The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by utilizing its Core Bond Strategy and implementing its Options Strategy.

Core Bond Strategy: The Fund’s Core Bond Strategy invests primarily in investment grade, U.S. dollar-denominated, fixed-rate taxable bonds and fixed income instruments with similar characteristics. While the Fund may invest in any fixed income instruments, it expects to invest primarily in ETFs and options. There is no limitation on the maturity of fixed income instruments in which the Fund may invest.

The Fund’s investment adviser, Horizon Investments, LLC (“Horizon”), selects and weights fixed income instruments using a flexible approach that combines active management and quantitative models to allocate the Fund’s portfolio. The Fund’s strategy is driven by a systematic approach that evaluates measures of past return and risk to identify fixed income instruments determined by Horizon to exhibit favorable risk and return characteristics.

Under normal circumstances, the Core Bond Fund will invest at least 80% of the value of its net assets (plus any borrowings for investment purposes) in bonds and other fixed income instruments. For purposes of this policy, fixed income instruments means debt and debt-related securities, income producing securities, notes (including structured notes), loans, money market instruments, mortgage- and asset-backed securities, preferred stocks, and derivative instruments that provide exposure to or are otherwise related to such fixed income instruments, as well as other investment companies that invest primarily in these instruments.

The Fund may engage in frequent trading to achieve its objective and, depending on Horizon’s outlook and market conditions, may focus its investments in particular sectors or areas of the economy.

Options Strategy: The Fund may use options to manage risk or generate additional income by selling and purchasing put and call options on broad-based indices or ETFs that track such indices. Options purchased by the Fund will generally be exchange-traded, including Flexible Exchange Options (“FLEX Options”). FLEX Options are customizable exchange-traded option contracts guaranteed for settlement by the Options Clearing Corporation (the “OCC”) and allow customization of terms such as exercise price, exercise style, and expiration date.

As part of the Options Strategy, the Fund may engage in put spreads, which involve selling a put option on a portion of the portfolio and purchasing a put option with a lower strike price. This strategy aims to generate income from the premiums received on the sold put options while using the purchased put options to hedge against declines in the reference asset’s value. In stable or rising markets, the premiums received may exceed the cost of sold put options, allowing the strategy to outperform similar strategies that do not sell put options. In declining markets, the strategy may underperform; however, losses would be hedged below the strike price of the purchased put option.

The Fund may also buy or write put and call options on individual securities or indices for investment purposes, hedging, or generating additional income. These strategies may include covered call writing, cash-secured puts, or other collateralized options strategies. The Fund may also write options on securities it does not hold in its portfolio (i.e., “naked” options), which carry the potential for unlimited loss.

The Fund’s options strategies may involve other combinations, such as spreads, straddles, and collars. The Fund may also invest in other types of derivatives, including exchange-listed and over-the-counter futures. These strategies may limit upside potential or reduce downside risks but could incur implementation costs that affect overall returns. Horizon adjusts the use of derivatves based on its outlook for the bond and broader financial markets and responds to changing market conditions. Derivatives may be used as a substitute for making direct investments in underlying instruments, to reduce certain exposures, or to hedge against market volatility and other risks.