Lower Management Fees
Horizons ETFs is pleased to announce fee reductions on six of its actively managed ETFs. These changes in management fees come into effect on December 1, 2018 and are described below:
| ETF | Current Management Fee* |
New Management Fee* |
Sub-Advisor |
| Horizons Global Risk Parity ETF (HRA) | 0.85% | 0.65% | ReSolve Asset Management |
| Horizons Managed Global Opportunities ETF (HGM) | 0.85% | 0.50% | Forstrong Global Asset Management |
| Horizons Active Global Dividend ETF (HAZ) | 0.80% | 0.65% | Guardian Capital |
| Horizons Active Emerging Markets Dividend ETF (HAJ) | 0.80% | 0.65% | Guardian Capital |
| Horizons Active Canadian Dividend ETF (HAL) | 0.70% | 0.55% | Guardian Capital |
| Horizons Active US Dividend ETF (HAU) | 0.70% | 0.55% | Guardian Capital |
* Plus applicable sales tax.
No changes have been made to the investment objectives, or the appointment of the current subadvisors of these ETFs, as a result of the reduced management fees.
“We have the largest and one of the most established actively managed ETF families in Canada. From day one when launching these types of ETFs, we have believed that combining strong active management with a competitive management fee increases the odds of a mandate generating better performance,” said Steve Hawkins, President and CEO of Horizons ETFs.
“We have strong partnerships with all of our sub-advisors, including ReSolve Asset Management, Forstrong Global Asset Management and Guardian Capital, which manages the portfolios of our suite of equity dividend mandates,” said Mr. Hawkins. “When we reviewed these six active investment solutions, we determined that we now have sufficient economies of scale to offer these ETFs at a lower management fee, which we think will only enhance the likelihood of these great portfolio management teams being able to generate industry-leading returns.”
Amended Risk Ratings
Horizons ETFs is also announcing changes to the risk ratings applicable to certain of its ETFs.
The changes in risk ratings are effective immediately and are detailed below:
| ETF | Current Risk Rating | New Risk Rating |
| Horizons Active Floating Rate Senior Loan ETF (HSL) | Low to Medium | Low |
| Horizons Active Emerging Market Dividend ETF (HAJ) | High | Medium |
| Horizons Active Canadian Dividend ETF (HAL) | Medium | Low to Medium |
| Horizons Active Global Dividend ETF (HAZ) | Medium | Low to Medium |
| Horizons Managed Global Opportunities ETF (HGM) | Medium | Low to Medium |
| Horizons Active A.I. Global Equity ETF (MIND) | Medium to High | Low to Medium |
The investment risk level of an ETF is determined in accordance with a standardized risk classification methodology, set out in National Instrument 81-102 Investment Funds, that is based on the historical volatility of the ETF, as measured by the 10-year standard deviation of the returns of the ETF. If an ETF has less than 10 years of performance history, the investment risk level of the ETF is calculated using the return history of the ETF, and, for the remainder of the 10-year period, the return history of a reference index that is expected to reasonably approximate the standard deviation of the ETF.
No changes have been made to the investment objectives or strategies of these ETFs as a result of the changes to the risk ratings. A summary of the risk rating classification methodology, investment objectives and strategies of an ETF can be found in the ETF’s most recently filed prospectus, available at www.HorizonsETFs.com.
About Horizons ETFs Management (Canada) Inc.
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 $10.3 billion of assets under management and 85 ETFs listed on major Canadian stock exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.
For investor inquiries:
Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
[email protected]
For media inquiries:
Contact Mark Noble, Senior Vice-President, ETF Strategy
Horizons ETFs Management (Canada) Inc.
(416) 640-8254
[email protected]
Categories: Press Releases