AlphaPro Management Inc. has launched a new balanced exchange-traded fund designed to provide both regular income and long-term capital growth, the company announced on Wednesday.
The Horizons AlphaPro Balanced ETF will begin trading on Wednesday on the Toronto Stock Exchange under the symbol HAA.
The sub-advisor to the Balanced ETF is Hillsdale Investment Management Inc., which has been managing private client and institutional money for more than 14 years using its innovative proprietary quantitative portfolio management process.
The Balanced ETF invests primarily in a balanced portfolio of publicly traded equity, income trust and debt securities located predominantly in Canada. In order to obtain direct or indirect exposure to these securities, the Balanced ETF may invest in exchange traded funds and exchange traded notes.
“Balanced mutual funds are easily one of the best selling mutual fund categories, because it’s a simple default investment solution for retail investors. Investors who have embraced ETF investing have had few options in selecting a balanced mandate,” said Ken McCord, president of AlphaPro. “The Horizons AlphaPro Balanced ETF is another step in the evolution of ETF investing.”
McCord said the ETF would be offered at one of the lowest management fees in the industry, at 0.70%, which he said would enhance the fund’s ability to deliver superior returns.
Hillsdale will use a proprietary, dynamic, multi-factor ranking approach to the selection of equity, income trust and debt securities. Initially, between 60% and 80% of the portfolio of the Balanced ETF will be invested in equity and equity-related securities. Between 20% and 40% of the portfolio will be invested in corporate bonds, government debt and fixed income securities. Generally, no less than 70% of the Balanced ETF’s portfolio will be invested in Canadian securities or Canadian dollar denominated debt.
“Hillsdale will not be running a traditional static 60/40 asset allocation, like many other balanced funds do. The team at Hillsdale will be actively using both asset allocation and their comprehensive security selection screening in an attempt to deliver superior risk-adjusted returns versus their category peers,” McCord said.
The company said the ETF will, to the best of its ability, seek to hedge non-Canadian dollar currency exposure to the Canadian dollar at all times. Hillsdale may, from time to time, use derivatives instruments for hedging and non-hedging purposes.
IE
Horizons AlphaPro launches first actively managed balanced ETF in Canada
Hillsdale Investment Management to act as sub-advisor to ETF
- By: IE Staff
- July 28, 2010 July 28, 2010
- 07:32