Toronto-based Horizons ETFs Management (Canada) Inc. and its affiliate, AlphaPro Management Inc., announced on Wednesday the launch of Horizons Managed Global Opportunities ETF, a globally focused and actively managed exchange-traded fund (ETF).
Units of the ETF began trading on the Toronto Stock Exchange on Wednesday. Class E units are found under the ticker symbol “HGM” while “HGM.A” is the ticker symbol for Advisor Class units.
The ETF’s investment objectives are to use flexible tactical asset allocation among multiple global asset classes to seek long-term growth while also looking to protect against downside risk. It will invest primarily in exchange-traded products that are listed on North American stock exchanges and may be exposed to equities, fixed-income securities, global currencies around, or to gold, Horizons’ announcement states.
The product is the first Canadian ETF for its subadvisor, Kelowna, B.C.-based Forstrong Global Asset Management Inc., which recently rebranded from Hahn Investment Stewards and Co. Inc.
“Forstrong Global has the longest track-record in the world managing ETF-only portfolios and has built a stellar reputation both within and outside Canada,” says Howard Atkinson, president of Horizons, in a statement. “When it comes to investing outside of Canada, we feel that Canadian investors want professional expertise and insight — through a single efficient investment — but don’t know where to start. HGM really blends the best of both worlds, by giving these investors access to a low-cost portfolio of primarily index-replicating ETFs overseen by a portfolio management team with extensive global investment expertise.”
Forstrong will employ its three-tier investment model in the management of this ETF, which combines long-term and short-term macroeconomic views, statistical analysis, and currency management to determine growing global trends while managing the downside risk, Horizons’ announcement states.
This ETF is the Horizons’ second product launch in August that possesses a heavier focus on global securities. The firm introduced Horizons Managed Multi-Asset Momentum ETF, which includes equities from Canada, the U.S. and emerging markets, on Aug. 19.
“Historically, Canadian investors have displayed a strong ‘home bias’ toward domestic asset classes; while patriotic, they have high concentration risk, especially in the financial and energy sectors that make up over half of domestic indices,” says Atkinson. “The potential benefits of [Horizons Managed Global Opportunities ETF] are that it adds to the global diversification of one’s portfolio and offers a risk-based approach to managing asset allocation.”