The Power of Customization

Horizon Custom Portfolios

Financial markets can be dynamic and fast-changing, and as your wealth grows, so can the complexities of managing it. To keep your financial plan on track, you may need a more sophisticated approach that adapts to your evolving priorities, responds to shifting marketing conditions, and helps you manage taxes effectively — all while keeping your goals in focus.

At Horizon, your investment journey and goals are as unique as you are. Our Horizon Custom Portfolios (HCP) program is designed to address these complexities head-on, offering personalized strategies that align with your unique financial goals while addressing the dynamics associated with growing wealth.

As a Separately Managed Account (SMA), HCP provides direct ownership of individual stocks, giving you transparency, personalization, and the option of tax efficiency. Whether managing capital gains, tailoring asset allocation, or incorporating individual stock preferences, HCP empowers you and your advisor to create a portfolio that best reflects your unique needs. Designed to be adaptable and precise, this personalized approach ensures your investments evolve to meet your goals at every stage of your financial journey.

The Power of Customization to Help You Reach Your Financial Goals

HCP is an actively managed investment solution designed to optimize your portfolio for your personal goals, whether you’re seeking to grow your wealth, plan for retirement, or preserve your legacy.

Personalized Tax Budgets

Customize the tax management process down to the tax lot level while taking advantage of an unlimited transition time frame to help limit the impact of ongoing liabilities and manage capital gains.

Individual Equity Ownership

Enjoy direct ownership of over 50 individual stocks within the U.S. large cap stock universe and use “do not buy/do not sell” preferences to ensure your portfolio reflects your investing style while having transparency over what you own.

Flexible Asset Allocation Features

Choose a custom asset allocation tailored to your investment goals with the flexibility to allocate up to 50% of your account to fixed income exchange-traded funds (ETFs). You can also establish a designated cash reserve for current or future income distributions.

Creating a Custom Portfolio

HCP makes it easy for you and your advisor to design your preferred asset allocation – selecting precise market exposure that aligns with your goals.

Horizon’s proprietary stock selection process screens the U.S. large cap stock universe against 25 characteristics, seeking to identify the most attractive opportunities. This process creates five unique equity strategies: Core, Growth, Value, Low Volatility, and Dividend. Our equity strategies aim to deliver long-term out-performance through an active approach using both quantitative and qualitative analyses.

To start, you and your financial advisor will select your desired starting equity strategy from these five options, each focusing on a specific investment style.

Select Your Starting Equity Strategy

HCP makes it easy for you and your advisor to design your preferred asset allocation – selecting precise market exposure that aligns with your goals.

To start, you and your financial advisor will select your desired starting equity strategy from these five options, each focusing on a specific investment style:

Core Equity Strategy

Large-cap stocks shown to demonstrate long-term risk-adjusted outperformance

Growth Equity Strategy

Large-cap stocks with growth-oriented characteristics of profitability and momentum

Value Equity Strategy

Large-cap stocks trading at what we view to be attractive valuations

Low Volatility Equity Strategy

Large-cap stocks that exhibit lower than average price volatility

Dividend Equity Strategy

Large-cap stocks with consistent earnings and stable dividends

Customize the Portfolio

After you and your financial advisor choose your preferred equity strategy, you can explore several personalization options to tailor the account to your specific goals. You may also regularly review and adjust these selections with your advisor to ensure your account continues to meet your evolving needs. Customizations may include:

Personalized Tax Budget

Design a tax management budget that can include an unlimited transition time frame, with capital gains management available down to the individual tax lot level.

Develop a Plan for Concentrated Position

Transfer existing positions in-kind with a custom transition analysis.

Flexible Allocation

Allocate up to 50% of your account to fixed-income exchange-traded funds (ETFs) and set a designated cash reserve. Municipal ETF options are available for added tax efficiency.

Set Security-Specific Rules

Establish security-level “do not buy” or “do not sell” lists to limit or gradually reduce exposure to specific stocks.

Select Income Customizations

Create a personalized income strategy with a designated cash reserve for added liquidity to support periodic or recurring withdrawals.

Ongoing Tax Management and Active Monitoring

Managing after-tax returns can be an important part of a financial plan, and taxes can significantly impact a portfolio’s ability to meet long-term goals. If you want to address limiting the impact of embedded gains and ongoing tax liabilities, HCP allows you to take control of your tax strategy with customizations.

Your financial advisor and the Horizon Investments team seek to minimize your account’s tax liabilities by replacing stocks sold for tax purposes with similar investments, keeping your portfolio consistent with your investment strategy and objectives.

Your account is also actively monitored to adapt to changing market conditions and your financial goals. We adjust as needed to keep your account on track, actively considering your capital gains and losses, tax budget, customization preferences, and overall portfolio drift.

Your account is regularly reviewed for a rebalance, subject to your constraints

Horizon actively manages accounts for possible trades down to the tax lot level

HCP could be well suited for your financial planning needs if you:

Want to transition highly concentrated and/or appreciated stock from an employee stock ownership plan, a stock grant, or an inheritance
Experience a financial windfall such as selling a business or property sale
Enjoy single-stock ownership and the transparency associated with these holdings
Desire comprehensive customization over your portfolio
Seek to manage and mitigate growing tax liabilities

No security is intended to be sold based on this document. The investments recommended by Horizon Investments are not guaranteed. There can be economic times where all investments are unfavorable and depreciate in value. Clients may lose money.

Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Strategies are subject to risks including general market risk and risks related to economic conditions. Underlying investments fluctuate in price and may be sold at a price lower than the purchase price resulting in a loss of principal. The underlying investments are neither FDIC insured nor guaranteed by the U.S. Government.

Horizon Investments reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The investment strategy or strategies discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances. This material has been prepared for informational purposes only.

Horizon Investments does not provide tax advice. Investors are strongly advised to consult with their tax advisers regarding any potential investment or specific tax questions and obligations. Certain transactions give rise to substantial risk and are not suitable for all investors.

Visuals and charts shown are for illustrative purposes only and should not be considered a guarantee of success or a certain level of performance.

Past performance not indicative of future results. This overview document is not exhaustive and is intended only to introduce certain strategies managed by Horizon Investments. Contact us for more information about these strategies and for a copy of our Form ADV.

References to indices, or other measures of relative market performance over a specified period of time are provided for informational purposes only. Reference to an index does not imply that any account will achieve returns, volatility or other results similar to that index. The composition of an index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change. It is not possible to invest directly in an index.