Strategy. The Core Equity Fund is an actively managed exchange-traded fund (ETF) that seeks to achieve its investment objective by investing primarily in equity securities and other investment companies (including ETFs) that invest in equity securities. The Funds investment adviser, Horizon Investments, LLC (Horizon), employs a flexible approach that combines active management and quantitative models to allocate the Funds portfolio among issuers, sectors, and/or factors (such as growth, value, momentum, quality, size, and volatility). Horizon selects securities believed to offer the highest projected return for a given level of risk, using a multi-disciplinary approach that includes economic, quantitative, and fundamental analysis. Horizon selects portfolio investments without restriction as to the issuers market capitalization. Under normal circumstances, the Core Equity Fund will … Show more… The Core Equity Fund is an actively managed exchange-traded fund (ETF) that seeks to achieve its investment objective by investing primarily in equity securities and other investment companies (including ETFs) that invest in equity securities. The Funds investment adviser, Horizon Investments, LLC (Horizon), employs a flexible approach that combines active management and quantitative models to allocate the Funds portfolio among issuers, sectors, and/or factors (such as growth, value, momentum, quality, size, and volatility). Horizon selects securities believed to offer the highest projected return for a given level of risk, using a multi-disciplinary approach that includes economic, quantitative, and fundamental analysis. Horizon selects portfolio investments without restriction as to the issuers market capitalization. Under normal circumstances, the Core Equity Fund will invest at least 80% of the value of its net assets (plus any borrowings for investment purposes) in equity securities. For purposes of this policy, equity securities means common and preferred stock, convertible debt securities, American Depositary Receipts (ADRs), real estate investment trusts (REITs), derivative instruments that provide exposure to or are otherwise related to equity securities as well as other investment companies that invest primarily in these instruments. Options : The Core Equity Fund may seek to generate income through an options strategy involving primarily put spreads on broad-based securities indices, such as the S&P 500, or ETFs that track broad-based indices. Put spread transactions consist of selling a put option on a portion of the Funds portfolio and purchasing a put option of the same maturity with a lower strike price. This strategy is designed to generate income from the premiums received on the sold put options while the purchased put options provide a hedge against declines in the value of the reference asset. The use of this strategy is expected to increase the Funds volatility. Options purchased by the Fund will generally be exchange-traded, including Flexible Exchange Options (FLEX Options). FLEX Options are customizable exchange-traded contracts guaranteed for settlement by the Options Clearing Corporation (the OCC), with customizable terms such as exercise price, exercise style, and expiration date. During periods of stable or rising equity markets, the premiums received from sold put options may exceed the losses, causing the strategy to outperform similar strategies without sold put options. Conversely, during periods of falling markets, losses from the sold put options may exceed the premiums received, causing the strategy to underperform. However, losses will be hedged at values below the strike price of the purchased put options. The Fund may use options opportunistically, with their use varying based on Horizons market outlook, risk assessment, and portfolio management objectives. Options may also be used for hedging purposes, managing portfolio risk, or enhancing return potential in a cost-effective manner. The Funds investment strategies, including the use of options, are subject to change based on Horizons ongoing assessment of market conditions and investment opportunities. The Fund may also buy or write put and call options on individual securities, including ETFs, or indices for investment purposes, hedging, or generating additional income. These strategies may involve covered call writing, where the Fund writes call options on underlying positions to generate income, or cash-secured puts, where written put options are collateralized by cash or other securities. The Fund may also write options on securities it does not hold in its portfolio (i.e., naked options), which carry the potential for unlimited loss. The Funds option strategies may also involve combinations, such as spreads, straddles, and collars. In a spread transaction, the Fund buys and writes options on the same underlying instrument with different strike prices, expiration dates, or both, seeking to profit from differences in premiums or market prices. In a straddle, the Fund simultaneously buys or writes put and call options on the same instrument with identical strike prices and expiration dates. A collar involves combining a purchased put option with a written call option on the same security to limit downside risk while capping upside potential. Premiums received from writing options offset, in part, the cost of purchasing options; however, downside protection may be limited compared to owning a single option outright. There is no limit on the number or size of options transactions in which the Fund may engage. Show less