Blu Giant, LLC

N-CSRS 1 managedrskncsrs.htm N-CSRS Blu Giant, LLC

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 811-21853

Northern Lights Variable 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: 12/31

Date of reporting period: 06/30/15

Item 1. Reports to Stockholders.

(TOPS LOGO)

Semi-Annual Report

June 30, 2015

TOPS^®Managed Risk Balanced ETF Portfolio

TOPS^®Managed Risk Growth ETF Portfolio

TOPS^®Managed Risk Moderate Growth ETF Portfolio

Each a series of the Northern Lights Variable Trust

Distributed by Northern Lights Distributors, LLC

Member FINRA

A Message from the TOPS^® Portfolio Management Team

Mid-Year 2015 Market Commentary

“Diversification Is Adding Value in 2015”

All TOPS^® portfolios recorded modest positive returns for the first half of 2015, despite global market headwinds in the second quarter. Markets throughout the first half of the year seemed “directionless”, exhibiting frequent changes in direction, while not necessarily registering high levels of overall volatility. Equities performed much better than bonds overall, but the dispersion of returns within the asset classes was broad.

In this Commentary, we will discuss some important factors behind market returns as well as several topics that may impact future TOPS^® strategies, including the following:

Equity diversification away from the Standard & Poor’s (“S&P”) 500 added value in the first half

Shorter maturities were a plus, but international diversification was a negative for bond portfolios

Economic and geopolitical headlines made investors nervous as first quarter 2015 US GDP was negative; the Federal Reserve neared a policy change; Chinese stocks rocketed higher and plunged lower; and Greece approaches an important crossroads

First Half Market Returns and Economic Review

Diversification played a positive role in TOPS^® year-to-date (YTD) returns as US mid-cap, US small-cap, international developed, emerging markets, and timber all outperformed the S&P 500 by significant margins. A pullback in commodity prices and a rise in interest rates led to negative quarterly results for the diversifiers of natural resources and US real estate investment trusts; however, current TOPS^® target allocations to those asset classes are relatively small.

Specifically, for domestic equities, the S&P 500 total return was +1.23%, S&P MidCap 400 +4.20%, and the S&P SmallCap 600 +4.16% in the first half of the year. For International equities, the Morgan Stanley Capital International (“MSCI”) EAFE Index was +5.52 and MSCI Emerging Markets Index was +2.95.

The 10 year US Treasury (10UST) bond yield rose from 2.17% at the end of 2014 to 2.36% as of June 30, so the math of “rising yields equals falling prices” meant 10UST total returns were depressed. The longer the maturity, the greater the increase in yields during the quarter, so the TOPS^® strategy of slightly shortened maturities in the rising interest rate environment added value. The return on the benchmark Barclays Aggregate Bond Index was -0.10%. Exposure to International Developed and Emerging Market fixed income negatively impacted performance.

Throughout the first 6 months, the S&P 500 traded within a plus-or-minus 3.5% band from where it ended in 2014. The two first half “corrections” (i.e., declines following an upswing) were only -5.4% and -3.6% from the new highs reached in 2015. This indicates that stocks reacted calmly to external stimulants. Of note, the bond market was relatively more volatile than stocks, as the 10UST rallied sharply in January (the yield fell to 1.68%) in response to weak economic data and geopolitical concerns. Yields quickly jumped higher as the USD rallied

06/30/2015

and speculation about Fed rate hikes took the 10UST above 2% only to subsequently sit in a 2.2% to 2.4% range for most of May and June.

There has definitely been no shortage of interesting economic and market mental exercises in 2015. While “directionless”, we would argue that the markets globally have been complicated and continue to be so. Despite solid footing, it could be argued that US equities faced an uphill battle coming into the year given heightened valuations.

As 2015 began, continued pressure mounted from reductions in US (and global) GDP forecasts, USD strength and expectation of the first Fed Funds’ interest rate increase in nine years. These factors combined to force many analysts to reduce their expectations for earnings (EPS) growth. Currently, valuations are at or above historic norms in the US and further gains from stocks would require continued growth in EPS. A key factor in EPS growth returning is for economic growth to reaccelerate, which is a strong possibility.

The international landscape is a bit more complex. Largely, international markets have an underlying tide that is flowing in the right direction. However, several headwinds have emerged including weakness in Greece and China.

Chinese stocks have been on a rollercoaster ride, to say the least. The Shanghai Stock Exchange Composite Index, an index of all stocks traded on the Shanghai Stock Exchange wherein investors primarily are Chinese patriots purchasing what are called A-shares, started to ascend in May of 2014 at a value of just above 2000, after trading in a relatively flat trading pattern since the end of 2011. On June 12, 2015, the index stood just below 5170, growing by over 2.5 times in just over 1 year. To start July, the index dipped below 3700, a drop of nearly 30% in just over 2 weeks.

Significant volatility in Chinese A-shares comes amidst a landmark positive development released in May. With the increased availability of Chinese A-shares to certain outside investors, through government-issued quotas, Chinese A-shares have recently been considered by several different major index providers for inclusion. Most recently, the Financial Times Stock Exchange (“FTSE”) announced they will be adding some exposure to Chinese A-shares over the next year, while MSCI announced they expect to add A-shares in the foreseeable future.

Recent Chinese government actions suggest the government is very concerned about the reversal of the China bull market. China GDP growth reports may or may not be accurate, but clearly the rate of growth is slowing. The Chinese banks may or may not be overleveraged, but loan growth has clearly been exponential. China has directly intervened by pumping funds into specific stocks, cutting interest rates and cutting reserve requirements at the banks. If China fails to stabilize the A-share markets and economic growth, the impact on the global economy may be enough to impact US GDP and markets.

Greece has been dominating the financial headlines due to serious economic issues that started to spiral in mid-June. While the recent debt issues of Greece have been front of mind since 2010, it has become clear that an important crossroads has been reached. Greece has defaulted on a payment to the International Monetary Fund, making it the first developed nation to have done so since the founding of the international lender in 1944 (according to Yardeni Research). The bottom line is that we believe there likely is no conceivable scenario in which Greece can actually pay the debts it has accumulated and, for our purposes, there is no reason to try to establish who is at fault. The question is whether the resolution of this issue, whether by default or kicking the can down the road, impacts TOPS^® portfolio strategies.

06/30/2015

While we are concerned for the Greek people, the global impact is not significant from a numbers perspective. The economy of Greece is roughly half the size of Massachusetts. The biggest concern for global markets is contagion to other weaker economies, but contagion typically comes from surprises and confusion. Since the Greek debt situation has been studied for years, it should not be a surprise, and the confusion should only have short term impacts, so we do not expect to make portfolio changes based on Greece.

Our expectation is that day-to-day headline-related volatility is likely to continue in coming months. Nobody knows which of the above-mentioned factors will trend through the remainder of 2015, but the TOPS^® portfolio management team is considering the potential impact of each as we evaluate potential portfolio strategies. As always, the TOPS^® strategy for managing globally diversified ETF portfolios is focused on optimizing risk-adjusted returns and is, in our opinion, well suited for uncertain times. As such, we believe the portfolios are appropriately structured for the current situation.

Summary of the Milliman Managed Risk Strategy™ (MMRS)

The market took only 5 days into 2015 to generate enough volatility to trigger an increase in the hedge position, a decrease in equity exposure, for TOPS Managed Risk Growth. While the hedge position moved up and down with volatility throughout the month, levels finished at a peak of 30%. The TOPS Managed Risk Moderate Growth ETF Portfolio and Managed Risk Balanced ETF Portfolio benefitted from diversification through fixed income, reducing the need for hedges to be significantly active. Oil price volatility and disappointing economic numbers were the primary drivers of volatility over the month. Intraday volatility was particularly high throughout the month.

February started out fairly volatile but then quieted throughout as concerns over Greece dissipated and oil prices stabilized. Realized volatility was very compressed by the end of the month. The hedge positions for TOPS^® Managed Risk Growth started the month out at moderate levels after a volatile January, with a maximum hedge position of 35%, which subsequently reduced to minimum settings by mid-month.

March was a whipsaw month, where equity markets quickly moved upwards and downwards successively and couldn’t find their direction, and volatility was higher than in previous months. Economic indicators have been mixed, which has contributed to a more uncertain outlook with the overhand of European QE. The hedge position for the TOPS^® Managed Risk Growth ETF Portfolio experienced some gyration throughout the month, whereas fixed income mitigated volatility where allocations were higher, which is why the hedge positions in the TOPS^® Managed Risk Moderate Growth and Balanced Portfolios were not as active.

April and May, in contrast, were quiet months on the volatility front, with April marking the lowest month for realized volatility year-to-date. Investors continued to grapple with disparate economic data and its implications for a Fed rate hike.

Realized volatility was likewise quite during the first half of June, only to rise sharply during the last week of the month. Implied volatility also spiked to levels not seen since early February. As a result, the hedge position on the Growth model quickly reverted during this period to finish the month over 10% higher than where is started.

06/30/2015

In summary, after fluctuating significantly in the first quarter, realized volatility on the S&P 500 spent much of the second quarter trending downward. The first quarter volatility forced fairly substantial changes to the hedge positions for the Growth model, but the subsequent downward trend allowed hedge positions to revert to minimum positions for much of the second quarter. Hedge positions in the TOPS^® Managed Risk Moderate Growth and Balanced models remained largely unchanged during the first half of the year, mainly due to the stability produced by higher fixed income allocations relative to the TOPS^®Managed Risk Growth model. Given the spike in volatility the last week of June combined with upcoming corporate earnings, a Federal Reserve meeting and several economic data releases in July, the MMRS strategy stands ready to adjust as volatility changes with news.

The S&P 500^® Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large-cap stocks.

The S&P MidCap 400^® measures the mid-cap segment of the U.S. equity market. The index is designed to be an investable portfolio of companies that meet specific inclusion criteria to ensure that they are liquid and financially viable.

The S&P SmallCap 600^®measures the small cap segment of the U.S. equity market. The index is designed to be an investable portfolio of companies that meet specific inclusion criteria to ensure that they are liquid and financially viable.

The MSCI EAFE^®Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

The MSCI Emerging Markets Index is a free float-adjusted, market capitalization-weighted index designed to measure the combined equity market performance of the materials sector of emerging markets countries. Component securities include those of chemical companies, construction materials companies, containers and packaging companies, metals and mining companies, and paper and forest products companies.

The Barclays Capital Aggregate Bond Index is weighted according to market capitalization, which means the securities represented in the index are weighted according to the market size of the bond category. Treasury securities, mortgage-backed securities (MBS) foreign bonds , government agency bonds and corporate bonds are some of the categories included in the index. The bonds represented are medium term with an average maturity of about 4.57 years. In all, the index represents about 8,200 fixed-income securities with a total value of approximately $15 trillion (about 43% of the total U.S. bond market).

The Barclays Capital High Yield Very Liquid Index includes publicly issued U.S. dollar denominated, non -investment grade, fixed-rate, taxable corporate bonds that have a remaining maturity of at least one year, regardless of optionality, are rated high-yield (Ba1/BB+/BB+ or below) using the middle rating of Moody’s, S&P, and Fitch, respectively (before July 1, 2005, the lower of Moody’s and S&P was used), and have $600 million or more of outstanding face value.

The Barclays Capital U.S. Credit Bond Index measures the performance of investment grade corporate debt and agency bonds that are dollar denominated and have a remaining maturity of greater than one year.

The Barclays Capital Intermediate U.S. Treasury Index includes all publicly issued, U.S. Treasury securities that have a remaining maturity of greater than or equal to 1 year and less than 10 years, are rated investment grade, and have $250 million or more of outstanding face value.

06/30/2015

The Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index includes all publicly issued, U.S. Treasury inflation-protected securities that have at least one year remaining to maturity, are rated investment grade, and have $250 million or more of outstanding face value.

You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. Past Performance is no guarantee of future results.

6307-NLD-7/30/2015

06/30/2015

TOPS^®Managed Risk Balanced ETF Portfolio

Portfolio Review (Unaudited)

June 30, 2015

The Portfolio’s performance figures^* for the periods ended June 30, 2015, as compared to its benchmark:

			Three
	Six	One	Year	Annualized Since	Annualized Since
	Months	Year	(Annualized)	Inception (6/9/11)**	Inception (5/1/12)***
Managed Risk Balanced ETF Portfolio
Class 1	1.11%	0.06%	6.11%	4.92%	N/A
Class 2	0.95%	(0.23)%	5.85%	4.67%	N/A
Class 3	0.94%	(0.26)%	5.99%	N/A	4.89%
Class 4	0.78%	(0.61)%	5.35%	N/A	4.26%
S&P 500 Total Return Index ****	1.23%	7.42%	17.31%	14.72%	15.34%

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 Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. Per the fee table in the May 1, 2015 prospectus, the Portfolio’s total annual operating expense ratios including acquired fund fees and expenses, for Class 1, Class 2, Class 3, and Class 4 are 0.63%, 0.88%, 0.98%, and 1.23% respectively. For performance information current to the most recent month-end, please call 1-855-572-5945.

Class 1 and Class 2’s inception date was June 9, 2011.

***

Class 3 and Class 4’s inception date was May 1, 2012.

^****

The S&P 500 Total Return Index is an unmanaged market capitalization-weighted index of 500 of the largest capitalized U.S. domiciled companies. Index returns assume reinvestment of dividends. Investors may not invest in the index directly; unlike the Portfolio’s returns, the Index does not reflect any fees or expenses.

Holdings by Asset Class as of June 30, 2015	% of Net Assets
Equity Funds		45.0	%
Debt Funds		43.2	%
Other Assets/Cash & Cash Equivalents		11.8	%
		100.0	%

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

TOPS^®Managed Risk Growth ETF Portfolio

Portfolio Review (Unaudited)

June 30, 2015

The Portfolio’s performance figures^* for the periods ended June 30, 2015, as compared to its benchmark:

			Three
	Six	One	Year	Annualized Since	Annualized Since
	Months	Year	(Annualized)	Inception (4/26/11)**	Inception (5/1/12)***
Managed Risk Growth ETF Portfolio
Class 1	0.51%	(2.15)%	8.12%	4.74%	N/A
Class 2	0.34%	(2.43)%	7.85%	4.50%	N/A
Class 3	0.34%	(2.39)%	7.87%	N/A	6.09%
Class 4	0.25%	(2.66)%	7.79%	N/A	6.16%
S&P 500 Total Return Index ****	1.23%	7.42%	17.31%	13.15%	15.34%

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 Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. Per the fee table in the May 1, 2015 prospectus, the Portfolio’s total annual operating expense ratios including acquired fund fees and expenses, for Class 1 , Class 2, Class 3, and Class 4 are 0.62%, 0.87%, 0.97%, and 1.22% respectively. For performance information current to the most recent month-end, please call 1-855-572-5945.

Class 1 and Class 2’s inception date was April 26, 2011.

***

Class 3 and Class 4’s inception date was May 1, 2012.

^****

Holdings by Asset Class as of June 30, 2015	% of Net Assets
Equity Funds		76.5	%
Debt Funds		11.7	%
Other Assets/Cash & Cash Equivalents		11.8	%
		100.0	%

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

TOPS^®Managed Risk Moderate Growth ETF Portfolio

Portfolio Review (Unaudited)

June 30, 2015

The Portfolio’s performance figures^* for the periods ended June 30, 2015, as compared to its benchmark:

			Three
	Six	One	Year	Annualized Since	Annualized Since
	Months	Year	(Annualized)	Inception (6/9/11)**	Inception (5/1/12)***
Managed Risk Moderate Growth ETF Portfolio
Class 1	1.41%	(0.23)%	7.83%	5.86%	N/A
Class 2	1.25%	(0.50)%	7.53%	5.65%	N/A
Class 3	1.25%	(0.55)%	7.60%	N/A	6.01%
Class 4	1.09%	(0.88)%	7.12%	N/A	5.82%
S&P 500 Total Return Index ****	1.23%	7.42%	17.31%	14.72%	15.34%

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 Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. Per the fee table in the May 1, 2015 prospectus, the Portfolio’s total annual operating expense ratios including acquired fund fees and expenses, for Class 1 , Class 2, Class 3, and Class 4 are 0.63%, 0.88%, 0.98%, and 1.23% respectively. For performance information current to the most recent month-end, please call 1-855-572-5945.

Class 1 and Class 2’s inception date was June 9, 2011.

***

Class 3 and Class 4’s inception date was May 1, 2012.

^****

Holdings by Asset Class as of June 30, 2015	% of Net Assets
Equity Funds		58.5	%
Debt Funds		29.8	%
Other Assets/Cash & Cash Equivalents		11.7	%
		100.0	%

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

TOPS^®Managed Risk Balanced ETF Portfolio

PORTFOLIO OF INVESTMENTS

June 30, 2015 (Unaudited)

Shares					Value

		EXCHANGE TRADED FUNDS - 88.2%
		DEBT FUNDS - 43.2%
	2,248,498	FlexShares iBoxx 3-Year Target Duration TIPS Index Fund			$	55,223,111
	349,625	iShares 3-7 Year Treasury Bond ETF				42,989,890
	242,660	iShares Floating Rate Bond ETF				12,288,303
	346,419	iShares iBoxx $ High Yield Corporate Bond ETF				30,762,007
	371,458	iShares iBoxx $ Investment Grade Corporate Bond ETF				42,985,120
	941,647	PIMCO 1-5 Year U.S. TIPS Index ETF				49,172,806
	516,252	PowerShares Senior Loan Portfolio				12,281,635
	803,847	SPDR Barclays Short Term Corporate Bond ETF				24,597,718
	234,884	Vanguard Total International Bond ETF				12,300,875
	315,937	WisdomTree Emerging Markets Local Debt Fund				12,280,471
						294,881,936
		EQUITY FUNDS - 45.0%
	206,361	FlexShares Global Upstream Natural Resources Index Fund				6,141,304
	240,042	Guggenheim Timber ETF				6,140,274
	163,945	iShares Core S&P Mid-Cap ETF				24,588,471
	208,339	iShares Core S&P Small-Cap ETF				24,559,001
	377,590	iShares S&P 500 Growth ETF				42,992,398
	732,149	iShares S&P 500 Value ETF				67,511,459
	440,071	SPDR Dow Jones International Real Estate ETF				18,421,372
	218,289	SPDR Dow Jones REIT ETF				18,419,226
	57,608	Vanguard Energy ETF				6,161,176
	1,010,426	Vanguard FTSE All-World ex-US ETF				49,056,182
	120,458	Vanguard FTSE All-World ex-US Small-Cap ETF				12,277,079
	500,806	Vanguard FTSE Emerging Markets ETF				20,472,949
	57,076	Vanguard Materials ETF				6,133,387
	94,108	WisdomTree Emerging Markets SmallCap Dividend Fund				4,083,346
						306,957,624
		TOTAL EXCHANGE TRADED FUNDS (Cost - $576,333,544)				601,839,560

		SHORT-TERM INVESTMENTS - 12.0%
		MONEY MARKET FUNDS - 11.8%
	28,750,000	BlackRock Liquidity Funds TempFund Portfolio to yield 0.09% (a)				28,750,000
	28,750,000	Federated Prime Cash Obligations Fund to yield 0.07% (a)				28,750,000
	22,686,782	Invesco Short-Term Investments Trust - Liquid Assets Portfolio to yield 0.10% (a)				22,686,782
						80,186,782

Principal			Coupon (b)	Maturity
		U.S. TREASURY BILL - 0.2%
$	1,400,000	United States Treasury Bill (c)	0.00%	9/17/2015		1,400,000

		TOTAL SHORT-TERM INVESTMENTS (Cost - $81,586,782)				81,586,782

		TOTAL INVESTMENTS - 100.2% (Cost - $657,920,326) (d)			$	683,426,342
		OTHER ASSETS AND LIABILITIES - NET - (0.2)%				(1,157,674	)
		TOTAL NET ASSETS - 100.0%			$	682,268,668

TIPS - Treasury Inflation Protected Security

ETF - Exchange Traded Fund

REIT - Real Estate Investment Trust

(a)

Variable rate security, the money market rate shown represents the rate at June 30, 2015.

(b)

Represents discount rate at time of purchase.

(c)

All or a portion of this security held as collateral for futures contracts.

(d)

Represents cost for financial reporting purposes. Aggregate cost for Federal tax purposes is $658,553,552 and differs from value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized appreciation:	$	34,356,958
Unrealized depreciation:		(9,484,168	)
Net unrealized appreciation:	$	24,872,790

See accompanying notes to financial statements.

TOPS^®Managed Risk Balanced ETF Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

June 30, 2015 (Unaudited)

			Unrealized
Contracts			Depreciation

		LONG FUTURES CONTRACTS
	75	MSCI EAFE Index Mini September 2015
		(Underlying Face Amount at Value $6,877,500)	$	(136,935	)
	103	MSCI Emerging Market Index Mini September 2015
		(Underlying Face Amount at Value $4,940,910)		(44,290	)
	55	Russell 2000 Index Mini September 2015
		(Underlying Face Amount at Value $6,877,200)		(25,575	)
	83	S&P 500 Index E-Mini September 2015
		(Underlying Face Amount at Value $8,526,175)		(125,330	)
	26	S&P Midcap 400 Index E-Mini September 2015
		(Underlying Face Amount at Value $3,895,060)		(72,800	)

		NET UNREALIZED DEPRECIATION OF LONG FUTURES CONTRACTS	$	(404,930	)

See accompanying notes to financial statements.

TOPS^®Managed Risk Growth ETF Portfolio

PORTFOLIO OF INVESTMENTS

June 30, 2015 (Unaudited)

Shares					Value

		EXCHANGE TRADED FUNDS - 88.2%
		DEBT FUNDS - 11.7%
	1,373,184	FlexShares iBoxx 3-Year Target Duration TIPS Index Fund			$	33,725,399
	507,691	iShares iBoxx $ High Yield Corporate Bond ETF				45,082,961
	646,498	PIMCO 1-5 Year U.S. TIPS Index ETF				33,760,126
	868,258	WisdomTree Emerging Markets Local Debt Fund (a)				33,749,188
						146,317,674
		EQUITY FUNDS - 76.5%
	1,513,642	FlexShares Global Upstream Natural Resources Index Fund				45,045,986
	440,012	Guggenheim Timber ETF (a)				11,255,507
	825,185	iShares Core S&P Mid-Cap ETF				123,761,246
	1,143,758	iShares Core S&P Small-Cap ETF				134,826,193
	1,283,524	iShares S&P 500 Growth ETF				146,142,043
	1,461,930	iShares S&P 500 Value ETF				134,804,565
	805,704	SPDR Dow Jones International Real Estate ETF				33,726,769
	265,962	SPDR Dow Jones REIT ETF				22,441,874
	105,512	Vanguard Energy ETF				11,284,508
	3,928,226	Vanguard FTSE All-World ex-US ETF				190,715,372
	220,653	Vanguard FTSE All-World ex-US Small-Cap ETF				22,488,954
	1,375,644	Vanguard FTSE Emerging Markets ETF				56,236,327
	104,556	Vanguard Materials ETF				11,235,588
	258,639	WisdomTree Emerging Markets SmallCap Dividend Fund				11,222,346
						955,187,278
		TOTAL EXCHANGE TRADED FUNDS (Cost - $988,912,259)				1,101,504,952

		SHORT-TERM INVESTMENTS - 11.8%
		MONEY MARKET FUNDS - 11.3%
	40,000,000	BlackRock Liquidity Funds TempFund Portfolio to yield 0.09% (b)				40,000,000
	40,000,000	Federated Prime Cash Obligations Fund to yield 0.07% (b)				40,000,000
	61,698,648	Invesco Short-Term Investments Trust - Liquid Assets Portfolio to yield 0.10% (b)				61,698,649
						141,698,649

Principal			Coupon (d)	Maturity
		U.S. TREASURY BILL - 0.5%
$	5,770,000	United States Treasury Bill (c)	0.00%	9/17/2015		5,770,000

		TOTAL SHORT-TERM INVESTMENTS (Cost - $147,468,649)				147,468,649

		TOTAL INVESTMENTS - 100.0% (Cost - $1,136,380,908) (e)			$	1,248,973,601
		OTHER ASSETS AND LIABILITIES - NET - (0.0)%				(552,365	)
		TOTAL NET ASSETS - 100.0%			$	1,248,421,236

TIPS - Treasury Inflation Protected Security

ETF - Exchange Traded Fund

REIT - Real Estate Investment Trust

(a)

Affiliated company - TOPS Managed Risk Growth ETF holds in excess of 5% of outstanding voting securities of this exchange traded fund.

(b)

Variable rate security, the money market rate shown represents the rate at June 30, 2015.

(c)

All or a portion of this secuirty may be held as collateral for futures contracs.

(d)

Represents discount rate at time of purchase.

(e)

Represents cost for financial reporting purposes. Aggregate cost for Federal tax purposes is $1,137,189,283 and differs from value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized appreciation:	$	128,669,687
Unrealized depreciation:		(16,885,369	)
Net unrealized appreciation:	$	111,784,318

See accompanying notes to financial statements.

TOPS^®Managed Risk Growth ETF Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

June 30, 2015 (Unaudited)

			Unrealized
Contracts			Appreciation/(Depreciation)

		SHORT FUTURES CONTRACTS
	107	MSCI EAFE Index Mini September 2015
		(Underlying Face Amount at Value $9,811,900)	$	21,490
	156	MSCI Emerging Market Index Mini September 2015
		(Underlying Face Amount at Value $7,483,320)		(9,210	)
	92	Russell 2000 Index Mini September 2015
		(Underlying Face Amount at Value $11,503,680)		(22,300	)
	89	S&P 500 Index E-Mini September 2015
		(Underlying Face Amount at Value $9,142,525)		—
	41	S&P Midcap 400 Index E-Mini September 2015
		(Underlying Face Amount at Value $6,142,210)		9,400

		NET UNREALIZED DEPRECIATION OF SHORT FUTURES CONTRACTS	$	(620	)

See accompanying notes to financial statements.

TOPS^®Managed Risk Moderate Growth ETF Portfolio

PORTFOLIO OF INVESTMENTS

June 30, 2015 (Unaudited)

Shares					Value

		EXCHANGE TRADED FUNDS - 88.3%
		DEBT FUNDS - 29.8%
	2,546,404	FlexShares iBoxx 3-Year Target Duration TIPS Index Fund			$	62,539,682
	588,408	iShares iBoxx $ High Yield Corporate Bond ETF				52,250,630
	630,901	iShares iBoxx $ Investment Grade Corporate Bond ETF				73,007,864
	999,756	PIMCO 1-5 Year U.S. TIPS Index ETF				52,207,258
	877,161	PowerShares Senior Loan Portfolio				20,867,660
	1,706,905	SPDR Barclays Short Term Corporate Bond ETF				52,231,293
	199,504	Vanguard Total International Bond ETF				10,448,025
	536,693	WisdomTree Emerging Markets Local Debt Fund				20,861,257
						344,413,669
		EQUITY FUNDS - 58.5%
	1,051,663	FlexShares Global Upstream Natural Resources Index Fund				31,297,491
	407,769	Guggenheim Timber ETF (a)				10,430,731
	557,045	iShares Core S&P Mid-Cap ETF				83,545,609
	707,827	iShares Core S&P Small-Cap ETF				83,438,647
	916,484	iShares S&P 500 Growth ETF				104,350,868
	1,130,784	iShares S&P 500 Value ETF				104,269,593
	747,565	SPDR Dow Jones International Real Estate ETF				31,293,071
	247,093	SPDR Dow Jones REIT ETF				20,849,707
	97,871	Vanguard Energy ETF				10,467,303
	2,572,558	Vanguard FTSE All-World ex-US ETF				124,897,691
	204,627	Vanguard FTSE All-World ex-US Small-Cap ETF				20,855,584
	850,634	Vanguard FTSE Emerging Markets ETF				34,773,918
	96,934	Vanguard Materials ETF				10,416,528
	159,865	WisdomTree Emerging Markets SmallCap Dividend Fund				6,936,542
						677,823,283
		TOTAL EXCHANGE TRADED FUNDS (Cost - $959,401,993)				1,022,236,952

		SHORT-TERM INVESTMENTS - 11.9%
		MONEY MARKET FUNDS - 11.6%
	35,000,000	BlackRock Liquidity Funds TempFund Portfolio to yield 0.09% (b)				35,000,000
	35,000,000	Federated Prime Cash Obligations Fund to yield 0.07% (b)				35,000,000
	64,164,424	Invesco Short-Term Investments Trust - Liquid Assets Portfolio to yield 0.10% (b)				64,164,424
						134,164,424

Principal			Coupon (d)	Maturity
		U.S. TREASURY BILL - 0.3%
$	3,340,000	United States Treasury Bill (c)	0.00%	9/17/2015		3,340,000

		TOTAL SHORT-TERM INVESTMENTS (Cost - $137,504,424)				137,504,424

		TOTAL INVESTMENTS - 100.2% (Cost - $1,096,906,417) (e)			$	1,159,741,376
		OTHER ASSETS AND LIABILITIES - NET - (0.2)%				(1,787,764	)
		TOTAL NET ASSETS - 100.0%			$	1,157,953,612

TIPS - Treasury Inflation Protected Security

ETF - Exchange Traded Fund

REIT - Real Estate Investment Trust

(a)

Affiliated company - TOPS Managed Risk Moderate Growth ETF holds in excess of 5% of outstanding voting securities of this exchange traded fund.

(b)

Variable rate security, the money market rate shown represents the rate at June 30, 2015.

(c)

All or a portion of this secuirty held as collateral for futures contracts.

(d)

Represents discount rate at time of purchase.

(e)

Represents cost for financial reporting purposes. Aggregate cost for Federal tax purposes is $1,097,823,496 and differs from value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized appreciation:	$	78,406,582
Unrealized depreciation:		(16,488,702	)
Net unrealized appreciation:	$	61,917,880

See accompanying notes to financial statements.

TOPS^®Managed Risk Moderate Growth ETF Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

June 30, 2015 (Unaudited)

			Unrealized
Contracts			Depreciation

		LONG FUTURES CONTRACTS
	177	MSCI EAFE Index Mini September 2015
		(Underlying Face Amount at Value $16,230,900)	$	(324,795	)
	246	MSCI Emerging Market Index Mini September 2015
		(Underlying Face Amount at Value $11,800,620)		(105,780	)
	133	Russell 2000 Index Mini September 2015
		(Underlying Face Amount at Value $16,630,320)		(61,845	)
	173	S&P 500 Index E-Mini September 2015
		(Underlying Face Amount at Value $17,771,425)		(260,798	)
	76	S&P Midcap 400 Index E-Mini September 2015
		(Underlying Face Amount at Value $11,385,560)		(212,040	)

		NET UNREALIZED DEPRECIATION OF LONG FUTURES CONTRACTS	$	(965,258	)

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Statements of Assets and Liabilities

June 30, 2015 (Unaudited)

	Managed Risk		Managed Risk		Managed Risk
	Balanced		Growth		Moderate Growth
	ETF Portfolio		ETF Portfolio		ETF Portfolio
Assets:
Affiliated Investments in securities, at cost	$	—	$	51,561,621	$	9,981,039
Unaffiliated Investments in securities, at cost		657,920,326		1,084,819,287		1,086,925,378
Total Investments in securities, at cost		657,920,326		1,136,380,908		1,096,906,417

Affiliated Investments in securities, at value	$	—	$	45,004,695	$	10,430,731
Unaffiliated Investments in securities, at value		683,426,342		1,203,968,906		1,149,310,645
Total Investments in securities, at value		683,426,342		1,248,973,601		1,159,741,376
Deposits with Broker		506,135		362,055		1,205,773
Receivable for securities sold		3,114,581		6,258,155		5,573,675
Dividends receivable		1,028,342		3,206,799		2,220,330
Receivable for Portfolio shares sold		503,192		263,459		244,144
Total Assets		688,578,592		1,259,064,069		1,168,985,298
Liabilities:
Unrealized depreciation on futures contracts		404,930		620		965,258
Payable for securities purchased		5,181,414		9,345,496		8,461,197
Payable for Portfolio shares redeemed		322,254		559,277		922,212
Accrued investment advisory fees		181,057		335,035		308,782
Accrued distribution (12b-1) fees		159,918		290,727		271,311
Administrative services fee payable		60,351		111,678		102,926
Total Liabilities		6,309,924		10,642,833		11,031,686
Net Assets	$	682,268,668	$	1,248,421,236	$	1,157,953,612
Components of Net Assets:
Paid in capital	$	623,629,452	$	1,102,624,811	$	1,039,267,731
Undistributed net investment income		11,243,291		23,484,217		20,691,462
Accumulated net realized gain on investments and futures contracts		22,294,838		9,720,135		36,124,718
Net unrealized appreciation on investments and futures contracts		25,101,087		112,592,073		61,869,701
Net Assets	$	682,268,668	$	1,248,421,236	$	1,157,953,612

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Statements of Assets and Liabilities (Continued)

June 30, 2015 (Unaudited)

	Managed Risk		Managed Risk		Managed Risk
	Balanced		Growth		Moderate Growth
	ETF Portfolio		ETF Portfolio		ETF Portfolio

Class 1 Shares:
Net assets	$	1,581,419	$	39,252,433	$	3,259,467
Total shares of beneficial interest outstanding at end of year ($0 par value, unlimited shares authorized)		133,877		3,302,819		267,428

Net asset value, offering and redemption price per share
(Net assets ÷ Total shares of beneficial interest outstanding)	$	11.81	$	11.88	$	12.19

Class 2 Shares:
Net assets	$	607,164,421	$	1,008,917,461	$	1,012,299,306
Total shares of beneficial interest outstanding at end of year ($0 par value, unlimited shares authorized)		51,751,515		85,480,122		83,488,599

Net asset value, offering and redemption price per share
(Net assets ÷ Total shares of beneficial interest outstanding)	$	11.73	$	11.80	$	12.12	(a)

Class 3 Shares:
Net assets	$	59,986,992	$	188,839,675	$	131,799,153
Total shares of beneficial interest outstanding at end of year ($0 par value, unlimited shares authorized)		5,084,157		16,063,427		10,885,613

Net asset value, offering and redemption price per share
(Net assets ÷ Total shares of beneficial interest outstanding)	$	11.80	$	11.76	$	12.11

Class 4 Shares:
Net assets	$	13,535,836	$	11,411,667	$	10,595,686
Total shares of beneficial interest outstanding at end of year ($0 par value, unlimited shares authorized)		1,168,501		967,165		879,824

Net asset value, offering and redemption price per share
(Net assets ÷ Total shares of beneficial interest outstanding)	$	11.58	$	11.80	$	12.04

(a)

NAV may not recalculate due to rounding of shares.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Statements of Operations

For the Six Months Ended June 30, 2015 (Unaudited)

	Managed Risk			Managed Risk			Managed Risk
	Balanced			Growth			Moderate Growth
	ETF Portfolio			ETF Portfolio			ETF Portfolio
Investment Income:
Dividend income - Affiliated investments	$	—		$	848,539		$	—
Dividend income - Unaffiliated investments		5,202,518			9,741,245			9,457,232
Interest income		18,530			26,726			24,105
Total Investment Income		5,221,048			10,616,510			9,481,337
Expenses:
Investment advisory fees		1,017,557			1,905,609			1,715,939
Distribution fees (12b-1) - Class 2 Shares		754,450			1,282,529			1,250,256
Distribution fees (12b-1) - Class 3 Shares		102,053			342,072			225,461
Distribution fees (12b-1) - Class 4 Shares		38,474			29,042			31,241
Administrative services fees		339,185			635,203			571,980
Total Expenses		2,251,719			4,194,455			3,794,877
Net Investment Income		2,969,329			6,422,055			5,686,460
Net Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:
Net realized gain (loss) on:
Affiliated Investments		—			(600,751	)		94,748
Unaffiliated Investments		5,725,173			23,814,471			10,912,125
Futures contracts		2,689,651			(18,284,511	)		3,296,679
		8,414,824			4,929,209			14,303,552
Net change in unrealized appreciation (depreciation) on:
Affiliated Investments		—			(1,069,381	)		456,874
Unaffiliated Investments		(3,386,828	)		(5,285,574	)		(3,575,596	)
Futures contracts		(1,646,733	)		358,275			(2,665,058	)
		(5,033,561	)		(5,996,680	)		(5,783,780	)
Net Realized and Unrealized Gain (Loss) on Investments and Futures Contracts		3,381,263			(1,067,471	)		8,519,772
Net Increase in Net Assets Resulting from Operations	$	6,350,592		$	5,354,584		$	14,206,232

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Statements of Changes in Net Assets

	Managed Risk Balanced ETF Portfolio
	Six Months Ended
	June 30, 2015			Year Ended
	(Unaudited)			December 31, 2014
Increase (Decrease) in Net Assets:
From Operations:
Net investment income	$	2,969,329		$	8,274,054
Net realized gain on investments and futures contracts		8,414,824			15,268,825
Distributions of realized gains by underlying investment companies		—			5,643
Net change in unrealized appreciation (depreciation) on investments and futures contracts		(5,033,561	)		(5,015,336	)
Net increase in net assets resulting from operations		6,350,592			18,533,186
From Distributions to Shareholders:
Net Investment Income:
Class 1		—			(65,911	)
Class 2		—			(5,433,435	)
Class 3		—			(645,712	)
Class 4		—			(93,702	)
Net Realized Gains:
Class 1		—			(44,006	)
Class 2		—			(4,384,186	)
Class 3		—			(457,552	)
Class 4		—			(71,892	)
Total distributions to shareholders		—			(11,196,396	)
From Shares of Beneficial Interest:
Proceeds from shares sold
Class 1		119,999			953,341
Class 2		52,116,656			146,292,155
Class 3		5,608,605			28,027,807
Class 4		2,347,552			6,589,238
Reinvestment of distributions
Class 1		—			109,917
Class 2		—			9,817,621
Class 3		—			1,103,264
Class 4		—			165,594
Cost of shares redeemed
Class 1		(3,868,085	)		(2,514,637	)
Class 2		(43,585,317	)		(99,487,147	)
Class 3		(4,815,468	)		(11,849,826	)
Class 4		(206,733	)		(779,937	)
Net increase in net assets from share transactions of beneficial interest		7,717,209			78,427,390
Total increase in net assets		14,067,801			85,764,180
Net Assets:
Beginning of period		668,200,867			582,436,687
End of period	$	682,268,668		$	668,200,867
Undistributed net investment income at end of period	$	11,243,291		$	8,273,962

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Statements of Changes in Net Assets (Continued)

	Managed Risk Balanced ETF Portfolio
	Six Months Ended
	June 30, 2015			Year Ended
	(Unaudited)			December 31, 2014
SHARE ACTIVITY
Class 1
Shares Sold		10,093			81,054
Shares Reinvested		—			9,492
Shares Redeemed		(325,582	)		(216,762	)
Net decrease in shares of beneficial interest outstanding		(315,489	)		(126,216	)

Class 2
Shares Sold		4,403,144			12,553,926
Shares Reinvested		—			851,484
Shares Redeemed		(3,683,487	)		(8,568,294	)
Net increase in shares of beneficial interest outstanding		719,657			4,837,116

Class 3
Shares Sold		470,756			2,391,802
Shares Reinvested		—			95,110
Shares Redeemed		(403,703	)		(997,373	)
Net increase in shares of beneficial interest outstanding		67,053			1,489,539

Class 4
Shares Sold		201,278			570,474
Shares Reinvested		—			14,512
Shares Redeemed		(17,658	)		(67,894	)
Net increase in shares of beneficial interest outstanding		183,620			517,092

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Statements of Changes in Net Assets (Continued)

	Managed Risk Growth ETF Portfolio
	Six Months Ended
	June 30, 2015			Year Ended
	(Unaudited)			December 31, 2014
Increase (Decrease) in Net Assets:
From Operations:
Net investment income	$	6,422,055		$	17,069,338
Net realized gain on investments and futures contracts		4,929,209			12,234,047
Distributions of realized gains by underlying investment companies		—			—
Net change in unrealized appreciation (depreciation) on investments and futures contracts		(5,996,680	)		(13,306,982	)
Net increase in net assets resulting from operations		5,354,584			15,996,403
From Distributions to Shareholders:
Net Investment Income:
Class 1		—			(401,424	)
Class 2		—			(8,679,737	)
Class 3		—			(2,159,398	)
Class 4		—			(64,365	)
Total distributions to shareholders		—			(11,304,924	)
From Shares of Beneficial Interest:
Proceeds from shares sold
Class 1		1,222,855			5,583,716
Class 2		81,811,890			217,753,024
Class 3		6,935,296			93,581,678
Class 4		4,367,243			4,336,086
Reinvestment of distributions
Class 1		—			401,424
Class 2		—			8,679,737
Class 3		—			2,159,398
Class 4		—			64,365
Cost of shares redeemed
Class 1		(1,241,490	)		(3,173,820	)
Class 2		(106,610,771	)		(88,945,750	)
Class 3		(25,874,201	)		(23,039,427	)
Class 4		(435,196	)		(1,525,887	)
Net increase (decrease) in net assets from share transactions of beneficial interest		(39,824,374	)		215,874,544
Total increase (decrease) in net assets		(34,469,790	)		220,566,023
Net Assets:
Beginning of period		1,282,891,026			1,062,325,003
End of period	$	1,248,421,236		$	1,282,891,026
Undistributed net investment income at end of period	$	23,484,217		$	17,062,162

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Statements of Changes in Net Assets (Continued)

	Managed Risk Growth ETF Portfolio
	Six Months Ended
	June 30, 2015			Year Ended
	(Unaudited)			December 31, 2014
SHARE ACTIVITY
Class 1
Shares Sold		103,567			475,429
Shares Reinvested		—			34,048
Shares Redeemed		(104,080	)		(264,636	)
Net increase (decrease) in shares of beneficial interest outstanding		(513	)		244,841

Class 2
Shares Sold		6,855,635			18,516,770
Shares Reinvested		—			739,960
Shares Redeemed		(8,931,953	)		(7,538,904	)
Net increase (decrease) in shares of beneficial interest outstanding		(2,076,318	)		11,717,826

Class 3
Shares Sold		581,501			8,020,018
Shares Reinvested		—			184,721
Shares Redeemed		(2,175,874	)		(1,935,234	)
Net increase (decrease) in shares of beneficial interest outstanding		(1,594,373	)		6,269,505

Class 4
Shares Sold		365,562			365,431
Shares Reinvested		—			5,473
Shares Redeemed		(36,247	)		(131,429	)
Net increase in shares of beneficial interest outstanding		329,315			239,475

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Statements of Changes in Net Assets (Continued)

	Managed Risk Moderate Growth ETF Portfolio
	Six Months Ended
	June 30, 2015			Year Ended
	(Unaudited)			December 31, 2014
Increase (Decrease) in Net Assets:
From Operations:
Net investment income	$	5,686,460		$	15,007,036
Net realized gain on investments and futures contracts		14,303,552			24,748,740
Distributions of realized gains by underlying investment companies		—			11,821
Net change in unrealized appreciation (depreciation) on investments and futures contracts		(5,783,780	)		(11,579,631	)
Net increase in net assets resulting from operations		14,206,232			28,187,966
From Distributions to Shareholders:
Net Investment Income:
Class 1		—			(77,084	)
Class 2		—			(9,404,677	)
Class 3		—			(1,483,954	)
Class 4		—			(82,499	)
Net Realized Gains:
Class 1		—			(73,850	)
Class 2		—			(10,668,334	)
Class 3		—			(1,521,081	)
Class 4		—			(84,688	)
Total distributions to shareholders		—			(23,396,167	)
From Shares of Beneficial Interest:
Proceeds from shares sold
Class 1		1			1,323,684
Class 2		104,069,116			235,598,976
Class 3		13,212,869			51,051,039
Class 4		1,675,631			7,597,285
Reinvestment of distributions
Class 1		—			150,934
Class 2		—			20,073,011
Class 3		—			3,005,035
Class 4		—			167,187
Cost of shares redeemed
Class 1		(3,123,255	)		(1,670,415	)
Class 2		(76,088,893	)		(102,455,270	)
Class 3		(13,903,876	)		(25,215,223	)
Class 4		(706,533	)		(342,814	)
Net increase in net assets from share transactions of beneficial interest		25,135,060			189,283,429
Total increase in net assets		39,341,292			194,075,228
Net Assets:
Beginning of period		1,118,612,320			924,537,092
End of period	$	1,157,953,612		$	1,118,612,320
Undistributed net investment income at end of period	$	20,691,462		$	15,005,002

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Statements of Changes in Net Assets (Continued)

	Managed Risk Moderate Growth ETF Portfolio
	Six Months Ended
	June 30, 2015			Year Ended
	(Unaudited)			December 31, 2014
SHARE ACTIVITY
Class 1
Shares Sold		1			111,095
Shares Reinvested		—			12,672
Shares Redeemed		(255,673	)		(136,028	)
Net decrease in shares of beneficial interest outstanding		(255,672	)		(12,261	)
Class 2
Shares Sold		8,507,043			19,564,960
Shares Reinvested		—			1,691,070
Shares Redeemed		(6,231,288	)		(8,523,179	)
Net increase in shares of beneficial interest outstanding		2,275,755			12,732,851

Class 3
Shares Sold		1,078,647			4,228,018
Shares Reinvested		—			253,375
Shares Redeemed		(1,136,858	)		(2,052,921	)
Net increase (decrease) in shares of beneficial interest outstanding		(58,211	)		2,428,472

Class 4
Shares Sold		138,953			631,830
Shares Reinvested		—			14,144
Shares Redeemed		(57,614	)		(27,879	)
Net increase in shares of beneficial interest outstanding		81,339			618,095

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Balanced ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 1 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012			December 31, 2011(a)

Net asset value, beginning of period	$	11.68		$	11.52		$	10.75		$	9.90		$	10.00
Income from investment operations:
Net investment income (b) (c)		0.05			0.18			0.17			0.23			0.25
Net realized and unrealized gain (loss) on investments and futures contracts		0.08			0.20			0.70			0.63			(0.35	)
Total income (loss) from investment operations		0.13			0.38			0.87			0.86			(0.10	)
Less distributions from:
Net investment income		—			(0.13	)		(0.10	)		(0.01	)		—
Net realized gain		—			(0.09	)		—			—			—
Total distributions		—			(0.22	)		(0.10	)		(0.01	)		—
Net asset value, end of period	$	11.81		$	11.68		$	11.52		$	10.75		$	9.90
Total return (d)		1.11	%		3.34	%		8.08	%		8.69	%		(1.00	)%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	1,581		$	5,250		$	6,632		$	5,314		$	685
Ratio of expenses to average net assets (e)		0.40	% (f)		0.40	%		0.40	%		0.40	%		0.40	% (f)
Ratio of net investment income to average net assets (c)(e)		0.85	% (f)		1.51	%		1.51	%		2.24	%		4.47	% (f)
Portfolio turnover rate		6	% (g)		19	%		25	%		25	%		10	% (g)

(a)

The Managed Risk Balanced ETF Portfolio Class 1 commenced operations on June 9, 2011.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions, if any. Total returns for periods of less than one year are not annualized.

(e)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Not annualized.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Balanced ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 2 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012			December 31, 2011(a)

Net asset value, beginning of period	$	11.62		$	11.47		$	10.71		$	9.89		$	10.00
Income (loss) from investment operations:
Net investment income (b) (c)		0.05			0.15			0.14			0.26			0.19
Net realized and unrealized gain (loss) on investments and futures contracts		0.06			0.20			0.71			0.57			(0.30	)
Total income (loss) from investment operations		0.11			0.35			0.85			0.83			(0.11	)
Less distributions from:
Net investment income		—			(0.11	)		(0.09	)		(0.01	)		—
Net realized gain		—			(0.09	)		—			—			—
Total distributions		—			(0.20	)		(0.09	)		(0.01	)		—
Net asset value, end of period	$	11.73		$	11.62		$	11.47		$	10.71		$	9.89
Total return (d)		0.95	%		3.06	%		7.93	%		8.39	%		(1.10	)%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	607,164		$	592,975		$	529,690		$	346,206		$	23,533
Ratio of expenses to average net assets (e)		0.65	% (f)		0.65	%		0.65	%		0.65	%		0.65	% (f)
Ratio of net investment income to average net assets (c) (e)		0.89	% (f)		1.32	%		1.30	%		2.49	%		3.46	% (f)
Portfolio turnover rate		6	% (g)		19	%		25	%		25	%		10	% (g)

(a)

The Managed Risk Balanced ETF Portfolio Class 2 commenced operations on June 9, 2011.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Not annualized.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Balanced ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 3 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012(a)

Net asset value, beginning of period	$	11.69		$	11.56		$	10.83		$	10.42
Income from investment operations:
Net investment income (b) (c)		0.05			0.15			0.22			0.19
Net realized and unrealized gain on investments and futures contracts		0.06			0.20			0.61			0.22
Total income from investment operations		0.11			0.35			0.83			0.41
Less distributions from:
Net investment income		—			(0.13	)		(0.10	)		—
Net realized gain		—			(0.09	)		—			—
Total distributions		—			(0.22	)		(0.10	)		—
Net asset value, end of period	$	11.80		$	11.69		$	11.56		$	10.83
Total return (d)		0.94	%		3.00	%		7.65	%		3.93	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	59,987		$	58,657		$	40,788		$	16	(h)
Ratio of expenses to average net assets (e)		0.75	% (f)		0.75	%		0.75	%		0.75	% (f)
Ratio of net investment income to average net assets (c) (e)		0.80	% (f)		1.25	%		1.93	%		2.72	% (f)
Portfolio turnover rate		6	% (g)		19	%		25	%		25	% (g)

(a)

The Managed Risk Balanced ETF Portfolio Class 3 commenced operations on May 1, 2012.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Not annualized.

(h)

Actual net assets, not truncated.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Balanced ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 4 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012(a)

Net asset value, beginning of period	$	11.49		$	11.39		$	10.69		$	10.42
Income (loss) from investment operations:
Net investment income (b) (c)		0.03			0.13			0.13			0.76
Net realized and unrealized gain (loss) on investments and futures contracts		0.06			0.18			0.67			(0.49	) (d)
Total income from investment operations		0.09			0.31			0.80			0.27
Less distributions from:
Net investment income		—			(0.12	)		(0.10	)		—
Net realized gain		—			(0.09	)		—			—
Total distributions		—			(0.21	)		(0.10	)		—
Net asset value, end of period	$	11.58		$	11.49		$	11.39		$	10.69
Total return (e)		0.78	%		2.69	%		7.47	%		2.59	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	13,536		$	11,319		$	5,327		$	284
Ratio of expenses to average net assets (f)		1.00	% (g)		1.00	%		1.00	%		1.00	% (g)
Ratio of net investment income to average net assets (c) (f)		0.58	% (g)		1.08	%		1.16	%		10.49	% (g)
Portfolio turnover rate		6	% (h)		19	%		25	%		25	% (h)

(a)

The Managed Risk Balanced ETF Portfolio Class 4 commenced operations on May 1, 2012.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

The amount of net gain (loss) from securities (both realized and unrealized) per share does not accord with the amounts reported in the Statements of Operations due to the timing of purchases and redemptions of Portfolio shares during the period.

(e)

(f)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(g)

Annualized.

(h)

Not annualized.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Growth ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 1 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012			December 31, 2011(a)

Net asset value, beginning of period	$	11.82		$	11.77		$	10.22		$	9.43		$	10.00
Income (loss) from investment operations:
Net investment income (b) (c)		0.08			0.19			0.18			0.21			0.36
Net realized and unrealized gain (loss) on investments and futures contracts		(0.02	)		(0.02	)		1.48			0.59			(0.93	)
Total income (loss) from investment operations		0.06			0.17			1.66			0.80			(0.57	)
Less distributions from:
Net investment income		—			(0.12	)		(0.11	)		(0.01	)		—
Net asset value, end of period	$	11.88		$	11.82		$	11.77		$	10.22		$	9.43
Total return (d)		0.51	%		1.49	%		16.32	%		8.45	%		(5.70	)%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	39,252		$	39,059		$	36,004		$	24,123		$	9,242
Ratio of expenses to average net assets (e)		0.40	% (f)		0.40	%		0.40	%		0.40	%		0.40	% (f)
Ratio of net investment income to average net assets (c) (e)		1.29	% (f)		1.64	%		1.66	%		2.12	%		5.59	% (f)
Portfolio turnover rate		6	% (g)		14	%		15	%		8	%		28	% (g)

(a)

The Managed Risk Growth ETF Portfolio Class 1 commenced operations on April 26, 2011.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Not annualized.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Growth ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 2 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012			December 31, 2011(a)

Net asset value, beginning of period	$	11.76		$	11.71		$	10.19		$	9.42		$	10.00
Income (loss) from investment operations:
Net investment income (b) (c)		0.06			0.17			0.15			0.24			0.34
Net realized and unrealized gain (loss) on investments and futures contracts		(0.02	)		(0.02	)		1.47			0.54			(0.92	)
Total income (loss) from investment operations		0.04			0.15			1.62			0.78			(0.58	)
Less distributions from:
Net investment income		—			(0.10	)		(0.10	)		(0.01	)		—
Net asset value, end of period	$	11.80		$	11.76		$	11.71		$	10.19		$	9.42
Total return (d)		0.34	%		1.31	%		15.96	%		8.24	%		(5.80	)%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	1,008,917		$	1,029,438		$	888,391		$	573,528		$	25,393
Ratio of expenses to average net assets (e)		0.65	% (f)		0.65	%		0.65	%		0.65	%		0.65	% (f)
Ratio of net investment income to average net assets (c) (e)		1.02	% (f)		1.41	%		1.40	%		2.43	%		5.18	% (f)
Portfolio turnover rate		6	% (g)		14	%		15	%		8	%		28	% (g)

(a)

The Managed Risk Growth ETF Portfolio Class 2 commenced operations on April 26, 2011.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Not annualized.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Growth ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 3 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012(a)

Net asset value, beginning of period	$	11.72		$	11.70		$	10.15		$	9.95
Income from investment operations:
Net investment income (b) (c)		0.05			0.16			0.26			0.17
Net realized and unrealized gain (loss) on investments and futures contracts		(0.01	)		(0.02	)		1.40			0.03
Total income from investment operations		0.04			0.14			1.66			0.20
Less distributions from:
Net investment income		—			(0.12	)		(0.11	)		—
Net asset value, end of period	$	11.76		$	11.72		$	11.70		$	10.15
Total return (d)		0.34	%		1.18	%		16.43	%		2.01	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	188,840		$	206,885		$	133,241		$	15	(h)
Ratio of expenses to average net assets (e)		0.75	% (f)		0.75	%		0.75	%		0.75	% (f)
Ratio of net investment income to average net assets (c) (e)		0.90	% (f)		1.35	%		2.28	%		2.67	% (f)
Portfolio turnover rate		6	% (g)		14	%		15	%		8	% (g)

(a)

The Managed Risk Growth ETF Portfolio Class 3 commenced operations on May 1, 2012.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Not annualized.

(h)

Actual net assets, not truncated.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Growth ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 4 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012(a)

Net asset value, beginning of period	$	11.77		$	11.77		$	10.28		$	9.95
Income (loss) from investment operations:
Net investment income (b) (c)		0.05			0.14			0.17			0.47
Net realized and unrealized gain (loss) on investments and futures contracts		(0.02	)		(0.04	)		1.43			(0.14	) (d)
Total income from investment operations		0.03			0.10			1.60			0.33
Less distributions from:
Net investment income		—			(0.10	)		(0.11	)		—
Net asset value, end of period	$	11.80		$	11.77		$	11.77		$	10.28
Total return (e)		0.25	%		0.88	%		15.64	%		3.32	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	11,412		$	7,510		$	4,689		$	151
Ratio of expenses to average net assets (f)		1.00	% (g)		1.00	%		1.00	%		1.00	% (g)
Ratio of net investment income to average net assets (c)(f)		0.84	% (g)		1.16	%		1.48	%		6.97	% (g)
Portfolio turnover rate		6	% (h)		14	%		15	%		8	% (h)

(a)

The Managed Risk Growth ETF Portfolio Class 4 commenced operations on May 1, 2012.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

(f)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(g)

Annualized.

(h)

Not annualized.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Moderate Growth ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 1 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012			December 31, 2011(a)

Net asset value, beginning of period	$	12.02		$	11.93		$	10.68		$	9.82		$	10.00
Income (loss) from investment operations:
Net investment income (b) (c)		0.06			0.20			0.18			0.25			0.14
Net realized and unrealized gain (loss) on investments and futures contracts		0.11			0.18			1.17			0.62			(0.32	)
Total income (loss) from investment operations		0.17			0.38			1.35			0.87			(0.18	)
Less distributions from:
Net investment income		—			(0.15	)		(0.10	)		(0.01	)		—
Net realized gain		—			(0.14	)		—			—			—
Total distributions		—			(0.29	)		(0.10	)		(0.01	)		—
Net asset value, end of period	$	12.19		$	12.02		$	11.93		$	10.68		$	9.82
Total return (d)		1.41	%		3.16	%		12.66	%		8.88	%		(1.80	)%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	3,259		$	6,286		$	6,389		$	6,068		$	20
Ratio of expenses to average net assets (e)		0.40	% (f)		0.40	%		0.40	%		0.40	%		0.40	% (f)
Ratio of net investment income to average net assets (c) (e)		1.07	% (f)		1.65	%		1.57	%		2.46	%		2.39	% (f)
Portfolio turnover rate		6	% (g)		19	%		25	%		12	%		7	% (g)

(a)

The Managed Risk Moderate Growth ETF Portfolio Class 1 commenced operations on June 9, 2011.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Not annualized.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Moderate Growth ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 2 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012			December 31, 2011(a)

Net asset value, beginning of period	$	11.97		$	11.90		$	10.67		$	9.83		$	10.00
Income (loss) from investment operations:
Net investment income (b) (c)		0.06			0.18			0.17			0.27			0.21
Net realized and unrealized gain (loss) on investments and futures contracts		0.09			0.15			1.15			0.58			(0.38	)
Total income (loss) from investment operations		0.15			0.33			1.32			0.85			(0.17	)
Less distributions from:
Net investment income		—			(0.12	)		(0.09	)		(0.01	)		—
Net realized gain		—			(0.14	)		—			—			—
Total distributions		—			(0.26	)		(0.09	)		(0.01	)		—
Net asset value, end of period	$	12.12		$	11.97		$	11.90		$	10.67		$	9.83
Total return (d)		1.25	%		2.81	%		12.39	%		8.66	%		(1.70	)%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	1,012,299		$	971,963		$	814,589		$	514,568		$	39,430
Ratio of expenses to average net assets (e)		0.65	% (f)		0.65	%		0.65	%		0.65	%		0.65	% (f)
Ratio of net investment income to average net assets (c) (e)		1.01	% (f)		1.46	%		1.49	%		2.57	%		3.78	% (f)
Portfolio turnover rate		6	% (g)		19	%		25	%		12	%		7	% (g)

(a)

The Managed Risk Moderate Growth ETF Portfolio Class 2 commenced operations on June 9, 2011.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Not annualized.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Moderate Growth ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 3 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012(a)

Net asset value, beginning of period	$	11.96		$	11.91		$	10.67		$	10.39
Income from investment operations:
Net investment income (b) (c)		0.05			0.16			0.25			0.20
Net realized and unrealized gain on investments and futures contracts		0.10			0.17			1.09			0.08
Total income from investment operations		0.15			0.33			1.34			0.28
Less distributions from:
Net investment income		—			(0.14	)		(0.10	)		—
Net realized gain		—			(0.14	)		—			—
Total distributions		—			(0.28	)		(0.10	)		—
Net asset value, end of period	$	12.11		$	11.96		$	11.91		$	10.67
Total return (d)		1.25	%		2.75	%		12.57	%		2.69	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	131,799		$	130,856		$	101,414		$	15	(h)
Ratio of expenses to average net assets (e)		0.75	% (f)		0.75	%		0.75	%		0.75	% (f)
Ratio of net investment income to average net assets (c) (e)		0.91	% (f)		1.36	%		2.17	%		2.95	% (f)
Portfolio turnover rate		6	% (g)		19	%		25	%		12	% (g)

(a)

The Managed Risk Moderate Growth ETF Portfolio Class 3 commenced operations on May 1, 2012.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Not annualized.

(h)

Actual net assets, not truncated.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

Financial Highlights

Managed Risk Moderate Growth ETF Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class 4 Shares
	Six Months Ended
	June 30, 2015			Year Ended			Year Ended			Period Ended
	(Unaudited)			December 31, 2014			December 31, 2013			December 31, 2012(a)

Net asset value, beginning of period	$	11.91		$	11.89		$	10.70		$	10.39
Income (loss) from investment operations:
Net investment income (b) (c)		0.04			0.16			0.18			0.58
Net realized and unrealized gain (loss) on investments and futures contracts		0.09			0.14			1.11			(0.27	) (d)
Total income from investment operations		0.13			0.30			1.29			0.31
Less distributions from:
Net investment income		—			(0.14	)		(0.10	)		—
Net realized gain		—			(0.14	)		—			—
Total distributions		—			(0.28	)		(0.10	)		—
Net asset value, end of period	$	12.04		$	11.91		$	11.89		$	10.70
Total return (e)		1.09	%		2.50	%		12.07	%		2.98	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	10,596		$	9,508		$	2,145		$	77
Ratio of expenses to average net assets (f)		1.00	% (g)		1.00	%		1.00	%		1.00	% (g)
Ratio of net investment income to average net assets (c)(f)		0.67	% (g)		1.37	%		1.56	%		8.19	% (g)
Portfolio turnover rate		6	% (h)		19	%		25	%		12	% (h)

(a)

The Managed Risk Moderate Growth ETF Portfolio Class 4 commenced operations on May 1, 2012.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

(f)

Does not include the expenses of the underlying investment companies in which the Portfolio invests.

(g)

Annualized.

(h)

Not annualized.

See accompanying notes to financial statements.

TOPS^®Managed Risk ETF Portfolios

NOTES TO FINANCIAL STATEMENTS

June 30, 2015 (Unaudited)

ORGANIZATION

The TOPS^® Managed Risk ETF Portfolios (each a “Portfolio”, collectively the “Portfolios”) is comprised of three different actively managed portfolios. Each Portfolio is a diversified series of shares of beneficial interest of Northern Lights Variable Trust (the “Trust”), a statutory trust organized under the laws of the State of Delaware on November 2, 2005, and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Portfolios are intended to be funding vehicles for variable annuity contracts and flexible premium variable life insurance policies offered by the separate accounts of various insurance companies. The assets of each Portfolio are segregated and a shareholder’s interest is limited to the Portfolio in which shares are held. Each Portfolio pays its own expenses. The investment objective of each Portfolio is as follows:

Portfolio	Primary Objective

Managed Risk Balanced ETF Portfolio	Income and capital appreciation with less volatility than the fixed income and equity markets as a whole.

Managed Risk Growth ETF Portfolio	Capital appreciation with less volatility than the equity markets as a whole.

Managed Risk Moderate Growth Portfolio	Capital appreciation with less volatility than the equity markets as a whole.

The Portfolios currently offer four classes of shares: Class 1 Shares, Class 2 Shares, Class 3 Shares and Class 4 Shares. Each class of shares of the Portfolios has identical rights and privileges except with respect to arrangements pertaining to shareholder servicing or distribution, class-related expenses, voting rights on matters affecting a single class of shares, and the exchange privilege of each class of shares. The Portfolios’ share classes differ in the fees and expenses charged to shareholders. The Portfolios’ income, expenses (other than class specific distribution fees) and realized and unrealized gains and losses are allocated proportionately each day based upon the relative net assets of each class.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Portfolios in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Portfolios follow the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Securities 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. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost. Futures and options on futures are valued at the final settled price or, in the absence of a settled price, at the last sale price on the day of valuation.

Valuation of Funds of Funds – The Portfolios may invest in portfolios of open-end investment companies (the “underlying funds”). Open-end investment companies are valued at their respective net asset values as reported by such investment companies. Open-end investment companies 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 based on the methods established by the board of directors of the open-end funds.

TOPS^®Managed Risk ETF Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2015 (Unaudited)

A Portfolio 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 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 and/or Sub-Advisor. The team may also enlist third party consultants such as an audit 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 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 and/or sub-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 or sub-advisor, the prices or values available do not represent the fair value of the instrument. Factors which may cause the advisor or sub-advisor to make such a judgment include, but are not limited to, the following: only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”) since the closing prices were established on the principal exchange on which they are traded, but prior to a Portfolio’s calculation of its net asset value. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private placements or non-traded securities are valued via inputs from the advisor or sub-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 or sub-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 Portfolio’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.

Each Portfolio 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 Portfolios have the ability to access.

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

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Portfolios’ 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.

TOPS^®Managed Risk ETF Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2015 (Unaudited)

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 June 30, 2015 for each Portfolio’s investments measured at fair value:

TOPS Managed Risk Balanced ETF Portfolio

Assets*	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	601,839,560	$	—	$	—	$	601,839,560
Short-Term Investments		80,186,782		1,400,000		—		81,586,782
Total	$	682,026,342	$	1,400,000	$	—	$	683,426,342

Liabilities*		Level 1				Level 2				Level 3				Total
Long Futures Contracts **		$	404,930			$	—			$	—			$	404,930

TOPS Managed Risk Growth ETF Portfolio

Assets*	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	1,101,504,952	$	—	$	—	$	1,101,504,952
Short-Term Investments		141,698,649		5,770,000		—		147,468,649
Total	$	1,243,203,601	$	5,770,000	$	—	$	1,248,973,601

Liabilities*		Level 1				Level 2				Level 3				Total
Short Futures Contracts **		$	620			$	—			$	—			$	620

TOPS Managed Risk Moderate Growth ETF Portfolio

Assets*	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	1,022,236,952	$	—	$	—	$	1,022,236,952
Short-Term Investments		134,164,424		3,340,000		—		137,504,424
Total	$	1,156,401,376	$	3,340,000	$	—	$	1,159,741,376

Liabilities*		Level 1				Level 2				Level 3				Total
Long Futures Contracts **		$	965,258			$	—			$	—			$	965,258

The Portfolios did not hold any Level 3 securities during the six months ended June 30, 2015.

There were no transfers into or out of any level during the six months ended June 30, 2015.

It is the Portfolios’ policy to record transfers between levels at the end of the period.

Refer to the Portfolios of Investments for security classifications.

Cumulative appreciation (depreciation) of futures contracts is reported in the above table.

TOPS^®Managed Risk ETF Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2015 (Unaudited)

Security Transactions and Related Income – Security transactions are accounted for on 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.

Dividends and Distributions to Shareholders – Dividends from net investment income and distributions from net realized capital gains if any, are declared and paid annually. Dividends and distributions to shareholders are recorded on ex-date and are determined in accordance with Federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (e.g., deferred losses, capital loss carryforwards) 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. These reclassifications have no effect on net assets, results from operations or net asset values per share of the Portfolios.

Federal Income Tax – It is each Portfolio’s policy to continue to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its taxable income and net realized gains to shareholders. Therefore, no Federal income tax provision is required.

Each Portfolio will recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed each Portfolio’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken in each Portfolio’s 2011-2013 tax returns or expected to be taken in each Portfolio’s 2014 tax returns. Each Portfolio identified its major tax jurisdictions as U.S. Federal, Nebraska and foreign jurisdictions where the Portfolios make significant investments. The Portfolios are 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.

Futures Contracts – The Portfolios are subject to equity price risk in the normal course of pursuing their investment objectives. The Portfolios may purchase or sell futures contracts to hedge against market risk and to reduce return volatility. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral for the account of the broker (each Portfolio’s agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by “marking to market” on a daily basis to reflect the market value of the contracts at the end of each day’s trading. Variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. When the contracts are closed, a Portfolio recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Portfolio’s basis in the contract. If a Portfolio were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Portfolio would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Each Portfolio segregates liquid securities having a value at least equal to the amount of the current obligation under any open futures contract. Risks may exceed amounts recognized in the Statements of Assets and Liabilities. With futures, there is minimal counterparty credit risk to a Portfolio since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

For the six months ended June 30, 2015, the Portfolios had the following realized gains (loss) from futures contracts reported in the Statements of Operations.

Portfolio	Realized Gain (Loss)
Managed Risk Balanced ETF Portfolio	$	2,689,651
Managed Risk Growth ETF Portfolio		(18,284,511	)
Managed Risk Moderate Growth ETF Portfolio		3,296,679

TOPS^®Managed Risk ETF Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2015 (Unaudited)

For the six months ended June 30, 2015, the Portfolios had the following change in unrealized appreciation (depreciation) from futures contracts.

Portfolio	Appreciation (Depreciation)
Managed Risk Balanced ETF Portfolio	$	(1,646,733	)
Managed Risk Growth ETF Portfolio		358,275
Managed Risk Moderate Growth ETF Portfolio		(2,665,058	)

The notional value of the derivative instruments outstanding as of June 30, 2015 as disclosed in the Portfolio of Investments and the amounts of realized and changes in unrealized gains and losses on derivative instruments during the period as disclosed above and within the Statement of Operations serve as indicators of the volume of derivative activity for the Portfolio.

Offsetting of Financial Assets and Derivative Assets

It is the Portfolio’s policy to recognize a net asset or liability equal to the unrealized appreciation (depreciation) of futures contracts. During the six months ended June 30, 2015, the Portfolio is subject to a master netting arrangement for the futures. The following table shows additional information regarding the offsetting of assets and liabilities at June 30, 2015.

Managed Risk Balanced ETF Portfolio

									Gross Amounts Not Offset in
									the Statement of Assets &
Liabilities:									Liabilities
							Net Amounts
				Gross			of Liabilities
				Amounts			Presented in
	Gross			Offset in the			the
	Amounts of			Statement			Statement of					Cash
	Recognized			of Assets &			Assets &		Financial			Collateral		Net
Description	Liabilities			Liabilities			Liabilities		Instruments			Pledged		Amount
Futures
Contracts	$	404,930	(1)	$	—	(1)	$	404,930	$	404,930	(2)	$	—	$	—
Total	$	404,930		$	—		$	404,930	$	—		$	—	$	—

(1)

Gross unrealized appreciation and depreciation as presented in the Portfolio of Investments

(2)

The amount is limited to the net derivative balance and, accordingly, does not include excess collateral pledged

Managed Risk Growth ETF Portfolio

									Gross Amounts Not Offset in
									the Statement of Assets &
Liabilities:									Liabilities
							Net Amounts
				Gross			of Liabilities
				Amounts			Presented in
	Gross			Offset in the			the
	Amounts of			Statement			Statement of					Cash
	Recognized			of Assets &			Assets &		Financial			Collateral		Net
Description	Liabilities			Liabilities			Liabilities		Instruments			Pledged		Amount
Futures
Contracts	$	31,510	(1)	$	30,890	(1)	$	620	$	620	(2)	$	—	$	—
Total	$	31,510		$	30,890		$	620	$	620		$	—	$	—

(1)

Gross unrealized appreciation and depreciation as presented in the Portfolio of Investments

(2)

The amount is limited to the net derivative balance and, accordingly, does not include excess collateral pledged

TOPS^®Managed Risk ETF Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2015 (Unaudited)

Managed Risk Moderate Growth ETF Portfolio

									Gross Amounts Not Offset in
									the Statement of Assets &
Liabilities:									Liabilities
							Net Amounts
				Gross			of Liabilities
				Amounts			Presented in
	Gross			Offset in the			the
	Amounts of			Statement			Statement of					Cash
	Recognized			of Assets &			Assets &		Financial			Collateral		Net
Description	Liabilities			Liabilities			Liabilities		Instruments			Pledged		Amount
Futures
Contracts	$	965,258	(1)	$	—	(1)	$	965,258	$	965,258	(2)	$	—	$	—
Total	$	965,258		$	—		$	965,258	$	—		$	—	$	—

(1)

Gross unrealized appreciation and depreciation as presented in the Portfolio of Investments

(2)

The amount is limited to the net derivative balance and, accordingly, does not include excess collateral pledged

Exchange Traded Funds – The Portfolios 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 Portfolio may purchase an ETF to 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.

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.

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

INVESTMENT TRANSACTIONS

For the six months ended June 30, 2015, cost of purchases and proceeds from sales of portfolio securities, other than short-term investments, were as follows:

Portfolio	Purchases		Sales
Managed Risk Balanced ETF Portfolio	$	49,081,451	$	38,833,837
Managed Risk Growth ETF Portfolio		71,177,495		117,774,228
Managed Risk Moderate Growth ETF Portfolio		93,742,397		65,358,540

TOPS^®Managed Risk ETF Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2015 (Unaudited)

INVESTMENTS IN AFFILIATED COMPANIES

An affiliated company is a company in which a Portfolio has ownership of at least 5% of the voting securities. Companies that are affiliates of the Managed Risk Growth ETF Portfolio and Managed Risk Moderate Growth ETF Portfolio at June 30, 2015 are noted in each Portfolio’s Portfolio of Investments. Transactions during the period with companies that are affiliates or were affiliates at the beginning of the period are as follows:

TOPS Managed Risk Growth ETF Portfolio

													Change in
								Dividends					Unrealized
		Value- Beginning of						Credited to		Realized Gain			Appreciation/			Value-End of
CUSIP	Description	Year		Purchases		Sales Proceeds		Income		(Loss)			(Depreciation)			Year
18383Q879	Guggenheim Timber ETF	$	11,558,480	$	339,132	$	1,274,129	$	—	$	151,248		$	480,776		$	11,255,507
97717X867	WisdomTree Emerging Markets Local Debt Fund		35,041,136		3,863,845		2,853,637		848,539		(751,999	)	$	(1,550,157	)		33,749,188
Total		$	46,599,616	$	4,202,977	$	4,127,766	$	848,539	$	(600,751	)	$	(1,069,381	)	$	45,004,695

TOPS Managed Risk Moderate Growth ETF Portfolio

												Change in
								Dividends				Unrealized
		Value- Beginning of						Credited to				Appreciation/		Value-End of
CUSIP	Description	Year		Purchases		Sales Proceeds		Income		Realized Gains		(Depreciation)		Year
18383Q879	Guggenheim Timber ETF	$	10,051,625	$	542,509	$	715,025	$	—	$	94,748	$	456,874	$	10,430,731

INVESTMENT ADVISORY AGREEMENT / TRANSACTIONS WITH AFFILIATES

ValMark Advisers, Inc. serves as the Portfolios’ investment advisor (the “Advisor”). The Advisor has engaged Milliman Financial Risk Management, LLC as the Portfolios’ Sub-Advisor (the “Sub-Advisor”). Pursuant to an advisory agreement with the Trust, the Advisor, under the oversight of the Board, directs the daily operations of the Portfolios 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 Portfolios pay the Advisor a management fee, computed on average daily net assets and accrued daily and paid monthly, at an annual rate of 0.30% of each Portfolio’s average daily net assets. Pursuant to a sub-advisory agreement between the Advisor and Sub-Advisor, on behalf of the Managed Risk Portfolios, the Advisor, not the Portfolios, pays the Sub-Advisor a fee, which is computed and accrued daily and paid monthly. For the six months ended June 30, 2015, the Portfolios paid the following in advisory fees.

Portfolio	Advisory Fees
Managed Risk Balanced ETF Portfolio	$	1,017,557
Managed Risk Growth ETF Portfolio		1,905,609
Managed Risk Moderate Growth ETF Portfolio		1,715,939

The Trust, with respect to the Portfolios, has adopted the Trust’s Master Distribution and Shareholder Servicing Plan (“12b-1 Plan” or “Plan”) for each of Class 2 shares, Class 3 shares and Class 4 shares. The fee is calculated at an annual rate of 0.25%, 0.35% and 0.60% of the average daily net assets attributable to each Portfolio’s Class 2 shares, Class 3 shares and Class 4 shares, respectively, and is paid to Northern Lights Distributors, LLC (the “Distributor”) to provide compensation for ongoing shareholder servicing and distribution related activities and/or maintenance of each Portfolio’s shareholder accounts, not otherwise required to be provided by the Advisor. For the six months ended June 30, 2015, the Portfolios paid the following in distribution fees.

TOPS^®Managed Risk ETF Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2015 (Unaudited)

Portfolio	Distribution Fees
Managed Risk Balanced ETF Portfolio	$	894,977
Managed Risk Growth ETF Portfolio		1,653,643
Managed Risk Moderate Growth ETF Portfolio		1,506,958

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

Gemini Fund Services, LLC (“GFS”), an affiliate of the Distributor, provides administration, fund accounting, and transfer agent services to the Portfolios. Pursuant to the terms of an administrative servicing agreement with GFS, each Portfolio pays to GFS a monthly fee for all operating expenses of the Portfolio, which is calculated by each Portfolio on its average daily net assets. Operating expenses include but are not limited to Fund Accounting, Fund Administration, Transfer Agency, Legal Fees, Audit Fees, Compliance Services, Shareholder Reporting Expense, Trustees fees and Custody Fees. For the six months ended June 30, 2015, the Trustees received fees in the amount $4,900 on behalf of each Portfolio.

The approved entities may be affiliates of GFS and the Distributor. GFS provides a Principal Executive Officer and a Principal Financial Officer to the Portfolios.

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 GFS under the administrative servicing agreement.

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

CONTROL OWNERSHIP

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 1940 Act. As of June 30, 2015, ownership percentages of the holders of the voting securities of each Portfolio that may be deemed to control the Portfolio was as follows:

Managed Risk Balanced ETF Portfolio

Ohio National Life Insurance Company		82%

Managed Risk Growth ETF Portfolio

Ohio National Life Insurance Company		66%

Managed Risk Moderate Growth ETF Portfolio

Ohio National Life Insurance Company		80%

The Trust has no knowledge as to whether all or any portion of the shares owned of record are also owned beneficially.

TOPS^®Managed Risk ETF Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

June 30, 2015 (Unaudited)

DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

The tax character of distributions paid for the following years was as follows:

	For the year ended December 31, 2014						For the year ended December 31, 2013
	Ordinary		Long-Term				Ordinary		Long-Term
Fund	Income		Capital Gains		Total		Income		Capital Gains		Total
Managed Risk Balanced ETF Portfolio	$	6,238,760	$	4,957,636	$	11,196,396	$	4,011,218	$	—	$	4,011,218

Managed Risk Growth ETF Portfolio		11,304,924		—		11,304,924		7,872,996		—		7,872,996

Managed Risk Moderate Growth ETF Portfolio		11,048,214		12,347,953		23,396,167		6,606,700		—		6,606,700

As of December 31, 2014, the components of accumulated earnings/(deficit) on a tax basis were as follows:

	Undistributed		Undistributed		Capital Loss		Post		Unrealized		Total
	Ordinary		Long-Term		Carry		October		Appreciation/		Accumulated
Fund	Income		Capital Gains		Forwards		Loss		(Depreciation)		Earnings/(Deficits)
Managed Risk Balanced ETF Portfolio	$	8,483,505	$	15,545,500	$	—	$	—	$	28,259,619	$	52,288,624

Managed Risk Growth ETF Portfolio		17,062,162		5,240,406		—		—		118,139,273		140,441,841

Managed Risk Moderate Growth ETF Portfolio		15,005,002		24,438,045		—		—		65,036,602		104,479,649

The difference between book basis and tax basis unrealized appreciation, undistributed ordinary income and accumulated net realized gain from investments is primarily attributable to the tax deferral of losses on wash sales and the mark-to-market on open Section 1256 contracts.

SUBSEQUENT EVENTS

Subsequent events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has concluded that there are no subsequent events requiring adjustment or disclosure in the financial statements.

TOPS^®Managed Risk ETF Portfolios

EXPENSE EXAMPLES (Unaudited)

June 30, 2015

As a shareholder of the Portfolios, you incur ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio 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 January 1, 2015 through June 30, 2015.

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 each 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 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, or other expenses charged by your insurance contract or separate account. 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.

Hypothetical

(5% return before

Actual

expenses)

Portfolio’s

Ending

Expenses

Ending

Expenses

Annualized

Beginning

Account

Paid

Account

Paid

Expense

Account Value

Value

During

Value

During

Class 1

Ratio

1-1-15

6-30-15

Period^*

6-30-15

Period^*

Managed Risk Balanced ETF Portfolio

0.40%

$1,000.00

$1,011.10

$1.99

$1,022.81

$2.01

Managed Risk Growth ETF Portfolio

0.40%

$1,000.00

$1,005.10

$1.99

$1,022.81

$2.01

Managed Risk Moderate Growth ETF Portfolio

0.40%

$1,000.00

$1,014.10

$2.00

$1,022.81

$2.01

TOPS^®Managed Risk ETF Portfolios

EXPENSE EXAMPLES (Unaudited)(Continued)

June 30, 2015

Hypothetical

(5% return before

Actual

expenses)

Portfolio’s

Ending

Expenses

Ending

Expenses

Annualized

Beginning

Account

Paid

Account

Paid

Expense

Account Value

Value

During

Value

During

Class 2

Ratio

1-1-15

6-30-15

Period^*

6-30-15

Period^*

Managed Risk Balanced ETF Portfolio

0.65%

$1,000.00

$1,009.50

$3.24

$1,021.57

$3.26

Managed Risk Growth ETF Portfolio

0.65%

$1,000.00

$1,003.40

$3.23

$1,021.57

$3.26

Managed Risk Moderate Growth ETF Portfolio

0.65%

$1,000.00

$1,012.50

$3.24

$1,021.57

$3.26

Hypothetical

(5% return before

Actual

expenses)

Portfolio’s

Beginning

Ending

Expenses

Ending

Expenses

Annualized

Account

Paid

Account

Paid

Expense

Value

During

Value

During

Class 3

Ratio

1-1-15

6-30-15

Period *

6-30-15

Period*

Managed Risk Balanced ETF Portfolio

0.75%

$1,000.00

$1,009.40

$3.74

$1,021.08

$3.76

Managed Risk Growth ETF Portfolio

0.75%

$1,000.00

$1,003.40

$3.73

$1,021.08

$3.76

Managed Risk Moderate Growth ETF Portfolio

0.75%

$1,000.00

$1,012.50

$3.74

$1,021.08

$3.76

Hypothetical

(5% return before

Actual

expenses)

Portfolio’s

Beginning

Ending

Expenses

Ending

Expenses

Annualized

Account

Paid

Account

Paid

Expense

Value

During

Value

During

Class 4

Ratio

1-1-15

6-30-15

Period *

6-30-15

Period*

Managed Risk Balanced ETF Portfolio

1.00%

$1,000.00

$1,007.80

$4.98

$1,019.84

$5.01

Managed Risk Growth ETF Portfolio

1.00%

$1,000.00

$1,002.50

$4.97

$1,019.84

$5.01

Managed Risk Moderate Growth ETF Portfolio

1.00%

$1,000.00

$1,010.90

$4.99

$1,019.84

$5.01

Expenses are equal to the average account value over the period, multiplied by each Portfolio’s annualized expense ratio, multiplied by the number of days in the period (181) divided by the number of days in the fiscal year (365).

PRIVACY NOTICE

Northern Lights Variable Trust

Rev. February 2014

FACTS

WHAT DOES NORTHERN LIGHTS VARIABLE 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 Variable Trust chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information:	Does Northern Lights Variable 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 Variable Trust

Page 2

What we do:

How does Northern Lights Variable 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 Variable 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 Variable 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 Variable 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 Variable Trust doesn’t jointly market.

This Page Intentionally Left Blank

PROXY VOTING POLICY

Information regarding how the Portfolios 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 Portfolios use to determine how to vote proxies is available without charge, upon request, by calling 1-855-572-5945 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

PORTFOLIO HOLDINGS

Each 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 1-855-572-5945.

INVESTMENT ADVISOR

ValMark Advisers, Inc.

130 Springside Drive

Akron, OH 44333

INVESTMENT SUB-ADVISOR

Milliman Financial Risk Management, LLC

71 S. Wacker Drive, 31st Floor

Chicago, IL 60606

ADMINISTRATOR

Gemini Fund Services, LLC

80 Arkay Drive, Suite 110

Hauppauge, New York 11788

Item 2. Code of Ethics.

Item 3. Audit Committee Financial Expert.

Item 4. Principal Accountant Fees and Services.

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 Variable Fund Trust

By (Signature and Title)

/s/ Andrew B. Rogers

Andrew B. Rogers, Principal Executive Officer

Date 08/21/15

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)

/s/ Andrew B. Rogers

Andrew B. Rogers, Principal Executive Officer

Date 08/21/15

By (Signature and Title)

/s/ Kevin E. Wolf

Kevin E. Wolf, Principal Financial Officer

Date 08/21/15