TSX:HFR (Horizons Active Floating Rate Bond ETF)

The investment objective of Horizons HFR is to generate income that is consistent with prevailing Canadian shortterm corporate bond yields while reducing the potential effects of Canadian interest rate fluctuations on Horizons HFR. Horizons HFR invests primarily in a portfolio of Canadian debt (including debt-like securities) directly, and hedges the portfolios interest rate risk by maintaining a portfolio duration that is not more than one year. Horizons HFR may also invest directly in debt of U.S. companies, as well as indirectly through investments in securities of Listed Funds. Horizons HFR uses derivatives, including interest rate swaps, to deliver a floating rate of income.. The Sub-Advisor uses fundamental credit research to select the securities of companies that, based on the SubAdvisors view on the companys industry and growth prospects, are believed to offer attractive risk adjusted returns.