TORONTO, Jan. 30, 2013 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate Horizons ETFs Management (Canada) Inc. (the "Manager") hereby announce that a special meeting (the "Meeting") of unitholders of the Horizons S&P 500® Index (C$ Hedged) ETF ("HXS") has been called to consider, and if advisable, pass a resolution to approve a change to the investment objective of HXS. The Special Meeting will be held in Toronto at 333 Bay Street, Suite 4600, Toronto, Ontario on February 28, 2013 at 11:30 a.m. Toronto time.
The Manager is seeking approval to change the investment objective of HXS so that it seeks to replicate, to the extent possible, the performance of the S&P 500® Index (Total Return), net of expenses. Currently, HXS seeks to replicate, to the extent possible, the performance of the S&P 500® Canadian Dollar Hedged Index (Total Return), net of expenses. The Manager believes that this change of investment objective will be in the best interest of Horizons HXS and its unitholders, as the S&P 500® Index is a more widely recognized and followed benchmark than the S&P 500® Canadian Dollar Hedged Index.
"With the Canadian and US dollars at or near parity, clients and potential investors have requested an unhedged HXS" said Howard Atkinson, CEO of Horizons ETFs. "We believe removing the currency hedge will increase the appeal of HXS in the marketplace.
If the proposed change to the investment objective is approved by unitholders of HXS, the Manager expects to change the name of HXS to "Horizons S&P 500® Index ETF" and also to offer units of HXS in US dollars.
Details of the proposed change will be outlined in a management information circular which will be delivered to unitholders of record of HXS as of January 18, 2013.
About Horizons Exchange Traded Funds Inc. (www.HorizonsETFs.com)
Horizons ETFs is an innovative financial services company offering the Horizons ETFs family of ETFs. 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 $3.6 billion in assets under management and 76 ETFs listed on the Toronto Stock Exchange, the Horizons ETFs family makes up one of the largest families of ETFs in Canada. Horizons ETFs is a subsidiary of Horizons ETFs Management (Canada) Inc. and a member of the Mirae Asset Financial Group.
SOURCE: Horizons Exchange Traded Funds Inc.
For further information:
Howard Atkinson, CEO, Horizons Exchange Traded Funds Inc., (416) 777-5167 email@example.com