TORONTO, Aug. 23,
2023 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs" or the
"Manager") held special meetings (each a "Meeting"
and collectively, the "Meetings") of unitholders of Horizons
Conservative TRI ETF Portfolio ("HCON"), Horizons Balanced
TRI ETF Portfolio ("HBAL") and Horizons Growth TRI ETF
Portfolio ("HGRO", and together with HCON and HBAL, the
"ETFs"), on August 23,
2023.
During these Meetings, unitholders approved all matters relating
to proposed changes to the investment objectives (including changes
to the currency hedging strategy of each ETF), in connection
therewith, changes to the fee structure and distribution policy of
each ETF (together, the "Changes") that were previously
announced in an information circular that was made available to
unitholders.
The approval of the Changes follows the proposal made by the
Manager and published in an information circular sent to all
unitholders, dated July 14, 2023, as
well as announced by a press release dated July 18, 2023. Both the information circular and
press release are available at www.sedarplus.com and
www.HorizonsETFs.com.
The Changes follow an extensive review by the Manager of the
ETFs and are expected to be effective at the opening of trading on
August 25, 2023.
The changes to each ETFs' investment objective are substantially
as follows:
|
ETF
|
Prior Investment
Objective
|
New Investment
Objective
|
|
HCON
|
The investment
objective of the ETF is to seek moderate
long-term capital growth using a conservative portfolio of
exchange traded funds.
|
The ETF seeks to
provide a combination of
income and moderate long-term capital
growth, primarily by investing in
exchange traded funds that provide
exposure to a globally diversified
portfolio of fixed income and equity
securities.
|
|
HBAL
|
The investment
objective of the ETF is to seek long-term
capital growth using a balanced portfolio of exchange
traded funds.
|
The ETF seeks to
provide a combination
of long-term capital growth and a
moderate level of income, primarily by
investing in exchange traded funds that
provide exposure to a globally diversified
portfolio of equity and fixed income
securities.
|
|
HGRO
|
The investment
objective of the ETF is to seek long-term
capital growth using a portfolio of primarily equity-
focussed exchange traded funds.
|
The ETF seeks to
provide long-term
capital growth, primarily by investing in
exchange traded funds that provide
exposure to a globally diversified
portfolio of equity securities.
|
The changes to each ETFs' currency hedging strategy are
substantially as follows:
|
ETF
|
Prior Currency
Hedging Disclosure
|
New Currency Hedging
Disclosure
|
|
HCON
|
HCON will use currency
forwards to hedge its non-
Canadian dollar currency exposure to the Canadian dollar
at all times.
|
The ETF, at its sole
discretion, may elect
to hedge the foreign currency exposure of
its fixed income investments back to the
Canadian dollar through the use of
currency forwards or investments in
hedged fixed income exchange traded
funds. The ETF will not hedge the foreign
currency exposure of any asset class other
than fixed income.
|
|
HBAL
|
HBAL will use currency
forwards to hedge its non-
Canadian dollar currency exposure to the Canadian dollar
at all times.
|
The ETF, at its sole
discretion, may elect
to hedge the foreign currency exposure of
its fixed income investments back to the
Canadian dollar through the use of
currency forwards or investments in
hedged fixed income exchange traded
funds. The ETF will not hedge the foreign
currency exposure of any asset class other
than fixed income.
|
|
HGRO
|
HGRO will use currency
forwards to hedge its non-
Canadian dollar currency exposure to the Canadian dollar
at all times.
|
The ETF will not hedge
its exposure to
foreign currencies back to the Canadian
dollar.
|
The changes to each ETF's fee structure are substantially as
follows:
|
ETF
|
Prior Management Fee
Disclosure
|
New Management Fee
Disclosure
|
|
HCON
|
The management fees
directly payable to the Manager by
each ETF are nil.
However, the total
return index exchange traded funds
managed by the Manager ("TRI ETFs") and held by the
ETFs will pay management fees and will incur trading
expenses.
The Manager pays all of
the operating and administrative
expenses incurred by the ETFs. Based on the historical
management expense ratios of the portfolios of TRI
ETFs held by the ETFs, the total management expense
ratios of HCON, HBAL and HGRO, for the 2022
calendar year, are expected to be approximately 0.14%,
0.15% and 0.16%, respectively, and will not exceed
0.15%, 0.16% and 0.17%, respectively, as at any
rebalance.
Based on historical
trading expense ratios of the TRI ETFs
held by the ETFs, the aggregate underlying trading
expense ratios of the portfolios of TRI ETFs held by
HCON, HBAL and HGRO, for the 2022 calendar year, are
expected to be approximately 0.10%, 0.09% and 0.08%,
respectively, and are not expected to exceed 0.11%, 0.10%
and 0.10%, respectively. As trading expense ratios include
expenses outside of the control of the Manager, the trading
expense ratios of the portfolios of TRI ETFs held by
HCON, HBAL and HGRO are subject to change.
|
Each ETF pays annual
management fees
(the "Management Fees") to the
Manager equal to 0.18% of the net asset
value of the Units of that ETF, plus
applicable Sales Tax. The Management
Fees are calculated and accrued daily and
payable monthly in arrears.
The Manager pays all of
the operating
and administrative expenses incurred by
the ETFs. The total management expense
ratios of HCON, HBAL, and HGRO are
expected to be approximately 0.20%.
The trading expense
ratio of each ETF is
expected to be 0.02%. As trading
expense ratios include expenses outside
of the control of the Manager, the trading
expense ratios of the portfolios held by
an ETF are subject to change.
|
|
HBAL
|
Same as
above
|
Same as
above
|
|
HGRO
|
Same as
above
|
Same as
above
|
The Manager is changing the names of each ETF to the names set
forth in the following table, which are expected to be effective at
the opening of trading on August 25,
2023.
|
ETF
|
Prior ETF
Name
|
New ETF
Name
|
|
HCON
|
Horizons Conservative
TRI ETF Portfolio
|
Horizons Conservative
Asset Allocation ETF
|
|
HBAL
|
Horizons Balanced TRI
ETF Portfolio
|
Horizons Balanced Asset
Allocation ETF
|
|
HGRO
|
Horizons Growth TRI ETF
Portfolio
|
Horizons All-Equity
Asset Allocation ETF
|
Additionally, the Manager is changing the ticker symbol of HGRO
as follows:
|
ETF
|
Prior Ticker
Symbol
|
New Ticker
Symbol
|
|
Horizons Growth TRI ETF
Portfolio
|
HGRO
|
HEQT
|
The change to the ticker symbol of HGRO is expected to be
effective at the opening of trading on August 25, 2023. The ticker symbols for each of
HCON and HBAL will remain the same.
Further details regarding the changes can be found at
www.sedarplus.com and www.HorizonsETFs.com.
About Horizons ETFs Management (Canada) Inc.
(www.HorizonsETFs.com)
Horizons ETFs
Management (Canada) Inc. is an
innovative financial services company with one of the largest
suites of exchange traded funds in Canada. The Horizons ETFs product family
includes a broadly diversified range of solutions for investors of
all experience levels to meet their investment objectives in a
variety of market conditions. Horizons ETFs currently has more than
$27 billion of assets under
management and 110 ETFs listed on major Canadian stock exchanges.
Horizons ETFs is a wholly owned subsidiary of the Mirae Asset
Financial Group, which manages approximately $710 billion of assets across 13 countries around
the world.
Commissions, management fees and expenses all may be
associated with an investment in exchange traded products managed
by Horizons ETFs Management (Canada) Inc. (the "Horizons Exchange Traded
Products"). The Horizons Exchange Traded Products are not
guaranteed, their value changes frequently and past performance may
not be repeated. Certain Horizons Exchange Traded Products may have
exposure to leveraged investment techniques that magnify gains and
losses and which may result in greater volatility in value and
could be subject to aggressive investment risk and price volatility
risk. Such risks are described in the prospectus. The prospectus
contains important detailed information about the Horizons Exchange
Traded Products. Please read the relevant prospectus before
investing.
Horizons Total Return Index ETFs ("Horizons TRI ETFs") are
generally index-tracking ETFs that use an innovative investment
structure known as a Total Return Swap to deliver index returns in
a low-cost and tax-efficient manner. Unlike a physical replication
ETF that typically purchases the securities found in the relevant
index in the same proportions as the index, most Horizons TRI ETFs
use a synthetic structure that never buys the securities of an
index directly. Instead, the ETF receives the total return of the
index through entering into a Total Return Swap agreement with one
or more counterparties, typically large financial institutions,
which will provide the ETF with the total return of the index in
exchange for the interest earned on the cash held by the ETF. Any
distributions which are paid by the index constituents are
reflected automatically in the net asset value (NAV) of the ETF. As
a result, the Horizons TRI ETF receives the total return of the
index (before fees), which is reflected in the ETF's share price,
and investors are not expected to receive any taxable
distributions. Certain Horizons TRI ETFs (Horizons Nasdaq-100 ®
Index ETF and Horizons US Large Cap Index ETF) use physical
replication instead of a total return swap. The Horizons Cash
Maximizer ETF and Horizons USD Cash Maximizer ETF use cash accounts
and do not track an index but rather receive interest paid on cash
deposits that can change over time.
Certain statements may constitute a forward-looking
statement, including those identified by the expression "expect"
and similar expressions (including grammatical variations thereof).
The forward-looking statements are not historical facts but reflect
the author's current expectations regarding future results or
events. These forward-looking statements are subject to a number of
risks and uncertainties that could cause actual results or events
to differ materially from current expectations. These and other
factors should be considered carefully and readers should not place
undue reliance on such forward-looking statements. These
forward-looking statements are made as of the date hereof and the
authors do not undertake to update any forward-looking statement
that is contained herein, whether as a result of new information,
future events or otherwise, unless required by applicable
law.
This communication is intended for informational purposes
only and does not constitute an offer to sell or the solicitation
of an offer to purchase exchange traded products (the "Horizons
Exchange Traded Products") managed by Horizons ETFs Management
(Canada) Inc. and is not, and
should not be construed as, investment, tax, legal or accounting
advice, and should not be relied upon in that regard. Individuals
should seek the advice of professionals, as appropriate, regarding
any particular investment. Investors should consult their
professional advisors prior to implementing any changes to their
investment strategies. These investments may not be suitable to the
circumstances of an investor.
SOURCE Horizons ETFs Management (Canada) Inc.