TORONTO, June 21,
2022 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs" or the
"Manager") held special meetings of unitholders of its suite
of covered call ETFs listed in the table below (the "ETFs"),
on June 21, 2022, during which
unitholders approved all matters relating to proposed changes to
the investment objectives of the ETFs 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 a circular sent to all unitholders and
announced by press release dated May 17,
2022, both available at www.sedar.com and
www.HorizonsETFs.com. An update to the circular in respect of
Horizons Enhanced Income Gold Producers ETF was announced by press
release on June 2, 2022 and was
subsequently filed on www.sedar.com.
The new investment objectives, which will be effective on
June 24, 2022, follow an extensive
review by the Manager of the ETFs. The ETFs will begin to trade
under their new names and tickers at the opening of trading on
June 27, 2022. The changes are
further described below:
|
Current Name and
Ticker
|
New Name and
Ticker
|
New Investment
Objectives
|
|
Horizons Enhanced
Income
Equity ETF ("HEX")
|
Horizons Canadian Large
Cap
Equity Covered Call ETF
("CNCC")
|
CNCC seeks to provide:
(a) exposure to
the performance of the large-cap segment
of the Canadian equity market; and (b)
monthly distributions of dividend and
call option income. To mitigate downside
risk and generate income, CNCC will
employ a dynamic covered call option
writing program.
|
|
Horizons Enhanced
Income
Energy ETF ("HEE")
|
Horizons Canadian Oil
and
Gas Equity Covered Call ETF
("ENCC")
|
ENCC seeks to provide,
to the extent
possible and net of expenses: (a)
exposure to the performance of an index
of Canadian companies that are involved
in the crude oil and natural gas industry
(currently, the Solactive Equal Weight
Canada Oil & Gas Index); and (b)
monthly distributions of dividend and
call option income. To mitigate downside
risk and generate income, ENCC will
employ a dynamic covered call option
writing program.
|
|
Horizons Enhanced
Income
Financials ETF
("HEF")
|
Horizons Equal
Weight
Canadian Bank Covered Call
ETF
("BKCC")
|
BKCC seeks to provide,
to the extent
possible and net of expenses: (a)
exposure to the performance of an index
of equal-weighted equity securities of
diversified Canadian banks (currently,
the Solactive Equal Weight Canada
Banks Index); and (b) monthly
distributions of dividend and call option
income. To mitigate downside risk and
generate income, BKCC will employ a
dynamic covered call option writing
program.
|
|
Horizons Enhanced
Income US
Equity (USD) ETF
("HEA.U")*
|
Horizons US Large
Cap
Equity Covered Call ETF
("USCC.U")
|
USCC.U seeks to
provide: (a) exposure
to the performance of the large-cap
market segment of the U.S. equity market
and (b) monthly U.S. dollar distributions
of dividend and call option income. To
mitigate downside risk and generate
income, USCC.U will employ a dynamic
covered call option writing program.
USCC.U will not seek to hedge its
exposure to the U.S. dollar back to the
Canadian dollar.
|
|
Horizons Enhanced
Income
International Equity ETF
("HEJ")
|
Horizons NASDAQ-100
Covered Call ETF
("QQCC")
|
QQCC seeks to provide,
to the extent
possible and net of expenses: (a)
exposure to the performance of an index
of the largest domestic and international
nonfinancial companies listed on the
NASDAQ stock market (currently, the
NASDAQ-100® Index); and (b) monthly
U.S. dollar distributions of dividend and
call option income. To mitigate downside
risk and generate income, QQCC will
employ a dynamic covered call option
writing program. QQCC will not seek to
hedge its exposure to the U.S. dollar back
to the Canadian dollar.
|
|
Horizons Enhanced
Income Gold
Producers ETF
("HEP")
|
Horizons Gold
Producer
Equity Covered Call ETF
("GLCC")
|
GLCC seeks to provide,
to the extent
possible and net of expenses: (a)
exposure to the performance of an index
of equity securities of diversified North
American listed gold producers
(currently, the Solactive North American
Listed Gold Producers Index) and (b)
monthly distributions of dividend and
call option income. To mitigate downside
risk and generate income, GLCC will
employ a dynamic covered call option
writing program.
|
|
* The Canadian
dollar version, "HEA", will change to
"USCC".
|
There are no changes to the management fee of the ETFs. Further
details regarding the changes can be found at
www.sedar.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 and offers 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 has over $22 billion of assets
under management and 104 ETFs listed on major Canadian stock
exchanges.
Commissions, management fees and expenses all may be
associated with an investment in exchange traded products (the
"Horizons Exchange Traded Products") managed by Horizons ETFs
Management (Canada) Inc. 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.
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.
Additional information regarding an ETF is contained in its
prospectus (as amended), ETF Facts, the most recently filed interim
and annual management reports of fund performance and the annual
audited and interim unaudited financial statements of each ETF. You
should review these documents carefully. Any of the documents of
the type referred to above including any material change report
(excluding confidential material change reports) and prospectus
filed by each ETF and, if applicable, receipted by a securities
commission or similar authority in Canada after the date of the Circular will be
deemed to be incorporated by reference into this Circular. You may
obtain a copy of an ETF's prospectus (as amended) and any of the
documents incorporated by reference herein by accessing the SEDAR
website at www.sedar.com or the Manager's website at
www.HorizonsETFs.com, or at no charge by calling the Manager's
toll-free number at 1-866-641-5739 or by faxing a request to the
Manager at 416-777-5181.
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.
The financial instrument is not sponsored, promoted, sold, or
supported in any other manner by Solactive AG nor does Solactive AG
offer any express or implicit guarantee or assurance either with
regard to the results of using the Index and/or Index trade name or
the Index Price at any time or in any other respect. The Index is
calculated and published by Solactive AG. Solactive AG uses its
best efforts to ensure that the Index is calculated correctly.
Irrespective of its obligations towards the Issuer, Solactive AG
has no obligation to point out errors in the Index to third parties
including but not limited to investors and/or financial
intermediaries of the financial instrument. Neither publication of
the Index by Solactive AG nor the licensing of the Index or Index
trade name for the purpose of use in connection with the financial
instrument constitutes a recommendation by Solactive AG to invest
capital in said financial instrument nor does it in any way
represent an assurance or opinion of Solactive AG with regard to
any investment in this financial instrument.
Nasdaq®, Nasdaq-100®,and Nasdaq-100 Index®, are trademarks of
The NASDAQ OMX Group, Inc.(which with its affiliates is referred to
as the "Corporations") and are licensed for use by Horizons ETFs
Management (Canada) Inc. The
Fund(s)have not been passed on by the Corporations as to their
legality or suitability. The Fund(s) are not issued, endorsed,
sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO
WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND(S) or
PRODUCT(S).
SOURCE Horizons ETFs Management (Canada) Inc.