Sub-advised by Mirae Asset USA, this new actively managed ETF provides exposure to leading companies in the emerging markets
TORONTO – October 20, 2021 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce the launch of the Horizons Emerging Markets Leaders ETF (“HEMC”). Units of the ETF will begin trading today on the Toronto Stock Exchange (“TSX”) under the ticker symbol HEMC:TSX.
HEMC is sub-advised by Mirae Asset Global Investments (USA) LLC (“Mirae Asset USA” or “Sub-Advisor”), utilizing the expertise of Mirae Asset Global Investment’s global emerging markets equity team. This team is comprised of 13 portfolio managers and analysts, many of whom are located in the local markets that HEMC invests in. The Mirae Asset Financial Group oversees more than $215 billion in assets for clients worldwide.
HEMC is an actively managed ETF that invests in equity securities of issuers that are either located in emerging markets or tied economically to emerging markets. This ETF will provide exposure to a more concentrated portfolio than most emerging market index strategies with a heavy emphasis on stocks that the Sub-Advisor expects to be beneficiaries of the increasing consumption and growing purchasing power of individuals in the world’s emerging markets.
“We are excited to once again be partnering with one of our global affiliates to bring to Canadians their leading expertise in emerging markets, an asset class we believe offers very compelling long-term growth and return potential,” said Steve Hawkins, President and CEO of Horizons ETFs. “Most emerging market exposure in the Canadian ETF market is through broad index strategies, and while there are some cost and liquidity benefits to indexing, emerging markets is an area where we believe an active portfolio management team, with the extensive experience like that of Mirae Asset USA, can add real value to long-term performance.”
ETF Name and Ticker: Horizons Emerging Markets Leaders ETF (HEMC: TSX)
Investment Objective: The investment objective of HEMC is to seek long-term capital growth. HEMC generally invests in equity securities of issuers that are: (i) in emerging markets; or (ii) tied economically to emerging markets, provided that the issuers in which HEMC invests are expected to be beneficiaries of the increasing consumption and growing purchasing power of individuals in the world’s emerging markets.
Management Fee*: 0.75%
*Plus applicable sales taxes.
Historically the emerging markets were heavily weighted towards commodity and industrial sectors, but the last decade has seen a rapid transition of many of the leading economies in the equity group. Most notably, China and India becoming more consumer-focused economies establishing large technology and service-focused sectors.
“Historically, Canadian investors have shied away from emerging markets exposure due to already having extensive exposure to materials and energy in the domestic Canadian equity market. This less diversified portfolio approach means investors may lose out on a lot more return potential in the emerging markets from key growth opportunities in technology and consumer-focused industries that would not be easily accessible through developed market investing,” said Mr. Hawkins. “The teams at Mirae Asset have global expertise in seeking out long-term growth opportunities, particularly since they have “boots-on-the-ground” capabilities in all the emerging market regions.”
HEMC will be Horizons ETFs second actively managed ETF sub-advised by Mirae Asset USA, which primarily has focused on successfully managing institutional mandates and mutual funds in the U.S.
“We are excited to present our investment capacity in Emerging Market to Canadian Investors. Mirae Asset’s proven research-driven investment process bolstered by input from interactions with local investment teams across 15 offices around the world can deliver long-term investment opportunities to our investor.” said Joon Hyuk Heo, CEO of Mirae Asset USA.
HEMC closed its initial offering of shares to its designated broker at the close of business on October 19, 2021, and will begin trading today on the TSX.
For more information about HEMC, please visit: www.HorizonsETFs.com/HEMC
About Mirae Asset USA (www.miraeassetusa.com)
Established in 2008, Mirae Asset USA, an affiliate of the Manager, is an investment adviser registered with the United States Securities and Exchange Commission. Mirae Asset USA focuses on investing in the emerging markets with active, bottom-up strategies that leverage the firm’s emerging market expertise and on-the-ground presence to deliver high-conviction portfolios and quality long-term performance. As of December 31, 2020, Mirae Asset USA had assets under management of approximately USD$6.9 billion
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has more than $19 billion of assets under management and 99 ETFs listed on major Canadian stock exchanges.
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