An Asset Allocation Specialist Launches a Fund Through Cambridge
Reported by Neil Anderson, Managing Editor
Horizon Investments is powering a new mutual fund for distribution via Cambridge Investment Research.
Today Charlotte, North Carolina-based Horizon unveiled the Horizon Active Asset Allocation Fund, a global, tactical asset allocation fund. The fund is sold load-free and carries 162 basis points in annual expenses.
A spokesman for Fairfield, Iowa-based Cambridge confirmed that Horizon has been on the privately-held, independent broker-dealer's asset management wrap platform since spring of last year. The new mutual fund will replace Horizon's current portion in the wrap program on April 1.
Cambridge boasts more than 2,200 advisors.
Robbie Cannon, president and CEO of Horizon, stated that the new fund uses an "institutional-level strategy."
Company Press Release
Horizon Investments Active Asset Allocation Fund is Launched
CHARLOTTE, N.C., March 26, 2012 -- Horizon Investments, LLC today introduced a no-load mutual fund with a tactical global asset allocation strategy that invests in exchange traded funds (ETFs). The Horizon Active Asset Allocation Fund (ticker:AAANX) is available to individual investors through over 2,200 financial advisors affiliated with Cambridge Investment Research, Inc., a leading independent broker-dealer and member, FINRA/SIPC.
"We are very pleased to make this institutional-level strategy accessible for individual investors and their families," said Robbie Cannon, president and CEO of Horizon Investments. "We believe individual investors should have the same opportunities as our institutional clients to seek to build wealth in a managed risk environment."
Key elements of the Horizon Active Asset Allocation Fund include:
Global Investment Strategy: A single investment in this fund accesses a large universe of global investment opportunities. The fund seeks investments in 12 diverse asset classes. It considers more than 2,000 ETFs, including market, style, sector, country, commodity and currency indexes.
Tactical Asset Allocation: This fund is actively managed, using sophisticated tactical asset allocation techniques to navigate volatile market swings. Our goal is to capture upside price moves in rising markets and reduce downside risk when markets decline.
Investment Selection Process: The fund employs a multi-disciplinary research process, incorporating global macro economics and quantitative and fundamental analysis. Horizon's in-house economists, quantitative analysts and fundamental researchers meet each week to generate, test and validate investment ideas from different perspectives.
Risk Management: Managing risk is just as important as investment selection to the fund managers, who invest alongside their clients. Assembling portfolios of diversified and low correlated asset classes and having the ability to make timely tactical changes in allocation weightings may help mitigate market risk.
Low Costs: The mutual fund is offered in N Shares (no load shares).
The Horizon Active Asset Allocation Fund is available in the CAAP and CMAP programs on the Cambridge platform. Cambridge is a rapidly growing broker-dealer offering both fee- and commission-based services through a nationwide network of independent investment advisors and registered representatives; it consistently scores high in customer satisfaction.
Cambridge Investment Research, Inc., a broker-dealer and member, FINRA/SIPC, and Cambridge Investment Research Advisors, Inc., a registered investment advisor, are both wholly-owned subsidiaries of Cambridge Investment Group, Inc. To locate a Cambridge financial advisor near you, telephone: 1-800-777-6080.
Horizon Investments, LLC is an SEC-registered investment advisor based in Charlotte, North Carolina. The address is 13024 Ballantyne Corporate Place, Suite 225, Charlotte, NC 28277. To obtain more information about Horizon and its investment management services, telephone: 1-866-371-2399 or visit the website at www.horizoninvestments.com .
The material contained in this document is for informational purposes only and should not be construed as an offer to sell or a solicitation of an offer to buy any security or interest in the mutual fund.
There is no guarantee the Fund will meet its objective.
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 counterparty may default. Country 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.
Contact: Eddie Rollins, Managing Director, 1-704-544-2399 er@horizoninvestments.com
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