TORONTO, Dec. 20 /CNW/ - AlphaPro Management Inc. ("AlphaPro") is pleased to announce the closing of the initial public offering of
4.6 million Class A units and approximately 0.4 million Class F units of the Horizons Gold Yield Fund (the "Fund"), for gross proceeds of more than $50.3 million. The Class A units are
listed for trading on the Toronto Stock Exchange ("TSX") under the symbol HGY.UN. The Fund has also granted the agents an over-allotment option to acquire
additional Class A units exercisable at any time during the next thirty
The Fund is expected to automatically convert into an actively managed
exchange traded fund ("ETF") by no later than July 30, 2012.
The Fund's investment objectives are to provide holders of Units with:
(i) exposure to the price of gold bullion hedged to the Canadian
dollar, less the Fund's fees and expenses; and (ii) tax-efficient
monthly distributions, initially expected to be $0.0542 per Unit ($0.65
per annum to yield 6.5% on the issue price of $10.00 per Unit). It is
initially expected that monthly distributions received by investors
will consist primarily of return of capital.
The Fund was created to offer investors a low cost exposure to the price
of gold bullion, while providing monthly, tax-efficient distributions.
The Fund will seek to achieve its investment objectives by using the
net proceeds of the offering to gain exposure to a portfolio consisting
of securities and other instruments that provide exposure to the price
of gold bullion (the "Gold Portfolio"). The Gold Portfolio will be managed by JovInvestment Management Inc.
(the "Portfolio Manager"). The Portfolio Manager intends to write at-the-money covered call
options on approximately, and not more than, 33% of the securities in
the Gold Portfolio. The Portfolio Manager will not manage the call
option writing strategy to achieve a specific target return, but will
manage it to generate attractive option premiums that temper the
volatility associated with owning a portfolio of securities that
provide exposure to the price of gold bullion
"We are extremely pleased with the response to our latest offering from
Horizons AlphaPro as we believe gold has been one of the best asset
classes to be invested in over the last decade," said Ken McCord, President of AlphaPro. "The Horizons Gold Yield Fund offers a strategy that allows investors to
receive the benefits of exposure to gold bullion, while at the same
time earning a tax-efficient monthly yield."
AlphaPro is the manager and trustee of the Fund and its affiliate
JovInvestment Management Inc. is the investment manager of the Fund,
responsible for implementing the Fund's investment strategies.
The syndicate of agents for the offering is being led by BMO Capital
Markets, CIBC and National Bank Financial Inc. and includes, RBC
Capital Markets, Scotia Capital Inc., Canaccord Genuity Corp., HSBC
Securities (Canada) Inc., GMP Securities L.P., Raymond James Ltd.,
Dundee Securities Corporation, Mackie Research Capital Corporation,
Macquarie Private Wealth Inc., MGI Securities Inc., Rothenberg Capital
Management Inc. and Wellington West Capital Markets Inc.
The Fund (HGY.UN:TSX) has closed the offering of its initial units and
will begin trading on the TSX when the market opens this morning.
Commissions, trailing commissions, management fees and expenses all may
be associated with investments in the Fund. The Fund is not guaranteed,
its value will change frequently and past performance may not be
repeated. This offering is only made by prospectus. The prospectus
contains important detailed information about the securities being
offered. Copies of the prospectus may be obtained from one the agents
above. Investors should read the prospectus before making an investment
About AlphaPro Management Inc. (www.HAPETFs.com)
AlphaPro is an innovative financial services company specializing in
actively managed exchange traded funds with assets under management of
approximately $475 million in AUM million as of November 30, 2010.
AlphaPro is a subsidiary of BetaPro Management Inc. ("BetaPro").
BetaPro is Canada's largest provider of leveraged, inverse leveraged
and inverse ETFs. BetaPro manages approximately $2.4 billion in assets
as of November 30, 2010. BetaPro is a subsidiary of Jovian Capital
SOURCE AlphaPro Management Inc.
For further information:
Ken McCord, President, AlphaPro Management Inc. (416) 933-5746