Horizon ESG Defensive Core Fund

Fund Description

Investment Objective: The Horizon ESG Defensive Core Fund (the “Fund”) seeks long-term growth of capital, current income and growth of income, while mitigating downside risk through use of a risk overlay strategy.

The Fund seeks to achieve its investment objective by investing in U.S. large-cap stocks screened by the Fund’s investment sub-adviser, DWS Investment Management Americas, Inc. (“DIMA”), with regard to certain environmental, social and corporate governance impact (“ESG”) criteria.

Aspects of this Active Fund

ESG Screening. To determine the securities in which the Fund will invest, DIMA initially evaluates an issuer’s performance across certain ESG criteria (outlined below), and then summarizes this evaluation in a proprietary ESG rating which is calculated by DWS International GmbH, an affiliate of DIMA, on the basis of data obtained from various ESG data providers. In general, issuers with an ESG rating above a minimum threshold determined by DIMA are considered for investment by the ESG Fund. When determining the proprietary ESG rating for each issuer, DIMA considers multiple factors, including:

  • Level of involvement in controversial sectors and weapons;
  • Adherence to corporate governance principles (including, but not limited to: composition, effectiveness and independence of the board of directors; remuneration; and relations with shareholders, including shareholder voting rights);
  • ESG rating relative to a peer group of issuers; and
  • Efforts to meet the United Nations’ Sustainable Development Goals, which are focused on ending poverty and other deprivations by improving health and education, reducing inequality, and spurring economic growth concurrently with addressing climate change and the preservation of oceans and forests.

Equity Selection. In choosing stocks for the Fund, DIMAuses proprietary quantitative models to identify holdings. The quantitative models are research -based and identify primarily fundamental factors, including valuation, momentum, profitability, earnings, and sales growth, which have historically been effective sources of return. The Fund’s portfolio is constructed based on this quantitative process that strives to maximize returns while maintaining a risk profile similar to a traditional large cap index.

Risk 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.


Fund Facts

Share Classes Ticker CUSIP Inception Gross Expense Ratio Net Expense Ratio
Advisor Class HESAX 44053A762 January 8, 2020 4.57% 1.20%
Investor Class HESGX 44053A747 December 26, 2019 6.25% 1.05%
Class Advisor Class Investor Class
Ticker HESAX HESGX
CUSIP 44053A762 44053A747
Inception January 8, 2020 December 26, 2019
Gross Exp Ratio 4.57% 6.25%
Net Exp Ratio 1.20% 1.05%

The ESG Fund’s investment adviser has contractually agreed to waive its fees and reimburse expenses of the ESG Fund, at least until December 31, 2022.


Performance

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Quarterly (as of TBD)
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 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.
    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.