Canada Business Report 2017

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Discovery Reports

Horizons continues bold innovations in ETFs

Fund manager’s BetaPro family offers investors inverse, leveraged and volatility ETFs

PUBLISHED : Monday, 13 November, 2017, 5:36pm
UPDATED : Monday, 13 November, 2017, 5:36pm

The evolution of investment funds happened at the Toronto Stock Exchange (TSX) 27 years ago with the successful launch of the world’s first exchange-traded funds (ETFs). Horizons ETFs Management (Canada) took it to the next level with the world debut of leveraged commodity ETFs, followed by Canada’s first actively managed ETF family. These raised market capitalisation at the TSX to unprecedented heights.

The firm hasn’t stopped innovating since, marking its 10th anniversary in February as Canada’s fourth-largest ETF provider with C$8.2 billion (HK$51.8 billion) of assets under management across 77 products that cater to diverse investor needs. In April, it launched the world’s first and only marijuana-focused ETF.

“We are different than the norm, and we pride ourselves on being the first to market innovative products,” says Steven Hawkins, president and co-CEO.

Horizons offers astute investors and high-net-worth individuals inverse, leveraged and volatility ETFs through its BetaPro family of ETFs. Catering more to institutional investors are benchmark ETFs that are differentiated by their increased tax efficiency. Meanwhile, retail investors access professional portfolio management through actively managed ETFs, which have seen tremendous growth since 2009 with assets hitting close to C$4 billion this year.

We pride ourselves on being first to market with innovative products
Steven Hawkins, president, Horizons ETFs Management (Canada)

“Our success is built upon strong client relationships and performance,” Hawkins says.

Having joined South Korea’s Mirae Asset Global Investments six years ago, the scale of partnering with a global financial group that manages US$120 billion in assets has enabled Horizons to leverage synergies and expand its product line-up with an Asian focus. In January 2016, it launched the Horizons China High Dividend Yield Index ETF (HCN), which gives Canadian investors access to Asian opportunities.

“Getting exposure in Asia is crucial to maintaining a well-rounded portfolio, and HCN provides that,” Hawkins says.

Horizons also foresees more Asian investments coming into Canada given its stature as a transparent and stable economy.

“It is more open to foreigners and foreign investments, and we do business at the top level relative to any country out there,” Hawkins says.