TORONTO, Feb. 3, 2022 /CNW/ - Horizons ETFs
Management (Canada) Inc.
("Horizons ETFs" or the "Manager") is announcing
the suspension of new subscriptions to the Horizons Cash Maximizer
ETF ("HSAV" or the "ETF"), effective at the close of
business today, February 3, 2022. The
suspension of new subscriptions follows HSAV reaching approximately
$2.0 billion in net asset value
("NAV"), as of February 3,
2022.
Launched on February 6, 2020, HSAV
seeks to generate modest capital growth by investing primarily in
high-interest deposit accounts with Canadian banks. While any
decision to pay dividends or other distributions is within the
discretion of the Manager, HSAV has not made any distributions
since its inception, nor is it currently expected to make any
regular cash distributions.
In January 2021, Horizons ETFs
announced that it would suspend subscriptions of HSAV once its NAV
exceeded $1.5 billion. It is the
Manager's view that this suspension will help manage potential tax
implications and ensure that HSAV can continue to reinvest its
distributions, consistent with HSAV's current investment
objectives.
"Less than one year after its launch in February 2020, HSAV reached a milestone of
$1 billion in assets – one of only
approximately 60 Canadian ETFs to do so within their first twelve
months of trading," said Steve
Hawkins, President and CEO of Horizons ETFs. "This
decision to suspend HSAV subscriptions will allow the ETF's current
investors to continue to potentially generate modest growth while
being invested solely in cash deposits."
As noted in HSAV's prospectus, if the ETF experiences a
significant increase in total NAV, the Manager may, in its sole
discretion and if determined to be in the best interests of
shareholders, decide to suspend subscriptions for new ETF shares if
considered necessary or desirable in order to manage potential tax
implications and/or to permit HSAV to achieve, or continue to
achieve, its investment objectives.
This suspension of subscriptions will not affect the ability of
existing shareholders of HSAV to sell their shares in the secondary
market at a price reflective of at least its NAV per share,
assuming normal course market conditions. However, investors and
potential investors should note that during a period of suspended
subscriptions, the Manager expects shares of HSAV to trade at a
premium to its NAV per share. Due to this expected premium,
Horizons ETFs is strongly discouraging purchases of shares of HSAV
during this suspension of subscriptions.
The Manager currently anticipates that if the NAV of HSAV were
to drop below $1.5 billion, the
Manager intends to resume subscriptions for shares of the
ETF. Any subsequent resumption of subscriptions for HSAV will
be announced by press release and posted on the Manager's
website.
In November 2021, Horizons ETFs
launched the Horizons High Interest Savings ETF ("CASH").
CASH seeks to maximize monthly income for unitholders while
preserving capital and liquidity by investing primarily in high
interest deposit accounts with Canadian banks. The investment
objective of CASH is similar to HSAV, except unlike HSAV, CASH
seeks to pay out regular monthly distributions of income.
"We launched CASH to provide investors with another
competitive ETF solution which currently has an industry high net
yield compared to the other Canadian high interest savings exchange
traded funds that make regular distributions," said Mr.
Hawkins. "CASH has many of the same characteristics as HSAV,
however CASH is a conventional money market exchange traded fund
that has been designed to pay out monthly distributions instead of
reinvesting them the way HSAV does."
As CASH is structured as a conventional money market exchange
traded fund that pays out regular cash distributions, the Manager
has no intention of suspending subscriptions for the units of
CASH.
For more information about HSAV, please visit:
www.HorizonsETFs.com/HSAV
For more information about CASH, please visit:
www.HorizonsETFs.com/CASH
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 $21 billion of
assets under management and 104 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.
Certain statements may constitute a forward-looking
statement, including those identified by the expression "expect,
"anticipate" 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.