Protect Stage

Disciplined risk mitigation strategies designed with the goal of preserving wealth, reducing investor anxiety and combating poor investment decision-making.

DESIRED OUTCOME:
Preservation

PRIMARY RISK:
Catastrophic Portfolio Loss

Preservation

Why Do Investors Need Catastrophic Risk Mitigation?

The potential for — and fear of — a catastrophic market event remains consistent. Emotions like fear can cause investors to make impulsive investment decisions, especially during periods of intense market volatility. Risk Assist® is a systematic, automated and disciplined strategy designed to mitigate risk in a portfolio.

INTRODUCING
INTRODUCING

Risk Assist®

How Can Risk Assist® Help Manage Investments and Clients' Emotions?

The Risk Assist® algorithm uses a disciplined, automated process to dynamically “de-risk” a portfolio during times of severe market stress. In doing so, it seeks to curb the behavioral investing impulses that can derail financial plans.

Risk Assist® is also designed to address the question of when to “re-invest” the portfolio. As market conditions improve, the strategy is restored to its intended portfolio mix using the same disciplined and automated process, with the aim of keeping clients on track to achieve their financial goals.

RISK ASSIST®

How Does Risk Assist® Work?

The Risk Assist® algorithm monitors market conditions and then signals when the strategy should begin de-risking. When Risk Assist® activity occurs, advisors receive a real-time alert.

Designed to Protect

Horizon manages each portfolio to prevent what it believes is a material amount of drawdown relative to each model’s objective.

Ratcheting Function

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.

Global Flexibility

The strategy has the ability to target attractive opportunities in various segments of equity markets and the flexibility to make portfolio adjustments in order to adapt to market changes.

Intrigued? The Risk Assist® brochure has additional information

Risk Assist® is NOT a…

  • A timing strategy
  • A guarantee
  • “Always hedged”
  • Protection against acute or quickly occuring gap risk

Risk Assist Resources

Mitigating risk —
our approach to preserving wealth.

GAIN Stage

In this stage, we seek to grow assets
while being mindful of volatility.

Learn about our other investment strategies.

SPEND Stage

In this stage, we seek to preserve spending power while addressing longevity risk.

Past performance is not indicative of future results.

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.

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. 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.

Horizon Investments, the Horizon H, and Risk Assist are registered trademarks of Horizon Investments, LLC.

© 2023 Horizon Investments, LLC.

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