Item 5 – Fees and Compensation
Fee Schedule
Our current fee schedule is listed below (as of the May 31, 2020 prospectuses). Fees
may be negotiable.
Portfolio Fee
Diversified International Fund 0.86% on the first $100 million in assets
and 0.76% on assets over $100 million
Quantitative Long/Short Fund 0.80% on the first $500 million in assets;
0.75% for assets between $500 million
and $1 billion; and 0.70% on assets over
$1 billion
Burkenroad Fund 0.80% on the first $500 million in assets;
0.75% for assets between $500 million and
$1 billion; and 0.70% on assets over
$1 billion
Louisiana Tax-Free Income Fund 0.60% on the first $500 million in assets;
0.55% for assets between $500 million
and $1 billion; and 0.50% on assets over
$1 billion
Mississippi Tax-Free Income Fund 0.60% on the first $500 million in assets;
0.55% for assets between $500 million
and $1 billion; and 0.50% on assets over
$1 billion
Diversified Income Fund 0.70% on the first $500 million in assets;
0.65% for assets between $500 million and
$1 billion; and 0.60% on assets over
$1 billion
Dynamic Asset Allocation Fund 0.70% on the first $500 million in assets;
0.65% for assets between $500 million
and $1 billion; and 0.60% on assets over
$1 billion
International Small Cap Fund 0.80% on the first $500 million in assets;
0.75% for assets between $500 million
and $1 billion; and 0.70% on assets over
$1 billion
Microcap Fund 0.80% on the first $500 million in assets;
0.75% for assets between $500 million and
$1 billion; and 0.70% on assets over
$1 billion
Horizon Advisers pays its Sub-Advisers out of the advisory fee it receives from the
Diversified International Fund and International Small Cap Fund. The Sub-Adviser’s fee
schedule for the Diversified International Fund is: .50% up to $100 million and
.45% for assets over $100 million. The Sub-Adviser’s fee schedule for the International
Small Cap Fund is: 0.55% of the average daily net assets.
The advisory fee is paid to Horizon Advisers at the end of each month, and calculated by
applying a daily rate, based on the annual percentage rates. The fee is based on the
average daily net assets for the month involved. The Fund accountant calculates fees
every month and sends instructions to the custodian to send fees to Horizon Advisers.
Compensation is made payable after services have been provided.
Advisory Agreement Termination
The advisory agreement may be terminated at any time, without the payment of any
penalty by vote of a majority of the Trustees of the Trust or by vote of a majority of the
outstanding voting securities of the Portfolio on not less than 30 days nor more than 60
days written notice to Horizon Advisers, or by Horizon Advisers at any time without the
payment of any penalty, on 90 days written notice to the Trust. The advisory agreement
will automatically and immediately terminate in the event of its assignment.
Portfolio Turnover
The Funds pay transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund shares are held in a taxable
account. These costs, which are not reflected in total annual fund operating expenses
affect the Funds’ performance.
Possibility of Lower Fees
Clients should be aware that lower fees for comparable services may be available from
other advisers.
General Information about Sales Charges
The securities dealer is paid a commission when shareholders buy shares and is paid a
servicing fee as long as the shares are held. The securities dealer or servicing agent may
receive different levels of compensation depending on which class of shares are bought.
From time to time, some financial institutions, including brokerage firms affiliated with
Horizon Advisers, may be re-allowed up to the entire sales charge. Firms that receive a
reallowance of the entire sales charge may be considered underwriters for the purpose
of federal securities law.
The distributor may, from time to time, in its sole discretion, institute one or more
promotional incentive programs for dealers, which will be paid for by the distributor from
any sales charge it receives or from any other source available to it. Under any such
program, the distributor may provide cash or non-cash compensation as recognition for
past sales or encouragement for future sales that may include merchandise, travel
expenses, prizes, meals, lodgings, and gifts that do not exceed $100 per year, per
individual.
Other Fees
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