Horizon Equity Premium Income Advisor

Frequently Asked Questions About HADUX

What does HADUX invest in?

The adviser seeks to achieve the fund's investment objective by investing primarily in the equity securities of U.S. and foreign dividend paying companies. Equity securities include common and preferred stock, convertible debt securities, ADRs, and REITs. It will invest not less than 80% of the value of its net assets in "dividend paying securities", which the Adviser defines as equity securities that have paid a dividend in the prior 12 calendar months or that the Adviser believes are reasonably likely to pay a dividend in the 12 calendar months following the fund's acquisition of the security.

What is the expense ratio of HADUX?

Horizon Equity Premium Income Advisor (HADUX) charges an expense ratio of 1.24%. This is the annual fee deducted from fund assets to cover management and operations.

What is HADUX's distribution yield?

HADUX's trailing-twelve-month yield is 7.92%, calculated from the sum of distributions over the past year divided by the current price.

How does HADUX's covered-call strategy work?

HADUX sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is HADUX?

Horizon Equity Premium Income Advisor (HADUX) manages $178.4M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is HADUX actively managed or an index fund?

HADUX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.