Horizons AlphaPro Fiera Tactical Bond Fund Completes Conversion into ETF

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 income securities. 

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:

Class Fund Units Outstanding Ratio Number of ETF
Class E Units Issued
Class A Units 3,169,915 1:1 3,169,915
Class F Units 132,350 1.04398:1 138,170

"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

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ALPHAPRO MANAGEMENT INC.

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