Horizons announces December 2013 distributions for its Covered Call ETFs

TORONTO, Dec. 19, 2013 /CNW/ - Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. (collectively "Horizons ETFs") are pleased to announce the distribution amounts per unit (the "Distributions") for certain of the Horizons ETFs family of exchange traded funds (the "ETFs"), for the 2013 tax year end, as indicated in the table below.

The ex-dividend date for the Distributions is anticipated to be December 27, 2013 for all unitholders of record on December 31, 2013.  The Distributions will be paid in cash or, if the unitholder has enrolled in the respective ETF's dividend reinvestment plan (DRIP), reinvested in additional units of the applicable ETF, on or about January 13, 2014. There will be no further income or capital gains distributions for the ETFs for the 2013 tax year other than what is indicated in the following table.

ETF Name Ticker
Symbol
Current
Month
Distribution
Rate
NAV
Change
 from Prior
Month(1)
Current
Month
Yield(2)
Prior
Month
Yield(3)
Absolute
Change in
Yield from
Prior
Month(4)
Horizons Enhanced Income Equity ETF HEX $0.04526 -0.27% 7.66% 5.27% 2.39%
HEX.A $0.04074 -0.33% 6.87% 4.48% 2.39%
Horizons Enhanced Income Energy ETF HEE $0.03722 -0.83% 7.42% 6.01% 1.41%
HEE.A $0.03347 -0.89% 6.63% 5.21% 1.42%
Horizons Enhanced Income Gold Producers ETF HEP $0.11732 -5.15% 24.77% 12.05% 12.72%
HEP.A $0.11302 -5.21% 23.98% 11.26% 12.72%
Horizons Enhanced Income Financials ETF HEF $0.04512 -0.90% 6.12% 5.90% 0.22%
HEF.A $0.03944 -0.96% 5.33% 5.11% 0.22%
Horizons Enhanced Income International Equity ETF HEJ $0.04258 -0.84% 6.02% 5.52% 0.50%
HEJ.A $0.03698 -0.90% 5.23% 4.73% 0.50%
Horizons Enhanced Income US Equity (USD) ETF (5) HEA.U $0.05744 0.73% 6.12% 4.62% 1.50%
HEA.V $0.04995 0.67% 5.32% 3.83% 1.49%
Horizons Enhanced US Equity Income ETF HES $0.04043 0.61% 5.20% 3.93% 1.27%
HES.A $0.03428 0.55% 4.41% 3.14% 1.27%
Horizons Active S&P/TSX 60TM Index Covered Call ETF HAX $0.04967 -0.62% 5.98% 2.93% 3.05%
HAX.A $0.04311 -0.69% 5.20% 2.14% 3.06%
Horizons Gold Yield ETF HGY $0.04450 -1.40% 8.44% 8.05% 0.39%
HGY.A $0.03998 -1.46% 7.59% 7.19% 0.40%
Horizons Silver Yield ETF(6) HZY $0.04350 -0.05% 10.23% 10.01% 0.22%
HZY.A $0.03988 -0.11% 9.38% 9.16% 0.22%
Horizons Crude Oil Yield ETF(6) HOY $0.05300 1.44% 8.34% 9.01% -0.67%
HOY.A $0.04761 1.37% 7.50% 8.16% -0.66%
Horizons Natural Gas Yield ETF HNY $0.04100 10.29% 6.10% 12.03% -5.93%
HNY.A $0.03532 10.22% 5.26% 11.18% -5.92%

(1) Based on the period November 20, 2013 to December 18, 2013, where the prior month's net asset value per unit is adjusted to include the prior month's distribution.
(2) Annualized and based on the applicable December 18, 2013 net asset value per unit which is available at www.HorizonsETFs.com.
(3)  Annualized and based on the applicable November 20, 2013 net asset value per unit which is available at www.HorizonsETFs.com.
(4) The absolute change of the prior month's previously announced annualized distribution yield to the current month's annualized distribution yield.
(5) Distributions for Horizons Enhanced Income US Equity (USD) ETF are declared and paid in U.S. dollars.
(6) As previously announced on October 31, 2013, the Horizons Silver Yield ETF and Horizons Crude Oil Yield ETF will terminate on January 10, 2014. These distributions are expected to be the final distributions paid for the two ETFs.

Each ETF makes Distributions to unitholders based on the amount of call option premiums received during the month, less any amounts paid to repurchase call options (together, "Net Call Option Premiums"), along with any dividend income received, less expenses payable by the ETF. Net Call Option Premiums, and therefore the amounts distributed, tend to reflect changes in the prevailing implied volatilities, either higher or lower. Should, in the future, implied volatility levels increase from current levels or amounts paid to repurchase options decrease, it could generally be expected that Net Call Option Premiums would, but not always, increase. Distributions will vary from period to period.

For further information regarding the Distributions please visit www.HorizonsETFs.com

Certain statements may constitute a forward looking statement, including those identified by the expression "expect" and similar expressions (including grammatical variations thereof) to the extent they relate to the ETFs. The forward-looking statements are not historical facts but reflect the ETFs, the ETF's managers or Horizons ETFs' 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 the ETF's forward looking statements. These forward-looking statements are made as of the date hereof and the ETFs 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.

Commissions, trailing commissions, management fees and expenses all may be associated with investments in the ETFs. The ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing.

About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)

Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. are innovative financial services companies offering the Horizons ETFs family of exchange-traded funds. The Horizons ETFs family includes a broadly diversified range of investment tools with solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. With approximately $4.2 billion in assets under management and 73 ETFs listed on the Toronto Stock Exchange, the Horizons ETFs family makes up one of the largest families of ETFs in Canada. Horizons ETFs Management (Canada) Inc. and AlphaPro Management Inc. are members of the Mirae Asset Financial Group.

 

SOURCE Horizons ETFs Management (Canada) Inc.

For further information:

Martin Fabregas, Investor Relations, (416) 601-2508 or 1-866-641-5739.