Horizon Active Risk Assist Fund

Fund Description

Investment Objective: The Horizon Active Risk Assist® Fund (the “Fund”) seeks to capture the majority of returns associated with equity market investments, while mitigating downside risk through use of a risk overlay strategy.

The Fund provides global equity exposure and includes a risk mitigation strategy intended to guard against large declines in the Fund's investment portfolio.
The Fund is managed using a multi-disciplined global asset allocation strategy (primarily implemented with Exchange-Traded Funds (ETFs)), coupled with Horizon’s risk mitigation component (Risk Assist®), which is designed to mitigate downside risk. The risk mitigation component is engaged when volatility and other market conditions move from what Horizon considers to be “normal” to “abnormal,” and where processes such as asset allocation and diversification may be, in the view of Horizon, insufficient to mitigate from unrecoverable loss. In these “abnormal” environments, the Risk Assist methodology moves assets from equities exposure to defensive securities exposure in an effort to mitigate against large declines in the value of the Fund. Conversely, Risk Assist will generally not be engaged during an atmosphere of normal volatility and rising markets, in an attempt to avoid missing out on upside opportunity. Risk Assist is not a timing strategy, however, as it does not forecast asset returns in any manner. It is not designed to “sell tops” or “buy bottoms”; rather it is designed to accomplish its specific risk management goal of mitigating drawdown. The Risk Assist program is run daily.

Aspects of This Active Fund

Opportunistic Strategy: The underlying primary investment strategy for the Fund is Horizon’s active asset allocation investment approach, which accesses a large universe of global investment opportunities, including market, style, sector, country and factor indexes.

Flexible Management: The Fund is actively managed, using flexible asset allocation techniques to navigate volatile market swings. Horizon’s goal is to capture upside price moves in rising markets and reduce downside risk when markets decline.

Risk Strategy: With the Risk Assist® strategy, Horizon continually measures market conditions with a specific focus on characteristics that indicate abnormal or severe risk conditions in order to apply a proprietary process that prompts a risk reduction of the portfolio. Horizon executes this strategy by investing up to 100% of the Fund in Treasury-related securities. The Risk Assist® strategy is designed to help guard investors from catastrophic market events and maximum drawdowns. The objective is to remain fully invested for as much time as possible and to hedge only when necessary.