Horizons ETFs Management and its affiliate AlphaPro Management have appointed PUR Investing as sub-advisor to the Horizons Active Diversified Income ETF (HAA).
HAA seeks to provide Canadian investors with a consistent rate of return balanced between current income and long-term capital growth. To achieve its objective, HAA invests in a balanced portfolio which includes exchange-traded funds.
PUR is headed by Mark Yamada, who has over 35 years of experience in asset management. PUR is a Canadian company focused on building ETF portfolios for individual investors based on proprietary risk optimisation protocols or risk portfolios.
PUR will use a tactical asset allocation strategy seeking to maintain HAA’s risk exposure at a consistent level. PUR will reduce risk during periods of heightened volatility, and increase risk during periods of lower volatility, the objective will be to optimise risk-adjusted returns while maintaining a consistent level of risk.
“We’re very happy to expand our relationship with PUR Investing, which developed our innovative suite of model portfolios using its constant risk strategy,” says Howard Atkinson (pictured), president of Horizons ETFs. “Mark Yamada and the team at PUR have revolutionised traditional asset allocation for retail client portfolios, and we are excited to be able to offer this strategy packaged in a single ETF.”
With a management fee of only 0.70 per cent, HAA is one of the lowest-cost balanced investment funds in Canada as many balanced fund alternatives carry management fees in excess of two per cent.
“PUR’s constant risk approach provides added protection for investors who are concerned about stock market vulnerability and the 30-year bull market in bonds coming to an end,” Atkinson says. “Regardless of what comes first, the portfolio dynamically adjusts to reduce the risk associated with an asset class which has increased in volatility.”
