Item 5. Fees and Compensation
Fees for Services to Clients of Financial Intermediaries
Horizon receives asset‐based management fees based on the total amount of assets Horizon manages. While in some
instances Horizon will have account level information related to client billing, Sponsor Firms or MDPs, as applicable, are
responsible for billing the accounts and submitting payment to Horizon. For information on your specific billing schedule,
including if and how any pre-paid fees are charged or refunded, please contact your Financial Advisor. In some cases,
negotiation of fees may result in different fees being charged for similar services and may be less than the stated fee schedule.
Horizon will not be compensated on the basis of a share of capital gains upon or capital appreciation of the funds or any
portion of the funds of the client.
Horizon’s advisory fees are separate and distinct from fees and expenses charged by open‐end investment companies (i.e.,
mutual funds or ETFs) held in client accounts or recommended by Horizon to clients. A description of these fees and
expenses is available in each fund’s prospectus. Additionally, the fees charged by Horizon are exclusive of all custodial and
transaction costs paid to Sponsor Firms, custodians, brokers or any other third parties, the precise details of which are
unknown to Horizon. For a more detailed description of our brokerage practices, please see Item 12. Clients should review
all fees charged by Horizon, Sponsor Firms, custodians, brokers, and others to fully understand the total amount of fees
incurred.
In addition, for certain strategies that use funds advised by or affiliated with Horizon as an underlying portfolio component,
wrap program and other Sponsor Firm clients compensate Horizon through management fees received from those
investments. See additional information below under “Proprietary Portfolios.”
SMA Wrap Programs
Clients who have SMA assets within wrap‐fee programs will typically have either a “single contract” or “dual contract”
agreement.
Under a single contract, the client pays an asset‐based fee to the Sponsor Firm and, out of that fee the Sponsor Firm is
responsible for paying an investment advisory fee (as described above) to Horizon. There are other non‐asset based fees
that will be charged to the client as discussed below and in Item 12 of this Brochure. In these programs, the Sponsor Firm
and Horizon enter into a sub‐advisory or other agreement under which Horizon agrees to manage the assets of client accounts
in these programs. As part of that agreement, Horizon and the Sponsor Firm agree on the investment advisory fees to be
charged by Horizon on those assets. Horizon’s advisory fees are negotiable and will vary from program to program, but
typically do not exceed 0.75% per year on the value of the client assets in the wrap fee program.
Under a dual contract agreement, the client has one contract with the Sponsor Firm and another contract with Horizon. As
such, the client pays Horizon an investment advisory fee in addition to the asset‐based fee they pay to the Sponsor Firm for
investment advice, custody, execution and reporting. Horizon’s advisory fee is negotiable, but typically does not exceed
0.75% per year on the value of the client assets in the wrap fee program. Other fees will also apply and are discussed in
more detail below and in Item 12 of this Brochure.
Brokerage for SMA wrap accounts is coordinated by the Sponsor Firm (i.e., either with a broker-dealer affiliated with the
Sponsor Firm or with a broker-dealer the Sponsor Firm has otherwise selected). Horizon does not coordinate trading for
these accounts and thus does not have responsibility for best execution of brokerage transactions.
Specific information on the investment advisory fees payable to Horizon under a wrap‐fee program will be provided by the
applicable Sponsor Firm. For information on brokerage or the asset‐based fees charged by the Sponsor Firm, clients should
consult with the Sponsor Firm or refer to the Sponsor Firm’s Wrap Fee Program Brochure (also known as ADV Part 2A
Appendix 1).
UMA Wrap Programs
Horizon has agreements with certain Sponsor Firms to provide model portfolios to UMA clients for a negotiated fee.
Horizon’s advisory fees are negotiable and will vary from program to program, but typically do not exceed 0.75% per year
on the value of the client assets in the wrap fee program.
MDP Fees
Horizon has agreements with certain MDPs to provide model portfolios for a negotiated fee; these fees can differ. Horizon’s
advisory fees are negotiable and will vary from program to program (and may vary among financial intermediaries using
the same MDP), but typically do not exceed 0.65% per year on the value of the client assets in a model portfolio.
Fees for Direct Clients
As stated above, Horizon offers more customized SMA account solutions for larger accounts to Direct Clients through
certain financial intermediaries, referred to as Horizon Custom Portfolios (“HCP”). While Horizon reserves the right in its
sole discretion to accept accounts of a smaller size, and the account minimums and fees for services provided to Direct
Clients are negotiated by each financial intermediary, the maximum annualized management fee for HCP accounts is 0.75%,
and the standard minimum account size is $250,000.
Direct Clients can also be offered Horizon products through other financial intermediary programs, as described above
under Horizon as Investment Adviser to Wrap Fee and Similar Programs. The specific manner in which fees are charged
by Horizon is established in a Direct Client’s written investment advisory agreement (or similar account documentation
required by the financial intermediary firm). Generally, fees are charged quarterly in arrears, but Horizon has some
arrangements where fees are billed in advance and where fees are billed on a monthly basis. Typically, fees are charged as
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