TORONTO – April 28, 2017 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) has announced that it has completed the conversion of all advisor-class units of its Canadian-listed exchange trade funds (ETFs) to the corresponding common class units of the same ETF at the end of business today, April 28, 2017 (the “Conversion Date”).
Horizons ETFs, by way of a press release dated December 29, 2016, had previously announced plans to reduce the annual management fee on the advisor-class units by an amount equal to the applicable service fee payable by the Manager in respect of that class of units, and either concurrently or as soon as reasonably practicable thereafter, convert all advisor-class units into common class units of the same ETF.
The remaining unitholders of record of converting advisor-class units as of the Conversion Date will receive a number of whole converted common class units of the same ETF with an aggregate net asset value (“NAV”) equal to the aggregate NAV of the units converted, based on their respective NAVs as of the Conversion Date (the “Conversion Ratio”). The conversion of advisor-class units into whole common class units of the same ETF does not give rise to a disposition by unitholders of converting advisor-class units for tax purposes on any whole units converted. Any remaining fractional advisor-class units will be redeemed for cash and such redemption will be considered a disposition for tax purposes. The Conversion Ratio of advisor-class units to common class units for each ETF is detailed in the table below.
| Advisor- Class Ticker |
Class E (Common) Ticker |
Advisor- Class Management Fee |
Management Fee After Conversion Date |
Conversion Ratio |
| HAB.A | HAB | 1.00% | 0.50% | 1.001684 |
| HAC.A | HAC | 1.50% | 0.75% | 0.970588 |
| HAD.A | HAD | 0.92% | 0.42% | 1.000193 |
| HAF.A | HAF | 0.95% | 0.45% | 0.999724 |
| HAJ.A | HAJ | 1.55% | 0.80% | 1.000301 |
| HAL.A | HAL | 1.45% | 0.70% | 1.000747 |
| HAU.A | HAU | 1.45% | 0.70% | 1.000175 |
| HAZ.A | HAZ | 1.55% | 0.80% | 1.001104 |
| HEA.A | HEA | 1.40% | 0.65% | 1.000599 |
| HEA.V | HEA.U | 1.40% | 0.65% | 1.000599 |
| HEE.A | HEE | 1.40% | 0.65% | 1.006836 |
| HEF.A | HEF | 1.40% | 0.65% | 1.004611 |
| HEJ.A | HEJ | 1.40% | 0.65% | 1.000317 |
| HEP.A | HEP | 1.40% | 0.65% | 0.995883 |
| HEX.A | HEX | 1.40% | 0.65% | 1.004115 |
| HFP.A | HFP | 1.05% | 0.55% | 0.999888 |
| HFR.A | HFR | 0.90% | 0.40% | 1.000939 |
| HGM.A | HGM | 1.60% | 0.85% | 0.997091 |
| HGY.A | HGY | 1.35% | 0.60% | 1.000085 |
| HHF.A | HHF | 1.20% | 0.45% | 0.9581 |
| HMA.A | HMA | 1.60% | 0.85% | 0.988591 |
| HMF.A | HMF | 1.70% | 0.95% | 0.956829 |
| HMP.A | HMP | 0.79% | 0.29% | 1.000167 |
| HNY.A | HNY | 1.60% | 0.85% | 1.000682 |
| HPR.A | HPR | 1.05% | 0.55% | 1.001569 |
| HSL.A | HSL | 1.25% | 0.75% | 0.999463 |
| HUF.V | HUF.U | 0.90% | 0.40% | 1.000202 |
| HYI.A | HYI | 1.10% | 0.60% | 1.000217 |
By way of an example, a holder of 1,000 advisor-class units of the Horizons Active Corporate Bond ETF (HAB.A) will receive 1,001 common class units (HAB) of the same ETF based on its Conversion Ratio. Unitholders do not have to take any action to participate in the elimination of the service fee or the conversion described above.
About Horizons ETFs Management (Canada) Inc.
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. Horizons ETFs has more than $7.5 billion of assets under management. With 77 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 Global Investments Group.
For investor inquiries:
1-866-641-5739 (toll-free) or (416) 933-5745
[email protected]
For other inquiries:
Martin Fabregas, Investor Relations
Horizons ETFs Management (Canada) Inc.
(416) 601-2508 or 1-866-641-5739
Categories: Press Releases