Dynamic Alpha Macro Fund May 2026 Overview

Welcome to the Monthly Summary

The Dynamic Alpha Macro Fund aims to outperform its benchmark by employing a dual-strategy approach. The fund combines a fundamental global macro strategy with a balanced portfolio of U.S. equities. This blend of non-correlated assets is designed to manage risk and generate what we refer to as “Dynamic Alpha.”

The portfolio is comprised of U.S. Equity ETFs, a global macro futures strategy, and short-term fixed income. The global macro strategy provides long/short exposure to over 40 diverse and non-correlated markets, including currencies, metals, energy, commodities, and financial indices.

We are committed to our shareholders, keeping you informed and ensuring our strategies align with the ever-evolving financial landscape. If you have any questions, feel free to contact us at info@DynamicWG.com.

peRFORMANCE METRICS

* Expense Ratio is 1.81%.
* Fund inception was 7/31/2023.
Performance data shown represents past performance and is not a guarantee of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Updated performance information and daily net asset value per share (“NAV”) is available at no cost by calling toll-free 1-833-462-6344.

Dynamic Alpha Macro Fund PORTFOLIO OVERVIEW

MACRO OBSERVATIONS AND MARKET ANALYSIS

This Month’s Performance

May tested the Dynamic Alpha Macro Fund’s flexibility during a normal but uncomfortable drawdown. We reduced exposure, narrowed the portfolio to our highest-conviction ideas, and used the period to reassess both near-term trades and the larger secular themes that guide our process. In the discussion that follows, we explain how we are thinking through that balance today: staying disciplined in the short term while preparing for what we believe may be meaningful opportunities ahead.

Big picture

We are in a typical performance drawdown – these are never fun but an unavoidable part of the business. In line with how we always handle drawdowns, we are doing two things:

[1] We have sized positions down and kept a reduced set of themes in the portfolio, focusing on our best near-term ideas.

[2] We are spending extra time thinking through the very big picture around our core, long-term themes.

We’ll invert these and discuss [2] first, as it anchors our decision making.

Secular horizon: the anchor

In a drawdown, it’s important to keep trades small and expend mental energy on pressure testing core, long-term views. Most of the following longer-term positions were removed from the portfolio in recent months, either for risk management purposes (short Nasdaq, long bonds) or because we have patiently been waiting for an entry point into a position we had carried profitably and closed out in previous months (gold).

Equities:

The raging debate is whether we are in a 1996 or 1999 moment with AI and LLMs, compared to the tech boom of the late 1990s. We don’t know, but the characteristics of the current AI mania feel closer to 1999. Most managers with a long equity bias will not attempt to short this bubble; it’s our job to do so. We have tried a couple of selective shorts on the Nasdaq 100 over the past few years – each time we were stopped out for a small loss. We are currently awaiting another opportunity to re-enter that position, as our conviction continues to grow that a large 40-50% bear market awaits on the other side of this boom .

Bonds:

We have been attempting to build a long bond position at various times over the past three years and have been repeatedly whipsawed. As with our view on equities, although our timing has been off, our conviction in this position has grown. Bonds have built a 4-year base and sentiment is as bearish as we have ever seen in an asset class, with unanimous conviction across both retail and professionals that large, unsustainable fiscal deficits and embedded inflation must lead to higher yields.

We actually agree, with the important caveat that we believe the next leg of the big bond bear market awaits us after a short-term deflationary scare, one that lines up with a coming reverse wealth effect bust in large cap equities.

Bonds often rally unexpectedly, well before it is apparent that an economic downturn has taken effect. During the October 2007- March 2009 equity bear market, the most meaningful rally in bonds occurred from June 2007- March 2008, well before the core of the equity market decline in late summer 2008 (what we now refer to as the Global Financial Crisis, or GFC).

2-year Treasury notes: 2006-2008

Source: CSI Data

Gold:

We believe we are in the 3^rd year of what will likely be a 10-year secular bull market in gold. After reaching a fever pitch in January 2026, gold has quietly consolidated in a bullish fashion over the past four months. Volatility has fallen markedly and investor attention has shifted first toward oil and then to semiconductors. Gold is approaching a likely bottom, after which we would expect a multi-thousand-dollar rally over the next couple of years.

U.S. dollar:

The dollar has spent a year grinding sideways, after beginning what we believe to be the start of a long secular bear market in early 2025. The most notable fundamental fact about the dollar is what it did not do: it failed to have a meaningful rally when the war in the Middle East broke out, sustaining just a small rally in the first two weeks of March 2026. This meagre bounce in the dollar likely led to foreign selling of USD based positions; this is very different behavior relative to how the dollar moved at various times in the preceding decade.

Our core fundamental views are intact: we are bearish U.S. large cap equities, bullish Treasuries, bearish U.S. dollar, and bullish gold.

We will look to reinstate these core financial positions in the months ahead. Timing is always the tricky part. As mentioned above, bonds rallied well in advance of the bear market in equities in the GFC. During the dot-com bust at the turn of the millennium, the rally in bonds occurred at roughly the same time as the beginning of the bear market in equities. As a rough heuristic, we think that yields will fall and gold will rally before equities tip into a serious bear market; as a result, we’ll probably save any attempt at re-shorting large cap U.S. equities for last.

Cyclical horizon: portfolio in May

Our current portfolio is dominated by commodities, predominantly over a shorter-term horizon, with only one long-term core theme (copper).

Long copper:

 Copper is quietly breaking out to all-time highs, with far less commentary than it had a few years ago. There has been no new greenfield mine supply in over ten years, and demand from a stack of AI, EVs, military, power distribution and transmission keeps accelerating.

Agriculture:

 The core of our portfolio is in a mix of agricultural trades, which is where we see the most opportunity at present, while we wait for better technical entries into other positions.

• Long corn and long sugar: Both markets are 50% off their peaks a few years ago, with fundamentals improving and additional demand projected in the coming year as El Nino weather patterns increase drought in the southern hemisphere.

• Short cattle and short coffee: These two expensive agriculture markets feature consumer demand destruction (cattle) and increasing supply (coffee).

As always, we remain nimble. If the data and/or our views change, we can pivot our positioning and find other trades within the 40+ markets we have available. This is also why we maintain a strategic allocation to U.S. equities in our overall fund strategy, balancing a buy-and-hold approach with active global macro long and short positions.

We Are Here To Help

We appreciate your continued trust and partnership and look forward to updating you on our progress in the coming months. Please feel free to reach out if we can provide additional clarification on specific ideas or the portfolio more broadly.

If you are a financial advisor and would like more information on our multi-dimensional approach towards asset management, you can download our white paper titled Busting Seven Risk and Return Myths by visiting our website at DynamicWG.com, or email us at info@DynamicWG.com. If you are an individual investor, we are happy to address any questions you may have and put you in touch with a qualified advisor, if so desired.

OUR dynamic alpha macro fund LONG/SHORT INVESTMENT UNIVERSE

The list above is not all inclusive.

CONTACT INFORMATION for the Dynamic Alpha Macro Fund

If you’re an advisor or investor interested in learning more about the Dynamic Alpha Macro Fund, you can get in touch through the “Contact Us” page on their website at https://dynamicalphafunds.com/contact-us/. Alternatively, you can directly email your inquiries to info@dynamicalphafunds.com.

IMPORTANT RISK INFORMATION

Disclaimers:

• An investor should consider the investment objectives, risks, charges, and expenses of the Dynamic Alpha Macro Fund carefully before investing. The Fund and summary prospectus contain this and other information about the Fund and should be read carefully before investing. To obtain a prospectus, please call 1-833-462-6344 or access online at https://regdocs.blugiant.com/dynamic-alpha-macro/
• Expense ratios shown reflect gross/net fund operating expenses including acquired fund fees and expenses as per the Fund’s prospectus dated November 1, 2024. The net expense ratio reflects a contractual fee waiver/reimbursement that is in place until 10/31/2025. Absent such waiver, performance and returns would have been lower. The Adviser may discontinue the waiver after the expiration date. Investors should review the Fund’s prospectus for a complete discussion of fees and expenses.
• All investment strategies and investments involve the risk of loss. Nothing within this communication constitutes financial, legal, tax, or other advice, nor should any investment or strategy be undertaken without fully understanding all the risks associated with such an investment or strategy.
• The views, opinions, or advice contained above are solely those of the author and do not necessarily reflect those of Ceros Financial Services LLC or its affiliates. The strategies and/or investments referenced may not be appropriate for all investors, as the appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
• Ceros Financial Services, Inc., member FINRA/SIPC, distributes the funds and is a commonly held affiliate of Advisors Preferred. Advisors Preferred and Ceros are not affiliated with the funds’ subadvisor, Dynamic Wealth Group, which serves as the subadvisor to the Dynamic Alpha Macro Fund.
• Any performance figures reported are historical and should not be taken as an indication of future performance. Investment in the financial markets involves risk, and there is always the potential of losing money when investing in securities.
• The views expressed about market trends, including opinions on bonds, equities, gold, crude oil, or any other market, are based on current market conditions and are subject to change without notice. These views should not be construed as a recommendation for any specific investment or financial strategy.
• Discussions of supply and demand, including historical context and future forecasts, involve estimates and assumptions subject to significant uncertainties. Actual future conditions (including oil supply, demand, and prices) may vary markedly from the analysis presented.
• The commentary regarding our trading approach and investment views, including short-term trading outcomes and long-term market predictions, represents the opinions of our investment team at the time of writing. Our commentary does not promise or guarantee future investment strategies or performance.
• Our economic outlook, including any predictions of economic conditions or their impact on investments, is speculative and should not be relied upon for making investment decisions. Economic conditions are complex and can be affected by various unforeseen factors.
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• Dynamic Wealth Group (“Dynamic”) is an SEC-registered investment adviser. SEC registration does not constitute an endorsement of Dynamic by the SEC, nor does it indicate that Dynamic has attained a particular level of skill or ability. This material prepared by Dynamic is for informational purposes only. It is not intended to substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product.
• Opinions expressed by Dynamic are based on economic or market conditions when this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated.
• Facts presented have been obtained from sources believed to be reliable. Dynamic, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source.
• Any reference to an index is included for illustrative purposes only, as an index is not a security in which an investment can be made. Indices are unmanaged vehicles that serve as market indicators and do not account for the deduction of management fees and/or transaction costs generally associated with investable products. Past performance is no guarantee of future results. Actual returns may be lower.
• S&P 500 Total Return Index: The Standard and Poor’s 500 is a capitalization-weighted index of 500 stocks representing all domestic industry groups. S&P500TR assumes reinvestment of any dividends.
• S&P Target Risk Growth Index: The S&P Target Risk Growth Index is designed to measure the performance of equity allocations, while seeking to provide limited fixed income exposure to diversify risk.
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• Fund Ranking Disclosure: As of 12/31/24, the fund was ranked #1 in the Morningstar Macro Trading category out of 60 funds for the 1-year period based on total returns. Rankings are based on historical performance and are subject to change.