0001352621 2012-10-16 2012-10-16 0001352621 cik0001352621:S000038613Member 2012-10-16 2012-10-16 0001352621 cik0001352621:S000038613Member cik0001352621:C000119107Member 2012-10-16 2012-10-16 0001352621 cik0001352621:S000038613Member cik0001352621:C000119108Member 2012-10-16 2012-10-16 iso4217:USD xbrli:pure Estimated for the Portfolio's current fiscal year. The operating expenses in this fee table will not correlate to the expense ratio in the Portfolio's financial highlights when issued because the financial highlights include only the direct operating expenses incurred by the Portfolio. The Portfolio advisor has contractually agreed to waive its fees and reimburse expenses of the Portfolio, at least until April 30, 2014 to ensure that Total Annual Portfolio Operating Expenses After Expense Reimbursements (exclusive of any taxes, interest, brokerage commissions, acquired fund fees and expenses, or extraordinary expenses such as litigation or reorganization costs) will not exceed 1.35% , and 1.60% for Class 1 shares and Class 2 shares, respectively, of the Portfolio. These fee waivers and expense reimbursements by the advisor are subject to possible recoupment from the Portfolio in future years on a rolling three-year basis (within the three years after the fees have been waived or reimbursed) if such recoupment can be achieved within the foregoing expense limits. These agreements may be terminated only by the Portfolio's Board of Trustees, on 60 days' written notice to the advisor. Northern Lights Variable Trust 485BPOS false 0001352621 2012-10-16 2012-10-16 2012-10-16 2012-10-16 Leader Short Term Bond Portfolio Principal Investment Risks: As with all mutual funds, there is the risk that you could lose money through your investment in the <a id="OLE_LINK2" name="OLE_LINK2"></a><a id="OLE_LINK3" name="OLE_LINK3"></a>Portfolio.  Many factors affect the Portfolio's net asset value and performance.  The Portfolio is not intended to be a complete investment program. · Interest Rate Risk:  The value of the Portfolio may fluctuate based on changes in interest rates and market conditions.  As interest rates rise, the value of income producing instruments may decrease.  This risk increases as the term of the note increases.  Income earned on floating- or variable-rate securities will vary as interest rates decrease or increase.  Variable- and floating-rate securities generally are less susceptible to interest rates than fixed-rate obligations.  However, the interest rates on variable-rate securities, as well as certain floating-rate securities whose interest rates are reset only periodically, can fluctuate in value as a result of interest rate changes when there is an imperfect correlation between the interest rates on the securities and prevailing market interest rates.    · Credit Risk:  The issuer of a fixed income security may not be able to make interest or principal payments when due.  Generally, the lower the credit rating of a security, the greater the risk is that the issuer will default on its obligation.  Credit risks associated with Auction Rate Securities (“ARS”) mirror those of other bond issues in terms of default risk associated with the issuers.  Because ARS do not carry a put feature allowing the bondholder to require the purchase of the bonds by the issuer or a third party, they are very sensitive to changes in credit ratings and normally require the highest ratings (e.g., AAA/Aaa) to make them marketable. · High Yield Bond Risk.  Lower-quality bonds, known as high yield bonds or “junk bonds,” present a significant risk for loss of principal and interest.  These bonds offer the potential for higher return, but also involve greater risk than bonds of higher quality, including an increased possibility that the bond’s issuer, obligor or guarantor may not be able to make its payments of interest and principal (credit quality risk).  If that happens, the value of the bond may decrease, and the Portfolio’s share price may decrease and its income distribution may be reduced.  An economic downturn or period of rising interest rates (interest rate risk) could adversely affect the market for these bonds and reduce the Portfolio’s ability to sell its bonds (liquidity risk).  The lack of a liquid market for these bonds could decrease the Portfolio’s share price.  The ability of governments to repay their obligations is adversely impacted by default, insolvency, bankruptcy or by political instability, including authoritarian and/or military involvement in governmental decision-making, armed conflict, civil war, social instability and the impact of these events and circumstances on a country’s economy and its government's revenues.  Therefore, government bonds can present a significant risk.  Governments may also repudiate their debts in spite of their ability to pay.  The Portfolio's ability to recover from a defaulting government is limited because that same government may block access to court-mandated legal remedies or other means of recovery.   · Management Risk.  The strategy used by the Advisor may fail to produce the intended results.  The ability of the Portfolio to meet its investment objectives is directly related to the Advisor’s investment strategies for the Portfolio.  Your investment in the Portfolio varies with the effectiveness of the Advisor’s research, analysis and asset allocation among portfolio securities.  If the Advisor’s investment strategies do not produce the expected results, your investment could be diminished or even lost. · Foreign Risk.  Foreign investments involve additional risks not typically associated with investing in U.S. Government securities and/or securities of domestic companies, including currency rate fluctuations, political and economic instability, differences in financial reporting standards and less strict regulation of securities markets.  Securities subject to these risks may be less liquid than those that are not subject to these risks. · Derivatives Risk.  When writing put and call options, the Portfolio is exposed to declines in the value of the underlying asset against which the option was written.  To the extent required, the Portfolio will cover the financial exposure created by writing put and call options either by purchasing or selling offsetting options or futures or designating liquid assets to cover such financial exposure.  When purchasing options, the Portfolio is exposed to the potential loss of the option purchase price.  Derivatives may be illiquid and the market for derivatives is largely unregulated.  The use of derivatives may not always be a successful strategy and using them could lower the Portfolio’s return. · Legislative Change Risk.  Municipal securities are subject to the risk that legislative changes and local and business developments may adversely affect the yield or value of the Portfolio’s investments in such securities.   · Limited History of Operations:  The Portfolio is a new mutual fund and has a limited history of operation.   · Government Securities Risk.  It is possible that the U.S. Government would not provide financial support to its agencies or instrumentalities if it is not required to do so by law. If a U.S. Government agency or instrumentality in which the Portfolio invests defaults and the U.S. Government does not stand behind the obligation, the Portfolio’s share price or yield could fall.  Securities of U.S. Government sponsored entities, such as Freddie Mac or Fannie Mae, are neither issued nor guaranteed by the U.S. Government.  The U.S. Government’s guarantee of ultimate payment of principal and timely payment of interest of the U.S. Government securities owned by the Portfolio does not imply that the Portfolio’s shares are guaranteed by the Federal Deposit Insurance Corporation or any other government agency, or that the price of the Portfolio’s shares will not fluctuate. · Portfolio Turnover Risk. The frequency of the Portfolio’s transactions will vary from year to year. Increased portfolio turnover may result in higher brokerage commissions, dealer mark-ups and other transaction costs. Higher costs associated with increased portfolio turnover may offset gains in the Portfolio’s performance.  The Portfolio’s portfolio turnover is expected to be over 100% annually, as the Portfolio is actively traded. As with all mutual funds, there is the risk that you could lose money through your investment in the Portfolio. The U.S. Government's guarantee of ultimate payment of principal and timely payment of interest of the U.S. Government securities owned by the Portfolio does not imply that the Portfolio's shares are guaranteed by the Federal Deposit Insurance Corporation or any other government agency, or that the price of the Portfolio's shares will not fluctuate. Example:  This Example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutual funds.   143 469 168 546 ~ http://nlvt.com/20121016/role/ScheduleExpenseExampleTransposed20002 column dei_LegalEntityAxis compact cik0001352621_S000038613Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ The Example assumes that you invest $10,000 in the Portfolio for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Portfolio's operating expenses remain the same. Although your actual costs may be higher or lower, based upon these assumptions your costs would be: Portfolio Turnover:  The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio).  A higher portfolio turnover may indicate higher transaction costs and may result in higher taxes when Portfolio shares are held in a taxable account.  These costs, which are not reflected in annual portfolio operating expenses or in the Example, affect the Portfolio's performance. Principal Investment Strategies: The Portfolio expects to achieve its objectives by investing in a portfolio of investment grade debt securities and non-investment grade <strike></strike>debt securities (also known as “junk bonds”) , both domestic and foreign.  Fixed income securities in which the Portfolio may invest include foreign and domestic bonds, notes, corporate debt, government securities, <strike></strike>separate trading of registered interest and principal of securities (“STRIPS”) (mortgage- and asset-backed securities entitling the holder to disproportionate interests with respect to the allocation of interest and principal of the assets backing the security) and municipal securities.  The Portfolio’s effective average duration will normally be three years or less.  The Portfolio also may hold cash or cash equivalents, and it may enter into repurchase agreements.  The Advisor utilizes a fundamental top-down analysis, meaning the Advisor analyzes the economy, interest rate cycles, the supply and demand for credit and the characteristics of individual securities in making investment selections. Under normal circumstances, the Portfolio will invest at least 80% of its assets in fixed income securities.  This policy may not be changed without at least 60 days’ advance notice to shareholders in writing.  The Portfolio may invest up to 30% of its assets in lower-quality, high yield bonds rated B or higher by Moody’s Investors Service, Standard & Poor’s Ratings Group or other Nationally Recognized Statistical Rating Organization (“NRSRO”) or, if unrated by such NRSROs, determined by the Advisor to be of comparable quality.  The Portfolio also may invest in bonds with the potential for capital appreciation.  The Portfolio may invest up to 20% of its assets, determined at the time of investment, in foreign fixed income securities denominated in foreign currencies.  Foreign fixed income securities may be investment grade, below investment grade or unrated.  The Portfolio may use options and credit default swaps to manage investment risk and liquidity.    The Portfolio may invest up to 20% of its assets in cash, cash equivalents , and other fixed income securities, including floating- and variable-rate securities, and money market funds which invest in short-term U.S. Treasury securities, or their equivalent. <strike></strike>  By keeping some cash or cash equivalents, the Portfolio may avoid realizing gains and losses from selling investments when there are shareholder redemptions.  However, the Portfolio may have difficulty meeting its investment objectives when holding a significant cash position.   <strike></strike> The Advisor will consider a floating- or variable-rate security to have a maturity equal to its stated maturity (or redemption date if it has been called for redemption), except that it may consider: (1) variable-rate securities to have a maturity equal to the period remaining until the next readjustment in the interest rate, unless subject to a demand feature; (2) variable-rate securities subject to a demand feature to have a remaining maturity equal to the longer of (a) the next readjustment in the interest rate or (b) the period remaining until the principal can be recovered through demand; and (3) floating-rate securities subject to a demand feature to have a maturity equal to the period remaining until the principal can be recovered through demand.  Variable- and floating-rate securities generally are subject to less principal fluctuation than securities without these attributes. As noted above, the Portfolio’s effective average duration will normally be three years or less.  Effective duration is a measure of a fixed income security’s average life that reflects the present value of the security’s cash flow, and accordingly, is a measure of price sensitivity to interest rate changes.  Effective duration is expressed in years, like maturity, but it is a better indicator of price sensitivity than maturity because it takes into account the time value of cash flows generated over the security’s life.  Future interest and principal payments are discounted to reflect their present value and then are multiplied by the number of years they will be received to produce a value expressed in years.  You can estimate the effect of interest rates on a fixed income fund’s share price by multiplying the fund’s effective duration by an expected change in interest rates.  For example, the share price of a fixed income fund with an effective duration of three years would be expected to fall approximately 3% if interest rates rose by one percentage point. The Advisor may sell a security if its value becomes unattractive, such as when its fundamentals deteriorate or when other investment opportunities exist that may have more attractive yields.     Under normal circumstances, the Portfolio will invest at least 80% of its assets in fixed income securities. Performance:  Because the Portfolio has less than a full calendar year of investment operations, no performance information is presented for the Portfolio at this time.  In the future, performance information will be presented in this section of the Prospectus.  Also shareholder reports containing financial and performance information will mailed to shareholders semi-annually.  Updated performance information will be available at no cost by calling toll-free at 1 -800-711-9164. Because the Portfolio has less than a full calendar year of investment operations, no performance information is presented for the Portfolio at this time. 1-800-711-9164 Investment Objectives:  The primary investment objective of the Portfolio is to deliver a high level of current income, with a secondary objective of capital appreciation. Fees and Expenses of the Portfolio:  This table describes the annual operating expenses that you may indirectly pay if you invest in the Portfolio through your retirement plan or if you allocate your insurance contract premiums or payments to the Portfolio.  However, each insurance contract and separate account involves fees and expenses that are not described in this Prospectus.  If the fees and expenses of your insurance contract or separate account were included in this table, your overall expenses would be higher.  You should review the insurance contract prospectus for a complete description of fees and expenses.  In the table below, acquired fund fees and expenses are the indirect costs of investing in other investment companies. 0.0075 0.0075 0.0000 0.0025 0.0072 0.0072 0.0005 0.0005 0.0152 0.0177 -0.0012 -0.0012 0.0140 0.0165 ~ http://nlvt.com/20121016/role/ScheduleOperatingExpenses20001 column dei_LegalEntityAxis compact cik0001352621_S000038613Member column rr_ProspectusShareClassAxis compact * row primary compact * ~ 2014-04-30 Annual Portfolio Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Estimated for the Portfolio's current fiscal year. Estimated for the Portfolio's current fiscal year. The operating expenses in this fee table will not correlate to the expense ratio in the Portfolio's financial highlights when issued because the financial highlights include only the direct operating expenses incurred by the Portfolio.