TORONTO, Dec. 13 /CNW/ - Jovian Capital Corporation ("Jovian") (JOV:TSX) and its subsidiary AlphaPro Management Inc. ("AlphaPro"), manager of the Horizons AlphaPro family of exchange traded funds,
have launched Canada's first actively managed floating rate bond
exchange traded fund, the Horizons AlphaPro Floating Rate Bond ETF (the "Floating Rate Bond ETF" or "HFR").
The Floating Rate Bond ETF will begin trading today on the Toronto Stock
Exchange under the symbol HFR. The sub-advisor to the Floating Rate
Bond ETF is Natcan Investment Management Inc. ("Natcan").
The investment objective of the Floating Rate Bond ETF is to generate
income that is consistent with prevailing short-term corporate bond
yields while stabilizing its market value from the effects of interest
The Floating Rate Bond ETF invests primarily in a portfolio of Canadian
debt securities and hedges the portfolio's interest rate risk to
generally maintain a portfolio duration of less than two years. It may
also invest in debt securities of U.S. companies, directly, or through
investments in securities of other investment funds, including exchange
traded funds. The Floating Rate Bond ETF may use derivatives, including
interest rate swaps, to deliver a floating rate of income. To the best
of its ability, the Floating Rate Bond ETF will seek to hedge its
non-Canadian dollar currency exposure to the Canadian dollar at all
"The Floating Rate Bond ETF is designed to give investors exposure to a
portfolio of quality corporate bond issuers while earning a yield that
is anticipated to move as short-term interest rates change," said Ken McCord, President of AlphaPro "This is the third ETF we've launched that is sub-advised by Natcan.
They have done an excellent job in managing the Horizons AlphaPro
Corporate Bond ETF and we expect the same level of exceptional
portfolio management on this ETF as well as the recently launched
Horizons AlphaPro Preferred Share ETF."
Natcan will continue to use a comprehensive bond selection process
similar to that which it uses for the Horizons AlphaPro Corporate Bond
ETF to find quality corporate issues for the Floating Rate Bond ETF's
portfolio. Natcan expects the Floating Rate Bond ETF's initial
portfolio will hold between 25 and 40 issues, have an average duration
of less than 1-year and an average S&P credit rating of A-.
The Floating Rate Bond ETF is initially expected to use an interest rate
swap overlay to help achieve its duration target while allowing the
yield on the portfolio to fluctuate or float with prevailing Canadian
short-term interest rates.
"A corporate bond portfolio that offers a floating interest rate can
give income seeking investors peace of mind in knowing that their
investment is expected to provide some measure of protection against
changing interest rates," Mr. McCord said. "We're offering an investment solution that potentially delivers a much
lower risk profile than the majority of corporate bond and high yield
options currently available to Canadian investors."
The Floating Rate Bond ETF has closed the offering of its initial units
and will begin trading on the Toronto Stock Exchange when the market
opens this morning.
References to HFR's initial portfolio composition above are only
descriptions of Natcan's current expectation; the composition of the
portfolio may change at any time as market conditions change and
investment opportunities arise. Commissions, management fees and
expenses all may be associated with an investment in the Floating Rate
Bond ETF. The Floating Rate Bond ETF is not guaranteed, its value
changes frequently and past performance may not be repeated. Please read the prospectus before investing.
About Natcan Investment Management (www.natcan.com)
Founded in 1990, Natcan Investment Management Inc. is a subsidiary of
the National Bank of Canada. Since the firm's founding, Natcan has
privileged shared ownership between the parent company and its key
professionals. Recognized as a leading portfolio management firm in
Canada, Natcan provides investment solutions to institutional clients,
and acts as sub-advisor for mutual funds and private wealth portfolios.
With approximately $25 billion in assets under management as of
September 30, 2010, the firm has about 45 investment professionals
across its Montreal and Toronto offices.
About AlphaPro Management Inc. (www.HAPETFs.com)
AlphaPro is an innovative financial services company specializing in
actively managed exchange traded funds with assets under management of
approximately $490 million as of November 30, 2010. AlphaPro is a
subsidiary of BetaPro Management Inc. ("BetaPro"). BetaPro is Canada's largest provider of leveraged, inverse leveraged
and inverse ETFs. BetaPro manages approximately $2.4 billion in assets
as of November 30, 2010. BetaPro is a subsidiary of Jovian.
About Jovian Capital Corporation (www.joviancapital.com)
Jovian acquires, creates and grows financial services companies
specializing in wealth and asset management. The Jovian group of
companies (AlphaPro Management Inc., BetaPro Management Inc., Horizons
Exchange Traded Funds Inc., Hahn Investment Stewards & Company Inc.,
Horizons Funds Inc., JovFunds Management Inc., JovInvestment Management
Inc., Leon Frazer & Associates Inc., MGI Financial Inc., MGI Securities
Inc., MGI Securities (USA) Inc. and T.E. Wealth) manages $12.5 billion
of client assets ($7.5 billion in assets under management and $5.0
billion in assets under administration). Additional information is
available at www.sedar.com.
SOURCE Jovian Capital Corporation
For further information: For further information:
Philip Armstrong, Chief Executive Officer, Jovian Capital Corporation, (416) 933-5752;
Don Sangster, Investor Relations, Jovian Capital Corporation, (416) 933-5744; or
Ken McCord, President, AlphaPro Management Inc., (416) 933-5746.