Horizons ETFs Management (Canada) Inc. has a new subadvisory relationship with DMAT Capital Management Inc., the firm said in a release on Thursday.
Effective immediately, Toronto-based DMAT has assumed the subadvisory role for the Horizons Active High Yield Bond ETF (HYI), the release said.
DMAT is a boutique portfolio management firm founded in 2019 by Canadian fixed-income manager Barry Allan, who is the firm’s president, CEO and CIO.
Allan has nearly four decades of industry experience running fixed-income mandates, including government, investment-grade, high-yield and distressed bonds.
Before DMAT, he founded Marret Asset Management Inc., which he left last year after 18 years.
Allan has also held senior positions with Altamira Management Ltd. and BMO Nesbitt Burns Inc.
At DMAT, Allan leads a team of four investment professionals focused on creating specialized and non-traditional fixed-income strategies.
The Horizons Active High Yield Bond ETF aims to provide high total return income and monthly distributions.
The fund invests primarily in high-yield debt securities of North American companies, and may also invest in convertible debentures, preferred shares and mortgage-backed securities.
“Navigating non-investment-grade fixed-income requires extensive expertise and deep understanding of this yield-rich fixed-income sector,” said Steve Hawkins, president and CEO with Horizons ETFs, in the release.
With Allan and DMAT as the fund’s subadvisor, unitholders will have the opportunity for “better risk-adjusted returns than index-strategies that invest in this space,” Hawkins said.
Horizons ETFs has filed a preliminary prospectus for a new ETF that will also be subadvised by DMAT.