TORONTO – December 6, 2018 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) announced today the estimated non-cash distributions (the “Non-Cash Distributions”) to unitholders of certain of the exchange traded funds (the “ETFs”) it manages for the 2018 tax year as indicated in the table below. Those ETFs managed by Horizons ETFs not listed in the table are not expected to have a non-cash distribution for the 2018 tax year.
With respect to Horizons ETFs’ BetaPro family of tactical ETFs – as well as its suite of innovative total return index (“TRI”) ETFs – this is expected to be the twelfth consecutive year with no distributions. This includes the Horizons S&P/TSX 60TM Index ETF (HXT/HXT.U) and the Horizons S&P 500® ETF (HXS/HXS.U), which have both completed eight full calendar years of operations since their inception without any distributions to unitholders.
Please note that these are estimated amounts only. Circumstances may arise which could cause these estimates to change before the ETFs’ applicable tax year ends on December 15, 2018, or December 31, 2018.
Each ETF is required to distribute any net income and capital gains it has earned during the year. The Non-Cash Distributions will be automatically reinvested in additional units of the respective ETFs 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 Distributions. The annual Non-Cash Distributions will be reported to investors as taxable distributions and will increase each unitholder’s adjusted cost base for the respective ETF. The Non-Cash Distributions may be income and/or capital gains in nature. These estimated amounts are for the Non-Cash distributions only and do not include any estimates of the regular monthly or quarterly cash distributions, as applicable, including income and capital gains amounts that may form a part of the monthly and/or quarterly distributions.
Horizons ETFs expects to announce the final year-end income and capital gains distribution amounts, as well as regular monthly, quarterly and semi-annual cash distribution amounts, on or about December 20, 2018. The ex-dividend date for all of these distributions (cash and non-cash) is anticipated to be December 28, 2018, for all unitholders of record on December 31, 2018. In early 2019, the tax characteristics of all distributions for 2018 for the ETFs will be reported to brokers via CDS Clearing and Depository Services Inc. (“CDS”) and will be posted on our website shortly thereafter.
| Ticker Symbol | Estimated Annual Non- Cash Distributions per Unit as of Dec. 5, 2018 |
Net Asset Value per Unit as of Dec. 5, 2018 |
Estimated Non-Cash Distributions as a % of NAV as of Dec. 5, 2018 |
| ETHI | $0.124 | $25.0901 | 0.49% |
| HAC | $1.151 | $20.2883 | 5.67% |
| HAJ | $0.334 | $12.6742 | 2.64% |
| HAZ | $0.086 | $20.8681 | 0.41% |
| HEA.U/HEA | $0.152 | $11.4003 | 1.33% |
| HUF.U/HUF | $0.267 | $9.9968 | 2.67% |
(1) Distributions for Horizons Active US Dividend ETF are declared and paid in Canadian dollars, including those listed under the U.S. dollar traded ticker HAU.U. For unitholders who hold the U.S. dollar traded HAU.U, distribution payments will typically be converted to U.S. dollars by the unitholder’s account holder.
(2) Distributions for the Horizons Enhanced Income US Equity (USD) ETF and the Horizons Active US Floating Rate Bond (USD) ETF are declared and paid in U.S. dollars, including those listed under the Canadian dollar-traded tickers HEA and HUF, respectively. For unitholders who hold the Canadian dollar-traded HEA and HUF, distribution payments will typically be converted to Canadian dollars by the unitholder’s account holder
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 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 $10.3 billion of assets under management and 85 ETFs listed on major Canadian stock exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.
For investor inquiries:
Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
info@horizonsetfs.com
For media inquiries:
Contact Jonathan McGuire, External Communications Manager
Horizons ETFs Management (Canada) Inc.
(416) 640-2956
jmcguire@horizonsetfs.com
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.