BTS Tactical Fixed Income VIT Fund

The Fund’s goal is total return and this may be accomplished by the defensive capital preservation strategies utilized by BTS. The Fund seeks equity-like returns with traditional bond-level risk. The Fund aims to rotate to the bond classes that have the highest potential return while implementing stop-loss measures to reduce downside volatility.

Most investors lump all bonds together and do not realize the varying returns that they may offer. BTS believes focusing on a set of core and satellite bond investments with low correlation to one another may offer attractive upside potential, but the more important upside is that there is a place to allocate assets when most traditional investments are losing value. That means that we are willing to allocate our portfolio to 100% cash if we believe that full safety is needed. This is what separates us from most mutual funds, the willingness to admit that buy and hold approaches are risky and not appropriate for most baby-boomers.

With 36 years of experience in bond portfolio management, BTS believes it brings a distinct approach to our investors. Many investors look for bonds to primarily provide them income. BTS believes that there is much more to bonds. By utilizing the price side of bonds, BTS believes that it has been able to offer clients favorable returns while reducing downside volatility. Now we bring our 3 decades worth of experience to the variable subaccount arena, giving investors easier access to our investment approach. By attempting to be in the “right bond at the right time” instead of an over diversified approach we believe that bonds can still be the answer even in a rising interest rate environment.

The Barclays Capital Aggregate Bond Index is comprised of government securities, mortgage-backed securities, asset–backed securities and corporate securities with maturities of one year or more to simulate the universe of bonds in the market. Investors cannot directly invest in an index; unmanaged index returns do not reflect any fees, expenses or sales charges.

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principle value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. A Fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. For performance information current to the most recent month-end, please call toll-free 800-343-3040. Past performance is no guarantee of future results.

The Fund is an Investment vehicle for variable annuity contracts and may be subject to fees or expenses that are typically charged by these contracts. Please review the insurance contract prospectus for further description of these fees and expenses. This product is available as a sub-account investment to a variable annuity contract only and is not offered directly to the general public. Variable subaccounts involve risk, including possible loss of principal.

Where to Purchase

The BTS Tactical Fixed Income VIT Fund is available through:

Jefferson National Monument Advisor
Nationwide MarketFlex

For the latest availability: call 800-343-3040.

BTS Funds © 2014

Investors should carefully consider the investment objectives, risks, charges, and expenses of BTS Funds. This and other important information is contained within the individual Fund’s prospectus and should be read carefully before investing. The Fund prospectus can be obtained by calling 1-877-287-9820 (1-877-BTS-9820). BTS Funds are distributed by Northern Lights Distributors, LLC. Mutual Funds involve risk including possible loss of principal. BTS Asset Management, Inc. is not affiliated with Northern Lights Distributors, LLC.

There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.

The Funds invest in fixed income securities, derivatives on fixed income securities or other investment companies (“Underlying Funds”) that invest in fixed income securities. The value of the Funds will fluctuate with changes in interest rates. Defaults by fixed income issuers in which the Funds invest will also harm performance. There is a risk that issuers and counterparties will not make payments on securities and other investments held by the Funds, resulting in losses to the Funds. In addition, the credit quality of fixed income securities held by the Funds may be lowered if an issuer's financial condition changes. The credit risk, liquidity risk, and potential for default is heightened for lower-quality debt securities, also known as "high-yield" or "junk" bonds. The Funds may invest in obligations issued by agencies and instrumentalities of the U.S. Government. The U.S. Government may choose not to provide financial support to U.S. Government sponsored agencies or instrumentalities if it is not legally obligated to do so, in which case, if the issuer defaulted, the Funds might not be able to recover its investment.

The Funds may seek to execute an investment strategy to enhance returns or hedge against market declines by purchasing or entering into derivative contracts such as futures, options on futures, structured notes, swaps or purchasing securities whose prices are expected to move inversely to prices of the Funds’ portfolio of securities. The Funds’ use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Even a small investment in derivatives may give rise to leverage risk, and can have a significant impact on the Funds’ performance. The Funds may use credit default swaps (“CDS”) which involves investment techniques and risks different from those associated with ordinary portfolio security transactions, such as potentially heightened counterparty, concentration and exposure risks.

The Funds’ performance may depend on issues other than the performance of a particular company or U.S. market sector. The values of foreign 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. The value of foreign securities is also affected by the value of the local currency relative to the U.S. dollar. In addition to the risks generally associated with investing in foreign securities, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues.

The Funds may use leverage which may exaggerate changes in a Fund’s share price and the return on their investments. Accordingly, the value of the Funds’ investments may be more volatile and all other risks, including the risk of loss of an investment, could be compounded or magnified. The use of inverse mutual funds will prevent the Funds from participating in market-wide or sector-wide gains and may not prove to be an effective hedge.

The Funds may engage in short selling activities and take short positions in derivatives, which are significantly different from the investment activities commonly associated with conservative fixed income funds. Positions in shorted securities and short positions are speculative and more risky than “long” positions (purchases) because the cost of the replacement security is unknown. Therefore, the potential loss on an uncovered short sale or short position is potentially unlimited.

Underlying Funds are subject to investment advisory and other expenses, which will be indirectly paid by the Funds. As a result, your cost of investing in the Funds will be higher than the cost of investing directly in the Underlying Funds and may be higher than other mutual funds that invest directly in stocks and bonds.

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