TORONTO, Feb. 29, 2012 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. are pleased to announce the launch of the Advisor Class of the Horizons S&P/TSX 60 130/30™ Index ETF ("HAH").
The Advisor Class is a new class of units of HAH through which advisors will be directly compensated with a service fee on a trailing quarterly basis (the "Service Fee"). The only difference between the Advisor Class units and the existing Class E units of HAH is that the Advisor Class charges a higher management fee that includes the 0.75% annual Service Fee paid to the advisor. The purchase and sale process for the Advisor Class is identical to that of any other exchange traded fund listed on the Toronto Stock Exchange ("TSX").
The Advisor Class of HAH will begin trading on the TSX today under the ticker symbol HAH.A.
HAH seeks investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to the performance of the S&P/TSX 60 130/30 Strategy Index™ (the "Long/Short Index").
The Long/Short Index is designed to measure the performance of an investment strategy that establishes over and under-weight positions relative to the S&P/TSX 60™ Index (the "TSX 60 Index"), its parent index, by applying a qualitative and quantitative factor ranking process.
Using this process, on each quarterly rebalance day the Long/Short Index will include a core 100% long position in the TSX 60 Index. The methodology's ranking process then identifies 10 equity issuers in the TSX 60 Index and overweights each of these issuers by three percentage points, and then identifies another 10 equity issuers in the TSX 60 Index and underweights each of these issuers by three percentage points.
"We are very pleased to offer Advisor Class units on this innovative indexing strategy, which gives advisors more flexibility in how they choose to buy this ETF for their client accounts." said Howard Atkinson, CEO of Horizons ETFs. "The Long/Short Index has demonstrated over the past two years that not all indices behave the same as it has seen superior performance when compared to the TSX 60 Index which has the same constituents. Gaining exposure to the Long/Short Index for their clients as a core holding should be top of mind for advisors."
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in HAH. HAH is not guaranteed, its value will change frequently and past performance may not be repeated. Please read the prospectus before investing.
HAH has closed the initial offering of its Advisor Class units which begin trading today on the TSX when the market opens this morning.
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 more than $3.3 billion in assets under management and 78 ETFs listed on the Toronto Stock Exchange, the Horizons ETFs family makes up the largest selection of ETFs in Canada. Horizons ETFs is a subsidiary of Horizons ETFs Management (Canada) Inc. and a member of the Mirae Asset Financial Group.
For further information:
Martin Fabregas, Investor Relations, (416) 601-2508