Famous Brands Limited (FBR)

Overview

The investment objective of Horizons HFP is to provide investors with a strategy primarily focused on generating income consistent with prevailing short-term preferred share yields, while also aiming to minimize the impact of interest rate fluctuations. This financial product prioritizes investments in preferred shares, which include securities that can be converted into preferred shares, specifically targeting Canadian companies. It also allows for investments in preferred shares from United States companies, adding a level of diversification. In addition to preferred shares, Horizons HFP broadens its investment spectrum to include debts or debt-like securities from issuers in both Canada and the U.S., alongside other income-generating securities and Listed Funds. A crucial aspect of its strategy is maintaining a portfolio duration of less than two years, which is instrumental in its approach to reducing the sensitivity to interest rate changes. To enhance its income-generating ability and manage the interest rate exposure effectively, Horizons HFP may engage in the use of derivatives, such as interest rate swaps and futures contracts. These financial instruments are employed with the aim of providing a floating rate of income, aligning with the fund's objectives of income generation and interest rate risk mitigation.

Products and Services

Horizons HFP offers a distinct set of investment vehicles and strategies focused on income generation and risk management, tailored for investors looking for short-term income opportunities with a measure of protection against interest rate fluctuations.

• Preferred Shares Investments

  Investing primarily in preferred shares, including those convertible into preferred shares of Canadian companies, Horizons HFP aims to tap into the steady income stream that these securities can provide. This includes the potential for fixed dividend payments, which can be an attractive aspect for income-focused investors. The fund also extends its investment to include preferred shares from U.S. companies, thereby diversifying its portfolio and potentially enhancing returns.

• Debt Securities

  The fund diversifies its income strategy by investing in debt and debt-like securities issued by Canadian and U.S. entities. This could include a variety of bonds or fixed-income securities that offer regular interest payments, contributing to the fund's overall income generation objectives. Incorporating debt securities helps in balancing the portfolio and potentially mitigating risks associated with equity investments.

• Other Income Generating Securities and Listed Funds

  Aside from preferred shares and debt securities, Horizons HFP invests in additional income-generating securities and Listed Funds. This broad category may encompass various asset types, including but not limited to real estate investment trusts (REITs), master limited partnerships (MLPs), and dividend-paying stocks. These investments are chosen for their potential to contribute to the fund's income stream and provide diversification benefits.

• Short-Term Portfolio Duration

  Maintaining a portfolio duration of less than two years is a strategic choice aimed at reducing the fund's sensitivity to interest rate changes. This approach allows Horizons HFP to be more resilient in fluctuating rate environments, potentially safeguarding the fund's value and the income it generates for investors.

• Use of Derivatives

  Horizons HFP employs derivatives, including interest rate swaps and futures contracts, as part of its strategy to manage interest rate risk and aim to deliver a floating rate of income. These financial instruments can offer the flexibility to hedge against adverse movements in interest rates, contributing to the stability and performance of the fund's income-generating capabilities.