TORONTO, March 1 /CNW/ - Jovian Capital Corporation ("Jovian") (JOV:TSX) and its subsidiary BetaPro Management Inc. ("BetaPro"), the manager of the Horizons BetaPro exchange traded funds ("ETFs"), are pleased to announce that BetaPro has, through a subsidiary, completed an equity investment in BetaShares Holdings Pty Ltd. ("BetaShares Holdings"), a private Australian holding company. BetaShares Holdings is the parent company of BetaShares Capital Ltd., an Australian company that intends to offer ETFs on the Australian Securities Exchange.
The transaction involves the acquisition by BetaPro of up to a 40% equity stake in BetaShares Holdings for a total subscription price of up to $4.5 million (Australian dollars), if certain milestones are met. BetaPro has also been granted options to acquire additional equity in BetaShares Holdings over time, with exercise prices based on a multiple of revenues of BetaShares Holdings. BetaPro also has representation on the Board of Directors of BetaShares Holdings.
Philip Armstrong, C.E.O. of Jovian said, "We are delighted with the BetaPro investment in BetaShares. We feel that this could begin to transform Horizons BetaPro from being a leading provider of ETFs in North America into a substantial presence in the global ETFs business. The ETF industry in Australia is still young, and growing, and we feel that there is huge potential for BetaShares to become a significant provider of ETF products in that market." He added, "This investment strengthens Jovian's already powerful position in the ETF business."
"Establishing a presence in such an exciting new market as Australia is a great opportunity for us, and is part of our ongoing strategy to grow BetaPro" said Adam Felesky, C.E.O. of BetaPro. "We very much look forward to working with BetaShares," he added.
"We are thrilled to have a partner with the impressive track record of BetaPro Management," said Alex Vynokur and David Nathanson, Directors of BetaShares Holdings. "The expertise and experience of Adam Felesky, Howard Atkinson and their team will be a significant benefit to us," they added.
About BetaPro Management Inc.
BetaPro Management Inc. is 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. Horizons BetaPro ETFs offer three types of structures: Bull+/Bear+ leveraged ETFs, single ETFs, and single inverse ETFs. The HBP Bull+ ETFs and HBP Bear+ ETFs are designed to provide daily investment results, before fees and expenses, that correspond to double the daily performance, or double the inverse daily performance, respectively, of their specified underlying index or benchmark. The HBP Inverse ETFs are designed to provide daily investment results, before fees and expenses, that correspond to one times the inverse of their specified underlying index or benchmark. The HBP Single ETFs are designed to provide investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to the performance of their specified underlying index.
BetaPro is a subsidiary of Jovian Capital Corporation and manages, as of January 31, 2010, approximately $2.3 billion amongst 41 ETFs.
About Jovian Capital Corporation (www.joviancapital.com)
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 Exchange Traded Funds Inc., Horizons 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 $11.5 billion of client assets ($6.5 billion in assets under management and $5.0 billion in assets under administration). Additional information is available at www.sedar.com.
SOURCE Jovian Capital Corporation
For further information: For further information: Adam Felesky, Chief Executive Officer, BetaPro Management Inc., (416) 933-5739; or Don Sangster, Investor Relations, Jovian Capital Corporation, (416) 933-5744; or Philip Armstrong, Chief Executive Officer, Jovian Capital Corporation, (416) 933-5752