Fees for Direct Clients. Our fees charged to Direct Clients are established in our written investment advisory agreement. Generally, our fees are charged quarterly in arrears, but some clients are billed in advance or on a monthly basis. Typically, we charge fees as a percentage of the client’s assets under management, calculated at the close of each calendar quarter or month (as applicable), but there may be instances where we enter into flat-fee arrangements with certain clients on a case-by-case basis.
Our Direct Client fees are negotiable, but they generally range from 1.00% – 2.00%. The maximum fee retained by Horizon from Direct Clients is 1.00%, and the remainder is paid to the Solicitor Firm (if any). For Direct Client strategies that use Horizon Funds, Direct Clients pay us only the fees charged by those Horizon Funds, and any advisory fee collected is paid entirely to the Solicitor Firm.
Fees for SMA Wrap Programs. Sponsor Firms set the fees for clients in their wrap fee program. Wrap Fee Clients typically have either a “single contract” or “dual contract” agreement. Under a single contract, the client pays a single asset‐based fee to the Sponsor Firm, and the Sponsor Firm pays us out of that fee. Under a dual contract agreement, the client has a separate contract with us, and pays us an advisory fee in addition to the fee they pay to the Sponsor Firm. Our 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. Wrap Fee Clients are typically not charged a commission on trades executed through the Sponsor Firm. However, because Horizon places a significant amount of trades away from the Sponsor Firms (also known as step‐out transactions), and the commissions or other fees for these trades are in addition to the wrap fee, Wrap Fee Clients should ask their Sponsor Firm ways to reduce fees for step-out transactions.
Our advisory fees are separate and distinct from fees and expenses charged by mutual funds or ETFs, which fees and expenses are described in the fund’s prospectus, and are exclusive of all fees paid to third parties, such as Sponsor Firms, custodians, brokers (transaction charges).
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. Because we charge an asset-based fee, the total fees you pay us will increase with the size of your account. This creates an incentive for us to recommend that you increase the assets in your account. Fees charged by Horizon Funds may exceed our management fee, creating an incentive for us to recommend Horizon Funds for a client’s account.
More detailed information regarding fees and costs is provided in our Form ADV, Part 2 Brochure.