TORONTO, Dec. 18, 2013 /CNW/ - Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. (collectively "Horizons ETFs") are pleased to announce the distribution amounts per unit (the "Distributions") for certain of the Horizons ETFs family of exchange traded funds (the "ETFs"), for the 2013 tax year end, as indicated in the table below.
Each of the ETFs is required to distribute any net income and capital gains that they have earned in the year. All of the Distributions indicated as "Cash Distribution per Unit" in the table (the "Cash Distributions") will be paid in cash unless the Unitholder has enrolled in the dividend reinvestment plan ("DRIP") of the respective ETF.
The annual capital gains Distributions, indicated as "Reinvested Annual Capital Gains (Est.)" in the table (the "Capital Gains Distributions"), will not be paid in cash but will be reinvested and reported as taxable Distributions and will be used to increase each Unitholder's adjusted cost base of their units of the respective ETF. The number of units held by the Unitholder will not change as a result of the Capital Gains Distributions. The annual Capital Gains Distribution rates in the table below are presented on an estimated basis. A press release confirming the final annual Capital Gains Distribution rates will be disseminated prior to the record date of the Distributions.
The ex-dividend date for both the Cash Distributions and Capital Gains Distributions is anticipated to be December 27, 2013, for all unitholders of record on December 31, 2013. The Cash Distributions will be paid in cash or, if the unitholder has enrolled in the respective ETF's dividend reinvestment plan (DRIP), reinvested in additional units of the applicable ETF, on or about January 13, 2014.
Horizons ETFs will make an additional announcement of the December distributions for its family of covered call exchange traded funds on or about December 19, 2013.
|ETF Name|| Ticker
|Horizons Active Diversified Income ETF||HAA||$0.06834||2.51%||Quarterly||$0.84024|
|Horizons Seasonal Rotation ETF||HAC||-||-||Annually||$0.78222|
|Horizons Universa Canadian Black Swan ETF||HUT||$0.07202||2.73%||Quarterly||$0.14363|
|Horizons Universa US Black Swan ETF(1)||HUS.U||$0.04876||1.62%||Quarterly||$1.47157|
|Horizons S&P/TSX 60 Equal Weight Index ETF||HEW||$0.06722||2.37%||Quarterly||-|
|Horizons Active Corporate Bond ETF||HAB||$0.03308||3.78%||Monthly||-|
|Horizons Active Cdn Bond ETF**||HAD||$0.03315||4.14%||Monthly||-|
|Horizons Active Yield Matched Duration ETF||HAF||$0.02760||4.02%||Monthly||-|
|Horizons Active Emerging Markets Dividend ETF**||HAJ||$0.08755||9.59%||Monthly||-|
|Horizons Active Cdn Dividend ETF||HAL||$0.03395||3.12%||Monthly||-|
|Horizons Active Global Dividend ETF||HAZ||$0.02632||2.26%||Monthly||-|
|Horizons Active Preferred Share ETF||HPR||$0.03595||4.41%||Monthly||-|
|Horizons Active Floating Rate Preferred Share ETF||HFP||$0.02571||3.10%||Monthly||-|
|Horizons Active Floating Rate Bond ETF||HFR||$0.02015||2.38%||Monthly||-|
|Horizons Active US Floating Rate Bond (USD) ETF (2)||HUF.U||$0.01700||2.02%||Monthly||-|
|Horizons Active High Yield Bond ETF**||HYI||$0.12050||13.43%||Monthly||-|
|Horizons Australian Dollar Currency ETF||ASD||$0.01509||1.92%||Monthly||-|
|* Based on the applicable December 17, 2013 net asset value per unit which is available at www.HorizonsETFs.com. The Annualized Yield is solely in respect of the cash distributions per unit and does not include the reinvested annual capital gains distributions.|
|(1)||Distributions for Horizons Universa US Black Swan ETF are declared and paid in U.S. dollars.|
|(2)||Distributions for Horizons Active US Floating Rate Bond (USD) ETF are declared and paid in U.S. dollars, including those listed under the Canadian dollar traded ticker HUF.|
The Distributions will vary from period to period.
** Reasons for the larger than expected cash distributions for:
HAD / HAD.A
The Horizons Active Cdn Bond ETF earned higher than anticipated income in the fourth quarter than was estimated when monthly distribution rates were set for the quarter. The adjustment to the monthly distribution for December 2013 only, when annualized, is not a true reflection of the ETF's portfolio yield. The current gross yield on the portfolio is approximately 3.15%.
HAJ / HAJ.A
The dividends paid by the emerging market securities held in the Horizons Active Emerging Markets Dividend ETF are subject to a number of characteristics not typically seen in more developed markets. Dividend rates are often estimated until a final rate is declared; the timing of the payment of the dividends is often irregular; and periodically, significant special dividends may be declared. While Horizons ETFs distributes the pro-rated portion of the ETF's estimated annual yield on a monthly basis, the variability in the estimated versus final dividend rates, timing of the payment of the dividends, as well as the number of special dividends that occurred in 2013 resulted in a wide variance between projected and actual income earned by the ETF.
HYI / HYI.A
This month's distribution for the Horizons Active High Yield Bond ETF includes a one-time gain from investment activity unrelated to the regular ongoing operating income of the ETF's portfolio.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. are innovative financial services companies 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 approximately $4.2 billion in assets under management and 73 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.
SOURCE: Horizons ETFs Management (Canada) Inc.
For further information:
Martin Fabregas, Investor Relations, (416) 601-2508 or 1-866-641-5739.