Horizon Equity Premium Income Fund
Name
As of 04/18/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Vitals
YTD Return
5.7%
1 yr return
11.4%
3 Yr Avg Return
3.5%
5 Yr Avg Return
4.7%
Net Assets
$98.3 M
Holdings in Top 10
28.1%
52 WEEK LOW AND HIGH
Expenses
OPERATING FEES
Expense Ratio 1.36%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 222.00%
Redemption Fee N/A
Min Investment
Standard (Taxable)
$2,500
IRA
N/A
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 04/18/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
HADUX - Profile
Distributions
- YTD Total Return 5.7%
- 3 Yr Annualized Total Return 3.5%
- 5 Yr Annualized Total Return 4.7%
- Capital Gain Distribution Frequency N/A
- Net Income Ratio 1.52%
- Dividend Yield 0.2%
- Dividend Distribution Frequency Quarterly
Fund Details
-
Legal NameHorizon Equity Premium Income Fund
-
Fund Family NameHorizon Funds
-
Inception DateDec 28, 2016
-
Shares Outstanding89427
-
Share ClassAdv
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerRonald Saba
Fund Description
The Equity Premium Income Fund’s investment adviser, Horizon Investments, LLC (“Horizon”), seeks to achieve the Equity Premium Income Fund’s investment objective primarily by investing in the equity securities of dividend-paying U.S. large-capitalization companies and selling call options on broad-based securities indices (including, without limitation, the S&P 500).
Under normal circumstances, the Equity Premium Income Fund will invest not less than 80% of the value of its net assets (plus the amount of borrowings for investment purposes) in equity securities. Equity securities include common and preferred stock, convertible debt securities, American Depositary Receipts (“ADRs”), and real estate investment trusts (“REITs”) and derivative instruments related thereto. The Equity Premium Income Fund may invest in the equity securities of companies of any size capitalization, although it expects to primarily invest in large capitalization companies. The Fund considers a large market capitalization company to be a company with a market capitalization within the range of one or more companies in the S&P 500 index at the time of purchase.
Dividend-Paying Securities. Horizon selects and weights securities using a flexible approach that combines active management with quantitative models to allocate the Equity Premium Income Fund’s portfolio primarily among dividend-paying securities that Horizon believes offer the opportunity for attractive potential return for a given amount of risk. Horizon defines “dividend-paying securities” as equity securities: (i) that have paid a dividend in the prior 12 calendar months; or (ii) that Horizon believes are reasonably likely to pay a dividend in the 12 calendar months following the Fund’s acquisition of the security. In selecting securities for the Equity Premium Income Fund’s portfolio, Horizon seeks to diversify across dividend-paying securities that have one or more attractive fundamentals, such as: high profitability and stable earnings; low price variability; low fundamental valuation measures; and positive price trends. Horizon may add to or modify the characteristics Horizon considers as economic, market and financial conditions change. In constructing the portfolio, Horizon may consider industry and position constraints to ensure sufficient diversification, as determined by Horizon. Depending on market conditions, the Equity Premium Income Fund may at times focus its investments in particular sectors or areas of the economy.
Options. The Equity Premium Income Fund seeks to generate additional cash flow, and may reduce volatility, through the sale of call options on broad-based securities indices (including, without limitation, the S&P 500). The Equity Premium Income Fund expects that, under normal circumstances, it will sell call options on a portion of the value of the Fund’s portfolio. As a seller of call options, the Equity Premium Income Fund will receive a premium (cash) from the purchaser of the option, in exchange for which the purchaser of the call option has the right to participate in the underlying index’s gains above the predetermined strike price until the option expires. If the option is exercised, the Fund, as the seller of the call option, must pay the difference between the price of the index and the strike price of the option.
During periods where the U.S. equity market is relatively stable, falling, or slightly rising such that the option premiums received by the Fund exceed the appreciation of the index and the strike price, the strategy may outperform an otherwise similar strategy that does not generate additional income from options premiums. Alternatively, during periods of rising markets where gains in the underlying indices exceed the premiums received, the strategy would be expected to underperform an otherwise similar strategy with no option overlay. The Equity Premium Income Fund expects that the underlying portfolio of securities, together with the option overlay, should in the aggregate result in a portfolio with a modest defensive tilt as compared to the S&P 500, designed to outperform in flat to down markets, and expected to underperform in large positive markets.
In addition to the sale of call options discussed above, the Equity Premium Income Fund may also buy or write put and call options on individual securities (including ETFs) or securities indices for investment purposes, to hedge other investments, or to generate additional option premiums for the Fund. The Equity Premium Income Fund’s options investments may involve “covered” positions where the Fund may write a call option on an underlying position to generate income. The Equity Premium Income Fund may involve a “collateralized” strategy more generally, where the Fund may write put options on a security whose value is collateralized by cash (“cash-secured puts”) or otherwise collateralized by the Fund’s securities. The Equity Premium Income Fund may also write options on individual securities that it does not hold in its portfolio (i.e., “naked” options), which have the potential for unlimited loss.
The Equity Premium Income Fund’s option strategies may also involve options combinations, such as spreads, straddles and collars. In “spread” transactions, the Equity Premium Income Fund buys and writes a put or buys and writes a call on the same underlying instrument with the options having different strike prices, expiration dates, or both. When the Equity Premium Income Fund engages in spread transactions, it seeks to profit from differences in the option premiums paid and received and in the market prices of the related options positions when they are closed out or sold. In “straddles,” the Equity Premium Income purchases a put option and a call option or writes a put option and a call option on the same instrument with the same expiration date and the same strike price. A “collar” position combines a put option purchased by the Equity Premium Income (the right of the Equity Premium Income Fund to sell a specific security within a specified period) with a call option that is written by the Equity Premium Income Fund (the right of the counterparty to buy the same security) in a single instrument, and the Equity Premium Income Fund’s right to sell the security is typically set at a price that is below the counterparty’s right to buy the security. Thus, the combined position “collars” the performance of the underlying security, providing protection from depreciation below the price specified in the put option, and allowing for participation in any appreciation up to the price specified by the call option. In each case, the premium received for writing an option offsets, in part, the premium paid to purchase the corresponding option; however, downside protection may be limited as compared to just owning a single option. There is no limit on the number or size of the options transactions in which the Equity Premium Income Fund may engage.
The Equity Premium Income Fund will typically sell portfolio securities to seek to secure gains or limit potential losses when Horizon believes that other more favorable opportunities exist or when Horizon otherwise believes it is in the best interest of the Equity Premium Income Fund.
HADUX - Performance
Return Ranking - Trailing
Period | HADUX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 5.7% | -24.4% | 10.9% | 14.37% |
1 Yr | 11.4% | -18.7% | 29.9% | 60.54% |
3 Yr | 3.5%* | -4.6% | 29.3% | 87.91% |
5 Yr | 4.7%* | -1.8% | 42.6% | 97.13% |
10 Yr | N/A* | 1.0% | 24.3% | N/A |
* Annualized
Return Ranking - Calendar
Period | HADUX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 4.5% | -24.9% | 46.1% | 59.81% |
2022 | -8.8% | -65.1% | 4.6% | 24.73% |
2021 | 15.7% | -44.2% | 57.5% | 52.32% |
2020 | -5.4% | -23.2% | 285.0% | 87.13% |
2019 | 14.0% | -21.4% | 48.5% | 83.56% |
Total Return Ranking - Trailing
Period | HADUX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 5.7% | -24.4% | 10.9% | 14.37% |
1 Yr | 11.4% | -18.7% | 29.9% | 60.54% |
3 Yr | 3.5%* | -4.6% | 29.3% | 87.91% |
5 Yr | 4.7%* | -1.8% | 42.6% | 97.13% |
10 Yr | N/A* | 1.0% | 24.3% | N/A |
* Annualized
Total Return Ranking - Calendar
Period | HADUX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 6.1% | -15.9% | 46.7% | 83.78% |
2022 | -7.1% | -42.0% | 8.5% | 63.92% |
2021 | 20.2% | 3.6% | 129.7% | 92.25% |
2020 | -3.4% | -22.6% | 304.8% | 92.72% |
2019 | 17.0% | -12.7% | 52.1% | 98.37% |
NAV & Total Return History
HADUX - Holdings
Concentration Analysis
HADUX | Category Low | Category High | HADUX % Rank | |
---|---|---|---|---|
Net Assets | 98.3 M | 1.09 M | 163 B | 85.57% |
Number of Holdings | 201 | 2 | 1689 | 9.91% |
Net Assets in Top 10 | 26.9 M | 420 K | 33.9 B | 86.05% |
Weighting of Top 10 | 28.11% | 4.8% | 99.9% | 47.02% |
Top 10 Holdings
- Microsoft Corp 6.29%
- Apple Inc 5.65%
- Alphabet Inc 2.99%
- Amazon.com Inc 2.68%
- NVIDIA Corp 2.19%
- JPMorgan Chase Co 1.84%
- Exxon Mobil Corp 1.68%
- Meta Platforms Inc 1.64%
- Broadcom Inc 1.59%
- Johnson Johnson 1.56%
Asset Allocation
Weighting | Return Low | Return High | HADUX % Rank | |
---|---|---|---|---|
Stocks | 99.59% | 1.86% | 108.42% | 20.33% |
Cash | 0.41% | -0.79% | 38.18% | 75.54% |
Preferred Stocks | 0.00% | 0.00% | 13.88% | 33.33% |
Other | 0.00% | -3.53% | 39.72% | 48.15% |
Convertible Bonds | 0.00% | 0.00% | 3.66% | 30.05% |
Bonds | 0.00% | -0.71% | 73.23% | 32.56% |
Stock Sector Breakdown
Weighting | Return Low | Return High | HADUX % Rank | |
---|---|---|---|---|
Healthcare | 23.73% | 0.00% | 30.08% | 6.07% |
Technology | 14.75% | 0.00% | 54.02% | 21.68% |
Financial Services | 14.46% | 0.00% | 58.05% | 86.90% |
Energy | 11.87% | 0.00% | 54.00% | 11.54% |
Consumer Cyclical | 10.47% | 0.00% | 22.74% | 8.59% |
Consumer Defense | 8.19% | 0.00% | 34.10% | 53.25% |
Industrials | 7.50% | 0.00% | 42.76% | 87.51% |
Basic Materials | 7.48% | 0.00% | 21.69% | 6.42% |
Utilities | 1.55% | 0.00% | 27.04% | 82.57% |
Real Estate | 0.00% | 0.00% | 90.54% | 88.20% |
Communication Services | 0.00% | 0.00% | 26.58% | 98.01% |
Stock Geographic Breakdown
Weighting | Return Low | Return High | HADUX % Rank | |
---|---|---|---|---|
US | 99.59% | 1.86% | 108.42% | 17.66% |
Non US | 0.00% | 0.00% | 27.89% | 51.59% |
HADUX - Expenses
Operational Fees
HADUX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.36% | 0.03% | 14.82% | 22.56% |
Management Fee | 0.75% | 0.00% | 1.50% | 82.43% |
12b-1 Fee | 0.25% | 0.00% | 1.00% | 31.40% |
Administrative Fee | N/A | 0.00% | 0.50% | N/A |
Sales Fees
HADUX 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 | 0.95% | 5.00% | N/A |
Trading Fees
HADUX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 1.00% | 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.
HADUX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 222.00% | 0.00% | 488.00% | 97.89% |
HADUX - Distributions
Dividend Yield Analysis
HADUX | Category Low | Category High | HADUX % Rank | |
---|---|---|---|---|
Dividend Yield | 0.24% | 0.00% | 38.45% | 84.35% |
Dividend Distribution Analysis
HADUX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Quarterly | Annually | Monthly | Quarterly |
Net Income Ratio Analysis
HADUX | Category Low | Category High | HADUX % Rank | |
---|---|---|---|---|
Net Income Ratio | 1.52% | -1.51% | 4.28% | 39.21% |
Capital Gain Distribution Analysis
HADUX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually |
Distributions History
Date | Amount | Type |
---|---|---|
Feb 22, 2024 | $0.039 | OrdinaryDividend |
Dec 21, 2023 | $0.214 | OrdinaryDividend |
Aug 24, 2023 | $0.244 | OrdinaryDividend |
May 25, 2023 | $0.291 | OrdinaryDividend |
Feb 23, 2023 | $0.113 | OrdinaryDividend |
Dec 22, 2022 | $0.480 | OrdinaryDividend |
Aug 18, 2022 | $0.266 | OrdinaryDividend |
May 20, 2022 | $0.340 | OrdinaryDividend |
Feb 24, 2022 | $0.077 | OrdinaryDividend |
Aug 19, 2021 | $0.332 | OrdinaryDividend |
May 20, 2021 | $0.272 | OrdinaryDividend |
Feb 18, 2021 | $0.047 | OrdinaryDividend |
Dec 21, 2020 | $0.284 | OrdinaryDividend |
Aug 20, 2020 | $0.231 | OrdinaryDividend |
May 21, 2020 | $0.443 | OrdinaryDividend |
Feb 20, 2020 | $0.139 | OrdinaryDividend |
Aug 22, 2019 | $0.310 | OrdinaryDividend |
May 23, 2019 | $0.473 | OrdinaryDividend |
Feb 21, 2019 | $0.110 | OrdinaryDividend |
Aug 24, 2018 | $0.286 | OrdinaryDividend |
May 25, 2018 | $0.432 | OrdinaryDividend |
Feb 23, 2018 | $0.054 | OrdinaryDividend |
Aug 25, 2017 | $0.206 | OrdinaryDividend |
HADUX - Fund Manager Analysis
Managers
Ronald Saba
Start Date
Tenure
Tenure Rank
Dec 28, 2016
5.42
5.4%
Mr. Saba has more than twenty years of experience performing fundamental research and managing equity portfolios. He joined Horizon Investments in 2009 and is responsible for all fundamental equity research. Prior to joining Horizon, Mr. Saba was Managing Partner and Chief Investment Officer of Charlotte Capital, LLC from 1999 through 2006, where he was lead portfolio manager for the firm’s two institutional investment products.
Michael Dickson
Start Date
Tenure
Tenure Rank
Mar 31, 2018
4.17
4.2%
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.
Tenure Analysis
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.05 | 86.59 | 8.02 | 16.42 |