Horizons AlphaPro Income Plus Fund Completes Conversion into ETF

TORONTO, May 6 /CNW/ - AlphaPro Management Inc. ("AlphaPro") is pleased to announce the conversion of the Horizons AlphaPro Income Plus Fund (the "Fund") into an open-end exchange traded fund. The Fund has been renamed the Horizons AlphaPro Income Plus ETF (the "Income Plus ETF") and the Class E units of the Income Plus ETF (the "Class E Units") will begin trading on the Toronto Stock Exchange on May 9, 2011, under the symbol HAP.

The investment objectives of the Income Plus ETF are to provide holders of Class E Units with: (i) not less than semi-annual distributions; and (ii) the opportunity for capital appreciation in periods of inflation and deflation by tactically allocating exposure of the Income Plus ETF to: (a) United States government ("U.S.") Treasury bonds and U.S. Treasury Inflation-Protected Securities; (b) commodities; and (c) money market securities. The Income Plus ETF will seek to hedge its foreign currency exposure at all times.

The Fund was originally a closed-end fund issued approximately 2.1 million Class A units (the "Class A Units") and approximately 430,000 Class F Units (the "Class F Units") for net proceeds of approximately $31.2 million.

After the close of business today, the Class A and Class F Units of the Fund were converted into a total of 3,139,620 Class E Units of the Income Plus ETF based on the following ratios:

Class Fund Units
Outstanding
Ratio Number of ETF
Class E Units Issued
Class A Units 2,690,904 1:1 2,690,904
Class F Units 431,300 1.040381:1 448,716

The Income Plus ETF will continue to be sub-advised by Barclays Capital Fund Solutions - Americas ("Barclay's Capital"), which manages more than $6.5 billion in client assets.

"We're excited to offer this unique investment strategy to Canadian investors as an ETF. Barclay's Capital uses an index strategy that seeks to take advantage of both inflationary and deflationary market conditions. This ETF should appeal to income investors uncertain about how to position their fixed income portfolio to deal with these very different market conditions which can have a profound impact on the returns of fixed income securities," said Ken McCord, President of AlphaPro.

Commissions, trailing commissions, management fees and expenses all may be associated with investments in the Income Plus ETF. The Income Plus ETF is not guaranteed, its value will change frequently and past performance may not be repeated. Please read the prospectus before investing.

A copy of the Income Plus ETF's final prospectus is available at www.sedar.com or on Horizons Exchange Traded Funds website at www.horizonsetfs.com.

About AlphaPro Management Inc. (www.horizonsetfs.com)

AlphaPro is an innovative financial services company specializing in actively managed exchange traded funds with current assets under management ("AUM") with more than $650 million amongst 19 ETFs and funds as of April 29, 2011. AlphaPro is a subsidiary of BetaPro Management Inc. ("BetaPro"). BetaPro is Canada's largest provider of leveraged, inverse leveraged, single, single inverse and spread ETFs. BetaPro manages approximately $2.3 billion in assets amongst 50 ETFs as of April 29, 2011. Together under the Horizons ETFs brand, the two companies currently have 70 TSX listings and approximately $3 billion of AUM. BetaPro is a subsidiary of Jovian Capital Corporation (JOV: TSX).

 

SOURCE Horizons Exchange Traded Funds

For further information:

Ken McCord, President, AlphaPro Management Inc., (416) 933-5746 or 1-866-641-5739 or visit www.horizonsetfs.com

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