Horizons first dual sub-advised ETF gives investors access to emerging market credit
TORONTO, Aug. 1, 2018 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs") has launched the Horizons Active Emerging Markets Bond ETF ("HEMB" or the "ETF"). Units of the exchange traded fund ("ETF") will begin trading today on the Toronto Stock Exchange ("TSX"), under the ticker symbol HEMB.
HEMB seeks to generate income and long-term capital growth by investing primarily in the fixed and floating rate debt securities of emerging market issuers – a market segment that has strengthened in recent years and still offers higher yields than North American bonds.
Sub-advised by both Fiera Capital Corporation ("Fiera Capital") and Mirae Asset Global Investments (USA) LLC ("Mirae Asset") – two leading financial services firms that, together with their affiliates, have approximately CAD $300 billion in combined assets under management.
"With the constantly evolving conditions within emerging bond markets, we believe active management is the only way to go for this sector," said Steve Hawkins, President and Co-CEO of Horizons ETFs. "It's exciting to offer this product – Fiera Capital and Mirae Asset are both globally recognized for their expertise in global bond investing. We're confident their combined efforts will result in a superior way for Canadian investors to access emerging market bonds."
Fiera Capital oversees the portfolio strategy of the ETF's global asset allocation and security selection of sovereign bonds. Driven by macroeconomic views, Fiera Capital's assigned management responsibility of HEMB will be controlled by its tactical asset allocation committee. The target mix for sovereign and quasi-sovereign bonds in the HEMB portfolio is initially approximately 80%.
"Emerging market bonds have become a popular choice among investors as of late, and for good reason. In previous months, we've seen strong regional performance amidst a robust global market," said François Bourdon, Global Chief Investment Officer at Fiera Capital. "Through HEMB, investors gain exposure to those regions and governments that are well on their way to a more stable credit environment."
Mirae Asset's investment management team oversees the security selection of the corporate issuances in the portfolio. The target mix for corporate credit in the HEMB portfolio is initially approximately 20%.
"Recent positive global market trends have boosted the credit worthiness of many corporations within Emerging Markets, making them attractive investments, that under different conditions, might otherwise go overlooked," said Joon Hyuk Heo, Mirae Asset's Head of Global Fixed Income Investments in New York. "Our corporate debt strategy will target the most attractive securities given the market conditions and sound fundamentals."
The ETF will have global exposure to fixed rate and floating rate instruments issued by sovereign, quasi-sovereign, supranational, and corporate issuers. All USD currency exposure is hedged back to Canadian dollars.
HEMB has closed its initial offering of units and will begin trading today on the TSX when the market opens this morning.
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has more than $10 billion of assets under management and 81 ETFs listed on major Canadian stock exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.
Mirae Asset USA is a member of the Mirae Asset Global Investments Group. Established in 2008, Mirae Asset USA, an affiliate of the Manager, is a Registered Investment Advisor firm committed to providing clients with global access to investment opportunities around the world. Mirae Asset USA focusses on emerging markets and active, bottom-up Asia-centric strategies that leverage the firm's emerging market heritage and on-the-ground presence to deliver high-conviction portfolios and quality long-term performance. As at June 30, 2018, Mirae Asset USA has assets under management of CAD $1.3 billion.
Fiera Capital Corporation, a leading independent asset management firm, is rapidly acquiring a global presence and reputation. With more than CAD $139 billion in assets under management as at June 30, 2018, the firm offers to institutional, private wealth and retail markets full-service, integrated portfolio-management solutions that span a broad array of traditional and alternative asset classes. Clients stand to benefit from Fiera Capital's depth of expertise, diversified offerings, and performance-driven entrepreneurial culture. The firm provides its best-in-class investment and asset allocation teams the necessary scope to responsibly pursue their particular strategies as boutique investment managers, backed by the substantial organizational and distribution resources befitting an industry leader.
Horizons ETFs is a member of Mirae Asset Global Investments. Commissions, management fees and expenses all may be associated with an investment in Active Emerging Markets Bond ETF managed by Horizons ETFs Management (Canada) Inc. (the "ETF"). The ETF is not guaranteed, its values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the ETF. Please read the prospectus before investing.
SOURCE Horizons ETFs Management (Canada) Inc.
For further information: For investor inquiries:Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745, [email protected]; For media inquiries: Contact Jonathan McGuire, External Communications Manager, Horizons ETFs Management (Canada) Inc., (416) 640-2956, [email protected]