TORONTO, Nov. 28, 2019 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs") announced today the non-cash distributions to
unitholders of the BetaPro Marijuana Companies Inverse ETF
("HMJI") and the BetaPro S&P/TSX 60™ 2x Daily Bull ETF
("HXU").
These non-cash distributions were made payable to all
unitholders of record on November 27,
2019. The nominal payment date applied to these non-cash
distributions will also be November 27,
2019, though in actuality there will be no physical payment
made as would be the case with cash distributions.
|
Ticker
Symbol
|
Non-Cash
Distribution
per Unit as of
November 27, 2019
|
Net Asset
Value
per Unit as of
November 27, 2019
|
Non-Cash
Distribution as a %
of NAV as of
November 27, 2019
|
|
HMJI
|
$8.21855
|
$36.8981
|
22.27%
|
|
HXU
|
$0.37446
|
$42.8175
|
0.87%
|
The distributions on HMJI and HXU were made in connection with
tax proposals that were made this year which would no longer allow
ETFs to allocate any income distributions to unitholders that
redeem ETFs directly with Horizons ETFs in the primary
market. As a result, HMJI and HXU each made a one-time
distribution to all existing unit holders as of the November 27, 2019 record date.
All of Horizons' BetaPro suite of ETFs have completed a
reorganization (the "Reorganization") into Horizons ETF
Corp., a single multi-class corporate fund structure managed by
Horizons ETFs, as approved by unitholders of the ETFs at special
meetings held earlier this month. The Reorganization was effective
as of the close-of-business on November 27,
2019, at which time Horizons ETFs issued a press release
noting this change. The press release can be found here:
https://www.horizonsetfs.com/news/Press-Release/Horizons-ETFs-Completes-Corporate-Class-Reorganiza
HMJI and HXU are the only two ETFs offered by Horizons ETFs that
were required to make a distribution as part of the Reorganization.
Horizons ETFs does not anticipate that HMJI and HXU will make any
regular dividends or returns of capital going forward.
The non-cash distributions will be each automatically reinvested
in additional units of HMJI and HXU respectively and immediately
consolidated so that the number of units held by the unitholder
(the outstanding units of the ETFs) and the net asset value of the
ETFs will not change as a result of the non-cash distribution.
These non-cash distributions will be reported to investors as
taxable distributions and will increase each unitholder's adjusted
cost bases for each of HMJI and HXU.
In early 2020, the tax characteristics of these distributions
for 2019 tax purposes will be reported to brokers via CDS Clearing
and Depository Services Inc. and will be posted on our website
shortly thereafter.
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 approximately $10
billion of assets under management and 91 ETFs listed on
major Canadian stock exchanges.
Certain statements may constitute
a forward looking statement,
including those identified by the
expressions "anticipate", "estimate" or "expect" and similar
expressions (including grammatical variations thereof) to the
extent they relate to the ETFs or Horizons ETFs. The
forward-looking statements are not historical facts but reflect the
ETFs, the ETF's managers or Horizons ETFs 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
the ETFs' forward looking statements. These forward-looking
statements are made as of the date hereof and the ETFs 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.
SOURCE Horizons ETFs Management (Canada) Inc.