TORONTO, May 14, 2020 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs" or the "Manager") is announcing special meetings
of shareholders (the "Meetings") of the BetaPro Crude Oil
Daily Bull ETF ("HOU") and the BetaPro Crude Oil -1x Daily
Bear ETF ("HOD" and together, "the ETFs") at which
shareholders will be asked to approve proposed changes to the
current investment objectives of the ETFs.
The meetings for shareholders of HOU and HOD will be held at
2:00 p.m. (Toronto time) and 2:30
p.m. (Toronto time) on
Thursday, July 2, 2020, respectively,
in a virtual-only format where shareholders may attend and
participate via live audio webcast.
Following an extensive review of the activities and structures
of HOU and HOD, the Manager has determined that it would be in the
best interests of the shareholders of the ETFs to change the
current investment objectives of these ETFs.
The current investment objectives have not been met since
April 22, 2020, when the Manager
instituted temporary measures as a result of the extraordinary
market volatility in the crude oil futures market. More details on
these measures can be accessed on the Manager's website at:
https://www.horizonsetfs.com/news/pressrelease
The current and proposed investment objectives are as
follows.
|
ETF
|
Current Investment
Objective
|
Proposed
Investment Objective
|
|
HOU
|
HOU seeks daily
investment results, before fees, expenses, distributions, brokerage
commissions and other transaction costs, that endeavour to
correspond to two times (200%) the daily performance of the
Solactive Light Sweet Crude Oil Front Month MD Rolling Futures
Index ER. HOU is denominated in Canadian dollars. Any U.S. dollar
gains or losses as a result of the ETF's investment will be hedged
back to the Canadian dollar to the best of its ability.
|
HOU seeks daily
investment results, before fees, expenses, distributions, brokerage
commissions and other transaction costs, that endeavour to
correspond to up to two times (200%) the daily performance of the
Horizons Crude Oil Rolling Futures Index. HOU is
denominated in Canadian dollars. Any U.S. dollar gains or losses as
a result of the ETF's investment are hedged back to the Canadian
dollar to the best of its ability.
|
|
HOD
|
HOD seeks daily
investment results, before fees, expenses, distributions, brokerage
commissions and other transaction costs, that endeavour to
correspond to two times (200%) the inverse (opposite) of the daily
performance of the Solactive Light Sweet Crude Oil Front Month MD
Rolling Futures Index ER. HOD is denominated in Canadian dollars.
Any U.S. dollar gains or losses as a result of the ETF's investment
will be hedged back to the Canadian dollar to the best of its
ability.
|
HOD seeks daily
investment results, before fees, expenses, distributions, brokerage
commissions and other transaction costs, that endeavour to
correspond to up to two times (200%) the inverse (opposite) of the
daily performance of the Horizons Crude Oil Rolling Futures Index.
HOD is denominated in Canadian dollars. Any U.S. dollar gains or
losses as a result of the ETF's investment are hedged back to the
Canadian dollar to the best of its ability.
|
These proposed investment objectives, if approved by
shareholders and implemented, change the underlying index used by
the ETFs and allow adjustment of the leverage ratio of the ETFs to
provide up to two times positive (HOU) and up to two times inverse
(HOD), the daily performance of the exposure to the Horizons Crude
Oil Rolling Futures Index (the "Proposed Oil Index").
The Proposed Oil Index will be a proprietary index owned and
operated by Horizons ETFs that will endeavour to provide exposure
to as close to the front month light sweet crude oil futures
contract as is deemed reasonable by the Manager, based on the
current market conditions for crude oil futures contracts.
Additional details on the proposed changes will be provided in
an information circular that will be made available to shareholders
of record as of May 22, 2020. Subject
to the receipt of all necessary regulatory, shareholder and other
third party approvals, it is expected that the changes to the
current investment objectives of HOU and HOD will take effect in
early July, 2020.
Additionally, if the changes to the current investment
objectives are approved at the ETF's shareholder meetings, Horizons
ETFs, as soon as practicable, plans to change the names of the ETFs
to the BetaPro Crude Oil Leveraged Daily Bull ETF (HOU) and the
BetaPro Crude Oil Inverse Leveraged Daily Bear ETF (HOD),
respectively.
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 more than $12.5 billion of
assets under management and 91 ETFs listed on major Canadian stock
exchanges.
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.
SOURCE Horizons ETFs Management (Canada) Inc.