Horizon ESG & Defensive Core Fund
Fund Description
Investment Objective: The investment objective of the Horizon ESG & Defensive Core Fund (the “ESG Defensive Fund”) is to seek to generate comparable returns, before fees and expenses, to an index that is designed to measure the performance of the large and mid-cap segments of the U.S. market and that screens companies with regards to certain ESG criteria for the equity portion of the Fund’s portfolio, while mitigating downside risk by allocating a portion of the Fund’s portfolio to a risk overlay strategy (the “Risk Assist® strategy”).
Aspects of this Fund
ESG Strategy + Risk Assist
The ESG Defensive Fund seeks to achieve its investment objective by utilizing two strategies: (1) the ESG strategy; and (2) the Risk Assist® strategy. The ESG strategy seeks to track the performance of the MSCI USA ESG Leaders Index (the “Index”), while the Risk Assist® Strategy is an actively managed risk reduction strategy intended to guard against large declines in the Fund’s equity portfolio. Horizon will determine how to allocate the ESG Defensive Fund’s assets between the ESG strategy and the Risk Assist® strategy. Under normal circumstances, substantially all (at least 80%) of the value of the Fund’s net assets will be invested in a combination of equity securities included in the Index and in defensive securities used for the Risk Assist strategy.
Under normal market conditions, The ESG Strategy seeks to invest in companies with high Environmental, Social, and Governance (ESG) performance relative to their sector peers. The Fund tracks the Index, which uses MSCI ESG Ratings, MSCI ESG Controversies, and MSCI Business Involvement Screening Research, each of which is provided by MSCI ESG Research Inc., a subsidiary of MSCI, Inc. (the “Index Provider”) to determine the securities that comprise the Index.
Equity Selection. The ESG Defensive Fund expects to invest in equity securities included in the Index in weightings that approximate the relative composition of the securities contained in the Index. The ESG Defensive Fund generally rebalances its portfolio quarterly in accordance with the Index. However, the ESG Defensive Fund has adopted a fundamental investment policy not to concentrate its investments in a particular industry or group of industries; therefore, to the extent the Index is concentrated, the ESG Defensive Fund will deviate from the composition of the Index.
Index Constituents. In choosing stocks for the Index, Companies that are not existing constituents of the Index must meet specific MSCI ESG rating requirements. In addition, companies showing qualifying involvement in alcohol, gambling, tobacco, nuclear power, civilian firearms, fossil fuels extraction, thermal coal power, and weapons based on the MSCI ESG BISR are excluded from the Index.
Risk Assist® Strategy: During periods of heightened market risk, the Fund is designed to mitigate downside risk through Risk Assist®, which is an active risk reduction strategy designed to guard against large declines in the Fund’s portfolio by investing up to 100% of the portfolio in U.S. Treasuries or other cash equivalents (or in securities that invest in the same).
Fund Facts
| Share Classes | Ticker | CUSIP | Inception | Gross Expense Ratio | Net Expense Ratio |
| Advisor Class | HESAX | 44053A762 | January 8, 2020 | - | 1.21% |
| Investor Class | HESGX | 44053A747 | December 26, 2019 | 1.07% | 1.06% |
| Class | Advisor Class | Investor Class | |||
| Ticker | HESAX | HESGX | |||
| CUSIP | 44053A762 | 44053A747 | |||
| Inception | January 8, 2020 | December 26, 2019 | |||
| Gross Exp Ratio | 1.28% | 1.09% | |||
| Net Exp Ratio | 1.20% | 1.06% |
The ESG Fund’s investment adviser has contractually agreed to waive its fees and reimburse expenses of the ESG Fund, at least until March 31, 2024.
Performance
Monthly (as of TBD)
| Class | 1-Mon | 3-Mon | YTD | 1-Yr | 3-Yr | 5-Yr | Inception |
|---|---|---|---|---|---|---|---|
| Advisor Class | - | - | - | - | - | - | - |
| Investor Class | - | - | - | - | - | - | - |
| Advisor Class | |
| 1-Month | - |
| 3-Month | - |
| YTD | - |
| 1-Year | - |
| 3-Year | - |
| 5-Year | - |
| Inception | - |
| Investor Class | |
| 1-Month | - |
| 3-Month | - |
| YTD | - |
| 1-Year | - |
| 3-Year | - |
| 5-Year | - |
| Inception | - |
Quarterly (as of TBD)
| Class | 1-Mon | 3-Mon | YTD | 1-Yr | 3-Yr | 5-Yr | Inception |
|---|---|---|---|---|---|---|---|
| Advisor Class | - | - | - | - | - | - | - |
| Investor Class | - | - | - | - | - | - | - |
| Advisor Class | |
| 1-Month | - |
| 3-Month | - |
| YTD | - |
| 1-Year | - |
| 3-Year | - |
| 5-Year | - |
| Inception | - |
| Investor Class | |
| 1-Month | - |
| 3-Month | - |
| YTD | - |
| 1-Year | - |
| 3-Year | - |
| 5-Year | - |
| Inception | - |
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 shown reflects contractual fee waivers. Without such waivers, total returns would be reduced.
Top Holdings
Holdings data as of TBD.
Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.
Disclosure
Mutual fund investing involves risk. Principal loss is possible. In addition to the costs, fees, and expenses involved in investing in ETFs, ETFs are subject to additional risks including the risks that the market price of the 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 a Fund's ability to sell its shares. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Applying the Fund's ESG investment criteria may result in the selection or exclusion of securities of certain issuers for reasons other than performance, and the Fund may underperform funds that do not utilize an ESG investment strategy. The application of this strategy may affect the Fund's exposure to certain companies, sectors, regions, countries or types of investments, which could negatively impact the Fund's performance depending on whether such investments are in or out of favor. Applying ESG criteria to investment decisions is qualitative and subjective by nature,and there is no guarantee that the criteria utilized by the Subadviser or any judgment exercised by the Subadviser will reflect the beliefs or values of any particular investor. A greater percentage of the Fund's holdings may be focused in a smaller number of securities which may place the Fund at greater risk than a more diversified fund.
MSCI USA ESG Leaders Index is a capitalization weighted index that provides exposure to companies with high Environmental, Social and Governance (ESG) performance relative to their sector peers. It is not possible to invest directly in an index.
MSCI ESG Ratings provides research, analysis and ratings of how well companies manage their ESG risks and opportunities. MSCI ESG Ratings provides a company with an overall ESG rating on a seven point scale, from ‘AAA’ to ‘CCC.’
MSCI ESG Controversies provides assessments of controversies concerning the negative environmental, social, and/or governance impact of company operations, products and services. MSCI ESG Controversies Score falls on a 0-10 scale, with “0” being the most severe controversy.
MSCI ESG Business Involvement Screening Research (MSCI ESG BISR) screens companies for involvement in specific business activities which have high potential for negative social and/or environmental impact, such as alcohol, gambling, tobacco, nuclear power, fossil fuel extraction, thermal coal power, conventional weapons, nuclear weapons, controversial weapons and civilian firearms, are ineligible for inclusion.
There can be no guarantee that the Risk Assist strategy, including the ratchet function, will be successful in preventing losses in the Fund’s portfolio. Because the Risk Assist strategy may be implemented in stages, the Fund may have market exposure during times when the Risk Assist strategy is being implemented. To the extent that the Risk Assist strategy is implemented, the Fund will likely not benefit from capital appreciation or income from the equity markets.