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

Balanced Income

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.