TORONTO – December 29, 2017 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) confirmed today the annual non-cash distributions (the “Non-Cash Distributions”) to unitholders of certain of the exchange traded funds that Horizons ETFs manages (the “ETFs”) for the 2017 tax year as indicated in the table below. Please note that this is a further update to the estimated annual Non-Cash Distributions previously announced on December 1, 2017, and updated on December 20, 2017.
Each of the ETFs is required to distribute any net income and capital gains that they have earned in the year. The annual Non-Cash 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 for the respective ETF. The nature of the Non-Cash Distributions for the respective ETFs as either income or capital gains is disclosed in the footnotes to the table below. The Non-Cash Distributions will be reinvested automatically in additional units of the respective ETFs and immediately consolidated so that the number of units held by the unitholder, the units outstanding of the ETFs, and the net asset value of the ETFs, will not change as a result of the Non-Cash Distributions. These amounts do not include the regular monthly or quarterly cash distributions, as applicable, announced on December 20, 2017.
The ex-dividend date for these distributions was December 28, 2017, for all unitholders of record on December 29, 2017. In early 2018, the tax characteristics of all distributions for 2017 for the ETFs will be reported to brokers via the CDS Clearing and Depository Services Inc. (“CDS”) and will be posted on our website shortly thereafter.
| Ticker Symbol | Final Confirmed Annual Non- Cash Distribution per Unit |
Final Non-Cash Distribution As a % of Dec. 28, 2017 NAV |
Estimated Annual Non- Cash Distribution per Unit announced on Dec. 20, 2017 |
| CAN | $0.21 | 2.06% | – |
| HAC | $0.13 | 0.67% | $0.13 |
| HARC | $0.96 | 4.58% | $0.96 |
| HCN | $0.35 | 1.41% | $0.35 |
| HGC | $0.42 | 4.04% | $0.42 |
| HHF | $0.33 | 2.25% | $0.33 |
| HII | $0.67 | 5.25% | $0.67 |
| HMMJ | $0.22 | 1.18% | $0.23 |
| HMMJ.U | $0.22 | 1.18% | $0.23 |
| HRA | $0.09 | 0.85% | $0.09 |
| HYI | $0.10 | 1.02% | $0.10 |
| MIND | $0.13 | 0.53% | $0.13 |
As disclosed above, the final determination of the nature of these Non-Cash Distributions will be reported to brokers via CDS in early 2018. The expected nature of the Non-Cash Distributions for each of the ETFs in the table above is as follows:
(1) Horizons Canadian Dollar Currency ETF (CAN) – 100% income. The Canadian dollar appreciated approximately 2% versus the U.S. dollar in the last two weeks of December 2017. This resulted in a Non-Cash Distribution for CAN that was not anticipated when the previous estimates were announced.
(2) Horizons Seasonal Rotation ETF (HAC) – 100% capital gains.
(3) Horizons Absolute Return Global Currency ETF (HARC) – 100% income.
(4) Horizons China High Dividend Yield Index ETF (HCN) – 100% income.
(5) Horizons Global Currency Opportunities ETF (HGC) – 100% income.
(6) Horizons Morningstar Hedge Fund Index ETF (HHF) – 100% income.
(7) Horizons Cdn Insider Index ETF (HII) – 100% capital gains.
(8) Horizons Marijuana Life Sciences Index ETF (HMMJ, HMMJ.U) – 100% capital gains. Please note that distributions for Horizons Marijuana Life Sciences Index ETF are declared and paid in Canadian dollars, including those listed under the U.S. dollar traded ticker HMMJ.U. The approximate U.S. dollar equivalent distribution rate for HMMJ.U is $0.17356 per unit. For unitholders who hold the U.S. dollar traded HMMJ.U, distribution payments will typically be converted to U.S. dollars by the unitholder’s account holder.
(9) Horizons Global Risk Parity ETF (HRA) – approximately 73% income and 27% capital gains.
(10) Horizons Active High Yield Bond ETF (HYI) – 100% capital gains.
(11) Horizons Active A.I. Global Equity ETF (MIND) – approximately 79% income and 21% capital gains.
About Horizons ETFs Management (Canada) Inc.
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 suite 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 currently has more than $9.4 billion of assets under management and 81 ETFs listed on the Toronto Stock Exchange. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.
For further information:
Martin Fabregas, Investor Relations, (416) 601-2508 or 1-866-641-5739.
Categories: Press Releases