Investors

No investor can escape market volatility. With the help of an investment advisor, and Horizon Investments’ Principal Protection, every investor may have a much better chance of weathering it.

Of course, you’re aware of how volatile the markets can be; however, your success depends on investing choices based on facts, not fear. It’s just as important to resist pulling everything out of the market during uncertain times as it is to protect your principal investment. Horizon Investments has an investment strategy designed with the goal of addressing volatility.

To help protect your portfolio from the dynamic nature of risk, Horizon Investments has created Principal Protection. Our unique process includes the use of volatility modeling algorithms and a series of trigger levels that generate signals to reallocate assets based on the value of an investor’s portfolio.

Objective

If the market suffers a severe downturn, Principal Protection switches an investor’s portfolio to U.S. Treasury notes and reinvests as soon as the market rebounds.

The main objective of Principal Protection is to return, at a minimum, an investor’s initial principal, minus any fees and withdrawals, at the end of a 7-year period. The goal is full liquidity at any time during the current market value of the portfolio, with no early-termination fees.

Disclosures

Principal Protection is NOT A GUARANTEE against loss or declines in the value of your portfolio, it is an investment strategy which systematically invests assets in a portfolio of highly rated fixed income products based on Horizon’s view of market conditions. Horizon’s asset allocation models are subject to risk including, general market risk, currency fluctuations, and economic conditions. Future returns are not guaranteed, and a loss of original capital may occur. Principal Protection (“Protection”) is an overlay strategy that seeks, for a fee, to protect the initial value of an account. The strategy seeks to protect the account value such that, at the end of the protection period (currently set at 7 years from enrollment), the market value is greater than or equal to the initial enrollment value (“protected value”) less fees and withdrawals. This is done by allocating between the account’s portfolio model and a particular US Treasury zero-coupon bond that matures at the end of the protection period. Accounts with protection are not fully protected against all loss, and when the account is in treasuries it may not be fully invested in the underlying model, and during periods of strong market growth may underperform accounts which do not have the Protection feature.

Horizon is not soliciting any action based on this document. This document does not constitute an offer to sell or a solicitation of an offer to buy any security or product and may not be relied upon in connection with the purchase or sale of any security or product. Any purchase or sale must be made solely pursuant to a final offering memorandum to qualified investors, accredited investors, or qualified purchasers.

This document does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any investment you should consider whether the model, strategy or any security or product in question is suitable for your particular circumstances. You should seek independent professional advice before acting on any investment.

The products discussed herein are subject to risk including (but not limited to), general market risk, currency fluctuations, acts of God, and economic conditions. Investors in securities or products with values influenced by foreign currencies effectively assume currency risk because foreign currency denominated securities and products are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of, or income derived from, such investments.

Past performance is never a guarantee of future results. All investments fluctuate in price and can be sold at a price lower than the purchase price. Actual performance of any fund or product discussed herein and actual performance of any individual investor invested in a fund or product may be materially lower than represented. Future returns are not guaranteed, and a loss of some or all original capital may occur. Horizon does not provide tax advice to its clients, and all investors are strongly advised to consult with their tax advisers regarding any potential investment. Certain transactions give rise to substantial risk and are not suitable for all investors. The investments recommended by Horizon are neither insured nor guaranteed by any Government, private entity or Governmental agency. There can be economic times where all investments are unfavorable and depreciate in value. Investments offering the potential for higher rates of return also involve a higher degree of risk.

Horizon, its affiliates, officers, directors, partners and/or other associated persons can own, hold options, rights or warrants to purchase some of the securities or assets mentioned in this presentation, or close equivalents. Even if Horizon does not currently hold the asset, it may in the future. Horizon may elect to buy or sell these assets or change its opinion without regard to this presentation, and without prior notice.

Opinions, if any, expressed herein are our opinions as of the date of this document. We do not intend to and will not endeavor to update the information discussed in this document. No part of this document may be (i) copied, photocopied, or duplicated in any form by any means, or (ii) redistributed without Horizon’s prior written consent.

What You Should Know

+ The main objective is to return, at a minimum, an investor’s initial principal, minus any fees and withdrawals, at the end of a 7-year period.

+ The goal is full liquidity at any time during the current market value of the portfolio, with no early-termination fees. However, early liquidation may result in a loss of principal. Principal Protection value will also be less any withdrawals and fees.

+ Upon inception and at any future ratchet to attempt to protect higher account values, there is no allocation to the hedge securities (treasuries).

+ The strategy does not hedge using derivatives or leverage in any way.