united states
securities and exchange commission
washington, d.c. 20549

form n-csr

certified shareholder report of registered management
investment companies

Investment Company Act file number 811-21720

Northern Lights Fund Trust

(Exact name of registrant as specified in charter)

17605 Wright Street, Omaha, Nebraska 68130

(Address of principal executive offices) (Zip code)

James Ash, 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: 631-470-2619

Date of fiscal year end: 7/31

Date of reporting period:_01/31/17

Item 1. Reports to Stockholders.

Semi-Annual Report

January 31, 2017

1-877-464-3111

www.thebetafund.com

Distributed by Northern Lights Distributors, LLC

Member FINRA

GMG Defensive Beta Fund

PORTFOLIO REVIEW

January 31, 2017 (Unaudited)

The Fund’s performance figures* for the periods ended January 31, 2017, as compared to its benchmarks:

			Three Year	Five Year	Annualized Since
	Six Months	One Year	Annualized	Annualized	Inception ^
GMG Defensive Beta Fund	(5.68)%	(2.12)%	(1.31)%	2.40%	2.98%
S&P 500 Total Return Index **	5.96%	20.04%	10.85%	14.09%	14.15%
CBOE 30 Year Treasury Bond Index ***	39.83%	10.62%	(5.56)%	0.79%	(4.21)%
Blended Benchmark Index ****	22.20%	16.18%	3.06%	7.87%	5.13%

* The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemptions of Fund shares. Performance figures for periods greater than 1 year are annualized. Per the fee table in the most recent prospectus, the Fund’s total annual operating expense ratio is 2.41% (before waiver). For performance information current to the most recent month-end, please call 1-877-464-3111.

** The S&P 500 Total Return Index is a widely accepted, unmanaged index of 500 of the largest US domiciled companies. The index does not take into account charges, fees and other expenses. Investors cannot invest directly in an index.

*** The Chicago Board Options Exchange (CBOE) 30-Year Treasury-Bond Index is based on the yield-to-maturity of the most recently auctioned 30 Year Treasury Bond. Investors cannot invest directly in an index.

**** The Blended Benchmark Index represents a blend of 50% CBOE 30 Year Treasury Bond Index and 50% S&P 500 Total Return Index. The index is unmanaged and its results do not reflect the effect of sales charges, commissions, account fees, expenses or taxes. Investors cannot invest directly in an index.

^ Inception date is September 1, 2009.

Holdings by Industry Asset Class or Investment Type as of January 31, 2017	% of Net Assets
U.S. Government		33.1	%
Debt Funds		22.1	%
Telecommunications		7.4	%
Equity Funds		5.5	%
Computers		3.3	%
Internet		3.2	%
Diversified Financial Services		3.0	%
Retail		3.0	%
Aerospace/Defense		2.9	%
Other assets and liabilities - net		16.5	%
		100.0	%

Please refer to the Consolidated Portfolio of Investments in this semi-annual report for a detailed analysis of the Fund’s holdings.

GMG Defensive Beta Fund

CONSOLIDATED PORTFOLIO OF INVESTMENTS

January 31, 2017 (Unaudited)

Shares			Fair Value
		COMMON STOCKS - 22.8%
		AEROSPACE/DEFENSE - 2.9%
	3,000	Boeing Co. (The)	$	490,260
		COMPUTERS - 3.3%
	4,660	Apple, Inc.		565,491
		DIVERSIFIED FINANCIAL SERVICES - 3.0%
	6,220	Visa, Inc. - Cl. A		514,456
		INTERNET - 3.2%
	650	Alphabet, Inc. *		533,124
		RETAIL - 3.0%
	3,000	Dollar Tree, Inc. *		231,570
	4,000	Foot Locker, Inc.		274,160
				505,730
		TELECOMMUNICATIONS - 7.4%
	8,000	AT&T, Inc.		337,280
	14,000	Cisco Systems, Inc.		430,080
	9,700	Verizon Communications, Inc.		475,397
				1,242,757
		TOTAL COMMON STOCKS (Cost - $2,066,085)		3,851,818
		EXCHANGE TRADED FUNDS - 27.6%
		DEBT FUNDS - 22.1%
	7,800	iShares 1-3 Year Credit Bond ETF		820,092
	34,500	iShares 1-3 Year Treasury Bond ETF +		2,916,630
				3,736,722
		EQUITY FUNDS - 5.5%
	11,200	Vanguard REIT ETF		922,544
		TOTAL EXCHANGE TRADED FUNDS (Cost - $4,642,309)		4,659,266

See accompanying notes to Consolidated Financial Statements.

GMG Defensive Beta Fund

CONSOLIDATED PORTFOLIO OF INVESTMENTS (Continued)

January 31, 2017 (Unaudited)

Principal			Fair Value
		U.S. GOVERNMENT - 33.1%
$	2,000,000	United States Treasury Note/Bond, 1.125%, due 3/31/2020	$	1,976,016
	3,000,000	United States Treasury Note/Bond, 1.250%, due 3/31/2021		2,935,371
	700,000	United States Treasury Note/Bond, 1.625%, due 11/15/2022		682,445
		TOTAL U.S. GOVERNMENT (Cost - $5,701,396)		5,593,832
		TOTAL INVESTMENTS - 83.5% (Cost - $12,409,790) (a)	$	14,104,916
		OTHER ASSETS & LIABILITIES - NET - 16.5%		2,790,299
		TOTAL NET ASSETS - 100.0%	$	16,895,215

					Unrealized
TOTAL RETURN SWAP CONTRACTS	Counterparty	Notional Amount		Termination Date	Depreciation
Total return swap with Deutsche Bank AG, London Branch. Effective April 16, 2016 for 5 years  unless earlier terminated. Total return swap related to the DBCCFX GMG USD 5 Year Treasury Index. Return to the Fund is based on the total return of the Index which includes an index fee of 0.75% per annum on the notional amount of the Idex +	Deutsche Bank	$	15,000,000	4/1/2021	$	(840,390	)

(a) Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $12,428,579 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:	$	1,798,145
Unrealized Depreciation:		(121,808	)
Net Unrealized Appreciation:	$	1,676,337

* Non-Income producing security.

+ All or a portion of this investment is a holding of the GMG Commodity Fund Limited.

ETF - Exchange Traded Fund

REIT - Real Estate Investment Trust

See accompanying notes to Consolidated Financial Statements.

GMG Defensive Beta Fund

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

January 31, 2017 (Unaudited)

ASSETS
Investment securities:
At cost	$	12,409,790
At value	$	14,104,916
Cash		594,358
Cash held as Collateral for Swaps		3,000,000
Dividends and interest receivable		42,357
Receivable for Fund shares sold		6,520
Due from advisor		901
Prepaid expenses and other assets		14,094
TOTAL ASSETS		17,763,146
LIABILITIES
Unrealized Depreciation on swap contracts		840,390
Fund shares repurchased		11,094
Payable to related parties		1,907
Due to Broker		88
Accrued expenses and other liabilities		14,452
TOTAL LIABILITIES		867,931
NET ASSETS	$	16,895,215
Net Assets Consist Of:
Paid in capital	$	17,099,824
Undistributed net investment loss		(21,046	)
Accumulated net realized loss from security transactions		(1,038,299	)
Net unrealized appreciation of investments and swap contracts		854,736
NET ASSETS	$	16,895,215
Shares of beneficial interest outstanding ($0 par value, unlimited shares authorized)		1,749,362
Net asset value (Net assets ÷ Shares outstanding), offering, and redemption price per share (a)	$	9.66

(a) Redemptions made within 15 days of purchase may be assessed a redemption fee of 2.00%.

See accompanying notes to Consolidated Financial Statements.

GMG Defensive Beta Fund

CONSOLIDATED STATEMENT OF OPERATIONS

For the Six Months Ended January 31, 2017 (Unaudited)

INVESTMENT INCOME
Dividends	$	92,106
Interest		35,259
TOTAL INVESTMENT INCOME		127,365
EXPENSES
Investment advisory fees		95,978
Administrative services fees		22,245
Transfer agent fees		19,566
Accounting services fees		13,705
Printing and postage expenses		12,464
Legal fees		11,513
Non 12b-1 shareholder services fees		10,978
Registration fees		9,469
Compliance officer fees		9,445
Audit fees		8,758
Trustees’ fees and expenses		5,883
Custodian fees		3,015
Insurance expense		432
Other expenses		307
TOTAL EXPENSES		223,758
Less: Fees waived by the Advisor		(81,315	)
NET EXPENSES		142,443
NET INVESTMENT LOSS		(15,078	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from:
Investment transactions		767,643
		767,643
Net change in unrealized depreciation of:
Investments		(1,068,852	)
Swaps		(827,529	)
		(1,896,381	)
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS		(1,128,738	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(1,143,816	)

See accompanying notes to Consolidated Financial Statements.

GMG Defensive Beta Fund

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

	For the
	Six Months Ended			For the
	January 31, 2017			Year Ended
	(Unaudited)			July 31, 2016
FROM OPERATIONS
Net investment loss	$	(15,078	)	$	(13,099	)
Net realized gain from security transactions		767,643			615,903
Distributions of long-term capital gains from underlying investment companies		—			21,347
Net change in unrealized depreciation of investments and swaps		(1,896,381	)		(1,686,708	)
Net decrease in net assets resulting from operations		(1,143,816	)		(1,062,557	)
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gain		(811,316	)		(3,965,366	)
Net decrease in net assets from distributions to shareholders		(811,316	)		(3,965,366	)
FROM SHARES OF BENEFICIAL INTEREST
Proceeds from shares sold		1,365,927			3,247,368
Net asset value of shares issued in reinvestment of distributions to shareholders		795,887			3,870,412
Redemption fee proceeds		92			252
Payments for shares redeemed		(3,997,256	)		(6,870,097	)
Net increase (decrease) in net assets from shares of beneficial interest		(1,835,350	)		247,935
TOTAL DECREASE IN NET ASSETS		(3,790,482	)		(4,779,988	)
NET ASSETS
Beginning of Period		20,685,697			25,465,685
End of Period *	$	16,895,215		$	20,685,697
* Includes undistributed net investment loss of:	$	(21,046	)	$	(5,968	)
SHARE ACTIVITY
Shares Sold		131,226			282,656
Shares Reinvested		81,048			356,720
Shares Redeemed		(390,328	)		(593,792	)
Net increase (decrease) in shares of beneficial interest outstanding		(178,054	)		45,584

See accompanying notes to Consolidated Financial Statements.

GMG Defensive Beta Fund

CONSOLIDATED FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout Each Period

	For the Six
	Months Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	January 31, 2017			July 31,			July 31,			July 31,			July 31,			July 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value, beginning of period	$	10.73		$	13.53		$	13.47		$	12.41		$	11.18		$	11.30
Activity from investment operations:
Net investment income (loss) (1)		(0.01	)		(0.01	)		(0.06	)		0.03			0.02			(0.03	)
Net realized and unrealized gain (loss) on investments, securities sold short and options transactions		(0.59	)		(0.52	)		0.20			1.04			1.21			0.01
Total from investment operations		(0.60	)		(0.53	)		0.14			1.07			1.23			(0.02	)
Less distributions from:
Net investment income		—			—			(0.03	)		(0.01	)		—			(0.08	)
Net realized gains		(0.47	)		(2.27	)		(0.05	)		—			—			(0.02	)
Total distributions		(0.47	)		(2.27	)		(0.08	)		(0.01	)		—			(0.10	)
Paid-in-Capital from Redemption Fees (2)		0.00			0.00			0.00			0.00			0.00			0.00
Net asset value, end of period	$	9.66		$	10.73		$	13.53		$	13.47		$	12.41		$	11.18
Total return (3)		(5.68	)% (8)		(4.09	)%		1.06	%		8.58	%		11.00	%		(0.13	)%
Net assets, end of period (000s)	$	16,895		$	20,686		$	25,466		$	29,072		$	25,044		$	21,680
Ratio of gross expenses to average net assets (4)(5)
including dividend expense		2.33	% (7)		2.16	%		2.25	%		1.82	%		2.23	%		2.49	%
excluding dividend expense		2.33	% (7)		2.16	%		1.91	%		1.82	%		2.23	%		2.49	%
Ratio of net expenses to average net assets (5)
including dividend expense		1.49	% (7)		1.49	%		1.82	%		1.49	%		1.57	%		1.74	%
excluding dividend expense		1.49	% (7)		1.49	%		1.49	%		1.49	%		1.57	%		1.74	%
Ratio of net investment income (loss) to average net assets (6)		(0.16	)% (7)		(0.06	)%		(0.43	)%		0.24	%		0.13	%		(0.30	)%
Portfolio Turnover Rate		0	% (8)		53	%		67	%		24	%		14	%		30	%

(1) Per share amounts calculated using the average shares method, which more appropriately presents the per share data for the period.

(2) Amount represents less than $0.01 per share.

(3) Total returns shown exclude the effect of applicable sales charges and redemption fees.

(4) Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the advisor.

(5) Does not include the expenses of other investment companies in which the Fund invests.

(6) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

(7) Annualized.

(8) Not annualized.

See accompanying notes to Consolidated Financial Statements.

GMG Defensive Beta Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

January 31, 2017 (Unaudited)

1. ORGANIZATION

The GMG Defensive Beta Fund (the “Fund”) is a diversified series of shares of beneficial interest of Northern Lights Fund Trust (the “Trust”), a statutory trust organized under the laws of the State of Delaware on January 19, 2005 and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Fund seeks to provide long-term capital appreciation with less volatility than broader equity markets. The Fund commenced operations on September 1, 2009.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Fund in preparation of its consolidated financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of consolidated 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 consolidated financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services – Investment Companies” including FASB Accounting Standard Update ASU 2013-08.

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 primary exchange 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. Investments in swap contracts are reported at fair value based on daily price reporting from the swap counterparty. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value.

The Fund may hold securities, such as private investments, 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 using the “fair value” procedures approved by the Trust’s Board of Trustees (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 a valuation

GMG Defensive Beta Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

January 31, 2017 (Unaudited)

specialist at a public accounting firm, valuation consultant or financial officer of a security issuer on an as-needed basis to assist in determining a security-specific fair value. The Board has also engaged a third party valuation firm to attend valuation meetings held by the Trust, review minutes of such meetings and report to the Board on a quarterly basis. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.

Fair Valuation Process – As noted above, the fair value team is composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) advisor. The applicable investments are valued collectively via inputs from each of these groups. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source), (ii) securities for which, in the judgment of the advisor, the prices or values available do not represent the fair value of the instrument. Factors which may cause the advisor to make such a judgment include, but are not limited to, the following: only a bid price or an ask price is available; the spread between bid and ask 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 investments or non-traded securities are valued via inputs from the advisor 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). If the advisor is unable to obtain a current bid from such independent dealers or other independent parties, the fair value team shall determine the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of 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.

The Fund utilizes various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Fund has the ability to access.

GMG Defensive Beta Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

January 31, 2017 (Unaudited)

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of January 31, 2017 for the Fund’s assets measured at fair value:

GMG Defensive Beta Fund
Assets *	Level 1		Level 2		Level 3		Total
Common Stocks	$	3,851,818	$	—	$	—	$	3,851,818
Exchange Traded Funds		4,659,266		—		—		4,659,266
U.S. Government		—		5,593,832		—		5,593,832
Total	$	8,511,084	$	5,593,832	$	—	$	14,104,916
Liabilities *	Level 1		Level 2		Level 3		Total
Open Swap Contracts **	$	—	$	840,390	$	—	$	840,390
Total	$	—	$	840,390	$	—	$	840,390

There were no transfers between Levels during the current period presented.

It is the Fund’s policy to recognize transfers between any Level at the end of the reporting period.

The Fund did not hold any Level 3 securities during the period.

* Refer to the Fund’s Consolidated Portfolio of Investments for industry classifications.

** Includes cumulative net unrealized depreciation on open swap contracts as of January 31, 2017

GMG Defensive Beta Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

January 31, 2017 (Unaudited)

Consolidation of Subsidiaries – GMG Commodity Fund Limited (“GMG-CFC” or the “CFC”) – The Consolidated Portfolio of Investments, Consolidated Statement of Asset and Liabilities, Consolidated Statement of Operations, Consolidated Statement of Changes in Net Assets and the Consolidated Financial Highlights of the Fund includes the accounts of GMG-CFC, a wholly-owned and controlled subsidiary. All inter-company accounts and transactions have been eliminated in consolidation.

The Fund may invest up to 25% of its total assets in the CFC, which acts as an investment vehicle in order to effect certain investments consistent with the Fund’s investment objectives and policies. GMG-CFC utilizes commodity-based exchange traded funds, exchange traded notes and derivative products to facilitate the Fund’s pursuit of its investment objective. In accordance with its investment objective and through its exposure to the aforementioned commodity based products, GMG may have increased or decreased exposure to one or more of the risk factors defined in the Principal Investment Risks section of the Fund’s prospectus.

A summary of the Fund’s investment in the CFC is as follows:

		CFC Net Assets at	% Of Fund Net Assets
	Inception Date of CFC	January 31, 2017	at January 31, 2017
GMG-CFC	1/7/2010	$ 3,276,379	19.39%

Security Transactions and Related Income – Security transactions are accounted for on the trade date. Interest income is recognized on an accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

Swap Agreements – The Fund is subject to equity price risk, interest rate risk, credit risk, counterparty risk and/or commodity risk in the normal course of pursuing their respective investment objectives. The Fund may enter into interest rate, index and currency exchange rate swap agreements in an attempt to obtain a particular desired return at a lower cost to the Fund than if it had invested directly in an instrument that yielded that desired return. Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a few weeks to more than one year. In a standard “swap” transaction, two parties agree to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a “notional amount,” i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index or market segment. The “notional amount” of the swap agreement is only a basis on which to calculate the obligations the parties to a swap agreement have agreed to exchange. The Fund’s obligations (or rights) under a swap agreement will generally be equal only to the amount to be paid or received under the agreement based on the relative values of the positions held by each party to the agreement (the “net amount”). Changes in the value of swap agreements are recognized as unrealized gains and losses in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap

GMG Defensive Beta Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

January 31, 2017 (Unaudited)

agreement at the end of each trading day. A liquidation payment received or made at the termination of the swap agreement is recorded as a realized gain or loss on the Statement of Operations. The Fund maintains a cash balance as collateral to secure their obligations under the swaps. The amount posted as collateral for the swap was $3,000,000 as of January 31, 2017. The Fund segregates liquid securities having a value at least equal to the amount of their current obligation under any swap transaction. As of January 31, 2017 the amount of unrealized and realized loss on swap contracts subject to commodity price, interest rate and foreign exchange rate risk amounted to $840,390 and $0, respectively.

Offsetting of Financial Assets and Derivative Assets –

The Fund’s policy is to recognize a gross asset or liability equal to the gross appreciation/(depreciation) of the derivative. During the six months ended January 31, 2017, the Fund was subject to master netting arrangements. The following table shows additional information regarding the offsetting of assets and liabilities at January 31, 2017:

Liability:	Gross Amounts Not Offset in the Consolidated Statement of Assets & Liabilities
Description	Gross Amounts Presented in the Consolidated Statement of Assets & Liabilities			Financial Instruments Pledged		Cash Collateral Pledged		Net Amount of Assets
Total Return Swap	$	(840,390	)	$	—	$	3,000,000	$	2,159,610
	$	(840,390	)	$	—	$	3,000,000	$	2,159,610

The derivative instruments outstanding as of January 31, 2017 as disclosed in the Consolidated Portfolio of Investments and the amounts of realized and changes in unrealized gains and losses on derivative instruments during the period as disclosed in the Consolidated Statements of Operations serve as indicators of the volume of derivative activity for the Fund.

Dividends and Distributions to Shareholders – Dividends from net investment income, if any, are declared and paid annually. Distributable net realized capital gains, if any, are declared and distributed annually in December. Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (i.e., deferred losses, capital loss carry forwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions to shareholders are recorded on the ex-dividend date.

Cash and Cash Equivalents – Cash and cash equivalents include cash and overnight investments in interest-bearing demand deposits with a financial institution with maturities of three months or less. The Fund may maintain deposits with a high quality financial institution in an amount that is in excess of federally insured limits.

GMG Defensive Beta Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

January 31, 2017 (Unaudited)

Expenses – Expenses of the Trust that are directly identifiable to a specific fund are charged to that fund. Expenses not readily identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative sizes of the funds in the Trust.

Federal Income Taxes – The Fund intends to qualify as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended, and, if so qualified, will not be liable for federal income taxes to the extent all earnings are distributed to shareholders on a timely basis. Therefore, no federal income tax provision has been recorded.

The Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for the open tax years 2014 – 2016, or expected to be taken in the Fund’s 2017 tax returns. The Fund identifies its major tax jurisdictions as U.S. Federal, Nebraska and foreign jurisdictions where the Fund makes significant investments; however, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

Exchange Traded Funds – The Fund may invest in exchange traded funds (“ETFs”). ETFs are a type of fund bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities. The Fund may purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market. 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.

Indemnification – The Trust indemnifies its officers and Trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss due to these warranties and indemnities to be remote.

3. INVESTMENT TRANSACTIONS

For the six months ended January 31, 2017, cost of purchases and proceeds from sales of portfolio securities, other than short-term investments, amounted to $0 and $1,682,544, respectively.

GMG Defensive Beta Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

January 31, 2017 (Unaudited)

4. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES

Montebello Partners, LLC (the “Advisor”) serves as the Fund’s investment advisor. Pursuant to an investment advisory agreement with the Trust (the “Advisory Agreement”), on behalf of the Fund, the Advisor, under the oversight of the Board, directs the daily operations of the Fund and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Advisor, the Fund pays the Advisor a management fee, computed and accrued daily and paid monthly, at an annual rate of 1.00% of the Fund’s average daily net assets. For the six months ended January 31, 2017, the Fund incurred advisory fees of $95,978 under the Advisory Agreement.

Pursuant to a written contract (the “Waiver Agreement”), the Advisor has agreed, at least until November 30, 2017, to waive a portion of its advisory fee and has agreed to reimburse the Fund for other expenses to the extent necessary so that the total expenses incurred by the Fund (exclusive of any front-end or contingent deferred loads, brokerage fees and commissions, acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), borrowing costs (such as interest and dividend expense on securities sold short), taxes and extraordinary expenses such as litigation expenses) do not exceed 1.49% per annum of the Fund’s average daily net assets. Prior to December 1, 2012, the Advisor agreed to waive a portion of its advisory fee so that total expenses incurred by the Fund did not exceed 1.74% per annum of the Fund’s average daily net assets. For the six months ended January 31, 2017 , the Advisor waived fees in the amount of $81,315.

If the Advisor waives any fee or reimburses any expense pursuant to the Waiver Agreement, and the Fund’s Operating Expenses are subsequently less than 1.49% of the Fund’s average daily net assets (the “Expense Limitation”), the Advisor shall be entitled to reimbursement by the Fund for such waived fees or reimbursed expenses provided that such reimbursement does not cause the Fund’s expenses to exceed the Expense Limitation. If Fund Operating Expenses subsequently exceed the Expense Limitation, the reimbursements shall be suspended. The Advisor may seek reimbursement only for fees waived or paid by it during the three fiscal years prior to such reimbursement; provided, however, that such expenses may only be reimbursed to the extent they were waived or paid after the date of the Waiver Agreement (or any similar agreement). The Board may terminate this expense reimbursement arrangement at any time.

The following amounts are subject to recapture by the listed dates.

7/31/2017		7/31/2018		7/31/2019		Total
$	90,046	$	119,208	$	148,654	$	357,908

During the six months ended January 31, 2017, Gary Goldberg & Co., a registered broker/dealer and an affiliate of the Advisor, executed trades on behalf of the Fund. These trades were cleared through National Financial Services and Gary Goldberg & Co. received $36 in trade commissions.

GMG Defensive Beta Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

January 31, 2017 (Unaudited)

Distributor – The distributor of the Fund is Northern Lights Distributors, LLC (the “Distributor”).

In addition, certain affiliates of the Distributor provide services to the Fund as follows:

Gemini Fund Services, LLC (“GFS”), an affiliate of the Distributor, provides administration, fund accounting, and transfer agent services to the Trust. Pursuant to a separate servicing agreement with GFS, the Fund pays GFS customary fees for providing administration, fund accounting and transfer agency services to the Fund. A Trustee and certain officers of the Trust are also officers of GFS, and are not paid any fees directly by the Fund for serving in such capacities.

Northern Lights Compliance Services, LLC (“NLCS”), an affiliate of GFS and the Distributor, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives customary fees from the Fund.

Blu Giant, LLC (“Blu Giant”) – Blu Giant, an affiliate of GFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Fund on an ad-hoc basis. For the provision of these services, Blu Giant receives customary fees from the Fund.

5. REDEMPTION FEES

The Fund may assess a short-term redemption fee of 2.00% of the total redemption amount if a shareholder sells their shares after holding them for less than 15 days. For the six months ended January 31, 2017, the Fund assessed $92 in redemption fees.

6. DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

The tax character of distributions paid during the fiscal years ended July 31, 2016 and July 31, 2015 was as follows:

	Fiscal Year Ended		Fiscal Year Ended
	July 31, 2016		July 31, 2015
Ordinary Income	$	—	$	57,586
Long-Term Capital Gain		3,965,366		118,659
	$	3,965,366	$	176,245

As of July 31, 2016, the components of accumulated earnings / (deficit) on a tax basis were as follows:

Undistributed		Undistributed		Post October Loss			Capital Loss		Other			Unrealized		Total
Ordinary		Long-Term		and			Carry		Book/Tax			Appreciation/		Accumulated
Income		Gains		Late Year Loss			Forwards		Differences			(Depreciation)		Earnings/(Deficits)
$	—	$	681,910	$	(23,363	)	$	—	$	(1,653,213	)	$	2,745,189	$	1,750,523

GMG Defensive Beta Fund

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

January 31, 2017 (Unaudited)

The difference between book basis and tax basis accumulated net investment loss, accumulated net realized gain, and unrealized appreciation from investments is primarily attributable to the tax deferral of losses on straddles, adjustments for partnerships and the Fund’s holding in GMG-CFC.

Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Fund incurred and elected to defer such late year losses of $23,363. Permanent book and tax differences, primarily attributable to the adjustment for partnerships, resulted in reclassifications for the year ended July 31, 2016 as follows:

Paid			Undistributed		Accumulated
In			Net Investment		Net Realized
Capital			Income (Loss)		Gains (Loss)
$	(129,528	)	$	100,284	$	29,244

7. NEW ACCOUNTING PRONOUNCEMENT

On October 13, 2016 the Securities and Exchange Commission amended existing rules intended to modernize reporting and disclosure of information. These amendments relate to Regulation S-X which sets forth the form and content of financial statements. At this time, management is evaluating the implications of adopting these amendments and their impact on the financial statements and accompanying notes.

8. SUBSEQUENT EVENTS

Subsequent events after the date of the statement of assets and liabilities have been evaluated through the date the financial statements were issued. Management has concluded that there is no impact requiring adjustment of disclosure in the financial statements.

GMG Defensive Beta Fund

EXPENSE EXAMPLES

January 31, 2017 (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from August 1, 2016 through January 31, 2017.

Actual Expenses

The “Actual” expenses line in the table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The “Hypothetical” line in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or redemption fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning	Ending	Expenses Paid	Expense Ratio
	Account Value	Account Value	During Period	During Period **
GMG Defensive Beta Fund	8/1/16	1/31/17	8/1/16 – 1/31/17*	8/1/16 – 1/31/17
Actual	$1,000.00	$943.20	$7.30	1.49%
Hypothetical
(5% return before expenses)	$1,000.00	$1,017.69	$7.58	1.49%

* Expenses are equal to the average account value over the period, multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the period (184) divided by the number of days in the fiscal year (365).

** Annualized.

PRIVACY NOTICE

Northern Lights Fund Trust

Rev. February 2014

FACTS WHAT DOES NORTHERN LIGHTS FUND TRUST DO WITH YOUR PERSONAL INFORMATION?

Why? Financial companies choose how they share your personal information.  Federal law gives consumers the right to limit some, but not all sharing.  Federal law also requires us to tell you how we collect, share, and protect your personal information.  Please read this notice carefully to understand what we do.

What? The types of personal information we collect and share depends on the product or service that you have with us. This information can include: ●         Social Security number and wire transfer instructions ●         account transactions and transaction history ●         investment experience and purchase history When you are no longer our customer, we continue to share your information as described in this notice.

How? All financial companies need to share customers’ personal information to run their everyday business.  In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Northern Lights Fund Trust chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information:	Does Northern Lights Fund Trust share information?	Can you limit this sharing?
For our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus.	YES	NO
For our marketing purposes - to offer our products and services to you.	NO	We don’t share
For joint marketing with other financial companies.	NO	We don’t share
For our affiliates’ everyday business purposes - information about your transactions and records.	NO	We don’t share
For our affiliates’ everyday business purposes - information about your credit worthiness.	NO	We don’t share
For nonaffiliates to market to you	NO	We don’t share

QUESTIONS?   Call 1-402-493-4603

PRIVACY NOTICE

Northern Lights Fund Trust

Page 2

What we do:
How does Northern Lights Fund Trust protect my personal information?	To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.
How does Northern Lights Fund Trust collect my personal information?	We collect your personal information, for example, when you ●     open an account or deposit money ●     direct us to buy securities or direct us to sell your securities ●     seek advice about your investments We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?	Federal law gives you the right to limit only: ●     sharing for affiliates’ everyday business purposes – information about your creditworthiness. ●     affiliates from using your information to market to you. ●     sharing for nonaffiliates to market to you. State laws and individual companies may give you additional rights to limit sharing.

Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies. ●     Northern Lights Fund Trust does not share with our affiliates.
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies. ●     Northern Lights Fund Trust does not share with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ●     Northern Lights Fund Trust doesn’t jointly market.

PROXY VOTING POLICY

Information regarding how the Fund voted proxies relating to portfolio securities for the most recent twelve month period ended June 30 as well as a description of the policies and procedures that the Fund uses to determine how to vote proxies is available without charge, upon request, by calling 1-877-464-3111 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

PORTFOLIO HOLDINGS

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (1-800-SEC-0330). The information on Form N-Q is available without charge, upon request, by calling 1-877-464-3111.

INVESTMENT ADVISOR

Montebello Partners, LLC

75 Montebello Road

Suffern, New York 10901

ADMINISTRATOR

Gemini Fund Services, LLC

80 Arkay Drive, Suite 110

Hauppauge, New York 11788

Item 2. Code of Ethics. Not applicable.

Item 3. Audit Committee Financial Expert. Not applicable.

Item 4. Principal Accountant Fees and Services. Not applicable.

Item 5. Audit Committee of Listed Companies. Not applicable to open-end investment companies.

Item 6. Schedule of Investments. Schedule of investments in securities of unaffiliated issuers is included under Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Funds. Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders. None

Item 11. Controls and Procedures.

(a)       Based on an evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the principal executive officer and principal financial officer of the Registrant have concluded that the disclosure controls and procedures of the Registrant are reasonably designed to ensure that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported by the filing date, including that information required to be disclosed is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b)       There were no significant changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable.

(a)(2) Certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 (and Item 11(a)(2) of Form N-CSR) are filed herewith.

(a)(3) Not applicable for open-end investment companies.

(b)       Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 (and Item 11(b) of Form N-CSR) are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Northern Lights Fund Trust

By (Signature and Title)

/s/ Andrew B. Rogers

Andrew B. Rogers, Principal Executive Officer/President

Date 4/3/17

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/ Andrew B. Rogers

Andrew B. Rogers, Principal Executive Officer/President

Date 4/3/17

By (Signature and Title)

/s/ Kevin E. Wolf

Kevin E. Wolf, Principal Financial Officer/Treasurer

Date 4/3/17