The AdvisorOne Enhanced Income Fund’s portfolio is invested to maintain risk levels equal to approximately 40% of a diversified stock portfolio consisting of 80% of the Russell 3000® Index and 20% of the MSCI ACWI (ex-US). CLS Investments, LLC (CLS), the Fund’s investment adviser, seeks to control risk within a given range by estimating the cumulative risk of the Fund’s investments and keeping it near that of the blended benchmark. CLS’s assessment of the risk of an asset is based primarily on its volatility and its performance during down periods.
Using fundamental and technical analysis, CLS actively manages the Fund’s investments by increasing or decreasing the Fund’s investment in certain asset classes, sectors, regions and countries, or by using a hedging technique, based on its assessment of the opportunities for return relative to the risk.
CLS utilizes a team approach for management of the Fund. CLS utilizes a team approach for management of the Fund. From the team, a portfolio manager is assigned primarily responsibility for the day-to-day management of the Fund’s portfolio. Senior Portfolio Manager of CLS Jennifer J. Schenkelberg, CFA, has been primarily responsible for the Fund’s daily management since its inception in 2009.
YOU MAY LOSE MONEY BY INVESTING IN THE FUND
There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.
Enhanced Income is a fund of funds meaning it invests in underlying mutual funds and exchange-traded funds (“Underlying Funds”). As a result, the Fund indirectly bears investment management fees of the underlying funds in addition to the fees and expenses of the Fund. In some instances it may be less expensive for an investor to invest in the underlying funds directly. There is also a risk that investment advisers of those underlying funds may make investment decisions that are detrimental to the performance of the Fund. Investments in underlying funds that own small- and mid-capitalization companies may be more vulnerable than larger, more established organizations. Investments in underlying funds that invest in foreign equity and debt securities could subject the Fund to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. The fund is also subject to covered call option risk. When the Fund sells covered call options, it receives cash but limits its opportunity to profit from an increase in the market value of the security beyond the exercise price (plus the premium received). In a rapidly rising market, the Fund could significantly underperform the market. The Fund may also engage in hedging activities by investing in inverse ETFs. These investments are significantly different from the investment activities commonly associated with conservative stock funds. Positions in inverse securities are speculative and can be more risky than “long” positions (purchases). You should be aware that any strategy that includes inverse securities could suffer significant losses.