TORONTO, Oct. 2, 2013 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. are pleased to announce
the launch of the Horizons Active Floating Rate Preferred Share ETF ("HFP"), which will for the first time give Canadian investors the
opportunity to gain floating rate exposure from North American
preferred shares through an exchange traded fund.
Class E units and Advisor Class units of the HFP will begin trading
today on the Toronto Stock Exchange ("TSX") under the ticker symbols below.
Name of ETF
TSX Ticker Symbol
Class E Units
Advisor Class Units
Horizons Active Floating Rate Preferred Share ETF
HFP will seek to generate income consistent with prevailing short-term
preferred share yields while stabilizing its market value from the
effects of interest rate fluctuations. HFP will invest primarily in the
preferred shares of Canadian companies. It may also invest, to a lesser
extent, in the preferred shares of companies located in the United
States, as well as the fixed-income securities of Canadian and U.S.
issuers, including other income-generating securities and exchange
HFP will generally maintain a portfolio duration of less than two years.
Duration is an important metric generally used to gauge the interest
rate sensitivity of a fixed-income security that has a maturity, call
or reset date. Typically, the longer the duration of such a security,
the more sensitive its market price will be to interest rate
"Preferred shares have become popular with Canadian investors looking
for a higher level of tax-efficient income in today's low-rate
environment," said Howard Atkinson, President of Horizons ETFs. "However, preferred shares have demonstrated that their prices can be
just as sensitive to interest rate fluctuations as bond prices, as we
saw in June of this year, when a slight rise in rates caused a sharp
decline in the market prices of many preferred shares. We feel it's
important to bring to the market an ETF that can offer a floating rate
of income and a much lower risk profile than other options available to
Canadian preferred share investors."
HFP will be sub-advised by Fiera Capital Corporation ("Fiera"), one of the largest preferred share managers in Canada. It will be
overseen by the same portfolio management team that sub-advises the
Horizons Active Floating Rate Bond ETF (HFR:TSX) and the Horizons Active Preferred Share ETF (HPR:TSX).
"HFR, our floating rate bond ETF, has attracted more than $200 million
in assets over the last 12 months, which we attribute to growing
concerns over interest rates, as well as to Fiera's excellent
performance track record," said Mr. Atkinson. "HFP will offer a similar floating rate approach to preferred shares
combined with the exceptional preferred share management capabilities
HFP has closed the offering of its initial Class E units and Advisor
Class units and will begin trading on the TSX when the market opens
Commissions, trailing commissions, management fees and expenses all may
be associated with an investment in exchange traded funds. Exchange
traded funds are not guaranteed, their values change frequently and
past performance may not be repeated. The prospectus contains important
detailed information. Please read the prospectus before investing.
Certain statements contained in this news release constitute
forward-looking information within the meaning of Canadian securities
laws. Forward-looking information may relate to a future outlook and
anticipated distributions, events or results and may include statements
regarding future financial performance. In some cases, forward-looking
information can be identified by terms such as "may," "will," "should,"
"expect," "anticipate," "believe," "intend" or other similar
expressions concerning matters that are not historical facts. Actual
results may vary from such forward-looking information. Horizons ETFs
undertakes no obligation to update publicly or otherwise revise any
forward-looking statement whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.
About Fiera Capital Corporation (www.FieraCapital.ca)
With close to $66 billion in assets under management, Fiera is a
prominent Canadian investment management firm. It is one of only a
handful of independent investment firms providing extensive expertise
in Canadian active and structured fixed income, Canadian and foreign
equity, asset allocation and non-traditional investment solutions
through a broad range of strategies and services. Fiera believes that
integrated solutions diversified by asset class and investment style,
and supported by a disciplined risk management framework, are key to
achieving superior returns.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro
Management Inc. are innovative financial services companies offering
the Horizons ETFs family of exchange traded funds. 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 $4.1 billion in assets under management and 73 ETFs
listed on the TSX, the Horizons ETFs family makes up one of the largest
families of ETFs in Canada. Horizons ETFs Management (Canada) Inc. and
AlphaPro Management Inc. are members of the Mirae Asset Global
SOURCE: Horizons ETFs Management (Canada) Inc.
For further information:
Howard Atkinson, President, Horizons ETFs Management (Canada) Inc.
(416) 777-5167 or email@example.com