Potential New U.S. Regulatory Restrictions on Commodity Markets - BetaPro will Continue to Monitor any Developments



    TORONTO, Aug. 25 /CNW/ - BetaPro Management Inc. ("BetaPro"), the trustee
and manager of various commodity-based exchange traded funds (the "Horizons
BetaPro Commodity ETFs"), is monitoring the current review of the energy
markets by the Commodity Futures Trading Commission (the "CFTC") in the United
States in relation to the potential imposition of position limits, and
possible exemptions, and how they may apply to and affect the Horizons BetaPro
Commodity ETFs. The CFTC recently held hearings at the end of July and in
early August regarding Concept Release 74 FR 12282 - Whether to Eliminate the
Bona Fide Hedge Exemption for Certain Swap Dealers and Create a New Limited
Risk Management Exemption for Speculative Position Limits.
    Mr. Adam Felesky, Chief Executive Officer of BetaPro, participated in the
CFTC hearings and asserted, based on empirical evidence, that the Horizons
BetaPro Commodity ETFs asset flows have generally pressured commodity prices
when they have been rising and supported commodity prices when they have been
falling. He further emphasized that as exchange traded funds ("ETFs") are an
aggregation of investors acting independently, ETFs are therefore not a source
of market manipulation or excess speculation, which were the primary areas of
concern of the CFTC.
    However, it is expected that the CFTC will impose position limits on
market participants, including the Horizons BetaPro Commodity ETFs and
counterparties to the Horizons BetaPro Commodity ETFs over-the-counter
derivatives investments. If position limits are imposed it is unclear at what
level position limits will be imposed, how they will be calculated and in
which markets. Draft legislation has also been introduced in the U.S. which
will change how standardized over-the-counter derivatives transactions are
regulated.
    BetaPro will continue to closely monitor these developments and their
potential impact on the Horizons BetaPro Commodity ETFs, particularly as other
competitive commodity ETFs have recently decided to suspend the issuance of
new securities. However, as the Horizons BetaPro Commodity ETFs do not hold
futures directly in any commodity market, and as the impact and scope of these
potential changes, if enacted, is uncertain, BetaPro has decided not to
suspend the issuance of additional Horizons BetaPro Commodity ETF securities
at this time such that investors can continue to have access to these markets
at fair value. BetaPro will keep its investors apprised of any changes as more
information becomes available.

    About BetaPro Management Inc. (www.HBPETFs.com)

    Horizons BetaPro Exchange Traded Funds are managed by BetaPro Management
Inc., Canada's sole provider of investment tools allowing investors to profit
when the market is rising or falling, or to reduce their risk by hedging their
existing market exposure. BetaPro is a subsidiary of Jovian Capital
Corporation and currently manages approximately $2.5 billion amongst 38 ETFs.

    About Jovian Capital Corporation (www.joviancapital.com)

    Jovian Capital Corporation is a publicly-traded company listed on the
Toronto Stock Exchange. 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 Funds
Inc., JovFunds Inc., JovFunds Management Inc., JovInvestment Management Inc.,
Leon Frazer & Associates Inc., MGI Financial Inc., MGI Securities Inc., MGI
Securities (USA) Inc., T.E. Wealth and Felcom Data Services Inc.) manages
approximately $12.5 billion of client assets ($6.5 billion in assets under
management and $6.0 billion in assets under administration). Additional
information is available at www.joviancapital.com and www.sedar.com.





For further information:

For further information: Howard Atkinson, President, BetaPro Management
Inc., (416) 777-5167; or Don Sangster, Investor Relations, Jovian Capital
Corporation, (416) 933-5744

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BetaPro Management Inc.

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