GemCom, LLC

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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Changing Parameters Portfolio

__________________________________________________________________________________________________________

Semi-Annual Report

June 30, 2009

__________________________________________________________________________________________________________

Investor Information: 1-866-618-3456

This report and the financial statements contained herein are submitted for the general information of shareholders and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein contained is to be considered an offer of sale or solicitation of an offer to buy shares of Changing Parameters Portfolio. Such offering is made only by prospectus, which includes details as to offering price and other material information.

The Changing Parameters Portfolio (the "Portfolio"), a series of Northern Lights Variable Trust, began trading on October 4, 2007. The strategy of the Portfolio is to enter the market when our proprietary models indicate a suitable uptrend in the equity and/or bond markets. When the models no longer indicate an uptrend, the Portfolio seeks to be defensive and move into money market instruments. This strategy has been instrumental in avoiding the equity market collapse that took place in the latter half of 2008 and the first couple of months of this year.

Our Portfolio invests in equity indexes, US long-term Treasury bond related instruments (“USTI”) and high yield bond related investments (“HY”). Our technical proprietary rule-based models tell us when to be invested in the equity markets, the HY market and/or the USTI market, and when to be invested in money market instruments. Approximately 50% of our market exposure is allocated to USTI investments, approximately 40% to investments related to the NASDAQ 100 Index and Russell 2000 Index and approximately 10% to HY bond related instruments. During unsettled markets like we’ve experienced this past fall, there were times when all funds were moved to money market instruments.

The Portfolio's results for this 6-month period were slightly negative. The Portfolio's opening price for the period was $9.76 a share, and as of the end of June, it was $9.52. During the same period, the NASDAQ 100 Index, the Russell 2000 Index and the Merrill Lynch HY Bond Master II Index all had positive returns for the period, while the Barclay’s Long Treasury Index return was negative.

We believe that in 2009, our models have substantially fulfilled our objective of preserving capital while avoiding significant losses during this period. Our challenge will be to capture more of the gains in rising equity markets, without sacrificing the achievement of our first objective. What market conditions will be in the future are difficult to forecast. Our trading models are designed to react to whatever changes take place in market conditions and to guide us accordingly.

The Russell 2000® Index is an unmanaged index that is a widely recognized indicator of small-capitalization company performance. The NASDAQ 100® Index is an unmanaged modified capitalization-weighted index composed of 100 of the largest non-financial companies listed on the NASDAQ Stock Market (“NASDAQ”). The Lehman Long Treasury Index is an index created by using the longest maturity U.S. Treasury Bond and taking the percent daily total returns. The Merrill Lynch High Yield Bond Master II Index is an unmanaged index that tracks the performance of below investment grade U.S.-denominated corporate bonds publicly issued in the U.S. domestic market.

The data quoted above represents past performance and does not indicate future returns. The value of an investment in the Funds and the return on investment both will fluctuate and redemption proceeds may be higher or lower than an investor’s original cost. Total return is calculated assuming reinvestment of all dividends. Total returns would have been lower had the Adviser, the Distributor, the Administrator, and Custodian not waived or reimbursed a portion of their fees. For more performance numbers current to the most recent month-end please call 1-650-327-7705.

Index returns do not reflect a deduction for fees, expenses, or taxes. Investors cannot invest directly in an index.

Before investing, please read the Portfolio’s prospectus and shareholder reports to learn about its investment strategy and potential risks. Mutual fund investing involves risk including loss of principal. An investor should also consider the Portfolio’s investment objective, risks, charges and expenses carefully before investing. This and other information about the Portfolio is contained in the Portfolio’s prospectus. Please read the prospectus carefully before investing. Distributed by Northern Lights Distributors, LLC, member FINRA/SIPC.


Changing Parameters Portfolio
PORTFOLIO OF INVESTMENTS (Unaudited)
June 30, 2009
Shares		Market Value
	MUTUAL FUNDS - 8.91 %
42,595	Access Flex Bear High Yield Fund - Investor Class	$ 1,133,033
	TOTAL MUTUAL FUNDS	1,133,033
	(Cost $1,190,508)

	SHORT-TERM INVESTMENTS - 80.28 %
	MONEY MARKET FUND - 80.28 %
2,043,926	Dreyfus Government Cash	2,043,926
	Management - Institutional Class, 0.15%+
2,043,926	Fidelity Institutional Government	2,043,926
	Portfolio - Class I, 0.25%+
2,043,926	Goldman Sachs Financial Square Funds	2,043,926
	Government Fund - Institutional Class, 0.20% +
2,043,926	JP Morgan U.S. Government	2,043,926
	Money Market Fund - Capital Class, , 0.25% +
2,036,257	Milestone Treasury Obligation	2,036,258
	Portfolio- Institutional Class, 0.16%+
	TOTAL MONEY MARKET FUNDS	10,211,962
	TOTAL SHORT-TERM INVESTMENTS	10,211,962
	( Cost - $10,211,962)

	TOTAL INVESTMENTS - 89.19%
	(Cost $11,402,470)	11,344,995
	Cash and other assets less liabilities - 10.81%	1,374,280
	NET ASSETS - 100.00%	$12,719,275

+ Reflects yield at June 30, 2009.

Number of Contracts	FUTURES CONTRACTS	Unrealized Appreciation (Depreciation)
43	Nasdaq 100 E-Mini,
	maturing September 2009 (Underlying Face Amount
	at Value $1,269,748)	$ (172)
7	US 5 Year Note (CBT),
	maturing September 2009 (Underlying Face Amount
	at Value $792,531)	21,328
	TOTAL FUTURES CONTRACTS	$ 21,156

The accompanying notes are an integral part of these financial statements.


Changing Parameters Portfolio
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
June 30, 2009


Assets:
	Investments in Securities at Market Value (identified cost $11,402,470)		$ 11,344,995
	Deposit with Broker		1,408,093
	Due From Broker - Variation Margin		5,219
	Interest Receivable		1,942
	Prepaid Expenses and Other Assets		729
	Total Assets		12,760,978

Liabilities:
	Payable for Fund Shares Redeemed		672
	Accrued Advisory Fees		6,047
	Accrued Distribution Fees		4,221
	Accrued Fees Payable to Other Affiliates		16,183
	Other Accrued Expenses		14,580
	Total Liabilities		41,703

Net Assets (Unlimited shares of no par value authorized;
	1,336,418 shares of beneficial interest outstanding)		$ 12,719,275

Net Asset Value, Offering and Redemption Price Per Share
	($12,719,275 / 1,336,418 shares of beneficial interest outstanding)		$ 9.52

Composition of Net Assets:
	At June 30, 2009, Net Assets consisted of:
		Paid-in-Capital	$ 13,088,770
		Undistributed Net Investment Loss	(87,990)
		Accumulated Net Realized Loss on Investments	(245,186)
		Net Unrealized Appreciation (Depreciation) on:
		Investments	(57,475)
		Future Contracts	21,156
Net Assets			$ 12,719,275

The accompanying notes are an integral part of these financial statements.


Changing Parameters Portfolio
STATEMENT OF OPERATIONS (Unaudited)
For the Six Months Ended June 30, 2009


Investment Income:
	Dividend Income	$ 19,712
	Interest Income	18,821
	Total Investment Income	38,533

Expenses:
	Investment Advisory Fees	77,186
	Distribution and/or Service (12b-1) Fees	23,156
	Administration Fees	20,933
	Fund Accounting Fees	10,482
	Legal Fees	9,507
	Transfer Agent Fees and Expenses	6,634
	Trustees' Fees	6,474
	Chief Compliance Officer Fees	5,624
	Audit Fees	5,162
	Printing Expenses	1,955
	Custody Fees	1,814
	Total Expenses	168,927
	Less: Expenses Waived/Reimbursed by Adviser	(52,076)

	Net Expenses	116,851

	Net Investment Loss	(78,318)

Net Realized and Unrealized Loss on Investments:
	Net Realized (Gain) Loss From:
	Investments	(112,954)
	Options Written	21,860
	Futures Contracts	85,393
	Net Change in Unrealized Appreciation (Depreciation) on:
	Investments	(63,021)
	Options Written	5,635
	Futures Contracts	(54,792)
	Net Realized and Unrealized Loss on Investments	(117,879)

Net Decrease in Net Assets Resulting From Operations		$ (196,197)

The accompanying notes are an integral part of these financial statements.


Changing Parameters Portfolio
STATEMENTS OF CHANGES IN NET ASSETS

			For the six months ended June 30, 2009	For the year ended December 31, 2008
			For the six months ended June 30, 2009	For the year ended December 31, 2008
Operations:			(Unaudited)
	Net Investment Loss		$ (78,318)	$ (10,739)
	Net Realized Loss on Investments, Options
		Written and Futures Contracts	(5,701)	(277,349)
	Net Change in Unrealized Appreciation (Depreciation) on
		Investments, Options Written and Futures Contracts	(112,178)	113,723
	Net Decrease in Net Assets
		Resulting From Operations	(196,197)	(174,365)

Distributions to Shareholders From:
	Net Investment Income ($0.00 and $0.04 per share, respectively)		-	(50,349)
	Net Realized Capital Gains ($0.00 and $0.07 per share, respectivley)		-	(79,640)
	Total Distributions to Shareholders		-	(129,989)

Beneficial Interest Transactions:
	Proceeds from Shares Issued (1,418,093 and 1,444,876
		shares, respectively)	13,556,694	14,234,581
	Distributions Reinvested (0 and 13,512 shares, respectively)		-	129,988
	Cost of Shares Redeemed (990,885 and 1,353,195
		shares, respectively)	(9,514,572)	(13,317,266)
	Total Beneficial Interest Transactions		4,042,122	1,047,303

Increase in Net Assets			3,845,925	742,949

Net Assets:
	Beginning of Period		8,873,350	8,130,401
	End of Period		$ 12,719,275	$ 8,873,350

	Undistributed Net Investment Loss at End of Period		$ (87,990)	$ (9,672)

The accompanying notes are an integral part of these financial statements.


Changing Parameters Portfolio
FINANCIAL HIGHLIGHTS


The table below sets forth financial data for one share of capital stock outstanding throughout each period.
		For the six months ended June 30, 2009		For the year ended December 31, 2008	October 2, 2007* through December 31, 2007
		For the six months ended June 30, 2009		For the year ended December 31, 2008	October 2, 2007* through December 31, 2007
		(Unaudited)
Net Asset Value, Beginning of Period		$ 9.76		$ 10.11	$ 10.00
	Increase (Decrease) From Operations:
	Net investment income (loss) (a)	(0.07)		(0.01)	0.05
	Net gain (loss) from securities
	(both realized and unrealized)	(0.17)		(0.23)	0.06
	Total from operations	(0.24)		(0.24)	0.11

	Less Distributions:
	From net investment income	-		(0.04)	-
	From net realized gains on investments	-		(0.07)	-
	Total Distributions	-		(0.11)	-

Net Asset Value, End of Period		$ 9.52		$ 9.76	$ 10.11

Total Return (b)		(2.46)%		(2.38)%	1.10%

Ratios/Supplemental Data
	Net assets, end of period (in 000's)	$ 12,719		$ 8,873	$ 8,130
	Ratio of expenses to average net assets:
	Before expense reimbursement	3.28%	(c)	3.21%	4.88%	(c)
	Net of expense reimbursement	2.25%	(c)	2.25%	2.25%	(c)
	Ratio of net investment income to average net assets:
	Before expense reimbursement	(2.53)%	(c)	(1.06)%	(0.75)%	(c)
	Net of expense reimbursement	(1.50)%	(c)	(0.10)%	1.88%	(c)
	Portfolio turnover rate	920%		1,028%	0%
__________

(a) Per share amounts are calculated using the average shares method, which more appropriately presents
	the per share data for the period.
(b) Total returns are historical in nature and assume changes in share price, reinvestment of dividends and
	capital gains distributions, if any. Total returns for periods less than one year are not annualized.
(c) Annualized.
*Commencement of operations.

The accompanying notes are an integral part of these financial statements.

Changing Parameters Portfolio (the “Portfolio”) is a series of shares of beneficial interest of the Northern Lights Variable Trust (the “Trust”), a Delaware statutory trust organized on November 2, 2005. The Portfolio is registered under the Investment Company Act of 1940, as amended, (the “1940 Act”), as a non-diversified, open-end management investment company. The Portfolio is an investment vehicle for variable annuity contracts and flexible premium variable life insurance policies, qualified pension and retirement plans and certain unregistered separate accounts. The investment objective of the Portfolio is total return. The Portfolio commenced operations on October 2, 2007.

The following is a summary of significant accounting policies followed by the Portfolio in preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Management has evaluated subsequent events through August 27, 2009, the date the financials were issued.

Security Valuation – The Portfolio’s securities are valued at the last sale price on the exchange in which such securities are primarily traded, as of the close of business on the day the securities are being valued. NASDAQ traded securities are valued using the NASDAQ Official Closing Price (“NOCP”). If the NOCP is not available, such securities shall be valued at the last sale price on the day of valuation, or if there has been no sale on such day, at the mean between the bid and asked prices. Exchange traded options, futures and options on futures are valued at the settlement price determined by the exchange. Short-term investments that mature in 60 days or less are valued at amortized cost, provided such valuations represent fair value.

Securities for which current market quotations are not readily available or for which quotations are not deemed to be representative of market value are valued at fair value as determined in good faith by or under the direction of the Trust’s Board of Trustees (the “Board”) in accordance with the Trust’s Portfolio Securities Valuation Procedures (the “Procedures”). The Procedures consider, among others, the following factors to determine a security’s fair value: the nature and pricing history (if any) of the security; whether any dealer quotations for the security are available; and possible valuation methodologies that could be used to determine the fair value of the security.

The Portfolio utilizes 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 Portfolio 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 Portfolio’s own assumptions about the assumptions a market participate 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 table summarizes the inputs used as of June 30, 2009 for the Portfolio’s assets and liabilities measured at fair value:

* Derivative instruments include futures contracts, which are valued at the unrealized appreciation (depreciation) of the instrument.

The Portfolio adopted FASB Statement of Financial Accounting Standards No. 161 “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. All changes to accounting policies and disclosures have been made in accordance with FAS 161 and are incorporated for the current period.

Security Transactions and Investment Income – Investment security transactions are accounted for on a trade date basis. Cost is determined and gains and losses are based upon the specific identification method for both financial statement and federal income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Purchase discounts and premiums on securities are accreted and amortized over the life of the respective securities.

Options – The Portfolio may write call options only if it (i) owns an offsetting position in the underlying security or (ii) maintains cash or other liquid assets in an amount equal to or greater than its obligation under the option. When the Portfolio 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 Portfolio enters into a closing purchase transaction, a gain or loss is realized. If a written call option is exercised, a gain or loss is realized for the sale of the underlying security and the proceeds from the sale are increased by the premium originally received. As writer of an option, the Portfolio has no control over whether the option will be exercised and, as a result, retains the market risk of an unfavorable change in the price of the security underlying the written option.

The Portfolio may purchase put and call options. Put options are purchased to hedge against a decline in the value of securities held in the Portfolio’s portfolio. If such a decline occurs, the put options will permit the Portfolio 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 Portfolio upon exercise of the option, and, unless the price of the underlying security rises or declines sufficiently, the option may expire worthless to the Portfolio. 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 Portfolio, the benefits realized by the Portfolio 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.

Futures Contracts – The Portfolio may use futures contracts to enhance yield and to potentially reduce transaction costs. Upon entering into a futures contract with a broker, the Portfolio is required to deposit in a segregated

account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a “variation margin” account. Daily, the Portfolio receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Portfolio recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures contracts outstanding at period end are listed after the Portfolio’s portfolio of investments.

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

Federal Income Taxes – The Portfolio intends to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute all of its taxable income, if any, to shareholders. Accordingly, no provision for Federal income taxes is required in the financial statements.

The Portfolio recognizes the tax benefits of uncertain tax positions only when the position is “more likely than not” to be sustained assuming examination by tax authorities. Management reviewed the tax positions in the open tax years of 2007 and 2008 and during the six months ended June 30, 2009 and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken in the above open tax years. The Portfolio recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the period, the Portfolio did not incur any interest or penalties. Generally tax authorities can examine tax returns filed for the last three years.

Distributions to Shareholders – Distributions from investment income, if any, are declared and paid at least annually and are recorded on the ex-dividend date. The Portfolio will declare and pay net realized capital gains, if any, annually. The character of income and gains to be distributed is determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States of America.

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 Portfolio enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Portfolio’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolio that have not yet occurred. However, based on experience, the Trust expects the risk of loss due to these warranties and indemnities to be remote.

Estimates – The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 revenue and expenses during the period. Actual results could differ from those estimates.

Advisory Fees – Pursuant to the Investment Advisory Agreement (the “Advisory Agreement”), investment advisory services are provided to the Portfolio by Changing Parameters, L.L.C. (the “Adviser”). Under the terms of the Advisory Agreement, the Adviser receives monthly fees calculated at an annual rate of 1.50% of the average daily net assets of the Portfolio. For the six months ended June 30, 2009, the Adviser earned $77,186 in advisory fees.

The Adviser has contractually agreed, at least until April 30, 2010, to limit the Portfolio’s total operating expenses, other than extraordinary or non-recurring expenses (such as any front-end or contingent deferred loads, taxes,

leverage, interest, brokerage commissions, expenses incurred in connection with any merger or reorganization, dividend expense on securities sold short or expenses of investing in acquired Portfolios or litigation), by reducing all or a portion of its fees and reimbursing the Portfolio, so that its ratio of annual expenses to average net assets will not exceed 2.25%. Fees waived or expenses reimbursed may be recouped by the Adviser for a period up to three years from the date the fee or expense was waived or reimbursed. However, no recoupment payment will be made if it would result in the Portfolio exceeding the contractual expense limitation described above. For the six months ended June 30, 2009, the Adviser waived advisory fees and reimbursed expenses totaling $52,076 to the Portfolio. Cumulative expenses subject to recapture pursuant to the aforementioned conditions amounted to $211,654 at June 30, 2009, and will expire on December 31 of the following years: 2010 - $55,968; 2011 - $103,610; 2012 - $52,076.

The Portfolio has entered into separate servicing agreements with Gemini Fund Services, LLC (“GFS”), whereby GFS will provide administrative, Portfolio accounting, transfer agency and custody administration services to the Portfolio. Agreements are as follows:

Administration – The Portfolio pays GFS a basis point fee in decreasing amounts as Portfolio assets reach certain breakpoints. The Portfolio also pays GFS for any out-of-pocket expenses. Fees are billed monthly and are equal to the greater of the annual minimum or the basis point fees. The annual minimum is $34,000 and the basis point fees are:

Portfolio Accounting – Total charges for Portfolio Accounting services include fees and out-of-pocket expenses. The Portfolio pays GFS a base annual fee of $20,400 plus a basis point fee in decreasing amounts as Portfolio assets reach certain breakpoints, as follows:

Transfer Agent – For the services rendered by GFS, in its capacity as transfer agent, the Portfolio pays GFS transfer agent fees, out-of-pocket expenses, activity charges, and special report charges. The Fees are billed monthly as follows:

The greater of the annual minimum or per account charges. The annual minimum is $12,750 and the per account charge is $14.00 for open accounts and $2.00 for closed accounts.

Custody Administration – Pursuant to the terms of the Portfolio’s Custody Agreement with Bank of New York (the “Custody Agreement”), the Portfolio pays an asset-based custody fee in decreasing amounts as Portfolio assets reach certain breakpoints. The Portfolio also pays certain transaction fees and out-of-pocket expenses pursuant to the Custody Agreement. GFS receives a portion of these fees for performing certain custody administration services. The Custody fees listed in the Statement of Operations include the fees paid to GFS as Custody Administrator. For the six months ended June 30, 2009, GFS collected $1,336 for providing such services.

A Trustee and certain officers of the Portfolio are also officers of GFS, and are not paid any fees directly by the Portfolio for serving in such capacities. In addition, certain affiliates of GFS provide ancillary services to the Portfolio as follows:

Northern Lights Compliance Services, LLC (“NLCS”), an affiliate of GFS, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives from the Portfolio an annual fee, payable quarterly, and is

reimbursed for out-of-pocket expenses. For the six months ended June 30, 2009, the Portfolio incurred expenses of $5,624 for compliance services pursuant to the Trust’s Agreement with NLCS.

GemCom, LLC (“GemCom”), an affiliate of GFS, provides EDGAR conversion and filing services as well as print management services for the Portfolio on an ad-hoc basis. For EDGAR services, GemCom charges a per-page conversion fee and a flat filing fee. For the six months ended June 30, 2009, GemCom received $1,973 for providing such services.

Trustees – The Trust pays each Trustee who is not affiliated with the Trust or Adviser a per meeting fee of $2,500 as well as reimbursement for any reasonable expenses incurred when attending the meetings. The “interested persons” who serve as Trustees of the Trust receive no compensation for their services as Trustees. None of the executive officers receive compensation from the Trust.

The Board has adopted a Distribution Plan and Agreement (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan provides for a monthly service and/or distribution fee at an annual rate of up to 0.50% which is calculated by the Portfolio on its average daily net assets. Currently, the Board has authorized the Portfolio to pay 12b-1 fees at an annual rate of up to 0.45%, which is paid to Jefferson National Life Insurance Company, pursuant to a Distribution and Shareholder Services Agreement, for sales and promotional activities and services.

The cost of security purchases and the proceeds from the sale of securities, other than short-term securities , for the six months ended June 30, 2009 amounted to $10,650,438 and $10,479,664 respectively The cost basis of securities for financial reporting purposes was $11,402,470. Gross unrealized appreciation and depreciation on investments in securities as of June 30, 2009 amounted to $0 and $57,475, respectively.

The number of option contracts written and the premiums received by the Portfolio during the six months ended June 30, 2009, were as follows:

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a Portfolio creates presumption of the control of the Portfolio, under section 2(a) 9 of the Act. As of June 30, 2009, Jefferson National Life Insurance Company held 100% of the voting securities of the Changing Parameters Portfolio. The Trust has no knowledge as to whether all or any portion of the shares owned of record by Jefferson National Life Insurance Company are also owned beneficially.

The tax character of distributions paid to shareholders for the below periods were as follows:

The difference between the book basis and tax basis character of distributions for the year December 31, 2008 is attributable to the treatment of short-term capital gain distributions as ordinary income distributions for tax purposes.

As of December 31, 2008, the components of distributable earnings on a tax basis were as follows:

The difference between book basis and tax basis unrealized appreciation is attributable to the mark-to-market on open Section 1256 contracts.

As of December 31, 2008, the Fund had a capital loss carry forward for federal income tax purposes available to offset future capital gains through December 31, 2016 of $169,172.

Permanent book and tax differences due primarily to net investment losses resulted in reclassification for the year ended December 31, 2008 as follows: a decrease in paid-in capital of $11,651; a decrease in distributions in excess of net investment income of $11,491 and an increase in accumulated net realized losses on investments of $160.

In June 2009, the FASB issued Statement of Financial Accounting Standards No. 168, “The FASB Accounting Standards Codification^TMand the Hierarchy of Generally Accepted Accounting Principles – a replacement of FASB Statement No. 162” (“SFAS 168”). SFAS 168 replaces SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles” and establishes the “FASB Accounting Standards Codification^TM (“Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP. All guidelines contained in the Codification carries an equal level of authority. On the effective date of SFAS 168, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other non-grandfathered non-SEC accounting literature not included in the Codification will become nonauthoritative. SFAS 168 is effective for financial statements issued for interim and annual periods ending after September 15, 2009. Management is currently evaluating the impact the adoption of SFAS 168 will have on the reporting of the Portfolio’s financial statements.

As a shareholder of the Portfolio you incur ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Portfolio operating expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. Please note, the expenses shown in the tables are meant to highlight ongoing costs only and do not reflect any transactional costs.

This example is based on an investment of $1,000 invested for the period of time as indicated in the table below.

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

Hypothetical Examples for Comparison Purposes: The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other Portfolios.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs which may be applicable to your account. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

* Expenses Paid During Period are equal to the Portfolio’s annualized expense ratio of 2.25%, multiplied by the average account value over the period, multiplied by 181 days and divided by 365 (to reflect the number of days in the six month period ending June 30, 2009).

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

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Information regarding how the Portfolio votes proxies relating to portfolio securities for the most recent 12-month period ending June 30 as well as a description of the policies and procedures that the Portfolio used to determine how to vote proxies is available without charge, upon request, by calling 1-866-618-3456 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

The Portfolio 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 1-866-618-3456.

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.

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.

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.

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

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

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.

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.


	Number of Contracts	Premiums Received
Options outstanding, beginning of period	49	$ 27,685
Options written	4,074	323,858
Options closed	(3,856)	(299,707)
Options expired	(267)	(51,836)
Options outstanding, end of period	—	—


	Fiscal Year Ended December 31, 2008	October 2, 2007* through December 31, 2007
Ordinary Income	$ 82,180	$ —
Net Long-Term Capital Gains	47,809	—
Total Distributions to Shareholders	$ 129,989	$ —
*Commencement of Operations.


Capital loss carry forward		$(169,172)
Unrealized appreciation		5,546
Other book/tax differences		(9,672)
Total accumulated earnings		$(173,298)


	Beginning Account Value (1/1/09)	Ending Account Value (6/30/09)	Expenses Paid During the Period* (1/1/09 to 6/30/09)
Actual	$1,000.00	$975.41	$ 11.02
Hypothetical (5% return before expenses)	$1,000.00	$1,013.64	$ 11.23


	% of Net Assets
Mutual Funds	8.91%
Short-Term Investments	80.28%
Money Market Fund	80.28%
Other Assets less Liabilities	10.81%
Total Net Assets	100.00%


Assets	Level 1	Level 2	Level 3	Total
Mutual Funds	1,133,033	-	-	1,133,033
Short-Term Investments	10,211,962	-	-	10,211,962
Derivative Instruments*	21,156			21,156
Total	11,366,151	-	-	11,366,151