TORONTO, Feb. 27, 2018 /CNW/ - Horizons ETFs
Management (Canada) Inc. (the
"Manager") has announced today that it will not be accepting
any new subscriptions for units of the BetaPro S&P 500 VIX
Short-Term Futures™ Inverse ETF ("HVI"), which
trades on the Toronto Stock Exchange under the ticker symbol
HVI.
Due to a change in business, operations and affairs of HVI, the
Manager does not expect HVI to be able to meet its current stated
investment objective after the close of trading today. Accordingly,
the Manager has suspended new subscriptions until further notice.
Redemptions on HVI will continue to be accepted in the normal
course. After the close of trading today, it is anticipated by the
Manager that the performance of HVI will only correspond to
approximately one-half times the inverse (opposite) multiple of the
daily performance of the S&P 500 VIX Short Term Futures
Index.
The Manager anticipates that purchases of new units at the
available offer price on the secondary market are not expected to
be reflective of the underlying net asset value per unit. The
Manager anticipates that the secondary market will continue to
provide holders of units with a forum to sell units at a price
reflective of the net asset value per unit.
It is imperative to note that units of HVI are expected to trade
at a substantial premium to their net asset value while
subscriptions of new units are suspended. As a result, the Manager
strongly discourages investors from purchasing new units of HVI at
this time.
The Manager is assessing various courses of action with respect
to HVI, and currently intends to call a special meeting of
unitholders of HVI as soon as practicable, in order to amend HVI's
investment objectives. Should such a change to the investment
objective not prove to be practicable, the Manager will consider
other courses of action with respect to HVI. Any course of action
with respect to HVI will be taken in accordance with the
declaration of trust of HVI, and in accordance with applicable
securities law.
If the Manager pursues a change to the investment objective of
HVI, the Manager currently anticipates that the investment
objective would change from seeking to correspond to one times the
inverse (opposite) multiple of the daily performance of the S&P
500 VIX Short Term Futures Index to seeking to correspond to
one-half times the inverse (opposite) multiple of the daily
performance of the S&P 500 VIX Short Term Futures Index.
The Manager will advise if there are any
further developments with respect to HVI.
About Horizons ETFs Management (Canada) Inc.
(www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial
services company and offers one of the largest suites of exchange
traded funds in Canada. The
Horizons ETFs product suite 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 $9.9
billion of assets under management and 82 ETFs listed on the
Toronto Stock Exchange. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset
Global Investments Group.
Horizons ETFs is a Member of Mirae Asset Global Investments.
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 values change frequently and
past performance may not be repeated. The prospectus contains
important detailed information about the Horizons Exchange Traded
Products. Please read the relevant prospectus before
investing.
The Horizons Exchange Traded Products consist of the Horizons
Index ETFs ("Index ETFs"), 2x Daily Bull and 2x Daily Bear ETFs
("2x Daily ETFs"), Inverse ETFs ("Inverse ETFs") and VIX ETFs
(defined below). The 2x Daily ETFs and certain other Horizons
Exchange Traded Products use leveraged investment techniques that
can magnify gains and losses and may result in greater volatility
of returns. These Horizons Exchange Traded Products are subject to
leverage risk and may be subject to aggressive investment risk and
price volatility risk, which, where applicable, are described in
their respective prospectuses. Each 2x Daily ETF seeks a return,
before fees and expenses, that is either 200% or -200% of the
performance of a specified underlying index, commodity or benchmark
(the "Target") for a single day. Each Index ETF or Inverse ETF
seeks a return that is 100% or -100%, respectively, of the
performance of a Target. Due to the compounding of daily returns, a
2x Daily ETF's or Inverse ETF's returns over periods other than one
day will likely differ in amount and, for the 2x Daily ETFs,
possibly direction from the performance of their respective
Target(s) for the same period. The Horizons Exchange Traded
Products whose Target is the S&P 500 VIX Short-Term Futures
Index™ (the "VIX ETFs"), one of which is a 2x Daily VIX
ETF, one of which is a (1x) VIX ETF, and one of which is a (-1x)
Inverse VIX ETF as described in their prospectus, are speculative
investment tools that are not conventional investments. The VIX
ETFs' Target is highly volatile. As a result, the VIX ETFs are not
generally viewed as stand-alone long-term investments.
Historically, the VIX ETFs' Target has tended to revert to a
historical mean. As a result, the performance of the VIX ETFs'
Target is expected to be negative over the longer term and neither
the 2x Daily nor (1x) VIX ETFs nor their Target are expected to
have positive long term performance. In addition, the VIX ETFs'
Target has historically experienced some significant one-day
increases when equity markets have had large negative returns
which, if repeated, could cause the Inverse (-1x) VIX ETF to suffer
substantial losses. Investors should monitor their holdings, as
frequently as daily, to ensure that they remain consistent with
their investment strategies.
SOURCE Horizons ETFs Management (Canada) Inc.