Canada-based Horizons ETFs have announced the launch of the Horizons Auspice Managed Futures Index ETF (HMF), an innovative alternative strategy fund that provides access to a managed futures strategy.
HMF will offer investors exposure to the Auspice Managed Futures Excess Return Index (Auspice Index), a managed futures index developed by Calgary-based Auspice Capital Advisors.
The Auspice Index aims to capture upward and downward trends in the commodity and financial markets while carefully managing risk. The index uses a quantitative methodology to track either long or short positions in a diversified portfolio of 21 exchange traded futures, which cover the energy, metal, agricultural, interest rate and currency sectors. The index incorporates dynamic risk management and contract rolling methods.
Commenting on the launch, Howard Atkinson, CEO of Horizons ETFs, said: “Managed futures strategies have been around for more than 30 years. They are popular with many institutional and alternative strategy investors because they tend to deliver returns non-correlated to traditional asset classes like stocks and bonds.
“In fact, during the financial crisis of 2008/2009, managed futures, as represented by the Barclay CTA Index, were one of the few categories of North American investment strategies that delivered strong positive performance”
“Typically, products that employ managed futures strategies have only been available to accredited investors, but this new ETF now offers all investors exposure to a managed futures strategy.”
“The Auspice Managed Futures Index uses a robust risk management and dynamic trend following strategy which endeavours to provide superior risk-adjusted returns. We’re very excited to be able to partner with Auspice to offer this index strategy to the Canadian marketplace in an innovative ETF structure.”
The fund is listed on the Toronto Stock Exchange and has an annual management fee of 0.95%.