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Horizons ETFs launches Horizons Absolute Return Global Currency ETF


Horizons ETFs Management and its affiliate, AlphaPro Management, have launched the Horizons Absolute Return Global Currency ETF (HARC), the first exchange traded fund in Canada that provides investors with long and short exposure to a diversified portfolio of global currencies.

Units of HARC will begin trading this morning on the Toronto Stock Exchange (TSX), under the ticker symbol "HARC". HARC is the first ETF listing on the TSX using a four-letter ticker symbol.
HARC 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 approximately USD28 billion in currency-related assets (as at 30 December 2016).
HARC seeks to generate positive absolute returns through various long and short exposures to select global currencies. HARC will generally hold Canadian short-term securities and will primarily use short-term financial instruments to gain exposure to selected global currency markets.
"This is the second actively managed global currency ETF that we have launched with CIBC Asset Management, a recognised leader in currency management," says Steve Hawkins, president and co-CEO, Horizons ETFs. "The first ETF we launched back in July 2016 was the Horizons Active Global Currency ETF (HGC:TSX). HARC differs from that strategy because it allows for shorting of currencies for which the Sub-Advisor has a negative outlook together with the typical use of notional leverage that goes along with a long/short investment vehicle. While this introduces an increase in overall portfolio risk, we believe the addition of these two features significantly increases the return potential for the strategy."
In order to achieve its investment objective, the sub-adviser selects currencies that are expected to strengthen or weaken on a relative basis using its proprietary active investment process that tracks more than thirty global currencies. The sub-adviser's investment process employs fundamental valuation analysis, macro-economic analysis and a factor-based ranking model.
"Canadian investors are increasingly looking for non-correlated sources of performance. We think that a global currency strategy like HARC is an ideal way for investors to diversify their returns from traditional stocks and bonds," says Hawkins. "We also believe this is particularly true in today's environment of global political uncertainty. One benefit of currency investing is that with each global political event, there are both winners and losers in the currency markets. HARC will seek to take advantage of these opportunities to generate excess returns."

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