HORIZON ASCEND
5%™ INDEX
An index for new heights
An index for new heights
Using techniques derived from academic and institutional experience, Horizon Investments' Ascend 5%™ Index aims to deliver smooth returns under a variety of market conditions.
An index for new heights
Using techniques derived from academic and institutional experience, Horizon Investments' Ascend 5%™ Index aims to deliver smooth returns under a variety of market conditions.
BUILT FOR THE JOURNEY
Horizon Ascend 5%™ Index
Using techniques derived from academic and institutional experience, Horizon Investments' Ascend 5%™ Index aims to deliver smooth returns under a variety of market conditions.
Our trend-following process with a risk management component seeks exposure to those assets that are trending higher while minimizing exposure to assets in downtrends.
BUILT FOR THE JOURNEY
Horizon Ascend 5%™ Index
Our trend-following process with a risk management component seeks exposure to those assets that are trending higher while minimizing exposure to assets in downtrends.
BUILT FOR THE JOURNEY
Horizon Ascend
5%™ Index
Our trend following process with a risk management component seeks exposure to those assets that are trending higher while minimizing exposure to assets in downtrends.
Here's what's inside Ascend 5%™
It begins with determining the market state and whether to invest in risky assets. The process then determines the weighting of the assets that make up the index. Lastly, a daily volatility assessment is calculated with the aim of managing investment risk.
BROAD DIVERSIFICATION
Markets change, so choosing among a broad array of assets aims to make returns more stable and with the goal of making positive returns more likely.
Broad
Diversification
Diversification
Diversification is critical for generating consistency in returns as market leadership changes over time.
TREND
FOLLOWING
Increase and/or maintain exposure to ETFs with positive trends, while reducing exposure to ETFs in a downtrend to minimize losses.
Trend Following - Minimize Losses
Moving average signals may reduce risk when markets are in a downtrend.
Academic research suggests that over time the best past performers tend to outpace the worst past performers. Ascend 5%™ uses monthly reallocation to tilt exposure towards the best performers.
RISK
MANAGEMENT
A dynamic cash allocation is used to reduce risk when the index is above a 5% volatility target.
Index Level Risk Management
Reducing risk with a risk management overlay may increase the probability of positive index returns.
Here's what's inside Ascend 5%
It begins with determining the market state and whether to invest in risky assets. The process then determines the weighting of the assets that make up the index. Lastly, a daily volatility assessment is calculated with the aim of managing investment risk.
BROAD
DIVERSIFICATION
Markets change, so choosing among a broad array of assets aims to make returns more stable and with the goal of making positive returns more likely.
Broad Diversification
Diversification can be critical for generating consistency in returns as market leadership changes over time.
You cannot invest directly in an index.
TREND
FOLLOWING
Increase and/or maintain exposure to ETFs with positive trends, while reducing exposure to ETFs in a downtrend to minimize losses.
Trend Following - Minimize Losses
Moving average signals may reduce risk when markets are in a downtrend.
Academic research suggests that over time the best past performers tend to outpace the worst past performers. Ascend 5%™ uses monthly reallocation to tilt exposure towards the best performers.
You cannot invest directly in an index.
RISK
MANAGEMENT
A dynamic cash allocation is used to reduce risk when the index is above a 5% volatility target.
Index Level Risk Management
Reducing risk with a risk management overlay may increase the probability of positive index returns.
You cannot invest directly in an index.
Ascend in Different Market States
When the market state signal shows low risk, then exposure to equities and high-yield bonds may be the preferred allocation. In high risk environments, cash may become the largest weighting.
During a low risk environment:
During a high risk environment:
For illustrative purposes only.
Ascend in Different Market States
When the market state signal shows low risk, then exposure to equities and high-yield bonds may be the preferred allocation. In high risk environments, cash may become the largest weighting.
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For illustrative purposes only. You cannot invest in an index directly.
Possible use cases
Diversify against rising rates
Use Ascend 5% to replace bonds in a portfolio as yields are near all-time lows.
Use Case:
Diversify against rising rates
Diversify against rising rates
Use Ascend 5%™ in an insurance product to replace bonds in a portfolio as yields are near all-time lows.
Why? A similar risk profile to bonds with less interest rate risk.
Low bond yields may mean low returns and research suggests the Ascend 5% index does better when overall bond returns are poor.
You cannot invest directly in an index.
Diversity from core passive stocks + bonds
Use to complement a portfolio already including passive core stock and bond investments.
Use Case:
Diversity from core passive stocks and bonds
Diversity from core passive stocks and bonds
Why? This may reduce overall risk, as the index has low correlation to both stocks and bonds. Low correlation can add to diversification
You cannot invest directly in an index.
A complement to an all-stock index
Ascend 5%™ can buffer losses, depending on market conditions.
Use Case:
A complement to an all-stock index in an insurance product
A complement to an all-stock index in an insurance product
Use to complement an all-stock index like the S&P within an insurance product.
Why? When stocks do poorly the index can buffer losses, while still participating in gains when stocks do well.
You cannot invest directly in an index.
Possible use cases
Diversify against
rising rates
Use Ascend 5% to replace bonds in a portfolio as yields are near all-time lows.
Use Case:
Diversify against rising rates
Diversify against rising rates
Use Ascend 5%™ in an insurance product to replace bonds in a portfolio as yields are near all-time lows.
Why? A similar risk profile to bonds with less interest rate risk.
Low bond yields may mean low returns and research suggests the Ascend 5% index does better when overall bond returns are poor.
You cannot invest directly in an index.
Diversity from core passive stocks + bonds
Use to complement a portfolio already including passive core stock and bond investments.
Use Case:
Diversity from core passive stocks and bonds
Diversity from core passive stocks and bonds
Why? This may reduce overall risk, as the index has low correlation to both stocks and bonds. Low correlation can add to diversification
You cannot invest directly in an index.
A complement to an all-stock index
Ascend 5%™ can buffer losses, depending on market conditions.
Have more questions?
Retirement planning?
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Retirement
planning?
Let Horizon's Dashboard help.
FOR ILLUSTRATIVE PURPOSE ONLY.
Connect product to planning with our visually-stunning, intuitive and powerful goals-based advisor planning platform.
You cannot invest directly in an index. The Horizon Ascend 5%™ Index is not an investment advisory service. Please contact us for more information. Horizon Investments and the stylized H are each registered trademarks of Horizon Investments, LLC.
You cannot invest directly in an index. The Horizon Ascend 5%™ Index is not an investment advisory service. Please contact us for more information. Horizon Investments and the stylized H are each registered trademarks of Horizon Investments, LLC.