Horizon Equity Premium Income Fund
The investment objective of the Horizon Equity Premium Income Fund (the “Equity Premium Income Fund”) is capital appreciation and current income.
Strategy: The Fund invests in equity securities of dividend-paying U.S. large-capitalization companies and sells index call options on broad-based securities indices (including, without limitation, the S&P 500).
Equity Portfolio: The underlying equity portfolio uses a flexible approach that combines active management with quantitative models to select primarily dividend-paying securities with attractive fundamentals, including high profitability, stable earnings, reasonable valuations, and positive price trends. Industry and holdings constraints are also used to seek sufficient diversification and mitigate active risk.
Option Overlay: The option overlay follows a systematic approach by selling call options on broad-based securities indices (including, without limitation, the S&P 500). Under normal circumstances, option exposure is expected to cover only a portion of the Fund’s value to balance the tradeoffs between downside risk mitigation and capped upside. The option premiums received generate additional cash flow that may buffer volatility in stable, falling, or slightly rising markets.
Reasons to Consider this Fund
The Fund seeks to offer current income without the cyclicality and sector concentration associated with some higher-yielding fixed income and equity dividend strategies.
Differentiated Source of Return
The Fund seeks to offer a differentiated source of return through the sale of index call options that may outperform strategies without this option overlay during stable, falling, or slightly rising markets.
Modest Defensive Structure
Using a systematic approach tilting toward higher-quality dividend-paying securities with a covered call overlay on a portion of the fund’s value results in a strategy with a modest and consistent defensive tilt.
|Share Classes||Ticker||CUSIP||Inception||Expense Ratio|
|Advisor Class||HADUX||44053A820||Jun 20, 2017||1.29%|
|Investor Class||HNDDX||44053A861||Dec 28, 2016||1.13%|
|Class||Advisor Class||Investor Class|
|Inception||Jun 20, 2017||Dec 28, 2016|
Monthly (as of TBD)
Quarterly (as of TBD)
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.
Holdings data as of TBD.
Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.
Mutual fund investing involves risk. Principal loss is possible. Past dividend payments are not a guarantee of future dividend payments. The Fund may invest in foreign securities and ADRs which involve political, economic and currency risks, greater volatility and differences in accounting methods. The Fund may also use options, which have the risks of unlimited losses of the underlying holdings due to unanticipated market movements and failure to correctly predict the direction of securities prices, interest rates and currency exchange rates. The investment in options is not suitable for all investors.