Horizon Investment Services LLC

Item 5 - Fees and Compensation
All fees are subject to negotiation.
Unless otherwise described below or negotiated with the client, Horizon charges a customary annual
fee for all discretionary clients of 1.25% on the ϐirst $2,000,000 of account valuation, 1.10% on the
account valuation between $2,000,001 and $4,000,000, 0.95% on the account valuation between
$4,000,001 and $6,000,000, and 0.80% on assets over $6,000,000.
For investment sub-advisory clients and unafϐiliated wrap programs, Horizon charges an annual fee
ranging from 0.25% to 0.65% of the assets in such accounts. Sub-advisory fees are negotiated.
For providing the model portfolios to the program sponsor, Horizon charges an annual licensing
fee ranging from 0.15% to 0.50% of assets under management, depending on the model portfolio
selected.
Horizon’s fee for providing 401(k)/proϐit sharing services range from 0.40% to 0.50% of the market
value of the aggregate assets of the plan.
Horizon will waive or reduce management fees for Horizon employees and close associates of the
ϐirm.
The speciϐic manner in which fees are charged by Horizon is established in a client’s written agreement
with Horizon. Horizon’s fees for providing individual investment advisory services generally are based
upon the asset value of the portfolio as of the last calendar day of the month immediately preceding
each three-month billing period. Fees generally are calculated quarterly in advance and either billed
to the client or deducted by the custodian, upon written authorization from the client. Management
fees are not prorated for each capital contribution and withdrawal made during the calendar quarter.
Accounts initiated or terminated during a calendar quarter will be charged a prorated fee. Upon
termination of any account, any prepaid, unearned fees will be promptly refunded, and any earned,
unpaid fees will be due and payable. In addition, at its sole discretion, Horizon will temporarily waive
or reduce its fees charged to a client depending upon the composition of the client’s account.
Either Horizon or its client generally is able to terminate their advisory agreement on 30 days written

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notice.
Horizon’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses, which are incurred by the client. Clients will incur certain charges imposed by custodians,
brokers, and other third parties, such as fees charged by managers, custodial fees, deferred sales
charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees
and taxes on brokerage accounts and securities transactions, although Horizon will generally seek to
invest a client in the lowest cost share class of a mutual fund that has multiple classes. Mutual funds
and exchange-traded funds (ETF) also charge internal management fees, which are disclosed in a
fund’s prospectus. Such charges, fees and commissions are exclusive of and in addition to Horizon’s
fee, and Horizon does not receive any portion of these commissions, fees, and costs.
Item 12 further describes the factors that Horizon considers in selecting or recommending broker-
dealers for client transactions and determining the reasonableness of their compensation (e.g.,
commissions).
Horizon will provide advice to clients regarding investments in mutual fund and ETF shares. Each
mutual fund and ETF pays fees, borne by its shareholders, to the manager of the mutual fund or ETF.
Horizon bases its management fee on a percentage of the market value of all assets in the client’s
account, including the value of mutual fund and ETF shares. As a result, a client whose portfolio is
invested in a mutual fund or ETF will bear the client’s proportionate share of the mutual fund or
ETF’s fees and expenses and pay a management fee to Horizon for the same investment. The client
could invest in the same mutual fund or ETF without paying a fee to Horizon, but would then not
have the beneϐit of the advice, review, and monitoring Horizon provides. If Horizon ever recommends
that a client invest in a mutual fund or ETF that Horizon manages, Horizon will credit the account by
the amount of the advisory fee that the Horizon-managed mutual fund or ETF charged the client’s
account.

Item 7 – Types of Clients
Horizon generally provides investment advice to individuals, high net worth individuals, corporate
pension and 401(k)/proϐit-sharing plans, trusts, estates, foundations, and corporations or business
entities.
Horizon also provides investment advice to organizations that sponsor or license the use of certain
portfolios/indices in connection with the creation of unit investment trusts and/or equity-based
index products.
The minimum asset size for a direct new account is $200,000. The minimum asset size for a new
account obtained through a third-party ϐinancial intermediary is $100,000. The minimum size of a
401(k)/proϐit-sharing plan that Horizon will perform services for is $500,000. Horizon will waive
these minimum requirements at its sole discretion.

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