TORONTO, April 4, 2013 /CNW/ - AlphaPro Management Inc. ("AlphaPro") an affiliate of Horizons ETFs Management (Canada) Inc. ("Horizons ETFs"), is currently reviewing the impact of proposed tax changes, announced by the Minister of Finance in the Federal Budget on March 21, 2013, on its family of exchange traded funds ("ETFs"). AlphaPro has determined that the Horizons Active Advantage Yield ETF ("HAF"), which uses a forward agreement, is expected to be affected.
HAF, which has an investment objective to provide its unitholders with: (i) a stable stream of tax-efficient monthly distributions; and (ii) the opportunity for capital appreciation through exposure to a tactical asset allocation strategy that focuses primarily on fixed income and fixed income-like securities, uses a forward agreement that expires on July 21, 2014. After the expiry of this forward agreement or upon the increase of its units outstanding, it is expected that HAF will no longer be able to deliver, in its entirety, tax-efficient distributions to unitholders.
Horizons ETFs and AlphaPro are working with its advisors and other industry participants to gain more clarity around the proposed tax changes and will announce any changes to the underlying structure of HAF once more guidance around the federal government's proposed tax changes has been received. Units of HAF continue to trade in the secondary market and HAF continues to accept subscriptions for new units. Any new unit subscriptions of HAF will not increase the size of its currently existing forward agreement.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. are innovative financial services company offering the Horizons ETFs family of exchange-traded funds. 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 currently more than $4.3 billion in assets under management and 74 ETFs listed on the Toronto Stock Exchange, the Horizons ETFs family makes up one of the largest families of ETFs in Canada. Horizons ETFs Management (Canada) Inc. and AlphaPro Management Inc. are members of the Mirae Asset Financial Group.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to the future outlook of the ETFs and anticipated distributions, events or results and may include statements regarding the future financial performance of the ETFs. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. AlphaPro undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.
SOURCE: AlphaPro Management Inc.
For further information:
Howard Atkinson, President, Horizons ETFs Management (Canada) Inc. (416) 777-5167, [email protected]