TORONTO – January 24, 2020 – 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% | $658.50 |
| Horizons Active Ultra-Short Term US Investment Grade Bond ETF |
Horizons Active US Floating Rate Bond (USD) ETF |
HUF / HUF.U | 0.40% | $37.50 |
* 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.
For investor inquiries:
Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
[email protected]
For media inquiries:
Contact Jonathan McGuire
Corporate Communications Manager
Horizons ETFs Management (Canada) Inc.
(416) 640-2956
[email protected]
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.
| 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.
Categories: Press Releases