Horizon Defensive Core Fund
Name
As of 05/03/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Vitals
YTD Return
8.1%
1 yr return
29.1%
3 Yr Avg Return
7.4%
5 Yr Avg Return
N/A
Net Assets
$247 M
Holdings in Top 10
39.4%
52 WEEK LOW AND HIGH
Expenses
OPERATING FEES
Expense Ratio 1.14%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 29.00%
Redemption Fee N/A
Min Investment
Standard (Taxable)
$2,500
IRA
N/A
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 05/03/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
HESAX - Profile
Distributions
- YTD Total Return 8.1%
- 3 Yr Annualized Total Return 7.4%
- 5 Yr Annualized Total Return N/A
- Capital Gain Distribution Frequency N/A
- Net Income Ratio 0.19%
- Dividend Yield 0.4%
- Dividend Distribution Frequency Annual
Fund Details
-
Legal NameHorizon Defensive Core Fund
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Fund Family NameHorizon Funds
-
Inception DateDec 26, 2019
-
Shares Outstanding900997
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Share ClassAdv
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CurrencyUSD
-
Domiciled CountryUS
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ManagerPankaj Bhatnagar
Fund Description
The Defensive Core Fund seeks to achieve its investment objective by utilizing two strategies: (1) the ESG Strategy; and (2) the Risk Assist® Strategy. The ESG Strategy seeks to track the performance of the MSCI USA ESG Leaders Index (the “Index”), while the Risk Assist® Strategy is an actively managed risk reduction strategy intended to guard against large declines in the Fund’s equity portfolio. Horizon will determine how to allocate the Defensive Core Fund’s assets between the ESG Strategy and the Risk Assist® Strategy. Under normal circumstances, substantially all (at least 80%) of the value of Fund’s net assets will be invested in a combination of equity securities included in the Index and Defensive Investments (as defined below).
ESG Strategy. The ESG Strategy seeks to track the performance of the Index. The Index is a capitalization weighted index that provides exposure to companies with high Environmental, Social and Governance (ESG) performance relative to their sector peers. The Index consists of large and mid-capitalization companies in the US market. The Index uses MSCI ESG Ratings, MSCI ESG Controversies and MSCI Business Involvement Screening Research, each of which is provided by MSCI ESG Research Inc., a subsidiary of MSCI, Inc. (the “Index Provider”) to determine the securities that comprise the Index.
• | MSCI ESG Ratings provides research, analysis and ratings of how well companies manage their ESG risks and opportunities. MSCI ESG Ratings provides a company with an overall ESG rating on a seven point scale, from ‘AAA’ to ‘CCC.’ |
• | MSCI ESG Controversies provides assessments of controversies concerning the negative environmental, social, and/or governance impact of company operations, products and services. MSCI ESG Controversies Score falls on a 0-10 scale, with “0” being the most severe controversy. |
• | MSCI ESG Business Involvement Screening Research (MSCI ESG BISR) screens companies for involvement in specific business activities which have high potential for negative social and/or environmental impact, such as alcohol, gambling, tobacco, nuclear power, fossil fuel extraction, thermal coal power, conventional weapons, nuclear weapons, controversial weapons and civilian firearms, are ineligible for inclusion. |
Companies that are not existing constituents of the Index must have an MSCI ESG Rating of ‘BB’ or above and an MSCI ESG Controversies Score of 3 or above to be eligible. Current constituents of the Index must have an MSCI ESG Rating of ‘BB’ or above and an MSCI ESG Controversies Score of 1 or above to be eligible. In addition, companies showing qualifying involvement in alcohol, gambling, tobacco, nuclear power, civilian firearms, fossil fuels extraction, thermal coal power and weapons based on the MSCI ESG BISR are excluded from the Index. The final Index is constructed by selecting, from the screened securities, the highest ESG rated companies by sector, targeting a representation of 50% market capitalization of each sector. The Index Provider conducts a quarterly review to ensure that all securities represented in the Index continue to meet the applicable ESG standards. The Index is also rebalanced quarterly. The Defensive Core Fund generally rebalances its portfolio in accordance with the Index. The Defensive Core Fund expects to invest in equity securities included in the Index in weightings that approximate the relative composition of the securities contained in the Index. However, the Defensive Core Fund has adopted a fundamental investment policy not to concentrate its investments in a particular industry or group of industries, therefore to the extent the Index is concentrated, the Defensive Core Fund will deviate from the composition of the Index.
Risk Assist® Strategy. Under the Risk Assist® strategy, Horizon continually measures market conditions with a specific focus on characteristics that indicate abnormal or severe risk conditions (such as increases in market volatility and decreases in global equity markets), in order to apply a proprietary process that prompts a risk reduction of the portfolio. The Defensive Core Fund typically executes this strategy by investing up to 100% of the Defensive Core Fund’s portfolio in U.S. Treasuries or other cash equivalents, which may include, without limitation, U.S. Treasury-focused securities, which may include, without limitation, Treasury bonds, Treasury notes, Treasury Inflated Protection Securities (collectively, “U.S. Treasury Securities”); exchange traded options on U.S. Treasury Securities; repurchase agreements fully collateralized by U.S. Treasury Securities; and money market instruments, including obligations of U.S. and foreign banks, corporate obligations, U.S. government securities, municipal securities, repurchase agreements and asset-backed securities, paying a fixed, variable or floating interest rate (collectively, “Cash Equivalents”); or money market funds or ETFs that invest in Cash Equivalents (collectively “Defensive Investments”). The Defensive Core Fund may invest in U.S. Treasury Securities without regard to maturity or duration.
Although Horizon may elect to allocate 100% of the Defensive Core Fund’s assets to the Risk Assist® strategy, it is not required to. Instead, Horizon employs the Risk Assist® strategy in stages, and Horizon may elect to allocate between 0% and 100% of the Defensive Core Fund’s assets to the Risk Assist® strategy, depending on Horizon’s determination of current market risk.
The Risk Assist® algorithm includes a process by which it systematically attempts to protect investment gains within the portfolio based on Horizon’s measures of perceived risk. The result of this process is referred to as a “ratchet”. To implement the ratchet, Horizon first determines the lowest portfolio value that the algorithm is calculated to accommodate during any 12-month period. As the Risk Assist® strategy portfolio value grows (typically when the portfolio has experienced 3-5% of appreciation, depending on market conditions), the Risk Assist® algorithm will increase (i.e., “ratchet” up) the value of the loss tolerance limit in an attempt to protect those gains.
HESAX - Performance
Return Ranking - Trailing
Period | HESAX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 8.1% | -2.6% | 11.5% | 29.47% |
1 Yr | 29.1% | -0.6% | 47.0% | 22.38% |
3 Yr | 7.4%* | -13.0% | 13.9% | 48.98% |
5 Yr | N/A* | -9.6% | 105.8% | N/A |
10 Yr | N/A* | -0.3% | 20.4% | N/A |
* Annualized
Return Ranking - Calendar
Period | HESAX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 22.7% | -42.6% | 47.4% | 27.86% |
2022 | -19.2% | -56.3% | -4.2% | 26.37% |
2021 | 24.2% | -27.2% | 53.7% | 18.05% |
2020 | N/A | -36.2% | 2181.7% | N/A |
2019 | N/A | -22.7% | 40.4% | N/A |
Total Return Ranking - Trailing
Period | HESAX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 8.1% | -2.6% | 11.5% | 29.47% |
1 Yr | 29.1% | -0.6% | 47.0% | 22.38% |
3 Yr | 7.4%* | -13.0% | 13.9% | 48.98% |
5 Yr | N/A* | -9.6% | 105.8% | N/A |
10 Yr | N/A* | -0.3% | 20.4% | N/A |
* Annualized
Total Return Ranking - Calendar
Period | HESAX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 23.3% | -5.0% | 47.4% | 55.32% |
2022 | -18.9% | -36.8% | -2.2% | 64.44% |
2021 | 27.2% | 3.0% | 124.3% | 43.72% |
2020 | N/A | -15.8% | 2266.0% | N/A |
2019 | N/A | -0.4% | 241.3% | N/A |
NAV & Total Return History
HESAX - Holdings
Concentration Analysis
HESAX | Category Low | Category High | HESAX % Rank | |
---|---|---|---|---|
Net Assets | 247 M | 2.34 M | 1.55 T | 77.72% |
Number of Holdings | 285 | 2 | 4048 | 27.32% |
Net Assets in Top 10 | 110 M | 885 K | 387 B | 74.92% |
Weighting of Top 10 | 39.35% | 0.3% | 112.0% | 25.26% |
Top 10 Holdings
- Microsoft Corp 12.42%
- NVIDIA Corp 8.37%
- Alphabet Inc 3.50%
- Alphabet Inc 3.11%
- Eli Lilly Co 2.59%
- Tesla Inc 2.46%
- Visa Inc 1.93%
- Mastercard Inc 1.70%
- Johnson Johnson 1.66%
- Home Depot Inc/The 1.62%
Asset Allocation
Weighting | Return Low | Return High | HESAX % Rank | |
---|---|---|---|---|
Stocks | 98.42% | 0.00% | 124.03% | 63.50% |
Cash | 1.58% | 0.00% | 99.06% | 37.06% |
Preferred Stocks | 0.00% | 0.00% | 2.38% | 16.61% |
Other | 0.00% | -13.91% | 100.00% | 45.37% |
Convertible Bonds | 0.00% | 0.00% | 5.54% | 12.02% |
Bonds | 0.00% | -0.37% | 93.78% | 17.09% |
Stock Sector Breakdown
Weighting | Return Low | Return High | HESAX % Rank | |
---|---|---|---|---|
Technology | 28.01% | 0.00% | 48.94% | 10.65% |
Healthcare | 13.93% | 0.00% | 60.70% | 65.77% |
Financial Services | 11.26% | 0.00% | 55.59% | 87.24% |
Consumer Cyclical | 11.08% | 0.00% | 30.33% | 38.86% |
Communication Services | 9.82% | 0.00% | 27.94% | 20.00% |
Industrials | 9.39% | 0.00% | 29.90% | 46.18% |
Consumer Defense | 5.41% | 0.00% | 47.71% | 80.73% |
Energy | 3.43% | 0.00% | 41.64% | 64.55% |
Real Estate | 3.12% | 0.00% | 31.91% | 33.01% |
Basic Materials | 2.77% | 0.00% | 25.70% | 41.54% |
Utilities | 1.78% | 0.00% | 20.91% | 71.14% |
Stock Geographic Breakdown
Weighting | Return Low | Return High | HESAX % Rank | |
---|---|---|---|---|
US | 98.42% | 0.00% | 124.03% | 51.44% |
Non US | 0.00% | 0.00% | 62.81% | 30.59% |
HESAX - Expenses
Operational Fees
HESAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.14% | 0.01% | 19.75% | 28.86% |
Management Fee | 0.68% | 0.00% | 1.90% | 78.25% |
12b-1 Fee | 0.25% | 0.00% | 1.00% | 31.09% |
Administrative Fee | N/A | 0.00% | 0.85% | N/A |
Sales Fees
HESAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 1.00% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 5.00% | N/A |
Trading Fees
HESAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 0.25% | 2.00% | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
HESAX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 29.00% | 0.00% | 496.00% | 57.74% |
HESAX - Distributions
Dividend Yield Analysis
HESAX | Category Low | Category High | HESAX % Rank | |
---|---|---|---|---|
Dividend Yield | 0.44% | 0.00% | 25.93% | 79.42% |
Dividend Distribution Analysis
HESAX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Annual | Annually | Quarterly | Annual |
Net Income Ratio Analysis
HESAX | Category Low | Category High | HESAX % Rank | |
---|---|---|---|---|
Net Income Ratio | 0.19% | -54.00% | 6.06% | 76.84% |
Capital Gain Distribution Analysis
HESAX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually |
Distributions History
Date | Amount | Type |
---|---|---|
Dec 21, 2023 | $0.172 | OrdinaryDividend |
Dec 22, 2022 | $0.105 | OrdinaryDividend |
Dec 27, 2021 | $0.891 | OrdinaryDividend |
HESAX - Fund Manager Analysis
Managers
Pankaj Bhatnagar
Start Date
Tenure
Tenure Rank
Dec 27, 2019
2.43
2.4%
Pankaj Bhatnagar, PhD, Head of Investment Strategy Equity. ■Joined DWS in 2000 with seven years of industry experience; previously, served in Quantitative Strategy roles at Nomura Securities, Credit Suisse and Salomon Brothers. ■Head of Core Equity and Head of Systematic and Quantitative Management: Americas. ■Degree in Civil Engineering, Indian Institute of Technology; MBA, Kent State University; PhD in Finance, University of North Carolina at Chapel Hill.
Scott Ladner
Start Date
Tenure
Tenure Rank
Dec 27, 2019
2.43
2.4%
Mr. Ladner serves as Chief Investment Officer and is the Chair of the Investment Committee for Horizon. In these capacities, he oversees all aspects of the Investment Management division for the firm. He also provides the Investment Management division with Macro analysis and interpretation of global derivatives, credit, foreign exchange, equity, and funding markets. His previous roles at Horizon included Head of Risk and Director of Quantitative & Alternative Strategies. Prior to Horizon, Mr. Ladner was a founder of Charlotte Global Advisors and Principal Guard, LLC. Mr. Ladner helped to launch an equity index volatility and dispersion trading unit at PEΔK6 Investments in Chicago, a proprietary listed option and volatility trading firm. Previously at First Union/Wachovia, Mr. Ladner founded and ran the equity swap and forwards portfolio while also managing equity option and volatility portfolios. He also co-founded and managed the Risk Arbitrage and Special Situations portfolio.Mr. Ladner then managed the swaption and cap/floor portion of the bank’s interest rate derivatives portfolio. Mr. Ladner received his BA in Economics and Russian Language & Literature from the University of North Carolina at Chapel Hill.
Michael Dickson
Start Date
Tenure
Tenure Rank
Dec 27, 2019
2.43
2.4%
Dr. Dickson serves as Head of Portfolio Management and in this role oversees all investment strategies managed by Horizon. He also conducts research on the development of quantitative methods and strategies that support Horizon’s investment process and new product development. His research is published in scholarly journals and he frequently speaks on these topics at industry conferences. In previous roles at Horizon, he served as Director of Structured Financial Solutions and as a portfolio manager with an emphasis on retirement income and protection strategies. Dr. Dickson specializes in the areas of empirical asset pricing, portfolio construction, and factor models. Both during and after his Ph.D. studies he taught undergraduate and graduate school coursework in finance and portfolio management at UNC Charlotte. Prior to earning his Ph.D. he worked in financial analysis support roles at Premier, Inc. and Global Compliance. Dr. Dickson received his BS in Chemistry from Winthrop University and both an MS in Economics and Ph.D. in Finance from UNC Charlotte.
Arno Puskar
Start Date
Tenure
Tenure Rank
Dec 27, 2019
2.43
2.4%
• Portfolio Manager for US Equities and Quantitative Analyst • BS in Industrial Engineering from Lehigh University; MBA from Pepperdine University
Hiten Shah
Start Date
Tenure
Tenure Rank
Mar 30, 2022
0.17
0.2%
Joined DWS in 2017 with 19 years of industry experience; previously, Senior Consultant at the firm with responsibility for the implementation of BlackRock's Aladdin platform in the US; Portfolio Manager for multi-asset portable alpha strategies at Oppenheimer Funds; Portfolio Manager for global macro and fixed income at various companies, including True North Partners, HSBC, Societe General and GE; and Analyst, Metlife Investments. BA in Economics, Rutgers University.
Tenure Analysis
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.04 | 39.02 | 7.27 | 2.42 |