Introducing our Top 15 Utility Strategy

With our new strategy, you’ll have the potential to . . .
Grow Your Cash Flow plus Grow Your Investment

We believe that one of the riskiest things you can do with your retirement nest egg, ironically, is to avoid all investment risk. People are living 25 years or more in retirement. If you simply put all of your money in “safe” investments — such as savings accounts — your retirement spending power may evaporate over time.

An inflation rate of just 3% a year cuts the real spending power of your retirement fund in half over 25 years. That’s why we believe all retirees should consider higher growth investments, such as stocks, as part of their investment strategy.

We believe utility stocks offer several benefits, especially during volatile markets:

• Dividend yields well in excess of the broader stock market.

• The potential for dividend increases.

• Lower expected volatility than other sectors of the stock market.

Click here for strategy details, performance history, and disclosure.

Top 15 Utility
Growth & Income Strategy

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*Top 15 Utility Composite contains fully discretionary Top 15 Utility accounts and, for comparison purposes, is measured against the S&P 1500 Utility Sector Index, as calculated monthly by Horizon. The Top 15 Utility strategy is an all-equity portfolio consisting of Horizon’s favorite 15 utility stocks we believe have the best mix of valuation and growth potential.  For the initial investment selection, we select an equal-weighted basket of 15 utility stocks designed to produce yield in line with the S&P 1500 Utility Sector Index. The S&P 1500 Utility Sector Index represents the utility sector portion of the S&P Composite 1500. The S&P Composite 1500 is an investable U.S. equity benchmark, which combines the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600 to cover approximately 90% of the U.S. market capitalization.

Horizon Investment Services, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Horizon Investment Services, LLC has been independently verified for the periods September 1, 2000 through December 31, 2012. A copy of the verification report is available upon request.

Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

Horizon Investment Services, LLC is an independent registered investment adviser. The firm maintains a complete list of composite descriptions, which is available upon request.

The composite performance results include all fully discretionary active and terminated non-wrap accounts for the strategy and exclude any accounts with significant client-imposed investment restrictions.

The U.S. Dollar is the currency used to express performance. All composite performance returns include the reinvestment of all income. Gross composite performance returns are asset-weighted total return figures after brokerage commissions, but do not reflect the payment of management fees. Net composite performance returns are further reduced by the highest applicable management fee of 1.00%, applied monthly. The annual composite dispersion presented is equal-weighted standard deviation calculated for the accounts in the composite the entire year.Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

The investment management fee schedule for the composite is 1.00% of assets under management. Actual investment advisory fees incurred by clients may vary depending on fee schedule and portfolio size. Management fee schedules are available upon request or may be found in Part 2A of Horizon Investment Services’ Form ADV.

The Top 15 Utility Composite was created October 31, 2011.

Past performance is no guarantee of future results.