The record date for Non-Cash Distributions is December 31, 2021. The nominal payment date applied to the Non-Cash distributions will be January 13, 2022, though in actuality there will be no physical payment made as would be the case with cash distributions. In early 2022, the tax characteristics of all distributions for 2021 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. 30, 2021 NAV |
Estimated Annual Non-Cash Distribution per Unit announced on Dec. 22, 2021 |
| FOUR(1) | $4.44899 | 7.88% | $4.44903 |
| BBIG(2) | $2.78331 | 10.17% | $2.78331 |
| BBIG.U(2) | $2.78331 | 10.17% | $2.78331 |
| HAL(3) | $0.24837 | 1.25% | $0.25052 |
| HOG(4) | $0.21698 | 2.49% | $0.21697 |
| INOC(5) | $0.28596 | 2.21% | $0.28595 |
| HBGD(6) | $8.94486 | 32.47% | $8.94486 |
| HBGD.U(6) | $8.94486 | 32.47% | $8.94486 |
As disclosed above, the final determination of the nature of these Non-Cash Distributions will be reported to brokers via CDS in early 2022. The expected nature of the Non-Cash Distributions for each of the ETFs in the table above is as follows:
(1) Horizons Industry 4.0 Index ETF (FOUR) – 100% capital gains.
(2) Horizons Global BBIG Technology ETF (BBIG/BBIG.U) – 88% capital gains, 12% income. Please note that distributions for BBIG are declared and paid in Canadian dollars, including those listed under the U.S. dollar traded ticker BBIG.U. The approximate U.S. dollar equivalent distribution rate for BBIG.U is $2.18359 per unit. For unitholders who hold the U.S. dollar traded BBIG.U, distribution payments will typically be converted to U.S. dollars by the unitholder’s account holder.
(3) Horizons Active Cdn Dividend ETF (HAL) – 100% capital gains.
(4) Horizons Pipelines & Energy Services Index ETF (HOG) – 100% capital gains.
(5) Horizons Inovestor Canadian Equity Index ETF (INOC) – 100% capital gains
(6) Horizons Big Data & Hardware Index ETF (HBGD/HBGD.U) – 97% capital gains, 3% income. Please note that distributions for Horizons Big Data & Hardware Index ETF are declared and paid in Canadian dollars, including those listed under the U.S. dollar traded ticker HBGD.U. The approximate U.S. dollar equivalent distribution rate for HBGD.U is $7.01750 per unit. For unitholders who hold the U.S. dollar traded HBGD.U, distribution payments will typically be converted to U.S. dollars by the unitholder’s account holder.
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. The above amounts do not include the cash distributions announced on December 22, 2021.
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 more than $20 billion of assets under management and 104 ETFs listed on major Canadian stock exchanges.
For further information:
Martin Fabregas, Investor Relations, (416) 601-2508 or 1-866-641-5739.
Commissions, management fees and expenses all may be associated with an investment in exchange traded products (the “Horizons Exchange Traded Products”) managed by Horizons ETFs Management (Canada) Inc. The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the relevant prospectus before investing.
Certain statements may constitute a forward-looking statement, including those identified by the expression “expect” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.
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