Horizons ETFs Management (Canada) has launched the Horizons Global Currency Opportunities ETF (HGC), providing investors with low-cost, actively managed exposure to worldwide currency markets.
Units of the exchange traded fund (ETF) have begun trading on the Toronto Stock Exchange (TSX), under the ticker symbol "HGC".
HGC is sub-advised by CIBC Asset Management, which houses one of the largest currency investment teams in North America by assets under management (AUM), managing USD26 billion in currency-related assets (as at 30 June 2016).
HGC will provide investors with long exposure to the global currency market through a low-cost, actively-managed strategy that seeks to deliver absolute returns. HGC will use financial instruments to gain exposure to selected global currencies, which have been identified by CIBC Asset Management's integrated quantitative and qualitative investment process.
"The USD5.3 trillion currency market is one of the largest asset classes in the world and, as we've seen clearly over the last two years, FX has the potential to significantly impact returns," says Steve Hawkins, co-chief executive, Horizons ETFs. "We are now offering Canadian investors access to this market with the launch of HGC, an investment solution that can further diversify their portfolio with the potential to improve overall risk-adjusted returns."
HGC's currency investments are based on CIBC Asset Management's integrated quantitative and qualitative investment process, which currently includes the ranking of 32 currencies worldwide, the assessment of specific macro-economic regimes, as well as fundamental country research to construct the portfolio.
"With one of the largest currency investment teams in North America, by AUM, we chose to partner with CIBC Asset Management on this ETF because of their diligent approach to selecting currency investments that have the potential for greater returns, without adding excess risk," adds Hawkins. "A professionally managed currency ETF can be a great diversifier for Canadian investors, as long as the opportunities don't come with undue risk."
The new Horizons Global Currency Opportunities ETF is the first ETF to be sub-advised by CIBC Asset Management.
"We are pleased to be selected to sub-advise the Horizons Global Currency Opportunities ETF," says David Scandiffio, president and CEO, CIBC Asset Management. "As a global leader in the currency management field, we have been working with institutional investors for over 20 years to create sophisticated currency management solutions. We are thrilled to bring our institutional currency capabilities to retail investors through Horizons ETFs."
