TORONTO – October 31, 2019 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce that, effective immediately, Castle Ridge Asset Management Limited (“Castle Ridge”) has assumed the sub-advisory role for the Horizons Active A.I. Global Equity ETF (“MIND”), which trades on the Toronto Stock Exchange under the ticker symbol MIND. MIND is the first global equity-focused exchange traded fund (“ETF”) in the world to use artificial intelligence (“A.I.”) for all security selection decisions.
 
MIND seeks to achieve long-term equity returns through investments in major global equity indices using a basket of primarily North American-listed ETFs. MIND allocates its equity index exposure using a proprietary artificial intelligence selection process that extracts patterns by analyzing market data.
 
Castle Ridge is a Toronto-based asset management firm that is a recognized leader in using A.I. to manage investment portfolios. Castle Ridge’s A.I. system, named W.A.L.L.A.C.E., replaces the A.I. system designed by Qraft Technologies Inc. previously used for MIND. W.A.L.L.A.C.E. uses a new branch of A.I. called ‘Geno-Synthetic Algorithms’, a type of machine learning that uses a form of natural selection to make increasingly better decisions.  
 
W.A.L.L.A.C.E. uses successive generations of over 500 portfolio management mechanisms to selectively “breed” increasingly agile and intuitive investment algorithms. Repeated over thousands of generations, the selection process pursues “survival of the fittest” algorithms. As a result, W.A.L.L.A.C.E. is designed to become more powerful with each successive generation.
 
“We are very excited to have Castle Ridge and their innovative A.I. system, W.A.L.L.A.C.E., providing the security selection for MIND,” said Steve Hawkins, President and CEO of Horizons ETFs. “Toronto is a recognized global leader in A.I. research, and Castle Ridge has been at the forefront of using leading-edge A.I. research and design from Canada’s A.I. community to build A.I.-driven investment solutions.”
 
There is no change to MIND’s investment objectives. MIND will continue to gain exposure to major global equity indices through the same broadly diversified portfolio of global ETFs, which will be actively rebalanced on at least a monthly basis.
 
“We continue to believe that A.I. is the future of global equity management,” said Mr. Hawkins. “The sheer size of the global equity market and the overwhelming amount of data oversight needed to manage effectively in today’s market conditions requires a level of data analysis and predictive powers that W.A.L.L.A.C.E. provides.” 
 
Additional detail on the investment strategy employed by Castle Ridge, and W.A.L.L.A.C.E., will be made available in a prospectus amendment which will be filed as soon as practicable following the date hereof and available on www.sedar.com.

About Castle Ridge Asset Management (www.castleridgemgt.com)
Castle Ridge, with offices in Toronto and New York, offers investment strategies powered by its proprietary Artificial Intelligence system, named W.A.L.L.A.C.E. The W.A.L.L.A.C.E. AI platform continuously learns and evolves by analyzing vast quantities of financial market data. Through major breakthroughs in Machine Learning and self-evolving Evolutionary Computing, W.A.L.L.A.C.E. uncovers unique market patterns that go far deeper than typical quantitative or systematic strategies.

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 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
info@horizonsetfs.com

For media inquiries:
Contact Jonathan McGuire
External Communications Manager
Horizons ETFs Management (Canada) Inc.
(416) 640-2956
jmcguire@horizonsetfs.com

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Horizons ETFs Announces October 2019 Distributions for its Covered Call ETFs

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Commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by Horizons ETFs Management (Canada) Inc. (the "Horizons Exchange Traded Products"). 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.

The Horizons Exchange Traded Products include our BetaPro products (the “BetaPro Products”). The BetaPro Products are alternative mutual funds within the meaning of National Instrument 81-102 Investment Funds, and are permitted to use strategies generally prohibited by conventional mutual funds: the ability to invest more than 10% of their net asset value in securities of a single issuer, to employ leverage, and engage in short selling to a greater extent than is permitted in conventional mutual funds. While these strategies will only be used in accordance with the investment objectives and strategies of the BetaPro Products, during certain market conditions they may accelerate the risk that an investment in units of a BetaPro Product decreases in value. The BetaPro Products consist of our 2x Daily Bull and 2x Daily Bear ETFs (“2x Daily ETFs”), Inverse ETFs (“Inverse ETFs”) and our BetaPro S&P 500 VIX Short-Term Futures™ ETF (the “VIX ETF”). Included in the 2x Daily ETFs and the Inverse ETFs are the BetaPro Marijuana Companies 2x Daily Bull ETF (“HMJU”) and BetaPro Marijuana Companies Inverse ETF (“HMJI”), which track the North American MOC Marijuana Index (NTR) and North American MOC Marijuana Index (TR), respectively. The 2x Daily ETFs and certain other BetaPro Products use leveraged investment techniques that can magnify gains and losses and may result in greater volatility of returns. These BetaPro Products are subject to leverage risk and may be subject to aggressive investment risk and price volatility risk, among other risks, which are described in their respective prospectuses. Each 2x Daily ETF seeks a return, before fees and expenses, that is either 200% or –200% of the performance of a specified underlying index, commodity futures index or benchmark (the “Target”) for a single day. Each Inverse ETF seeks a return that is –100% of the performance of its Target. Due to the compounding of daily returns a 2x Daily ETF’s or Inverse ETF’s returns over periods other than one day will likely differ in amount and, particularly in the case of the 2x Daily ETFs, possibly direction from the performance of their respective Target(s) for the same period. Hedging costs charged to BetaPro Products reduce the value of the forward price payable to that ETF. Due to the high cost of borrowing the securities of marijuana companies in particular, the hedging costs charged to HMJI are expected to be material and are expected to materially reduce the returns of HMJI to unitholders and materially impair the ability of HMJI to meet its investment objectives. Currently, the manager expects the hedging costs to be charged to HMJI and borne by unitholders will be between 15.00% and 35.00% per annum of the aggregate notional exposure of HMJI’s forward documents. The hedging costs may increase above this range. The manager will publish, on its website, the updated monthly fixed hedging cost for HMJI for the upcoming month as negotiated with the counterparty to the forward documents, based on the then current market conditions. The VIX ETF, which is a 1x ETF, as described in the prospectus, is a speculative investment tool that is not a conventional investment. The VIX ETF’s Target is highly volatile. As a result, the VIX ETF is not intended as a stand-alone long-term investment. Historically, the VIX ETF’s Target has tended to revert to a historical mean. As a result, the performance of the VIX ETF’s Target is expected to be negative over the longer term and neither the VIX ETF nor its target is expected to have positive long-term performance. Investors should monitor their holdings in BetaPro Products and their performance at least as frequently as daily to ensure such investment(s) remain consistent with their investment strategies.

*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 securityholder 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.