Our disciplined risk mitigation strategies seek to preserve wealth, reduce investor anxiety, and combat poor investment decision-making.
Investors within five years of retirement could have a higher aversion to investment loss compared to an investor further away from retirement.
Preserving wealth during severe market corrections of 25% or more can be an important priority for investors in this stage.
For example, if a portfolio loses 33%, then a 50% gain would be required to restore the portfolio’s original value.
For illustrative purposes only. These are hypothetical numbers only and not based on an actual client account.
Risk Assist’s systematic, automated, disciplined strategy is designed to mitigate portfolio risk.
We seek to prevent material drawdowns relative to each model’s objective.
As a Risk Assist portfolio grows, typically every 3-5% of appreciation, the algorithm will increase, or “ratchet up”, the internally managed loss limit in an attempt to protect those gains.
The strategy has the ability to invest in various segments of equity markets and the flexibility to make portfolio adjustments in order to adapt to market changes.
Risk Assist seeks to curb the human impulses that can derail financial plans.
It is also designed re-enter the market as conditions improve, intending to keep clients on track to achieve their financial goals.
For illustrative purposes only. Not guaranteed against loss. Graph not to scale.
Any risk management processes described herein include an effort to monitor and manage risk but should not be confused with and do not imply low risk or the ability to control risk. The illustrations show how the Risk Assist® algorithm is designed to work. Note that during periods of strong market growth, Risk Assist® strategies that are “de-risked” have a risk of underperforming traditional equity strategies.
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In this stage, we seek to grow wealth while being mindful of volatility.
In this stage, we seek to preserve spending power while addressing longevity risk.
RiskAssist® is NOT A GUARANTEE against loss or declines in the value of a portfolio; it is an investment strategy that supplements a more traditional strategy by periodically modifying exposure to fixed income securities based on Horizon’s view of market conditions. While Risk Assist was designed with the goal of limiting drawdown, Horizon is not able to predict all market conditions and ensure that Risk Assist will always limit drawdown as designed. Accounts with Risk Assist® are not fully protected against all loss. Furthermore, when Risk Assist® is deployed (whether partially or entirely) to mitigate risk for an account, the account will not be fully invested in its original strategy, and accordingly during periods of strong market growth the account may underperform accounts that do not have the Risk Assist® feature. Clients may lose money. Horizon Investments makes no predictions, representations, or warranties herein as to the future performance of any portfolio. Past performance is never a guarantee of future results. There may be economic times where all investments are unfavorable and depreciate in value. Any risk management processes described herein include an effort to monitor and manage risk, but should not be confused with and do not imply low risk or the ability to control risk.