voting responsibilities as a fiduciary for our clients:

Accountability. Cada
company should have effective means in place to hold those entrusted with running a company’s business accountable for their
actions. Management of a company should be accountable to its board of directors and the board should be accountable
to shareholders.

Alignment of Management
and Shareholder Interests. Each company should endeavor to align the interests of management and the board of directors
with the interests of the company’s shareholders. For example, we generally believe that compensation should be
designed to reward management for doing a good job of creating value for the shareholders of the company.

Transparency. Promotion
of timely disclosure of important information about a company’s business operations and financial performance enables investors
to evaluate the performance of a company and to make informed decisions about the purchase and sale of a company’s securities.

DECISION METHODS

We generally believe that
the individual portfolio managers that invest in and track particular companies are the most knowledgeable and best suited to make
decisions with regard to proxy votes. Therefore, we rely on those individuals to make the final decisions on how to
cast proxy votes.

No set of proxy voting
guidelines can anticipate all situations that may arise. In special cases, we may seek insight from our managers and
analysts on how a particular proxy proposal will impact the financial prospects of a company, and vote accordingly.

In some instances, a proxy
vote may present a conflict between the interests of a client, on the one hand, and our interests or the interests of a person
affiliated with us, on the other. In such a case, we will abstain from making a voting decision and will forward all
of the necessary proxy voting materials to the client to enable the client to cast the votes.

SUMMARY OF PROXY VOTING GUIDELINES

Election of the Board of Directors

We believe that good corporate
governance generally starts with a board composed primarily of independent directors, unfettered by significant ties to management,
all of whose members are elected annually. In addition, key board committees should be entirely independent.

The election of a company’s
board of directors is one of the most fundamental rights held by shareholders. Because a classified board structure
prevents shareholders from electing a full slate of directors annually, we will generally support efforts to declassify boards
or other measures that permit shareholders to remove a majority of directors at any time, and will generally oppose efforts to
adopt classified board structures.

Approval of Independent Registered Public
Accounting Firm

We believe that the relationship
between a company and its independent registered public accounting firm should be limited primarily to the audit engagement, although
it may include certain closely related activities that do not raise an appearance of impaired independence.

We will evaluate on a case-by-case
basis instances in which the audit firm has a substantial non-audit relationship with a company to determine whether we believe
independence has been, or could be, compromised.

Equity-based compensation plans

We believe that appropriately
designed equity-based compensation plans, approved by shareholders, can be an effective way to align the interests of shareholders
and the interests of directors, management, and employees by providing incentives to increase shareholders value. Conversely,
we are opposed to plans that substantially dilute ownership interests in the company, provide participants with excessive awards,
or have inherently objectionable structure features.

We will generally support
measures intended to increase stock ownership by executives and the use of employee stock purchase plans to increase company stock
ownership by employees. These may include:

	1)	Requiring senior executives to hold stock in a company.
	2)	Requiring stock acquired through option exercise to be held for a certain period of time.

	3)	Using restricted stock grants instead of options.
	4)	Awards based on non-discretionary grants specified by the plan’s terms rather than subject to management’s discretion.

While we evaluate plans
on a case-by-case basis, we will generally oppose plans that have the following features:

	1)	Annual option grants that would exceed 2% of outstanding shares.
	2)	Ability to issue options with an exercise price below the stock’s current market price.

Automatic share replenishment (“evergreen”) feature.

	4)	Authorization to permit the board of directors to materially amend a plan without shareholder approval.
	5)	Authorizes the re-pricing of stock options or the cancellation and exchange of options without shareholder approval.

These are guidelines, and
we consider other factors, such as the nature of the industry and size of the company, when assessing a plan’s impact on
ownership interests.

Corporate Structure

We view the exercise of
shareholders’ rights, including the rights to act by written consent, to call special meetings and to remove directors, to
be fundamental to good corporate governance.

Because classes of common
stock with unequal voting rights limit the rights of certain shareholders, we generally believe that shareholders should have voting
power equal to their equity interest in the company and should be able to approve or reject changes to a company’s by-laws
by a simple majority vote.

Because the requirement
of a super-majority vote can limit the ability of shareholders to effect change, we will support proposals to remove super-majority
(typically from 66.7% to 80%) voting requirements for certain types of proposals and oppose proposals to impose super-majority
requirements.

We will generally support
the ability of shareholders to cumulate their votes for the election of directors.

Shareholder Rights Plans

While we recognize that
there are arguments both in favor of and against shareholder rights plans, also known as poison pills, such measures may tend to
entrench current management, which we generally consider to have a negative impact on shareholder value.

We believe the best approach
is for a company to seek shareholder approval of rights plans and we generally support shareholder resolutions requesting that
shareholders be given the opportunity to vote on the adoption of rights plans.

We will generally be more
inclined to support a shareholder rights plan if the plan (i) has short-term “sunset” provisions, (ii) is linked to
a business strategy that will likely result in greater value for shareholders, (iii) requires shareholder approval to reinstate
the expired plan or adopt a new plan at the end of its term, and (iv) is subject to mandatory review by a committee of independent
directors.

CLIENT INFORMATION

A copy of these Proxy Voting
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APPENDIX B- DESCRIPTION OF BOND RATINGS

SHORT-TERM RATINGS

Standard & Poor’s Short-Term Issue
Credit Ratings

A Standard & Poor's issue credit rating
is a current opinion of the creditworthiness of an obligor with respect to a specific financial obligation, a specific class of
financial obligations or a specific financial program (including ratings on medium-term note programs and commercial paper programs).
It takes into consideration the creditworthiness of guarantors, insurers or other forms of credit enhancement on the obligation
and takes into account the currency in which the obligation is denominated. The issue credit rating is not a recommendation to
purchase, sell or hold a financial obligation, inasmuch as it does not comment as to market price or suitability for a particular
investor.

Issue credit ratings are based on current information
furnished by the obligors or obtained by Standard & Poor's from other sources it considers reliable. Standard & Poor's
does not perform an audit in connection with any credit rating and may, on occasion, rely on unaudited financial information. Crédito
ratings may be changed, suspended or withdrawn as a result of changes in, or unavailability of, such information, or based on other
circumstances.

Issue credit ratings can be either long term
or short term. Short-term ratings are generally assigned to those obligations considered short-term in the relevant market. En
the U.S., for example, that means obligations with an original maturity of no more than 365 days including commercial paper. Short-term
ratings are also used to indicate the creditworthiness of an obligor with respect to put features on long-term obligations. los
result is a dual rating, in which the short-term rating addresses the put feature, in addition to the usual long-term rating. Medium-term
notes are assigned long-term ratings.

Short-Term Issue Credit Ratings

A-1

A short-term obligation rated 'A-1' is rated
in the highest category by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is
strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity
to meet its financial commitment on these obligations is extremely strong.

A-2

A short-term obligation rated 'A-2' is somewhat
more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories.
However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory.

A-3

A short-term obligation rated 'A-3' exhibits
adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened
capacity of the obligor to meet its financial commitment on the obligation.

A short-term obligation rated 'B' is regarded
as having significant speculative characteristics. Ratings of 'B-1', 'B-2', and 'B-3' may be assigned to indicate finer distinctions
within the 'B' category. The obligor currently has the capacity to meet its financial commitment on the obligation; however, it
faces major ongoing

uncertainties which could lead to the obligor's
inadequate capacity to meet its financial commitment on the obligation.

B-1

A short-term obligation rated 'B-1' is regarded
as having significant speculative characteristics, but the obligor has a relatively stronger capacity to meet its financial commitments
over the short-term compared to other speculative-grade obligors.

B-2

A short-term obligation rated 'B-2' is regarded
as having significant speculative characteristics, and the obligor has an average speculative-grade capacity to meet its financial
commitments over the short-term compared to other speculative-grade obligors.

B-3

A short-term obligation rated 'B-3' is regarded
as having significant speculative characteristics, and the obligor has a relatively weaker capacity to meet its financial commitments
over the short-term compared to other speculative-grade obligors.

A short-term obligation rated 'C' is currently
vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its
financial commitment on the obligation.

A short-term obligation rated 'D' is in payment
default. The 'D' rating category is used when payments on an obligation are not made on the date due even if the applicable grace
period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The 'D'
rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation
are jeopardized.

Active Qualifiers (Currently applied and/or
outstanding)

This subscript is used for issues in which
the credit factors, terms, or both, that determine the likelihood of receipt of payment of interest are different from the credit
factors, terms or both that determine the likelihood of receipt of principal on the obligation. The 'i' subscript indicates that
the rating addresses the interest portion of the obligation only. The 'i' subscript will always be used in conjunction with the
'p' subscript, which addresses likelihood of receipt of principal. For example, a rated obligation could be assigned ratings of
"AAAp N.R.i" indicating that the principal portion is rated "AAA" and the interest portion of the obligation
is not rated.

Ratings qualified with 'L' apply only to amounts
invested up to federal deposit insurance limits.

This subscript is used for issues in which
the credit factors, the terms, or both, that determine the likelihood of receipt of payment of principal are different from the
credit factors, terms or both that determine the likelihood of receipt of interest on the obligation. The 'p' subscript indicates
that the rating addresses the principal portion of the obligation only. The 'p' subscript will always be used in conjunction with
the 'i' subscript, which addresses likelihood of receipt of interest. For example, a rated obligation could be assigned ratings
of "AAAp N.R.i" indicating that the principal portion is rated "AAA" and the interest portion of the obligation
is not rated.

Ratings with a 'pi' subscript are based on
an analysis of an issuer's published financial information, as well as additional information in the public domain. They do not,
however, reflect in-depth meetings with an issuer's management and are therefore based on less comprehensive information than ratings
without a 'pi' subscript. Ratings with a 'pi' subscript are reviewed annually based on a new year's financial statements, but may
be reviewed on an interim basis if a major event occurs that may affect the issuer's credit quality.

The letters 'pr' indicate that the rating is
provisional. A provisional rating assumes the successful completion of the project financed by the debt being rated and indicates
that payment of debt service requirements is largely or entirely dependent upon the successful, timely completion of the project.
This rating, however, while addressing credit quality subsequent to completion of the project, makes no comment on the likelihood
of or the risk of default upon failure of such completion. The investor should exercise his own judgment with respect to such likelihood
and risk.

preliminary

Preliminary ratings are assigned to issues,
including financial programs, in the following circumstances.

Preliminary ratings may be assigned to obligations, most commonly structured and project finance issues, pending receipt of final documentation and legal opinions. Assignment of a final rating is conditional on the receipt and approval by Standard & Poor's of appropriate documentation. Changes in the information provided to Standard & Poor's could result in the assignment of a different rating. In addition, Standard & Poor's reserves the right not to issue a final rating.

Preliminary ratings are assigned to Rule 415 Shelf Registrations. As specific issues, with defined terms, are offered from the master registration, a final rating may be assigned to them in accordance with Standard & Poor's policies. The final rating may differ from the preliminary rating.

This symbol indicates termination structures
that are designed to honor their contracts to full maturity or, should certain events occur, to terminate and cash settle all their
contracts before their final maturity date.

Inactive Qualifiers (No longer applied or outstanding)

* *

This symbol indicated continuance of the ratings
is contingent upon Standard & Poor's receipt of an executed copy of the escrow agreement or closing documentation confirming
investments and cash flows. Discontinued use in August 1998.

This qualifier was used to provide additional
information to investors that the bank may terminate its obligation to purchase tendered bonds if the long-term credit rating of
the issuer is below an investment-grade level and/or the issuer's bonds are deemed taxable. Discontinued use in January 2001.

A 'q' subscript indicates that the rating is
based solely on quantitative analysis of publicly available information. Discontinued use in April 2001.

The 'r' modifier was assigned to securities
containing extraordinary risks, particularly market risks, that are not covered in the credit rating. The absence of an 'r' modifier
should not be taken as an indication that an obligation will not exhibit extraordinary non-credit related risks. Standard &
Poor's discontinued the use of the 'r' modifier for most obligations in June 2000 and for the balance of obligations (mainly structured
finance transactions) in November 2002.

Local Currency and Foreign Currency Risks

Country risk considerations are a standard
part of Standard & Poor's analysis for credit ratings on any issuer or issue. Currency of repayment is a key factor in this
analysis. An obligor's capacity to repay foreign currency obligations may be lower than its capacity to repay obligations in its
local currency due to the sovereign government's own relatively lower capacity to repay external versus domestic debt. These sovereign
risk considerations are incorporated in the debt ratings assigned to specific issues. Foreign currency issuer ratings are also
distinguished from local currency issuer ratings to identify those instances where sovereign risks make them different for the
same issuer.

Moody’s Short-Term Debt Ratings

Short-Term Ratings

Moody's short-term ratings are opinions of
the ability of issuers to honor short-term financial obligations. Ratings may be assigned to issuers, short-term programs or to
individual short-term debt instruments. Such obligations generally have an original maturity not exceeding thirteen months, unless
explicitly noted.

Moody's employs the following designations
to indicate the relative repayment ability of rated issuers:

P-1

Issuers (or supporting institutions) rated
Prime-1 have a superior ability to repay short-term debt obligations.

P-2

Issuers (or supporting institutions) rated
Prime-2 have a strong ability to repay short-term debt obligations.

P-3

Issuers (or supporting institutions) rated
Prime-3 have an acceptable ability to repay short-term obligations.

Issuers (or supporting institutions) rated
Not Prime do not fall within any of the Prime rating categories.

Nota: Canadian issuers rated P-1 or
P-2 have their short-term ratings enhanced by the senior-most long-term rating of the issuer, its guarantor or support-provider.

Fitch’s
International Short-Term Credit Ratings

El seguimiento
ratings scale applies to foreign currency and local currency ratings. A Short-term rating has a time horizon of less than 13 months
for most obligations, or up to three years for US public finance, in line with industry standards, to reflect unique risk characteristics
of bond, tax, and revenue anticipation notes that are commonly issued with terms up to three years. Short-term ratings thus place
greater emphasis on the liquidity necessary to meet financial commitments in a timely manner.

Highest credit quality. Indicates the Strongest capacity for timely payment of financial commitments; may have an added “+” to denote any exceptionally strong credit feature.

Good credit quality. A satisfactory capacity for timely payment of financial commitments, but the margin of safety is not as great as in the case of the higher ratings.

Fair credit quality. The capacity for timely payment of financial commitments is adequate; however, near-term adverse changes could result in a reduction to non-investment grade.

Speculative. Minimal capacity for timely payment of financial commitments, plus vulnerability to near-term adverse changes in financial and economic conditions.

High default risk. Default is a real possibility. Capacity for meeting financial commitments is solely reliant upon a sustained, favorable business and economic environment.

Indicated an entity that has defaulted on one or more of its financial commitments, although it continues to meet other obligations.

Indicates an entity or sovereign that has defaulted on all of its financial obligations.

Notes to International Long-Term and Short-Term
ratings:

The modifiers "+" or "-"
may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the 'AAA'
Long-term rating category, to categories below 'CCC', or to Short-term ratings other than 'F1'. (The +/- modifiers are only used
to denote issues within the CCC category, whereas issuers are only rated CCC without the use of modifiers.)

Rating Watch: Ratings are placed on Rating
Watch to notify investors that there is a reasonable probability of a rating change and the likely direction of such change. Estas
are designated as "Positive", indicating a potential upgrade, "Negative", for a potential downgrade, or "Evolving",
if ratings may be raised, lowered or maintained. Rating Watch is typically resolved over a relatively short period.

before an outlook moves to positive or negative
if circumstances warrant such an action. Occasionally, Fitch Ratings may be unable to identify the fundamental trend. In these
cases, the Rating Outlook may be described as evolving.

Program ratings (such as the those assigned
to MTN shelf registrations) relate only to standard issues made under the program concerned; it should not be assumed that these
ratings apply to every issue made under the program. In particular, in the case of non-standard issues, i.e. those that are linked
to the credit of a third party or linked to the performance of an index, ratings of these issues may deviate from the applicable
program rating.

Variable rate demand obligations and other
securities which contain a short-term 'put' or other similar demand feature will have a dual rating, such as AAA/F1+. The first
rating reflects the ability to meet long-term principal and interest payments, whereas the second rating reflects the ability to
honor the demand feature in full and on time.

Interest Only

Interest Only ratings are assigned to interest
strips. These ratings do not address the possibility that a security holder might fail to recover some or all of its initial investment
due to voluntary or involuntary principal repayments.

Principal Only

Principal Only ratings address the likelihood
that a security holder will receive their initial principal investment either before or by the scheduled maturity date.

Rate of Return

Ratings also may be assigned to gauge the likelihood
of an investor receiving a certain predetermined internal rate of return without regard to the precise timing of any cash flows.

'PIF'

Paid-in -Full; denotes a security that is paid-in-full,
matured, called or refinanced.

'NR' indicates that Fitch Ratings does not
rate the issuer or issue in question.

'Withdrawn': A rating is withdrawn when Fitch
Ratings deems the amount of information available to be inadequate for rating purposes, or when an obligation matures, is called,
or refinanced or for any other reason Fitch Ratings deems sufficient.

Fitch Ratings (“Fitch”) National
Short-Term Credit Ratings

National Ratings are an assessment of credit
quality relative to the rating of the "best" credit risk in a country. This "best" risk will normally, although
not always, be assigned to all financial commitments issued or guaranteed by the sovereign state.

A special identifier for the country concerned
will be added at the end of all national ratings. For illustrative purposes, (xxx) has been used, in the table below.

F1(xxx)

Indicates the strongest capacity for timely payment of financial commitments relative to other issuers or issues in the same country. Under their national rating scale, this rating is assigned to the “best” credit risk relative to all others in the same country and is normally assigned to all financial commitments issued or guaranteed by the sovereign state. Where the credit risk is particularly strong, a “+” is added to the assigned rating.

F2(xxx)

Indicates a satisfactory capacity for timely payment of financial commitments relative to other issuers or issues in the same country. However, the margin of safety is not as great as in the case of the higher ratings.

F3(xxx)

Indicates an adequate capacity for timely payment of financial commitments relative to other issuers or issues in the same country. However, such capacity is more susceptible to near-term adverse changes than for financial commitments in higher rated categories.

B (xxx)

Indicates an uncertain capacity for timely payment of financial commitments relative to other issuers or issues in the same country. Such capacity is highly susceptible to near-term adverse changes in financial and economic conditions.

C (xxx)

Indicates a highly uncertain capacity for timely payment of financial commitments relative to other issuers or issues in the same country. Capacity or meeting financial commitments is solely reliant upon a sustained, favorable business and economic environment.

D (xxx)

Indicates actual or imminent payment default.

Note to National Short-Term ratings:

In certain countries, regulators have established
credit rating scales, to be used within their domestic markets, using specific nomenclature. In these countries, our National Short-Term
Ratings definitions for F1+(xxx), F1(xxx), F2(xxx) and F3(xxx) may be substituted by those regulatory scales, e.g. A1+, A1, A2
and A3.

LONG-TERM RATINGS

Standard & Poor’s Long-Term Issue
Credit Ratings

Long-Term Issue Credit Ratings

Issue credit ratings are based, in varying
degrees, on the following considerations:

·	Likelihood of payment, capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation;

·	Nature of and provisions of the obligation;

·	Protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors' rights.

The issue rating definitions are expressed
in terms of default risk. As such, they pertain to senior obligations of an entity. Junior obligations are typically rated lower
than senior obligations, to reflect the lower priority in bankruptcy, as noted above. (Such differentiation applies when an entity
has both senior and subordinated obligations, secured and unsecured obligations, or operating company and holding company obligations.)
Accordingly, in the case of junior debt, the rating may not conform exactly with the category definition.

AAA

An obligation rated 'AAA' has the highest rating
assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.

An obligation rated 'AA' differs from the highest-rated
obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong.

UNA

An obligation rated 'A' is somewhat more susceptible
to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. Sin embargo,
the obligor's capacity to meet its financial commitment on the obligation is still strong.

BBB

An obligation rated 'BBB' exhibits adequate
protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity
of the obligor to meet its financial commitment on the obligation.

BB, B, CCC, CC, and C

Obligations rated 'BB', 'B', 'CCC', 'CC', and
'C' are regarded as having significant speculative characteristics. 'BB' indicates the least degree of speculation and 'C' the
highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large
uncertainties or major exposures to adverse conditions.

An obligation rated 'BB' is less vulnerable
to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial,
or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

An obligation rated 'B' is more vulnerable
to nonpayment than obligations rated 'BB', but the obligor currently has the capacity to meet its financial commitment on the obligation.
Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial
commitment on the obligation.

CCC

An obligation rated 'CCC' is currently vulnerable
to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial
commitment on the obligation. In the event of adverse business, financial or economic conditions, the obligor is not likely to
have the capacity to meet its financial commitment on the obligation.

An obligation rated 'CC' is currently highly
vulnerable to nonpayment.

A subordinated debt or preferred stock obligation
rated 'C' is currently highly vulnerable to nonpayment. The 'C' rating may be used to cover a situation where a bankruptcy petition
has been filed or similar action taken, but payments on this obligation are being continued. A 'C' also will be assigned to a preferred
stock issue in arrears on dividends or sinking fund payments, but that is currently paying.

An obligation rated 'D' is in payment default.
The 'D' rating category is used when payments on an obligation are not made on the date due even if the applicable grace period
has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The 'D' rating
also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.

Plus (+) or minus (-)

The ratings from 'AA' to 'CCC' may be modified
by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

N.R.

This indicates that no rating has been requested,
that there is insufficient information on which to base a rating, or that Standard & Poor's does not rate a particular obligation
as a matter of policy.

Active Qualifiers (Currently applied and/or
outstanding)

Ratings qualified with 'L' apply only to amounts
invested up to federal deposit insurance limits.

preliminary

Preliminary ratings are assigned to issues,
including financial programs, in the following circumstances.

·	Preliminary ratings are assigned to Rule 415 Shelf Registrations. As specific issues, with defined terms, are offered from the master registration, a final rating may be assigned to them in accordance with Standard & Poor's policies. The final rating may differ from the preliminary rating.

Inactive Qualifiers (No longer applied or outstanding)

* *

A 'q' subscript indicates that the rating is
based solely on quantitative analysis of publicly available information. Discontinued use in April 2001.

obligation will not exhibit extraordinary non-credit
related risks. Standard & Poor's discontinued the use of the 'r' modifier for most obligations in June 2000 and for the balance
of obligations (mainly structured finance transactions) in November 2002.

Local Currency and Foreign Currency Risks

Moody’s Long-Term Debt Ratings

Long-Term Obligation Ratings

Moody's long-term obligation ratings are opinions
of the relative credit risk of fixed-income obligations with an original maturity of one year or more. They address the possibility
that a financial obligation will not be honored as promised. Such ratings reflect both the likelihood of default and any financial
loss suffered in the event of default.

Moody's Long-Term Rating Definitions:

Aaa

Obligations rated Aaa are judged to be of the
highest quality, with minimal credit risk.

Obligations rated Aa are judged to be of high
quality and are subject to very low credit risk.

UNA

Obligations rated A are considered upper-medium
grade and are subject to low credit risk.

Baa

Obligations rated Baa are subject to moderate
credit risk. They are considered medium-grade and as such may possess certain speculative characteristics.

Obligations rated Ba are judged to have speculative
elements and are subject to substantial credit risk.

Obligations rated B are considered speculative
and are subject to high credit risk.

Caa

Obligations rated Caa are judged to be of poor
standing and are subject to very high credit risk.

Obligations rated Ca are highly speculative
and are likely in, or very near, default, with some prospect of recovery of principal and interest.

Obligations rated C are the lowest rated class
of bonds and are typically in default, with little prospect for recovery of principal or interest.

Nota: Moody's appends numerical modifiers
1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the
higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking
in the lower end of that generic rating category.

Fitch’s International
Long-Term Credit Ratings

Internacional
Long-Term Credit Ratings (LTCR) may also be referred to as Long-Term Ratings. When assigned to most issuers, it is used as a benchmark
measure of probability of default and is formally described as an Issuer Default Rating (IDR). The major exception is within Public
Finance, where IDRs will not be assigned as market convention has always focused on timeliness and does not draw analytical distinctions
between issuers and their underlying obligations. When applied to issues or securities, the LTCR may be higher or lower than the
issuer rating (IDR) to reflect relative differences in recovery expectations.

The following rating scale applies to foreign
currency and local currency ratings:

Investment Grade

AAA

Highest credit quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned only in case of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

Very high credit quality. ‘AA’ ratings denote expectations of low credit risk. They indicate very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

UNA

High credit quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings.

BBB

Good credit quality. ‘BBB’ ratings indicate that there is currently expectations of low credit risk. The capacity for payment of financial commitments is considered adequate, but adverse changes in circumstances and economic conditions are more likely to impair this capacity. This is the lowest investment-grade category.

Speculative Grade

Speculative. ‘BB’ ratings indicate that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time; however, business or financial alternatives may be available to allow financial commitments to be met. Securities rated in this category are not investment grade.

For issuers and performing obligations, 'B' ratings indicate that significant credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is contingent upon a sustained, favorable business and economic environment.

·	For individual obligations, may indicate distressed or defaulted obligations with potential for extremely high recoveries. Such obligations would possess a Recovery Rating of 'R1' (outstanding).

CCC

·	For issuers and performing obligations, default is a real possibility. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic conditions.

For individual obligations, may indicate distressed or defaulted obligations with potential for average to superior levels of recovery. Differences in credit quality may be denoted by plus/minus distinctions. Such obligations typically would possess a Recovery Rating of 'R2' (superior), or 'R3' (good) or 'R4' (average).

·	For issuers and performing obligations, default of some kind appears probable.

·	For individual obligations, may indicate distressed or defaulted obligations with a Recovery Rating of 'R4' (average) or 'R5' (below average).

·	For issuers and performing obligations, default is imminent.

·	For individual obligations, may indicate distressed or defaulted obligations with potential for below-average to poor recoveries. Such obligations would possess a Recovery Rating of 'R6' (poor).

Indicates an entity that has failed to make
due payments (within the applicable grace period) on some but not all material financial obligations, but continues to honor other
classes of obligations.

Indicates an entity or sovereign that has defaulted
on all of its financial obligations. Default generally is defined as one of the following:

– failure of an obligor to make timely payment
of principal and/or interest under the contractual terms of any financial obligation; – the bankruptcy filings, administration,
receivership, liquidation or other winding-up or cessation of business of an obligor; or – the distressed or other coercive exchange
of an obligation, where creditors were offered securities with diminished structural or economic terms compared with the existing
obligation.

Default ratings are not assigned prospectively;
within this context, non-payment on an instrument that contains a deferral feature or grace period will not be considered a default
until after the expiration of the deferral or grace period.

Issuers will be rated 'D' upon a default. Defaulted
and distressed obligations typically are rated along the continuum of 'C' to 'B' ratings categories, depending upon their recovery
prospects and other relevant characteristics. Additionally, in structured finance transactions, where analysis indicates that an
instrument is irrevocably impaired such that it is not expected to meet pay interest and/or principal in full in accordance with
the terms of the obligation's documentation during the life of the transaction, but where no payment default in accordance with
the terms of the documentation is imminent, the obligation may be rated in the 'B' or 'CCC-C' categories.

Default is determined by reference to the terms
of the obligations' documentation. Fitch will assign default ratings where it has reasonably determined that payment has not been
made on a material obligation in accordance with the requirements of the obligation's documentation, or where it believes that
default ratings consistent with Fitch's published definition of default are the most appropriate ratings to assign.

Notes to International Long-Term and Short-Term
ratings

Rating Outlook: An Outlook indicates the direction
a rating is likely to move over a one to two-year period. Outlooks may be positive, stable or negative. A positive or negative
Rating Outlook does not imply a rating change is inevitable. Similarly, ratings for which outlooks are 'stable' could be upgraded
or downgraded before an outlook moves to positive or negative if circumstances warrant such an action. Occasionally, Fitch Ratings
may be unable to identify the fundamental trend. In these cases, the Rating Outlook may be described as evolving.

party or linked to the performance of an index,
ratings of these issues may deviate from the applicable program rating.

Interest Only

Principal Only

Principal Only ratings address the likelihood
that a security holder will receive their initial principal investment either before or by the scheduled maturity date.

Rate of Return

Ratings also may be assigned to gauge the likelihood
of an investor receiving a certain predetermined internal rate of return without regard to the precise timing of any cash flows.

'PIF'

Paid-in -Full; denotes a security that is paid-in-full,
matured, called, or refinanced.

'NR' indicates that Fitch Ratings does not
rate the issuer or issue in question.

'Withdrawn': A rating is withdrawn when Fitch
Ratings deems the amount of information available to be inadequate for rating purposes, or when an obligation matures, is called,
or refinanced, or for any other reason Fitch Ratings deems sufficient.

Fitch’s National Long-Term Credit Ratings

A special identifier for the country concerned
will be added at the end of all national ratings. For illustrative purposes, (xxx) has been used, in the table below.

AAA(xxx)

‘AAA’ national ratings denote the highest rating assigned in its national rating scale for that country. This rating is assigned to the “best” credit risk relative to all other issuers or issues in the same country and will normally be assigned to all financial commitments issued or guaranteed by the sovereign state.

AA(xxx)

‘AA’ national ratings denote a very strong credit risk relative to other issuers or issues in the same country. The credit risk inherent in these financial commitments differs only slightly from the country’s highest rated issuers or issues.

A (xxx)

‘A’ national ratings denote a strong credit risk relative to other issuers or issues in the same country. However, changes in circumstances or economic conditions may affect the capacity for timely repayment of these financial commitments to a greater degree than for financial commitments denoted by a higher rated category.

BBB(xxx)

‘BBB’ national ratings denote an adequate credit risk relative to other issuers or issues in the same country. However, changes in circumstances or economic conditions are more likely to affect the capacity for timely repayment of these financial commitments than for financial commitments denoted by a higher rated category.

BB(xxx)

‘BB’ national ratings denote a fairly weak credit risk relative to other issuers or issues in the same country. Within the context of the country, payment of these financial commitments is uncertain to some degree and capacity for timely repayment remains more vulnerable to adverse economic change over time.

B(xxx)

‘B’ national ratings denote a significantly weak credit risk relative to other issuers or issues in the same country. Financial commitments are currently being met but a limited margin of safety remains and capacity for continued timely payments is contingent upon a sustained, favorable business and economic environment.

CCC(xxx),

CC(xxx), C(xxx) These categories of national ratings denote an extremely weak credit risk relative to other issuers or issues in the same country. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic developments.

DDD(xxx),

DD(xxx), D(xxx) These categories of national ratings are assigned to entities or financial commitments which are currently in default.

MUNICIPAL NOTE RATINGS

Standard & Poor’s Note Ratings

Notas

A Standard & Poor's U.S. municipal note
rating reflects the liquidity factors and market access risks unique to notes. Notes due in three years or less will likely receive
a note rating. Notes maturing beyond three years will most likely receive a long-term debt rating. The following criteria will
be used in making that assessment:

·	Amortization schedule – the larger the final maturity relative to other maturities, the more likely it will be treated as a note; y

·	Source of payment – the more dependent the issue is on the market for its refinancing, the more likely it will be treated as a note.

Note rating
symbols are as follows:

SP-1

Strong capacity to pay principal and interest.
An issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation.

SP-2

Satisfactory capacity to pay principal and
interest, with some vulnerability to adverse financial and economic changes over the term of the notes.

SP-3

Speculative capacity to pay principal and interest.

Moody’s MIG/VMIG Ratings U.S. Short-Term
Ratings

US Municipal Short-Term Debt And Demand Obligation Ratings

Short-Term Debt Ratings

There are three rating categories for short-term
municipal obligations that are considered investment grade. These ratings are designated as Municipal Investment Grade (MIG) and
are divided into three levels — MIG 1 through MIG 3. In addition, those short-term obligations that are of speculative quality
are designated SG, or speculative grade. MIG ratings expire at the maturity of the obligation.

MIG 1

This designation denotes superior credit quality.
Excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access
to the market for refinancing.

MIG 2

This designation denotes strong credit quality.
Margins of protection are ample, although not as large as in the preceding group.

MIG 3

This designation denotes acceptable credit
quality. Liquidity and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established.

This designation denotes speculative-grade
credit quality. Debt instruments in this category may lack sufficient margins of protection.

Fuente

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