Canada's ETF Providers Announce Creation of the Canadian ETF Association

New organization will help raise awareness of $40 billion Canadian ETF industry through education and outreach to private and public sector stakeholders

TORONTO, May 19 /CNW/ - Three of Canada's leading exchange traded fund ("ETF") companies have agreed to collectively launch the Canadian ETF Association (the "CETFA"), an independent national association that will represent and promote the Canadian ETF industry.

The focus of the CETFA is to help educate institutional and retail investors as well as the advisor community on the benefits and uses of ETFs, provide industry statistics and commentary on ETF related issues to the Canadian financial media and advance industry issues with regulators, government agencies and interested third parties.

Increasingly, Canadian investors are choosing to use ETFs for their investment needs. Over the last five years, assets in Canadian-listed ETFs have grown an average of 27 per cent annually, from $12.3 billion in December 31, 2005 to $40.8 billion currently. There are almost 200 ETFs listed on the TSX as of April 30, 2011.

The CETFA expects to publish monthly reports on ETF sales activity in the future. These reports will include statistics on total assets under management and industry net sales figures broken down by member firm and ETF classification.

Membership in CETFA will be open to any Canadian Exchange Traded Fund provider. Thus far, three ETF providers are involved in the initiative, BMO ETFs, Claymore Investments Inc., and Horizons Exchange Traded Funds Inc.

A principal of each member company is automatically given a managing director role. The CETFA will initially have three managing directors who are senior executives representing their respective firms. They are:

Rajiv Silgardo, Co-CEO, BMO Global Asset Management;

Som Seif, President and Chief Executive Officer, Claymore Investments, Inc.; and

Howard Atkinson, President of Horizons Exchange Traded Funds Inc.

A chairman is selected from amongst the managing directors. The chair will serve as spokesperson for the organization for one term of a yet undetermined time period. Upon the completion of the term, the chair role will be given to one of the other CETFA managing directors.

It has been decided that the first chair of the CETFA for the upcoming term will be Howard Atkinson.

"I've been heavily involved in the Canadian ETF industry for more than 10 years now, and it has always been my hope that the industry would reach a level where it could create an industry organization like the CETFA," Mr. Atkinson said. "Due to the increasing prevalence of ETFs there has been a need to increase broad-based ETF investor education as well as a need to address growing regulatory and industry challenges. CETFA is going to allow the ETF industry to speak with one voice on these issues, which will only improve how the ETF industry serves its unitholders as well as enhance the already wide range of benefits that ETFs can offer Canadian investors."

"We are proud to be a part of the formation of the CETFA, and working with other ETF providers to offer greater transparency and education to the Canadian ETF landscape" Mr. Seif said.  "I look forward to the Association playing an integral role working with government regulators on ETF related industry issues, as well as developing ongoing practice standards."

"BMO is delighted to be one of the founding members of the CETFA," said Mr. Silgardo. "Since the launch of BMO's ETF business less than two years ago, we've seen our assets under management grow to more than $2 billion. This is an indication that, increasingly, Canadians are discovering the value of including ETFs in their investment portfolios. We look forward to working with our colleagues in the CETFA to help increase awareness of ETFs across Canada."   

About the CETFA
The Canadian ETF Association is the national body of exchange traded fund providers. Canadian investors have approximately $41 billion invested in nearly 200 Canadian-listed ETFs. As ETF usage continues to grow in Canada, the CETFA will seek to educate Canadians on the appropriate usage of exchange traded funds, as well as work proactively with members and regulators to ensure the ETF industry adopts best practice standards.

About BMO Asset Management Inc. (www.etfs.bmo.com)
BMO Asset Management Inc. is a Canadian institutional money manager with more than $40 billion in total assets under management. It is part of BMO Financial Group.  Clients include pensions, endowments, trusts, insurance company reserves, corporate surpluses and mutual funds.

About Claymore Investments, Inc. (www.claymoreinvestments.ca)
Claymore Investments, Inc. ("Claymore") is a Canadian leader in bringing intelligent, low cost exchange-traded funds in Canada through its family of 30 ETFs and 2 closed-end funds across broad asset classes including core equity, global sectors, fixed income and commodities with over $6.3 billion in assets under management as of April 30, 2011. Claymore Investments, Inc. is a wholly-owned subsidiary of Guggenheim Funds Services Group, Inc., a financial services and asset management company based in the Chicago, Illinois area and an indirect subsidiary of Guggenheim Partners, LLC, ("Guggenheim") a global, diversified financial services firm with more than $100 billion in assets under supervision. Guggenheim, through its affiliates, provides investment management, investment advisory, insurance, investment banking, and capital markets services. The firm is headquartered in Chicago and New York with a global network of offices throughout the United States, Europe, and Asia.

About Horizons Exchange Traded Funds Inc. (www.horizonsetfs.com)
Horizons Exchange Traded Funds Inc. ("Horizons ETFs") is an innovative financial services company 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 $3 billion in assets under management and more than 70 listings on the Toronto Stock Exchange, the Horizons ETFs family makes up the largest selection of ETFs in Canada. Horizons ETFs is a member of the Jovian Capital Corporation (TSX: JOV) group of companies.

SOURCE HORIZONS EXCHANGE TRADED FUNDS

For further information:

Chair: Howard Atkinson, President, Horizons Exchange Traded Funds Inc.,
(416) 777-5167 or hatkinson@horizonsetfs.com

Managing Director: Rajiv Silgardo. Co-CEO, BMO Global Asset Management.,
To speak with Rajiv Silgardo, please contact: Nini Krishnappa, 416-867-4897 or nini.krishnappa@bmo.com

Managing Director: Som Seif, President & CEO, Claymore Investments, Inc.,
(416) 813-2006 or sseif@claymoreinvestments.ca

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HORIZONS EXCHANGE TRADED FUNDS

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