Toronto-based Horizons ETFs Management (Canada) Inc. and its affiliate, AlphaPro Management Inc., have assumed all portfolio management responsibilities for the reference fund of a Horizons exchange-traded fund (ETF).
The HAP Nexus Hedge Fund Replication Trust, the reference fund for Horizons Morningstar Hedge Fund Index ETF, will now be managed in-house by Horizons ETFs, according to an announcement by the firm on Friday.
The investment objective of Horizons Morningstar Hedge Fund Index ETF is unaffected and the product will continue to seek investment results that replicate the performance of the Morningstar broad hedge fund index hedged to the Canadian dollar.
Horizons ETFs also notes that Morningstar Hedge Fund Index ETF continues to follow the index replication strategy licensed from Montreal-based National Bank of Canada. The replication strategy primarily uses liquid futures contracts on several different asset classes, including equity indices, currencies, fixed income securities and commodities. The ETF does not invest, directly or indirectly, in the constituent hedge funds comprising the Morningstar broad hedge fund index.