TORONTO, Jan. 24, 2020 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs") will change the names of two of its short-term fixed
income ETFs at the close of business on Friday, January 24, 2020.
The Horizons Active Floating Rate Bond ETF will be changed to
the Horizons Active Ultra-Short Term Investment Grade Bond ETF
("HFR"), while the Horizons Active US Floating Rate Bond
(USD) ETF will be changed to the Horizons Active Ultra-Short Term
US Investment Grade Bond ETF ("HUF"). Since inception, each
of HFR and HUF have maintained an average portfolio duration of
less than one year. A prospectus that reflects the new names and
clarifies the investment strategies of HFR and HUF, including that
each ETF will maintain a portfolio duration of less than one year,
will be filed following the date of this press release, and will be
available at www.sedar.com or the Manager's website at
www.horizonsetfs.com
Current
Name
|
Previous
Name
|
Ticker
|
Management
Fee*
|
Net
Assets
(CAD)
Millions
|
Horizons Active
Ultra-Short Term
Investment Grade
Bond ETF
|
Horizons Active
Floating Rate Bond
ETF
|
HFR
|
0.40%
|
$658.5
|
Horizons Active
Ultra-Short Term US
Investment Grade
Bond ETF
|
Horizons Active
US Floating Rate
Bond (USD) ETF
|
HUF /
HUF.U
|
0.40%
|
$37.5
|
* Plus applicable
sales tax.
Source: Horizons ETFs, as at January 20, 2020
|
"The name changes to HFR and HUF are intended to
more accurately reflect the underlying investment strategies that
have been, and continue to be, employed by the portfolio managers
of these ETFs," said Steve
Hawkins, President and CEO, Horizons ETFs. "Since their
launch, these ETFs have provided investment-grade corporate bond
exposure with a portfolio duration of less than one year, which
would clearly identify them as 'ultra-short' fixed income
strategies."
In Canada, ultra-short term
investment-grade bond ETFs represented more than $8 billion in ETF flows in 2019, with a market
share of 12% among other fixed income maturities. Similarly,
ultra-short term bond ETFs also captured 12% of the market share of
fixed income flows in the United
States in 2019. ¹
In November 2019, HFR received the
2019 Lipper Fund Award from Refinitiv in the Canadian Short Term
Fixed Income ETF category² for the three-year period ending
July 31, 2019, ranking first out of
23 ETFs eligible for consideration. The 2019 Lipper Fund
Awards recognize funds that deliver consistently strong
risk-adjusted performance relative to their peers, for various time
periods ending July 31, 2019.
There are no changes to the management fees, ticker symbols or
investment strategies of HFR or HUF. HUF is also available in a
U.S. dollar version under ticker symbol "HUF.U".
About Horizons ETFs Management (Canada) Inc.
(www.HorizonsETFs.com)
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 $10.5 billion of
assets under management and 91 ETFs listed on major Canadian stock
exchanges.
Commissions, management fees and expenses all may be
associated with an investment in exchange traded products (the
"Horizons Exchange Traded Products") managed by Horizons ETFs
Management (Canada) Inc. The
Horizons Exchange Traded Products are not guaranteed, their values
change frequently and past performance may not be repeated. The
prospectus contains important detailed information about the
Horizons Exchange Traded Products. Please read the relevant
prospectus before investing.
1 Source: National Bank Financial Group -
Canada and U.S. Full-Year 2019 ETF
Flows, January 9 2020
2 Horizons Active Floating Rate Bond ETF (HFR)
was awarded Canada's 2019 Lipper
Fund Awards from Refinitiv in the Canadian Short Term Fixed Income,
category for the three-year period ending July 31, 2019, out of a total of 23 ETFs.
The Lipper Fund Awards, granted annually, highlight funds and
fund companies that have excelled in delivering consistently strong
risk-adjusted performance relative to their peers. The Lipper Fund
Awards are based on the Lipper Leader for Consistent Return rating,
which is a risk-adjusted performance measure calculated over 36, 60
and 120 months. The highest 20% of funds in each category are named
Lipper Leaders for Consistent Return and receive a score of 5, the
next 20% receive a score of 4, the middle 20% are scored 3, the
next 20% are scored 2 and the lowest 20% are scored 1. The fund
with the highest Lipper Leader for Consistent Return (Effective
Return) value in each eligible classification per award universe
wins the Lipper Fund Award. Lipper Leader for Consistent Return
rating are subject to change monthly. The asset class group award
winner is determined based on the lowest average weighted decile
rank of the eligible funds per asset class and group. There were
six (6) fund groups in this category, including Horizons ETFs. For
more information, see lipperfundawards.com.
Although Lipper makes reasonable efforts to ensure the accuracy
and reliability of the data contained herein, the accuracy is not
guaranteed by Lipper.
Annualized Performance*
ETF
|
1 Year
(%)
|
3 Year
(%)
|
5 Year
(%)
|
SIR
(%)
|
Inception
Date
|
Lipper Leader
Ranking
|
3
Years
|
5
Years
|
HFR
|
3.27
|
2.59
|
1.98
|
2.40
|
10/10/2012
|
5
|
5
|
*As at July 31, 2019. The
indicated rates of return are the historical annual compounded
total returns including changes in per unit value and reinvestment
of all dividends or distributions and do not take into account
sales, redemption, distribution or optional charges or income taxes
payable by any security holder that would have reduced returns. The
rates of return shown in the table are not intended to reflect
future values of the ETF or returns on investment in the ETF. Only
the returns for periods of one year or greater are annualized
returns.
SOURCE Horizons ETFs Management (Canada) Inc.