TORONTO, Sept. 22, 2011 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") is pleased to announce that the assets under management in the
actively managed exchange traded funds ("Active ETFs") managed by its affiliate AlphaPro Management Inc. ("AlphaPro") surpassed $1 billion in assets this week. Horizons ETFs offer the
world's largest family of Active ETFs.
The majority of Canada's approximately $43 billion in exchange traded
funds ("ETF") assets are invested passively, tracking the price of an index or
commodity, and are not intended to outperform any sort of benchmark;
they merely deliver its returns. Active ETFs use professional portfolio
management and have an investment objective to attempt to either
deliver better returns than their benchmark or do a better job managing
In 2009, AlphaPro launched the world's first suite of Active ETFs. With
18 listings on the Toronto Stock Exchange to date, assets under
management have grown from zero to more than $1 billion in less than
three years (as of September 21, 2011).
"This is another major milestone for the Canadian ETF industry," said Howard Atkinson, CEO of Horizons ETFs. "In a relatively short amount of time, Canadian investors have embraced
the concept that, for certain investment strategies, it is possible for
a low-cost ETF to deliver comparable, if not better returns than an
indexing strategy or higher priced actively managed funds."
Mr. Atkinson first wrote about Active ETFs being the largest growth
opportunity for the global ETF industry in the 2003 version of his
book, The New Investment Frontier. The reasoning for this is simple: while index-based investing strategies
have grown in popularity, the lion's share of investment assets remain
in actively managed investment mandates.
The Canadian ETF industry now manages more than $43 billion in assets.
There is more than $750 billion of assets managed by Canadian mutual
funds, the vast majority of which are actively managed.
In fact, a recent study by the U.S.-based McKinsey & Company, entitled The Second Act Begins For ETFs, makes the argument that Active ETFs will be the next big growth market
for the burgeoning ETF industry. The report estimates that by the end
of the next decade there will be more than USD $1 trillion invested in
Active ETFs in the U.S. marketplace.
"If we apply the relative size of the mutual fund markets in Canada and
the U.S. to the McKinsey forecast, the Canadian Active ETF market would
rise to $67 billion over the next ten years," Mr. Atkinson said. "This makes sense, since the majority of Canadian financial advisors and
investors choose actively managed strategies for their investment
"There are more than 800 applications with the Securities Exchange
Commission (SEC) in the United States to launch Active ETFs. Many of
those filers are household name investment managers looking to launch
ETFs that offer similar investment strategies to their currently
existing pooled and mutual fund mandates. In my view, it's not a matter
of if, but when, we will see a lot of the popular funds in Canada being
re-launched as ETFs," Mr. Atkinson added.
About Horizons Exchange Traded Funds Inc. (www.HorizonsETFs.com) Horizons ETFs is an innovative financial services company offering the
Horizons ETFs family of 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 $3.3 billion in
assets under management and 75 ETFs listed on the TSX, the Horizons
ETFs family makes up the largest selection of ETFs in Canada. Horizons
ETFs is a member of the Jovian Capital Corporation group of companies.
SOURCE Horizons Exchange Traded Funds Inc.
For further information:
Howard Atkinson, CEO, Horizons Exchange Traded Funds Inc., (416) 777-5167 firstname.lastname@example.org