AdvisorOne CLS Global Aggressive Equity Fund Class N (CLACX)

Overview

The described investment vehicle aims for long-term growth primarily through investing in a mix of exchange-traded funds (ETFs), other open-end mutual funds, and closed-end funds. Its investment approach is geared towards capital growth, focusing on equities or securities that are convertible into common stocks, such as convertible preferred stocks, convertible debentures, or warrants. This includes investments in the stocks of foreign issuers. Under normal market conditions, the fund commits at least 80% of its assets—which include net assets in addition to any borrowed amounts for investment purposes—towards equity securities, illustrating a strong orientation towards stock-based investments for growth.

Products and Services

The fund's strategy encompasses a diversified approach to achieving long-term capital growth, primarily through investing in a variety of financial instruments. Below is a detailed explanation of its main investment vehicles:

• Exchange-Traded Funds (ETFs): These are funds that trade on stock exchanges, similar to individual stocks. ETFs hold assets such as stocks, commodities, or bonds, and generally operate with an arbitrage mechanism designed to keep it trading close to its net asset value, though deviations can occur. This fund invests in ETFs as a way to gain exposure to a diversified portfolio of stocks or other asset classes in an efficient manner.
• Open-End Mutual Funds: Unlike ETFs, these funds do not trade on an exchange but are purchased directly from the fund company or through brokers. Open-end mutual funds are characterized by their ability to issue and redeem shares at any time based on the current net asset value. Investing in these allows the fund to tap into a wide range of assets and management strategies to enhance growth prospects.
• Closed-End Funds: These funds have a fixed number of shares issued to the public through an initial public offering (IPO). After the IPO, shares of closed-end funds trade on a stock exchange. The fixed share amount means these shares can trade at prices above or below the net asset value of the fund's holdings. Investments in closed-end funds can offer the opportunity for capital growth through market price fluctuations and portfolio performance.
• Securities Convertible Into Common Stock: This category includes convertible preferred stocks, convertible debentures, or warrants, which can be converted into or exchanged for common stock. Investing in convertible securities provides a means for potential growth by capitalizing on the option to convert into equity at beneficial terms, alongside possible income from dividends or interest payments before conversion.
• Stock of Foreign Issuers: The inclusion of foreign issuer stocks allows the fund to diversify beyond domestic markets and participate in the growth of companies worldwide. This broadens the investment landscape and introduces the potential for higher returns, albeit with increased risks such as political and currency fluctuation risks.