As of: Friday, September 03, 2010 | CLSAX: $11.62 CLERX: $9.24 CLDEX: $9.04 CLEIX: $10.42 CLFLX: $10.35 CLHAX: $8.87 CHRVX: $9.97 CLBLX: $8.71 CLACX: $10.63 CLSHX: $9.84

Fund Facts - Flexible Income

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Based on total investment value as of 06/30/10. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities. Percentages in certain sections may not sum to 100% due to rounding. Concentrating in a small number of investments increases the Fund's risk because each investment has a greater effect on the Fund's performance.

TOTAL RETURNS (as of 6/30/2010)

Beta: 1

Standard Deviation: 1

	QTD	YTD	1 YEAR	3 YEAR	5 YEAR	INCEPTION
Class N	2.04%	3.63%	0%	0%	0%	(10/05/09 - 06/30/10) 3.25%

All returns over 1 year are annualized. Results represent past performance and do not indicate future returns. The value of an investment in the Funds and the return on investment both will fluctuate and redemption proceeds may be higher or lower than an investor’s original cost. Total return is calculated assuming reinvestment of all dividends. Total returns would have been lower had the Adviser, the Distributor, the Administrator, and Custodian not waived or reimbursed a portion of their fees. The performance of each class may vary based on differences in loads or fees paid by the shareholders investing in each class. For more performance numbers current to the most recent month-end please call 1-866-811-0225. Class N Shares are not subject to an initial sales charge or a CDSC.

Flexible Income is a fund of funds meaning it invests in underlying mutual funds and exchange-traded funds (“Underlying Funds”). In some instances, it may be less expensive for an investor to invest in the Underlying Funds directly. There is also a risk that the investment advisors of those Underlying Funds may make investment decisions detrimental to the performance of the Fund or may be more volatile than investments in other mutual funds.

Objective

The objective of the Flexible Income Fund is total return, consisting of capital growth and income, consistent with preservation of capital.

Commentary

Flexible Income’s return for the second quarter of 2010 was +2.04% versus its benchmark, the Barclay’s U.S. Aggregate Bond Index that gained +3.49%. The fund’s portfolio is overweight corporate bonds relative to its benchmark in an effort to emphasize the relative yield advantage currently in investment grade corporate bonds and high yield corporate bonds.. The other bond sectors remain neutral to underweight as the economic recovery remains intact.

Portfolio duration is neutral to the benchmark as we expect the Fed to remains on hold until the recovery becomes more broadly based. As a result, coupon return will likely make up the largest part of the bond markets total return in 2010, in contrast to the large price gains we witnessed in 2009 as corporate bond credit spreads narrowed dramatically. .

Fund Facts

Minimum investment:

$2,500 initial amount for individual accounts
$2,500 initial amount for IRA
$250 subsequent investments

Cusip number:
Class N xxxx

Ticker symbol:
Class N CLFLX

Inception Date:
10/5/2009

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Top Ten Portfolio Holdings

(as of 6/30/2010)

Fund Position	%
iShares iBoxx $ Investment Grade Corporate Bond	7.86%
iShares Barclays Credit Bond Fund	7.38%
SPDR Lehman High Yield Bond Fund	6.97%
iShares iBoxx $ High Yield Corporate Bond	6.92%
U.S. Treasury Notes/Bonds 10 5/8% Due 8/15/2015	4.35%
U.S. Treasury Notes 4 1/4% Due 11/15/2017	4.11%
Vanguard Total Bond Index	3.42%
FNCL 5% Due 2/1/2040	3.2%
iShares Lehman Aggregate Bond	2.8%
iShares Barclays Intermediate Credit	2.71%
Total	49.72%

ISHARES IBOXX $ INVESTMENT GRADE CORPORATE BOND - This fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the corporate bond market as defined by the iBoxx $ Liquid Investment Grade Index. ISHARES BARCLAYS CREDIT BOND FUND - This Fund seeks results that correspond with the investment grade credit sector of the United States bond market as defined by the Barclays Capital U.S. Credit Bond Index. SPDR LEHMAN HIGH YIELD BOND FUND - The Fund seeks to track the Lehman Brothers High Yield Very Liquid index and normally invests at least 80% of total assets in securities that comprise its benchmark index. ISHARES IBOXX $ HIGH YIELD CORPORATE BOND - This Fund seeks investment results that correspond generally to the price and yield performance of the U.S. dollar high yield corporate bond market as defined by the iBoxx $ Liquid High Yield Index. U.S. TREASURY NOTES/BONDS 10 5/8% DUE 8/15/2015 - U.S. TREASURY NOTES 4 1/4% DUE 11/15/2017 - VANGUARD TOTAL BOND INDEX - This fund seeks to track the performance of a broad, market-weighted bond index. FNCL 5% DUE 2/1/2040 - ISHARES LEHMAN AGGREGATE BOND - This Fund seeks investment results that correspond with the U.S. Bond Market. ISHARES BARCLAYS INTERMEDIATE CREDIT - The fund seeks results that correspond to the price and yield performance of the Barclays Capital U.S. Intermediate Credit Bond Index.

Investors should carefully consider the investment objectives, risks, charges and expenses of the AdvisorOne Funds. Other fees and expenses do apply to a continued investment in the fund. This and other information about AdvisorOne Funds is contained in the prospectus, which can be obtained by calling (866) 811-0225 and should be read carefully before investing.
The AdvisorOne Funds are distributed by Northern Lights Distributors, LLC Member SIPC
©2007 AdvisorOne Funds. All rights reserved. Contact us at (866) 811-0225.
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Information provided at advisoronefunds.com is intended only for persons who are eligible to purchase U.S.-registered investment funds. Investments are not FDIC-insured nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money. For more complete information about any of the AdvisorOne Funds, risks, charges and expenses, please obtain the applicable prospectus. Please read it carefully before you invest or send money. Maintain.

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