TORONTO, Aug. 27, 2020 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs" or the "Manager") is pleased to announce that it
has completed proposed changes to the investment objectives 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").
At a special meeting of unitholders of HNU and HND (the
"Meeting") held on August 20,
2020, unitholders approved all matters related to proposed
changes to the investment objectives of the ETFs previously
announced 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 (+200% for HNU) and up
to two-times inverse (-200% for 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.
The changes to the investment objectives took effect at the
close of business on Thursday, August
27, 2020.
Additionally, Horizons ETFs is also changing the names of the
ETFs. The name of HNU will be changed to the "BetaPro Natural
Gas Leveraged Daily Bull ETF" and HND will be changed to the
"BetaPro Natural Gas Inverse Leveraged Daily Bear ETF". The
name changes will take place on or about Thursday, September 3, 2020, at close of
business. The ticker symbols of the ETFs remain the same.
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 http://www.HorizonsETFs.com and any
changes to the leverage ratio will be disclosed by way of public
announcement.
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 $14.6 billion of assets
under management and 93 ETFs listed on major Canadian stock
exchanges.
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.
The Horizons Exchange Traded Products include our BetaPro
products (the "BetaPro Products"). The BetaPro Products are
alternative mutual funds within the meaning of National Instrument
81-102 Investment Funds, and are permitted to use strategies
generally prohibited by conventional mutual funds: the ability to
invest more than 10% of their net asset value in securities of a
single issuer, to employ leverage, and engage in short selling to a
greater extent than is permitted in conventional mutual funds.
While these strategies will only be used in accordance with the
investment objectives and strategies of the BetaPro Products,
during certain market conditions they may accelerate the risk that
an investment in shares of a BetaPro Product decreases in value.
The BetaPro Products include our Daily Bull and Daily Bear ETFs
("Leveraged and Inverse Leveraged ETFs"). Each Leveraged and
Inverse Leveraged ETF seeks a return, before fees and expenses,
that is either up to, or equal to, either 200% or –200% of
the performance of a specified underlying index, commodity futures
index or benchmark (the "Target") for a single day. The Leveraged
and Inverse Leveraged ETFs use leveraged investment techniques that
can magnify gains and losses and may result in greater volatility
of returns. These BetaPro Products are subject to leverage risk and
may be subject to aggressive investment risk and price volatility
risk, among other risks, which are described in their respective
prospectuses. Due to the compounding of daily returns a Leveraged
and Inverse Leveraged ETF's returns over periods other than one day
will likely differ in amount and possibly direction, from the
performance of their respective Target(s) for the same period. The
negative effect of compounding is more pronounced when combined
with leverage and daily rebalancing in volatile markets. For
Leveraged and Inverse Leveraged ETFs that seek up to 200% or
up to or -200% leveraged exposure, the Manager anticipates,
under normal market conditions, managing the leverage ratio as
close to two times (200%) as practicable however, the Manager may,
at its sole discretion, change the leverage ratio based on its
assessment of the current market conditions and negotiations with
the respective ETF's counterparties at that time. Investors
should monitor their holdings in BetaPro Products and their
performance at least as frequently as daily to ensure such
investment(s) remain consistent with their investment
strategies.
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.
SOURCE Horizons ETFs Management (Canada) Inc.