Horizons Enhanced U.S. Equity Income Fund announces Initial Public Offering

TORONTO, April 29 /CNW/ - Horizons Enhanced U.S. Equity Income Fund (the "Fund") is pleased to announce the filing of a preliminary prospectus in respect to the initial public offering of its Class A Units (the "Units") at $10.00 per Unit. AlphaPro Management Inc. ("AlphaPro") is the manager and trustee of the Fund.

The Fund's investment objectives are to provide holders of Units with: (a) the performance of an equal weighted portfolio of large capitalization U.S. companies; (b) the opportunity for capital appreciation; (c) monthly distributions; and (d) lower overall volatility of portfolio returns than would be experienced by owning the Portfolio Securities (as defined below) without employing a covered call option strategy. The Fund will generally seek to hedge substantially all of its exposure to the U.S. dollar back to the Canadian dollar at all times.

To seek to achieve its investment objectives, the Fund will invest, on an approximately equally weighted basis, in a portfolio (the "Portfolio") of securities of the 50 largest and most liquid U.S. companies, as measured by market capitalization, listed on the New York Stock Exchange or the NASDAQ Stock Market (the "Portfolio Securities"). The Portfolio will be rebalanced semi-annually on an equally weighted basis. To seek to mitigate downside risks, generate cashflow and allow for potential capital appreciation, the Fund will generally write "out-of-the-money" covered call options on 100% of the Portfolio Securities. The call options will be written with strike prices that are generally 5% above the current market price of the Portfolio Securities, with terms of one to two months depending on the prevailing levels of volatility.

The Fund's strategy does not involve managing the Portfolio to achieve a specific distribution target. The initial monthly distribution for the Fund is expected to be $0.0667 per Unit (equivalent to 8.0% per annum based on the issue price of $10.00 per Unit).

The investment manager for the Fund is JovInvestment Management Inc., an affiliate of AlphaPro.

The Fund is expected to automatically convert into an exchange traded fund ("ETF") by no later than November 30, 2012.

Prospective purchasers may purchase Units either by cash payment or an exchange of freely tradeable securities described in the table below. Prospective purchasers under the exchange option will be required to deposit their exchange eligible securities prior to 5:00 p.m. (Toronto time) on Friday June 10, 2011, in the manner described in the preliminary prospectus.

U.S. Equity Issuer     Symbol     CUSIP No.
3M Company MMM     88579Y101    
Abbott Laboratories ABT 002824100
Altria Group, Inc. MO 02209S103
Amazon.com, Inc. AMZN 023135106
Amgen Inc. AMGN 031162100
Apple Inc. AAPL 037833100
AT&T Inc. T 00206R102
Bank of America Corporation BAC 060505104
Berkshire Hathaway Inc., Class B BRK.B 084670702
The Boeing Company BA 097023105
Caterpillar Inc. CAT 149123101
Chevron Corporation CVX 166764100
Cisco Systems, Inc. CSCO 17275R102
Citigroup Inc. C 172967101
The Coca-Cola Company KO 191216100
Comcast Corporation CMCSA 20030N101
ConocoPhillips COP 20825C104
E. I. du Pont de Nemours and Company DD 263534109
EMC Corporation EMC 268648102
Exxon Mobil Corporation XOM 30231G102
Ford Motor Company F 345370860
Freeport-McMoRan Copper & Gold Inc. FCX 35671D857
General Electric Company GE 369604103
The Goldman Sachs Group, Inc. GS 38141G104
Google Inc. GOOG 38259P508
Hewlett-Packard Company HPQ 428236103
The Home Depot, Inc. HD 437076102
Intel Indonesia Corporation INTC 458140100
International Business Machines Corporation IBM 459200101
Johnson & Johnson JNJ 478160104
JPMorgan Chase & Co. JPM 46625H100
Kraft Foods Inc. KFT 50075N104
McDonald's Corporation MCD 580135101
Merck & Co., Inc. MRK 58933Y105
Microsoft Corporation MSFT 594918104
Occidental Petroleum Corporation OXY 674599105
Oracle Corporation ORCL 68389X105
PepsiCo, Inc. PEP 713448108
Pfizer Inc. PFE 717081103
Philip Morris International Inc. PM 718172109
The Procter & Gamble Company PG 742718109
QUALCOMM Incorporated QCOM 747525103
Schlumberger Limited SLB 806857108
United Parcel Service, Inc. UPS 911312106
United Technologies Corporation UTX 913017109
UnitedHealth Group Incorporated UNH 91324P102
Verizon Communications, Inc. VZ 92343V104
Wal-Mart Stores, Inc. WMT 931142103
The Walt Disney Company DIS 254687106
Wells Fargo & Company WFC 949746101
Exchange Traded Fund Symbol CUSIP No.
BMO U.S. Equity Index ETF     ZUE-T 05570J107
Claymore U.S. Fundamental Index ETF C$ Hedged         CLU - T 18387E120
Horizons S&P® 500 Index ETF HXS - T 44048X109
iShares S&P 500® Index Fund (CAD-Hedged) XSP - T 46428J105
SPDR® S&P® 500 ETF SPY - N 78462F103

The syndicate of agents for the offering is being led by CIBC and BMO Capital Markets, and includes National Bank Financial Inc., TD Securities Inc., GMP Securities L.P., HSBC Securities (Canada) Inc., Canaccord Genuity Corp., Desjardins Securities Inc., Macquarie Private Wealth Inc., Raymond James Ltd., Dundee Securities Ltd., Industrial Alliance Securities Inc., Mackie Research Capital Corporation, MGI Securities Inc., Rothenberg Capital Management Inc. and Wellington West Capital Markets Inc.

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") of approximately $600 million amongst 19 ETFs and funds. 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 currently manages approximately $2.4 billion in assets amongst 50 ETFs. Together under the Horizons ETFs brand, the two companies currently have 70 TSX listings and almost $3 billion of AUM. BetaPro is a subsidiary of Jovian Capital Corporation (JOV: TSX).

A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in all provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from your IIROC registered financial advisor. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued. 

SOURCE Horizons Enhanced U.S. Equity Income Fund

For further information:

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

Profil de l'entreprise

Horizons Enhanced U.S. Equity Income Fund

Renseignements sur cet organisme


Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .


Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.


Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.