TORONTO, April 7 /CNW/ - Jovian Capital Corporation ("Jovian") (TSX: JOV) and its subsidiary BetaPro Management Inc. ("BetaPro"), the manager of the Horizons BetaPro family of Exchange Traded Funds,
are pleased to announce the launch of the Horizons U.S. Dollar Currency
ETF (the "U.S. Dollar ETF" or "DLR"), an exchange traded fund ("ETF") which offers investors direct access to foreign currency investing.
The U.S. Dollar ETF will begin trading on the Toronto Stock Exchange ("TSX") on April 7, 2011, under the symbol DLR.
The U.S. Dollar ETF seeks to reflect the price in Canadian dollars of
the U.S. dollar, net of expenses, by investing primarily in cash and
cash equivalents that are denominated in the U.S. dollar.
DLR is structured as an ETF and therefore has all the characteristics of
an ETF, including intraday liquidity, low cost, and transparency. The
U.S. Dollar ETF will make monthly distributions of any income earned on
the cash and cash equivalents it holds, net of fees and expenses.
"Given our proximity to the United States, Canadian individuals and
businesses may want to hold U.S. dollars for a variety of reasons.
Canadian financial institutions can charge in excess of 2% to convert
our dollar into U.S. dollars," said Howard Atkinson, President of BetaPro. "Using an ETF is an innovative way for investors to lower the cost of
gaining access to the U.S. dollar while increasing their flexibility to
buy and sell U.S. dollar exposure throughout the day."
With an annual management fee of only 0.45%, the U.S. Dollar ETF
provides a low cost method for investors to gain access to the U.S.
Traditionally, investing in a foreign currency could only be facilitated
through a financial institution or by trading futures. While many
investors may not think of a U.S. dollar bank account as investing, the
value of the account in Canadian dollars will fluctuate with changes in
exchange rates. Investing in currency futures can potentially involve a
high degree of leverage and, for most investors, requires setting up a
separate trading account.
"There are other ways to gain access to the U.S. dollar, but we believe
the use of an ETF is probably the most cost efficient way for the
majority of Canadian investors to buy and sell currency exposure," said Mr. Atkinson.
Investors in DLR will be able to participate in commission-free
transactions through a Pre-Authorized Deposit ("PACC") and Systematic Withdrawal Plan ("SWP"). DLR can be redeemed for U.S. dollars through your broker in 25,000
unit lot sizes, offering larger investors an additional redemption
The U.S. Dollar ETF has closed the offering of its initial units and will begin trading on
the TSX when the market opens this morning.
Commissions, management fees and applicable sales taxes all may be
associated with an investment in the U.S Dollar ETF. The U.S Dollar ETF
is not guaranteed, its value changes frequently, and past performance
may not be repeated. Please read the prospectus before investing.
About BetaPro Management Inc. (www.horizonsetfs.com)
BetaPro manages the Horizons BetaPro family of exchange traded funds, 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. The Horizons BetaPro
ETFs include several types of structures: single, inverse, leveraged,
inverse leveraged and spread ETFs. BetaPro is a subsidiary of Jovian
Capital Corporation (TSX:JOV), with assets under management ("AUM") of approximately $2.3billion as of March 31, 2011, amongst 49 ETFs.
Its subsidiary, AlphaPro Management Inc., Canada's largest provider of
actively-managed ETFs, has approximately $609 million of AUM as of
March 31, 2011 amongst 17 ETFs and funds. Together under the Horizons
ETFs brand, the two companies offer more than 60 ETF solutions with
almost $3 billion of AUM as of March 31, 2011.
About Jovian Capital Corporation
Jovian acquires, creates and grows financial services companies
specializing in three primary market segments: wealth management,
traditional asset managers, and exchange traded fund asset managers.
The Jovian group of companies (AlphaPro Management Inc., BetaPro
Management Inc., Hahn Investment Stewards & Company Inc., Horizons
Exchange Traded 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 $13.0 billion of client assets ($7.5 billion in assets
under management and $5.5 billion in assets under administration).
Additional information is available at www.joviancapital.com and www.sedar.com.
SOURCE Jovian Capital Corporation
For further information:
Don Sangster, Investor Relations, Jovian Capital Corporation, (416) 933-5744; or
Philip Armstrong, Chief Executive Officer, Jovian Capital Corporation, (416) 933-5752.