Horizons ETFs Launches Broad Commodity Index ETF
TORONTO, Feb. 26, 2013 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. ("AlphaPro") are pleased to announce the launch of the Horizons Auspice Broad Commodity Index ETF ("HBR"), an innovative alternative strategy ETF that offers investors diversified, tactical long exposure to up to 12 different commodity futures in the energy, metals and agricultural sectors.
HBR is designed to track, before fees and expenses, the Auspice Broad Commodity Excess Return Index (the "Auspice Index"), hedged to the Canadian dollar. The Auspice Index is a commodity futures based index developed by Calgary-based Auspice Capital Advisors Ltd. ("Auspice"). Auspice is a leader in the design and execution of systematic commodity trading strategies in Canada, and a seasoned manager of commodity risk.
The Auspice Index uses a quantitative trend-following methodology that seeks to identify and capture uptrends in the commodity futures markets. It is tactically positioned either long or flat (zero weight) in each of the commodity futures it covers, depending on the direction of the prevailing trend.
The Auspice Index is positioned long or flat in the futures of 12 diverse commodities: crude oil, natural gas, heating oil, gasoline, gold, silver, copper, corn, soybeans, wheat, cotton and sugar. If the Auspice methodology triggers a buy signal on a particular commodity, the Index will take a long position in futures contracts on that commodity. Conversely, a sell signal on a particular commodity will prompt the Index to take a flat (zero weight) position in that commodity which is essentially moved to cash.
Class E units and Advisor Class units of HBR will begin trading tomorrow morning on the Toronto Stock Exchange ("TSX") under the ticker symbols shown below:
|TSX Ticker Symbol|
|Class E Units||Advisor Class Units|
|Horizons Auspice Broad Commodity Index ETF||HBR||HBR.A|
"Investing in commodity futures can be difficult for buy-and-hold investors, who can be punished in volatile markets, even if they make the right long-term directional call on a commodity. Nevertheless, commodities are an important asset class, and they should be considered as part of a diversified portfolio since they historically have demonstrated low correlation to both stocks and bonds." said Howard Atkinson, CEO of Horizons ETFs. "The Horizons Auspice Broad Commodity Index ETF attempts to take the guesswork out of commodity investing, offering investors exposure to commodity futures through an index that has a proven track record of strong performance."
The Auspice Index methodology incorporates the best practices developed by the experienced portfolio management team at Auspice, and includes tactical component weighting, quantitative risk management and an optimized contract roll strategy.
"We're very excited to partner with Auspice once again to offer another sophisticated index strategy to all Canadian investors, regardless of portfolio size or experience," Mr. Atkinson said. "HBR, like our other Auspice offering, will endeavour to provide superior risk-adjusted returns and portfolio diversification benefits for Canadian retail and institutional investors alike."
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in HBR. HBR is not guaranteed, its value changes frequently and past performance may not be repeated. Please read the prospectus before investing.
HBR has closed the offering of its initial Class E and Advisor Class units and will begin trading tomorrow on the TSX when the market opens.
About Horizons Exchange Traded Funds Inc. (www.HorizonsETFs.com)
Horizons ETFs is an innovative financial services company offering the Horizons ETFs family of exchange-traded funds (ETFs). The Horizons ETFs family includes a broadly diversified range of investment tools with solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. With approximately $4.2 billion in assets under management and 77 ETFs listed on the TSX, the Horizons ETFs family is one of the largest in Canada. Horizons ETFs is a subsidiary of Horizons ETFs Management (Canada) Inc. and a member of the Mirae Asset Financial Group.
SOURCE: Horizons Exchange Traded Funds Inc.For further information:
Howard Atkinson, CEO, Horizons Exchange Traded Funds Inc.
(416) 777-5167, firstname.lastname@example.org