HARB.U
A Bond ETF That Can Tactically Change with the Market
Having an active fixed income strategy that has the flexibility to “go anywhere” to find investment opportunities might be more important than ever before. The Horizons Tactical Absolute Return Bond ETF (HARB) sub-advisor will adjust the positioning of the ETF portfolio to various fixed income strategies it believes offer the highest absolute risk-adjusted return profile over the course of the investment cycle.
Key Features
• A “Go Anywhere” Fixed Income Mandate ETF: HARB will seek to generate capital appreciation from decreasing spreads, falling yields and changes to credit quality, as well as protect capital and reduce drawdowns during periods of rising yields and widening spreads
• Diversification: HARB will have the full flexibility to tactically change the duration, credit and FX exposures to seek to generate positive risk-adjusted returns with reduced volatility and negative correlation to other asset classes
• An Experienced Sub-Advisor: Over 40 years of experience in running investment mandates covering the full spectrum of the fixed income universe
• Tax-Efficiency: The Total Return Series Shares are not expected to make taxable distributions, making them advantageous for taxable accounts where interest income is taxed at the full marginal income tax rate. The Dividend Series Shares is expected to pay out monthly distributions consisting of dividends and return of capital
Investment Objective
HARB seeks to provide positive absolute returns with low volatility over a market cycle regardless of market conditions or general market direction. The ETF will tactically take long and short positions in North American and global debt instruments and derivatives across the credit spectrum. In respect of the Dividend Series Shares, the ETF will also seek to provide consistent income.
HARB is an alternative mutual fund within the meaning of National instrument 81-102 Investment Funds, and is permitted to use strategies generally prohibited by conventional mutual funds and ETFs, such as borrowing cash, selling securities short, and employing leverage of up to 300%, amongst others. The use of these strategies may accelerate the risk associated with the ETF. The ETF is not guaranteed, its values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the ETF. Please read the prospectus and its risk disclosure before investing.
Fund Details
Ticker
HARB.U
Inception Date
April 21, 2021
Net Assets ?
$75,697,301
As at December 06, 2022
Consolidated Prior Day Volume ?
360,000
For December 06, 2022
Average Daily Trading Volume Over a 12 Month Period ?
25,362
As at December 06, 2022
Exchange
Toronto Stock Exchange
Investment Manager
Horizons ETFs Management (Canada) Inc.
Eligibility
All Registered and Non-Registered Investment Accounts
Sub-Advisor
Management Fee
0.75%
(Plus applicable sales tax)
Management Expense Ratio ?
0.91%
As at June 30, 2022
Performance Fee
10% over high water mark and an annualized return between 3% and 5%, depending on the Bank of Canada overnight rate. (Please see the prospectus for more information)
Currency
USD
Currency Hedging
N/A
LEI ?
549300OHQLF682HVWX18
Portfolio Investment Metrics
As at October 31, 2022
Weighted Average Duration ?
8.14
Average Credit Quality ?
AA+
Weighted Average Coupon ?
2.50
Weighted Average Yield to Maturity ?
2.71
The NAV chart above only shows the historical daily net asset value per unit (NAV) of the ETF, and identifies the various distributions made by the ETF, if any. The distributions are not treated as reinvested, and it does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder. The NAV values do contemplate management fees and other fund expenses. The chart is not a performance chart and is not indicative of future NAV values which will vary.
The Growth of 10K chart above is based on the historical daily net asset value per unit (NAV) of the ETF, and represents the value of an initial investment into the ETF of $10,000 since its inception, on a total return basis. Distributions, if any, are treated as reinvested, and it does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder. The NAV values do contemplate management fees and other fund expenses where paid by the fund. The chart is not a performance chart and is not indicative of future value which will vary.
Annualized Performance (%) *
| 1mo | 3mo | 6mo | YTD | 1 yr | 3 yr | 5 yr | 10 yr | SIR** | |
|---|---|---|---|---|---|---|---|---|---|
| Horizons Tactical Absolute Return Bond ETF | 1.42 | -2.88 | -3.74 | -5.92 | -5.87 | -- | -- | -- | -1.07 |
**Fund performance since inception on April 21, 2021, as at November 30, 2022
Calendar Year Performance (%) *
Calendar year performance data is not currently available.
Distributions
Distribution data is not currently available.
Sector Allocation
As at October 31, 2022| Cash | 54.79% |
| Government | 39.27% |
| Health Care | 2.98% |
| Industrial Services | 1.50% |
| Technology | 0.73% |
| Consumer Goods | 0.73% |
Credit Ratings
As at October 31, 2022| AAA | 93.97% |
| BB | 2.24% |
| B | 2.77% |
Top 10 Holdings
As at October 31, 2022| Security Name | Weight |
|---|---|
| United States Treasury 3.00% 15-Aug-2052 | 38.32% |
| United States Treasury 2.75% 15-Aug-2032 | 17.18% |
| United States Treasury 1.50% 29-Feb-2024 | 9.19% |
| Tenet Healthcare Corp 6.13% 01-Oct-2028 | 2.09% |
| Delta Air Lines Inc 3.75% 28-Oct-2029 | 1.57% |
| MicroStrategy Inc 6.13% 15-Jun-2028 | 0.84% |
| Kontoor Brands Inc 4.13% 15-Nov-2029 | 0.78% |
| CDX CDX.NA.HY.38 06/20/27 P 5% 5.00% 20-Jun-2027 | 0.65% |
| Bausch Health Cos Inc 11.00% 30-Sep-2028 | 0.41% |
| Bausch Health Cos Inc 6.13% 01-Feb-2027 | 0.32% |
Education
Regulatory and Legal
Financial Reports
At a Glance
A Bond ETF That Can Tactically Change with the Market
Having an active fixed income strategy that has the flexibility to “go anywhere” to find investment opportunities might be more important than ever before. The Horizons Tactical Absolute Return Bond ETF (HARB) sub-advisor will adjust the positioning of the ETF portfolio to various fixed income strategies it believes offer the highest absolute risk-adjusted return profile over the course of the investment cycle.
Key Features
• A “Go Anywhere” Fixed Income Mandate ETF: HARB will seek to generate capital appreciation from decreasing spreads, falling yields and changes to credit quality, as well as protect capital and reduce drawdowns during periods of rising yields and widening spreads
• Diversification: HARB will have the full flexibility to tactically change the duration, credit and FX exposures to seek to generate positive risk-adjusted returns with reduced volatility and negative correlation to other asset classes
• An Experienced Sub-Advisor: Over 40 years of experience in running investment mandates covering the full spectrum of the fixed income universe
• Tax-Efficiency: The Total Return Series Shares are not expected to make taxable distributions, making them advantageous for taxable accounts where interest income is taxed at the full marginal income tax rate. The Dividend Series Shares is expected to pay out monthly distributions consisting of dividends and return of capital
Product Facts
Investment Objective
HARB seeks to provide positive absolute returns with low volatility over a market cycle regardless of market conditions or general market direction. The ETF will tactically take long and short positions in North American and global debt instruments and derivatives across the credit spectrum. In respect of the Dividend Series Shares, the ETF will also seek to provide consistent income.
HARB is an alternative mutual fund within the meaning of National instrument 81-102 Investment Funds, and is permitted to use strategies generally prohibited by conventional mutual funds and ETFs, such as borrowing cash, selling securities short, and employing leverage of up to 300%, amongst others. The use of these strategies may accelerate the risk associated with the ETF. The ETF is not guaranteed, its values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the ETF. Please read the prospectus and its risk disclosure before investing.
Fund Details
Ticker
HARB.U
Inception Date
April 21, 2021
Net Assets ?
$75,697,301
As at December 06, 2022
Consolidated Prior Day Volume ?
360,000
For December 06, 2022
Average Daily Trading Volume Over a 12 Month Period ?
25,362
As at December 06, 2022
Exchange
Toronto Stock Exchange
Investment Manager
Horizons ETFs Management (Canada) Inc.
Eligibility
All Registered and Non-Registered Investment Accounts
Sub-Advisor
Management Fee
0.75%
(Plus applicable sales tax)
Management Expense Ratio ?
0.91%
As at June 30, 2022
Performance Fee
10% over high water mark and an annualized return between 3% and 5%, depending on the Bank of Canada overnight rate. (Please see the prospectus for more information)
Currency
USD
Currency Hedging
N/A
LEI ?
549300OHQLF682HVWX18
Portfolio Investment Metrics
As at October 31, 2022
Weighted Average Duration ?
8.14
Average Credit Quality ?
AA+
Weighted Average Coupon ?
2.50
Weighted Average Yield to Maturity ?
2.71
The NAV chart above only shows the historical daily net asset value per unit (NAV) of the ETF, and identifies the various distributions made by the ETF, if any. The distributions are not treated as reinvested, and it does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder. The NAV values do contemplate management fees and other fund expenses. The chart is not a performance chart and is not indicative of future NAV values which will vary.
The Growth of 10K chart above is based on the historical daily net asset value per unit (NAV) of the ETF, and represents the value of an initial investment into the ETF of $10,000 since its inception, on a total return basis. Distributions, if any, are treated as reinvested, and it does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder. The NAV values do contemplate management fees and other fund expenses where paid by the fund. The chart is not a performance chart and is not indicative of future value which will vary.
Performance & Distributions
Annualized Performance (%) *
| 1mo | 3mo | 6mo | YTD | 1 yr | 3 yr | 5 yr | 10 yr | SIR** | |
|---|---|---|---|---|---|---|---|---|---|
| Horizons Tactical Absolute Return Bond ETF | 1.42 | -2.88 | -3.74 | -5.92 | -5.87 | -- | -- | -- | -1.07 |
**Fund performance since inception on April 21, 2021, as at November 30, 2022
Calendar Year Performance (%)
Calendar year performance data is not currently available.
Distributions
Distribution data is not currently available.
Holdings
Sector Allocation
As at October 31, 2022| Cash | 54.79% |
| Government | 39.27% |
| Health Care | 2.98% |
| Industrial Services | 1.50% |
| Technology | 0.73% |
| Consumer Goods | 0.73% |
Credit Ratings
As at October 31, 2022| AAA | 93.97% |
| BB | 2.24% |
| B | 2.77% |
Top 10 Holdings
As at October 31, 2022| Security Name | Weight |
|---|---|
| United States Treasury 3.00% 15-Aug-2052 | 38.32% |
| United States Treasury 2.75% 15-Aug-2032 | 17.18% |
| United States Treasury 1.50% 29-Feb-2024 | 9.19% |
| Tenet Healthcare Corp 6.13% 01-Oct-2028 | 2.09% |
| Delta Air Lines Inc 3.75% 28-Oct-2029 | 1.57% |
| MicroStrategy Inc 6.13% 15-Jun-2028 | 0.84% |
| Kontoor Brands Inc 4.13% 15-Nov-2029 | 0.78% |
| CDX CDX.NA.HY.38 06/20/27 P 5% 5.00% 20-Jun-2027 | 0.65% |
| Bausch Health Cos Inc 11.00% 30-Sep-2028 | 0.41% |
| Bausch Health Cos Inc 6.13% 01-Feb-2027 | 0.32% |
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