N-Q 1 advisoronenq.htm N-Q GemCom, LLC

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number

811-08037


AdvisorOne Funds

(Exact name of registrant as specified in charter)


17605 Wright Street Suite 2, Omaha, NE 68130

(Address of principal executive offices)(Zip code)


Gemini Fund Services, LLC., 80 Arkay Drive Suite 110, 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:   1/31/14



Item 1.  Schedule of Investments.  

 




AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Amerigo Fund

 

 

 

 

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Equity Funds - 99.26%

 

 

 

 

Commodity Funds - 1.59%

 

 

 

 

PowerShares DB Agriculture Fund *

 

302,000

 

 $            7,444,300

 

 

 

 

 

Developed International - 19.29%

 

 

 

 

iShares MSCI EAFE ETF

 

       545,300

 

             34,686,533

iShares MSCI EMU ETF

 

       297,100

 

             11,667,117

PowerShares International Dividend Achievers Portfolio

 

    1,385,630

 

             24,234,669

Vanguard FTSE All-World ex-US ETF

 

       283,500

 

             13,548,465

Vanguard FTSE Europe ETF

 

         70,000

 

               3,927,700

WisdomTree Global ex-U.S. Dividend Growth Fund

 

         52,000

 

               2,482,480

 

 

 

 

             90,546,964

Emerging Markets - 5.25%

 

 

 

 

iShares MSCI Emerging Markets ETF

 

       128,700

 

               4,915,053

WisdomTree Emerging Markets Equity Income Fund

 

       425,000

 

             19,758,250

 

 

 

 

             24,673,303

Global Equity - 4.57%

 

 

 

 

iShares Global 100 ETF

 

       292,200

 

             21,456,246

 

 

 

 

 

Large Cap Core - 28.58%

 

 

 

 

iShares Russell 3000 ETF

 

         48,900

 

               5,237,679

iShares S&P 100 ETF

 

         65,000

 

               5,136,300

iShares U.S. Pharmaceuticals ETF

 

         53,800

 

               6,510,338

SPDR Consumer Staples Select Sector Fund

 

       320,000

 

             13,043,200

SPDR Health Care Select Sector Fund

 

       218,600

 

             12,232,856

SPDR S&P 500 ETF Trust

 

         36,000

 

               6,414,480

Vanguard Dividend Appreciation ETF

 

       683,016

 

             48,815,153

Vanguard Large-Cap ETF

 

       244,600

 

             20,052,308

Vanguard Mega Cap 300 Index ETF

 

       275,000

 

             16,739,250

 

 

 

 

           134,181,564

Large Cap Growth - 27.88%

 

 

 

 

iShares MSCI USA Quality Factor ETF

 

       470,000

 

             25,450,500

iShares North American Tech-Software ETF

 

         70,000

 

               5,745,600

iShares Russell 1000 Growth ETF

 

       327,700

 

             27,356,396

iShares Russell Top 200 Growth ETF

 

       204,500

 

               8,937,059

PowerShares QQQ Trust Series 1

 

       310,000

 

             26,743,700

SPDR Technology Select Sector Fund

 

       865,000

 

             30,119,300

Vanguard Information Technology ETF

 

         75,000

 

               6,558,000

 

 

 

 

           130,910,555

Large Cap Value - 11.47%

 

 

 

 

SPDR Energy Select Sector Fund

 

       275,000

 

             22,929,500

SPDR Financial Select Sector Fund

 

    1,468,100

 

             30,918,186

 

 

 

 

             53,847,686

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Amerigo Fund (Continued)

 

 

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Small/Mid Cap Value - 0.63%

 

 

 

 

SPDR S&P Insurance ETF

 

         50,000

 

 $            2,942,000

 

 

 

 

 

Total Equity Funds (cost $393,699,009)

 

 

 

           466,002,618

 

 

 

 

 

Money Market Funds - 0.84%

 

 

 

 

Short-Term Cash - 0.84%

 

 

 

 

Federated Prime Cash Obligations Fund, 0.02% **

 

    3,945,087

 

               3,945,087

Total Money Market Funds (cost $3,945,087)

 

 

 

               3,945,087

 

 

 

 

 

Total Investments (cost $397,644,096) (a) - 100.10%

 

 

 

 $        469,947,705

Other Assets Less Liabilities - Net - (0.10)%

 

 

 

                (452,756)

NET ASSETS - 100.00%

 

 

 

 $        469,494,949

 

 

 

 

 

* Non-income producing security.

 

 

 

 

** Money Market Fund; Interest rate reflects seven-day effective yield on January 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

 

 

 

 

 

 

 

 

 

(a) Represents cost for financial reporting purposes.   Aggregate cost for federal tax purposes is

 

$398,289,130 and differs from market value by net unrealized appreciation (depreciation)

 

 

of securities as follows:

 

 

 

 

 

 

Unrealized appreciation:

 

 $                  73,469,120

 

 

Unrealized depreciation:

 

                      (1,810,545)

 

Net unrealized appreciation:

 

 $                  71,658,575





AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Clermont Fund

 

 

 

 

January 31, 2014 (Unaudited)

 

 

Shares

 

 Value

Bond Funds - 48.16%

 

 

 

 

High Yield Bonds - 8.12%

 

 

 

 

iShares iBoxx $ High Yield Corporate Bond ETF

 

         90,800

 

 $                  8,467,100

PIMCO 0-5 Year High Yield Corporate Bond Index ETF

 

         42,000

 

                     4,439,820

PowerShares Senior Loan Portfolio

 

       452,500

 

                   11,271,775

 

 

 

 

                   24,178,695

Intermediate/Long-Term Bonds - 15.63%

 

 

 

 

iShares 20+ Year Treasury Bond ETF

 

         19,000

 

                     2,057,320

iShares Floating Rate Bond ETF

 

       442,800

 

                   22,445,532

iShares iBoxx $ Investment Grade Corporate Bond ETF

 

         70,800

 

                     8,236,872

PIMCO Total Return ETF

 

       112,000

 

                   11,903,360

Vanguard Intermediate-Term Corporate Bond ETF

 

         22,500

 

                     1,898,550

 

 

 

 

                   46,541,634

Short-Term Bonds - 24.41%

 

 

 

 

Guggenheim BulletShares 2014 Corporate Bond ETF

 

       197,100

 

                     4,180,491

iShares 1-3 Year Credit Bond ETF

 

         86,300

 

                     9,110,691

iShares TIPS Bond ETF

 

       265,000

 

                   29,735,650

PIMCO Enhanced Short Maturity ETF

 

       169,600

 

                   17,182,176

Schwab U.S. TIPs ETF

 

         35,000

 

                     1,890,350

SPDR Barclays Short Term Corporate Bond ETF

 

       293,200

 

                     9,010,036

SPDR Nuveen Barclays Short Term Municipal Bond ETF

 

         65,000

 

                     1,582,425

 

 

 

 

                   72,691,819

 

 

 

 

 

Total Bond Funds (cost $142,228,906)

 

 

 

                 143,412,148

 

 

 

 

 

Equity Funds - 49.11%

 

 

 

 

Commodity Funds - 1.30%

 

 

 

 

PowerShares DB Agriculture Fund *

 

       156,608

 

                     3,860,387

 

 

 

 

 

Developed International - 9.84%

 

 

 

 

iShares MSCI EMU ETF

 

       133,100

 

                     5,226,837

PowerShares International Dividend Achievers Portfolio

 

       908,700

 

                   15,893,163

Vanguard FTSE All-World ex-US ETF

 

       145,000

 

                     6,929,550

WisdomTree Global ex-U.S. Dividend Growth Fund

 

         26,000

 

                     1,241,240

 

 

 

 

                   29,290,790

Emerging Markets - 1.61%

 

 

 

 

WisdomTree Emerging Markets Equity Income Fund

 

       103,000

 

                     4,788,470

 

 

 

 

 

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Clermont Fund (Continued)

 

 

January 31, 2014 (Unaudited)

 

 

Shares

 

 Value

Global Equity - 4.70%

 

 

 

 

iShares Global 100 ETF

 

       190,700

 

 $                14,003,101

 

 

 

 

 

Inverse Equity - 0.52%

 

 

 

 

ProShares Short S&P500 *

 

         60,000

 

                     1,566,000

 

 

 

 

 

Large Cap Core - 15.47%

 

 

 

 

PowerShares S&P 500 High Quality Portfolio

 

       128,000

 

                     2,506,240

RevenueShares Large Cap ETF

 

         85,000

 

                     2,968,200

SPDR Health Care Select Sector Fund

 

         74,700

 

                     4,180,212

SPDR S&P 500 ETF Trust

 

         16,100

 

                     2,868,698

Vanguard Dividend Appreciation ETF

 

       469,300

 

                   33,540,871

 

 

 

 

                   46,064,221

Large Cap Growth - 11.62%

 

 

 

 

iShares MSCI USA Quality Factor ETF

 

       178,313

 

                     9,655,649

iShares North American Tech-Software ETF

 

         40,300

 

                     3,307,824

iShares Russell 1000 Growth ETF

 

         46,600

 

                     3,890,168

PowerShares QQQ Trust Series 1

 

         64,100

 

                     5,529,907

SPDR Technology Select Sector Fund

 

       288,000

 

                   10,028,160

Vanguard Information Technology ETF

 

         25,000

 

                     2,186,000

 

 

 

 

                   34,597,708

Large Cap Value - 2.74%

 

 

 

 

SPDR Energy Select Sector Fund

 

           4,200

 

                        350,196

SPDR Financial Select Sector Fund

 

       370,607

 

                     7,804,984

 

 

 

 

                     8,155,180

Small/Mid-Cap Value - 1.24%

 

 

 

 

Alerian MLP ETF

 

       208,000

 

                     3,702,400

 

 

 

 

 

Other - 0.07%

 

 

 

 

WisdomTree Managed Futures Strategy Fund *

 

           5,000

 

                        205,350

 

 

 

 

 

Total Equity Funds (cost $126,013,512)

 

 

 

                   146,233,607

 

 

 

 

 

Money Market Funds - 3.43%

 

 

 

 

Short-Term Cash - 3.43%

 

 

 

 

Federated Prime Cash Obligations Fund, 0.02% **

 

  10,224,378

 

                   10,224,378

Total Money Market Funds (cost $10,224,378)

 

 

 

                   10,224,378

 

 

 

 

 

Total Investments (cost $278,466,796) (a) - 100.70%

 

 

 

 $              299,870,133

Other Assets Less Liabilities - Net - (0.70)%

 

 

 

                    (2,076,911)

NET ASSETS - 100.00%

 

 

 

 $              297,793,222

 

 

 

 

 

* Non-income producing security.

 

 

 

 

** Money Market Fund; Interest rate reflects seven-day effective yield on January 31, 2014.

 

 

 

 

 

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Clermont Fund (Continued)

 

 

January 31, 2014 (Unaudited)

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

(a) Represents cost for financial reporting purposes.   Aggregate cost for federal tax purposes is $278,686,016 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

 

Unrealized appreciation:

 

 $                           22,032,476

Unrealized depreciation:

 

                                 (848,359)

Net unrealized appreciation:

 

 $                           21,184,117





AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Select Allocation Fund

 

 

January 31, 2014 (Unaudited)

 

 

Shares

 

 Value

Common Stock - 1.37%

 

 

 

 

Large Cap Value - 1.37%

 

 

 

 

Berkshire Hathaway, Inc. - Class B *

 

         27,860

 

 $     3,109,176

Total Common Stock (cost $2,655,211)

 

 

 

        3,109,176

 

 

 

 

 

Bond Funds - 24.10%

 

 

 

 

High Yield Bonds - 4.88%

 

 

 

 

iShares iBoxx $ High Yield Corporate Bond ETF

 

27,690

 

        2,582,093

PIMCO 0-5 Year High Yield Corporate Bond Index ETF

 

80,700

 

        8,530,797

 

 

 

 

      11,112,890

Intermediate/Long-Term Bonds - 4.49%

 

 

 

 

iShares Credit Bond ETF

 

16,300

 

        1,772,136

iShares Floating Rate Bond ETF

 

166,941

 

        8,462,239

 

 

 

 

      10,234,375

International Bond - 1.01%

 

 

 

 

iShares JP Morgan USD Emerging Markets Bond ETF

 

21,365

 

        2,292,465

 

 

 

 

 

Short-Term Bonds - 13.72%

 

 

 

 

iShares 1-3 Year Treasury Bond ETF

 

66,200

 

        5,597,210

PIMCO Enhanced Short Maturity ETF

 

70,500

 

        7,142,355

SPDR Barclays Short Term Corporate Bond ETF

 

322,266

 

        9,903,234

SPDR Barclays Short Term High Yield Bond ETF

 

128,000

 

        3,953,920

SPDR Nuveen Barclays Short Term Municipal Bond ETF

 

192,037

 

        4,675,141

 

 

 

 

      31,271,860

 

 

 

 

 

Total Bond Funds (cost $54,785,526)

 

 

 

      54,911,590

 

 

 

 

 

Equity Funds - 73.97%

 

 

 

 

Commodity Funds - 1.84%

 

 

 

 

GreenHaven Continuous Commodity Index Fund *

 

50,000

 

        1,292,500

PowerShares DB Commodity Index Tracking Fund *

 

116,800

 

        2,905,984

 

 

 

 

        4,198,484

Currency - 1.02%

 

 

 

 

PowerShares DB US Dollar Index Bullish Fund *

 

106,000

 

        2,313,980

 

 

 

 

 

Developed International - 14.12%

 

 

 

 

iShares MSCI ACWI ex US ETF

 

260,981

 

      11,446,627

iShares MSCI EAFE ETF

 

325,720

 

      20,719,049

 

 

 

 

      32,165,676

Emerging Markets - 3.60%

 

 

 

 

Guggenheim China Small Cap ETF

 

44,200

 

        1,116,934

iShares Core MSCI Emerging Markets ETF

 

48,650

 

        2,229,629

iShares MSCI Frontier 100 ETF

 

73,979

 

        2,500,490

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Select Allocation Fund (Continued)

January 31, 2014 (Unaudited)

 

 

Shares

 

 Value

Emerging Markets - 3.60% (continued)

 

 

 

 

iShares MSCI Mexico Capped ETF

 

16,400

 

 $     1,031,396

WisdomTree Emerging Markets SmallCap Dividend Fund

 

30,700

 

        1,324,091

 

 

 

 

        8,202,540

Global Equity - 0.76%

 

 

 

 

iShares Global Energy ETF

 

42,600

 

        1,727,004

 

 

 

 

 

Inverse Equity - 0.16%

 

 

 

 

ProShares Short Russell2000 *

 

         21,000

 

           363,510

 

 

 

 

 

Large Cap Core - 16.35%

 

 

 

 

iShares Core S&P 500 ETF

 

28,520

 

        5,107,932

Market Vectors Wide Moat ETF

 

25,600

 

           719,872

SPDR Industrial Select Sector Fund

 

115,450

 

        5,775,964

SPDR Materials Select Sector Fund

 

49,700

 

        2,188,788

SPDR S&P 500 ETF Trust

 

25,450

 

        4,534,681

Vanguard Health Care ETF

 

45,850

 

        4,722,092

Vanguard Large-Cap ETF

 

96,490

 

        7,910,250

Vanguard Total Stock Market ETF

 

67,830

 

        6,300,050

 

 

 

 

      37,259,629

Large Cap Growth - 17.94%

 

 

 

 

iShares North American Tech-Software ETF

 

40,000

 

        3,283,200

iShares Russell 1000 Growth ETF

 

54,740

 

        4,569,695

PowerShares QQQ Trust Series 1

 

147,070

 

      12,687,729

SPDR Technology Select Sector Fund

 

121,630

 

        4,235,157

Vanguard Growth ETF

 

89,110

 

        8,035,049

Vanguard Information Technology ETF

 

64,650

 

        5,652,996

Vanguard Mega Cap Growth ETF

 

34,200

 

        2,395,368

 

 

 

 

      40,859,194

Large Cap Value - 10.94%

 

 

 

 

SPDR Dow Jones Industrial Average ETF Trust

 

75,871

 

      11,888,227

SPDR Energy Select Sector Fund

 

97,430

 

        8,123,713

SPDR Financial Select Sector Fund

 

233,450

 

        4,916,457

 

 

 

 

      24,928,397

Small/Mid Cap Core - 7.24%

 

 

 

 

iShares Russell Mid-Cap ETF

 

17,230

 

        2,534,533

SPDR S&P MidCap 400 ETF Trust

 

34,200

 

        8,166,276

Vanguard Small-Cap ETF

 

53,750

 

        5,788,337

 

 

 

 

      16,489,146

 

 

 

 

 

Total Equity Funds (cost $142,982,913)

 

 

 

    168,507,560

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Select Allocation Fund (Continued)

January 31, 2014 (Unaudited)

 

 

Shares

 

 Value

Money Market Funds - 0.46%

 

 

 

 

Short-Term Cash - 0.46%

 

 

 

 

Federated Prime Cash Obligations Fund, 0.02% **

 

    1,046,637

 

 $     1,046,637

Total Money Market Funds (cost $1,046,637)

 

 

 

        1,046,637

 

 

 

 

 

Total Investments (cost $201,470,287) (a) - 99.90%

 

 

 

 $ 227,574,963

Other Assets Less Liabilities - Net - 0.10%

 

 

 

           236,972

NET ASSETS - 100.00%

 

 

 

 $ 227,811,935

 

 

 

 

 

* Non-income producing security.

 

 

 

 

** Money Market Fund; Interest rate reflects seven-day effective yield on January 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

 

 

 

 

 

 

 

 

 

(a) Represents cost for financial reporting purposes.   Aggregate cost for federal tax purposes is $201,541,769 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

 

 

 

Unrealized appreciation:

 

 $         27,003,923

 

 

Unrealized depreciation:

 

                (970,729)

Net unrealized appreciation:

 

 $         26,033,194




AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Descartes Fund

 

 

 

 

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Bond Funds - 13.51%

 

 

 

 

High Yield Bonds - 3.37%

 

 

 

 

PowerShares Senior Loan Portfolio

 

     219,000

 

 $         5,455,290

 

 

 

 

 

International Bond - 1.06%

 

 

 

 

iShares JP Morgan USD Emerging Markets Bond ETF

 

       16,000

 

            1,716,800

 

 

 

 

 

Short-Term Bonds - 9.08%

 

 

 

 

iShares 1-3 Year Treasury Bond ETF

 

       44,000

 

            3,720,200

PIMCO Enhanced Short Maturity ETF

 

       39,000

 

            3,951,090

SPDR Barclays Short Term High Yield Bond ETF

 

     127,000

 

            3,923,030

SPDR Nuveen Barclays Short Term Municipal Bond ETF

 

     127,000

 

            3,091,815

 

 

 

 

          14,686,135

 

 

 

 

 

Total Bond Funds (cost $22,048,780)

 

 

 

          21,858,225

 

 

 

 

 

Equity Funds - 84.80%

 

 

 

 

Commodity Funds - 2.31%

 

 

 

 

PowerShares DB Commodity Index Tracking Fund *

 

     150,000

 

            3,732,000

 

 

 

 

 

Currency - 1.08%

 

 

 

 

PowerShares DB US Dollar Index Bullish Fund *

 

80,000

 

            1,746,400

 

 

 

 

 

Developed International - 12.49%

 

 

 

 

db X-trackers MSCI EAFE Hedged Equity Fund

 

       50,000

 

            1,309,500

iShares MSCI All Country World Minimum Volatility ETF

 

       14,000

 

               855,400

iShares MSCI EAFE ETF

 

     132,000

 

            8,396,520

iShares MSCI EMU ETF

 

     132,000

 

            5,183,640

iShares MSCI Germany ETF

 

       39,000

 

            1,163,370

iShares MSCI United Kingdom ETF

 

       52,000

 

            1,035,320

WisdomTree International SmallCap Dividend Fund

 

       37,000

 

            2,275,500

 

 

 

 

          20,219,250

Emerging Markets - 3.82%

 

 

 

 

Guggenheim China Small Cap ETF

 

       65,000

 

            1,642,550

iShares Core MSCI Emerging Markets ETF

 

       99,000

 

            4,537,170

 

 

 

 

            6,179,720

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Descartes Fund (Continued)

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Global Equity - 7.32%

 

 

 

 

iShares Global Energy ETF

 

       69,000

 

 $         2,797,260

iShares Global Healthcare ETF

 

       22,000

 

            1,899,260

iShares Global Industrials ETF

 

       45,000

 

            3,055,050

iShares Global Tech ETF

 

       51,000

 

            4,099,380

 

 

 

 

          11,850,950

Large Cap Core - 13.23%

 

 

 

 

Guggenheim Russell Top 50 Mega Cap ETF

 

       29,500

 

            3,662,720

iShares Core S&P 500 ETF

 

       12,000

 

            2,149,200

iShares S&P 100 ETF

 

       67,000

 

            5,294,340

iShares U.S. Healthcare ETF

 

       32,000

 

            3,783,360

iShares U.S. Industrials ETF

 

       56,000

 

            5,431,440

Vanguard Materials ETF

 

       11,000

 

            1,086,470

 

 

 

 

          21,407,530

Large Cap Growth - 25.42%

 

 

 

 

iShares MSCI USA Quality Factor ETF

 

       48,000

 

            2,599,200

iShares North American Tech ETF

 

       17,000

 

            1,491,750

iShares North American Tech-Software ETF

 

       76,000

 

            6,238,080

iShares Russell 1000 Growth ETF

 

     256,000

 

          21,370,880

iShares S&P 500 Growth ETF

 

       29,000

 

            2,779,650

Vanguard Mega Cap Growth ETF

 

       95,000

 

            6,653,800

 

 

 

 

          41,133,360

Large Cap Value - 11.61%

 

 

 

 

iShares Morningstar Large-Cap Value ETF

 

       15,000

 

            1,158,750

iShares Russell 1000 Value ETF

 

       67,000

 

            6,082,930

iShares S&P 500 Value ETF

 

       36,000

 

            2,953,440

iShares U.S. Financials ETF

 

       78,000

 

            6,030,960

SPDR Dow Jones Industrial Average ETF Trust

 

       10,000

 

            1,566,900

SPDR Energy Select Sector Fund

 

       12,000

 

            1,000,560

.

 

 

 

          18,793,540

Small/Mid Cap Growth - 3.57%

 

 

 

 

iShares Russell 2000 Growth ETF

 

       21,000

 

            2,799,930

iShares Russell Mid-Cap Growth ETF

 

       36,000

 

            2,968,560

 

 

 

 

            5,768,490

Small/Mid Cap Value - 3.95%

 

 

 

 

Alerian MLP ETF

 

     100,000

 

            1,780,000

Guggenheim S&P 500 Pure Value ETF

 

       48,000

 

            2,292,480

iShares U.S. Insurance ETF

 

       53,000

 

            2,322,990

 

 

 

 

            6,395,470

 

 

 

 

 

Total Equity Funds (cost $110,449,337)

 

 

 

        137,226,710

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Descartes Fund (Continued)

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Money Market Funds - 1.77%

 

 

 

 

Short-Term Cash - 1.77%

 

 

 

 

Federated Prime Cash Obligations Fund, 0.02% **

 

  2,863,921

 

 $         2,863,921

Total Money Market Funds (cost $2,863,921)

 

 

 

            2,863,921

 

 

 

 

 

Total Investments (cost $135,362,038) (a) - 100.08%

 

 

 

 $     161,948,856

Other Assets Less Liabilities - Net - (0.08)%

 

 

 

             (129,488)

NET ASSETS - 100.00%

 

 

 

 $     161,819,368

 

 

 

 

 

* Non-income producing security.

 

 

 

 

** Money Market Fund; Interest rate reflects seven-day effective yield on January 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

 

 

 

 

 

 

 

 

 

(a) Represents cost for financial reporting purposes.   Aggregate cost for federal tax purposes is

 

 

$135,759,465 and differs from market value by net unrealized appreciation (depreciation)

 

 

of securities as follows:

 

 

 

 

 

 

Unrealized appreciation:

 

 $              27,106,806

 

 

Unrealized depreciation:

 

                     (917,415)

 

Net unrealized appreciation:

 

 $              26,189,391





AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Liahona Fund

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Bond Funds - 34.13%

 

 

 

 

High Yield Bonds - 4.48%

 

 

 

 

iShares iBoxx $ High Yield Corporate Bond ETF

 

         26,000

 

 $           2,424,500

PIMCO 0-5 Year High Yield Corporate Bond Index ETF

 

         41,000

 

              4,334,110

PowerShares Senior Loan Portfolio

 

       178,000

 

              4,433,980

 

 

 

 

            11,192,590

Intermediate/Long-Term Bonds - 9.48%

 

 

 

 

iShares 3-7 Year Treasury Bond ETF +

 

         43,000

 

              5,227,510

iShares Floating Rate Bond ETF

 

       181,000

 

              9,174,890

iShares Intermediate Credit Bond ETF +

 

         46,000

 

              5,010,780

SPDR Blackstone / GSO Senior Loan ETF

 

         85,000

 

              4,268,700

 

 

 

 

            23,681,880

Short-Term Bonds - 20.17%

 

 

 

 

iShares 1-3 Year Credit Bond ETF

 

       134,000

 

            14,146,380

iShares 1-3 Year Treasury Bond ETF +

 

       284,000

 

            24,012,200

PIMCO Enhanced Short Maturity ETF +

 

       121,000

 

            12,258,510

 

 

 

 

            50,417,090

 

 

 

 

 

Total Bond Funds (cost $85,256,229)

 

 

 

            85,291,560

 

 

 

 

 

Equity Funds - 64.50%

 

 

 

 

Commodity Funds - 0.40%

 

 

 

 

PowerShares DB Commodity Index Tracking Fund *

 

         40,000

 

                 995,200

 

 

 

 

 

Developed International - 12.13%

 

 

 

 

db X-trackers MSCI EAFE Hedged Equity Fund

 

         50,000

 

              1,309,500

iShares International Select Dividend ETF

 

         61,000

 

              2,198,440

iShares MSCI All Country World Minimum Volatility ETF +

 

         55,000

 

              3,360,500

iShares MSCI Canada ETF

 

         64,000

 

              1,787,520

iShares MSCI EAFE Minimum Volatility ETF

 

         62,000

 

              3,685,280

iShares MSCI EMU ETF

 

       230,000

 

              9,032,100

iShares MSCI Italy Capped ETF

 

         95,000

 

              1,476,300

iShares MSCI Japan Small-Cap ETF

 

         13,000

 

                 687,799

Vanguard FTSE Europe ETF

 

         13,000

 

                 729,430

Vanguard FTSE Pacific ETF

 

         25,000

 

              1,428,000

WisdomTree International SmallCap Dividend Fund

 

         75,000

 

              4,612,500

 

 

 

 

            30,307,369

Emerging Markets - 6.14%

 

 

 

 

EGShares Emerging Markets Consumer ETF

 

         20,000

 

                 484,200

Guggenheim China Small Cap ETF

 

         20,000

 

                 505,400

iShares Core MSCI Emerging Markets ETF

 

         49,000

 

              2,245,670

iShares MSCI All Country Asia ex Japan ETF

 

         82,000

 

              4,586,260

iShares MSCI Emerging Markets Minimum Volatility ETF

 

         81,000

 

              4,335,120

iShares MSCI Emerging Markets Small-Cap ETF

 

         71,000

 

              3,197,130

 

 

 

 

            15,353,780

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Liahona Fund (Continued)

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Global Equity - 3.24%

 

 

 

 

iShares Global Energy ETF

 

         41,000

 

 $           1,662,140

iShares Global Healthcare ETF

 

         23,000

 

              1,985,590

iShares Global Industrials ETF

 

         43,000

 

              2,919,270

PowerShares Global Listed Private Equity Portfolio

 

       132,000

 

              1,532,520

 

 

 

 

              8,099,520

Inverse Equity - 0.69%

 

 

 

 

ProShares Short Russell2000 *

 

         99,000

 

              1,713,690

 

 

 

 

 

Large Cap Core - 15.06%

 

 

 

 

iShares Morningstar Large-Cap ETF

 

         65,000

 

              6,768,450

iShares MSCI USA Momentum Factor ETF

 

         38,000

 

              2,228,320

iShares S&P 100 ETF

 

       147,000

 

            11,615,940

iShares U.S. Healthcare ETF

 

         58,000

 

              6,857,340

iShares U.S. Industrials ETF

 

         36,000

 

              3,491,640

PowerShares S&P 500 High Quality Portfolio

 

       257,000

 

              5,032,060

Vanguard Industrials ETF

 

         17,000

 

              1,632,000

 

 

 

 

            37,625,750

Large Cap Growth - 14.20%

 

 

 

 

Fidelity MSCI Information Technology Index ETF

 

         51,000

 

              1,350,475

iShares Morningstar Large-Cap Growth ETF

 

         64,000

 

              6,211,200

iShares MSCI USA Quality Factor ETF

 

         80,000

 

              4,332,000

iShares North American Tech ETF

 

         25,000

 

              2,193,750

iShares North American Tech-Software ETF

 

         29,000

 

              2,380,320

iShares S&P 500 Growth ETF

 

       135,000

 

            12,939,750

iShares U.S. Oil Equipment & Services ETF

 

           9,000

 

                 551,430

Powershares FTSE RAFI US 1000 Portfolio

 

         18,000

 

              1,436,400

Vanguard Information Technology ETF

 

         18,000

 

              1,573,920

Vanguard Mega Cap Growth ETF

 

         36,000

 

              2,521,440

 

 

 

 

            35,490,685

Large Cap Value - 5.04%

 

 

 

 

iShares High Dividend ETF

 

         27,000

 

              1,824,390

iShares Morningstar Large-Cap Value ETF

 

         59,000

 

              4,557,750

iShares MSCI USA Minimum Volatility ETF

 

         80,000

 

              2,754,400

iShares MSCI USA Value Factor ETF

 

           8,000

 

                 459,360

iShares U.S. Telecommunications ETF

 

         43,000

 

              1,239,690

SPDR S&P Regional Banking ETF

 

         46,000

 

              1,759,500

 

 

 

 

            12,595,090

Preferred Security - 1.43%

 

 

 

 

iShares U.S. Preferred Stock ETF

 

         94,000

 

              3,564,480

 

 

 

 

 

Small/Mid Cap Core - 0.79%

 

 

 

 

PowerShares S&P SmallCap Industrials Portfolio

 

         45,000

 

              1,973,250

 

 

 

 

 

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Liahona Fund (Continued)

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Small/Mid Cap Growth - 3.61%

 

 

 

 

iShares North American Tech-Multimedia Networking ETF

 

         62,000

 

 $           2,070,428

iShares U.S. Medical Devices ETF

 

         25,000

 

              2,344,250

PowerShares S&P SmallCap Information Technology Portfolio

         54,000

 

              2,333,340

SPDR S&P Capital Markets ETF

 

         48,000

 

              2,269,440

 

 

 

 

              9,017,458

Small/Mid Cap Value - 1.77%

 

 

 

 

Guggenheim S&P 500 Pure Value ETF

 

         39,000

 

              1,862,640

iShares Russell Mid-Cap Value ETF

 

         16,000

 

              1,032,160

SPDR S&P Insurance ETF

 

         26,000

 

              1,529,840

 

 

 

 

              4,424,640

 

 

 

 

 

Total Equity Funds (cost $139,816,067)

 

 

 

          161,160,912

 

 

 

 

 

 Money Market Funds - 1.17%

 

 

 

 

 Short-Term Cash - 1.17%

 

 

 

 

Federated Prime Cash Obligations Fund, 0.02% **

 

    2,898,894

 

              2,898,894

Total Money Market Funds (cost $2,898,894)

 

 

 

              2,898,894

 

 

 

 

 

 Total Investments (cost $227,971,190) (a) - 99.80%  

 

 

 

 $       249,351,366

 Other Assets Less Liabilities - Net - 0.20%

 

 

 

                 512,537

NET ASSETS - 100.00%

 

 

 

 $       249,863,903

 

 

 

 

 

 

 

Shares

 

Value

Securities Sold Short  *

 

 

 

 

Large Cap Core

 

 

 

 

SPDR Consumer Staples Select Sector Fund

 

         46,000

 

 $           2,889,720

 

 

 

 

 

Real Estate

 

 

 

 

iShares US Real Estate ETF

 

           5,000

 

                 326,250

 

 

 

 

 

Total Securities Sold Short (proceeds $3,025,743) (a)

 

 

 

 $           3,215,970

 

 

 

 

 

+  All or part of the security was held as collateral for securities sold short as of January 31, 2014.

 

 

* Non-income producing security.

 

 

 

 

** Money Market Fund; Interest rate reflects seven-day effective yield on January 31, 2014.

 

 

 

 

 

 

 

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Liahona Fund (Continued)

January 31, 2014 (Unaudited)

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

(a) Represents cost for financial reporting purposes.   Aggregate cost for federal tax purposes, including securities

sold short, is $225,181,152 and differs from market value by net unrealized appreciation (depreciation)

 

of securities (including short sales) as follows:

 

 

 

 

 

 

Unrealized appreciation:

 

 $                 23,312,177

 

 

Unrealized depreciation:

 

                     (2,357,933)

 

Net unrealized appreciation:

 

 $                 20,954,244



AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Enhanced Income Fund

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Equity Funds - 99.38%

 

 

 

 

Developed International - 8.50%

 

 

 

 

iShares MSCI EAFE ETF +

 

       113,200

 

 $     7,200,652

iShares MSCI Germany ETF

 

         19,300

 

           575,719

 

 

 

 

        7,776,371

Emerging Markets - 1.50%

 

 

 

 

iShares MSCI Emerging Markets ETF +

 

         36,000

 

        1,374,840

 

 

 

 

 

Inverse Equity - 32.19%

 

 

 

 

ProShares Short Dow30 * +

 

       223,600

 

        6,144,528

ProShares Short Russell2000 * +

 

       162,000

 

        2,804,220

ProShares Short S&P500 * +

 

       785,000

 

      20,488,500

 

 

 

 

      29,437,248

Large Cap Core - 22.57%

 

 

 

 

iShares Core S&P 500 ETF +

 

         19,800

 

        3,546,180

SPDR Industrial Select Sector Fund +

 

         24,600

 

        1,230,738

SPDR S&P 500 ETF Trust +

 

         89,000

 

      15,858,020

 

 

 

 

      20,634,938

Large Cap Growth - 8.82%

 

 

 

 

Powershares QQQ Trust Series 1 +

 

         83,850

 

        7,233,740

SPDR Technology Select Sector Fund +

 

         24,000

 

           835,680

 

 

 

 

        8,069,420

Large Cap Value - 18.49%

 

 

 

 

SPDR Dow Jones Industrial Average ETF Trust +

 

         93,075

 

      14,583,922

SPDR Energy Select Sector Fund +

 

         15,000

 

        1,250,700

SPDR S&P Bank ETF

 

         33,500

 

        1,068,985

 

 

 

 

      16,903,607

Small/Mid Cap Core - 7.31%

 

 

 

 

iShares Russell 2000 ETF +

 

         36,800

 

        4,127,488

SPDR S&P MidCap 400 ETF Trust +

 

         10,700

 

        2,554,946

 

 

 

 

        6,682,434

 

 

 

 

 

Total Equity Funds (cost $91,413,954)

 

 

 

      90,878,858

 

 

 

 

 

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Enhanced Income Fund (Continued)

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Money Market Funds - 0.73%

 

 

 

 

Short-Term Cash - 0.73%

 

 

 

 

Federated Prime Cash Obligations Fund, 0.02% **

 

       663,410

 

 $        663,410

Total Money Market Funds (cost $663,410)

 

 

 

           663,410

 

 

 

 

 

Total Investments (cost $92,077,364) (a) - 100.11%  

 

 

 

 $   91,542,268

Other Assets Less Liabilities - Net - (0.11)%

 

 

 

           (97,766)

NET ASSETS - 100.00%

 

 

 

 $   91,444,502

 

 

 

 

 

+ Subject to written options.

 

 

 

 

* Non-income producing security.

 

 

 

 

** Money Market Fund; Interest rate reflects seven-day effective yield on January 31, 2014.

The market value of securities held to cover written call options at January 31, 2014 was $28,363,063.

 

 

 

 

 

EAFE - Europe, Australasia, Far East

 

 

 

 

ETF - Exchange Traded Fund

 

 

 

 

MSCI - Morgan Stanley Capital International

 

 

 

 

SPDR - Standard & Poors' Depositary Receipts

 

 

 

 

 

 

 

 

 

(a) Represents cost for financial reporting purposes.   Aggregate cost for federal tax purposes , including

opions written, is $94,034,608 and differs from market value by net unrealized appreciation

 

 

(depreciation) of securities as follows:

 

 

 

 

Unrealized appreciation:

 

 $           7,304,854

Unrealized depreciation:

 

             (9,847,483)

Net unrealized depreciation:

 

 $          (2,542,629)

 

 

 

 

 

 

 

Contracts**

 

Value

Schedule of Call Options Written *

 

 

 

 

iShares Core S&P 500 ETF Call

 

                96

 

 $               720

    February 2014, Exercise Price $192

 

 

 

 

iShares MSCI EAFE ETF Call

 

              118

 

                  118

    February 2014, Exercise Price $70

 

 

 

 

iShares MSCI Emerging Markets ETF Call

 

                50

 

                  150

    February 2014, Exercise Price $42.5

 

 

 

 

iShares MSCI Emerging Markets ETF Call

 

                50

 

                    50

    February 2014, Exercise Price $43

 

 

 

 

iShares MSCI Emerging Markets ETF Call

 

              100

 

                  150

    February 2014, Exercise Price $43.5

 

 

 

 

iShares Russell 2000 ETF Call

 

              100

 

                  300

    February 2014, Exercise Price $122

 

 

 

 

iShares Russell 2000 ETF Call

 

              200

 

                  600

    February 2014, Exercise Price $123

 

 

 

 

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Enhanced Income Fund (Continued)

January 31, 2014 (Unaudited)

 

 

Contracts**

 

Value

Schedule of Call Options Written * (Continued)

 

 

 

 

Powershares QQQ Trust Series 1 Call

 

              100

 

 $            1,800

    February 2014, Exercise Price $90

 

 

 

 

Powershares QQQ Trust Series 1 Call

 

              200

 

                  800

    February 2014, Exercise Price $92

 

 

 

 

Powershares QQQ Trust Series 1 Call

 

              200

 

                  600

    February 2014, Exercise Price $93

 

 

 

 

ProShares Short Dow30 Call

 

              650

 

               6,500

    February 2014, Exercise Price $29

 

 

 

 

ProShares Short Dow30 Call

 

              450

 

               9,000

    February 2014, Exercise Price $28

 

 

 

 

ProShares Short Russell2000 Call

 

              500

 

               5,000

    February 2014, Exercise Price $18

 

 

 

 

ProShares Short S&P500 Call

 

           2,000

 

             22,000

    February 2014, Exercise Price $27

 

 

 

 

SPDR Dow Jones Industrial Average ETF Trust Call

 

              100

 

                  100

    February 2014, Exercise Price $170

 

 

 

 

SPDR Dow Jones Industrial Average ETF Trust Call

 

                75

 

                  225

    February 2014, Exercise Price $171

 

 

 

 

SPDR Dow Jones Industrial Average ETF Trust Call

 

              100

 

                  200

    February 2014, Exercise Price $173

 

 

 

 

SPDR Energy Select Sector Fund Call

 

              100

 

                  100

    February 2014, Exercise Price $93

 

 

 

 

SPDR Industrial Select Sector Fund Call

 

              100

 

                  100

    February 2014, Exercise Price $54

 

 

 

 

SPDR S&P 500 ETF Trust Call

 

              100

 

                  800

    February 2014, Exercise Price $188

 

 

 

 

SPDR S&P 500 ETF Trust Call

 

              125

 

                  250

    February 2014, Exercise Price $192

 

 

 

 

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Enhanced Income Fund (Continued)

January 31, 2014 (Unaudited)

 

 

Contracts**

 

Value

Schedule of Call Options Written * (Continued)

 

 

 

 

SPDR S&P 500 ETF Trust Call

 

              100

 

 $               100

    February 2014, Exercise Price $193

 

 

 

 

SPDR S&P MidCap 400 ETF Trust Call

 

                10

 

                  300

    February 2014, Exercise Price $250

 

 

 

 

SPDR S&P MidCap 400 ETF Trust Call

 

                10

 

                    75

    February 2014, Exercise Price $255

 

 

 

 

SPDR S&P MidCap 400 ETF Trust Call

 

                40

 

                  200

    February 2014, Exercise Price $260

 

 

 

 

SPDR Technology Select Sector Fund Call

 

                50

 

                    50

    February 2014, Exercise Price $37

 

 

 

 

Total Call Options Written (proceeds $61,668) (a)

 

 

 

 $          50,288

 

 

 

 

 

* 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.

 

 

 

 



AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Flexible Income Fund

January 31, 2014 (Unaudited)

 

 

 Shares

 

 Value

Bond Funds - 75.76%

 

 

 

 

High Yield Bonds - 17.11%

 

 

 

 

iShares iBoxx $ High Yield Corporate Bond ETF

 

         103,080

 

 $          9,612,210

Peritus High Yield ETF

 

           33,700

 

             1,753,074

PIMCO 0-5 Year High Yield Corporate Bond Index ETF

 

           52,295

 

             5,528,104

PowerShares Senior Loan Portfolio

 

         434,800

 

           10,830,868

 

 

 

 

           27,724,256

Intermediate/Long-Term Bonds - 33.20%

 

 

 

 

iShares 3-7 Year Treasury Bond ETF

 

           27,500

 

             3,343,175

iShares Core Total US Bond Market ETF

 

           90,626

 

             9,781,264

iShares Credit Bond ETF

 

           33,450

 

             3,636,684

iShares Floating Rate Bond ETF

 

           49,075

 

             2,487,612

iShares iBoxx $ Investment Grade Corporate Bond ETF

 

           18,725

 

             2,178,467

iShares Intermediate Credit Bond ETF

 

           90,380

 

             9,845,093

iShares National AMT-Free Muni Bond ETF

 

           24,775

 

             2,636,060

PIMCO Total Return ETF

 

           29,700

 

             3,156,516

SPDR Blackstone / GSO Senior Loan ETF

 

           40,000

 

             2,008,800

Vanguard Intermediate-Term Corporate Bond ETF

 

           66,525

 

             5,613,380

Vanguard Mortgage-Backed Securities ETF

 

           41,000

 

             2,128,720

Vanguard Total Bond Market ETF

 

           85,885

 

             6,981,592

 

 

 

 

           53,797,363

International Bond - 4.13%

 

 

 

 

iShares 1-3 Year International Treasury Bond ETF

 

             5,600

 

                526,568

iShares Emerging Markets Local Currency Bond ETF

 

           52,400

 

             2,476,948

SPDR DB International Government Inflation-Protected Bond ETF

           63,675

 

             3,688,056

 

 

 

 

             6,691,572

Short-Term Bonds - 21.32%

 

 

 

 

Guggenheim BulletShares 2014 Corporate Bond ETF

 

         209,530

 

             4,444,131

iShares 1-3 Year Treasury Bond ETF

 

           22,400

 

             1,893,920

iShares Short-Term National AMT-Free Muni Bond ETF

 

           16,450

 

             1,749,622

PIMCO 1-5 Year U.S. TIPS Index ETF

 

           47,500

 

             2,522,250

PIMCO Enhanced Short Maturity ETF

 

           67,415

 

             6,829,814

SPDR Barclays Short Term High Yield Bond ETF

 

         246,475

 

             7,613,613

SPDR Nuveen Barclays Short Term Municipal Bond ETF

 

         106,998

 

             2,604,866

Vanguard Short-Term Corporate Bond ETF

 

           85,875

 

             6,882,881

 

 

 

 

           34,541,097

 

 

 

 

 

Total Bond Funds (cost $122,734,091)

 

 

 

         122,754,288

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Flexible Income Fund (Continued)

January 31, 2014 (Unaudited)

 

 

 Shares

 

 Value

Equity Funds - 9.86%

 

 

 

 

Currency - 1.19%

 

 

 

 

PowerShares DB US Dollar Index Bullish Fund *

 

           88,000

 

 $          1,921,040

 

 

 

 

 

Developed International - 1.03%

 

 

 

 

iShares MSCI EAFE ETF

 

           12,500

 

                795,125

iShares MSCI EAFE Value ETF

 

           16,000

 

                870,880

 

 

 

 

             1,666,005

Inverse Bond - 0.02%

 

 

 

 

ProShares UltraShort 20+ Year Treasury *

 

                500

 

                  34,965

 

 

 

 

 

Inverse Equity - 0.92%

 

 

 

 

ProShares Short S&P500 *

 

           57,000

 

             1,487,700

 

 

 

 

 

Large Cap Core - 1.84%

 

 

 

 

Guggenheim Multi-Asset Income ETF

 

           34,000

 

                824,500

iShares Core S&P 500 ETF

 

           12,000

 

             2,149,200

 

 

 

 

             2,973,700

Large Cap Value - 1.73%

 

 

 

 

PowerShares S&P 500 Low Volatility Portfolio

 

           59,300

 

             1,911,832

Vanguard High Dividend Yield ETF

 

           15,000

 

                897,600

 

 

 

 

             2,809,432

Preferred Security - 3.13%

 

 

 

 

iShares U.S. Preferred Stock ETF

 

           46,775

 

             1,773,708

PowerShares Financial Preferred Portfolio

 

         119,461

 

             2,073,843

PowerShares Preferred Portfolio

 

           88,700

 

             1,230,269

 

 

 

 

             5,077,820

 

 

 

 

 

Total Equity Funds (cost $16,097,946)

 

 

 

           15,970,662

 

 

 

 

 

 

 

 Principal ($)

 

 

U.S. Government and Agency Obligations - 11.51%

 

 

 

 

Federal Home Loan Bank, 2.90%, due 4/20/17

 

 $      225,264

 

                233,214

FGLMC, 4.50%, due 2/1/41

 

         518,214

 

                555,224

FGLMC, 5.50%, due 6/1/34

 

         407,490

 

                447,318

FGLMC, 6.00%, due 5/1/37

 

         214,881

 

                237,139

FGLMC, 6.50%, due 4/1/39

 

         319,705

 

                359,112

FNCL, 3.50%, due 12/1/30

 

         444,988

 

                450,325

FNCL, 3.50%, due 7/1/32

 

         814,892

 

                833,058

FNCL, 4.00%, due 2/1/40

 

         433,695

 

                454,322

FNCL, 4.00%, due 10/1/40

 

         427,641

 

                448,210

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Flexible Income Fund (Continued)

January 31, 2014 (Unaudited)

 

 

 Principal ($)

 

 Value

U.S. Government and Agency Obligations - 11.51% (continued)

 

 

FNCL, 4.00%, due 6/1/41

 

 $      677,799

 

 $             710,401

FNCL, 4.00%, due 9/1/41

 

         946,062

 

                991,605

FNCL, 4.00%, due 12/1/41

 

         545,615

 

                571,881

FNCL, 5.00%, due 11/1/39

 

         545,659

 

                596,048

FNCL, 5.00%, due 2/1/40

 

         921,129

 

             1,010,768

FNCL, 5.50%, due 12/1/39

 

         404,256

 

                445,346

FNCL, 5.50%, due 4/1/40

 

         551,524

 

                610,099

FNCL, 6.00%, due 12/1/35

 

         591,017

 

                657,048

FNCL, 6.00%, due 12/1/38

 

         249,441

 

                275,757

FNMA, 2.00%, due 8/28/20

 

      1,000,000

 

                975,847

Freddie Mac, 2.00%, due 3/12/20

 

      1,000,000

 

                974,918

Freddie Mac, 5.40%, due 3/17/21

 

         750,000

 

                824,105

GNMA, 3.50%, due 7/16/39

 

         318,766

 

                335,014

GNMA, 4.00%, due 2/20/39

 

         652,268

 

                684,992

United States Treasury Note, 2.625%, due 4/30/16

 

      1,000,000

 

             1,049,062

United States Treasury Note, 4.25%, due 11/15/17

 

      2,500,000

 

             2,795,312

United States Treasury Note, 4.50%, due 5/15/17

 

      1,000,000

 

             1,117,891

Total U.S. Government and Agency Obligations (cost $18,156,180)

 

           18,644,016

 

 

 

 

 

Money Market Funds - 2.84%

 

 

 

 

Short-Term Cash - 2.84%

 

 

 

 

Federated Prime Cash Obligations Fund, 0.02% **

 

      4,601,924

 

             4,601,924

Total Money Market Funds (cost $4,601,924)

 

 

 

             4,601,924

 

 

 

 

 

Total Investments (cost $161,590,141) (a) - 99.97%  

 

 

 

 $      161,970,890

Other Assets Less Liabilities - Net - 0.03%

 

 

 

                  50,710

NET ASSETS - 100.00%

 

 

 

 $      162,021,600

 

 

 

 

 

* Non-income producing security.

 

 

 

 

** Money Market Fund; Interest rate reflects seven-day effective yield on January 31, 2014.

 

 

 

 

 

 

 

DB - Deutsche Bank

     

 

 

 

ETF - Exchange Traded Fund

 

 

 

 

MBS - Mortgage Backed Security

 

 

 

 

SPDR - Standard & Poors' Depositary Receipts

 

 

 

 

 

 

 

 

 

(a) Represents cost for financial reporting purposes.   Aggregate cost for federal tax purposes is

 

 

$161,591,180 and differs from market value by net unrealized appreciation (depreciation)

 

 

of securities as follows:

 

 

 

 

 

 

Unrealized appreciation:

 

$                       2,249,737

 

 

Unrealized depreciation:

 

                    (1,870,027)

 

Net unrealized appreciation:

 

$                         379,710



AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Select Appreciation Fund

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Equity Funds - 96.72%

 

 

 

 

Emerging Markets - 0.49%

 

 

 

 

iShares MSCI Poland Capped ETF

 

         16,000

 

 $          446,880

 

 

 

 

 

Developed International - 12.66%

 

 

 

 

iShares International Select Dividend ETF

 

       147,000

 

          5,297,880

iShares MSCI Ireland Capped ETF

 

         50,000

 

          1,789,500

WisdomTree Europe SmallCap Dividend Fund

 

         77,000

 

          4,465,230

 

 

 

 

        11,552,610

Global Equity - 4.07%

 

 

 

 

PowerShares Global Listed Private Equity Portfolio

 

       320,000

 

          3,715,200

 

 

 

 

 

Large Cap Core - 20.19%

 

 

 

 

Guggenheim S&P 500 Equal Weight ETF

 

       100,000

 

          6,914,000

Market Vectors Wide Moat ETF

 

       230,000

 

          6,467,600

ProShares Large Cap Core Plus

 

         46,000

 

          3,904,940

SPDR Materials Select Sector Fund

 

         26,000

 

          1,145,040

 

 

 

 

        18,431,580

Large Cap Growth - 15.38%

 

 

 

 

First Trust Dow Jones Internet Index Fund *

 

         57,000

 

          3,420,570

First Trust NASDAQ-100 Ex-Technology Sector Index Fund

         47,000

 

          1,600,350

iShares PHLX Semiconductor ETF

 

         49,000

 

          3,524,080

Market Vectors Gaming ETF

 

         29,000

 

          1,496,977

Powershares Dynamic Pharmaceuticals Portfolio

 

         73,000

 

          3,992,370

 

 

 

 

        14,034,347

Large Cap Value - 1.11%

 

 

 

 

First Trust Capital Strength ETF

 

         31,000

 

          1,009,980

 

 

 

 

 

Small/Mid Cap Core - 8.76%

 

 

 

 

Guggenheim Spin-Off ETF

 

         97,000

 

          4,164,210

Powershares Dynamic Food & Beverage Portfolio

 

       108,000

 

          2,709,720

TrimTabs Float Shrink ETF

 

         24,000

 

          1,122,723

 

 

 

 

          7,996,653

Small/Mid Cap Growth - 14.46%

 

 

 

 

First Trust US IPO Index Fund

 

         48,000

 

          2,144,160

iShares U.S. Medical Devices ETF

 

         39,000

 

          3,657,030

PowerShares DWA SmallCap Momentum Portfolio

 

         44,000

 

          1,695,320

Powershares Dynamic Leisure & Entertainment Portfolio

 

         72,000

 

          2,334,240

SPDR S&P Oil & Gas Equipment & Services ETF

 

         83,000

 

          3,371,460

 

 

 

 

        13,202,210

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Select Appreciation Fund (Continued)

January 31, 2014 (Unaudited)

 

 

Shares

 

Value

Small/Mid Cap Value - 16.99%

 

 

 

 

Guggenheim Shipping ETF

 

         72,000

 

 $       1,509,840

Guggenheim Timber ETF

 

       167,000

 

          4,149,950

iShares U.S. Insurance ETF

 

       123,000

 

          5,391,090

PowerShares Dynamic Market Portfolio

 

         67,000

 

          4,456,170

 

 

 

 

        15,507,050

Other - 2.61%

 

 

 

 

WisdomTree Managed Futures Strategy Fund *

 

         58,000

 

          2,382,060

 

 

 

 

 

Total Equity Funds (cost $73,458,511)

 

 

 

        88,278,570

 

 

 

 

 

Money Market Funds - 3.35%

 

 

 

 

Short-Term Cash - 3.35%

 

 

 

 

Federated Prime Cash Obligations Fund, 0.02% **

 

    3,056,326

 

          3,056,326

Total Money Market Funds (cost $3,056,326)

 

 

 

          3,056,326

 

 

 

 

 

Total Investments (cost $76,514,837) (a) - 100.07%  

 

 

 

 $     91,334,896

Other Assets Less Liabilities - Net - (0.07)%

 

 

 

             (59,354)

NET ASSETS - 100.00%

 

 

 

 $     91,275,542

 

 

 

 

 

* Non-income producing security.

 

 

 

 

** Money Market Fund; Interest rate reflects seven-day effective yield on January 31, 2014.

 

 

 

 

 

 

 

ETF - Exchange Traded Fund

 

 

 

 

MSCI - Morgan Stanley Capital International

 

 

 

 

SPDR - Standard & Poors' Depositary Receipts

 

 

 

 

 

 

 

 

 

(a) Represents cost for financial reporting purposes.   Aggregate cost for federal tax purposes is

$76,514,837 and differs from market value by net unrealized appreciation (depreciation)

 

 

of securities as follows:

 

 

 

 

 

 

Unrealized appreciation:

 

 $            14,906,426

 

 

Unrealized depreciation:

 

                     (86,367)

 

Net unrealized appreciation:

 

 $            14,820,059



AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

Schedule of Investments - Shelter Fund

 

 

 

 

January 31, 2014 (Unaudited)

 

 

Shares

 

 Value

Equity Funds - 98.45%

 

 

 

 

Developed International - 13.54%

 

 

 

 

iShares MSCI EAFE ETF

 

       125,765

 

 $     7,999,912

 

 

 

 

 

Emerging Markets - 2.96%

 

 

 

 

iShares MSCI Emerging Markets ETF

 

         45,770

 

        1,747,956

 

 

 

 

 

Large Cap Core - 4.24%

 

 

 

 

iShares Core S&P 500 ETF

 

         14,000

 

        2,507,400

 

 

 

 

 

Large Cap Growth - 32.57%

 

 

 

 

iShares S&P 500 Growth ETF

 

       103,455

 

        9,916,162

Vanguard Growth ETF

 

       103,450

 

        9,328,086

 

 

 

 

      19,244,248

Large Cap Value - 32.32%

 

 

 

 

iShares S&P 500 Value ETF

 

       119,870

 

        9,834,135

Vanguard Value ETF

 

       125,890

 

        9,261,727

 

 

 

 

      19,095,862

Small/Mid Cap Core - 12.82%

 

 

 

 

iShares Core S&P Mid-Cap ETF

 

         31,200

 

        4,083,456

iShares Russell 2000 ETF

 

         31,155

 

        3,494,345

 

 

 

 

        7,577,801

 

 

 

 

 

Total Equity Funds (cost $54,147,512)

 

 

 

      58,173,179

 

 

 

 

 

Money Market Funds - 3.10%

 

 

 

 

Short-Term Cash - 3.10%

 

 

 

 

Federated Prime Cash Obligations Fund, 0.02% *

 

    1,829,979

 

        1,829,979

Total Money Market Funds (cost $1,829,979)

 

 

 

        1,829,979

 

 

 

 

 

Total Investments (cost $55,977,491) (a) - 101.55%

 

 

 

 $   60,003,158

Other Assets Less Liabilities - Net - (1.55)%

 

 

 

         (917,490)

NET ASSETS - 100.00%

 

 

 

 $   59,085,668

 

 

 

 

 

* Money Market Fund; Interest rate reflects seven-day effective yield on January 31, 2014.

 

 

 

 

 

EAFE - Europe, Australasia, Far East

 

 

 

 

ETF - Exchange Traded Fund

 

 

 

 

MSCI - Morgan Stanley Capital International

 

 

 

 

 

 

 

 

 

(a) Represents cost for financial reporting purposes.   Aggregate cost for federal tax purposes is $56,019,745 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized appreciation:

 

 $     4,130,516

Unrealized depreciation:

 

         (147,103)

Net unrealized appreciation:

 

 $     3,983,413




AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

 

 

Schedule of Investments (Continued)

 

January 31, 2014 (Unaudited)

 

 

 

 

 

 

 

The following is a summary of significant accounting policies followed by the Fund in preparation of its 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.

 

 

 

 

 

 

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 primary 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.  Options contracts listed on a securities exchange or board of trade for which market quotations are readily available shall be valued at the last quoted sales price or, in the absence of a sale, at the mean between the current bid and ask prices on the day of valuation.  Option contracts not listed on a securities exchange or board of trade for which over-the-counter market quotations are readily available shall be valued at the mean between the current bid and ask prices on the day of valuation.  Index options shall be valued at the mean between the current bid and ask prices on the day of valuation.  Short-term investments that mature in 60 days or less are 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 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 Fund may hold securities, such as private placements, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable.  These securities will be valued at their fair market value as determined using the “fair value” procedures approved by the Board.  The Board has delegated execution of these procedures to a fair value team composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) advisor.  The team may also enlist third party consultants such as an audit firm or financial officer of a security issuer on an as-needed basis to assist in determining a security-specific fair value.  The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.

 

 

 

 

 

 

Fair Value Team and Valuation Process - This team is composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) adviser.  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 adviser, the prices or values available do not represent the fair value of the instrument.  Factors which may cause the adviser 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 the 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 adviser based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances).

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

 

 

Schedule of Investments (Continued)

 

January 31, 2014 (Unaudited)

 

 

 

 

 

 

 

If the adviser is unable to obtain a current bid from such independent dealers or other independent parties, the fair value team shall determine the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Fund’s holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.

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.  

 

 

 

 

 

 

The Funds utilize various methods to measure the fair value of most 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 the 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 on 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 the Fund's own assumptions about the assumptions a market participate would use in valuing the assets 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 security. To the extent that valuation is based on models or inputs that are less 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 is a summary of the inputs used as of January 31, 2014 in valuing the Funds' investments measured at fair value:

 

 

 

 

 

 

 

 

Amerigo

 

 

 

 

 

Assets *

 

Level 1

Level 2

Level 3

Total

Equity Funds

 $         466,002,618

 $                           -   

 $                   -   

 $          466,002,618

Money Market Funds

                 3,945,087

                              -   

                      -   

                  3,945,087

Total

 $         469,947,705

 $                           -   

 $                   -   

 $          469,947,705

Clermont

 

 

 

 

Assets *

 

Level 1

Level 2

Level 3

Total

Bond Funds

 $         143,412,148

 $                           -   

 $                   -   

 $          143,412,148

Equity Funds

            146,233,607

                              -   

                      -   

              146,233,607

Money Market Funds

              10,224,378

                              -   

                      -   

                10,224,378

Total

 $         299,870,133

 $                           -   

 $                   -   

 $          299,870,133

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

 

 

Schedule of Investments (Continued)

 

January 31, 2014 (Unaudited)

 

Select Allocation

 

 

 

 

Assets *

 

Level 1

Level 2

Level 3

Total

Common Stock

 $             3,109,176

 $                           -   

 $                   -   

 $               3,109,176

Bond Funds

              54,911,590

                              -   

                      -   

                54,911,590

Equity Funds

            168,507,560

                              -   

                      -   

              168,507,560

Money Market Funds

                 1,046,637

                              -   

                      -   

                  1,046,637

Total

 $         227,574,963

 $                           -   

 $                   -   

 $          227,574,963

Descartes

 

 

 

 

Assets *

 

Level 1

Level 2

Level 3

Total

Bond Funds

 $           21,858,225

 $                           -   

 $                   -   

 $             21,858,225

Equity Funds

            137,226,710

                              -   

                      -   

              137,226,710

Money Market Funds

                 2,863,921

                              -   

                      -   

                  2,863,921

Total

 $         161,948,856

 $                           -   

 $                   -   

 $          161,948,856

Liahona

 

 

 

 

Assets *

 

Level 1

Level 2

Level 3

Total

Bond Funds

 $           85,291,560

 $                           -   

 $                   -   

 $             85,291,560

Equity Funds

            161,160,912

                              -   

                      -   

              161,160,912

Money Market Funds

                 2,898,894

                              -   

                      -   

                  2,898,894

Total

 $         249,351,366

 $                           -   

 $                   -   

 $          249,351,366

Enhanced Income

 

 

 

 

Assets *

 

Level 1

Level 2

Level 3

Total

Equity Funds

 $           90,878,858

 $                           -   

 $                   -   

 $             90,878,858

Money Market Funds

                    663,410

                              -   

                      -   

                     663,410

Total

 $           91,542,268

 $                           -   

 $                   -   

 $             91,542,268

 

 

 

 

 

 

Liabilities

 

Level 1

Level 2

Level 3

Total

Call Options Written

 $                   50,288

 $                           -   

 $                   -   

 $                    50,288

Total

 $                   50,288

 $                           -   

 $                   -   

 $                    50,288

Flexible Income

 

 

 

 

Assets *

 

Level 1

Level 2

Level 3

Total

Bond Funds

 $         122,754,288

 $                           -   

 $                   -   

 $          122,754,288

Equity Funds

              15,970,662

                              -   

                      -   

                15,970,662

U.S. Government & Agency Obligations

                               -   

              18,644,016

                      -   

                18,644,016

Money Market Funds

                 4,601,924

                              -   

                      -   

                  4,601,924

Total

 $         143,326,874

 $          18,644,016

 $                   -   

 $          161,970,890

Select Appreciation

 

 

 

 

Assets *

 

Level 1

Level 2

Level 3

Total

Equity Funds

 $           88,278,570

 $                           -   

 $                   -   

 $             88,278,570

Money Market Funds

                 3,056,326

                              -   

                      -   

                  3,056,326

Total

 $           91,334,896

 $                           -   

 $                   -   

 $             91,334,896

Shelter

 

 

 

 

Assets *

 

Level 1

Level 2

Level 3

Total

Equity Funds

 $           58,173,179

 $                           -   

 $                   -   

 $             58,173,179

Money Market Funds

                 1,829,979

                              -   

                      -   

                  1,829,979

Total

 $           60,003,158

 $                           -   

 $                   -   

 $             60,003,158

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 Portfolios of Investments for security classifications.

AdvisorOne Funds Quarterly Report

 

 

 

 

 

 

 

 

 

 

 

Schedule of Investments (Continued)

 

January 31, 2014 (Unaudited)

 

 

 

 

 

 

 

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.  

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.

Option Transactions

 

 

 

 

The Funds are subject to equity price risk in the normal course of pursuing their investment objectives and may purchase or sell (write) options to help hedge against risk.  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 the 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 the 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 price of the security underlying the written option.

 

 

 

 

 

 

Each Fund may purchase put and call options.  Put options are purchased to hedge against a decline in the value of securities held in the 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.  During the period ended January 31, 2014, the Enhanced Income Fund's unrealized appreciation and realized gain on option contracts subject to equity price risk amounted to $11,380 and $53,529, respectively and serve as an indicator of the volume of derivative activity for the Fund during the period.

 

 

 

 

 

 





Item 2. Controls and Procedures.


(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the  Securities Exchange Act of 1934, as amended.


(b)

There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.


Item 3.  Exhibits.  


Certifications required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) (and Item 3 of Form N-Q) 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

       Ryan Beach, President

       

Date

4/1/14


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

        Ryan Beach, President

       

Date

4/1/14


By (Signature and Title)

/s/ Dawn Borelli

       Dawn Borelli, Treasurer

        

Date

4/1/14