TORONTO, Oct. 10, 2012 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. ("AlphaPro") are pleased to announce the launch of two new actively managed exchange traded funds ("ETFs"), a core Canadian bond ETF and an emerging market dividend ETF, which will each offer Canadian investors innovative ways to enhance the performance of their income portfolios.
Horizons Active Cdn Bond ETF ("HAD") is an actively managed ETF that seeks long-term returns primarily through maximized interest income and moderate capital appreciation. It invests primarily in a portfolio of high-quality Canadian fixed income securities denominated in Canadian dollars including government and corporate bonds.
HAD is sub-advised by Fiera Capital Corporation ("Fiera Capital"), one of Canada's leading investment managers , which oversees more than $54 billion in assets under management.
Horizons Active Emerging Market Dividend ETF ("HAJ") is an actively managed ETF that seeks long-term returns consisting of regular dividend income and modest long-term capital growth. HAJ invests primarily in equity and equity related securities of companies with operations in emerging market economies.
HAJ will seek to outperform the emerging market stock universe by using an innovative dividend stock selection process developed by the Systematic Strategies Team of the HAJ's sub-advisor, Guardian Capital LP ("Guardian Capital").
HAD and HAJ will begin trading tomorrow morning on the Toronto Stock Exchange ("TSX") under the below ticker symbols with both Class E units and Advisor Class units.
|Name of ETF||TSX Ticker Symbol|
|Class E Units|| Advisor Class
|Horizons Active Cdn Bond ETF||HAD||HAD.A|
|Horizons Active Emerging Market Dividend ETF||HAJ||HAJ.A|
HAD is the first actively managed ETF launched by Horizons ETFs that gives investors access to a portfolio consisting primarily of treasury and government-backed bonds. Once again, Horizons has teamed up with Fiera Capital, which has delivered a strong track record of performance on the other six ETFs it sub-advises for Horizons ETFs.
Fiera Capital's Chris Laurie, Vice President and Senior Portfolio Manager and Derek Brown, Assistant Portfolio Manager will oversee the management of HAD's portfolio. They already oversee more than approximately $2 billion in assets under management in institutional tactical fixed income strategies for Fiera Capital.
"We recognize how important it is for Canadians to have exposure to core bond holdings such as treasuries and government-backed bonds. As a firm we believe that bond indexing strategies are potentially risky in our current low-rate environment. Investors could potentially lose money in their bond portfolio if rates rise," said Howard Atkinson, CEO of Horizons Exchange Traded Funds Inc. "Chris and Derek will carefully monitor HAD's bond duration to minimize the negative impact of interest rate moves and maximize the potential for return."
HAJ is the third actively managed ETF offered by Horizons ETFs that is sub-advised by Guardian Capital. HAJ uses Guardian's proprietary GPS Stock Selection Process, which targets dividend stocks that offer a combination of dividend Growth, Payout and Sustainability to build a diversified portfolio that seeks to outperform the MSCI Emerging Markets Index on a total return basis.
Guardian Capital's Srikanth Iyer, Managing Director, Head of Systematic Strategies, Sam Baldwin, Portfolio Manager and Fiona Wilson, Portfolio Manager, will take on lead portfolio management responsibilities. They are supported by Guardian Capital's Systematic Equities Investment Team, which is comprised of a number of experienced investment professionals who focus on both the quantitative and qualitative aspects of stock selection.
"In our view, Guardian Capital is redefining dividend investing. We're tremendously happy with the performance they have delivered on the Horizons Global Dividend ETF, and we feel their proprietary investment approach will help increase the potential for outperforming the MSCI Emerging Markets Index," Mr. Atkinson said. "Canadians in general tend to have a low amount of direct investment exposure to emerging market stocks. HAJ is a great way for them to get direct exposure to fast growing economic regions with the potential to earn an attractive monthly income."
Commissions, trailing commissions, management fees and expenses all may be associated with investments in HAD and HAJ. HAD and HAJ are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing.
HAD and HAJ have closed the offering of their initial Class E units and Advisor Class units and will begin trading tomorrow morning on the TSX when the market opens.
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 approximately $3.5 billion in assets under management and 81 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.
About Fiera Capital Corporation (www.fieracapital.com)
Fiera Capital Corporation is a leading publicly traded, independent investment firm. The firm is one of only a handful of full service, multi-product investment firms in Canada, offering clients a proven top tier track record in equity and fixed income management as well as depth and expertise in asset allocation and alternative investments.
About Guardian Capital LP (www.guardiancapital.com)
Guardian Capital LP is a member of the Guardian Capital Group which is a diversified financial services company founded in 1962 and celebrating its 50th year in business. Guardian Capital provides institutional and high net worth investment management services to clients and as of June 30, 2012 had $16.9 billion in assets under management and an additional $8.9 billion under administration.
SOURCE: Horizons Exchange Traded Funds Inc.
For further information:
Howard Atkinson, President & CEO, Horizons Exchange Traded Funds Inc., (416) 777-5167