TORONTO, Dec. 31 /CNW/ - AlphaPro Management Inc. ("AlphaPro") is pleased to announce the conversion of the Horizons AlphaPro Fiera
Tactical Bond Fund (the "Fund") into an open-end exchange traded fund. The Fund has been renamed
Horizons AlphaPro Tactical Bond ETF (the "ETF") and the Class E units of the ETF (the "Class E Units") will begin trading on the Toronto Stock Exchange on January 4, 2010,
under the symbol HAF.
The ETF's investment objectives are to provide the holders of Class E
Units with: (i) a stable stream of tax efficient monthly distributions;
and (ii) the opportunity for capital appreciation through exposure to a
tactical asset allocation strategy that focuses on the returns of fixed
The Fund, originally a closed-end investment fund, issued approximately
3.3 million Class A units (the "Class A Units") and Class F units (the "Class F Units") for gross proceeds of approximately $33 million in July 2009. The
Fund was designed to convert its Class A Units and Class F Units into
Class E Units of an exchange traded fund (the "Conversion") at ratios based on the relative net asset values of each, after June
30, 2010, if the daily weighted average trading price of the Class A
Units was greater than a discount of 2% of the net asset value per
Class A Unit for that day or exceeded the initial issue price of $10.00
per Class A Unit, in each case, for a period of 10 consecutive trading
days, but no later than December 31, 2010. As of December 31, 2010,
the daily weighted average trading price of the Class A Units was not
greater than a 2% discount to the net asset value of the Class A Units
for any 10 consecutive trading day period and, as a result, the
Conversion became effective as of December 31, 2010. After the close of
business today, the Class A Units and Class F Units were converted into
Class E Units based on the following ratios:
Fund Units Outstanding
Number of ETF
Class E Units Issued
Class A Units
Class F Units
"We are pleased that AlphaPro will be able to offer this exceptional
income strategy in an exchange traded fund structure," said Ken McCord, President of AlphaPro. "The investment strategy of this ETF - a tactically managed portfolio
of bond ETFs - is truly unique to the Canadian investment space and we
think that offering it through an ETF will only enhance its appeal to
Canadian income-oriented investors.
The ETF will seek to achieve its investment objectives through exposure
to the actively managed investment portfolio of the Tactical Global
Bond ETF Fund (the "Portfolio") consisting primarily of ETFs, including inverse ETFs, that provide
exposure to global fixed income markets, including government treasury
securities, corporate bonds and high yield debt securities.
AlphaPro is the manager and trustee of the ETF, and its affiliate
JovInvestment Management Inc., the investment manager of the ETF, is
responsible for implementing the ETF's investment strategies and
overseeing the services of Fiera Sceptre Inc. who acts as sub-advisor
to the Portfolio.
About AlphaPro Management Inc. (www.hapetfs.com)
AlphaPro is an innovative financial services company specializing in
actively managed ETFs with approximately $500 million in assets under
management as of November 30, 2010. AlphaPro is a subsidiary of BetaPro
Management Inc. ("BetaPro"). BetaPro is Canada's largest provider of single, inverse, leveraged,
and spread ETFs. BetaPro managed approximately $2.4 billion in assets
in the BetaPro ETFs as of November 30, 2010. BetaPro is a subsidiary of
Jovian Capital Corporation (JOV:TSX).
About Jovian Capital Corporation
Jovian acquires, creates and grows financial services companies
specializing in wealth and asset management. The Jovian group of
companies (AlphaPro Management Inc., BetaPro Management Inc., Horizons
Exchange Traded Funds Inc., Horizons Funds Inc., JovFunds Management
Inc., JovInvestment Management Inc., Leon Frazer & Associates Inc., MGI
Financial Inc., MGI Securities Inc., MGI Securities (USA) Inc. and T.E.
Wealth) manages approximately $12.5 billion of client assets ($7.5
billion in assets under management and $5 billion in assets under
administration) as of November 30, 2010. Additional information is
available at www.joviancapital.com and www.sedar.com.
SOURCE ALPHAPRO MANAGEMENT INC.
For further information:
Ken McCord, President, AlphaPro Management Inc. at (416) 933-5746 or 1-866-641-5739