TORONTO – August, 21, 2020 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs” or the “Manager”) held special meetings of the shareholders of the BetaPro Natural Gas 2x Daily Bull ETF (“HNU”) and the BetaPro Natural Gas -2x Daily Bear ETF (“HND” and together with HNU, the “ETFs”), on August 20, 2020, during which shareholders of the ETFs approved all matters relating to the proposed changes to the investment objectives of the ETFs previously announced by the Manager on July 3, 2020, and further described in an information circular that was made available to shareholders.
The new investment objectives change the underlying index used by the ETFs and allow adjustment of the leverage ratio employed by the ETFs to provide up to two-times positive (HNU) and up to two-times inverse (HND), the daily performance of the exposure to the Horizons Natural Gas Rolling Futures Index (the “New Natural Gas Index”).
The New Natural Gas Index is a proprietary index owned and operated by Horizons ETFs, and calculated by an independent third party calculation agent, that will endeavour to provide exposure to as close to the front month natural gas futures contract as is deemed reasonable by the Manager, based on the current market conditions for natural gas futures contracts and subject to negotiations with the ETFs’ counterparties.
Additionally, Horizons ETFs will change the names of the ETFs. The name of HNU will be changed to the “BetaPro Natural Gas Leveraged Daily Bull ETF” and HND to the “BetaPro Natural Gas Inverse Leveraged Daily Bear ETF”. The ticker symbols of the ETFs will remain the same.
The Manager anticipates that the changes to the investment objectives will take effect at the close of business on or about Thursday, August 27, 2020, subject to the receipt of all necessary regulatory and third party approvals, with the name changes of the ETFs following on that date or as soon as practicable thereafter.
Leverage Ratio
Under the new investment objectives, the Manager anticipates, under normal market conditions, managing the leverage ratio to be as close to-two times (200%) as practicable for both HNU and HND. However, the Manager may, at its sole discretion, change the leverage ratio based on its assessment of the current market conditions for natural gas futures contracts and negotiations with the ETF’s counterparties at that time.
The leverage ratio employed by the ETFs will be posted on the Manager’s website at https://horizonsetfs.com and any changes to the leverage ratio will be disclosed by way of public announcement.
Currently, the ETFs are utilizing two-times positive (HNU) and two-times inverse (HND) the daily performance of their current underlying index, which will change to the New Natural Gas Index once the investment objective changes take effect.
With the implementation of the new investment objectives described above, the Manager has no expectation, at this time, of changing the leverage ratios that are currently being employed by the ETFs, nor does it anticipate any change to the natural gas front-month futures exposure or roll-methodology to which the ETFs are currently exposed.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has over $14.5 billion of assets under management and 93 ETFs listed on major Canadian stock exchanges.
For all inquiries:
Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
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Categories: Press Releases