An approach to balancing capital appreciation and capital preservation.
Investment Objective: The Defined Risk Fund seeks capital appreciation and capital preservation.
Strategy: The Fund aims to invest in a diversified portfolio of domestic equity securities, which may include Exchange-Traded Funds (ETFs), while seeking to generate income, hedge volatility and reduce downside risk by buying and selling put and call options. Horizon Investments, the investment adviser for the Fund (the “Adviser”), expects that the combination of the returns from the equity portfolio and the cash flow, reduced volatility and downside protection from the options portfolio will provide the Fund with the potential to capture a majority of the returns associated with the general equity markets with reduced risk and volatility.
The purchase of a put option on a security, while incurring an expense, may act to limit the Fund’s exposure to declines in equity market prices over the duration of the contract. The sale of a call option on the same security will generate income for the Fund while limiting the ability to benefit from increases in equity market prices over the length of the contract.
Disciplined Selection - Equity securities are selected to provide efficient exposure to large-cap U.S. stocks. ETFs may be utilized to gain strategic exposure to a specific sector or market segment.
Options Strategy - By writing a call and purchasing a put, or put spread, on a broad-based index, the Adviser may seek to create an options “collar” that limits the likely range of returns for that position. The purchase of a put option on a security limits the Fund’s downside exposure over the duration of the contract. The sale of a call option generates income for the Fund and helps offset the cost of the put option while limiting the ability to benefit from increases.
Active Management - The Adviser may increase its use of options collars when the manager’s research indicates the market is likely to experience increased volatility.
|Share Classes||Ticker||CUSIP||Inception||Gross Expense Ratio||Net Expense Ratio|
|Advisor Class||HADRX||44053A838||Feb 2, 2018||2.10%||1.19%|
|Investor Class||HNDRX||44053A846||Dec 28, 2017||2.28%||1.04%|
|Class||Advisor Class||Investor Class|
|Inception||Feb 2, 2018||Dec 28, 2017|
|Gross Exp Ratio||2.10%||2.28%|
|Net Exp Ratio||1.19%||1.04%|
The Fund's investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until March 31, 2020. The net expense ratio represents what investors have paid as of November 30, 2018, and includes acquired fund fees and expenses.
Performance data as of.
Inception date for the table above is per share class; all returns greater than one year are presented as annualized returns. Inception dates for share classes can be found in the Fund Facts table above. Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 866-371-2399.
Mutual fund investing involves risk. Principal loss is possible. By investing in the Fund, you will indirectly bear your share of any fees and expenses charged by the underlying funds, in addition to indirectly bearing the principal risks of the funds. The fund also invests in ETFs. They are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a discount to its net asset value ("NAV"), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact the Fund's ability to sell its shares. Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods. The Fund is new with no operating history and there can be no assurance that the Fund will grow to or maintain an economically viable size, in which case the Trust’s Board of Trustees (“Board of Trustees”) may determine to liquidate the Fund. The Fund may use options and which have the risks of unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of the securities prices, interest rates and currency exchange rates. This investment may not be suitable for all investors. Investments in small and mid-capitalization companies involve additional risk such as limited liquidity and greater volatility than larger capitalization companies. There is no guarantee that the Funds' objectives will be achieved. The strategy of writing call options limits the Fund's ability to profit from increases in the value of its equity portfolio.