New ETF gives investors timely access to high dividend yielding companies listed in Hong Kong
TORONTO, Jan. 12, 2016 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs") is pleased to announce the launch of the Horizons China High Dividend Yield Index ETF ("HCN"), which provides exposure to high dividend yielding Hong Kong-listed equity securities.
Units of the ETF will begin trading today on the Toronto Stock Exchange ("TSX") in Canadian dollars under the ticker symbol "HCN".
China is currently the world's second largest economy (by GDP), surpassing $10 trillion USD in 2014, and predicted to more than double to $22 trillion by 2030. China's growth rate is expected to range between 6% and 8% over the next few years, according to Mirae Asset Global Investments ("Mirae Asset") – nearly four times the growth rate expected for developed economies such as the U.S. and Canada.
HCN seeks investment results that, before fees and expenses, generally correspond to the performance of the Hang Seng High Dividend Yield Index (the "Underlying Index"). The Underlying Index is designed to measure the performance of 50 of the highest dividend yielding equity securities, which include REITs, in the Hang Seng Index.
"Historically, many Canadian investors sought exposure to emerging Asia by holding North American multi-national stocks which have business interests in Asian economies," said Steve Hawkins, Co-CEO of Horizons ETFs. "The dynamics of the Chinese economy are changing and, in order to really capture China's long-term economic growth, investors should consider the direct exposure that HCN provides."
Through HCN, investors gain exposure to China's robust economic growth through equity securities that have a consistent three-year track record of paying dividends. A significant number of the Hong Kong-listed dividend-paying companies which HCN provides exposure to are China-based companies or have substantial business interests in mainland China.
"By investing in top dividend paying companies listed on the Hong Kong Stock Exchange, investors are not only getting timely exposure to Chinese companies with consistent dividend yields, but are also getting the added benefit of Hong Kong's modern market reforms, regulatory oversight and structure," added Mr. Hawkins.
Beginning with the entire universe of large-cap and mid-cap issuers in the Hang Seng Index, the Hang Seng High Dividend Yield Index is created by screening for three factors: liquidity, dividend-paying track record, while eliminating listings with the highest one-year volatility.
The Horizons Hang Seng High Dividend Yield ETF, listed on the Hong Kong Stock Exchange and managed by Mirae Asset Global Investments (Hong Kong) Limited, a subsidiary of Horizons ETFs' parent company Mirae Asset, also tracks the Underlying Index.
"This is essentially the first cross-listed mandate offered in Canada that also exists in our Hong Kong-based ETF business," said Taeyong Lee, Co-CEO of Horizons ETFs and President, Mirae Asset's Global ETF Business. "HCN is a great example of the synergy that the Horizons ETFs and Mirae Asset partnership has brought to the Canadian ETF landscape, combining the Asian market expertise of Mirae Asset with Horizons ETFs' expertise in launching low-cost, innovative ETF solutions in Canada. It's a unique Asian-equity solution designed to appeal to the Canadian investor."
HCN has closed the offering of its initial units and it will begin trading on the TSX when the market opens today.
About Mirae Asset Global Investments (www.MiraeAsset.com)
Mirae Asset Global Investments Group ("Mirae Asset") has been one of Asia's largest independent asset managers since 1997 and the world's largest active investors in emerging market equities. Globally, Mirae Asset has in excess of US$75 billion of assets under management (as at December 31, 2015) across a diversified platform to offer market-leading investment services and solutions in traditional equity and fixed income products, exchange traded funds and alternative strategies, such as real estate, private equity and hedge funds. Headquartered in Korea, Mirae Asset has a presence in 12 countries worldwide, including Australia, Brazil, Canada, China, Colombia, Hong Kong, India, Korea, Taiwan, United Kingdom, USA and Vietnam. Mirae Asset includes over 120 investment professionals dedicated to asset management in Asia and other emerging markets.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. are innovative financial services companies 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. Horizons ETFs has more than $5.3 billion of assets under management and with 70 ETFs listed on the Toronto Stock Exchange, as at December 31, 2015, the Horizons ETFs family makes up one of the largest families of ETFs in Canada. Horizons ETFs Management (Canada) Inc. and AlphaPro Management Inc. are members of the Mirae Asset Global Investments Group.
Horizons ETFs is a member of Mirae Asset Global Investments. Commissions, management fees and applicable sales taxes all may be associated with an investment in the exchange traded funds managed by Horizons ETFs Management (Canada) Inc. (the "ETFs"). The ETFs are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the ETFs. Please read the prospectus before investing.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Horizons ETFs undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.
The mark and name "Hang Seng High Dividend Yield Index" (the "Index") is proprietary to Hang Seng Data Services Limited ("HSDS") which has licensed its compilation and publication to Hang Seng Indexes Company Limited ("HSIL"). HSIL and HSDS have agreed to the use of, and reference to, the Index by Horizons ETFs in connection with HCN. However, neither HSIL nor HSDS warrants, represents or guarantees to any person the accuracy or completeness of the Index, its computation or any information related thereto and no warranty, representation or guarantee of any kind whatsoever relating to the Index is given or may be implied. Neither HSIL nor HSDS accepts any responsibility or liability for any economic or other loss which may be directly or indirectly sustained by any person as a result of or in connection with the use of and/or reference to the Index by Horizons ETFs in connection with HCN, or any inaccuracies, omissions or errors of HSIL in computing the Index. Any person dealing with HCN shall place no reliance whatsoever on HSIL and/or HSDS nor bring any claims or legal proceedings against HSIL and/or HSDS in any manner whatsoever. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker or other person dealing with HCN and HSIL and/or HSDS and must not be construed to have created such relationship.
SOURCE Horizons ETFs Management (Canada) Inc.
For further information: Olivia Fazekas, Manager, Public Relations, Horizons ETFs Management (Canada) Inc., (416) 640-8255, [email protected]