Sub-advised by Fiera Capital, HAEB seeks to generate high income through ESG-screened corporate bonds
TORONTO – September 21, 2021 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce the launch of the Horizons Active ESG Corporate Bond ETF (“HAEB” or the “ETF”). Units of the ETF will begin trading today on the Toronto Stock Exchange (“TSX”).
HAEB is an actively managed ETF that will invest in North American corporate bonds that have gone through a fundamental credit research process and, in addition, scored on their Environmental, Social and Governance (“ESG”) metrics.
The ETF is sub-advised by Fiera Capital Corporation (“Fiera Capital“), a leading institutional fixed income manager with approximately $180 billion in assets under management. Fiera Capital takes a quantitative and qualitative approach to ESG, independently evaluating each issuer while continuously monitoring adherence to ESG-friendly business practices.
“The growth of ESG investing has prompted an evolution in fixed income investing – more than ever before, investors are seeking to ensure their capital is supporting companies aligned with sustainable and environmentally friendly business practices. Our approach to investing has long considered ESG factors as an important component when selecting issues,” said Philippe Ouellette, Vice President and Senior Portfolio Manager, Fixed Income of Fiera Capital. “Not only has the North American corporate bond landscape remained an attractive income opportunity, there are an increasing number of companies making a meaningful transition to more ESG friendly business practices. HAEB will offer the best of both worlds, allowing investors to generate an attractive income from issuers who are committed to core ESG principles.”
ETF Name and Ticker: Horizons Active ESG Corporate Bond ETF (HAEB:TSX)
Investment Objective: HAEB seeks long-term moderate capital growth and to generate high income. HAEB invests in a portfolio of debt (including debt-like securities) of Canadian and U.S. companies directly, or through investments in securities of other investment funds, including exchange traded funds. Each security in HAEB’s portfolio must achieve minimum inclusion requirements based on ESG metrics.
Management Fee*: 0.55%
*Plus applicable sales taxes.
As part of its ESG screening process for HAEB’s portfolio, Fiera Capital will seek to:
- Invest the majority of the portfolio in issuers with an ESG score that ranks within the top third of the universe;
- Achieve a lower carbon footprint and limiting exposure to the fossil fuel industry with a lower exposure than the broader Canadian corporate bond universe; and
- Exclude issuers with more than 10% of earnings from Adult Entertainment, Alcohol, Cannabis, Firearms, Gambling, Military Contracting and Tobacco.
“Joining Canada’s largest suite of actively managed fixed income ETFs, HAEB’s addition brings a sought-after ESG overlay to corporate bonds – one of the best asset classes currently to achieve higher yields in the investment grade fixed income landscape,” said Steve Hawkins, President and CEO of Horizons ETFs. “Fiera Capital’s deep experience navigating the North American corporate bond environment, coupled with their integrated ESG screening process, we believe will help HAEB deliver income that’s good for your portfolio and the planet.”
HAEB closed its initial offering of units to its designated broker at the close of business on September 20, 2021, and will begin trading today on the TSX.
For more information about HAEB, please visit: www.HorizonsETFs.com/HAEB
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 98 ETFs listed on major Canadian stock exchanges.
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Horizons ETFs Management (Canada) Inc.
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