TORONTO, Feb. 21, 2012 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. ("AlphaPro") are pleased to announce that the Horizons Gold Yield Fund (the "Fund") will, subject to regulatory approval, convert into an open-end
exchange traded fund and be renamed the Horizons Gold Yield ETF (the "ETF") after the close of business on February 27, 2012 (the "Conversion"). Upon completion of the Conversion, the Class E units of the ETF (the
"Class E Units") will, subject to regulatory approval, begin trading on the Toronto
Stock Exchange ("TSX") on February 28, 2012, under the symbol HGY. Concurrent with, but unrelated to, the Conversion, the ETF will begin
issuing Advisor Class units (the "Advisor Class Units") which will, subject to regulatory approval, also begin trading on the
TSX on February 28, 2012, under the symbol HGY.A.
The Conversion will not impact the monthly distributions declared today
in a separate press release for the Fund's Class A and Class F
unitholders of record as of February 29, 2012.
The Fund's Class A units and Class F units were designed to convert into
Class E units of an exchange traded fund at ratios based on the
relative net asset values of each. The Class A units of the Fund will
convert into Class E Units on a one-for-one (1:1) basis. The Fund's
Class F units will convert into Class E Units at a ratio to be
determined by the respective net asset values of the Class A units of
the Fund and Class F units of the Fund as at the close of business on
February 27, 2012.
The ETF's investment objectives are to provide holders of Class E and
Advisor Class Units with: with: (i) exposure to the price of gold
bullion hedged to the Canadian dollar, less the ETF's fees and
expenses; (ii) tax-efficient monthly distributions; and (iii) in order
to mitigate downside risk and generate income, exposure to a covered
call option writing strategy.
AlphaPro is the manager and trustee of the ETF, and its affiliate
Horizons Investment Management Inc., the investment manager of the ETF,
and the manager, trustee and investment manager of the Gold Yield
Trust, is responsible for implementing the investment strategies of the
ETF and Gold Portfolio.
About Horizons Exchange Traded Funds Inc. (www.horizonsetfs.com)
Horizons ETFs is an innovative financial services company offering the
Horizons ETFs family of ETFs. 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 more than $3.3 billion in
assets under management and 77 ETFs listed on the Toronto Stock
Exchange, the Horizons ETFs family makes up the largest selection of
ETFs in Canada. Horizons ETFs is a subsidiary of Horizons ETFs
Management (Canada) Inc. and a member of the Mirae Asset Financial
SOURCE Horizons ETFs Management (Canada) Inc.
For further information:
Martin Fabregas, Investor Relations, (416) 601-2508.