Toronto-based Horizons ETFs Management (Canada) Inc. has announced that it will absorb its subsidiary, AlphaPro Management Inc., also of Toronto, into the company effective Sept. 30, subject to any necessary regulatory approval.
There will be no change to the day-to-day management of any ETFs currently AlphaPro manages. The names, investment objectives, investment strategies, tickers and sub-advisors of all ETFs that AlphaPro manages will remain the same.
An amalgamation of the two legal entities is expected to create a more efficient corporate structure as both firms share the same management team.
"The AlphaPro corporate entity was originally created to distinguish active management from the other ETF lines of business at Horizons," says Steve Hawkins, president and Co-CEO of Horizons ETFs, in a statement. "We feel that our overall business is better served with all ETFs under the larger Horizons ETFs umbrella."
Horizons ETFs manages more than $3.8 billion in actively managed ETFs, which generally seek to generate better risk-adjusted returns than comparable index strategies.
"Our actively managed ETFs make up almost half of the assets we manage and continue to be one of the strongest drivers of growth for our overall business," adds Hawkins. "Our active ETFs have some of the longest ETF track records in the Canada and their success speaks to the fact that Canadian investors have embraced a mix of both active and passive investments in their portfolios."
Horizons ETFs is a member of Seoul-based Mirae Asset Global Investments Group. Globally, Mirae's ETF business constitutes almost $20 billion in assets under management among more than 230 ETFs listed across six countries, which also includes the BetaShares and Tiger ETF brands, in addition to Horizons ETFs.
"With this change, our new streamlined corporate structure will allow us to create more synergy amongst our global ETF teams," says Taeyong Lee, co-CEO of Horizons ETFs and global head of ETFs with Mirae, in a statement.
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