TORONTO, January 22, 2016 — Horizons ETFs Management (Canada) Inc. and AlphaPro Management Inc. (collectively, “Horizons ETFs”) are proud to announce that the Horizons S&P 500® Index ETF (“HXS”) and the Horizons Active Corporate Bond ETF (“HAB”) have both won Fundata FundGrade® A+ Awards for 2015.

Created by Fundata Canada Inc., the FundGrade rating system uses risk-adjusted performance figures to rank and grade Canadian investment funds. Based on up to 10 years of performance data, the ‘A+ Grade’ is strictly a quantitative calculation conducted on an annual basis, which results in a grade score ranking, according to the fund classification standards defined by the Canadian Investment Funds Standards Committee (“CIFSC”).

For the second year in a row, Horizons ETFs is very honoured to have won FundGrade A+® Awards for HXS and HAB,” said Steve Hawkins, Co-CEO and Chief Investment Officer for Horizons ETFs.

HAB is an actively managed Canadian corporate bond ETF, sub-advised by Fiera Capital Corporation (“Fiera”), one of the largest independent fixed income managers in Canada, with more than $51 billion in fixed income assets (as at September 30, 2015). This is the third year running that HAB has received a FundGrade A+® Award. HAB also received a 5-star Morningstar Risk-Adjusted Rating as of September 30, 2013, which it has maintained through December 31, 2015.

Fiera has one of the most experienced fixed income investment teams in Canada and they add additional value through their robust credit analysis and bond selection process,” said Mr. Hawkins. “HAB’s portfolio managers are not forced to buy and sell bonds the way an index does, which has been an advantage in its ability to generate better total returns, versus index strategies that invest in the Canadian corporate bond market.

In addition to winning a FundGrade A+® Award for the second year in a row, HXS was recently awarded the 2015 Lipper Fund Award in the U.S. Equity category (for the three-year period ended July 31, 2015).* HXS also received a five-star rating from Morningstar as of September 30, 2014 which it continues to maintain.

HXS seeks to replicate, to the extent possible, the performance of the S&P 500® (Total Return), net of expenses. HXS uses a total-return swap based structure, which means the ETF does not physically hold the underlying stocks of the S&P 500®. This structure can reduce tracking error and also minimize taxable distributions. Since its inception in 2010, HXS has not paid any taxable distributions.

Since HXS won the FundGrade A+ Award last year, there are now 16 competitors offering single-long exposure to the S&P 500®, but it's the combination of HXS' low management fees, reduced potential for tracking error and greater tax efficiency, that have led to its strong category performance and industry accolades,” said Mr. Hawkins.

The FundGrade rating is used with permission from Fundata Canada Inc., all rights reserved. Fundata is a Canadian investment funds data and analytics company. The FundGrade A+ Rating identifies funds that have consistently demonstrated the best risk-adjusted returns through an entire calendar year. For more information on the rating system, please visit www.fundata.com.

Morningstar® is a registered trademark of Morningstar Inc. (“Morningstar”). The Horizons Exchange Traded Products are not sponsored, endorsed, sold, or promoted by Morningstar and its affiliated companies and none of these parties make any representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in the Horizons Exchange Traded Products. The information contained herein is not warranted by Morningstar to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The Lipper Fund Awards, granted annually, are part of the Thomson Reuters Awards for Excellence awarded by Lipper, Inc. and highlight investment funds that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Lipper Fund Awards are based on the Lipper Ratings for Consistent Return, which is a risk-adjusted performance measure calculated over 36, 60 and 120 month periods. The highest 20% of investment 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 highest Lipper Leader for Consistent Return in each category wins the Lipper Fund Award. Lipper Leader ratings change monthly. For more information, see www.lipperweb.com. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper.

*HXS was awarded the 2015 Lipper Fund Award in the U.S. Equity category for the three-year period ending July 31, 2015, ranking first out of the 16 ETFs eligible for consideration in its category. Performance for the HXS fund for the period ended July 31, 2015 is as follows: 32.82 % (1 year), 27.50 % (3 years) and 47.49 % (since inception on November 30, 2010). The corresponding Lipper Leader ratings of the fund for the same period are as follows: 4 (3 years). Lipper Leader ratings range from 1 to 5, with a ranking of 5 meaning that the fund is in the top 20% of its category. For greater detail please go to www.lipperweb.com.

Download PDF

Share This Article

Next article
 

Horizons Announces November 2015 Distributions For Its Covered Call ETFs

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.