CHARLOTTE, N.C.--(BUSINESS WIRE)--Horizon Investments, an investment management firm, today announced that the Horizon Active Asset Allocation N Fund (AAANX) has received the prestigious five-star Morningstar Rating™*.
As of January 31, 2015, the Horizon fund’s three-year risk-adjusted performance ranked within the top funds of the Morningstar Tactical Allocation category, which includes 197 funds. The category has grown rapidly over the last several years, with more than 300 funds now included by Morningstar.
Introduced on January 31, 2012, AAANX seeks to achieve equity-like performance while attempting to manage risk. The fund is managed using a multi-disciplined global asset allocation strategy that utilizes exchange-traded funds (ETFs) to implement its objectives. “What ETFs have allowed us to do is to efficiently transact around the world - including different market capitalizations, investment styles, sectors, countries, commodities, and currencies,” Robbie Cannon, Horizon’s CEO & President said. “What we wanted to do was couple our proprietary Economic, Quantitative and Fundamental (EQF) analysis with a flexible investment vehicle like ETFs to create a cutting edge strategy,” Robbie continued.
There are currently over 1661 ETFs in 540 different investable segments. By employing an active asset allocation strategy, the fund seeks to navigate volatile market swings, capture upside price moves in rising markets and reduce downside risk when markets decline.
“We introduced the Horizon Active Asset Allocation Fund to give advisors and investors a simple way to invest in our Economic, Quantitative and Fundamental strategy through an actively managed, open-end mutual fund,” said Ron Saba, CIO at Horizon Investments. “Over the last several years we’ve seen a number of new competitors enter this category. We are extremely pleased to have achieved this five-star rating for the fund on its third anniversary.”
In addition to AAANX, Horizon Investments sponsors the Horizon Active Income Fund (AIMNX) and the Horizon Active Risk Assist® Fund (ARANX).
About Horizon Investments
Founded in 1995, Horizon Investments, LLC is an investment management firm that employs a multi-disciplined tactical approach, seeking opportunities in the global market to help advisors and investors reach their goals. Our objective is to provide investment strategies that seek to help investors gain, protect, and spend their assets effectively in all stages of life. We provide asset management to clients ranging from the largest institutions to highly successful independent advisors.
For more information on Horizon Investments, please visit www.horizoninvestments.com.
* For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Horizon Active Asset Allocation N Fund (AAANX) was rated against the following numbers of U.S.-domiciled Tactical Allocation funds over the following time periods: 197 funds in the last three years, 11 funds in the last five years, and 54 funds in the last ten years. With respect to these Tactical Allocation funds, AAANX received a Morningstar Rating of 5 stars for the three-year period. Past performance is no guarantee of future results.
© 2015 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Investing in commodity-linked ETFs may subject the Fund to greater volatility than investments in traditional securities. Commodity prices may be influenced by unfavorable weather, animal and plant disease, geologic and environmental factors as well as changes in government regulation.
When ETFs invest in bonds, the value of your investment in the Fund will fluctuate with changes in interest rates. Longer-term bonds are generally more sensitive to interest rate changes than short-term bonds and therefore may carry more risk. Issuers of fixed-income securities may default on interest and principal payments. Generally, securities with lower debt ratings (“junk bonds”) have greater credit risk.
You will indirectly pay fees and expenses charged by the ETFs in addition to the Fund’s direct fees and expenses. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in ETF shares and may be higher than other mutual funds that invest directly in stocks and bonds. Each ETF is subject to specific risks, depending on the nature of the fund. These risks could include sector risk (increased risk from a focus on one or more sectors of the market), as well as risks associated with fixed income securities, foreign currencies and commodities.
Foreign currency-linked ETFs risks include market risk, credit risk and country risk. Market risk results from adverse changes in exchange rates in the currencies in which the ETF is long or short. Credit risk results because a currency-trade counter party may default. Country risk arises because a government may interfere with transactions in its currency.
Foreign securities may be riskier than U.S. investments because of factors such as unstable international political and economic conditions, currency fluctuations, foreign controls on investment and currency exchange, withholding taxes, a lack of adequate company information, less liquid and more volatile markets, and a lack of governmental regulation. Foreign companies generally are not subject to accounting, auditing, and financial reporting standards comparable to those applicable to U.S. companies. Transaction costs and costs associated with custody services are generally higher for foreign securities than they are for U.S. securities. Sovereign issuers may lack sufficient revenue to repay debts or may repudiate debts despite an ability to repay.
In addition to the risks generally associated with investing in securities of foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues.
The Fund engages in hedging or investment activities by investing in inverse ETFs. Inverse ETFs may employ leverage, which magnifies the changes in the underlying index upon which they are based. Any strategy that includes inverse securities could cause the Fund to suffer significant losses.
Certain ETFs employ leverage which may cause the Fund’s return to be more volatile than if the Fund had not been leveraged through ETFs. Leveraging tends to exaggerate the effect of any increase or decrease in the value of an ETF’s portfolio securities or instruments.
Real estate values rise and fall in response to a variety of factors, including local, regional and national economic conditions, interest rates and tax considerations. REIT performance depends on the types and locations of the rental properties it owns and on how well it manages those properties.
Investors should carefully consider the investment, objectives, risks, charges and expenses of the Horizon Funds. This and other important information about the Funds are contained in the prospectus, which can be obtained by calling 866-371-2399. The prospectus should be read carefully before investing. The Horizon Funds are distributed by Northern Lights Distributors, LLC Member FINRA/SIPC. Northern Lights Distributors, LLC is not affiliated with Horizon Investments, LLC.