UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number
811-08037
AdvisorOne Funds
(Exact name of registrant as specified in charter)
17605 Wright Street, Omaha, NE
68130
(Address of principal executive offices)
(Zip code)
Gemini Fund Services, LLC., 81 Arkay Drive., Hauppauge, NY 11788
(Name and address of agent for service)
Registrant's telephone number, including area code:
402-493-3313
Date of fiscal year end:
4/30
Date of reporting period: 10/31/14
Item 1. Reports to Stockholders.
AdvisorOne Funds Semi-Annual Report | ||
Table of Contents | ||
Letter from the Portfolio Management Team | 3 | |
Amerigo Fund - Portfolio Summary | 5 | |
Amerigo Fund - Performance Update | 6 | |
Clermont Fund - Portfolio Summary | 7 | |
Clermont Fund - Performance Update | 8 | |
Select Allocation Fund - Portfolio Summary | 9 | |
Select Allocation Fund - Performance Update | 10 | |
Descartes Fund - Portfolio Summary | 11 | |
Descartes Fund - Performance Update | 12 | |
Liahona Fund - Portfolio Summary | 13 | |
Liahona Fund - Performance Update | 14 | |
Enhanced Income Fund - Portfolio Summary | 15 | |
Enhanced Income Fund - Performance Update | 16 | |
Flexible Income Fund - Portfolio Summary | 17 | |
Flexible Income Fund - Performance Update | 18 | |
Select Appreciation Fund - Portfolio Summary | 19 | |
Select Appreciation Fund - Performance Update | 20 | |
Shelter Fund - Portfolio Summary | 21 | |
Shelter Fund - Performance Update | 22 | |
Amerigo Fund - Schedule of Investments | 23 | |
Clermont Fund - Schedule of Investments | 25 | |
Select Allocation Fund - Schedule of Investments | 28 | |
Descartes Fund - Schedule of Investments | 31 | |
Liahona Fund - Schedule of Investments | 32 | |
Enhanced Income Fund - Schedule of Investments | 34 | |
Flexible Income Fund - Schedule of Investments | 39 | |
Select Appreciation Fund - Schedule of Investments | 42 | |
Shelter Fund - Schedule of Investments | 44 | |
Statements of Assets and Liabilities | 45 | |
Statements of Operations | 47 |
1 |
AdvisorOne Funds Semi-Annual Report | ||
Table of Contents, cont’d. | ||
Amerigo Fund - Statements of Changes in Net Assets | 49 | |
Clermont Fund - Statements of Changes in Net Assets | 49 | |
Select Allocation Fund - Statements of Changes in Net Assets | 50 | |
Descartes Fund - Statements of Changes in Net Assets | 50 | |
Liahona Fund - Statements of Changes in Net Assets | 51 | |
Enhanced Income Fund - Statements of Changes in Net Assets | 51 | |
Flexible Income Fund - Statements of Changes in Net Assets | 52 | |
Select Appreciation Fund - Statements of Changes in Net Assets | 52 | |
Shelter Fund - Statements of Changes in Net Assets | 53 | |
Amerigo Fund - Financial Highlights | 54 | |
Clermont Fund - Financial Highlights | 56 | |
Select Allocation Fund - Financial Highlights | 57 | |
Descartes Fund - Financial Highlights | 58 | |
Liahona Fund - Financial Highlights | 59 | |
Enhanced Income Fund - Financial Highlights | 60 | |
Flexible Income Fund - Financial Highlights | 61 | |
Select Appreciation Fund - Financial Highlights | 62 | |
Shelter Fund - Financial Highlights | 63 | |
Notes to Financial Statements | 64 | |
Shareholder Expense Example | 84 |
2 |
AdvisorOne Funds Semi-Annual Report
Letter From The Portfolio Management Team
Dear Shareholders,
The bull market continues. The six months ending on October 31, 2014 witnessed more strong gains in the global stock markets, with the United States leading the way. The overall U.S. market, as defined by the Russell 3000, gained nearly 8% during this time frame. The S&P 500 (a benchmark of mostly larger companies) gained 8% and the Russell 2000 (a benchmark for small cap stocks) was up 5%. As mentioned in our last letter, this bull market ranks among the strongest ever in U.S. market history.
The AdvisorOne Funds continue to participate in these gains. Though globally balanced, portfolios have not had the same level of absolute returns as the S&P 500. For instance, international stocks, led by losses in Europe, lost 3% over the last six months (though emerging market stocks did gain 4%). Fixed income, as defined by the Barclays Aggregate Bond Index (a benchmark for the overall domestic bond market), gained 2%.
Performance in the AdvisorOne Funds was impacted by a few key factors. First, the positives: our emphasis on larger companies over small companies added value. In addition, our overall sector positioning added value, led by our emphasis on technology.
The leading negative, however, was our emphasis on international equities. We continue to build our international position on relative market weakness due to our belief that expected returns in the international markets - both developed and emerging - appear superior to the U.S. in the years ahead. Given the outperformance of the U.S. in recent years, valuations are simply more attractive overseas. Secondarily, the AdvisorOne Funds have been slightly defensive due to concerns regarding the overall valuation of the U.S. market. Again, this is a by-product of a mature bull market.
We continue to build the various portfolios around the CLS Investment Themes:
● | International: We are adding international securities. Strategically, we believe that incorporating international securities alongside domestic should enhance portfolio returns and reduce risks over time. Tactically, we believe the international markets may offer strong returns moving forward. |
● | High-Quality: Tactically, we believe this is a time to emphasize high-quality companies. The economic expansion and equity bull market are both mature, and high-quality companies tend to do better in this environment. Historically, high-quality companies have outperformed when the expansion and bull market ends. |
● | Technology: Technology stocks continue to sport attractive valuations. We are maintaining this position. |
● | Creative diversification: Given the low level of interest rates, we continue to be creative in how to diversify our equity-dominated portfolios. We can do this in two ways. First, we have been tactical in our fixed income exposures. We have been actively managing our duration (i.e., interest rate sensitivity), credit, and sector exposures. Currently, our portfolios are less interest-rate sensitive than the over-all bond market, are tilted toward credit, and have notable exposure in corporate bonds. Second, we use alternative asset class segments and strategies. |
3 |
AdvisorOne Funds Semi-Annual Report
The portfolio turnover rates have been lower than usual this year. This, however, has been mostly the function of fund flows, where inflows have made it easier to reshape our holdings without incurring official portfolio turnover. It has also made it easy for most of the funds to remain tax-friendly, with most funds anticipated to have minimal capital gain distributions.
Sincerely,
Portfolio Management Team
On November 3, 2014, the names of each AdvisorOne Fund were changed. For additional information about these changes, refer to the Notes to Financial Statements at the back of this Report.
4 |
AdvisorOne Funds Semi-Annual Report | Amerigo Fund - Portfolio Summary |
Portfolio Commentary | |
Amerigo generated a 3.1% total return for the six months ending October 31, 2014. The Fund has a Risk Budget of 100 (i.e., over time is approximately as risky as a diversified equity portfolio consisting of 80% domestic equities and 20% international equities). The Fund trailed its benchmark during this time frame, primarily due to its exposure to international securities. | |
Moving forward, the Fund’s notable positions include tilts towards international equities, with an emphasis in emerging markets, Europe, and Asia. Relative valuations, accommodative monetary policy and improving growth prospects drive this positioning. | |
Regarding overall equity positioning, we remain slightly defensive on the market due to valuations concerns. This positioning helped during the two months that the market posted losses. Digging deeper into our equity positioning among domestic sectors, the largest sector tilt is towards the technology sector. Technology stocks are trading at or near their most attractive relative valuations in some time. This is dominated by large cap tech stocks, which is also helping the Fund’s emphasis on high-quality stocks (i.e., companies with stronger balance sheets and more consistent profitability). The Fund also has a slight emphasis in energy and consumer staples stocks. There has been much less emphasis in consumer discretionary stocks, which are overvalued according to historical relative valuations. | |
Trades in recent months have been to emphasize CLS’s Investment Themes, including tilts to high-quality equities and international stocks. Turnover for the Fund over the last six months was 7%. | |
*Based on total net asset value as of October 31, 2014. Portfolio holdings are subject to change and should not be a recommendation to buy individual securities. Concentrating in a small number of investments increases the Fund’s risk because each investment has a greater effect on the Fund’s performance. | |
You cannot invest directly in an index or benchmark. |
Portfolio Composition* | |
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Top Ten Portfolio Holdings* | *Percentages based on Net Assets | |
Vanguard Dividend Appreciation ETF | 9.35% | |
This Fund seeks to track the performance of the NASDAQ US Dividend Achievers Select Index. | ||
SPDR - Technology Select Sector Fund | 6.07% | |
This Fund seeks to closely match the returns and characteristics of the Technology Select Sector of the S&P 500 Index. | ||
iShares - MSCI EAFE ETF | 6.04% | |
This Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the European, Austral-asian and Far Eastern markets, as measured by the MSCI EAFE Index. | ||
iShares - MSCI USA Quality Factor ETF | 5.77% | |
This Fund seeks to track the investment results of an index that measures the performance of U.S. large- and mid-capitalization stocks as identified through three fundamental variables: return on equity, earnings variability and debt-to-equity. | ||
PowerShares - QQQ Trust Series 1 | 5.45% | |
This Fund seeks to include 100 of the largest, most innovative non-financial companies that trade on the NASDAQ Stock Market, based on market capitalization. | ||
iShares - Russell 1000 Growth ETF | 5.33% | |
This Fund seeks investment results that correspond with the large-capitalization growth sector of the U.S. equity market. | ||
iShares - Core MSCI Emerging Market ETF | 4.73% | |
This Fund seeks to track the investment results of an index composed of large- and mid-capital- ization emerging market equities. | ||
PowerShares International Dividend Achievers Portfolio | 4.58% | |
This Fund seeks investment results that generally correspond to the price and yield of the Share BuyBack Achievers Index. | ||
WisdomTree Emerging Markets Equity Income Fund | 4.27% | |
This Fund seeks investment results that correspond to the price and yield performance, before fees and expenses, of the WisdomTree Emerging Markets Equity Income Index. | ||
SPDR - Energy Select Sector Fund | 4.16% | |
This Fund seeks to invest in a wide array of industrial companies including aerospace, defense, building products, construction, engineering, electrical equipment, and others. |
5 |
AdvisorOne Funds Semi-Annual Report | Amerigo Fund - Performance Update |
Annualized Total Returns as of October 31, 2014
Since | Inception | |||||||||||||
6 Months* | 1 Year | 3 Year | 5 Year | 10 Year | Inception | Date | ||||||||
Class C Shares1 | 2.60% | 8.36% | 12.51% | 10.84% | 5.96% | 2.50% | 7/13/00 | |||||||
Class N Shares2 | 3.07% | 9.25% | 13.56% | 11.93% | 6.99% | 6.07% | 7/14/97 |
* | Figure is not annualized. |
1 | Class C Shares are subject to a CDSC of 1% on shares redeemed within 18 months of purchase. |
2 | Class N Shares are not subject to an initial sales charge or a CDSC. |
Growth of a $10,000 Investment
This chart illustrates a comparison of a hypothetical investment of $10,000 in the Amerigo Fund (assuming reinvestment of all dividends and distributions) versus the Fund’s benchmark index.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The Fund’s total annual operating expenses, including underlying fund expenses, for the Amerigo Fund Class C and Class N for the fiscal year ending October 31, 2014 were 2.44% and 1.44%, respectively. Performance results reflect a contractual fee waiver by the investment adviser as described in the prospectus of the Fund. For performance information current to the most recent month-end, please call toll-free 1-866-811-0225.
“S&P 500 Index”, a registered trademark of McGraw-Hill Co., Inc., is a market capitalization weighted index of 500 widely held common stocks. Investors cannot invest directly in an index or benchmark.
The Russell 3000® Index is a market-capitalization-weighted index that measures 98% of the investable U.S. equity market.
CLS Investments, LLC (the “Adviser”) has elected to change the benchmark for the Fund. Going forward, the Russell 3000 Index will replace the S&P 500 Index as the Fund’s primary broad-based index. The S&P 500 Index will continue to be shown with the risk budget benchmark information for a period of one year.
* | Performance of the risk budget benchmark shows how the Fund’s performance compares to an index with similar investment strategies and underlying holdings as the Fund. The blended benchmark consists of 80% of the Russell 3000® Index and 20% of the MSCI ACWI (ex-US). The index inception date of the MSCI ACWI (ex-US) Index is 12/31/1998. |
6 |
AdvisorOne Funds Semi-Annual Report | Clermont Fund - Portfolio Summary |
Portfolio Commentary | |
Clermont generated a 1.5% total return for the six months ending October 31, 2014. The Fund has a Risk Budget of 55 (i.e., over time, the Fund is 55% as risky as a diversified stock portfolio consisting of 80% domestic equities and 20% international equities). The Fund trailed its benchmark during this time frame, primarily due to its exposure to international securities.
Moving forward, the Fund’s notable positions include tilts towards international equities, with an emphasis in emerging markets, Europe, and Asia. Relative valuations, accommodative monetary policy, and improving growth prospects drive this positioning. | |
Regarding overall equity positioning, we remain slightly defensive on the market due to valuations concerns. This positioning helped during the two months that the market posted losses. Digging deeper into our equity positioning among domestic sectors, the largest sector tilt is towards the technology sector. Technology stocks are trading at or near their most attractive relative valuations in some time. This is dominated by large cap tech stocks, which is also helping the Fund’s emphasis on high-quality stocks (i.e., companies with stronger balance sheets and more consistent profitability). The Fund also has a tilt towards consumer staples stocks. | |
The duration for the Fund’s fixed income assets is slightly lower (less interest-rate sensitive) than the overall bond market. We still want high-quality duration in the portfolio to diversify equity exposure, but want to maintain below benchmark weights due to the overall low level of interest rates. | |
In terms of credit exposure, the Fund is currently positioned to perform better if credit outperforms. That said, fixed income trades in recent months have been made to improve the credit quality of the Fund. | |
Turnover for the Fund over the last six months was 16%. | |
*Based on total net asset value as of October 31, 2014. Portfolio holdings are subject to change and should not be a recommendation to buy individual securities. Concentrating in a small number of investments increases the Fund’s risk because each investment has a greater effect on the Fund’s performance. | |
You cannot invest directly in an index or benchmark. |
Portfolio Composition* | |
![]() | |
Top Ten Portfolio Holdings* | *Percentages based on Net Assets | |
Vanguard Dividend Appreciation ETF | 9.98% | |
This Fund seeks to track the performance of the NASDAQ US Dividend Achievers Select Index. | ||
PIMCO Total Return Active ETF | 7.94% | |
This Fund is a diversified portfolio of high quality bonds that is actively managed in an effort to maximize return in a risk-controlled framework. | ||
iShares - TIPS Bond ETF | 7.02% | |
The Fund seeks results that correspond generally to the price and yield performance, before fees and expenses, of the inflation-protected sector of the U.S. Treasury market as defined by the Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). | ||
iShares - MSCI USA Quality Factor ETF | 5.67% | |
This Fund seeks to track the investment results of an index that measures the performance of U.S. large- and mid-capitalization stocks as identified through three fundamental variables: return on equity, earnings variability and debt-to-equity. | ||
PIMCO Enhanced Short Maturity Active ETF | 5.60% | |
This Fund seeks maximum current income, consistent with preservation of capital and daily liquidity. | ||
iShares - Floating Rate Bond ETF | 5.26% | |
The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays U.S. Floating Rate Note <5 Years Index. | ||
iShares - JP Morgan USD Emerging Markets Bond ETF | 3.96% | |
This Fund seeks to track the investment results of an index composed of U.S. dollar-denominated, emerging market bonds. | ||
PowerShares International Dividend Achievers Portfolio | 3.91% | |
This Fund seeks investment results that generally correspond to the price and yield of the Share BuyBack Achievers Index. | ||
Vanguard FTSE Europe ETF | 3.68% | |
This Fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in the major markets of Europe. | ||
iShares - Global 100 ETF | 3.46% | |
This Fund seeks investment results that correspond generally to the price and yield performance of global large-cap stocks. | ||
7 |
AdvisorOne Funds Semi-Annual Report | Clermont Fund - Performance Update |
Annualized Total Returns as of October 31, 2014
Since | Inception | |||||||||||||
6 Months* | 1 Year | 3 Year | 5 Year | 10 Year | Inception | Date | ||||||||
Class N Shares1 | 1.48% | 4.59% | 8.16% | 8.19% | 4.38% | 3.74% | 7/14/97 |
* | Figure is not annualized. |
1 | Class N Shares are not subject to an initial sales charge or a CDSC. |
Growth of a $10,000 Investment
This chart illustrates a comparison of a hypothetical investment of $10,000 in the Clermont Fund (assuming reinvestment of all dividends and distributions) versus the Fund’s benchmark index.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The Fund’s total annual operating expenses, including underlying fund expenses, for the Clermont Fund are 1.53%. Performance results reflect a contractual fee waiver by the investment adviser as described in the prospectus of the Fund. For performance information current to the most recent month-end, please call toll-free 1-866-811-0225.
“S&P 500 Index”, a registered trademark of McGraw-Hill Co., Inc., is a market capitalization weighted index of 500 widely held common stocks. Investors cannot invest directly in an index or benchmark.
The Russell 3000® Index is a market-capitalization-weighted index that measures 98% of the investable U.S. equity market.
CLS Investments, LLC (the “Adviser”) has elected to change the benchmark for the Fund. Going forward, the Russell 3000 Index will replace the S&P 500 Index as the Fund’s primary broad-based index. The S&P 500 Index will continue to be shown with the risk budget benchmark information for a period of one year.
* | Performance of the risk budget benchmark shows how the Fund’s performance compares to an index with similar investment strategies and underlying holdings as the Fund. The risk budget benchmark consists of (i) 55% of a blended benchmark consisting of 80% of the Russell 3000® Index and 20% of the MSCI ACWI (ex-US), and (ii) 45% of the 1-3 month Treasury Bill index. The index inception date of the MSCI ACWI (ex-US) Index is 12/31/1998. |
8 |
AdvisorOne Funds Semi-Annual Report | Select Allocation Fund - Portfolio Summary |
Portfolio Commentary | |
Select Allocation generated a 2.9% total return for the six months ending October 31, 2014. The Fund has a Risk Budget of 80 (i.e., over time is approximately 80% as risky as a diversified stock portfolio consisting of 80% domestic equities and 20% international equities). The Fund slightly trailed its benchmark during this time frame, primarily due to its allocation to international securities. | |
The Fund has an emphasis in the following sectors: technology, health care, and energy. Internationally, the Fund is focused on emerging market countries, such as those in Latin America, Asia, Africa, and the Middle East. The overall allocation is focused on high-quality, low value areas of the market that offer consistent growth opportunities. | |
Trading in recent months has focused on taking profits from the heavy allocation to technology, and redistributing funds toward energy and health care. International opportunities have also been a focus, with funds deployed toward international areas we feel offer relative value and stability, such as Japan, Asia, and Canada. | |
Turnover for the Fund over the last six months was 19%. | |
*Based on total net asset value as of October 31, 2014. Portfolio holdings are subject to change and should not be a recommendation to buy individual securities. Concentrating in a small number of investments increases the Fund’s risk because each investment has a greater effect on the Fund’s performance. | |
You cannot invest directly in an index or benchmark. | |
Portfolio Composition* | |
![]() | |
Top Ten Portfolio Holdings* | *Percentages based on Net Assets | |
iShares - MSCI EAFE ETF | 5.85% | |
This Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the European, Austral-asian and Far Eastern markets, as measured by the MSCI EAFE Index. | ||
PowerShares - QQQ Trust Series 1 | 4.80% | |
This Fund seeks to include 100 of the largest, most innovative non-financial companies that trade on the NASDAQ Stock Market, based on market capitalization. | ||
iShares - MSCI ACWI ex US ETF | 4.37% | |
This Fund seeks investment results that correspond generally to the price and yield performance of the MSCI All Country World Index ex U.S.A. | ||
iShares - Floating Rate Bond ETF | 4.23% | |
This Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Barclay’s U.S. Floating Rate Note <5 Years Index. | ||
SPDR Dow Jones Industrial Average ETF Trust | 4.23% | |
SPDR Dow Jones Industrial Average ETF seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the Dow Jones Industrial Average. | ||
PIMCO Enhanced Short Maturity Active ETF | 3.66% | |
This Fund seeks maximum current income, consistent with preservation of capital and daily liquidity. | ||
Vanguard Health Care ETF | 3.50% | |
This Fund seeks to track the performance of a benchmark index that measures the investment return of health care stocks. | ||
Vanguard Large-Cap ETF | 3.09% | |
The Fund seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. | ||
Vanguard Growth ETF | 3.04% | |
This Fund is an exchange-traded share class of Vanguard Growth Index Fund, which is designed to track the performance of the MSCI US Prime Market Growth Index. | ||
SPDR Energy Select Sector Fund | 3.04% | |
This Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P® Energy Select Sector Index. |
9 |
AdvisorOne Funds Semi-Annual Report | Select Allocation Fund - Performance Update |
Annualized Total Returns as of October 31, 2014
Since | Inception | ||||||
6 Months* | 1 Year | 3 Year | 5 Year | 10 Year | Inception | Date | |
Class N Shares1 | 2.87% | 7.52% | 11.58% | 10.46% | N/A | 4.59% | 1/27/06 |
* | Figure is not annualized. |
1 | Class N Shares are not subject to an initial sales charge or a CDSC. |
Growth of a $10,000 Investment
This chart illustrates a comparison of a hypothetical investment of $10,000 in the Select Allocation Fund (assuming reinvestment of all dividends and distributions) versus the Fund’s benchmark index.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The Fund’s total annual operating expenses, including underlying fund expenses, for the Select Allocation Fund are 1.54%. Performance results reflect a contractual fee waiver by the investment adviser as described in the prospectus of the Fund. For performance information current to the most recent month-end, please call toll-free 1-866-811-0225.
“S&P 500 Index”, a registered trademark of McGraw-Hill Co., Inc., is a market capitalization-weighted index of 500 widely held common stocks. Investors cannot invest directly in an index or benchmark.
The Russell 3000® Index is a market-capitalization-weighted index that measures 98% of the investable U.S. equity market.
CLS Investments, LLC (the “Adviser”) has elected to change the benchmark for the Fund. Going forward, the Russell 3000 Index will replace the S&P 500 Index as the Fund’s primary broad-based index. The S&P 500 Index will continue to be shown with the risk budget benchmark information for a period of one year.
* | Performance of the risk budget benchmark shows how the Fund’s performance compares to an index with similar investment strategies and underlying holdings as the Fund. The risk budget benchmark consists of (i) 80% of a blended benchmark consisting of 80% of the Russell 3000® Index and 20% of the MSCI ACWI (ex-US), and (ii) 20% of the 1-3 month Treasury Bill index. |
10 |
AdvisorOne Funds Semi-Annual Report | Descartes Fund - Portfolio Summary |
Portfolio Commentary | |
Descartes returned 4.8% over the prior six months. The Fund has a Risk Budget of 90 (i.e., over time is approximately 90% as risky as a diversified stock portfolio consisting of 80% domestic equities and 20% international equities). The Fund slightly trailed its benchmark during this time frame, primarily due to its allocation to international securities.
The Fund’s largest portfolio tilts are focused in technology and healthcare, both of which correspond to CLS’s Investment Themes. These tilts emphasize undervalued, high- quality sectors, which focus on innovative companies.
The Fund is also tilted towards domestic large cap securities, and as a result, has lower allocations to domestic small caps. Large cap securities are more attractively valued and have a better risk/return proposition than smaller companies.
Trading in recent months was focused on repositioning fixed income and commodity exposure, as well as increasing the allocation to domestic large cap securities.
Turnover for the Fund over the last six months was 10%.
| |
*Based on total net asset value as of October 31, 2014. Portfolio holdings are subject to change and should not be a recommendation to buy individual securities. Concentrating in a small number of investments increases the Fund’s risk because each investment has a greater effect on the Fund’s performance.
You cannot invest directly in an index or benchmark.
| |
Portfolio Composition* | |
![]() | |
Top Ten Portfolio Holdings* | *Percentages based on Net Assets | |
iShares - MSCI USA Minimum Volatility ETF | 13.42% | |
This Fund seeks to track the investment results of an index composed of U.S. equities. | ||
iShares - Russell 1000 Value ETF | 12.77% | |
This Fund seeks investment results that correspond with the performance of the large-capitalization sector of the U.S. equity market. | ||
iShares - S&P 500 Value ETF | 12.46% | |
This Fund seeks investment results that correspond generally to the price and yield performance of the U.S. large-cap value stocks. | ||
iShares - Russell 1000 Growth ETF | 12.09% | |
This Fund seeks investment results that correspond with the large-capitalization growth sector of the U.S. equity market. | ||
iShares - North American Tech-Software ETF | 9.46% | |
This Fund seeks investment results that correspond generally to the price and yield of the S&P North American Technology Software Index. | ||
iShares - U.S. Healthcare ETF | 8.08% | |
This Fund seeks to track the investment results of an index composed of U.S. equities in the healthcare sector. | ||
Guggenheim S&P 500 Pure Value ETF | 7.83% | |
This Fund seeks to replicate as closely as possible, before fees and expenses, the performance of the S&P 500 Pure Value Index. | ||
iShares - MSCI USA Quality Factor ETF | 7.51% | |
This Fund seeks to track the investment results of an index that measures the performance of U.S. large- and mid-capitalization stocks as identified through three fundamental variables: return on equity, earnings variability and debt-to-equity. | ||
iShares - S&P 100 ETFF | 7.08% | |
The iShares S&P 100 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses. | ||
Vanguard Mega Cap Growth ETF | 4.56% | |
This Fund seeks to track the performance of a benchmark index that measures the investment return of the largest-capitalization growth stocks in the U.S. |
11 |
AdvisorOne Funds Semi-Annual Report | Descartes Fund - Performance Update |
Annualized Total Returns as of October 31, 2014
Since | Inception | ||||||
6 Months* | 1 Year | 3 Year | 5 Year | 10 Year | Inception | Date | |
Class N Shares1 | 4.83% | 9.91% | 12.37% | 11.60% | N/A | 5.16% | 4/19/06 |
* | Figure is not annualized. |
1 | Class N Shares are not subject to an initial sales charge or a CDSC. |
Growth of a $10,000 Investment
This chart illustrates a comparison of a hypothetical investment of $10,000 in the Descartes Fund (assuming reinvestment of all dividends and distributions) versus the Fund’s benchmark index.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The Fund’s total annual operating expenses, including underlying fund expenses, for the Decartes Fund are 1.65%. Performance results reflect a contractual fee waiver by the investment adviser as described in the prospectus of the Fund. For performance information current to the most recent month-end, please call toll-free 1-866-811-0225.
The Russell 3000® Index is a market-capitalization-weighted index that measures 98% of the investable U.S. equity market.
CLS Investments, LLC (the “Adviser”) has elected to change the benchmark for the Fund. Going forward, the Russell 3000 Index will replace the S&P 500 Index as the Fund’s primary broad-based index. The S&P 500 Index will continue to be shown with the risk budget benchmark information for a period of one year.
* | Performance of the risk budget benchmark shows how the Fund’s performance compares to an index with similar investment strategies and underlying holdings as the Fund. The risk budget benchmark consists of (i) 90% of a blended benchmark consisting of 80% of the Russell 3000® Index and 20% of the MSCI ACWI (ex-US), and (ii) 10% of the 1-3 month Treasury Bill index. |
12 |
AdvisorOne Funds Semi-Annual Report | Liahona Fund - Portfolio Summary |
Portfolio Commentary | |
Liahona generated a 3.8% total return for the six months ending October 31, 2014. The Fund has a Risk Budget of 70 (i.e., over time is approximately 70% as risky as a diversified stock portfolio consisting of 80% domestic equities and 20% international equities). The Fund barely trailed its benchmark during this time frame, primarily due to its allocation to international securities. | |
During the six months ending October 31, 2014, the Fund emphasized equity allocations to technology, growth, healthcare, Asia, and Europe. In order to accommodate these positions small caps, consumer discretionary, and Latin America received allocations below the benchmark. The Fund’s bond positioning emphasized short-term bonds over intermediate and long-term bonds. | |
Redemptions from the Fund contributed to high levels of trading in September and October, eliminating most of the Fund’s positions. Prior to these two months, trading changes were moderate. New positions in dividend-paying technology stocks and currency-hedged international were established over the period, although the technology position was later sold. | |
Turnover for the Fund over the last six months was 33%. | |
*Based on total net asset value as of October 31, 2014. Portfolio holdings are subject to change and should not be a recommendation to buy individual securities. Concentrating in a small number of investments increases the Fund’s risk because each investment has a greater effect on the Fund’s performance. | |
You cannot invest directly in an index or benchmark. | |
Portfolio Composition* | |
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Top Ten Portfolio Holdings* | *Percentages based on Net Assets | |
iShares - 1-3 Year Treasury Bond ETF | 14.52% | |
This Fund seeks to approximate the total rate of return that correspond generally to the price and yield performance, before fees and expenses, of the short-term sector of the United States Treasury market as defined by the U.S. 1-3 Year Treasury Bond Index. | ||
iShares - MSCI EMU ETF | 9.43% | |
The Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the European Monetary Union (“EMU”) markets, as measured by the MSCI EMU Index. | ||
Deutsche X-trackers MSCI EAFE Hedged Equity ETF | 7.74% | |
This Fund seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE US Dollar Hedged Index. | ||
PowerShares S&P International Developed Low Volatility Portfolio | 7.55% | |
This Fund seeks to track the performance of the S&P BMI International Developed Low Volatility Index ND. | ||
iShares - MSCI All Country Asia ex Japan ETF | 7.55% | |
This Fund seeks to track the investment results of an index composed of Asian equities, excluding Japan. | ||
BLDRS Emerging Markets 50 ADR Index Fund | 6.32% | |
This Fund seeks to provide investment results that correspond generally, before fees and expenses, to the price and yield performance of the BNY Mellon Emerging Markets 50 ADR Index. | ||
WisdomTree International SmallCap Dividend Fund | 5.17% | |
This Fund seeks investment results that closely correspond to the price and yield performance, before fees and expenses, of the WisdomTree International SmallCap Dividend Index. | ||
iShares MSCI EAFE Minimum Volatility ETF | 4.67% | |
This Fund seeks to track the investment results of an index composed of developed market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed equity markets, excluding the U.S. and Canada. | ||
SPDR S&P BRIC 40 ETF | 3.80% | |
This Fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® BRIC 40® Index. | ||
SPDR S&P Emerging Asia Pacific ETF | 3.79% | |
This Fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® Asia Pacific Emerging BMI Index. |
13 |
AdvisorOne Funds Semi-Annual Report | Liahona Fund - Performance Update |
Annualized Total Returns as of October 31, 2014
Since | Inception | ||||||
6 Months* | 1 Year | 3 Year | 5 Year | 10 Year | Inception | Date | |
Class N Shares1 | 3.77% | 7.22% | 9.27% | 9.16% | N/A | 3.96% | 4/19/06 |
* | Figure is not annualized. |
1 | Class N Shares are not subject to an initial sales charge or a CDSC. |
Growth of a $10,000 Investment
This chart illustrates a comparison of a hypothetical investment of $10,000 in the Liahona Fund (assuming reinvestment of all dividends and distributions) versus the Fund’s benchmark index.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The Fund’s total annual operating expenses, including underlying fund expenses, for the Liahona Fund are 1.66%. Performance results reflect a contractual fee waiver by the investment adviser as described in the prospectus of the Fund. For performance information current to the most recent month-end, please call toll-free 1-866-811-0225.
The Russell 3000® Index is a market-capitalization-weighted index that measures 98% of the investable U.S. equity market.
CLS Investments, LLC (the “Adviser”) has elected to change the benchmark for the Fund. Going forward, the Russell 3000 Index will replace the S&P 500 Index as the Fund’s primary broad-based index. The S&P 500 Index will continue to be shown with the risk budget benchmark information for a period of one year.
* | Performance of the risk budget benchmark shows how the Fund’s performance compares to an index with similar investment strategies and underlying holdings as the Fund. The risk budget benchmark consists of (i) 70% of a blended benchmark consisting of 80% of the Russell 3000® Index and 20% of the MSCI ACWI (ex-US), and (ii) 30% of the 1-3 month Treasury Bill index. |
14 |
AdvisorOne Funds Semi-Annual Report | Enhanced Income Fund - Portfolio Summary |
Portfolio Commentary | |
Enhanced Income generated a total return of 1.2% for the six months ending October 31, 2014. The Fund trailed its benchmark during this time frame, primarily driven by weakness in international holdings versus U.S. equities. Sector positioning was positive, with an emphasis to technology. | |
Covered call income was positive for the six months ending in October. Volatility picked up August through October offering a stronger opportunity for generating covered call income. Covered call writing was especially beneficial during the month of October, when volatility spiked and the equity market declined. | |
Allocations were increased to energy, health care and industrials. Also our emphasis on technology continues. U.S. exposure was distributed further toward international stocks with an emphasis on Canada, Latin America, and Asia Emerging. | |
Turnover for the Fund over the last six months was 19%. | |
*Based on total net asset value as of October 31, 2014. Portfolio holdings are subject to change and should not be a recommendation to buy individual securities. Concentrating in a small number of investments increases the Fund’s risk because each investment has a greater effect on the Fund’s performance. | |
You cannot invest directly in an index or benchmark. | |
Portfolio Composition* | |
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Top Ten Portfolio Holdings* | *Percentages based on Net Assets | |
SPDR - S&P 500 ETF Trust | 20.42% | |
This unit investment trust consists of a portfolio representing all 500 stocks in the S&P 500 Index. | ||
ProShares Short Dow30 | 13.18% | |
ProShares Short Dow30 seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the Dow Jones Industrial Average Index. | ||
SPDR Dow Jones Industrial Average ETF Trust | 12.77% | |
SPDR Dow Jones Industrial Average ETF seeks to provide investment results that, before expenses, generally correspond to the price and yield performance of the Dow Jones Industrial Average. | ||
ProShares - Short S&P500 | 12.69% | |
The Fund seeks daily investment results that correspond to the inverse of the daily performance of the S&P 500 index. | ||
iShares - MSCI EAFE ETF | 7.09% | |
This Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the European, Austral-asian and Far Eastern markets, as measured by the MSCI EAFE Index. | ||
iShares - Core S&P 500 ETF | 6.05% | |
This Fund seeks investment results that correspond with the performance of the large-capitalization sector of the U.S. equity market. | ||
PowerShares - QQQ Trust Series 1 | 5.70% | |
This Fund seeks to include 100 of the largest, most innovative non-financial companies that trade on the NASDAQ Stock Market, based on market capitalization. | ||
iShares - Russell 2000 ETF | 4.73% | |
This Fund seeks investment results that correspond with the small-capitalization sector of the U.S. equity market. | ||
ProShares Short Russell2000 | 3.78% | |
ProShares Short Russell2000 seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the Russell 2000® Index. | ||
Vanguard Health Care ETF | 3.27% | |
This Fund seeks to track the investment results of an index composed of U.S. equities in the healthcare sector. |
15 |
AdvisorOne Funds Semi-Annual Report | Enhanced Income Fund - Performance Update |
Annualized Total Returns as of October 31, 2014
Since | Inception | |||||||||||||
6 Months* | 1 Year | 3 Year | 5 Year | 10 Year | Inception | Date | ||||||||
Class N Shares1 | 1.15% | 4.18% | 2.83% | N/A | N/A | 5.20% | 10/1/09 |
* | Figure is not annualized. |
1 | Class N Shares are not subject to an initial sales charge or a CDSC. |
Growth of a $10,000 Investment
This chart illustrates a comparison of a hypothetical investment of $10,000 in the Enhanced Income Fund (assuming reinvestment of all dividends and distributions) versus the Fund’s benchmark index.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The Fund’s total annual operating expenses, including underlying fund expenses, for the Enhanced Income Fund are 1.79%. Performance results reflect a contractual fee waiver by the investment adviser as described in the prospectus of the Fund. For performance information current to the most recent month-end, please call toll-free 1-866-811-0225.
“S&P 500 Index”, a registered trademark of McGraw-Hill Co., Inc., is a market capitalization-weighted index of 500 widely held common stocks. Investors cannot invest directly in an index or benchmark.
The Russell 3000® Index is a market-capitalization-weighted index that measures 98% of the investable U.S. equity market.
CLS Investments, LLC (the “Adviser”) has elected to change the benchmark for the Fund. Going forward, the Russell 3000 Index will replace the S&P 500 Index as the Fund’s primary broad-based index. The S&P 500 Index will continue to be shown with the risk budget benchmark information for a period of one year.
* | Performance of the risk budget benchmark shows how the Fund’s performance compares to an index with similar investment strategies and underlying holdings as the Fund. The risk budget benchmark consists of (i) 40% of a blended benchmark consisting of 80% of the Russell 3000® Index and 20% of the MSCI ACWI (ex-US), and (ii) 60% of the 1-3 month Treasury Bill index. |
16 |
AdvisorOne Funds Semi-Annual Report | Flexible Income Fund - Portfolio Summary |
Portfolio Commentary | |
Flexible Income generated a total return of 0.98% for the six months ending October 31, 2014. While Flexible Income’s portfolio continues to accept credit risk, we slightly reduced our exposure to high credit bonds in favor of higher quality securities. Further, we increased our exposure to floating rate securities in anticipation of the Federal Reserve raising short term interest rates at some point in 2015. | |
Although the economic landscape in the U.S. was favorable over the past six months, long-term interest rates fell as growth in other countries continued to weaken and there were no signs of imminent inflation to prompt the Fed to think about raising rates sooner than anticipated. Duration in the Fund remained steady throughout the period, but remains shorter than the benchmark. | |
Although we continue to expect somewhat subpar growth, we believe it will still allow for short-term rates to grind higher and bond returns to be consistent with the income they generate going forward. Additionally, we continue to maintain a modest equity exposure in the Fund to help drive performance relative to the benchmark. | |
Turnover for the Fund over the last six months was 1%. | |
*Based on total net asset value as of October 31, 2014. Portfolio holdings are subject to change and should not be a recommendation to buy individual securities. Concentrating in a small number of investments increases the Fund’s risk because each investment has a greater effect on the Fund’s performance. | |
You cannot invest directly in an index or benchmark. | |
Portfolio Composition* | |
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Top Ten Portfolio Holdings* | *Percentages based on Net Assets | |
iShares - Floating Rate Bond ETF | 6.84% | |
This Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Barclay’s U.S. Floating Rate Note <5 Years Index. | ||
PIMCO Enhanced Short Maturity Active Exchange-Traded Fund | 6.25% | |
This Fund seeks maximum current income, consistent with preservation of capital and daily liquidity. | ||
PowerShares Senior Loan Portfolio | 5.40% | |
This Fund seeks investment results that generally correspond to the price and yield of S&P/LSTA U.S. Leveraged Loan 100 Index. | ||
iShares Core U.S. Aggregate Bond ETF | 5.08% | |
This Fund seeks to track the investment results of an index composed of the total U.S. investment-grade bond market. | ||
iShares - Intermediate Credit Bond ETF | 5.06% | |
This Fund seeks results that correspond generally to the price and yield performance of the investment grade credit sector of the U.S. bond market. | ||
iShares iBoxx $High Yield Corporate Bond ETF | 4.25% | |
This Fund seeks investment results that correspond generally to the price and yield performance of the U.S. dollar high yield corporate bond market as defined by the iBoxx $Liquid High Yield Index. | ||
Vanguard Intermediate-Term Corporate Bond ETF | 4.17% | |
This Fund seeks to track the performance of a market-weighted corporate bond index with an intermediate-term dollar-weighted average maturity. | ||
Vanguard Short-Term Corporate Bond ETF | 4.10% | |
This Fund seeks to track the performance of a market-weighted corporate bond index with a short-term dollar-weighted average maturity. | ||
Vanguard Total Bond Market ETF | 3.88% | |
This Fund seeks to track the performance of a broad, market-weighted bond index. | ||
SPDR Barclays Short Term High Yield Bond ETF | 3.86% | |
This Fund seeks to provide investment results that correspond generally to the price and yield performance of the Barclays US High Yield 350mn Cash Pay 0-5 Yr 2% Capped Index. |
17 |
AdvisorOne Funds Semi-Annual Report | Flexible Income Fund - Performance Update |
Annualized Total Returns as of October 31, 2014
Since | Inception | |||||||||||||
6 Months* | 1 Year | 3 Year | 5 Year | 10 Year | Inception | Date | ||||||||
Class N Shares1 | 1.60% | 3.29% | 3.01% | N/A | N/A | 3.83% | 10/1/09 |
* | Figure is not annualized. |
1 | Class N Shares are not subject to an initial sales charge or a CDSC. |
Growth of a $10,000 Investment
This chart illustrates a comparison of a hypothetical investment of $10,000 in the Flexible Income Fund (assuming reinvestment of all dividends and distributions) versus the Fund’s benchmark index.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The returns shown do not eflect taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The Fund’s total annual operating expenses, including underlying fund expenses, for the Flexible Income Fund are 1.26%. Performance results reflect a contractual fee waiver by the investment adviser as described in the prospectus of the Fund. For performance information current to the most recent month-end, please call toll-free 1-866-811-0225.
“S&P 500 Index”, a registered trademark of McGraw-Hill Co., Inc., is a market capitalization-weighted index of 500 widely held common stocks. Investors cannot invest directly in an index or benchmark.
The Russell 3000® Index is a market-capitalization-weighted index that measures 98% of the investable U.S. equity market.
The Barclays Aggregate Bond Index is a market-capitalization-weighted index that covers the USD-denominated, investment-grade (rated Baa3 or above by Moody’s), fixed-rate, and taxable areas of the bond market.
CLS Investments, LLC (the “Adviser”) has elected to change the benchmark for the Fund. Going forward, the Russell 3000 Index will replace the S&P 500 Index as the Fund’s primary broad-based index. The S&P 500 Index will continue to be shown with the risk budget benchmark information for a period of one year.
* | Performance of the risk budget benchmark shows how the Fund’s performance compares to an index with similar investment strategies and underlying holdings as the Fund. The risk budget benchmark consists of (i) 20% of a blended benchmark consisting of 80% of the Russell 3000® Index and 20% of the MSCI ACWI (ex-US), and (ii) 80% of the 1-3 month Treasury Bill index. |
18 |
AdvisorOne Funds Semi-Annual Report | Select Appreciation Fund - Portfolio Summary |
Portfolio Commentary | |
Select Appreciation returned 1.9% over the prior six months. The Fund has a Risk Budget of 110 (i.e., over time has 110% of the risk of a diversified stock portfolio consisting of 80% domestic equities and 20% international equities). The Fund trailed its benchmark during this time frame, primarily due to its allocation to international securities and smaller companies. | |
Moving forward, the Fund’s notable positions include a tilt towards international equities, with a focus on developed European and Asian equities. With expectations and valuations low for European equities, and improving economic growth, this is the Fund’s largest portfolio tilt. Low valuations, improving economic momentum, and increasing liquidity in both developed and emerging Asian economies has warranted an increased allocation by the Fund. | |
Among domestic sectors, the largest portfolio tilts are focused on technology and healthcare. Both of which correspond to CLS’s Investment Themes. These tilts emphasize undervalued, high-quality sectors that focus on innovative companies. To maintain the Fund’s diversified nature, specific subsectors such as medical devices, pharmaceuticals, and semiconductors were emphasized. | |
Recent trades increased the allocation to the attractive international regions, reduced domestic sectors with higher valuations, and increased the Fund’s weight towards larger companies. | |
Turnover for the Fund over the last six months was 12% | |
*Based on total net asset value as of October 31, 2014. Portfolio holdings are subject to change and should not be a recommendation to buy individual securities. Concentrating in a small number of investments increases the Fund’s risk because each investment has a greater effect on the Fund’s performance. | |
You cannot invest directly in an index or benchmark. |
Portfolio Composition* | |
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Top Ten Portfolio Holdings* | *Percentages based on Net Assets | |
Market Vectors Morningstar Wide Moat ETF | 7.79% | |
This Fund is a rules-based, equal-weighted index intended to offer exposure to the 20 most attractively priced companies with sustainable competitive advantages. | ||
Guggenheim S&P 500 Equal Weight ETF | 7.13% | |
This Fund seeks to replicate as closely as possible the performance of the S&P 500 Equal Weight Index. | ||
iShares - MSCI ACWI ETF | 6.25% | |
This Fund seeks to track the investment results of an index composed of large and mid-capitalization developed and emerging market equities. | ||
First Trust NASDAQ Technology Dividend Index Fund | 6.07% | |
This Fund seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the NASDAQ Technology Dividend IndexSM. | ||
iShares - International Select Dividend ETF | 5.58% | |
This Fund seeks investment results that correspond generally to the price and yield performance of the Dow Jones EPAC Select Dividend Index. | ||
WisdomTree Europe SmallCap Dividend Fund | 5.55% | |
The Fund seeks investment results that closely correspond to the price and yield performance, before fees and expenses, of the WisdomTree Europe SmallCap Dividend Index. | ||
PowerShares Dynamic Market Portfolio | 5.41% | |
This Fund seeks investment results that generally correspond to the price and yield of the Dynamic Market IntellidexSM Index. | ||
iShares - U.S. Medical Devices ETF | 4.75% | |
This Fund seeks to track the investment results of an index composed of U.S. equities in the medical devices sector. | ||
ProShares Large Cap Core Plus | 4.37% | |
This Fund seeks investment results that track the performance of the Credit Suisse 130/30 Large Cap Index. | ||
PowerShares Dynamic Pharmaceuticals Portfolio | 4.29% | |
This Fund seeks investment results that gener ally correspond to the price and yield of the Dynamic Pharmaceuticals IntellidexSM Index. |
19 |
AdvisorOne Funds Semi-Annual Report | Select Appreciation Fund - Performance Update |
Annualized Total Returns as of October 31, 2014
Since | Inception | |||||||||||||
6 Months* | 1 Year | 3 Year | 5 Year | 10 Year | Inception | Date | ||||||||
Class N Shares1 | 1.93% | 7.96% | 14.35% | 11.93% | N/A | 11.61% | 10/1/09 |
* | Figure is not annualized. |
1 | Class N Shares are not subject to an initial sales charge or a CDSC. |
Growth of a $10,000 Investment
This chart illustrates a comparison of a hypothetical investment of $10,000 in the Select Appreciation Fund (assuming reinvestment of all dividends and distributions) versus the Fund’s benchmark index.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The Fund’s total annual operating expenses, including underlying fund expenses, for the Select Appreciation Fund are 1.92%. Performance results reflect a contractual fee waiver by the investment adviser as described in the prospectus of the Fund. For performance information current to the most recent month-end, please call toll-free 1-866-811-0225.
“S&P 500 Index”, a registered trademark of McGraw-Hill Co., Inc., is a market capitalization-weighted index of 500 widely held common stocks. Investors cannot invest directly in an index or benchmark.
The Russell 3000® Index is a market-capitalization-weighted index that measures 98% of the investable U.S. equity market.
CLS Investments, LLC (the “Adviser”) has elected to change the benchmark for the Fund. Going forward, the Russell 3000 Index will replace the S&P 500 Index as the Fund’s primary broad-based index. The S&P 500 Index will continue to be shown with the risk budget benchmark information for a period of one year.
* | Performance of the risk budget benchmark shows how the Fund’s performance compares to an index with similar investment strategies and underlying holdings as the Fund. The risk budget benchmark consists of (i) 110% of a blended benchmark consisting of 80% of the Russell 3000® Index and 20% of the MSCI ACWI (ex-US). |
20 |
AdvisorOne Funds Semi-Annual Report | Shelter Fund - Portfolio Summary |
Portfolio Commentary | |
Shelter generated a 4.8% total return for the six months ending October 31, 2014. The Fund beat its benchmark by 0.7%, primarily due to its above benchmark stock allocation during a period of positive market performance. The Fund also benefited from positive performance from the lower risk stock allocations used when the portfolio becomes more defensive. | |
During the six months ending October 31, 2014, markets were fairly calm and there were only two moves designed to add protection to the portfolio. The first one, in late July, was short-lived and had a minimal effect on the portfolio. The second one, beginning in early October, triggered a greater shift towards protected assets. As of October 31st the portfolio is 25% invested in low and minimum volatility positions in order to reduce risk. | |
Over the period, the Fund emphasized growth stocks relative to value stocks. The Fund also reduced its position in small and mid-cap stocks in favor of large cap stocks and international stocks. | |
Turnover for the Fund over the last six months was 39%. | |
*Based on total net asset value as of October 31, 2014. Portfolio holdings are subject to change and should not be a recommendation to buy individual securities. Concentrating in a small number of investments increases the Fund’s risk because each investment has a greater effect on the Fund’s performance. | |
You cannot invest directly in an index or benchmark. | |
Portfolio Composition* | |
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Top Ten Portfolio Holdings* | *Percentages based on Net Assets | |
iShares - S&P 500 Growth ETF | 17.74% | |
This Fund seeks investment results that correspond with performance of the large- capitalization growth sector of the U.S. equity market. | ||
Vanguard Growth ETF | 16.36% | |
This Fund is an exchange-traded share class of Vanguard Growth Index Fund, which is designed to track the performance of the MSCI US Prime Market Growth Index. | ||
iShares - S&P 500 Value ETF | 15.60% | |
This Fund seeks investment results that correspond generally to the price and yield performance of U.S. large-cap value stocks. | ||
Vanguard Value ETF | 14.73% | |
This Fund seeks to track the performance of a benchmark index that measures the investment return of large-capitalization value stocks. | ||
iShares - MSCI USA Minimum Volatility ETF | 9.80% | |
This Fund seeks to track the investment results of an index composed of developed market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed equity markets, excluding the U.S. and Canada. | ||
iShares - MSCI All Country World Minimum Volatility ETF | 9.69% | |
This Fund seeks to track the investment results of an index composed of developed and emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed and emerging equity markets. | ||
iShares - Core S&P 500 ETF | 6.24% | |
This Fund seeks investment results that correspond with the performance of the large-capitalization sector of the U.S. equity market. | ||
PowerShares S&P 500 Low Volatility Portfolio | 5.09% | |
This Fund seeks investment results that generally correspond to the price and yield of the S&P 500 Low Volatility Index. | ||
Deutsche X-trackers MSCI Europe Hedged Equity ETF | 2.84% | |
This Fund seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI Europe US Dollar Hedged Index. |
21 |
AdvisorOne Funds Semi-Annual Report | Shelter Fund - Performance Update |
Annualized Total Returns as of October 31, 2014
Since | Inception | |||||||||||||
6 Months* | 1 Year | 3 Year | 5 Year | 10 Year | Inception | Date | ||||||||
Class N Shares1 | 4.83% | 11.46% | 9.08% | N/A | N/A | 5.61% | 12/30/09 |
* | Figure is not annualized. |
1 | Class N Shares are not subject to an initial sales charge or a CDSC. |
Growth of a $10,000 Investment
This chart illustrates a comparison of a hypothetical investment of $10,000 in the Shelter Fund (assuming reinvestment of all dividends and distributions) versus the Fund’s benchmark index.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The Fund’s total annual operating expenses, including underlying fund expenses, for the Shelter Fund are 1.55%. Performance results reflect a contractual fee waiver by the investment adviser as described in the prospectus of the Fund. For performance information current to the most recent month-end, please call toll-free 1-866-811-0225.
“S&P 500 Index”, a registered trademark of McGraw-Hill Co., Inc., is a market capitalization-weighted index of 500 widely held common stocks. Investors cannot invest directly in an index or benchmark.
The Russell 3000® Index is a market-capitalization-weighted index that measures 98% of the investable U.S. equity market.
CLS Investments, LLC (the “Adviser”) has elected to change the benchmark for the Fund. Going forward, the Russell 3000 Index will replace the S&P 500 Index as the Fund’s primary broad-based index. The S&P 500 Index will continue to be shown with the risk budget benchmark information for a period of one year.
The MSCI ACWI (ex-US) is a market-capitalization weighted index that provides a broad measure of stock performance throughout the world, with the exception of U.S.-based equities. The index includes both developed and emerging markets.
* | Performance of the risk budget benchmark shows how the Fund’s performance compares to an index with similar investment strategies and underlying holdings as the Fund. The risk budget benchmark consists of (i) 75% of a blended benchmark consisting of 80% of the Russell 3000® Index and 20% of the MSCI ACWI (ex-US), and (ii) 25% of the 1-3 month Treasury Bill index. |
22 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Amerigo Fund (Unaudited) |
October 31, 2014 |
Shares | Value | |||||||
Equity Funds - 97.20% | ||||||||
Balanced Funds - 0.46% | ||||||||
Vanguard Consumer Staples ETF + | 22,000 | $ | 2,680,040 | |||||
Commodity Funds - 2.72% | ||||||||
PowerShares DB Commodity Index Tracking Fund * | 125,000 | 2,790,000 | ||||||
PowerShares DB Agriculture Fund * + | 502,000 | 12,881,320 | ||||||
15,671,320 | ||||||||
Developed International - 22.94% | ||||||||
iShares S&P Europe 350 Index ETF + | 355,000 | 15,651,950 | ||||||
iShares MSCI EAFE ETF + | 5,453,000 | 34,871,935 | ||||||
iShares MSCI EMU ETF | 297,100 | 11,111,540 | ||||||
iShares MSCI Italy Capped ETF + | 96,000 | 1,430,400 | ||||||
PowerShares International Dividend Achievers Portfolio + | 1,441,498 | 26,465,903 | ||||||
Vanguard FTSE All-World ex-US ETF + | 383,500 | 18,921,890 | ||||||
Vanguard FTSE Europe ETF | 371,500 | 20,124,155 | ||||||
Vanguard FTSE Pacific ETF + | 19,000 | 1,161,280 | ||||||
WisdomTree Global ex-U.S. Dividend Growth Fund + | 52,000 | 2,662,920 | ||||||
132,401,973 | ||||||||
Emerging Markets - 11.80% | ||||||||
iShares Core MSCI Emerging Markets ETF + | 542,000 | 27,333,060 | ||||||
iShares MSCI All Country Asia ex Japan ETF + | 170,000 | 10,691,300 | ||||||
iShares MSCI Emerging Markets ETF | 128,700 | 5,424,705 | ||||||
WisdomTree Emerging Markets Equity Income Fund | 518,935 | 24,654,602 | ||||||
68,103,667 | ||||||||
Global Equity - 4.96% | ||||||||
FlexShares Global Upstream Natural Resources Index Fund | 180,000 | 5,968,800 | ||||||
iShares Global 100 ETF + | 292,200 | 22,657,188 | ||||||
28,625,988 | ||||||||
Large Cap Core - 20.39% | ||||||||
Consumer Staples Select Sector SPDR Fund + | 320,000 | 14,947,200 | ||||||
Fidelity MSCI Information Technology Index ETF + | 71,000 | 2,177,570 | ||||||
Health Care Select Sector SPDR Fund | 218,600 | 14,705,222 | ||||||
Powershares FTSE RAFI US 1000 Portfolio + | 32,000 | 2,869,760 | ||||||
PowerShares S&P 500 High Quality Portfolio + | 100,000 | 2,244,000 | ||||||
Vanguard Dividend Appreciation ETF | 683,016 | 53,951,434 | ||||||
Vanguard Large-Cap ETF | 84,600 | 7,833,960 | ||||||
Vanguard Mega Cap ETF + | 275,000 | 18,977,750 | ||||||
117,706,896 | ||||||||
Large Cap Growth - 26.30% | ||||||||
iShares MSCI USA Momentum Factor ETF + | 52,000 | 3,450,720 | ||||||
iShares MSCI USA Quality Factor ETF | 543,840 | 33,283,008 | ||||||
iShares Russell 1000 Growth ETF | 327,700 | 30,790,692 | ||||||
iShares Russell Top 200 Growth ETF + | 204,500 | 10,180,010 | ||||||
Powershares QQQ Trust Series 1 | 310,000 | 31,434,000 | ||||||
Technology Select Sector SPDR Fund | 865,000 | 35,067,100 | ||||||
Vanguard Information Technology ETF | 75,000 | 7,649,250 | ||||||
151,854,780 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
23 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Amerigo Fund (Unaudited)(Continued) |
October 31, 2014 |
Shares | Value | |||||||
Large Cap Value - 7.63% | ||||||||
SPDR Energy Select Sector Fund + | 275,000 | $ | 24,040,500 | |||||
SPDR Financial Select Sector Fund | 840,100 | 20,027,984 | ||||||
44,068,484 | ||||||||
Total Equity Funds (cost $464,750,604) | 561,113,148 | |||||||
Money Market Funds - 2.88% | ||||||||
Short-Term Cash - 2.88% | ||||||||
Federated Prime Cash Obligations Fund, 0.04% ** | 16,617,144 | 16,617,144 | ||||||
Total Money Market Funds (cost $16,617,144) | 16,617,144 | |||||||
Collateral for Securities Loaned - 12.96% | ||||||||
BNY Mellon Overnight Government Fund | 24,435,089 | 24,435,089 | ||||||
Milestone Treasury Obligations Fund Institutional Class | 50,000,000 | 50,000,000 | ||||||
U.S. Treasury Notes: 0.250%-4.250%, 07/15/15 - 5/15/24 | 387,308 | 387,308 | ||||||
Total Collateral for Securities Loaned (cost $74,822,397) | 74,822,397 | |||||||
Total Investments (cost $556,190,145) - 113.04% | $ | 652,552,689 | ||||||
Liabilities Less Other Assets - Net - (13.04)% | (75,257,362 | ) | ||||||
NET ASSETS - 100.00% | $ | 577,295,327 |
* | Non-income producing security. |
+ | All or a portion of this security is on loan. Total loaned securities had a value of $73,101,556 at October 31, 2014. |
** | Money Market Fund; Interest rate reflects seven-day effective yield on October 31, 2014. |
EAFE - Europe, Australasia, Far East
EMU - European Monetary Union
ETF - Exchange Traded Fund
FTSE - Financial Times Stock Exchange
MSCI - Morgan Stanley Capital International
SPDR - Standard & Poors’ Depositary Receipts
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
24 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Clermont Fund (Unaudited) |
October 31, 2014 |
Shares | Value | |||||||
Bond Funds - 36.77% | ||||||||
Intermediate/Long-Term Bonds - 16.16% | ||||||||
iShares 20+ Year Treasury Bond ETF + | 19,000 | $ | 2,265,750 | |||||
iShares Floating Rate Bond ETF | 442,800 | 22,454,388 | ||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF + | 70,800 | 8,449,272 | ||||||
PIMCO Total Return Active Exchange-Traded Fund + | 311,168 | 33,873,749 | ||||||
Vanguard Intermediate-Term Corporate Bond ETF | 22,500 | 1,946,700 | ||||||
68,989,859 | ||||||||
International Bond - 5.11% | ||||||||
iShares JP Morgan USD Emerging Markets Bond ETF + | 147,399 | 16,903,717 | ||||||
PIMCO Global Advantage Inflation-Linked Bond Active ETF | 100,000 | 4,894,990 | ||||||
21,798,707 | ||||||||
Short-Term Bonds - 15.50% | ||||||||
iShares TIPS Bond ETF + | 265,000 | 29,966,200 | ||||||
PIMCO Enhanced Short Maturity Active ETF + | 236,100 | 23,916,930 | ||||||
Schwab U.S. TIPs ETF * + | 35,000 | 1,912,050 | ||||||
SPDR Nuveen Barclays Short Term Municipal Bond ETF | 65,000 | 1,586,650 | ||||||
SPDR Barclays Short Term Corporate Bond ETF + | 286,099 | 8,797,544 | ||||||
66,179,374 | ||||||||
Total Bond Funds (cost $154,767,349) | 156,967,940 | |||||||
Equity Funds - 60.57% | ||||||||
Alternative - 0.83% | ||||||||
WisdomTree Managed Futures Strategy Fund * + | 81,932 | 3,540,282 | ||||||
Commodity Funds - 3.23% | ||||||||
Market Vectors Junior Gold Miners ETF * | 104,000 | 2,544,880 | ||||||
PowerShares DB Agriculture Fund * + | 156,608 | 4,018,561 | ||||||
PowerShares DB Commodity Index Tracking Fund * + | 323,333 | 7,216,792 | ||||||
13,780,233 | ||||||||
Developed International - 13.46% | ||||||||
iShares MSCI EAFE Minimum Volatility ETF + | 180,888 | 11,622,054 | ||||||
iShares MSCI EMU ETF + | 133,100 | 4,977,940 | ||||||
PowerShares International Dividend Achievers Portfolio + | 908,700 | 16,683,732 | ||||||
Vanguard FTSE All-World ex-US ETF + | 145,000 | 7,154,300 | ||||||
Vanguard FTSE Europe ETF | 290,000 | 15,709,300 | ||||||
WisdomTree Global ex-U.S. Dividend Growth Fund | 26,000 | 1,331,460 | ||||||
57,478,786 | ||||||||
Emerging Markets - 5.64% | ||||||||
iShares Core MSCI Emerging Markets ETF + | 66,000 | 3,328,380 | ||||||
iShares MSCI All Country Asia ex Japan ETF + | 127,000 | 7,987,030 | ||||||
WisdomTree Emerging Markets Equity Income Fund | 268,558 | 12,759,191 | ||||||
24,074,601 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
25 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Clermont Fund (Unaudited) (Continued) |
October 31, 2014 |
Shares | Value | |||||||
Global Equity - 4.89% | ||||||||
FlexShares Global Upstream Natural Resources Index Fund | 182,997 | $ | 6,068,180 | |||||
iShares Global 100 ETF + | 190,700 | 14,786,878 | ||||||
20,855,058 | ||||||||
Inverse Equity - 2.92% | ||||||||
ProShares Short Russell 2000 * + | 778,675 | 12,458,800 | ||||||
Large Cap Core - 13.96% | ||||||||
First Trust NASDAQ Technology Dividend Index Fund + | 42,318 | 1,146,395 | ||||||
PowerShares S&P 500 High Quality Portfolio + | 228,000 | 5,116,320 | ||||||
RevenueShares Large Cap ETF + | 85,000 | 3,351,550 | ||||||
SPDR Consumer Staples Select Sector Fund + | 50,000 | 2,335,500 | ||||||
SPDR Health Care Select Sector Fund | 74,700 | 5,025,069 | ||||||
Vanguard Dividend Appreciation ETF | 539,300 | 42,599,308 | ||||||
59,574,142 | ||||||||
Large Cap Growth - 13.16% | ||||||||
iShares MSCI USA Quality Factor ETF | 395,113 | 24,180,916 | ||||||
iShares Russell 1000 Growth ETF | 46,600 | 4,378,536 | ||||||
Powershares QQQ Trust Series 1 | 64,100 | 6,499,740 | ||||||
SPDR Technology Select Sector Fund | 309,000 | 12,526,860 | ||||||
Vanguard Information Technology ETF | 34,000 | 3,467,660 | ||||||
Vanguard Mega Cap Growth ETF | 64,000 | 5,119,360 | ||||||
56,173,072 | ||||||||
Large Cap Value - 2.48% | ||||||||
SPDR Energy Select Sector Fund | 20,000 | 1,748,400 | ||||||
SPDR Financial Select Sector Fund | 370,607 | 8,835,271 | ||||||
10,583,671 | ||||||||
Total Equity Funds (cost $226,650,482) | 258,518,645 | |||||||
Money Market Funds - 3.08% | ||||||||
Short-Term Cash - 3.08% | ||||||||
Federated Prime Cash Obligations Fund, 0.04% ** | 13,144,465 | 13,144,465 | ||||||
Total Money Market Funds (cost $13,144,465) | 13,144,465 | |||||||
Collateral for Securities Loaned - 12.28% | ||||||||
BNY Mellon Overnight Government Fund | 18,426,887 | 18,426,887 | ||||||
Milestone Treasury Obligations Fund Institutional Class | 34,000,000 | 34,000,000 | ||||||
Total Collateral for Securities Loaned (cost $52,426,887) | 52,426,887 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
26 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Clermont Fund (Unaudited) (Continued) |
October 31, 2014 |
Value | ||||
Total Investments (cost $446,989,183) - 112.70% | $ | 481,057,937 | ||
Liabilities Less Other Assets - Net - (12.70)% | (54,226,492 | ) | ||
NET ASSETS - 100.00% | $ | 426,831,445 |
+ | All or a portion of this security is on loan. Total loaned securities had a value of $51,300,579 at October 31, 2014. |
* | Non-income producing security. |
** | Money Market Fund; Interest rate reflects seven-day effective yield on October 31, 2014. |
EMU - European Monetary Union
ETF - Exchange Traded Fund
FTSE - Financial Times Stock Exchange
MLP - Master Limited Partnership
MSCI - Morgan Stanley Capital International
SPDR - Standard & Poors’ Depositary Receipts
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
27 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Select Allocation Fund (Unaudited) |
October 31, 2014 |
Shares | Value | |||||||
Common Stock - 1.26% | ||||||||
Large Cap Value - 1.26% | ||||||||
Berkshire Hathaway, Inc. - Class B * | 27,230 | $ | 3,816,557 | |||||
Total Common Stock (cost $2,595,155) | 3,816,557 | |||||||
Bond Funds - 18.63% | ||||||||
High Yield Bonds - 2.58% | ||||||||
PIMCO 0-5 Year High Yield Corporate Bond Index ETF + | 75,100 | 7,834,432 | ||||||
Intermediate/Long-Term Bonds - 4.23% | ||||||||
iShares Floating Rate Bond ETF | 252,941 | 12,826,638 | ||||||
International Bond - 1.79% | ||||||||
iShares JP Morgan USD Emerging Markets Bond ETF + | 47,365 | 5,431,818 | ||||||
Short-Term Bonds - 10.03% | ||||||||
iShares 1-3 Year Treasury Bond ETF + | 60,000 | 5,082,000 | ||||||
PIMCO Enhanced Short Maturity ETF | 109,500 | 11,092,350 | ||||||
SPDR Barclays Short Term Corporate Bond ETF + | 192,166 | 5,909,105 | ||||||
SPDR Barclays Short Term High Yield Bond ETF | 121,500 | 3,638,925 | ||||||
SPDR Nuveen Barclays Short Term Municipal Bond ETF | 192,037 | 4,687,623 | ||||||
30,410,003 | ||||||||
Total Bond Funds (cost $56,347,579) | 56,502,891 | |||||||
Equity Funds - 77.86% | ||||||||
Commodity Funds - 3.07% | ||||||||
GreenHaven Continuous Commodity Index Fund * + | 132,000 | 3,259,080 | ||||||
iShares S&P GSCI Commodity Indexed Trust * + | 217,500 | 6,053,025 | ||||||
9,312,105 | ||||||||
Currency - 0.37% | ||||||||
PowerShares DB US Dollar Index Bullish Fund * + | 49,000 | 1,131,410 | ||||||
Developed International - 13.44% | ||||||||
Deutsche X-trackers MSCI EAFE Hedged Equity ETF + | 105,000 | 2,940,735 | ||||||
iShares MSCI ACWI ex US ETF + | 292,229 | 13,261,352 | ||||||
iShares MSCI Canada ETF | 40,000 | 1,196,800 | ||||||
iShares MSCI EAFE ETF | 277,220 | 17,728,219 | ||||||
iShares MSCI Italy Capped ETF + | 87,000 | 1,296,300 | ||||||
Schwab International Equity ETF | 90,000 | 2,780,100 | ||||||
WisdomTree International SmallCap Dividend Fund | 26,000 | 1,532,960 | ||||||
40,736,466 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
28 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Select Allocation Fund (Unaudited)(Continued) |
October 31, 2014 |
Shares | Value | |||||||
Emerging Markets - 10.94% | ||||||||
EGShares Beyond BRICs ETF + | 127,503 | $ | 2,817,816 | |||||
Guggenheim China Small Cap ETF + | 105,200 | 2,836,192 | ||||||
iShares Core MSCI Emerging Markets ETF + | 175,200 | 8,835,336 | ||||||
iShares MSCI All Country Asia ex Japan ETF + | 62,000 | 3,899,180 | ||||||
iShares MSCI Brazil Capped ETF | 64,500 | 2,788,980 | ||||||
iShares MSCI Frontier 100 ETF | 90,979 | 3,304,357 | ||||||
iShares MSCI Mexico Capped ETF | 43,400 | 2,970,730 | ||||||
WisdomTree Emerging Markets Equity Income Fund | 119,967 | 5,699,632 | ||||||
33,152,223 | ||||||||
Global Equity - 2.68% | ||||||||
iShares Global Tech ETF + | 22,000 | 2,044,680 | ||||||
iShares Global Healthcare ETF + | 43,000 | 4,304,730 | ||||||
iShares Global Energy ETF | 42,600 | 1,781,106 | ||||||
8,130,516 | ||||||||
Large Cap Core - 18.13% | ||||||||
iShares Core S&P 500 ETF | 34,620 | 7,027,514 | ||||||
Market Vectors Morningstar Wide Moat ETF + | 79,600 | 2,508,196 | ||||||
SPDR Consumer Staples Select Sector Fund ETF | 148,200 | 6,922,422 | ||||||
SPDR Industrial Select Sector Fund | 96,200 | 5,312,164 | ||||||
SPDR Materials Select Sector Fund | 49,700 | 2,405,480 | ||||||
SPDR S&P 500 ETF Trust | 18,890 | 3,809,357 | ||||||
Vanguard Health Care ETF + | 85,850 | 10,622,221 | ||||||
Vanguard Large-Cap ETF | 101,190 | 9,370,194 | ||||||
Vanguard Total Stock Market ETF | 67,060 | 6,975,581 | ||||||
54,953,129 | ||||||||
Large Cap Growth - 15.76% | ||||||||
iShares North American Tech-Software ETF + | 51,000 | 4,588,470 | ||||||
iShares Russell 1000 Growth ETF | 54,740 | 5,143,370 | ||||||
Powershares QQQ Trust Series 1 | 143,370 | 14,537,719 | ||||||
SPDR Technology Select Sector Fund | 89,130 | 3,613,330 | ||||||
Vanguard Growth ETF | 89,910 | 9,230,161 | ||||||
Vanguard Information Technology ETF + | 77,650 | 7,919,524 | ||||||
Vanguard Mega Cap Growth ETF + | 34,200 | 2,735,658 | ||||||
47,768,232 | ||||||||
Large Cap Value - 9.69% | ||||||||
SPDR Dow Jones Industrial Average ETF Trust + | 73,911 | 12,819,863 | ||||||
SPDR Energy Select Sector Fund + | 105,430 | 9,216,691 | ||||||
SPDR Financial Select Sector Fund | 308,450 | 7,353,448 | ||||||
29,390,002 | ||||||||
Small/Mid Cap Core - 3.78% | ||||||||
iShares Russell Mid-Cap ETF + | 17,230 | 2,814,176 | ||||||
SPDR S&P MidCap 400 ETF Trust + | 9,483 | 2,447,752 | ||||||
Vanguard Small-Cap ETF + | 53,750 | 6,215,113 | ||||||
11,477,041 | ||||||||
Total Equity Funds (cost $197,570,556) | 236,051,124 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
29 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Select Allocation Fund (Unaudited)(Continued) |
October 31, 2014 |
Shares | Value | |||||||
Money Market Funds - 3.54% | ||||||||
Short-Term Cash - 3.54% | ||||||||
Federated Prime Cash Obligations Fund, 0.04% ** | 10,754,574 | $ | 10,754,574 | |||||
Total Money Market Funds (cost $10,754,575) | 10,754,574 | |||||||
Collateral for Securities Loaned - 22.55% | ||||||||
BNY Mellon Overnight Government Fund | 30,369,049 | 30,369,049 | ||||||
Milestone Treasury Obligations Fund Institutional Class | 38,000,000 | 38,000,000 | ||||||
Total Collateral for Securities Loaned (cost $68,369,049) | 68,369,049 | |||||||
Total Investments (cost $335,636,914) - 123.86% | $ | 375,494,195 | ||||||
Liabilities Less Other Assets - Net - (23.86)% | (72,329,435 | ) | ||||||
NET ASSETS - 100.00% | $ | 303,164,760 |
* | Non-income producing security. |
+ | All or a portion of this security is on loan. Total loaned securities had a value of $66,830,383 at October 31, 2014. |
** | Money Market Fund; Interest rate reflects seven-day effective yield on October 31, 2014. |
ACWI - All Country World Index
DB - Deutsche Bank
EAFE - Europe, Australasia, Far East
ETF - Exchange Traded Fund
FTSE - Financial Times Stock Exchange
MSCI - Morgan Stanley Capital International
SPDR - Standard & Poors’ Depositary Receipts
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
30 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Descartes Fund (Unaudited) |
October 31, 2014 |
Shares | Value | |||||||
Equity Funds - 100.49% | ||||||||
Large Cap Core - 20.39% | ||||||||
First Trust NASDAQ Technology Dividend + | 22,000 | $ | 595,980 | |||||
iShares MSCI USA Momentum Factor ETF | 9,000 | 597,240 | ||||||
iShares S&P 100 ETF | 18,000 | 1,615,500 | ||||||
iShares U.S. Healthcare ETF | 13,000 | 1,843,400 | ||||||
4,652,120 | ||||||||
Large Cap Growth - 47.72% | ||||||||
iShares MSCI USA Minimum Volatility ETF + | 78,000 | 3,063,058 | ||||||
iShares MSCI USA Quality Factor ETF + | 28,000 | 1,713,600 | ||||||
iShares North American Tech-Software ETF | 24,000 | 2,159,280 | ||||||
iShares Russell 1000 Growth ETF | 31,000 | 2,912,760 | ||||||
Vanguard Mega Cap Growth ETF | 13,000 | 1,039,870 | ||||||
10,888,568 | ||||||||
Large Cap Value - 24.55% | ||||||||
iShares Russell 1000 Value ETF | 27,000 | 2,759,400 | ||||||
iShares S&P 500 Value ETF | 31,000 | 2,842,080 | ||||||
. | 5,601,480 | |||||||
Small/Mid Cap Value - 7.83% | ||||||||
Guggenheim S&P 500 Pure Value ETF | 33,000 | 1,786,620 | ||||||
Total Equity Funds (cost $17,762,425) | 22,928,788 | |||||||
Collateral for Securities Loaned - 17.53% | ||||||||
Milestone Treasury Obligations Fund Institutional Class | 4,000,000 | 4,000,000 | ||||||
Total Collateral for Securities Loaned (cost $4,000,000) | 4,000,000 | |||||||
Total Investments (cost $21,762,425) - 118.02% | $ | 26,928,788 | ||||||
Liabilities Less Other Assets - Net - (18.02)% | (4,110,656 | ) | ||||||
NET ASSETS - 100.00% | $ | 22,818,132 |
* | Non-income producing security. |
+ | All or a portion of this security is on loan. Total loaned securities had a value of $3,606,433 at October 31, 2014. |
ETF - Exchange Traded Fund
MSCI - Morgan Stanley Capital International
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
31 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Liahona Fund (Unaudited) |
October 31, 2014 |
Shares | Value | |||||||
Bond Funds - 14.53% | ||||||||
Short-Term Bonds - 14.53% | ||||||||
iShares 1-3 Year Treasury Bond ETF ^ | 34,000 | $ | 2,879,800 | |||||
Total Bond Funds (cost $2,874,402) | 2,879,800 | |||||||
Equity Funds - 84.66% | ||||||||
Developed International - 50.34% | ||||||||
Deutsche X-trackers MSCI EAFE Hedged Equity ETF + | 54,800 | 1,534,784 | ||||||
iShares MSCI Belgium Capped ETF | 19,900 | 319,793 | ||||||
iShares MSCI EAFE Minimum Volatility ETF | 14,400 | 925,200 | ||||||
iShares MSCI EMU ETF + | 50,000 | 1,870,000 | ||||||
iShares MSCI France ETF | 7,500 | 191,625 | ||||||
iShares MSCI Germany ETF | 5,600 | 152,488 | ||||||
iShares MSCI Ireland Capped ETF | 11,300 | 376,516 | ||||||
iShares MSCI Israel Capped ETF | 4,600 | 224,894 | ||||||
iShares MSCI Japan ETF | 32,500 | 391,950 | ||||||
iShares MSCI Sweden ETF | 11,400 | 375,288 | ||||||
iShares MSCI United Kingdom ETF | 19,800 | 376,398 | ||||||
PowerShares S&P International Developed Low Volatility Portfolio | 46,800 | 1,497,600 | ||||||
Vanguard FTSE Europe ETF | 4,300 | 232,931 | ||||||
WisdomTree Australia Dividend Fund | 5,900 | 346,979 | ||||||
WisdomTree Europe Hedged Equity Fund | 3,500 | 198,030 | ||||||
WisdomTree International SmallCap Dividend Fund + | 17,400 | 1,025,904 | ||||||
10,040,380 | ||||||||
Emerging Markets - 34.02% | ||||||||
BLDRS Emerging Markets 50 ADR Index Fund | 31,700 | 1,252,150 | ||||||
EGShares Low Volatility Emerging Markets Dividend ETF | 9,500 | 149,435 | ||||||
Guggenheim China Small Cap ETF | 14,400 | 388,224 | ||||||
Guggenheim China Technology ETF | 4,000 | 150,800 | ||||||
iShares MSCI All Country Asia ex Japan ETF + | 23,800 | 1,496,782 | ||||||
iShares Latin America 40 ETF | 16,900 | 620,568 | ||||||
iShares MSCI Malaysia ETF | 20,100 | 308,937 | ||||||
iShares MSCI Mexico Capped ETF | 5,500 | 376,475 | ||||||
iShares MSCI South Africa ETF | 2,200 | 150,458 | ||||||
iShares MSCI Taiwan ETF | 22,100 | 347,412 | ||||||
SPDR S&P BRIC 40 ETF | 31,300 | 753,704 | ||||||
SPDR S&P Emerging Asia Pacific ETF | 8,700 | 751,767 | ||||||
6,746,712 | ||||||||
Total Equity Funds (cost $16,474,640) | 16,787,092 | |||||||
Money Market Funds - 1.28% | ||||||||
Short-Term Cash - 1.28% | ||||||||
Federated Prime Cash Obligations Fund, 0.04% ** | 254,158 | 254,158 | ||||||
Total Money Market Funds (cost $254,158) | 254,158 | |||||||
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
32 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Liahona Fund (Unaudited)(Continued) |
October 31, 2014 |
Shares | Value | |||||||
Collateral for Securities Loaned - 17.10% | ||||||||
BNY Mellon Overnight Government Fund | 3,390,860 | 3,390,860 | ||||||
Total Collateral for Securities Loaned (cost $3,390,860) | 3,390,860 | |||||||
Total Investments (cost $22,989,272) - 117.57% | $ | 23,311,910 | ||||||
Liabilities Less Other Assets - Net - (17.57)% | (3,484,027 | ) | ||||||
NET ASSETS - 100.00% | $ | 19,827,883 |
* | Non-income producing security. |
** | Money Market Fund; Interest rate reflects seven-day effective yield on October 31, 2014. |
+ | All or a portion of this security is on loan. Total loaned securities had a value of $3,301,553 at October 31, 2014. |
DB - Deutsche Bank
EAFE - Europe, Australasia, Far East
EMU - European Monetary Union
ETF - Exchange Traded Fund
MSCI - Morgan Stanley Capital International
SPDR - Standard & Poors’ Depositary Receipts
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
33 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Enhanced Income Fund (Unaudited) |
October 31, 2014 |
Shares | Value | |||||||
Equity Funds - 100.47% | ||||||||
Developed International - 7.09% | ||||||||
iShares MSCI EAFE ETF + | 118,200 | $ | 7,558,890 | |||||
Emerging Markets - 5.01% | ||||||||
iShares China Large-Cap ETF + | 20,700 | 826,551 | ||||||
iShares Latin America 40 ETF + | 37,000 | 1,358,640 | ||||||
iShares MSCI Emerging Markets ETF + | 75,000 | 3,161,250 | ||||||
5,346,441 | ||||||||
Inverse Equity - 29.66% | ||||||||
ProShares Short Dow30 * + | 583,600 | 14,058,924 | ||||||
ProShares Short Russell2000 * + | 252,000 | 4,032,000 | ||||||
ProShares Short S&P500 * + | 604,000 | 13,535,640 | ||||||
31,626,564 | ||||||||
Large Cap Core - 29.75% | ||||||||
iShares Core S&P 500 ETF + | 31,800 | 6,455,082 | ||||||
SPDR S&P 500 ETF Trust + | 108,000 | 21,779,281 | ||||||
Vanguard Health Care ETF + | 28,200 | 3,489,186 | ||||||
31,723,549 | ||||||||
Large Cap Growth - 6.12% | ||||||||
Powershares QQQ Trust Series 1 + | 59,950 | 6,078,930 | ||||||
SPDR Technology Select Sector Fund + | 11,000 | 445,940 | ||||||
6,524,870 | ||||||||
Large Cap Value - 15.76% | ||||||||
SPDR Dow Jones Industrial Average ETF Trust + | 78,500 | 13,615,825 | ||||||
SPDR Energy Select Sector Fund + | 10,000 | 874,200 | ||||||
SPDR S&P Bank ETF | 70,000 | 2,314,200 | ||||||
16,804,225 | ||||||||
Small/Mid Cap Core - 7.08% | ||||||||
iShares Russell 2000 ETF + | 43,300 | 5,047,048 | ||||||
SPDR S&P MidCap 400 ETF Trust + | 9,700 | 2,503,764 | ||||||
7,550,812 | ||||||||
Total Equity Funds (cost $104,976,375) | 107,135,351 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
34 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Enhanced Income Fund (Unaudited)(Continued) |
October 31, 2014 |
Shares | Value | |||||||
Money Market Funds - 0.69% | ||||||||
Federated Prime Cash Obligations Fund, 0.04% ** | 735,698 | $ | 735,698 | |||||
Total Money Market Funds (cost $735,698) | 735,698 | |||||||
Total Investments (cost $105,712,073) - 101.16% | $ | 107,871,049 | ||||||
Liabilities Less Other Assets - Net - (1.16)% | (1,239,418 | ) | ||||||
NET ASSETS - 100.00% | $ | 106,631,631 |
+ | Subject to written options. |
* | Non-income producing security. |
** | Money Market Fund; Interest rate reflects seven-day effective yield on October 31, 2014. |
The market value of securities held to cover written call options at October 31, 2014 was $104,821,151.
EAFE - Europe, Australasia, Far East
ETF - Exchange Traded Fund
MSCI - Morgan Stanley Capital International
SPDR - Standard & Poors’ Depositary Receipts
Contracts** | Value | |||||||
Schedule of Call Options Written * | ||||||||
iShares China Large-Cap ETF Call | 40 | $ | 880 | |||||
November 2014, Exercise Price $41.5 | ||||||||
iShares Core S&P 500 ETF Call | 65 | 8,450 | ||||||
November 2014, Exercise Price $205 | ||||||||
iShares Core S&P 500 ETF Call | 65 | 975 | ||||||
November 2014, Exercise Price $210 | ||||||||
iShares Latin America 40 ETF Call | 40 | 1,600 | ||||||
November 2014, Exercise Price $38 | ||||||||
iShares Latin America 40 ETF Call | 75 | 375 | ||||||
November 2014, Exercise Price $39 | ||||||||
iShares MSCI EAFE ETF Call | 200 | 10,000 | ||||||
November 2014, Exercise Price $64.5 | ||||||||
iShares MSCI EAFE ETF Call | 200 | 3,600 | ||||||
November 2014, Exercise Price $65.5 | ||||||||
iShares MSCI Emerging Markets ETF Call | 150 | 2,850 | ||||||
November 2014, Exercise Price $43.5 | ||||||||
iShares Russell 2000 ETF Call | 85 | 10,285 | ||||||
November 2014, Exercise Price $118 | ||||||||
iShares Russell 2000 ETF Call | 42 | 4,074 | ||||||
November 2014, Exercise Price $118.5 | ||||||||
iShares Russell 2000 ETF Call | 100 | 5,400 | ||||||
November 2014, Exercise Price $120 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
35 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Enhanced Income Fund (Unaudited)(Continued) |
October 31, 2014 |
Contracts** | Value | |||||||
Schedule of Call Options Written * (Continued) | ||||||||
iShares Russell 2000 ETF Call | 50 | $ | 2,200 | |||||
November 2014, Exercise Price $120.5 | ||||||||
iShares Russell 2000 ETF Call | 85 | 850 | ||||||
November 2014, Exercise Price $123.5 | ||||||||
Powershares QQQ Trust Series 1 Call | 119 | 17,969 | ||||||
November 2014, Exercise Price $101 | ||||||||
Powershares QQQ Trust Series 1 Call | 60 | 7,620 | ||||||
November 2014, Exercise Price $101.5 | ||||||||
Powershares QQQ Trust Series 1 Call | 60 | 6,000 | ||||||
November 2014, Exercise Price $102 | ||||||||
Powershares QQQ Trust Series 1 Call | 100 | 5,900 | ||||||
November 2014, Exercise Price $103 | ||||||||
Powershares QQQ Trust Series 1 Call | 120 | 3,960 | ||||||
November 2014, Exercise Price $104 | ||||||||
Powershares QQQ Trust Series 1 Call | 120 | 2,040 | ||||||
November 2014, Exercise Price $105 | ||||||||
ProShares Short Dow30 Call | 500 | 3,750 | ||||||
November 2014, Exercise Price $28 | ||||||||
ProShares Short Dow30 Call | 500 | 3,750 | ||||||
November 2014, Exercise Price $29 | ||||||||
ProShares Short Russell2000 Call | 500 | 3,750 | ||||||
November 2014, Exercise Price $19 | ||||||||
ProShares Short S&P500 Call | 500 | 2,500 | ||||||
November 2014, Exercise Price $25 | ||||||||
ProShares Short S&P500 Call | 1,500 | 11,250 | ||||||
November 2014, Exercise Price $26 | ||||||||
ProShares Short S&P500 Call | 2,000 | 15,000 | ||||||
November 2014, Exercise Price $27 | ||||||||
ProShares Short S&P500 Call | 2,000 | 10,000 | ||||||
November 2014, Exercise Price $28 | ||||||||
SPDR Dow Jones Industrial Average ETF Call | 150 | 40,650 | ||||||
November 2014, Exercise Price $172 | ||||||||
SPDR Dow Jones Industrial Average ETF Call | 75 | 15,900 | ||||||
November 2014, Exercise Price $172.5 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
36 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Enhanced Income Fund (Unaudited)(Continued) |
October 31, 2014 |
Contracts** | Value | |||||||
Schedule of Call Options Written * (Continued) | ||||||||
SPDR Dow Jones Industrial Average ETF Call | 75 | $ | 15,525 | |||||
November 2014, Exercise Price $173 | ||||||||
SPDR Dow Jones Industrial Average ETF Call | 150 | 21,000 | ||||||
November 2014, Exercise Price $174 | ||||||||
SPDR Dow Jones Industrial Average ETF Call | 150 | 17,700 | ||||||
November 2014, Exercise Price $174.5 | ||||||||
SPDR Dow Jones Industrial Average ETF Call | 185 | 11,655 | ||||||
November 2014, Exercise Price $176 | ||||||||
SPDR Energy Select Sector Fund Call | 50 | 500 | ||||||
November 2014, Exercise Price $93 | ||||||||
SPDR Energy Select Sector Fund Call | 30 | 300 | ||||||
November 2014, Exercise Price $93.5 | ||||||||
SPDR Energy Select Sector Fund Call | 20 | 60 | ||||||
November 2014, Exercise Price $97 | ||||||||
SPDR S&P 500 ETF Call | 200 | 54,400 | ||||||
November 2014, Exercise Price $201 | ||||||||
SPDR S&P 500 ETF Call | 100 | 21,300 | ||||||
November 2014, Exercise Price $202 | ||||||||
SPDR S&P 500 ETF Call | 100 | 18,600 | ||||||
November 2014, Exercise Price $202.5 | ||||||||
SPDR S&P 500 ETF Call | 100 | 16,000 | ||||||
November 2014, Exercise Price $203 | ||||||||
SPDR S&P 500 ETF Call | 100 | 13,800 | ||||||
November 2014, Exercise Price $203.5 | ||||||||
SPDR S&P 500 ETF Call | 100 | 11,800 | ||||||
November 2014, Exercise Price $204 | ||||||||
SPDR S&P 500 ETF Call | 180 | 10,080 | ||||||
November 2014, Exercise Price $206 | ||||||||
SPDR S&P 500 ETF Call | 200 | 7,600 | ||||||
November 2014, Exercise Price $207 | ||||||||
SPDR S&P MidCap 400 ETF Trust Call | 20 | 6,800 | ||||||
November 2014, Exercise Price $257.5 | ||||||||
SPDR S&P MidCap 400 ETF Trust Call | 20 | 1,900 | ||||||
November 2014, Exercise Price $262.5 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
37 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Enhanced Income Fund (Unaudited)(Continued) |
October 31, 2014 |
Contracts** | Value | |||||||
Schedule of Call Options Written * (Continued) | ||||||||
SPDR S&P MidCap 400 ETF Trust Call | 20 | $ | 1,100 | |||||
November 2014, Exercise Price $265 | ||||||||
SPDR S&P MidCap 400 ETF Trust Call | 20 | 200 | ||||||
November 2014, Exercise Price $272.5 | ||||||||
SPDR Technology Select Sector Fund Call | 20 | 1,660 | ||||||
November 2014, Exercise Price $40 | ||||||||
SPDR Technology Select Sector Fund Call | 20 | 460 | ||||||
November 2014, Exercise Price $41 | ||||||||
Vanguard Health Care ETF Call | 60 | 600 | ||||||
November 2014, Exercise Price $127 | ||||||||
Total Call Options Written (proceeds $129,105) | $ | 434,618 |
* | Non-income producing security. |
** | Each option contract allows the holder of the option to purchase or sell 50 or 100 shares of the underlying security. |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
38 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Flexible Income Fund (Unaudited) |
October 31, 2014 |
Shares | Value | |||||||
Bond Funds - 78.84% | ||||||||
High Yield Bonds - 13.86% | ||||||||
iShares iBoxx $ High Yield Corporate Bond ETF | 90,080 | $ | 8,335,102 | |||||
Peritus High Yield ETF | 50,444 | 2,396,594 | ||||||
PIMCO 0-5 Year High Yield Corporate Bond Index ETF + | 56,295 | 5,872,694 | ||||||
PowerShares Senior Loan Portfolio + | 434,800 | 10,600,424 | ||||||
27,204,814 | ||||||||
Intermediate/Long-Term Bonds - 36.15% | ||||||||
iShares 3-7 Year Treasury Bond ETF + | 41,200 | 5,040,820 | ||||||
iShares Core U.S. Aggregate Bond ETF | 90,626 | 9,976,110 | ||||||
iShares Core US Credit Bond ETF + | 33,450 | 3,733,355 | ||||||
iShares Floating Rate Bond ETF | 264,573 | 13,416,497 | ||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF + | 18,725 | 2,234,641 | ||||||
iShares Intermediate Credit Bond ETF | 90,380 | 9,933,666 | ||||||
iShares National AMT-Free Muni Bond ETF + | 31,275 | 3,440,876 | ||||||
PIMCO Total Return Active Exchange-Traded Fund | 29,700 | 3,233,142 | ||||||
SPDR Blackstone / GSO Senior Loan ETF | 40,000 | 1,972,400 | ||||||
Vanguard Intermediate-Term Corporate Bond ETF + | 94,483 | 8,174,669 | ||||||
Vanguard Mortgage-Backed Securities ETF | 41,000 | 2,170,540 | ||||||
Vanguard Total Bond Market ETF | 92,385 | 7,608,829 | ||||||
70,935,545 | ||||||||
International Bond - 5.23% | ||||||||
iShares 1-3 Year International Treasury Bond ETF + | 5,600 | 492,940 | ||||||
iShares Emerging Markets Local Currency Bond ETF + | 52,400 | 2,544,020 | ||||||
iShares JP Morgan USD Emerging Markets Bond ETF + | 30,350 | 3,480,538 | ||||||
SPDR DB International Government Inflation-Protected Bond ETF | 63,675 | 3,753,004 | ||||||
10,270,502 | ||||||||
Short-Term Bonds - 23.60% | ||||||||
Guggenheim BulletShares 2014 Corporate Bond ETF | 143,930 | 3,036,923 | ||||||
iShares 1-3 Year Treasury Bond ETF | 44,041 | 3,730,273 | ||||||
iShares Short-Term National AMT-Free Muni Bond ETF + | 16,450 | 1,745,612 | ||||||
iShares TIPS Bond ETF | 24,848 | 2,809,812 | ||||||
PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund + | 57,500 | 3,023,925 | ||||||
PIMCO Enhanced Short Maturity Active Exchange-Traded Fund | 121,117 | 12,269,152 | ||||||
SPDR Barclays Short Term High Yield Bond ETF | 252,775 | 7,570,611 | ||||||
SPDR Nuveen Barclays Short Term Municipal Bond ETF | 166,971 | 4,075,762 | ||||||
Vanguard Short-Term Corporate Bond ETF + | 100,375 | 8,043,049 | ||||||
46,305,119 | ||||||||
Total Bond Funds (cost $154,598,578) | 154,715,980 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
39 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Flexible Income Fund (Unaudited)(Continued) |
October 31, 2014 |
Shares | Value | |||||||
Equity Funds - 9.59% | ||||||||
Commodity - 0.98% | ||||||||
United States Commodity Index Fund + | 35,500 | $ | 1,924,881 | |||||
Currency - 1.04% | ||||||||
PowerShares DB US Dollar Index Bullish Fund* + | 88,000 | 2,031,920 | ||||||
Developed International - 0.85% | ||||||||
iShares MSCI EAFE ETF | 12,500 | 799,375 | ||||||
iShares MSCI EAFE Value ETF + | 16,000 | 867,840 | ||||||
1,667,215 | ||||||||
Inverse Bond - 0.12% | ||||||||
ProShares UltraShort 20+ Year Treasury * | 4,500 | 238,230 | ||||||
Inverse Equity - 0.24% | ||||||||
ProShares Short S&P500 * | 21,000 | 470,610 | ||||||
Large Cap Core - 1.57% | ||||||||
iShares Core S&P 500 ETF | 15,200 | 3,085,449 | ||||||
Large Cap Value - 2.08% | ||||||||
PowerShares S&P 500 Low Volatility Portfolio + | 59,300 | 2,170,973 | ||||||
Vanguard High Dividend Yield ETF | 28,000 | 1,905,400 | ||||||
4,076,373 | ||||||||
Preferred Security - 2.71% | ||||||||
iShares US Preferred Stock ETF + | 46,775 | 1,859,306 | ||||||
PowerShares Financial Preferred Portfolio + | 119,461 | 2,168,217 | ||||||
PowerShares Preferred Portfolio + | 88,700 | 1,295,020 | ||||||
5,322,543 | ||||||||
Total Equity Funds (cost $17,934,406) | 18,817,221 | |||||||
Principal ($) | ||||||||
U.S. Government and Agency Obligations - 8.28% | ||||||||
Fannie Mae, 4.00%, due 6/1/2041 | $ | 640,178 | 680,517 | |||||
Fannie Mae, 4.00%, due 9/1/2041 | 851,248 | 904,830 | ||||||
Fannie Mae, 4.00%, due 12/1/2041 | 499,994 | 531,466 | ||||||
Fannie Mae, 6.00%, due 12/1/2035 | 478,377 | 544,554 | ||||||
Fannie Mae, 4.00%, due 2/1/2040 | 403,255 | 428,638 | ||||||
Fannie Mae, 6.00%, due 12/1/2038 | 176,603 | 199,627 | ||||||
Fannie Mae, 5.00%, due 11/1/2039 | 479,466 | 535,607 | ||||||
Fannie Mae, 5.50%, due 4/1/2040 | 474,659 | 530,248 | ||||||
Fannie Mae, 3.50%, due 12/1/2030 | 395,965 | 416,021 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
40 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Flexible Income Fund (Unaudited)(Continued) |
October 31, 2014 |
Principal ($) | Value | |||||||
U.S. Government and Agency Obligations - 8.28% (continued) | ||||||||
Fannie Mae, 3.50%, due 7/1/2032 | $ | 747,558 | $ | 785,522 | ||||
Fannie Mae, 5.50%, due 12/1/2039 | 349,796 | 393,599 | ||||||
Fannie Mae, 5.00%, due 2/1/2040 | 789,197 | 875,881 | ||||||
Fannie Mae, 4.00%, due 10/1/2040 | 384,698 | 409,239 | ||||||
Federal Home Loan Banks, 2.90%, due 4/20/2017 | 187,725 | 194,250 | ||||||
Federal Home Loan Mortgage Corp., 5.40%, due 3/17/2021 | 750,000 | 797,400 | ||||||
Federal Home Loan Mortgage Corp., 2.00%, due 3/12/2020 | 1,000,000 | 1,008,488 | ||||||
Federal National Mortgage Association, 2.00%, due 8/28/2020 | 1,000,000 | 999,256 | ||||||
Freddie Mac Gold Pool, 6.00%, due 5/1/2037 | 163,941 | 185,811 | ||||||
Freddie Mac Gold Pool, 6.50%, due 4/1/2039 | 231,104 | 261,912 | ||||||
Freddie Mac Gold Pool, 4.50%, due 2/1/2041 | 472,023 | 511,536 | ||||||
Freddie Mac Gold Pool,5.50%, due 6/1/2034 | 374,646 | 420,664 | ||||||
Government National Mortgage Association, 3.50%, due 7/16/2039 | 231,539 | 240,659 | ||||||
Government National Mortgage Association, 4.00%, due 2/20/2039 | 537,415 | 562,551 | ||||||
United States Treasury Note/Bond, 4.50%, due 5/15/2017 | 1,000,000 | 1,093,750 | ||||||
United States Treasury Note/Bond, 4.25%, due 11/15/2017 | 2,500,000 | 2,743,750 | ||||||
Total U.S. Government and Agency Obligations (cost $15,679,094) | 16,255,776 | |||||||
Shares | ||||||||
Money Market Funds - 4.65% | ||||||||
Short-Term Cash - 4.65% | ||||||||
Federated Prime Cash Obligations Fund, 0.04% ** | 9,129,562 | 9,129,562 | ||||||
Total Money Market Funds (cost $9,129,562) | 9,129,562 | |||||||
Collateral for Securities Loaned - 12.88% | ||||||||
Milestone Treasury Obligations Fund Institutional Class | 25,000,000 | 25,000,000 | ||||||
U.S. Treasury Bills, 11/20/14 - 3/5/15 | 77,694 | 77,694 | ||||||
U.S. Treasury Bond, 3.875%, 8/15/40 | 21,684 | 25,458 | ||||||
U.S. Treasury Notes, 0.125% - 1.625%, 12/31/14 - 3/31/19 | 146,581 | 147,126 | ||||||
U.S. TIPs, 0.125%, 4/15/16 - 7/15/22 | 25,568 | 27,807 | ||||||
Total Collateral for Securities Loaned (cost $25,278,085) | 25,278,085 | |||||||
Total Investments (cost $222,619,725) - 114.24% | $ | 224,196,624 | ||||||
Liabilities Less Other Assets - Net - (14.25)% | (27,953,925 | ) | ||||||
NET ASSETS - 100.00% | $ | 196,242,699 |
+ | All or a portion of this security is on loan. Total loaned securities had a value of $21 ,331,577 at October 31, 2014. |
* | Non-income producing security. |
** | Money Market Fund; Interest rate reflects seven-day effective yield on October 31, 2014. |
DB - Deutsche Bank
EAFE - Europe, Australasia, Far East
ETF - Exchange Traded Fund
MBS - Mortgage Backed Security
SPDR - Standard & Poors’ Depositary Receipts
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
41 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Select Appreciation Fund (Unaudited) |
October 31, 2014 |
Shares | Value | |||||||
Equity Funds - 99.58% | ||||||||
Alternative - 6.28% | ||||||||
ProShares Large Cap Core Plus + | 46,000 | $ | 4,540,660 | |||||
WisdomTree Managed Futures Strategy Fund * + | 46,000 | 1,987,660 | ||||||
6,528,320 | ||||||||
Developed International - 23.16% | ||||||||
Deutsche X-trackers MSCI Japan Hedged Equity ETF + | 107,000 | 4,351,690 | ||||||
iShares International Select Dividend ETF + | 161,000 | 5,808,880 | ||||||
iShares MSCI ACWI ETF | 109,000 | 6,497,490 | ||||||
iShares MSCI Ireland Capped ETF | 50,000 | 1,666,000 | ||||||
WisdomTree Europe SmallCap Dividend Fund + | 111,000 | 5,769,780 | ||||||
24,093,840 | ||||||||
Emerging Markets - 2.96% | ||||||||
iShares MSCI All Country Asia ex Japan ETF + | 27,000 | 1,698,030 | ||||||
SPDR S&P Emerging Asia Pacific ETF + | 16,000 | 1,382,560 | ||||||
3,080,590 | ||||||||
Global Equity - 3.50% | ||||||||
Cambria Global Value ETF | 58,700 | 1,266,159 | ||||||
PowerShares Global Listed Private Equity Portfolio | 214,000 | 2,375,400 | ||||||
3,641,559 | ||||||||
Inverse Equity - 0.92% | ||||||||
ProShares Short Russell2000 * | 60,000 | 960,000 | ||||||
Large Cap Core - 22.19% | ||||||||
First Trust NASDAQ Technology Dividend Index Fund + | 233,000 | 6,311,969 | ||||||
Guggenheim S&P 500 Equal Weight ETF + | 95,000 | 7,417,600 | ||||||
Market Vectors Wide Moat ETF + | 257,000 | 8,098,070 | ||||||
Materials Select Sector SPDR Fund + | 26,000 | 1,258,400 | ||||||
23,086,039 | ||||||||
Large Cap Growth - 9.85% | ||||||||
iShares PHLX Semiconductor ETF + | 49,000 | 4,270,350 | ||||||
iShares U.S. Oil Equipment & Services ETF + | 25,000 | 1,515,750 | ||||||
Powershares Dynamic Pharmaceuticals Portfolio | 65,000 | 4,464,850 | ||||||
10,250,950 | ||||||||
Large Cap Value - 1.10% | ||||||||
First Trust Capital Strength Portfolio | 31,000 | 1,134,600 | ||||||
Small/Mid Cap Core - 4.50% | ||||||||
Guggenheim Spin-Off ETF | 74,000 | 3,395,860 | ||||||
Trim Tabs Float Shrink ETF + | 24,000 | 1,280,640 | ||||||
4,676,500 | ||||||||
Small/Mid Cap Growth - 8.88% | ||||||||
First Trust US IPO Index Fund + | 48,000 | 2,344,800 | ||||||
iShares U.S. Medical Devices ETF + | 46,000 | 4,939,020 | ||||||
Powershares Dynamic Leisure & Entertainment Portfolio + | 57,000 | 1,950,540 | ||||||
9,234,360 |
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
42 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Select Appreciation Fund (Unaudited) (Continued) |
October 31, 2014 |
Shares | Value | |||||||
Small/Mid Cap Value - 16.24% | ||||||||
Guggenheim S&P 500 Pure Value ETF | 20,000 | $ | 1,082,800 | |||||
Guggenheim Shipping ETF + | 120,000 | 2,430,000 | ||||||
Guggenheim Timber ETF | 167,000 | 4,091,500 | ||||||
iShares U.S. Insurance ETF | 75,000 | 3,654,750 | ||||||
PowerShares Dynamic Market Portfolio + | 78,000 | 5,631,210 | ||||||
16,890,260 | ||||||||
Total Equity Funds (cost $86,597,466) | 103,577,018 | |||||||
Money Market Funds - 1.57% | ||||||||
Short-Term Cash - 1.57% | ||||||||
Federated Prime Cash Obligations Fund, 0.04% ** | 1,634,730 | 1,634,730 | ||||||
Total Money Market Funds (cost $1,634,730) | 1,634,730 | |||||||
Collateral for Securities Loaned - 28.03% | ||||||||
BNY Mellon Overnight Government Fund | 14,151,236 | 14,151,236 | ||||||
Milestone Treasury Obligations Fund Institutional Class | 15,000,000 | 15,000,000 | ||||||
Total Collateral for Securities Loaned (cost $29,151,236) | 29,151,236 | |||||||
Total Investments (cost $117,383,432) - 129.18% | $ | 134,362,984 | ||||||
Liabilities Less Other Assets - Net - (29.18)% | (30,346,680 | ) | ||||||
NET ASSETS - 100.00% | $ | 104,016,304 |
+ | All or a portion of this security is on loan. Total loaned securities had a value of $28,500,847 at October 31, 2014. |
* | Non-income producing security. |
** | Money Market Fund; Interest rate reflects seven-day effective yield on October 31, 2014. |
ETF - Exchange Traded Fund
MSCI - Morgan Stanley Capital International
SPDR - Standard & Poors’ Depositary Receipts
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
43 |
AdvisorOne Funds Semi-Annual Report |
Schedule of Investments - Shelter Fund (Unaudited) |
October 31, 2014 |
Shares | Value | |||||||
Equity Funds - 98.09% | ||||||||
Developed International - 12.53% | ||||||||
Deutsche X-trackers MSCI Europe Hedged Equity ETF | 89,000 | $ | 2,386,980 | |||||
iShares MSCI All Country World Minimum Volatility ETF | 118,000 | 8,159,700 | ||||||
10,546,680 | ||||||||
Large Cap Core - 6.25% | ||||||||
iShares Core S&P 500 ETF | 25,900 | 5,257,441 | ||||||
Large Cap Growth - 34.10% | ||||||||
iShares S&P 500 Growth ETF | 136,015 | 14,933,087 | ||||||
Vanguard Growth ETF | 134,200 | 13,776,972 | ||||||
28,710,059 | ||||||||
Large Cap Value - 45.21% | ||||||||
iShares MSCI USA Minimum Volatility ETF | 210,000 | 8,246,700 | ||||||
iShares S&P 500 Value ETF | 143,300 | 13,137,744 | ||||||
PowerShares S&P 500 Low Volatility Portfolio | 117,000 | 4,283,370 | ||||||
Vanguard Value ETF | 150,000 | 12,399,000 | ||||||
38,066,814 | ||||||||
Total Equity Funds (cost $72,093,901) | 82,580,994 | |||||||
Money Market Funds - 2.86% | ||||||||
Federated Prime Cash Obligations Fund, 0.04% * | 2,412,977 | 2,412,977 | ||||||
Total Money Market Funds (cost $2,412,977) | 2,412,977 | |||||||
Total Investments (cost $74,506,878) - 100.95% | $ | 84,993,971 | ||||||
Liabilities Less Other Assets - Net - (0.95)% | (801,821 | ) | ||||||
NET ASSETS - 100.00% | $ | 84,192,150 |
* | Money Market Fund; Interest rate reflects seven-day effective yield on October 31, 2014. |
EAFE - Europe, Australasia, Far East
ETF - Exchange Traded Fund
MSCI - Morgan Stanley Capital International
Refer to the Notes to Financial Statements in this Report for further information regarding the values set forth above.
44 |
AdvisorOne Funds Semi-Annual Report |
Statements of Assets and Liabilities (Unaudited) |
October 31, 2014 |
Select | ||||||||||||||||||||
Amerigo | Clermont | Allocation | Descartes | Liahona | ||||||||||||||||
Assets: | Fund | Fund | Fund | Fund | Fund | |||||||||||||||
Investments, at cost | $ | 556,190,145 | $ | 446,989,183 | $ | 335,636,914 | $ | 21,762,425 | $ | 22,989,272 | ||||||||||
Investments in securities, at value * | $ | 652,552,689 | $ | 481,057,937 | $ | 375,494,195 | $ | 26,928,788 | $ | 23,311,910 | ||||||||||
Cash | — | 2 | — | — | 217,993 | |||||||||||||||
Receivable for securities sold | — | 1,383,857 | 98,672 | 973,866 | 8,946,979 | |||||||||||||||
Receivable for fund shares sold | — | 194,664 | — | 1,193 | 1,271 | |||||||||||||||
Receivable for security lending | 84,955 | 90,947 | 68,135 | 14,538 | 39,759 | |||||||||||||||
Interest and dividends receivable | — | 153,161 | 43,922 | 1,426 | — | |||||||||||||||
Prepaid expenses and other assets | 36,167 | 28,200 | 17,805 | 17,284 | 21,867 | |||||||||||||||
Total Assets | 652,673,811 | 482,908,768 | 375,722,729 | 27,937,095 | 32,539,779 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Securities lending collateral (Note 7) | 74,822,397 | 52,426,887 | 68,369,049 | 4,000,000 | 3,390,860 | |||||||||||||||
Due to custodian | — | — | — | 908,754 | — | |||||||||||||||
Payable for securities purchased | — | 2,580,334 | 3,332,815 | — | 9,086,742 | |||||||||||||||
Dividends payable | — | — | 1,973 | — | — | |||||||||||||||
Payable for fund shares redeemed | — | 665,547 | 565,021 | 127,437 | 124,865 | |||||||||||||||
Accrued advisory fees | 445,829 | 311,011 | 219,355 | 24,494 | 45,533 | |||||||||||||||
Fees payable to other affiliates | 57,789 | 49,063 | 42,866 | 25,410 | 23,505 | |||||||||||||||
Accrued distribution (12b-1) fees | 2,185 | — | — | — | — | |||||||||||||||
Call options written, at fair value (premiums received $0, $0, $0, $0, $0) | — | — | — | — | — | |||||||||||||||
Accrued expenses and other liabilities | 50,284 | 44,481 | 26,890 | 32,868 | 40,391 | |||||||||||||||
Total Liabilities | 75,378,484 | 56,077,323 | 72,557,969 | 5,118,963 | 12,711,896 | |||||||||||||||
Net Assets | $ | 577,295,327 | $ | 426,831,445 | $ | 303,164,760 | $ | 22,818,132 | $ | 19,827,883 | ||||||||||
Net Assets: | ||||||||||||||||||||
Paid in capital ($0 par value, unlimited shares authorized) | $ | 469,359,475 | $ | 387,781,269 | $ | 260,098,691 | $ | (14,935,181 | ) | $ | (17,241,656 | ) | ||||||||
Undistributed net investment income (loss) | 7,290,526 | 2,322,238 | 1,219,468 | 1,095,165 | 1,049,891 | |||||||||||||||
Accumulated net realized gain (loss) on investments, securities sold short and written options | 4,282,782 | 2,659,184 | 1,989,320 | 31,491,785 | 35,697,010 | |||||||||||||||
Net unrealized appreciation (depreciation) on investments, securities sold short, and written options | 96,362,544 | 34,068,754 | 39,857,281 | 5,166,363 | 322,638 | |||||||||||||||
Net Assets | $ | 577,295,327 | $ | 426,831,445 | $ | 303,164,760 | $ | 22,818,132 | $ | 19,827,883 | ||||||||||
Class C Shares: | ||||||||||||||||||||
Net assets | $ | 2,655,461 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Net asset value and offering price per share (Net assets ÷ Total shares of beneficial interest outstanding)** | $ | 16.99 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Total shares outstanding at end of year | 156,299 | — | — | — | — | |||||||||||||||
Class N Shares: | ||||||||||||||||||||
Net assets | $ | 574,639,866 | $ | 426,831,445 | $ | 303,164,760 | $ | 22,818,132 | $ | 19,827,883 | ||||||||||
Net asset value and offering price per share (Net assets ÷ Total shares of beneficial interest outstanding) | $ | 18.15 | $ | 10.98 | $ | 11.49 | $ | 13.46 | $ | 11.01 | ||||||||||
Total shares outstanding at end of year | 31,657,747 | 38,864,774 | 26,379,108 | 1,695,618 | 1,801,084 |
* | Includes Securities Loaned $73,101,556; $51,300,579; $66,830,383; $3,606,433; $3,301,553. |
** | Redemption price is equal to net asset value less any applicable contingent deferred sales charge. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
45 |
AdvisorOne Funds Semi-Annual Report |
Statements of Assets and Liabilities (Unaudited)(Continued) |
October 31, 2014 |
Enhanced | Flexible | Select | ||||||||||||||
Income | Income | Appreciation | Shelter | |||||||||||||
Assets: | Fund | Fund | Fund | Fund | ||||||||||||
Investments, at cost | $ | 105,712,073 | $ | 222,619,725 | $ | 117,383,432 | $ | 74,506,878 | ||||||||
Investments in securities, at value * | $ | 107,871,049 | $ | 224,196,624 | $ | 134,362,984 | $ | 84,993,971 | ||||||||
Cash | — | — | — | — | ||||||||||||
Receivable for securities sold | 1,042,612 | — | 1,975,632 | — | ||||||||||||
Receivable for fund shares sold | 36,630 | 76,373 | 25,371 | 230,828 | ||||||||||||
Receivable for security lending | 61,975 | 56,533 | — | |||||||||||||
Interest and dividends receivable | 10,744 | 153,346 | — | — | ||||||||||||
Prepaid expenses and other assets | 22,723 | 26,521 | 39,818 | 12,057 | ||||||||||||
Total Assets | 108,983,758 | 224,514,839 | 136,460,338 | 85,236,856 | ||||||||||||
Liabilities: | ||||||||||||||||
Securities lending collateral (Note 7) | — | 25,278,085 | 29,151,236 | — | ||||||||||||
Payable for securities purchased | 1,586,960 | 2,267,400 | 3,036,829 | 894,135 | ||||||||||||
Dividends payable | — | — | — | — | ||||||||||||
Payable for fund shares redeemed | 208,461 | 556,283 | 139,805 | 19,278 | ||||||||||||
Accrued advisory fees | 57,767 | 85,653 | 61,910 | 57,980 | ||||||||||||
Fees payable to other affiliates | 43,352 | 50,655 | 23,648 | 50,944 | ||||||||||||
Accrued distribution (12b-1) fees | — | — | — | — | ||||||||||||
Call options written, at fair value (premiums received $129,105, $0, $0, $0) | 434,618 | — | — | — | ||||||||||||
Accrued expenses and other liabilities | 20,969 | 34,064 | 30,606 | 22,369 | ||||||||||||
Total Liabilities | 2,352,127 | 28,272,140 | 32,444,034 | 1,044,706 | ||||||||||||
Net Assets | $ | 106,631,631 | $ | 196,242,699 | $ | 104,016,304 | $ | 84,192,150 | ||||||||
Net Assets: | ||||||||||||||||
Paid in capital ($0 par value, unlimited shares authorized) | $ | 107,926,137 | $ | 194,226,411 | $ | 82,854,671 | $ | 73,988,662 | ||||||||
Undistributed net investment income (loss) | (33,435 | ) | 542,618 | 448,166 | 760,450 | |||||||||||
Accumulated net realized gain (loss) on investments, securities sold short and written options | (3,114,534 | ) | (103,229 | ) | 3,733,915 | (1,044,055 | ) | |||||||||
Net unrealized appreciation (depreciation) on investments, securities sold short, and written options | 1,853,463 | 1,576,899 | 16,979,552 | 10,487,093 | ||||||||||||
Net Assets | $ | 106,631,631 | $ | 196,242,699 | $ | 104,016,304 | $ | 84,192,150 | ||||||||
Class C Shares: | ||||||||||||||||
Net assets | $ | — | $ | — | $ | — | $ | — | ||||||||
Net asset value and offering price per share (Net assets ÷ Total shares of beneficial interest outstanding) | $ | — | $ | — | $ | — | $ | — | ||||||||
Total shares outstanding at end of year | — | — | — | — | ||||||||||||
Class N Shares: | ||||||||||||||||
Net assets | $ | 106,631,631 | $ | 196,242,699 | $ | 104,016,304 | $ | 84,192,150 | ||||||||
Net asset value and offering price per share (Net assets ÷ Total shares of beneficial interest outstanding) | $ | 10.61 | $ | 10.39 | $ | 13.73 | $ | 12.80 | ||||||||
Total shares outstanding at end of year | 10,053,253 | 18,893,387 | 7,576,144 | 6,575,497 |
* | Includes Securities Loaned $0; $21,331,577; $28,500,847; $0. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
46 |
AdvisorOne Funds Semi-Annual Report |
Statements of Operations (Unaudited) |
For the Six Months Ended October 31, 2014 |
Select | ||||||||||||||||||||
Amerigo | Clermont | Allocation | Descartes | Liahona | ||||||||||||||||
Fund | Fund | Fund | Fund | Fund | ||||||||||||||||
Investment Income: | ||||||||||||||||||||
Interest income | $ | 270 | $ | 571 | $ | 237,733 | $ | 258 | $ | 326 | ||||||||||
Dividend income | 6,158,446 | 3,760,353 | 2,253,690 | 1,598,359 | 1,894,228 | |||||||||||||||
Securities lending income | 215,013 | 344,325 | — | 203,473 | 432,816 | |||||||||||||||
Total investment income | 6,373,729 | 4,105,249 | 2,491,423 | 1,802,090 | 2,327,370 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Investment advisory fees | 2,512,425 | 1,633,211 | 1,244,302 | 725,753 | 1,134,944 | |||||||||||||||
Administration fees | 176,267 | 132,943 | 111,314 | 70,409 | 103,057 | |||||||||||||||
Transfer agent fees | 79,853 | 90,849 | 103,371 | 74,913 | 89,015 | |||||||||||||||
Accounting fees | 61,847 | 32,463 | 28,574 | 23,017 | 27,306 | |||||||||||||||
Professional fees | 19,925 | 14,599 | 12,547 | 10,030 | 13,016 | |||||||||||||||
Registration & filing fees | 22,616 | 13,413 | 13,371 | 12,602 | 12,602 | |||||||||||||||
Distribution fees (12b-1) - Class C Shares | 13,394 | — | — | — | — | |||||||||||||||
Chief compliance officer fees | 7,716 | 4,580 | 3,556 | 2,382 | 3,794 | |||||||||||||||
Insurance expense | 18,277 | 10,605 | 8,144 | 5,452 | 8,310 | |||||||||||||||
Custodian fees | 18,266 | 11,628 | 8,897 | 6,177 | 9,760 | |||||||||||||||
Printing and postage expense | 32,422 | 22,383 | 31,187 | 12,672 | 19,323 | |||||||||||||||
Trustees’ fees | 6,510 | 6,708 | 7,138 | 6,760 | 6,455 | |||||||||||||||
Interest expense | — | — | — | — | 22,968 | |||||||||||||||
Miscellaneous fees and expenses | 3,280 | 2,784 | 2,487 | 1,338 | 2,433 | |||||||||||||||
Total expenses before waivers | 2,972,798 | 1,976,166 | 1,574,888 | 951,505 | 1,452,983 | |||||||||||||||
Expenses waived | (68,101 | ) | (95,444 | ) | (142,682 | ) | (119,980 | ) | (130,401 | ) | ||||||||||
Net Expenses | 2,904,697 | 1,880,722 | 1,432,206 | 831,525 | 1,322,582 | |||||||||||||||
Net Investment Income | 3,469,032 | 2,224,527 | 1,059,217 | 970,565 | 1,004,788 | |||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments: | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | 13,920,583 | 385,755 | 877,420 | 30,877,617 | 30,368,941 | |||||||||||||||
Securities sold short | — | — | — | — | — | |||||||||||||||
Options written | — | — | — | — | — | |||||||||||||||
Distributions of realized gains by underlying investment companies | — | — | — | — | — | |||||||||||||||
Net payments by affiliates and net realized loss from trade error (Note 3) | — | — | — | — | — | |||||||||||||||
Total net realized gain | 13,920,583 | 385,755 | 877,420 | 30,877,617 | 30,368,941 | |||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (1,431,130 | ) | 2,773,302 | 5,343,701 | (27,942,494 | ) | (28,041,690 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | — | — | — | — | 297,122 | |||||||||||||||
Net change in unrealized appreciation (depreciation) on written options | — | — | — | — | — | |||||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 12,489,453 | 3,159,057 | 6,221,121 | 2,935,123 | 2,624,373 | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 15,958,485 | $ | 5,383,584 | $ | 7,280,338 | $ | 3,905,688 | $ | 3,629,161 |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
47 |
AdvisorOne Funds Semi-Annual Report |
Statements of Operations (Unaudited)(Continued) |
For the Six Months Ended October 31, 2014 |
Enhanced | Flexible | Select | ||||||||||||||
Income | Income | Appreciation | Shelter | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Investment Income: | ||||||||||||||||
Interest income | $ | 149 | $ | 243,370 | $ | 73 | $ | 137 | ||||||||
Dividend income | 661,941 | 2,057,415 | 693,702 | 823,957 | ||||||||||||
Securities lending income | — | 355,877 | 286,970 | — | ||||||||||||
Total investment income | 662,090 | 2,656,662 | 980,745 | 824,094 | ||||||||||||
Expenses: | ||||||||||||||||
Investment advisory fees | 433,039 | 564,178 | 463,249 | 392,978 | ||||||||||||
Administration fees | 50,568 | 85,035 | 49,011 | 49,030 | ||||||||||||
Transfer agent fees | 84,560 | 82,764 | 51,025 | 11,121 | ||||||||||||
Accounting fees | 20,685 | 24,811 | 20,353 | 20,207 | ||||||||||||
Professional fees | 8,208 | 10,205 | 8,780 | 7,302 | ||||||||||||
Registration & filing fees | 12,316 | 12,608 | 12,153 | 11,397 | ||||||||||||
Distribution fees (12b-1) - Class C Shares | — | — | — | — | ||||||||||||
Chief compliance officer fees | 1,361 | 2,374 | 1,422 | 602 | ||||||||||||
Insurance expense | 3,114 | 5,683 | 2,828 | 1,941 | ||||||||||||
Custodian fees | 3,628 | 6,359 | 3,579 | 2,495 | ||||||||||||
Printing and postage expense | 13,053 | 14,558 | 14,209 | 4,467 | ||||||||||||
Trustees’ fees | 7,014 | 7,229 | 5,896 | 6,307 | ||||||||||||
Interest expense | — | — | — | — | ||||||||||||
Miscellaneous fees and expenses | 1,338 | 1,622 | 1,480 | 406 | ||||||||||||
Total expenses before waivers | 638,884 | 817,426 | 633,985 | 508,253 | ||||||||||||
Expenses waived | (133,477 | ) | (122,536 | ) | (101,406 | ) | (55,754 | ) | ||||||||
Net Expenses | 505,407 | 694,890 | 532,579 | 452,499 | ||||||||||||
Net Investment Income | 156,683 | 1,961,772 | 448,166 | 371,595 | ||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments: | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | 98,409 | 54,278 | 2,170,575 | (1,021,581 | ) | |||||||||||
Securities sold short | — | — | — | — | ||||||||||||
Options written | 183,624 | — | — | — | ||||||||||||
Distributions of realized gains by underlying investment companies | — | — | — | — | ||||||||||||
Net payments by affiliates and net realized loss from trade error (Note 3) | — | — | — | — | ||||||||||||
Total net realized gain | 282,033 | 54,278 | 2,170,575 | (1,021,581 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on investments | 925,256 | (341,713 | ) | (558,769 | ) | 4,320,005 | ||||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on written options | (311,737 | ) | — | — | — | |||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 895,552 | (287,435 | ) | 1,611,806 | 3,298,424 | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,052,235 | $ | 1,674,337 | $ | 2,059,972 | $ | 3,670,019 |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
48 |
AdvisorOne Funds Semi-Annual Report |
Statements of Changes in Net Assets |
Amerigo Fund | Clermont Fund | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
October 31, 2014 | Year Ended | October 31, 2014 | Year Ended | |||||||||||||
(Unaudited) | April 30, 2014 | (Unaudited) | April 30, 2014 | |||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||
From Operations: | ||||||||||||||||
Net investment income | $ | 3,469,032 | $ | 3,722,124 | 2,224,527 | $ | 2,470,871 | |||||||||
Net realized gain (loss) on investments | 13,920,583 | 23,329,985 | 385,755 | 5,492,357 | ||||||||||||
Net realized gain (loss) on securities sold short | — | 598 | — | — | ||||||||||||
Net realized gain on written options | — | — | — | — | ||||||||||||
Distributions of realized gains by underlying investment companies | — | 688 | — | 129,719 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (1,431,130 | ) | 39,794,274 | 2,773,302 | 9,600,770 | |||||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on written options | — | — | — | — | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 15,958,485 | 66,847,669 | 5,383,584 | 17,693,717 | ||||||||||||
From Distributions to Shareholders: | ||||||||||||||||
From Net Investment Income: | ||||||||||||||||
Class N | — | (3,395,804 | ) | — | (8,227,856 | ) | ||||||||||
From Net Realized Gains: | ||||||||||||||||
Class N | — | — | — | (12,175,847 | ) | |||||||||||
Total Dividends and Distributions to Shareholders | — | (3,395,804 | ) | — | (20,403,703 | ) | ||||||||||
From Fund Share Transactions (Note 6) | 74,632,781 | (63,331,099 | ) | 115,862,820 | 7,817,257 | |||||||||||
Total Increase (Decrease) in Net Assets | 90,591,266 | 120,766 | 121,246,404 | 5,107,271 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 486,704,061 | 486,583,295 | 305,585,041 | 300,477,770 | ||||||||||||
End of year | $ | 577,295,327 | $ | 486,704,061 | 426,831,445 | $ | 305,585,041 | |||||||||
Undistributed (Overdistributed) net investment income at end of year | $ | 7,290,526 | $ | 3,821,494 | 2,322,238 | $ | 97,711 |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
49 |
AdvisorOne Funds Semi-Annual Report |
Statements of Changes in Net Assets (Continued) |
Select Allocation Fund | Descartes Fund | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
October 31, 2014 | Year Ended | October 31, 2014 | Year Ended | |||||||||||||
(Unaudited) | April 30, 2014 | (Unaudited) | April 30, 2014 | |||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||
From Operations: | ||||||||||||||||
Net investment income | $ | 1,059,217 | $ | 1,864,244 | $ | 970,565 | $ | 1,071,993 | ||||||||
Net realized gain (loss) on investments | 877,420 | 12,391,937 | 30,877,617 | 7,518,713 | ||||||||||||
Net realized gain (loss) on securities sold short | — | — | — | — | ||||||||||||
Net realized gain on written options | — | 857 | — | — | ||||||||||||
Distributions of realized gains by underlying investment companies | — | 19,565 | — | 162,542 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 5,343,701 | 9,910,413 | (27,942,494 | ) | 11,229,955 | |||||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on written options | — | — | — | — | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 7,280,338 | 24,187,016 | 3,905,688 | 19,983,203 | ||||||||||||
From Distributions to Shareholders: | ||||||||||||||||
From Net Investment Income: | ||||||||||||||||
Class N | — | (7,501,089 | ) | — | (2,501,224 | ) | ||||||||||
From Net Realized Gains: | ||||||||||||||||
Class N | — | (10,843,512 | ) | — | (6,000,662 | ) | ||||||||||
Total Dividends and Distributions to Shareholders | — | (18,344,601 | ) | — | (8,501,886 | ) | ||||||||||
From Fund Share Transactions (Note 6) | 61,457,533 | 3,191,845 | (145,207,454 | ) | (14,182,650 | ) | ||||||||||
Total Increase (Decrease) in Net Assets | 68,737,871 | 9,034,260 | (141,301,766 | ) | (2,701,333 | ) | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 234,426,889 | 225,392,629 | 164,119,898 | 166,821,231 | ||||||||||||
End of year | $ | 303,164,760 | $ | 234,426,889 | $ | 22,818,132 | $ | 164,119,898 | ||||||||
Undistributed (Overdistributed) net investment income at end of year | $ | 1,219,468 | $ | 160,251 | $ | 1,095,165 | $ | 124,600 |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
50 |
AdvisorOne Funds Semi-Annual Report |
Statements of Changes in Net Assets (Continued) |
Liahona Fund | Enhanced Income Fund | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
October 31, 2014 | Year Ended | October 31, 2014 | Year Ended | |||||||||||||
(Unaudited) | April 30, 2014 | (Unaudited) | April 30, 2014 | |||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||
From Operations: | ||||||||||||||||
Net investment income | $ | 1,004,788 | $ | 1,822,020 | $ | 156,683 | $ | 166,402 | ||||||||
Net realized gain (loss) on investments | 30,368,941 | 10,393,177 | 98,409 | 3,468,966 | ||||||||||||
Net realized gain (loss) on securities sold short | — | (336,324 | ) | — | — | |||||||||||
Net realized gain on written options | — | — | 183,624 | 169,210 | ||||||||||||
Distributions of realized gains by underlying investment companies | — | 7,296 | — | 52,500 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (28,041,690 | ) | 7,300,535 | 925,256 | 155,928 | |||||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | 297,122 | (225,099 | ) | — | — | |||||||||||
Net change in unrealized appreciation (depreciation) on written options | — | — | (311,737 | ) | (23,641 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | 3,629,161 | 18,961,605 | 1,052,235 | 3,989,365 | ||||||||||||
From Distributions to Shareholders: | ||||||||||||||||
From Net Investment Income: | ||||||||||||||||
Class N | — | (1,838,765 | ) | (190,118 | ) | (195,452 | ) | |||||||||
From Net Realized Gains: | ||||||||||||||||
Class N | — | (19,696,221 | ) | — | (3,400,183 | ) | ||||||||||
Total Dividends and Distributions to Shareholders | — | (21,534,986 | ) | (190,118 | ) | (3,595,635 | ) | |||||||||
From Fund Share Transactions (Note 6) | (239,032,457 | ) | 9,478,959 | 13,113,388 | (3,004,651 | ) | ||||||||||
Total Increase (Decrease) in Net Assets | (235,403,296 | ) | 6,905,578 | 13,975,505 | (2,610,921 | ) | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 255,231,179 | 248,325,601 | 92,656,126 | 95,267,047 | ||||||||||||
End of year | $ | 19,827,883 | $ | 255,231,179 | $ | 106,631,631 | $ | 92,656,126 | ||||||||
Undistributed (Overdistributed) net investment income at end of year | $ | 1,049,891 | $ | 45,103 | $ | (33,435 | ) | $ | — |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
51 |
AdvisorOne Funds Semi-Annual Report |
Statements of Changes in Net Assets (Continued) |
Flexible Income Fund | Select Appreciation Fund | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
October 31, 2014 | Year Ended | October 31, 2014 | Year Ended | |||||||||||||
(Unaudited) | April 30, 2014 | (Unaudited) | April 30, 2014 | |||||||||||||
Increase (Decrease) in Net Assets: | ||||||||||||||||
From Operations: | ||||||||||||||||
Net investment income | $ | 1,961,772 | $ | 3,382,585 | $ | 448,166 | $ | 554,397 | ||||||||
Net realized gain (loss) on investments | 54,278 | 53,921 | 2,170,575 | 2,103,997 | ||||||||||||
Net realized gain (loss) on securities sold short | — | — | — | — | ||||||||||||
Net realized gain on written options | — | — | — | — | ||||||||||||
Distributions of realized gains by underlying investment companies | — | 65,788 | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (341,713 | ) | (3,658,462 | ) | (558,769 | ) | 12,407,897 | |||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on written options | — | — | — | — | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,674,337 | (156,168 | ) | 2,059,972 | 15,066,291 | |||||||||||
From Distributions to Shareholders: | ||||||||||||||||
From Net Investment Income: | ||||||||||||||||
Class N | (1,875,125 | ) | (3,482,017 | ) | — | (1,400,547 | ) | |||||||||
From Net Realized Gains: | ||||||||||||||||
Class N | — | (2,005,920 | ) | — | (12,327,767 | ) | ||||||||||
Total Dividends and Distributions to Shareholders | (1,875,125 | ) | (5,487,937 | ) | — | (13,728,314 | ) | |||||||||
From Fund Share Transactions (Note 6) | 32,442,994 | 3,296,263 | 9,780,236 | 180,849 | ||||||||||||
Total Increase (Decrease) in Net Assets | 32,242,206 | (2,347,842 | ) | 11,840,208 | 1,518,826 | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 164,000,493 | 166,348,335 | 92,176,096 | 90,657,270 | ||||||||||||
End of year | $ | 196,242,699 | $ | 164,000,493 | $ | 104,016,304 | $ | 92,176,096 | ||||||||
Undistributed (Overdistributed) net investment income at end of year | $ | 542,618 | $ | 455,971 | $ | 448,166 | $ | — |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
52 |
AdvisorOne Funds Semi-Annual Report |
Statements of Changes in Net Assets (Continued) |
Shelter Fund | ||||||||
Six Months Ended | ||||||||
October 31, 2014 | Year Ended | |||||||
(Unaudited) | April 30, 2014 | |||||||
Increase (Decrease) in Net Assets: | ||||||||
From Operations: | ||||||||
Net investment income | $ | 371,595 | $ | 398,556 | ||||
Net realized gain (loss) on investments | (1,021,581 | ) | 3,111,750 | |||||
Net realized gain (loss) on securities sold short | — | — | ||||||
Net realized gain on written options | — | — | ||||||
Distributions of realized gains by underlying investment companies | — | — | ||||||
Net change in unrealized appreciation (depreciation) on investments | 4,320,005 | 4,052,027 | ||||||
Net change in unrealized appreciation (depreciation) on securities sold short | — | — | ||||||
Net change in unrealized appreciation (depreciation) on written options | — | — | ||||||
Net increase (decrease) in net assets resulting from operations | 3,670,019 | 7,562,333 | ||||||
From Distributions to Shareholders: | ||||||||
From Net Investment Income: | ||||||||
Class N | — | (178,166 | ) | |||||
From Net Realized Gains: | ||||||||
Class N | — | — | ||||||
Total Dividends and Distributions to Shareholders | — | (178,166 | ) | |||||
From Fund Share Transactions (Note 6) | 11,208,469 | 19,101,037 | ||||||
Total Increase (Decrease) in Net Assets | 14,878,488 | 26,485,204 | ||||||
Net Assets: | ||||||||
Beginning of year | 69,313,662 | 42,828,458 | ||||||
End of year | $ | 84,192,150 | $ | 69,313,662 | ||||
Undistributed (Overdistributed) net investment income at end of year | $ | 760,450 | $ | 388,855 |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
53 |
AdvisorOne Funds Semi-Annual Report |
Financial Highlights |
Amerigo Fund |
Selected data based on a share outstanding throughout each year indicated.
Class C Shares | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 31, | Fiscal Years Ending April 30, | |||||||||||||||||||||||
2014 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 16.56 | $ | 14.53 | $ | 13.00 | $ | 13.73 | $ | 11.80 | $ | 8.37 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) (b) | 0.03 | (0.04 | ) | (0.04 | ) | (0.05 | ) | (0.07 | ) | (0.07 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.40 | 2.07 | 1.57 | (0.68 | ) | 2.00 | 3.52 | |||||||||||||||||
Total income (loss) from investment operations | 0.43 | 2.03 | 1.53 | (0.73 | ) | 1.93 | 3.45 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | (0.02 | ) | |||||||||||||||||
Total distributions from net investment income | — | — | — | — | — | (0.02 | ) | |||||||||||||||||
Net asset value, end of year | $ | 16.99 | $ | 16.56 | $ | 14.53 | $ | 13.00 | $ | 13.73 | $ | 11.80 | ||||||||||||
Total return (c) | 2.60 | % (f) | 13.97 | % | 11.77 | % | (5.32 | )% | 16.36 | % | 41.17 | % | ||||||||||||
Ratios and Supplemental Data: | �� | |||||||||||||||||||||||
Net assets, end of year (in 000’s) | $ | 2,655 | $ | 2,689 | $ | 2,971 | $ | 3,146 | $ | 3,963 | $ | 4,130 | ||||||||||||
Ratio of expenses to average net assets (d) | 2.15 | % (e) | 2.15 | % | 2.15 | % | 2.15 | % | 2.15 | % | 2.15 | % | ||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements (d) | 2.18 | % (e) | 2.18 | % | 2.18 | % | 2.17 | % | 2.17 | % | 2.15 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets (b) | (0.23 | )% (e) | (0.23 | )% | (0.28 | )% | (0.41 | )% | (0.56 | )% | (0.64 | )% | ||||||||||||
Portfolio turnover rate | 12 | % (f) | 27 | % | 69 | % | 19 | % | 53 | % | 29 | % |
(a) | Net investment income (loss) has been calculated using the average shares method, which more appropriately presents the per share data for the year. |
(b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(c) | Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the Adviser and Gemini Fund Services, LLC (the “Administrator”) not absorbed a portion of the expenses, total returns would have been lower. |
(d) | Does not include the expenses of the investment companies in which the Fund invests. |
(e) | Annualized for periods less than one year. |
(f) | Not annualized. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
54 |
AdvisorOne Funds Semi-Annual Report |
Financial Highlights |
Amerigo Fund |
Selected data based on a share outstanding throughout each year indicated.
Class N Shares | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 31, | Fiscal Years Ending April 30, | |||||||||||||||||||||||
2014 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 17.61 | $ | 15.43 | $ | 13.72 | $ | 14.44 | $ | 12.34 | $ | 8.75 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) (b) | 0.13 | 0.13 | 0.10 | 0.08 | 0.06 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.53 | 2.17 | 1.67 | (0.71 | ) | 2.09 | 3.68 | |||||||||||||||||
Total income (loss) from investment operations | 0.66 | 2.30 | 1.77 | (0.63 | ) | 2.15 | 3.72 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.12 | ) | (0.06 | ) | (0.09 | ) | (0.05 | ) | (0.13 | ) | ||||||||||||
Total distributions from net investment income | (0.12 | ) | (0.12 | ) | (0.06 | ) | (0.09 | ) | (0.05 | ) | (0.13 | ) | ||||||||||||
Net asset value, end of year | $ | 18.15 | $ | 17.61 | $ | 15.43 | $ | 13.72 | $ | 14.44 | $ | 12.34 | ||||||||||||
Total return (c) | 3.07 | % (f) | 14.93 | % | 12.91 | % | -4.31 | % | 17.47 | % | 42.60 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000’s) | $ | 574,640 | $ | 484,015 | $ | 483,612 | $ | 500,675 | $ | 572,587 | $ | 555,827 | ||||||||||||
Ratio of expenses to average net assets (d) | 1.15 | % (e) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | ||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements (d) | 1.18 | % (e) | 1.18 | % | 1.18 | % | 1.17 | % | 1.17 | % | 1.15 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets (b) | 1.38 | % (e) | 0.78 | % | 0.72 | % | 0.59 | % | 0.46 | % | 0.37 | % | ||||||||||||
Portfolio turnover rate | 12 | % (f) | 27 | % | 69 | % | 19 | % | 53 | % | 29 | % |
(a) | Net investment income (loss) has been calculated using the average shares method, which more appropriately presents the per share data for the year. |
(b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(c) | Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the Adviser and Administrator not absorbed a portion of the expenses, total returns would have been lower. |
(d) | Does not include the expenses of the investment companies in which the Fund invests. |
(e) | Annualized for periods less than one year. |
(f) | Not annualized. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
55 |
AdvisorOne Funds Semi-Annual Report |
Financial Highlights |
Clermont Fund |
Selected data based on a share outstanding throughout each year indicated.
Class N Shares | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 31, | Fiscal Years Ending April 30, | |||||||||||||||||||||||
2014 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 10.82 | $ | 10.94 | $ | 10.10 | $ | 10.21 | $ | 9.31 | $ | 7.48 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) (b) | 0.08 | 0.09 | 0.19 | 0.20 | 0.23 | 0.22 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.08 | 0.56 | 0.83 | (0.10 | ) | 0.91 | 1.82 | |||||||||||||||||
Total income (loss) from investment operations | 0.16 | 0.65 | 1.02 | 0.10 | 1.14 | 2.04 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.31 | ) | (0.18 | ) | (0.21 | ) | (0.24 | ) | (0.21 | ) | |||||||||||||
Net realized gains | — | (0.46 | ) | — | — | — | — | |||||||||||||||||
Total distributions from net investment income and net realized gains | — | (0.77 | ) | (0.18 | ) | (0.21 | ) | (0.24 | ) | (0.21 | ) | |||||||||||||
Net asset value, end of year | $ | 10.98 | $ | 10.82 | $ | 10.94 | $ | 10.10 | $ | 10.21 | $ | 9.31 | ||||||||||||
Total return (c) | 1.48 | % (f) | 6.08 | % | 10.20 | % | 1.12 | % | 12.42 | % | 27.39 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000’s) | $ | 426,831 | $ | 305,585 | $ | 300,478 | $ | 278,309 | $ | 256,329 | $ | 215,419 | ||||||||||||
Ratio of expenses to average net assets (d) | 1.15 | % (e) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | ||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements (d) | 1.21 | % (e) | 1.23 | % | 1.22 | % | 1.22 | % | 1.23 | % | 1.22 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets (b) | 1.36 | % (e) | 0.82 | % | 1.83 | % | 2.09 | % | 2.38 | % | 2.58 | % | ||||||||||||
Portfolio turnover rate | 16 | % (f) | 39 | % | 89 | % | 13 | % | 27 | % | 27 | % |
(a) | Net investment income (loss) has been calculated using the average shares method, which more appropriately presents the per share data for the year. |
(b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(c) | Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the Adviser and Administrator not absorbed a portion of the expenses, total returns would have been lower. |
(d) | Does not include the expenses of the investment companies in which the Fund invests. |
(e) | Annualized for periods less than one year. |
(f) | Not annualized. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
56 |
AdvisorOne Funds Semi-Annual Report |
Financial Highlights |
Select Allocation Fund |
Selected data based on a share outstanding throughout each year indicated.
Class N Shares | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 31, | Fiscal Years Ending April 30, | |||||||||||||||||||||||
2014 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 11.17 | $ | 10.91 | $ | 9.81 | $ | 10.22 | $ | 8.92 | $ | 6.58 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) (b) | 0.05 | 0.09 | 0.15 | 0.16 | 0.16 | 0.15 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.27 | 1.10 | 1.06 | (0.41 | ) | 1.31 | 2.36 | |||||||||||||||||
Total income (loss) from investment operations | 0.32 | 1.19 | 1.21 | (0.25 | ) | 1.47 | 2.51 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.38 | ) | (0.11 | ) | (0.16 | ) | (0.17 | ) | (0.17 | ) | |||||||||||||
Net realized gains | — | (0.55 | ) | — | — | — | — | |||||||||||||||||
Total distributions from net investment income and net realized gains | — | (0.93 | ) | (0.11 | ) | (0.16 | ) | (0.17 | ) | (0.17 | ) | |||||||||||||
Net asset value, end of year | $ | 11.49 | $ | 11.17 | $ | 10.91 | $ | 9.81 | $ | 10.22 | $ | 8.92 | ||||||||||||
Total return (c) | 2.87 | % (f) | 11.04 | % | 12.43 | % | (2.31 | )% | 16.57 | % | 38.27 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000’s) | $ | 303,165 | $ | 234,427 | $ | 225,393 | $ | 230,562 | $ | 240,800 | $ | 189,223 | ||||||||||||
Ratio of expenses to average net assets (d) | 1.15 | % (e) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | ||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements (d) | 1.26 | % (e) | 1.28 | % | 1.27 | % | 1.27 | % | 1.25 | % | 1.28 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets (b) | 0.85 | % (e) | 0.81 | % | 1.45 | % | 1.68 | % | 1.74 | % | 1.80 | % | ||||||||||||
Portfolio turnover rate | 11 | % (f) | 46 | % | 69 | % | 33 | % | 26 | % | 40 | % |
(a) | Net investment income (loss) has been calculated using the average shares method, which more appropriately presents the per share data for the year. |
(b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(c) | Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the Adviser and Administrator not absorbed a portion of the expenses, total returns would have been lower. |
(d) | Does not include the expenses of the investment companies in which the Fund invests. |
(e) | Annualized for periods less than one year. |
(f) | Not annualized. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
57 |
AdvisorOne Funds Semi-Annual Report |
Financial Highlights |
Descartes Fund |
Selected data based on a share outstanding throughout each year indicated.
Class N Shares | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 31, | Fiscal Years Ending April 30, | |||||||||||||||||||||||
2014 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 12.84 | $ | 11.98 | $ | 10.95 | $ | 11.29 | $ | 9.48 | $ | 6.87 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) (b) | 0.09 | 0.08 | 0.09 | 0.06 | 0.05 | 0.06 | ||||||||||||||||||
Net realized and unrealized gain (loss) on on investments | 0.53 | 1.45 | 1.00 | (0.34 | ) | 1.82 | 2.63 | |||||||||||||||||
Total income (loss) from investment operations | 0.62 | 1.53 | 1.09 | (0.28 | ) | 1.87 | 2.69 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.20 | ) | (0.06 | ) | (0.06 | ) | (0.06 | ) | (0.08 | ) | |||||||||||||
Net realized gains | — | (0.47 | ) | — | — | — | — | |||||||||||||||||
Total distributions from net investment income and net realized gains | — | (0.67 | ) | (0.06 | ) | (0.06 | ) | (0.06 | ) | (0.08 | ) | |||||||||||||
Net asset value, end of year | $ | 13.46 | $ | 12.84 | $ | 11.98 | $ | 10.95 | $ | 11.29 | $ | 9.48 | ||||||||||||
Total return (c) | 4.83 | % (f) | 12.90 | % | 10.03 | % | (2.43 | )% | 19.80 | % | 39.21 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000’s) | $ | 22,818 | $ | 164,120 | $ | 166,821 | $ | 173,670 | $ | 191,297 | $ | 156,512 | ||||||||||||
Ratio of expenses to average net assets (d) | 1.15 | % (e) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | ||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements (d) | 1.32 | % (e) | 1.30 | % | 1.27 | % | 1.26 | % | 1.26 | % | 1.27 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets (b) | 1.35 | % (e) | 0.65 | % | 0.83 | % | 0.57 | % | 0.53 | % | 0.68 | % | ||||||||||||
Portfolio turnover rate | 8 | % (f) | 39 | % | 60 | % | 43 | % | 25 | % | 27 | % |
(a) | Net investment income (loss) has been calculated using the average shares method, which more appropriately presents the per share data for the year. |
(b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(c) | Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the Adviser and Administrator not absorbed a portion of the expenses, total returns would have been lower. |
(d) | Does not include the expenses of the investment companies in which the Fund invests. |
(e) | Annualized for periods less than one year. |
(f) | Not annualized. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
58 |
AdvisorOne Funds Semi-Annual Report |
Financial Highlights |
Liahona Fund |
Selected data based on a share outstanding throughout each year indicated.
Class N Shares | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 31, | Fiscal Years Ending April 30, | |||||||||||||||||||||||
2014 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 10.61 | $ | 10.75 | $ | 10.16 | $ | 10.48 | $ | 9.17 | $ | 7.18 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) (b) | 0.05 | 0.08 | 0.10 | 0.09 | 0.11 | 0.12 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.35 | 0.73 | 0.77 | (0.12 | ) | 1.32 | 2.00 | |||||||||||||||||
Total income (loss) from investment operations | 0.40 | 0.81 | 0.87 | (0.03 | ) | 1.43 | 2.12 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.08 | ) | (0.09 | ) | (0.10 | ) | (0.12 | ) | (0.13 | ) | |||||||||||||
Net realized gains | — | (0.87 | ) | (0.19 | ) | (0.19 | ) | — | — | |||||||||||||||
Total distributions from net investment income and net realized gains | — | (0.95 | ) | (0.28 | ) | (0.29 | ) | (0.12 | ) | (0.13 | ) | |||||||||||||
Net asset value, end of year | $ | 11.01 | $ | 10.61 | $ | 10.75 | $ | 10.16 | $ | 10.48 | $ | 9.17 | ||||||||||||
Total return (c) | 3.77 | % (f) | 7.75 | % | 8.66 | % | (0.09 | )% | 15.72 | % | 29.57 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000’s) | $ | 19,828 | $ | 255,231 | $ | 248,326 | $ | 233,472 | $ | 229,715 | $ | 167,282 | ||||||||||||
Ratio of expenses to average net assets, including dividends from securities sold short and interest income (d) | 1.18 | % (e) | 1.23 | % | — | — | — | — | ||||||||||||||||
Ratio of expenses to average net assets, excluding dividends from securities sold short and interest income (d) | 1.15 | % (e) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | ||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements, including dividends from securities sold short (d) | 1.29 | % (e) | 1.33 | % | — | — | — | — | ||||||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements, excluding dividends from securities sold short (d) | 1.19 | % (e) | 1.25 | % | 1.24 | % | 1.24 | % | 1.24 | % | 1.29 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets (b) | 0.89 | % (e) | 0.72 | % | 0.93 | % | 0.91 | % | 1.17 | % | 1.40 | % | ||||||||||||
Portfolio turnover rate | 20 | % (f) | 44 | % | 84 | % | 46 | % | 22 | % | 7 | % |
(a) | Net investment income (loss) has been calculated using the average shares method, which more appropriately presents the per share data for the year. |
(b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(c) | Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the Adviser and Administrator not absorbed a portion of the expenses, total returns would have been lower. |
(d) | Does not include the expenses of the investment companies in which the Fund invests. |
(e) | Annualized for years less than one year. |
(f) | Not annualized. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
59 |
AdvisorOne Funds Semi-Annual Report |
Financial Highlights |
Enhanced Income Fund |
Selected data based on a share outstanding throughout each period indicated.
Class N Shares | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
October 31, | Fiscal Years Ending April 30, | |||||||||||||||||||||||
2014 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 10.51 | $ | 10.49 | $ | 10.16 | $ | 11.11 | $ | 10.58 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) (b) | 0.02 | 0.02 | 0.06 | 0.09 | 0.11 | 0.06 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.10 | 0.42 | 0.47 | (0.22 | ) | 0.83 | 0.57 | |||||||||||||||||
Total income (loss) from investment operations | 0.12 | 0.44 | 0.53 | (0.13 | ) | 0.94 | 0.63 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.02 | ) | (0.02 | ) | (0.07 | ) | (0.35 | ) | (0.11 | ) | (0.05 | ) | ||||||||||||
Net realized gains | — | (0.40 | ) | (0.09 | ) | (0.47 | ) | (0.30 | ) | (0.00 | ) (c) | |||||||||||||
Return of capital | — | — | (0.04 | ) | — | — | — | |||||||||||||||||
Total distributions from net investment income, net realized gains and return of capital | (0.02 | ) | (0.42 | ) | (0.20 | ) | (0.82 | ) | (0.41 | ) | (0.05 | ) | ||||||||||||
Net asset value, end of year | $ | 10.61 | $ | 10.51 | $ | 10.49 | $ | 10.16 | $ | 11.11 | $ | 10.58 | ||||||||||||
Total return (d) | 1.15 | % (h)(e) | 4.18 | % | 5.22 | % | (0.83 | )% | 9.11 | % | 6.32 | % (e) | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000’s) | $ | 106,632 | $ | 92,656 | $ | 95,267 | $ | 81,665 | $ | 88,164 | $ | 53,124 | ||||||||||||
Ratio of expenses to average net assets (f) | 1.05 | % (g) | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | % (g) | ||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements (f) | 1.33 | % (g) | 1.37 | % | 1.36 | % | 1.26 | % | 1.36 | % | 1.90 | % (g) | ||||||||||||
Ratio of net investment income (loss) to average net assets (b) | 0.33 | % (g) | 0.18 | % | 0.60 | % | 0.89 | % | 1.02 | % | 1.07 | % (g) | ||||||||||||
Portfolio turnover rate | 57 | % (e) | 58 | % | 51 | % | 184 | % | 86 | % | 3 | % (e) |
(a) | Net investment income (loss) has been calculated using the average shares method, which more appropriately presents the per share data for the period. |
(b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(c) | Amount represents less than $0.01 per share. |
(d) | Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the Adviser and Administrator not absorbed a portion of the expenses, total returns would have been lower. |
(e) | Not annualized. |
(f) | Does not include the expenses of the investment companies in which the Fund invests. |
(g) | Annualized for periods less than one year. |
(h) | There was no effect on total return due to the trade error. (Note 3) |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
60 |
AdvisorOne Funds Semi-Annual Report |
Financial Highlights |
Flexible Income Fund |
Selected data based on a share outstanding throughout each period indicated.
Class N Shares | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | Year Ended | Year Ended | Year Ended | Year Ended | Period Ended | |||||||||||||||||||
October 31, | April 30, | April 30, | April 30, | April 30, | April 30, | |||||||||||||||||||
2014 | 2014 | 2013 | 2012 | 2011 | 2010* | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 10.40 | $ | 10.76 | $ | 10.58 | $ | 10.37 | $ | 10.11 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) (b) | 0.12 | 0.22 | 0.26 | 0.28 | 0.32 | 0.15 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.00 | ) | (0.23 | ) | 0.23 | 0.22 | 0.29 | 0.06 | ||||||||||||||||
Total income (loss) from investment operations | 0.12 | (0.01 | ) | 0.49 | 0.50 | 0.61 | 0.21 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.22 | ) | (0.26 | ) | (0.29 | ) | (0.32 | ) | (0.10 | ) | ||||||||||||
Net realized gains | — | (0.13 | ) | (0.05 | ) | — | (0.03 | ) | — | |||||||||||||||
Total distributions from net investment income and net realized gains | (0.13 | ) | (0.35 | ) | (0.31 | ) | (0.29 | ) | (0.35 | ) | (0.10 | ) | ||||||||||||
Net asset value, end of year | $ | 10.39 | $ | 10.40 | $ | 10.76 | $ | 10.58 | $ | 10.37 | $ | 10.11 | ||||||||||||
Total return (c) | 1.60 | % (d) | (0.01 | )% | 4.76 | % | 4.94 | % | 6.10 | % | 2.15 | % (d) | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000’s) | $ | 196,243 | $ | 164,000 | $ | 166,348 | $ | 143,125 | $ | 107,627 | $ | 67,364 | ||||||||||||
Ratio of expenses to average net assets (e) | 0.80 | % (f) | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % (f) | ||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements (e) | 0.94 | % (f) | 0.97 | % | 0.98 | % | 0.98 | % | 1.01 | % | 1.48 | % (f) | ||||||||||||
Ratio of net investment income (loss) to average net assets (b) | 2.26 | % (f) | 2.08 | % | 2.40 | % | 2.71 | % | 3.07 | % | 2.64 | % (f) | ||||||||||||
Portfolio turnover rate | 1 | % (d) | 24 | % | 51 | % | 8 | % | 10 | % | 3 | % (d) |
* | The Flexible Income Fund commenced operations on October 5, 2009. |
(a) | Net investment income (loss) has been calculated using the average shares method, which more appropriately presents the per share data for the period. |
(b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(c) | Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the Adviser and Administrator not absorbed a portion of the expenses, total returns would have been lower. |
(d) | Not annualized. |
(e) | Does not include the expenses of the investment companies in which the Fund invests. |
(f) | Annualized for periods less than one year. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
61 |
AdvisorOne Funds Semi-Annual Report |
Financial Highlights |
Select Appreciation Fund |
Selected data based on a share outstanding throughout each period indicated.
Class N Shares | ||||||||||||||||||||||||
Six Months | Year | Year | Year | Year | Period | |||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
October 31, | April 30, | April 30, | April 30, | April 30, | April 30, | |||||||||||||||||||
2014 | 2014 | 2013 | 2012 | 2011 | 2010* | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 13.47 | $ | 13.37 | $ | 12.52 | $ | 13.37 | $ | 11.25 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) (b) | 0.07 | 0.08 | 0.05 | 0.05 | 0.04 | 0.01 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.19 | 2.26 | 1.35 | (0.57 | ) | 2.15 | 1.30 | |||||||||||||||||
Total income from investment operations | 0.26 | 2.34 | 1.40 | (0.52 | ) | 2.19 | 1.31 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.23 | ) | (0.05 | ) | — | (0.05 | ) | (0.06 | ) | ||||||||||||||
Net realized gains | — | (2.01 | ) | (0.50 | ) | (0.33 | ) | (0.02 | ) | (0.00 | ) (c) | |||||||||||||
Total distributions from net investment income and net realized gains | — | (2.24 | ) | (0.55 | ) | (0.33 | ) | (0.07 | ) | (0.06 | ) | |||||||||||||
Net asset value, end of year | $ | 13.73 | $ | 13.47 | $ | 13.37 | $ | 12.52 | $ | 13.37 | $ | 11.25 | ||||||||||||
Total return (d) | 1.93 | % (e) | 17.87 | % | 11.55 | % | (3.54 | )% | 19.50 | % | 13.14 | % (e) | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000’s) | $ | 104,016 | $ | 92,176 | $ | 90,657 | $ | 83,544 | $ | 89,200 | $ | 66,472 | ||||||||||||
Ratio of expenses to average net assets (f) | 1.15 | % (g) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % (g) | ||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements (f) | 1.37 | % (g) | 1.37 | % | 1.38 | % | 1.37 | % | 1.35 | % | 1.90 | % (g) | ||||||||||||
Ratio of net investment income (loss) to average net assets (b) | 0.97 | % (g) | 0.61 | % | 0.42 | % | 0.40 | % | 0.37 | % | 0.23 | % (g) | ||||||||||||
Portfolio turnover rate | 19 | % (e) | 24 | % | 162 | % | 49 | % | 42 | % | 20 | % (e) |
* | The Select Appreciation Fund commenced operations on October 5, 2009. |
(a) | Net investment income (loss) has been calculated using the average shares method, which more appropriately presents the per share data for the period. |
(b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(c) | Amount represents less than $0.01 per share. |
(d) | Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the Adviser and Administrator not absorbed a portion of the expenses, total returns would have been lower. |
(e) | Not annualized. |
(f) | Does not include the expenses of the investment companies in which the Fund invests. |
(g) | Annualized for periods less than one year. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
62 |
AdvisorOne Funds Semi-Annual Report |
Financial Highlights |
Shelter Fund |
Selected data based on a share outstanding throughout each period indicated.
Class N Shares | ||||||||||||||||||||||||
Six Months | Year | Year | Year | Year | Period | |||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
October 31, | April 30, | April 30, | April 30, | April 30, | April 30, | |||||||||||||||||||
2014 | 2014 | 2013 | 2012 | 2011 | 2010* | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Net asset value, beginning of year | $ | 12.21 | $ | 10.59 | $ | 9.93 | $ | 11.74 | $ | 10.44 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) (b) | 0.06 | 0.09 | 0.04 | (0.02 | ) | 0.04 | (0.01 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.53 | 1.57 | 0.62 | (1.70 | ) | 1.31 | 0.45 | |||||||||||||||||
Total income from investment operations | 0.59 | 1.66 | 0.66 | (1.72 | ) | 1.35 | 0.44 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.04 | ) | — | — | (0.05 | ) | — | ||||||||||||||||
Net realized gains | — | — | — | (0.09 | ) | — | — | |||||||||||||||||
Total distributions from net investment income and net realized gains | — | (0.04 | ) | — | (0.09 | ) | (0.05 | ) | — | |||||||||||||||
Net asset value, end of year | $ | 12.80 | $ | 12.21 | $ | 10.59 | $ | 9.93 | $ | 11.74 | $ | 10.44 | ||||||||||||
Total return (c) | 4.83 | % (d) | 15.66 | % | 6.65 | % | (14.60 | )% | 12.95 | % | 4.40 | % (d) | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of year (in 000’s) | $ | 84,192 | $ | 69,314 | $ | 42,828 | $ | 63,207 | $ | 57,492 | $ | 12,444 | ||||||||||||
Ratio of expenses to average net assets (e) | 1.15 | % (f) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % (f) | ||||||||||||
Ratio of expenses to average net assets before waivers and reimbursements (e) | 1.37 | % (f) | 1.37 | % | 1.37 | % | 1.29 | % | 1.34 | % | 4.05 | % (f) | ||||||||||||
Ratio of net investment income (loss) to average net assets (b) | 0.94 | % (f) | 0.75 | % | 0.39 | % | (0.15 | )% | 0.37 | % | (0.26 | )%(f) | ||||||||||||
Portfolio turnover rate | 41 | % (d) | 158 | % | 291 | % | 311 | % | 89 | % | 0 | % (d) |
* | Fund commenced operations on December 30, 2009. |
(a) | Net investment income (loss) has been calculated using the average shares method, which more appropriately presents the per share data for the period. |
(b) | Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. |
(c) | Total returns are historical and assume changes in share price, reinvestment of dividends and capital gains distributions, and assume no sales charge. Had the Adviser and Administrator not absorbed a portion of the expenses, total returns would have been lower. |
(d) | Not annualized. |
(e) | Does not include the expenses of the investment companies in which the Fund invests. |
(f) | Annualized for periods less than one year. |
Refer to the Notes to Financial Statements at the back of this Report for further information regarding the values set forth above.
63 |
AdvisorOne Funds Semi-Annual Report |
Notes to Financial Statements (Unaudited) |
October 31, 2014 |
1. | Organization |
AdvisorOne Funds (the “Trust” or the “Funds”) was organized as a Delaware Business Trust in December 1996 and is registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as an open-end management investment company. Amerigo Fund, Clermont Fund, Select Allocation Fund, Descartes Fund, Liahona Fund, Enhanced Income Fund, Flexible Income Fund, Select Appreciation Fund, and Shelter Fund (collectively the “Funds” and each individually a “Fund”) are each a diversified series of the Trust.
Fund | Primary Objective | |
Amerigo Fund | Long-term growth of capital without regard to current income | |
Clermont Fund | Combination of current income and growth of capital | |
Select Allocation Fund | Total return, consisting of capital growth and income | |
Descartes Fund | Long-term growth of capital without regard to current income | |
Liahona Fund | Growth of capital and current income | |
Enhanced Income Fund | Total return, consisting of capital growth and income | |
Flexible Income Fund | Total return, consisting of capital growth and income, consistent with preservation of capital | |
Select Appreciation Fund | Long-term growth | |
Shelter Fund | Limiting the impact of large equity market declines. The Fund’s secondary investment objective is growth of capital. |
The Funds offer the following classes of shares:
Class | Funds Offering Class | |
Class C | Amerigo Fund | |
Class N | Amerigo Fund, Clermont Fund, Select Allocation Fund, Descartes Fund, Liahona Fund, Enhanced Income Fund, Flexible Income Fund, Select Appreciation Fund, and Shelter Fund |
Class C Shares are offered subject to a 1.00% contingent deferred sales charge applied to redemptions occurring within eighteen months of purchase. Class N shares are offered at net asset value.
2. | Summary of Significant Accounting Policies |
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
64 |
AdvisorOne Funds Semi-Annual Report |
Notes to Financial Statements (Unaudited)(Continued) |
October 31, 2014 |
Security Valuation – Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (“NOCP”). In the absence of a sale such securities shall be valued at the mean between the current bid and ask prices on the day of valuation. Exchange traded options, futures and options on futures are valued at the settlement price determined by the exchange. Short-term investments that mature in 60 days or less may be valued at amortized cost, provided such valuations represent fair value. Debt securities (other than short-term obligations) are valued each day by an independent pricing service approved by the Trust’s Board of Trustees (the “Board”) based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, and general market conditions or market quotations from a major market maker in the securities.
The Funds 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 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 valuation consultant 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 Valuation Process – This team is composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) 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, the prices or values available do not represent the fair value of the instrument. Factors which may cause the 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 based upon the current bid for the security
65 |
AdvisorOne Funds Semi-Annual Report |
Notes to Financial Statements (Unaudited)(Continued) |
October 31, 2014 |
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 a 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.
Valuation of Fund of Funds – The Funds may invest in portfolios of open-end or closed-end investment companies (the “Underlying Funds”). The Underlying Funds value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value to the methods established by the board of directors of the Underlying Funds.
Open-ended investment companies are valued at their respective net asset values as reported by such investment companies. The shares of many closed-end investment companies, after their initial public offering, frequently trade at a price per share, which is different than the net asset value per share. The difference represents a market premium or market discount of such shares. There can be no assurances that the market discount or market premium on shares of any closed-end investment company purchased by the Funds will not change.
The Funds utilize various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:
Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that a Fund has the ability to access.
Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing a Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the
66 |
AdvisorOne Funds Semi-Annual Report |
Notes to Financial Statements (Unaudited)(Continued) |
October 31, 2014 |
security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.
Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following table summarizes the inputs used as of October 31, 2014 for the Funds’ investments measured at fair value:
Amerigo Fund | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Equity Funds | $ | 561,113,148 | $ | — | $ | — | $ | 561,113,148 | ||||||||
Money Market Funds | 16,617,144 | — | — | 16,617,144 | ||||||||||||
Collateral for Securities Loaned | 74,822,397 | — | — | 74,822,397 | ||||||||||||
Total | $ | 652,552,689 | $ | — | $ | — | $ | 652,552,689 |
Clermont Fund | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Bond Funds | $ | 156,967,940 | $ | — | $ | — | $ | 156,967,940 | ||||||||
Equity Funds | 258,518,645 | — | — | 258,518,645 | ||||||||||||
Money Market Funds | 13,144,465 | — | — | 13,144,465 | ||||||||||||
Collateral for Securities Loaned | 52,426,887 | — | — | 52,426,887 | ||||||||||||
Total | $ | 481,057,937 | $ | — | $ | — | $ | 481,057,937 |
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Select Allocation Fund | ||||||||||||||||
Common Stock | $ | 3,816,557 | $ | — | $ | — | $ | 3,816,557 | ||||||||
Bond Funds | 56,502,891 | — | — | 56,502,891 | ||||||||||||
Equity Funds | 236,051,124 | — | — | 236,051,124 | ||||||||||||
Money Market Funds | 10,754,574 | — | — | 10,754,574 | ||||||||||||
Collateral for Securities Loaned | 68,369,049 | — | — | 68,369,049 | ||||||||||||
Total | $ | 375,494,195 | $ | — | $ | — | $ | 375,494,195 |
Descartes Fund | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Equity Funds | $ | 22,928,788 | $ | — | $ | — | $ | 22,928,788 | ||||||||
Collateral for Securities Loaned | 4,000,000 | — | — | 4,000,000 | ||||||||||||
Total | $ | 26,928,788 | $ | — | $ | — | $ | 26,928,788 |
Liahona Fund | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Bond Funds | $ | 2,879,800 | $ | — | $ | — | $ | 2,879,800 | ||||||||
Equity Funds | 16,787,092 | — | — | 16,787,092 | ||||||||||||
Money Market Funds | 254,158 | — | — | 254,158 | ||||||||||||
Collateral for Securities Loaned | 3,390,860 | — | — | 3,390,860 | ||||||||||||
Total | $ | 23,311,910 | $ | — | $ | — | $ | 23,311,910 |
Enhanced Income Fund | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Equity Funds | $ | 107,135,351 | $ | — | $ | — | $ | 107,135,351 | ||||||||
Money Market Funds | 735,698 | — | — | 735,698 | ||||||||||||
Total | $ | 107,871,049 | $ | — | $ | — | $ | 107,871,049 |
Liabilities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Written Options | $ | 434,618 | $ | — | $ | — | $ | 434,618 | ||||||||
Total | $ | 434,618 | $ | — | $ | — | $ | 434,618 |
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Flexible Income Fund | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Bond Funds | $ | 154,715,980 | $ | — | $ | — | $ | 154,715,980 | ||||||||
Equity Funds | 18,817,221 | — | — | 18,817,221 | ||||||||||||
U.S. Government & Agency Obligations | — | 16,255,776 | — | 16,255,776 | ||||||||||||
Money Market Funds | 9,129,562 | — | — | 9,129,562 | ||||||||||||
Collateral for Securities Loaned | 25,278,085 | — | — | 25,278,085 | ||||||||||||
Total | $ | 207,940,848 | $ | 16,255,776 | $ | — | $ | 224,196,624 |
Select Appreciation Fund | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Equity Funds | $ | 103,577,018 | $ | — | $ | — | $ | 103,577,018 | ||||||||
Money Market Funds | 1,634,730 | — | — | 1,634,730 | ||||||||||||
Collateral for Securities Loaned | 29,151,236 | — | — | 29,151,236 | ||||||||||||
Total | $ | 134,362,984 | $ | — | $ | — | $ | 134,362,984 |
Shelter Fund | ||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Equity Funds | $ | 82,580,994 | $ | — | $ | — | $ | 82,580,994 | ||||||||
Money Market Funds | 2,412,977 | — | — | 2,412,977 | ||||||||||||
Total | $ | 84,993,971 | $ | — | $ | — | $ | 84,993,971 |
The Funds did not hold any Level 3 securities during the period. There were no transfers into or out of Level 1 & Level 2 during the period. It is the Funds’ policy to recognize transfers between Level 1 & Level 2 at the end of the reporting period.
Refer to the Schedules of Investments for security classifications.
Foreign Currency Translations
The accounting records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency, and income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions. Purchases and sales of securities are translated into U.S. dollars at the contractual currency rates established at the approximate time of the trade.
Net realized gains and losses on foreign currency transactions represent net gains and losses from currency realized between the trade and settlement dates on securities transactions and the difference between income accrued versus income received. The effects of changes in foreign currency exchange rates on investments in securities are included with the net realized and unrealized gain or loss on investment securities.
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Exchange Traded Funds
The Funds may invest in exchange traded funds (“ETFs”). ETFs are a type of index fund bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. A Fund may purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity on an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.
Exchange Traded Notes
The Funds may invest in exchange traded notes (“ETNs”). ETNs are a type of debt security that is linked to the performance of underlying securities. The risks of owning ETNs generally reflect the risks of owning the underlying securities they are designed to track. In addition, ETNs are subject to credit risk generally to the same extent as debt securities.
Options Transactions
The Funds are subject to equity price risk in the normal course of pursuing their investment objectives and may purchase or sell options to help hedge against this risk.
The Funds may write call options only if they (i) own an offsetting position in the underlying security or (ii) have an absolute or immediate right to acquire that security without additional cash consideration or exchange of other securities held in its portfolio.
When a Fund writes a call option, an amount equal to the premium received is included in the statement of assets and liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option. If an option expires on its stipulated expiration date or if a Fund enters into a closing purchase transaction, a gain or loss is realized. If a written call option is exercised, a gain or loss is realized for the sale of the underlying security and the proceeds from the sale are increased by the premium originally received. As writer of an option, a Fund has no control over whether the option will be exercised and, as a result, retains the market risk of an unfavorable change in the price of the security underlying the written option.
The Funds may purchase put and call options. Put options are purchased to hedge against a decline in the value of securities held in a Fund’s portfolio. If such a decline occurs, the put options will permit the Fund to sell the securities underlying such options at the exercise price, or to close out the options at a profit. The premium paid for a put or call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises or declines sufficiently, the option may expire worthless to the Fund. In addition, in the event that the price of the security in connection with which an option was purchased moves in a direction favorable to the Fund, the benefits realized by the Fund as a result of such favorable movement will be reduced by the amount of the premium paid for the option and related transaction costs. Written and purchased options are non-income producing securities. With
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purchased options, there is minimal counterparty credit risk to the Fund since these options are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded options, guarantees against a possible default.
For the six months ended October 31, 2014, the Enhanced Income Fund had options written located on the Statements of Assets and Liabilities in the liabilities section in the amount of $434,618.
For the six months ended October 31, 2014, the Fund’s net realized gains, stated in the table below, on options subject to equity price risk are included in the line item marked “Net realized gain (loss) on options written” and the Fund’s net unrealized appreciation/depreciation, stated below, on options subject to equity price risk included in the line item marked “Net change in unrealized appreciation (depreciation) on written options” on the Statements of Operations in this shareholder report and serve as an indicator of the volume of derivative activity for the Fund.
Change in Unrealized | ||||||||||||
Fair Value of | Net Realized | Appreciation/ | ||||||||||
Liability Derivatives | Gain | (Depreciation) | ||||||||||
Enhanced Income Fund | $ | 434,618 | $ | 183,624 | $ | (311,737 | ) |
As of October 31, 2014, portfolio securities valued at $104,821,151 were held in escrow by the custodian for call options written for the Enhanced Income Fund.
The number of option contracts written and the premiums received during the six months ended October 31, 2014, were as follows:
Enhanced Income Fund | ||||||||
Number of Contracts | Premiums Received | |||||||
Options outstanding, beginning of period | 3,723 | $ | 44,595 | |||||
Options written | 30,004 | 336,248 | ||||||
Options exercised | (879 | ) | (11,224 | ) | ||||
Options expired | (20,184 | ) | (224,849 | ) | ||||
Options closed | (1,243 | ) | (15,665 | ) | ||||
Options outstanding, end of period | 11,421 | $ | 129,105 |
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Offsetting of Financial Assets and Derivative Assets
The following table presents the Fund’s liability derivatives available for offset under a master netting arrangement net of collateral pledged as of October 31, 2014.
Enhanced Income Fund
Gross Amounts of Assets Presented in the | ||||||||||||||||
Liabilities: | Statement of Assets & Liabilities | |||||||||||||||
Gross Amounts of | Financial | |||||||||||||||
Recognized | Instruments | Cash Collateral | Net Amount of | |||||||||||||
Description | Liabilities | Pledged | Pledged | Assets | ||||||||||||
Options Written Contracts | $ | 434,618 | (1) | $ | 434,618 | (2) | $ | — | $ | — | ||||||
Total | $ | 434,618 | $ | 434,618 | $ | — | $ | — |
(1) | Written options at value as presented in the Schedule of Investments. |
(2) | The amount is limited to the derivative liability balance and accordingly, does not include excess collateral pledged. |
Securities Sold Short
A “short sale” is a transaction in which a Fund sells a security it does not own but has borrowed in anticipation that the market price of that security will decline. The Funds are obligated to replace the security borrowed by purchasing it on the open market at a later date. If the price of the security sold short increases between the time of the short sale and the time a Fund replaces the borrowed security, a Fund will incur a loss, unlimited in size. Conversely, if the price declines, a Fund will realize a gain, limited to the price at which a Fund sold the security short.
Income Taxes
It is each Fund’s policy to comply with all sections of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income and gains to its shareholders and therefore, no provision for federal income tax has been made. Each Fund is treated as a separate taxpayer for federal income tax purposes.
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2011-2013), or expected to be taken in the Funds’ 2014 tax returns. The Funds identified their major tax jurisdictions as U.S. Federal, Nebraska and foreign jurisdictions where the Funds make significant investments; however, the Funds are not aware of any tax positions for which it is reasonably
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possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.
Security Transactions and Related Income
Investment security transactions are accounted for on a trade date basis. Cost is determined and gains and losses are based upon the specific identification method for both financial statement and Federal income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Purchase discounts and premiums on securities are accreted and amortized over the life of the respective securities.
Expenses
Expenses of the Trust that are directly identifiable to a specific Fund, are charged to that Fund. Expenses, which are not readily identifiable to a specific Fund, are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative sizes of the Funds. Each Fund’s income, expenses (other than the class specific distribution fees) and realized and unrealized gains and losses are allocated proportionally each day between the classes based upon the relative net assets of each class.
Distributions to Shareholders
Income will normally be declared and distributed annually for all of the Funds with exception of Enhanced Income and Flexible Income. Income will normally be declared and distributed quarterly for Enhanced Income and monthly for Flexible Income. The Funds declare and pay net realized capital gains, if any, annually. The character of income and gains to be distributed is determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to the treatment of wash sale losses, grantor trust and partnership income.
Indemnification
The Trust indemnifies its officers and trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnities. A Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Trust expects the risk of loss due to these warranties and indemnities to be remote.
3. | Fees and Compensation Paid to Affiliates and Other Parties |
Advisory Fees
The Trust has entered into an Investment Advisory Agreement with CLS Investments, LLC (the “Advisor”, formerly Clarke Lanzen Skalla Investment Firm, LLC), a subsidiary of NorthStar Financial Services Group, LLC. As compensation for the services rendered, facilities furnished, and expenses borne by the Advisor, the Funds will pay the Advisor a fee accrued daily and paid monthly, at the annualized rate of 1.00% of net assets for all funds with the exception of Enhanced Income
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and Flexible Income. The rates these Funds will pay are as follows: Enhanced Income, 0.90%; and Flexible Income, 0.65%.
The Adviser has contractually agreed to waive or limit its management fees and to reimburse expenses, other than expenses relating to dividends on short sales, interest expense, indirect fees and expenses of underlying funds, and extraordinary or non-recurring expenses, through December 31, 2015, so that the annual operating expenses of the Funds do not exceed the percentage of the average daily net assets as indicated below:
Expense Limitation | ||||
Class C (Amerigo Only) | 2.15 | % | ||
Class N (Amerigo, Clermont, Select Allocation, Descartes, Liahona, Select Appreciation and Shelter) | 1.15 | % | ||
Class N (Enhanced) | 1.05 | % | ||
Class N (Flexible Income) | 0.80 | % |
The waivers and reimbursements, if any, of the Advisor’s fees for the six months ended October 31, 2014, were as follows:
Fund | Waiver/Reimbursement | |||
Amerigo Fund | $ | 68,101 | ||
Clermont Fund | 95,444 | |||
Select Allocation Fund | 142,682 | |||
Descartes Fund | 119,980 | |||
Liahona Fund | 130,401 | |||
Enhanced Income Fund | 133,477 | |||
Flexible Income Fund | 122,536 | |||
Select Appreciation Fund | 101,406 | |||
Shelter Fund | 55,754 |
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Fees waived or expenses reimbursed may be recouped by the Advisor from a Fund for a period up to three years from the date the fee or expense was waived or reimbursed. However, no recoupment payment will be made by a Fund if it would result in the Fund exceeding the contractual expense limitation described above. During the six months ended October 31, 2014, the Advisor recaptured no fees for prior period expense waivers/reimbursements from the Funds. The table below contains the amounts of fee waivers and expense reimbursements subject to recapture by the Advisor through April 30 of the years indicated.
Fund | 2015 | 2016 | 2017 | Total | ||||||||||||
Amerigo Fund | $ | 84,102 | $ | 137,119 | $ | 68,101 | $ | 289,322 | ||||||||
Clermont Fund | 190,941 | 194,887 | 95,444 | 481,272 | ||||||||||||
Select Allocation Fund | 254,216 | 262,685 | 142,682 | 659,583 | ||||||||||||
Descartes Fund | 194,363 | 207,898 | 119,980 | 522,241 | ||||||||||||
Liahona Fund | 203,266 | 208,419 | 130,401 | 542,086 | ||||||||||||
Enhanced Income Fund | 215,163 | 264,841 | 133,477 | 613,481 | ||||||||||||
Flexible Income Fund | 220,663 | 258,414 | 122,536 | 601,613 | ||||||||||||
Select Appreciation Fund | 173,168 | 186,451 | 101,406 | 461,025 | ||||||||||||
Shelter Fund | 89,893 | 110,528 | 55,754 | 256,175 |
Administration, Fund Accounting, Transfer Agent, Custody Administration Fees
Pursuant to separate servicing agreements with Gemini Fund Services, LLC (“GFS”), the Funds pay GFS customary fees for providing administration, fund accounting and transfer agency services to the Funds. GFS provides a Principal Financial Officer to the Funds.
In addition, certain affiliates of GFS provide ancillary services to the Funds as follows:
Gemcom, LLC (“Gemcom”), an affiliate of GFS, provides EDGAR conversion and filing services as well as print management services for the Funds on an ad-hoc basis. For the provision of these services, Gemcom receives customary fees from the Funds.
Chief Compliance Officer
Northern Lights Compliance Services, LLC (“NLCS”), an affiliate of GFS, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Funds.
Distributor
The distributor of the Funds is Northern Lights Distributors, LLC (the “Distributor”), an affiliate of the Advisor. The Trust, with respect to the Funds, has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act (the “Plan”). The Plan provides for the payment of a distribution fee to the Distributor at an annualized rate of 0.75% of the average daily net assets attributable to Class C shares. The Plan for Class C shares also provides for the payment of a shareholder service fee at an annualized rate of 0.25% of the average daily net assets attributable to the Class C shares.
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During the six months ended October 31, 2014, the Amerigo Fund Class C shares incurred $13,394 pursuant to the Plan. Class N shares do not pay any 12b-1 distribution or shareholder service fees.
Trustees Fees
Prior to July 2014, the Trust paid each Trustee of the Trust who was not an interested person a fee of $6,000 per quarter. In every instance, the cost of the fees are to be allocated among the participating Funds in accordance with a formula that takes into account the overall asset size of each affected Fund. The Trust also reimburses the Trustees for travel and other expenses incurred in attending meetings of the Board. Officers of the Trust and Trustees who are interested persons of the Trust do not receive any direct compensation from the Trust.
Effective July 2014, the Trust pays each Trustee of the Trust who was not an interested person a flat fee of $24,000 per year plus $6,000 for an in-person quarterly meeting or $1,000 per quarter if participating in the meeting by telephone. In every instance, the cost of the fees are to be allocated among the participating Funds in accordance with a formula that takes into account the overall asset size of each affected Fund. The Trust also reimburses the Trustees for travel and other expenses incurred in attending meetings of the Board. Officers of the Trust and Trustees who are interested persons of the Trust do not receive any direct compensation from the Trust.
Two Trustees and certain officers of the Trust are officers of GFS, NLCS, the Advisor and/or the Distributor.
4. | Aggregate Unrealized Appreciation and Depreciation |
The identified cost of investments in securities (including written options and short sales) owned by each Fund for federal income tax purposes, and their respective gross unrealized appreciation and depreciation at October 31, 2014, were as follows:
Gross | Gross | Net Unrealized | ||||||||||||||
Tax | Unrealized | Unrealized | Appreciation/ | |||||||||||||
Cost | Appreciation | Depreciation | (Depreciation) | |||||||||||||
Amerigo Fund | $ | 556,548,734 | $ | 98,279,647 | $ | (2,275,692 | ) | $ | 96,003,955 | |||||||
Clermont Fund | 447,103,828 | 35,587,103 | (1,632,994 | ) | 33,954,109 | |||||||||||
Select Allocation Fund | 335,508,581 | 41,045,353 | (1,059,739 | ) | 39,985,614 | |||||||||||
Descartes Fund | 21,957,081 | 4,971,707 | — | 4,971,707 | ||||||||||||
Liahona Fund | 23,031,498 | 297,279 | (16,867 | ) | 280,412 | |||||||||||
Enhanced Income Fund | 108,710,469 | 6,728,657 | (7,568,077 | ) | (839,420 | ) | ||||||||||
Flexible Income Fund | 222,513,940 | 3,400,098 | (1,717,414 | ) | 1,682,684 | |||||||||||
Select Appreciation Fund | 117,383,432 | 17,241,667 | (262,115 | ) | 16,979,552 | |||||||||||
Shelter Fund | 74,519,910 | 10,474,061 | — | 10,474,061 |
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5. | Investment Transactions |
The cost of purchases and the proceeds from sales of investments, other than short-term securities, for the year ended October 31, 2014, were as follows:
Purchases | Sales | |||||||
Amerigo Fund | $ | 123,078,834 | $ | 61,723,223 | ||||
Clermont Fund | 166,148,132 | 52,168,565 | ||||||
Select Allocation Fund | 87,819,538 | 27,982,316 | ||||||
Descartes Fund | 10,828,640 | 153,639,779 | ||||||
Liahona Fund | 39,634,980 | 276,764,853 | ||||||
Enhanced Income Fund | 54,260,114 | 61,042,442 | ||||||
Flexible Income Fund | 33,811,216 | 2,022,933 | ||||||
Select Appreciation Fund | 28,326,914 | 17,793,709 | ||||||
Shelter Fund | 42,096,708 | 31,370,561 |
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6. | Shareholders’ Transactions |
At October 31, 2014, the Funds had an unlimited number of shares authorized. Following is a summary of shareholder transactions for each Fund:
Period Ended | Year Ended | |||||||||||||||
October 31, 2014 | April 30, 2014 | |||||||||||||||
Amerigo Fund | Shares | Dollars | Shares | Dollars | ||||||||||||
Class C Shares: | ||||||||||||||||
Shares Sold | 4,046 | $ | 68,689 | 5,156 | $ | 81,050 | ||||||||||
Shares redeemed | (10,147 | ) | (172,266 | ) | (47,192 | ) | (719,940 | ) | ||||||||
Net decrease | (6,101 | ) | $ | (103,577 | ) | (42,036 | ) | $ | (638,890 | ) | ||||||
Amerigo Fund | Shares | Dollars | Shares | Dollars | ||||||||||||
Class N Shares: | ||||||||||||||||
Shares Sold | 8,299,242 | $ | 148,873,369 | 3,542,413 | $ | 58,565,647 | ||||||||||
Shares issued to shareholders in reinvestment | — | — | 197,241 | 3,368,884 | ||||||||||||
Shares redeemed | (4,130,231 | ) | (74,137,641 | ) | (7,597,350 | ) | (124,626,740 | ) | ||||||||
Net decrease | 4,169,011 | $ | 74,735,728 | (3,857,696 | ) | $ | (62,692,209 | ) | ||||||||
Clermont Fund | Shares | Dollars | Shares | Dollars | ||||||||||||
Class N Shares: | ||||||||||||||||
Shares Sold | 13,928,652 | $ | 152,025,148 | 5,367,969 | $ | 58,530,753 | ||||||||||
Shares issued to shareholders in reinvestment | — | — | 1,909,199 | 20,218,414 | ||||||||||||
Shares redeemed | (3,302,596 | ) | (36,162,328 | ) | (6,501,033 | ) | (70,931,910 | ) | ||||||||
Net increase/(decrease) | 10,626,056 | $ | 115,862,820 | 776,135 | $ | 7,817,257 | ||||||||||
Select Allocation | Shares | Dollars | Shares | Dollars | ||||||||||||
Class N Shares: | ||||||||||||||||
Shares Sold | 8,403,802 | $ | 95,685,320 | 3,242,377 | $ | 36,108,381 | ||||||||||
Shares issued to shareholders in reinvestment | — | — | 1,666,476 | 18,197,919 | ||||||||||||
Shares redeemed | (3,009,193 | ) | (34,225,498 | ) | (4,577,373 | ) | (51,114,455 | ) | ||||||||
Net increase/(decrease) | 5,394,609 | $ | 61,459,822 | 331,480 | $ | 3,191,845 |
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Period Ended | Year Ended | |||||||||||||||
October 31, 2014 | April 30, 2014 | |||||||||||||||
Descartes Fund | Shares | Dollars | Shares | Dollars | ||||||||||||
Class N Shares: | ||||||||||||||||
Shares Sold | 645,156 | $ | 8,486,505 | 1,601,921 | $ | 20,110,611 | ||||||||||
Shares issued to shareholders in reinvestment | — | — | 672,453 | 8,459,456 | ||||||||||||
Shares redeemed | (11,727,071 | ) | (153,693,960 | ) | (3,418,539 | ) | (42,752,717 | ) | ||||||||
Net decrease | (11,081,915 | ) | $ | (145,207,455 | ) | (1,144,165 | ) | $ | (14,182,650 | ) | ||||||
Liahona Fund | Shares | Dollars | Shares | Dollars | ||||||||||||
Class N Shares: | ||||||||||||||||
Shares Sold | 1,700,775 | $ | 18,320,139 | 4,123,866 | $ | 44,303,811 | ||||||||||
Shares issued to shareholders in reinvestment | — | — | 2,051,198 | 21,352,972 | ||||||||||||
Shares redeemed | (23,952,413 | ) | (257,356,171 | ) | (5,225,918 | ) | (56,177,824 | ) | ||||||||
Net increase | (22,251,638 | ) | $ | (239,036,032 | ) | 949,146 | $ | 9,478,959 | ||||||||
Enhanced Income Fund | Shares | Dollars | Shares | Dollars | ||||||||||||
Class N Shares: | ||||||||||||||||
Shares Sold | 2,395,310 | $ | 25,313,774 | 2,135,335 | $ | 22,483,893 | ||||||||||
Shares issued to shareholders in reinvestment | 17,628 | 187,557 | 338,630 | 3,546,554 | ||||||||||||
Shares redeemed | (1,171,722 | ) | (12,387,942 | ) | (2,747,267 | ) | (29,035,098 | ) | ||||||||
Net increase/(decrease) | 1,241,216 | $ | 13,113,389 | (273,302 | ) | $ | (3,004,651 | ) | ||||||||
Flexible Income Fund | Shares | Dollars | Shares | Dollars | ||||||||||||
Class N Shares: | ||||||||||||||||
Shares Sold | 4,979,035 | $ | 51,780,601 | 3,899,303 | $ | 40,651,921 | ||||||||||
Shares issued to shareholders in reinvestment | 179,681 | 1,871,656 | 531,081 | 5,478,627 | ||||||||||||
Shares redeemed | (2,038,710 | ) | (21,209,262 | ) | (4,115,069 | ) | (42,834,285 | ) | ||||||||
Net increase | 3,120,006 | $ | 32,442,995 | 315,315 | $ | 3,296,263 |
79 |
AdvisorOne Funds Semi-Annual Report |
Notes to Financial Statements (Unaudited)(Continued) |
October 31, 2014 |
Period Ended | Year Ended | |||||||||||||||
October 31, 2014 | April 30, 2013 | |||||||||||||||
Select Appreciation Fund | Shares | Dollars | Shares | Dollars | ||||||||||||
Class N Shares: | ||||||||||||||||
Shares Sold | 1,783,739 | $ | 24,033,283 | 1,723,145 | $ | 21,904,098 | ||||||||||
Shares issued to shareholders in reinvestment | — | — | 277,766 | 3,419,304 | ||||||||||||
Shares redeemed | (1,049,086 | ) | (14,253,049 | ) | (1,897,643 | ) | (23,786,831 | ) | ||||||||
Net increase | 734,653 | $ | 9,780,234 | 103,268 | $ | 1,536,571 | ||||||||||
Shelter Fund | Shares | Dollars | Shares | Dollars | ||||||||||||
Class N Shares: | ||||||||||||||||
Shares Sold | 1,539,218 | $ | 19,252,853 | 1,105,052 | $ | 10,733,996 | ||||||||||
Shares issued to shareholders in reinvestment | — | — | — | — | ||||||||||||
Shares redeemed | (641,383 | ) | (8,044,383 | ) | (3,422,162 | ) | (33,041,617 | ) | ||||||||
Net increase (decrease) | 897,835 | $ | 11,208,470 | (2,317,110 | ) | $ | (22,307,621 | ) |
7. | Securities Lending |
Amerigo Fund, Clermont Fund, Select Allocation Fund, Descartes Fund, Liahona Fund, Flexible Income Fund and the Select Appreciation Fund have entered into a securities lending arrangement with The Bank of New York Mellon (the “Borrower”). Under the terms of the agreement, the Funds are authorized to loan securities to the Borrower. In exchange, the Fund receives cash collateral in the amount of at least 102% of the value of the securities loaned. The value of securities loaned is disclosed in a Foot Note on the statement of Assets & Liabilities and on the Schedule of Investments. Securities lending income is disclosed in the Funds’ Statements of Operations. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering their securities and possible loss of income or value if the Borrower fails to return them.
Gross Amounts not offset in the | ||||||||||||||||
Statement of Assets & Liabilities | ||||||||||||||||
Gross Amounts Recognized | Financial | |||||||||||||||
in Statements of Assets & | Instruments | Cash Collateral | Net Amount of | |||||||||||||
Fund | Liabilities | Pledged | Pledged | Assets | ||||||||||||
Amerigo Fund | $ | 74,822,397 | (1) | $ | 74,822,397 | (2) | $ | — | $ | — | ||||||
Clermont Fund | 52,426,887 | (1) | 52,426,887 | (2) | — | — | ||||||||||
Select Allocation Fund | 68,369,049 | (1) | 68,369,049 | (2) | — | — | ||||||||||
Descartes Fund | 4,000,000 | (1) | 4,000,000 | (2) | — | — | ||||||||||
Liahona Fund | 3,390,860 | (1) | 3,390,860 | (2) | — | — | ||||||||||
Flexible Income Fund | 25,278,085 | (1) | 25,278,085 | (2) | — | — | ||||||||||
Select Appreciation Fund | 29,151,236 | (1) | 29,151,236 | (2) | — | — |
(1) | Collateral for Securities Loaned at value as presented in the Schedule of Investments. |
(2) | The amount is limited to the liability balance and accordingly, does not include excess collateral pledged. |
80 |
AdvisorOne Funds Semi-Annual Report |
Notes to Financial Statements (Unaudited)(Continued) |
October 31, 2014 |
8. | Distributions to Shareholders and Tax Components of Capital |
The tax character of distributions paid during the fiscal years ended April 30, 2014 and April 30, 2013 was as follows:
For the year ended April 30, 2014: | ||||||||||||||||
Ordinary | Long-Term | Return of | ||||||||||||||
Portfolio | Income | Capital Gains | Capital | Total | ||||||||||||
Amerigo Fund | $ | 3,395,804 | $ | — | $ | — | $ | 3,395,804 | ||||||||
Clermont Fund | 5,159,963 | 15,243,740 | — | 20,403,703 | ||||||||||||
Select Allocation Fund | 6,404,709 | 11,939,892 | — | 18,344,601 | ||||||||||||
Descartes Fund | 2,308,273 | 6,193,613 | — | 8,501,886 | ||||||||||||
Liahona Fund | 1,838,765 | 19,696,221 | — | 21,534,986 | ||||||||||||
Enhanced Income Fund | 1,406,894 | 2,188,741 | — | 3,595,635 | ||||||||||||
Flexible Income Fund | 3,583,109 | 1,904,828 | — | 5,487,937 | ||||||||||||
Select Appreciation Fund | 1,528,987 | 12,199,327 | — | 13,728,314 | ||||||||||||
Shelter Fund | 178,166 | — | — | 178,166 | ||||||||||||
For the year ended April 30, 2013: | ||||||||||||||||
Ordinary | Long-Term | Return of | ||||||||||||||
Portfolio | Income | Capital Gains | Capital | Total | ||||||||||||
Amerigo Fund | $ | 1,901,007 | $ | — | $ | — | $ | 1,901,007 | ||||||||
Clermont Fund | 4,768,742 | — | — | 4,768,742 | ||||||||||||
Select Allocation Fund | 2,428,331 | — | — | 2,428,331 | ||||||||||||
Descartes Fund | 942,106 | — | — | 942,106 | ||||||||||||
Liahona Fund | 1,961,459 | 4,155,786 | — | 6,117,245 | ||||||||||||
Enhanced Income Fund | 1,263,135 | — | 360,246 | 1,623,381 | ||||||||||||
Flexible Income Fund | 3,772,089 | 559,727 | — | 4,331,816 | ||||||||||||
Select Appreciation Fund | 697,029 | 2,723,274 | — | 3,420,303 |
81 |
AdvisorOne Funds Semi-Annual Report |
Notes to Financial Statements (Unaudited)(Continued) |
October 31, 2014 |
As of April 30, 2014, the components of accumulated earnings/ (deficit) on a tax basis were as follows:
Undistributed | Undistributed | Post October | Capital Loss | Other | Unrealized | Total | ||||||||||||||||||||||
Ordinary | Long-Term | Loss and | Carry | Book/Tax | Appreciation/ | Accumulated | ||||||||||||||||||||||
Portfolio | Income | Capital Gains | Late Year Loss | Forwards | Differences | (Depreciation) | Earnings/(Deficits) | |||||||||||||||||||||
Amerigo Fund | $ | 3,643,853 | $ | — | $ | — | $ | (9,101,571 | ) | $ | — | $ | 97,435,085 | $ | 91,977,367 | |||||||||||||
Clermont Fund | — | 2,485,785 | — | — | — | 31,180,807 | 33,666,592 | |||||||||||||||||||||
Select Allocation Fund | — | 1,143,819 | — | — | — | 34,641,912 | 35,785,731 | |||||||||||||||||||||
Descartes Fund | — | 933,424 | — | — | — | 32,914,201 | 33,847,625 | |||||||||||||||||||||
Liahona Fund | 48,243 | 5,367,154 | — | — | — | 28,024,981 | 33,440,378 | |||||||||||||||||||||
Enhanced Income Fund | — | — | (38,685 | ) | — | (314,891 | ) | (1,803,047 | ) | (2,156,623 | ) | |||||||||||||||||
Flexible Income Fund | 349,146 | — | (75,299 | ) | (81,169 | ) | — | 2,024,398 | 2,217,076 | |||||||||||||||||||
Select Appreciation Fund | 104,212 | 1,459,128 | — | — | — | 17,538,321 | 19,101,661 | |||||||||||||||||||||
Shelter Fund | 388,855 | — | — | (9,442 | ) | — | 6,154,056 | 6,533,469 |
The difference between book basis and tax basis undistributed net investment income/(loss), accumulated net realized gain/(loss), and unrealized appreciation/(depreciation) from investments is primarily attributable to the tax deferral of losses on wash sales and straddles, and adjustments for partnerships.
Capital losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Funds incurred and elected to defer such capital losses as follows:
Post October | ||||
Portfolio | Losses | |||
Enhanced Income Fund | $ | 38,685 | ||
Flexible Income Fund | 75,299 |
The Regulated Investment Company Modernization Act of 2010 which was enacted on December 22, 2010 requires the Funds to utilize post-enactment (non-expiring) capital losses prior to pre-enactment capital loss carryovers for fiscal year ends beginning after the date of enactment. As a result, there may be greater likelihood that all or a portion of the Funds’ pre-enactment capital loss carryovers may expire without being utilized. At April 30, 2014, the Funds had capital loss carry forwards for federal income tax purposes available to offset future capital gains as follows:
Non-Expiring | Non-Expiring | |||||||||||||||
Portfolio | 2018 | Short-Term | Long-Term | Total | ||||||||||||
Amerigo Fund | $ | 9,101,571 | $ | — | $ | — | $ | 9,101,571 | ||||||||
Flexible Income Fund | — | 81,169 | — | 81,169 | ||||||||||||
Shelter Fund | — | 9,442 | — | 9,442 |
82 |
AdvisorOne Funds Semi-Annual Report |
Notes to Financial Statements (Unaudited)(Continued) |
October 31, 2014 |
Permanent book and tax differences, primarily attributable to the reclass of net operating losses and ordinary income distributions, adjustments for paydowns, real estate investment trusts, grantor trusts, partnerships and the capitalization of in lieu dividend payments, resulted in reclassifications for the following the Funds for the year ended April 30, 2014 as follows:
Undistributed | Undistributed | |||||||
Ordinary | Long-Term | |||||||
Portfolio | Income (Loss) | Gains (Loss) | ||||||
Amerigo Fund | $ | 102,087 | $ | (102,087 | ) | |||
Clermont Fund | 3,126,807 | (3,126,807 | ) | |||||
Select Allocation Fund | 2,559,053 | (2,559,053 | ) | |||||
Descartes Fund | 1,037,824 | (1,037,824 | ) | |||||
Liahona Fund | (25,958 | ) | 25,958 | |||||
Enhanced Income Fund | 101,861 | (101,861 | ) | |||||
Flexible Income Fund | 275,898 | (275,898 | ) | |||||
Select Appreciation Fund | 540,199 | (540,199 | ) | |||||
Shelter Fund | (1,436 | ) | 1,436 |
9. | Subsequent Events |
Subsequent events after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued. Effective November 3, 2014 the Advisor made material changes to each Fund’s investment strategy, risk and Fund names. The Fund’s new names are as follows:
Old Fund Name | New Fund Name | |
AdvisorOne Amerigo Fund | CLS Global Diversified Equity Fund | |
AdvisorOne Clermont Fund | CLS Global Growth and Income Fund | |
AdvisorOne Select Appreciation Fund | CLS Global Aggressive Equity Fund | |
AdvisorOne Descartes Fund | CLS Domestic Equity Fund | |
AdvisorOne Liahona Fund | CLS International Equity Fund | |
AdvisorOne Select Allocation Fund | CLS Global Growth Fund | |
AdvisorOne Enhanced Income Fund | CLS Enhanced Long/Short Fund | |
AdvisorOne Flexible Income Fund | CLS Flexible Income Fund | |
AdvisorOne Shelter Fund | CLS Shelter Fund |
Effective November 3, 2014, each Fund lowered its management fee by 0.25% of average daily net assets and added a shareholder servicing fee of 0.25% of average daily net assets to Class N Shares.
83 |
AdvisorOne Funds Semi-Annual Report |
Shareholder Expense Example (Unaudited) |
As a shareholder of the Funds you may incur two types of costs: (1) transaction costs, including contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution and/or service (12b-1 fees) fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
This Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.
Actual Expenses: The first section of the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the applicable number under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during the period.
Hypothetical Examples for Comparison Purposes: The second section of the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning | Ending Account | |||||||||||||
Account Value | Value | Expense Ratio | Expenses Paid | |||||||||||
5/1/2014 | 10/31/2014 | (Annualized) | During the Period | |||||||||||
Amerigo Fund | ||||||||||||||
Actual: | ||||||||||||||
Class C | $ | 1,000.00 | $ | 1,030.70 | 2.15% | $ | 10.98 | * | ||||||
Class N | 1,000.00 | 1,014.37 | 1.15% | 5.89 | * | |||||||||
Hypothetical (5% return before expenses): | ||||||||||||||
Class C | 1,000.00 | 1,014.37 | 2.15% | 10.92 | * | |||||||||
Class N | 1,000.00 | 1,019.41 | 1.15% | 5.85 | * | |||||||||
Clermont Fund | ||||||||||||||
Actual | 1,000.00 | 1,014.80 | 1.15% | 5.83 | * | |||||||||
Hypothetical (5% return before expenses): | 1,000.00 | 1,019.42 | 1.15% | 5.84 | * |
* | Expenses are equal to the Fund’s respective annual expense ratios for the most recent six month period, multiplied by the average account value over the period, multiplied by 184/365. |
84 |
AdvisorOne Funds Semi-Annual Report |
Shareholder Expense Example (Unaudited) (Continued) |
Beginning | Ending Account | |||||||||||||
Account Value | Value | Expense Ratio | Expenses Paid | |||||||||||
5/1/2014 | 10/31/2014 | (Annualized) | During the Period | |||||||||||
Select Allocation Fund | ||||||||||||||
Actual | 1,000.00 | 1,028.70 | 1.15% | 5.88 | * | |||||||||
Hypothetical (5% return before expenses): | 1,000.00 | 1,019.41 | 1.15% | 5.85 | * | |||||||||
Descartes Fund | ||||||||||||||
Actual | 1,000.00 | 1,048.30 | 1.15% | 5.96 | * | |||||||||
Hypothetical (5% return before expenses): | 1,000.00 | 1,019.38 | 1.15% | 5.88 | * | |||||||||
Liahona Fund | ||||||||||||||
Actual | 1,000.00 | 1,037.70 | 1.15% | 5.91 | * | |||||||||
Hypothetical (5% return before expenses): | 1,000.00 | 1,019.28 | 1.15% | 5.85 | * | |||||||||
Enhanced Income Fund | ||||||||||||||
Actual | 1,000.00 | 1,011.50 | 1.05% | 5.32 | * | |||||||||
Hypothetical (5% return before expenses): | 1,000.00 | 1,019.91 | 1.05% | 5.35 | * | |||||||||
Flexible Income Fund | ||||||||||||||
Actual | 1,000.00 | 1,016.00 | 0.80% | 4.07 | * | |||||||||
Hypothetical (5% return before expenses): | 1,000.00 | 1,021.17 | 0.80% | 4.08 | * | |||||||||
Select Appreciation Fund | ||||||||||||||
Actual | 1,000.00 | 1,019.30 | 1.15% | 5.85 | * | |||||||||
Hypothetical (5% return before expenses): | 1,000.00 | 1,019.41 | 1.15% | 5.85 | * | |||||||||
Shelter Fund | ||||||||||||||
Actual | 1,000.00 | 1,048.30 | 1.15% | 5.94 | * | |||||||||
Hypothetical (5% return before expenses): | 1,000.00 | 1,019.41 | 1.15% | 5.85 | * |
* | Expenses are equal to the Fund’s respective annual expense ratios for the most recent six month period, multiplied by the average account value over the period, multiplied by 184/365. |
85 |
Rev. Jan. 2014
FACTS | WHAT DOES ADVISORONE FUNDS (“ADVISORONE”) DO WITH YOUR PERSONAL INFORMATION? | |||||
Why? | 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. | |||||
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
| |||||
● | Social Security number | ● | Account transactions | |||
● | Employment information | ● | Income | |||
● | Account balances | ● | Investment experience | |||
When you are no longer our customer, we continue to share your information as described in this notice. | ||||||
How? | All financial companies need to share a customer’s personal information to run their everyday business - to process transactions, maintain customer accounts, and report to credit bureaus. In the section below, we list the reasons financial companies can share their customer’s personal information; the reasons AdvisorOne chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does AdvisorOne share? | 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 | Yes | No |
For our marketing purposes — to offer our products and services to you | Yes | No |
For joint marketing with other financial companies | Yes | No |
For our affiliates’ everyday business purposes — information about your transactions and experiences | Yes | No |
For our affiliates’ everyday business purposes — information about your creditworthiness | No | We don’t share |
For nonaffiliates to market to you | No | We don’t share |
Questions? | Call (866) 811-0225 or go www.advisoronefunds.com |
86 |
Page 2 |
Who we are | ||
Who is providing this notice? | AdvisorOne Funds | |
What we do | ||
How does AdvisorOne 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. | |
How does AdvisorOne collect my personal information? | We collect your personal information, for example, when you | |
● open an account
● give us your income information
● provide employment information
| ● provide account information
● give us your contact information
| |
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 control.
They can be financial and nonfinancial companies.
The following companies may be considered affiliates of AdvisorOne:
● CLS Investments, LLC
● NorthStar Financial Services Group, LLC
● Gemcom, LLC
● Gemini Alternative Funds, LLC
● Gemini Hedge Fund Services, LLC
● Gemini Fund Services, LLC
● Northern Lights Compliance Services, LLC
● Northern Lights Distributors, LLC
● Orion Advisor Services, LLC
● Constellation Trust Company | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
● AdvisorOne 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 and services to you.
● Our joint marketing partners include other financial service companies. |
87 |
PROXY VOTING POLICY
Information regarding how the Funds voted proxies relating to portfolio securities for the most recent twelve month period ended June 30 as well as a description of the policies and procedures that the Funds use to determine how to vote proxies is available without charge, upon request, by calling 1-866-811-0225 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.
PORTFOLIO HOLDINGS
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (1-800-SEC-0330). The information on Form N-Q is available without charge, upon request, by calling 1-866-811-0225.
17605 Wright Street ● Omaha, NE 68130 |
866-811-0225 ● www.advisoronefunds.com |
Distributed by Northern Lights Distributors, LLC, Member FINRA |
6449-NLD-12/18/2014 0836-CLS-1/9/2015 |
Item 2. Code of Ethics. Not required for semi-annual reports.
Item 3. Audit Committee Financial Expert. Not required for semi-annual reports.
Item 4. Principal Accountant Fees and Services. Not required for semi-annual reports.
Item 5. Audit Committee of Listed Companies. Not applicable to open-end investment companies.
Item 6. Schedule of Investments. Schedule of investments in securities of unaffiliated issuers is included under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Funds. Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Funds. Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders. None
Item 11. Controls and Procedures.
(a)
Based on an evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the disclosure controls and procedures are reasonably designed to ensure that the information required in filings on Forms N-CSR is recorded, processed, summarized, and reported on a timely basis.
(b)
There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1)
Not required for semi-annual reports.
(a)(2)
Certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 (and Item 11(a)(2) of Form N-CSR) are filed herewith..
(a)(3)
Not applicable.
(b)
Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 (and Item 11(b) of Form N-CSR) are filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) AdvisorOne Funds
By (Signature and Title)
/s/ Ryan Beach, President
Ryan Beach, President
Date
1/8/15
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)
/s/ Ryan Beach, President
Ryan Beach, President
Date
1/8/15
By (Signature and Title)
/s/ Brian Curley
Brian Curley, Treasurer
Date
1/8/15