TORONTO, April 26, 2012 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. ("AlphaPro") are pleased to announce the launch of the Horizons Morningstar Hedge Fund Index ETF, (the "Hedge Fund ETF"), the first ETF in Canada that will allow investors to get hedge fund-type exposure for their portfolios through an index strategy.
Class E units and Advisor Class units of the Hedge Fund ETF will begin trading tomorrow on the Toronto Stock Exchange ("TSX") under the ticker symbols below.
|Name of ETF||TSX Ticker Symbol|
|Class E Units|| Advisor Class
|Horizons Morningstar Hedge Fund Index ETF||HHF||HHF.A|
The Hedge Fund ETF seeks investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that replicate the performance of the Morningstar® Broad Hedge Fund IndexSM (the "Index"), hedged to the Canadian dollar.
The Index is a broad-based hedge fund index developed by Morningstar, Inc., which contains more than 500 constituent hedge funds. The Index seeks to capture the performance and behaviour of highly liquid hedge funds offering exposure to a wide variety of core and category trading strategies but is itself not investable.
"In our opinion, Morningstar has built the world's best hedge fund index, which captures the most important aspects of investing in hedge funds, such as absolute returns, portfolio diversification and lower volatility," said Howard Atkinson, CEO of Horizons ETFs.
The Hedge Fund ETF does not invest directly in the constituent hedge funds of the Index. Instead, it seeks to replicate as closely as possible the performance of the Index using an innovative replication strategy licensed from National Bank of Canada, which will be implemented by Fiera Capital Corporation. The replication strategy will primarily use liquid futures contracts on several different asset classes, including equity indices, currencies, fixed income securities and commodities.
"The Hedge Fund ETF offers investors an index strategy with exposure to the performance of a broad group of hedge funds. Just like in stock investing, the returns of an index are often more compelling than investing in the individual constituent names," said Mr. Atkinson. "The vast majority of Canadian investors can't invest in privately offered hedge funds, but through this ETF, they have a cost-effective way to gain diverse hedge fund-type exposure."
Commissions, trailing commissions, management fees and expenses all may be associated with investment in the Hedge Fund ETF. The Hedge Fund ETF is not guaranteed, its value will change frequently and past performance may not be repeated. The Hedge Fund ETF may have exposure to leveraged investment techniques that magnify gains and losses and which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Please read the prospectus before investing.
The Hedge Fund ETF is not sponsored, endorsed, sold, or promoted by Morningstar, Inc. or any of its affiliates and none of these parties make any representation, warranty or condition regarding the advisability of buying, selling or holding units of the Hedge Fund ETF. Complete trademark and service-mark information is available at www.horizonsetfs.com/pub/en/Trademark.aspx.
The Hedge Fund ETF has closed the offering of its initial Class E units and Advisor Class units and will begin trading tomorrow on the TSX when the market opens in the 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 84 ETFs listed on the TSX, the Horizons ETFs family makes up one of the largest families 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:
Howard Atkinson, CEO, Horizons Exchange Traded Funds Inc., (416) 777-5167 [email protected]