New organization will help raise awareness of $40 billion Canadian ETF
industry through education and outreach to private and public sector
TORONTO, May 19 /CNW/ - Three of Canada's leading exchange traded fund
("ETF") companies have agreed to collectively launch the Canadian ETF
Association (the "CETFA"), an independent national association that will represent and promote
the Canadian ETF industry.
The focus of the CETFA is to help educate institutional and retail
investors as well as the advisor community on the benefits and uses of
ETFs, provide industry statistics and commentary on ETF related issues
to the Canadian financial media and advance industry issues with
regulators, government agencies and interested third parties.
Increasingly, Canadian investors are choosing to use ETFs for their
investment needs. Over the last five years, assets in Canadian-listed
ETFs have grown an average of 27 per cent annually, from $12.3 billion
in December 31, 2005 to $40.8 billion currently. There are almost 200
ETFs listed on the TSX as of April 30, 2011.
The CETFA expects to publish monthly reports on ETF sales activity in
the future. These reports will include statistics on total assets under
management and industry net sales figures broken down by member firm
and ETF classification.
Membership in CETFA will be open to any Canadian Exchange Traded Fund
provider. Thus far, three ETF providers are involved in the initiative,
BMO ETFs, Claymore Investments Inc., and Horizons Exchange Traded Funds
A principal of each member company is automatically given a managing
director role. The CETFA will initially have three managing directors
who are senior executives representing their respective firms. They
Rajiv Silgardo, Co-CEO, BMO Global Asset Management;
Som Seif, President and Chief Executive Officer, Claymore Investments,
Howard Atkinson, President of Horizons Exchange Traded Funds Inc.
A chairman is selected from amongst the managing directors. The chair
will serve as spokesperson for the organization for one term of a yet
undetermined time period. Upon the completion of the term, the chair
role will be given to one of the other CETFA managing directors.
It has been decided that the first chair of the CETFA for the upcoming
term will be Howard Atkinson.
"I've been heavily involved in the Canadian ETF industry for more than
10 years now, and it has always been my hope that the industry would
reach a level where it could create an industry organization like the
CETFA," Mr. Atkinson said. "Due to the increasing prevalence of ETFs there has been a need to
increase broad-based ETF investor education as well as a need to
address growing regulatory and industry challenges. CETFA is going to
allow the ETF industry to speak with one voice on these issues, which
will only improve how the ETF industry serves its unitholders as well
as enhance the already wide range of benefits that ETFs can offer
"We are proud to be a part of the formation of the CETFA, and working
with other ETF providers to offer greater transparency and education to
the Canadian ETF landscape" Mr. Seif said. "I look forward to the Association playing an integral role working with
government regulators on ETF related industry issues, as well as
developing ongoing practice standards."
"BMO is delighted to be one of the founding members of the CETFA," said Mr. Silgardo. "Since the launch of BMO's ETF business less than two years ago, we've
seen our assets under management grow to more than $2 billion. This is
an indication that, increasingly, Canadians are discovering the value
of including ETFs in their investment portfolios. We look forward to
working with our colleagues in the CETFA to help increase awareness of
ETFs across Canada."
About the CETFA
The Canadian ETF Association is the national body of exchange traded
fund providers. Canadian investors have approximately $41 billion
invested in nearly 200 Canadian-listed ETFs. As ETF usage continues to
grow in Canada, the CETFA will seek to educate Canadians on the
appropriate usage of exchange traded funds, as well as work proactively
with members and regulators to ensure the ETF industry adopts best
About BMO Asset Management Inc. (www.etfs.bmo.com)
BMO Asset Management Inc. is a Canadian institutional money manager with
more than $40 billion in total assets under management. It is part of
BMO Financial Group. Clients include pensions, endowments, trusts,
insurance company reserves, corporate surpluses and mutual funds.
About Claymore Investments, Inc. (www.claymoreinvestments.ca)
Claymore Investments, Inc. ("Claymore") is a Canadian leader in bringing
intelligent, low cost exchange-traded funds in Canada through its
family of 30 ETFs and 2 closed-end funds across broad asset classes
including core equity, global sectors, fixed income and commodities
with over $6.3 billion in assets under management as of April 30, 2011.
Claymore Investments, Inc. is a wholly-owned subsidiary of Guggenheim
Funds Services Group, Inc., a financial services and asset management
company based in the Chicago, Illinois area and an indirect subsidiary
of Guggenheim Partners, LLC, ("Guggenheim") a global, diversified
financial services firm with more than $100 billion in assets under
supervision. Guggenheim, through its affiliates, provides investment
management, investment advisory, insurance, investment banking, and
capital markets services. The firm is headquartered in Chicago and New
York with a global network of offices throughout the United States,
Europe, and Asia.
About Horizons Exchange Traded Funds Inc. (www.horizonsetfs.com)
Horizons Exchange Traded Funds Inc. ("Horizons ETFs") is an innovative
financial services company 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 $3 billion in assets under
management and more than 70 listings on the Toronto Stock Exchange, the
Horizons ETFs family makes up the largest selection of ETFs in Canada.
Horizons ETFs is a member of the Jovian Capital Corporation (TSX: JOV)
group of companies.
SOURCE HORIZONS EXCHANGE TRADED FUNDS
For further information:
Chair: Howard Atkinson, President, Horizons Exchange Traded Funds Inc.,
(416) 777-5167 or email@example.com
Managing Director: Rajiv Silgardo. Co-CEO, BMO Global Asset Management.,
To speak with Rajiv Silgardo, please contact: Nini Krishnappa, 416-867-4897 or firstname.lastname@example.org
Managing Director: Som Seif, President & CEO, Claymore Investments, Inc.,
(416) 813-2006 or email@example.com